Document:

EX-10.17

Exhibit 10.17

TECHTEAM GLOBAL, INC. EXECUTIVE LONG TERM INCENTIVE PROGRAM

ARTICLE I. PURPOSE AND EFFECTIVE DATE

          The purpose of the Long Term Incentive Program (LTIP) is to (1) align the interests of
management with the Company’s Shareholders and (2) attract and retain key executives who strive for
excellence, by providing equity-based incentives to such key executives. The LTIP encourages key
executives to choose strategies and investments that maximize shareholder value. The LTIP provides
incentive for individuals to perform beyond standard expectations and provides competitive
compensation for those who contribute most to the success of the Company.

          The LTIP will consist of the following types of stock incentive programs, and administered in
conjunction with the Company’s Incentive Stock Plan:

	 	1.	 	A restricted stock program that focuses on retaining high
performing executives over a longer period of time. This stock is issued upon
achievement of specified performance goals, but the stock is subject to a risk
of forfeiture and cannot be transferred by the Participant unless the
Participant satisfies the vesting requirements.
	 
	 	2.	 	A performance stock program that focuses on rewarding
extraordinary performing executives. This stock is issued upon the
determination by the Compensation Committee that the executive has shown
extraordinary performance, but the stock is subject to a risk of forfeiture and
cannot be transferred by the Participant unless the Participant continues in
employment with the Company for one year after the performance stock is issued.

          The amendment of the Plan is effective for the 2008 Program Year and thereafter.

ARTICLE II. PARTICIPATION

          Section 2.01 Eligible Employees. Eligible employees are those who are designated as eligible by the Chief Executive Officer and
approved by the Compensation Committee. An individual who becomes a Participant after the first day
of a Program Year may become a Participant under the Program. For the purposes of an award under
Article III, Long-Term Incentive — Restricted Stock Participants, any award will be made pro rata,
based upon the length of the individual’s eligibility during the Program Year.

          Section 2.02 Cessation of Participation. Notwithstanding anything herein to the contrary, an individual will cease to be considered a
Participant for purposes of this Program on the date that he ceases to be employed in an eligible
position, regardless of whether he is still employed by the Company. No awards will be issued to
any employee who is not actively employed by the Company on the date of issuance. In
addition, Participants must be actively employed by the Company at the time a stock award vests in
order to receive the benefit of the award. For purposes hereof, “actively employed” means
actively-at-work on the date in question

 

 

(or if the date in question falls on a weekend,
actively-at-work on the immediately preceding business day), on a Company-approved leave of
absence, such as vacation, paid holiday, short-term disability leave, military leave, or FMLA
leave, or retired from employment with the Company after the age of sixty-five (65) years.

ARTICLE III. LONG-TERM INCENTIVE — RESTRICTED STOCK

          Section 3.01 Establishment of Annual Performance Goal. No later than thirty (30) days after the beginning of each Program Year, the Board shall establish
the Annual Performance Goal for such Program Year. The Annual Performance Goal will be based on the
Company’s target Operating Income for the Program Year.

          Section 3.02 Award of Restricted Stock.

     (a) The number of shares of Restricted Stock that may be issued to a Participant is based upon
the Company’s attainment of the Aggregate Performance Goal for the Program Year. The Aggregate
Performance Goal will change on a rolling three-year basis based on the Annual Performance Goals
for the Program Year and the two preceding years. In other words, the LTIP will begin in the first
year of inception and an award of Restricted Stock will be made based on the Annual Performance
Goal for the first year; the award of Restricted Stock in Program Year two will be based on Annual
Performance Goals for years one and two; the award of Restricted Stock in Program Year three will
be based on Annual Performance Goals for years one, two and three; the award of Restricted Stock in
Program Year four will be based on Annual Performance Goals for years two, three and four; and so
on. See Table A below which provides an example for illustration purposes only:

