Document:

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                                                                   EXHIBIT 10.17
                                                                   -------------

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT is entered into as of October 1, 1999 by and between The
Limited Inc., a Delaware corporation (the "Company"), and Leonard A. Schlesinger
(the "Executive") (hereinafter collectively referred to as "the parties").

         WHEREAS, the Executive has served as a director of and consultant to
the Company and possesses an intimate knowledge of the business and affairs of
the Company and its policies, procedures, methods, and personnel; and

         WHEREAS, the Company has determined that it is essential and in its
best interests to retain the services of key management personnel and to ensure
their continued dedication and efforts; and

         WHEREAS, the Compensation Committee of the Board of Directors of the
Company (the "Board") has determined that it is in the best interests of the
Company to secure the services and employment of the Executive, and the
Executive is willing to render such services on the terms and conditions set
forth herein.

         NOW, THEREFORE, in consideration of the foregoing and the respective
agreements of the parties contained herein, the parties hereby agree as follows:

         1.   Term.  The initial term of employment under this Agreement shall
              ----
be for the period commencing on the date hereof (the "Commencement Date") and
ending on the sixth anniversary of the Commencement Date (the "Initial Term");
provided, however, that upon the expiration of the Initial Term, this Agreement
--------  -------
shall be automatically extended for a period of one year, unless either the
Company or the Executive shall have given written notice to the other at least
ninety (90) days prior thereto that the term of this Agreement shall not be so
extended.

         2.   Employment.
              ----------

              (a) Position.  The Executive shall be employed as the Executive
                  --------
Vice President for Organization, Leadership and Human Resources, or such other
position of reasonably comparable or greater status and responsibilities, as may
be determined by the Board of Directors.  The Executive shall perform the
duties, undertake the responsibilities, and exercise the authority customarily
performed, undertaken, and exercised by persons employed in a similar executive
capacity.  The Executive shall report to the Chief Executive Officer.

              (b) Obligations.  The Executive agrees to devote his full business
                  -----------
time and attention to the business and affairs of the Company.  The foregoing,
however, shall not preclude the Executive from serving on corporate, civic, or
charitable boards or committees or managing personal investments, so long as
such activities do not interfere with the performance of the Executive's
responsibilities hereunder.

         3.   Base Salary.  The Company agrees to pay or cause to be paid to the
              -----------
Executive during the term of this Agreement an annual base salary at the rate of
$575,000.  This base salary will be subject to annual review and may be
increased from time to time by the Board considering factors such as the
Executive's responsibilities, compensation of similar executives within the
company and in
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other companies, performance of the Executive, and other pertinent factors
(hereinafter referred to as the "Base Salary"). Such Base Salary shall be
payable in accordance with the Company's customary practices applicable to its
executives.

         4.   Equity Compensation.  The Company shall grant to the Executive
              -------------------
rights to receive 50,000 shares of the Company's common stock and options to
acquire 250,000 shares of the Company's common stock pursuant to the terms of
the agreements attached hereto as Exhibits A and B.

         5.   Employee Benefits.  The Executive shall be entitled to participate
              -----------------
in all employee benefit plans, practices, and programs maintained by the Company
and made available to senior executives generally and as may be in effect from
time to time.  The Executive's participation in such plans, practices and
programs shall be on the same basis and terms as are applicable to senior
executives of the Company generally.

         6.   Bonus.  The Executive shall be entitled to participate in the
              -----
Company's applicable incentive compensation plan on such terms and conditions as
may be determined from time to time by the Board.

         7.   Other Benefits.
              --------------

              (a)  Life Insurance.
                   --------------

                   (1) During the term of the Agreement, the Company shall
maintain term life insurance coverage on the life of the Executive in the amount
of $5,000,000, the proceeds of which shall be payable to the beneficiary or
beneficiaries designated by the Executive. The Executive agrees to undergo any
reasonable physical examination and other procedures as may be necessary to
maintain such policy. If the Company is not able to obtain such policy due to
Executive's physical examination results, an AD&D (accidental death and
dismemberment) policy of an equivalent amount will be obtained in lieu of the
term life insurance coverage.

                   (2) During the term of this Agreement, the Company shall be
entitled to maintain a "key person" term life insurance policy on the life of
the Executive, the proceeds of which shall be payable to the Company or its
designees. The Executive agrees to undergo any reasonable physical examination
and other procedures as may be necessary to maintain such policy.

              (b) Expenses.  Subject to applicable Company policies, the
                  --------
Executive