Table A

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Annual	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Performance	 	Aggregate	 	 	 	 	 	 
	 	 	 	 	 	 	Goal	 	Performance	 	Actual	 	Cumulative	 	 
	Program	 	Measurement	 	(Operating	 	Goal	 	Achievement	 	Achievement	 	%
	Year	 	Period	 	Income, $M)	 	($M)	 	($M)	 	($M)	 	Achievement
	1
	 	 	1	 	 	 	4.9	 	 	 	4.9	 	 	 	5.2	 	 	 	5.2	 	 	 	106	%
	2
	 	 	1 + 2	 	 	 	4.9 + 10.6	 	 	 	15.5	 	 	 	5.2 + 11.0	 	 	 	16.2	 	 	 	104	%
	3
	 	 	1 + 2 + 3	 	 	 	4.9 + 10.6 +16.3	 	 	 	31.8	 	 	 	5.2 + 11.0 + 23.6	 	 	 	39.8	 	 	 	125	%
	4
	 	 	2 + 3 + 4	 	 	 	10.6 + 16.3 + 18.9	 	 	 	45.8	 	 	 	11.0 + 23.6 + 18.1	 	 	 	52.7	 	 	 	115	%
	5
	 	 	3 + 4 + 5	 	 	 	16.3 + 18.9 + 22.3	 	 	 	57.5	 	 	 	23.6 + 18.1 + 19.3	 	 	 	61.0	 	 	 	106	%
	6
	 	 	4 + 5 + 6	 	 	 	18.9 + 22.3 + 24.0	 	 	 	65.2	 	 	 	18.1 + 19.3 + 20.8	 	 	 	58.2	 	 	 	89	%

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          Section 3.02 Award of Restricted Stock, cont.

     (b) Each eligible Participant on the Valuation Date for a given Performance Period shall be
awarded an incentive equal to the Percentage of Base Salary (“Stock Target Amount”) specified in
Table B for the Participant’s position multiplied by the Calculation Factor specified in Table C.
The Calculation Factor shall be determined by the extent to which the Aggregate Performance Goal
has been achieved for such Performance Period. If a Participant changes positions within a Program
Year, the Participant’s Stock Target Amount for such Program Year will be based the greater of the
applicable percentages specified in Table B that apply to such Participant during such Program
Year.

TABLE B

Stock Target Amount as a Percentage of Base Salary

	 	 	 	 	 
	 	 	Stock Target
	Title	 	Amount
	Level 1
	 	 	30	%
	Level 2
	 	 	25	%
	Level 3
	 	 	20	%
	Level 4
	 	 	15	%
	 
	 	* as a percentage of Base Salary

TABLE C

Factor Based on Achievement of the Aggregate Performance Goal

	 	 	 	 	 
	 	 	Calculation Factor
	Corporate Measurement	 	for Target
	100% or more of target achieved

	 	The factor is the actual percentage of the
target achieved

	90-99% of target achieved

	 	 	75	%
	80-89% of target achieved

	 	 	50	%

All percentages will be calculated to two decimal places and then rounded to the nearest whole
percentage, e.g. a percentage of 89.50% will be rounded up to 90%, while a percentage of 89.49%
will be rounded down to 89%.

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Example 1

Example for Level 3 (Base Salary $150,000), Year Three

Company Aggregate Performance Goal for Year Three: $31.8 M

Company Achieves: $39.8M

Percentage of achievement versus goal: 125%

Vice President Stock Target: 20% of $150,000 (base salary) = $30,000

Calculation Factor for Achieving 125% of Target Goal: 125%

Restricted Stock Award: 125% * $30,000 = $37,500

Example 2

Example for Level 3 (Base Salary $150,000), Year Six

Company Aggregate Performance Goal for Year Six: $65.2M

Company Achieves: $58.2M

Percentage of achievement versus goal: 89%

Vice President Stock Target: 20% of $150,000 (base salary) = $30,000

Calculation Factor for Achieving 89% of Target Goal: 50%

Restricted Stock Award: 50% * $30,000 = $15,000

               (c) The Chief Financial Officer shall be responsible for reporting to the Compensation
Committee the Operating Income amounts for each Program Year in the Performance Period and each
eligible Participant’s Base Salary for such Program Year. The Compensation Committee will review
the report of the Chief Financial Officer and determine the incentive amount for each Participant
as specified in Section 8.01.

          Section 3.03 Payment of Awards.

               (a) The amount determined under Section 3.02(c) shall be paid to the Participant in Shares of
Restricted Stock. The number of Shares to be issued to a Participant shall be determined by
dividing the incentive amount awarded to such Participant by the Fair Market Value of a Share
determined on the date immediately preceding the payment date (as described in subsection (b)).

               (b) Shares of Restricted Stock shall be issued to Participants on March 15 following the
Program Year for which an incentive amount was determined.

               (c) Shares of Restricted Stock shall not be transferable and shall vest ratably over four (4)
years; provided that if the Participant terminates employment from the Company as a result of
death or disability prior to the vesting date, the Shares of Restricted Stock will become
immediately and fully vested on the date of such termination.

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ARTICLE IV. PERFORMANCE STOCK 

          Section 4.01 Issuance of Performance Stock for Individual Achievement The Company
may issue Shares of Performance Stock to a Participant based on a Participant’s individual
extraordinary achievement above standard objectives for the year, regardless of the Company’s
Annual Performance Goals. 

          Section 4.02 Determination of Performance Stock Awards The Chief Executive Officer
shall make a recommendation to the Compensation Committee of the number of Shares of Performance
Stock the Participant should receive and detailing the extraordinary achievements of any
Participant. The Compensation Committee shall review the recommendation and approve, reject or
modify the recommendation of the Chief Executive Officer in its sole discretion. No communication
should occur with Participants prior to the written certification of the Compensation Committee as
set forth in Section 8.01.

          Section 4.03 Payment of Performance Stock Awards

               (a) Shares of Performance Stock shall be issued to Participants on March 15 following the
calendar year for which such award is made.

               (b) Shares of Performance Stock shall not be transferable and shall be subject to forfeiture
unless the Participant remains employed with the Company for one (1) year after the date of
issuance; provided that if the Participant terminates employment from the Company as a result of
death, disability or retirement prior to the vesting date, the Shares of Performance Stock will
become immediately and fully vested on the date of such termination.

ARTICLE V. RIGHTS OF THE COMPENSATION COMMITTEE

          Section 5.01 Rights of the Compensation Committee. The Compensation Committee
reserves the right to distribute Restricted Stock, Performance Stock or nonqualified stock options
as it deems appropriate in extraordinary circumstances. In addition, the Compensation Committee
reserves the right to approve, modify or reject any stock awards in the event that extraordinary
circumstances warrant such action.

ARTICLE VI. AMENDMENT AND TERMINATION

          Section 6.01 Amendment and Termination. The Company shall have the right by action of the Board to amend or terminate (in whole or in part)
this Program at any time and in any manner; provided, however, that no amendment or termination may
affect the amount of incentives accrued prior to the date of such Board action or the effective
date thereof, whichever is later, nor may any amendment or termination affect the rights and
responsibilities of any Participant or of the Company with respect to Stock issued to Participants
prior to such operative date. For purposes of this Section 7.01, an incentive will be deemed to be
“accrued” on the Valuation Date of the Program Year or Performance Period with respect to which it
is payable under the Program.

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ARTICLE VII. GENERAL PROVISIONS

          Section 7.01 Preparation of Reports for Compensation Committee The Chief Executive
Officer and Chief Financial Officer shall prepare a report for the Compensation Committee
detailing the Operating Income of the Company for the Performance Period and each Participant’s
Base Salary, Restricted Stock earned by each Participant, and a recommendation for the award of any
Performance Stock for any Participant. As soon as practicable after the close of the Performance
Period, the Compensation Committee shall meet to review and certify in writing, whether, and to
what extent, the objectives for the Performance Period have been achieved, and determine whether to
award any Performance Stock to any Participants. The Compensation Committee shall certify in
writing the awards to each Participant. No communication should occur with Participants prior to
this written certification.

          Section 7.02 Limitation of Rights Against the Company. Neither participation in this Program, as in effect at any time, nor the incentive and entitlements
accorded hereunder, shall be construed as giving to any Participant any right to be employed by the
Company, limiting in any way the right of the Company to terminate such Participant’s employment at
any time, evidencing any agreement or understanding, expressed or implied, that the Company will
employ such Participant in any particular position or at any particular rate of compensation and/or
guaranteeing such Participant any right to receive any other form or amount of remuneration from
the Company.

          Section 7.03 Spendthrift Clause. No Participant shall have the right to transfer, assign, alienate, anticipate, pledge or encumber
any incentive hereunder, whether currently or thereafter payable, nor shall such payments, or any
part of the Company assets from which such benefits may be paid, be subject to seizure by legal
process by any creditor of such Participant or Beneficiary. Any attempt to effect such a diversion
or seizure as aforedescribed shall be deemed null and void for all purposes hereunder.

          Section 7.04 Withholding. The Company shall be entitled to withhold any Shares issued hereunder (or require the Participant
to deliver to the Company such number of Shares that would otherwise vest) having a Fair Market
Value on the date the Shares are withheld (or delivered) equal to the amount necessary to satisfy
the Company’s minimum federal, state, or local tax withholding obligations with respect to such
issuance of Shares or the vesting thereof. The Company shall be entitled to withhold from any
other amount payable to a Participant the amount necessary to satisfy the Company’s federal, state,
or local tax withholding obligations with respect to the issuance of Shares hereunder or the
vesting of such Shares.

          Section 7.05 Liability. Neither the Company nor any shareholder, director, officer or other employee of the Company, nor
the Compensation Committee or any person serving as a delegate of the Compensation Committee, or
any other person shall be jointly or severally liable for any act or failure to act hereunder,
except for gross negligence or fraud.

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          Section 7.06 Successors and Assigns. The terms and conditions of the Program, as amended and in effect from time to time, shall be
binding upon the successors and assigns of the Company, including without limitation any entity
into which the Company may be merged or with which the Company may be consolidated or to which
substantially all of the assets of the Company are sold or transferred.

ARTICLE VIII. DEFINITIONS

          Section 8.01 Definitions. Whenever used herein, the following words and phrases shall have the meaning indicated below,
unless the context clearly indicates otherwise:

               (a) “Aggregate Performance Goal” means up to three consecutive years of Annual Performance
Goals (i.e., the current year’s Annual Performance Goal and the past two years’ Annual Performance
Goals) or for as long as the Program has been in place, whichever is shorter.

               (b) “Annual Performance Goal” means the Operating Income for a Program Year.

               (c) “Base Salary” for a given Program Year means the Participant’s rate of annual base salary
as of the last day of such Program Year.

               (d) “Board” means the Board of Directors of TechTeam Global, Inc.

               (e) “Company” means TechTeam Global, Inc. and its subsidiaries.

               (f) “Fair Market Value” of a Share means, for purposes of Section 3.03, the closing price of
a Share as quoted on The National Association of Securities Dealers’ Automated Quotation System
(including The Nasdaq Stock Market’s National Market) on the date of the award or, if the market
is closed on the date of award, the closing price of a Share on the last trading day prior to the
date of the award. If the Shares are not traded on a registered securities exchange or quoted in
such a quotation system, the Committee shall determine the Fair Market Value of a Share. In any
other context, “Fair Market Value” has the meaning ascribed to such term in the Company’s
Incentive Stock Plan.

               (g) “Operating Income” means the Company’s income before taxes, foreign currency conversion
and interest income, determined in a consolidated basis.

               (h) “Participant” means any Company employee who satisfies the provisions of Section 2.01
hereof.

               (i) “Performance Period” means the period for which the performance goals are measured.

               (j) “Performance Stock” means a grant of Stock that vests one year after the date of grant.

               (k) “Program Year” means the twelve (12) month period commencing on January 1 of each
calendar year.

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               (l) “Restricted Stock” means a grant of Stock that vests ratably over four (4) years.

               (m) “Stock” or “Share” means a share of the Company’s Common Stock.

               (n) “Valuation Date” means the last day of a Program Year or the last day of a Performance
Period, as applicable.

          Section 8.02 Construction. Whenever any words are used herein in the masculine, they shall be construed as though they
were used in the feminine in all cases where they would so apply; and whenever any words are used
in the singular or the plural, they shall be construed as though they were used in the plural or
the singular, as the case may be, in all cases where they would so apply. The words “hereof”,
“herein”, “hereunder” and other similar compounds of the word “here” shall mean and refer to this
entire Program and not to any particular article or section. Titles of articles and sections
hereof are for general information only, and the Program is not to be construed by reference
thereto. The Program shall be construed and its validity determined according to the laws of the
State of Delaware to the extent such laws are not preempted by federal law. In case any provision
of this Program shall be held illegal or invalid for any reason, said illegality or invalidity
shall not affect the remaining parts of this Program; but rather this Program shall be construed
and enforced as if said illegal and invalid provisions had never been inserted therein.

8EX-10.19

Exhibit 10.19

EMPLOYMENT AGREEMENT

RELATING TO CHANGE OF CONTROL

     EMPLOYMENT AGREEMENT RELATING TO CHANGE OF CONTROL (the “Agreement”) by and between TechTeam
Global, Inc., a Delaware corporation (the “Company”) and                                          (the “Executive”)
dated as of the                      day of                     .

     The Board of Directors of the Company (the “Board”) has determined that it is in the best
interests of the Company and its shareholders to diminish the inevitable distraction to the
Executive from the personal uncertainties and risks created by a pending or potential Change of
Control, and to encourage the Executive’s full attention and dedication to the Company currently
and in the event of any pending or potential Change of Control, and to provide the Executive with a
severance package if the Executive is terminated after a Change of Control. Therefore, in order to
accomplish these objectives, the Board has caused the Company to enter into this Agreement.

     NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     1. Certain Definitions.

          (a) The “Effective Date” shall mean the date on which a Change of Control occurs.
Anything in this Agreement to the contrary notwithstanding, if a Change of Control occurs and if
the Executive’s employment with the Company is terminated prior to the date on which the Change of
Control occurs, and if it is reasonably demonstrated by the Executive that such termination of
employment (i) was at the request of a third party who has taken steps reasonably calculated to
effect the Change of Control or (ii) otherwise arose in connection with or in anticipation of the
Change of Control, then for all purposes of this Agreement, the “Effective Date” shall mean the
date immediately prior to the date of such termination of employment.

          (b) “Change of Control” of the Company shall mean:

          (i) The sale of all then outstanding shares of common stock of the Company or 51% of the then
outstanding voting securities of the Company entitled to vote generally in the election of the
directors (the Outstanding Company Voting Securities”); or

          (ii) The consummation of the sale or other disposition of all or substantially all of the
assets or operations of the Company.

     2. Change Period. The “Change Period” shall be the period commencing on the Effective
Date and ending on the first anniversary of such date.

     3. Terms of Employment.

          (a) Position and Duties. During the Change Period, Executive agrees to devote
reasonable attention and time during normal business hours to the business and affairs of the
Company and, to the extent necessary to discharge the responsibilities assigned to the Executive
hereunder, to use the Executive’s reasonable best efforts to perform faithfully and

 

 

efficiently such responsibilities.

          (b) Compensation. During the Change Period, the Executive shall receive an annual
base salary (“Annual Base Salary”) at least equal to twelve times the highest monthly base salary
paid or payable to the Executive by the Company in the twelve-month period immediately preceding
the month in which the Effective Date occurs. During the Change Period, Executive shall be
eligible to participate in any bonus program in force on the Effective Date, or otherwise adopted
by the Company, and shall be entitled to participate in all savings and retirement plans,
practices, policies and programs applicable generally to other peer executives of the Company.
Executive and/or the Executive’s family, as the case may be, shall be eligible for participation in
and shall receive all benefits under welfare benefit plans, practices, policies and programs
provided by the Company (including, without limitation, medical, prescription, dental, disability,
salary continuance, employee life, group life, accidental death and travel accident insurance plans
and programs).

     4. Termination of Employment.

          (a) Death or Disability. The Executive’s employment shall terminate automatically
upon the Executive’s death or Disability that continues for 30 days after the Company provides
Executive of notice of its determination of Disability. For purposes of this Agreement,
“Disability” shall mean the absence of the Executive from the Executive’s duties with the Company
on a full-time basis for 180 consecutive business days as a result of incapacity due to mental or
physical illness, which is determined to be total and/or permanent by a physician selected by the
Company or its insurers and acceptable to the Executive or the Executive’s legal representative
(such agreement as to acceptability not to be withheld unreasonably).

          (b) Cause. The Company may terminate the Executive’s employment during the Change
Period for Cause. For purposes of this Agreement, “Cause” means any of the following: (i)
Eligible Employee’s conviction of or a plea of no contest to a felony, fraud or a crime involving
moral turpitude under any state or federal statute; (ii) Eligible Employee’s continued failure to
substantially perform the Eligible Employee’s duties, or any other intentional action or omission
by Eligible Employee that is injurious to the Company; or (iii) any material breach of any employee
handbook of the Company by the Eligible Employee, which breach is not remedied within fourteen (14)
days after written notice thereof.

          (c) The Executive’s employment may be terminated during the Change Period by the Executive for
Good Reason. For purposes of this Agreement, “Good Reason” shall mean:

               (i) the assignment to the Executive of any duties inconsistent in any respect with the
Executive’s position, authority, duties or responsibilites prior to the Change of Control, or any
other action by the Company (or its successor) which results in a diminution in such position,
authority, duties or responsibilities, and the continuance of such assignment of duties or other
such action for a period of sixty (60) days;

               (ii) the Company’s requiring the Executive to be based at any office or location other than in
[Executive’s Home Location], except for any short-term assignment (under three (3) months) where
the Company pays all travel or temporary relocation costs incurred by the Executive;

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               (iii) any failure by the Company to comply with and satisfy Section 9(c), or any failure by
any successor to assume and offer to perform this Agreement in accordance with Section 9(c)
provided that such successor has received at least ten days prior written notice from the company
or the Executive of the requirements of Section 10(c).

          (d) Notice of Termination. Any termination by the Company for Cause, or by the
Executive for Good Reason, shall be communicated by Notice of Termination to the other party hereto
given in accordance with Section 10(b). For purposes of this Agreement, a “Notice of Termination”
means a written notice which (i) indicates the specific termination provision in this Agreement
relied upon, and (ii) to the extent practicable, sets forth in reasonable detail the facts and
circumstances relied upon to form Executive’s basis for termination of employment under the
operative provisions. The Company and the Executive are not precluded from asserting any other
fact or circumstance in enforcing the Executive’s or the Company’s rights under this Agreement.

          (e) Termination Date. “Termination Date” means (i) if the Executive’s employment is
terminated by the Company for Cause, or by the Executive for Good Reason, the date of receipt of
the Notice of Termination or any later date specified therein, as the case may be; (ii) if the
Executive’s employment is terminated by the Company other than for Cause or Disability, the
Termination Date shall be the date on which the Company notifies the Executive of such termination;
and (iii) if the Executive’s employment is terminated by reason of death or Disability, the
Termination Date shall be the date of death of the Executive or the date of Disability, as the case
may be.

     5. Obligations of the Company upon Termination.

          (a) Good Reason: Other than for Cause, Death or Disability. If, during the Change
Period, the Company shall terminate the Executive’s employment other than for Cause, Death or
Disability, or the Executive shall terminate employment for Good Reason, the Company shall:

               (i) pay to the Executive in a lump sum in cash within thirty (30) days after the Termination
Date the aggregate of the following amounts:

                    A. the sum of: (1) the Executive’s Annual Base Salary through the Termination Date to the
extent not theretofore paid; plus (2) the product of (x) the Annual Bonus as if earned at the
target level and (y) a fraction, the numerator of which is the number of days from beginning of the
calendar year in which the Termination Date occurs through the Termination Date, and the
denominator of which is 365; plus (3) any accrued vacation pay, in which case to the extent not
theretofore paid (the sum of the amounts described in clauses (1), (2) and (3) shall be hereinafter
referred to as the “Accrued Obligations”); and

                    B. the amount (such amount shall be hereinafter referred to as the “Severance Amount”) equal
to the Executive’s Annual Base Salary;

               (ii) provide the Executive with executive outplacement services for a period of up to twelve
(12) months through a recognized outplacement provider that is agreed to by the Company and the
Executive;

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               (iii) continue benefits to the Executive and/or the Executive’s family at least equal to those
which would have been provided to them in accordance with the plans, programs, practices and
policies of the company as if the Executive’s employment had not been terminated for a period of
twelve (12) months; provided, however, that if the Executive becomes re-employed with another
employer and is eligible to receive medical or other welfare benefits under another employer
provided plan, the medical and other welfare benefits described herein shall be secondary to those
provided under such other plan during such applicable period of eligibility (such continuation of
such benefits for the applicable period herein set forth shall be
hereinafter referred to as “Welfare Benefit Continuation”). Any benefits received by the Executive
pursuant to this Section 6(a)(iii) shall not reduce the period of time the Executive is entitled to
receive COBRA continuation health coverage as a result of the Executive’s termination of
employment.

               (iv) immediately upon termination vest any options, restricted stock, or performance stock
granted to Executive, and the Executive will have six (6) months to exercise any such options.

               (v) pay to the Executive the proceeds of the Executive Savings Plan, including all accumulated
interest and dividends.

          (b) Death, Retirement or Disability. If the Executive’s employment is terminated by
reason of the Executive’s death, retirement or Disability during the Change Period, this Agreement
shall terminate without further obligations to the Executive’s legal representatives or the
Executive, as the case may be, under this Agreement.

          (c) Cause, Other than for Good Reason. If the Executive’s employment shall be
terminated for Cause during the Change Period or if the Executive terminates employment during the
Change Period other than for Good Reason, this Agreement shall terminate without further
obligations to the Executive, except the Company shall be obligated to pay the Executive’s
Annual Base Salary through the Termination Date plus the amount of any compensation previously
deferred by the Executive, in each case to the extent theretofore unpaid.

     6. Limitation on Payment. In the event that the Executive is a “disqualified
individual” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended
(the “Code”), the parties expressly agree that the payments described in Paragraph 6 of this
Agreement and all other payments to the Executive under any other agreements or arrangements with
any persons that constitute “parachute payments” within the meaning of Section 280G of the Code are
collectively subject to an overall maximum limit. The maximum limit shall be One Dollar ($1.00)
less than the aggregate amount that would otherwise cause any such payments to be considered a
“parachute payment” within the meaning of Section 280G of the Code, as determined by the
Corporation. Accordingly, to the extent that the payments would be considered a “parachute
payment” with respect to the Executive, then the portions of such payments shall be reduced or
eliminated in the following order until the remaining payments with respect to the Executive are
within the maximum described in this Paragraph 7.

          (a) First, any cash payment to the Executive;

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          (b) Second, any “parachute payments” not described in this Agreement; and

          (c) Third, any forgiveness of indebtedness of the Executive to the Corporation.

          The Executive expressly and irrevocably waives any and all rights to receive any “parachute
payments” that exceed the maximum limit described in this Paragraph 7.

     7. Confidential Information. The Executive shall hold in a fiduciary capacity for the
benefit of the Company all secret or confidential information, knowledge or data relating to the
Company and its respective businesses, which has been obtained by the Executive during the
Executive’s employment by the Company which shall not be or become public knowledge (other than by
acts by the Executive or representatives of the Executive in violation of this Agreement). After
termination of the Executive’s employment with the Company, the Executive shall not, without the
prior written consent of the Company or as may otherwise be required by law or legal process,
communicate or divulge any such information, knowledge or data to anyone other than the Company and
those designated by it. In no event shall an asserted violation of the provisions of this Section
9 constitute a basis for deferring or withholding any amounts otherwise payable to the Executive
under this Agreement.

          8. Non-Solicitation Covenant. In consideration for entry into this Agreement,
Executive reaffirms his/her agreement with the Company not to compete with, or solicit customers or
employees of the Company as set forth in the Intellectual Property Assignment, Non-Solicitation,
and Confidentiality Agreement.

     9. Successors and Assigns.

          (a) This Agreement is personal to the Executive and without the prior written consent of the
Company shall not be assignable by the Executive otherwise than by will or the laws of descent and
distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s
legal representatives.

          (b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

          (c) The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place. As
used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor
to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

     10. Miscellaneous.

          (a) This Agreement shall be governed by and construed in accordance with the laws of the State
of Michigan, without reference to principles or conflict of laws. All litigation related to this
Agreement shall be brought in a court located in the State of Michigan, and each party, for the
purposes of such litigation, hereby submits to the exclusive jurisdiction

5

 

and venue of that court. The captions of this Agreement are not part of the provisions hereof
and shall have no force or effect.

          (b) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

     If to the Executive:

or at the most current address of record designated in the Executive’s personnel file.

     If to the Company:

Chief Executive Officer

TechTeam Global, Inc.

27345 West 11 Mile Road

Southfield, Michigan 48033-2231

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notice and communications shall be effective when actually received by the addressee.

          (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

          (d) The Company may withhold from any amounts payable under this Agreement such federal, state
or local taxes as shall be required to be withheld pursuant to any applicable law or regulation.

          (e) The Executive’s or the Company’s failure to insist upon strict compliance with any
provision hereof or any other provision of this Agreement or the failure to assert any right the
Executive or the Company may have hereunder, including, without limitation, the right of the
Executive to terminate employment for Good Reason pursuant to Section 5(c)(i)-(iii), shall not be
deemed to be a waiver of such provision or right or any other provision or right of this Agreement.

          (f) The Executive and the Company acknowledge that, except as may otherwise be provided under
any other written agreement between the Executive and the Company, the employment of the Executive
by the Company is “at will” and, prior to the Effective Date, may be terminated by either the
Executive or the Company at any time. Moreover, if prior to the Effective Date, the Executive’s
employment with the Company terminates, then the Executive shall have no further rights under this
Agreement. The Executive further acknowledges that this Agreement does not give the Executive any
additional right to participate in any plan, program, etc. The Executive and the Company agree
that this Agreement supercedes any separation policy of the Company.

6

 

          (g) This Agreement constitutes the entire agreement between the parties concerning the subject
matter hereof. Any prior understandings, representations, promises, undertakings, agreements or
inducements, whether written or oral, concerning the subject matter hereof not contained herein
shall have no force and effect.

          (h) This Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal representatives. An
agreement to amend this Agreement can be entered into on behalf of the Company only by the
President of the Company after approval of the Company Board.

     IN WITNESS WHEREOF, the Company has by its appropriate officer executed this Agreement and
Executive has executed this Agreement.

	 	 	 	 	 
	 	 	TECHTEAM GLOBAL, INC.

 	 
	 	By:  	 	 
	 	 	Chief Executive Officer 	 
	 	 	EXECUTIVE 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	 	 
	 	 	 	 
	 

7

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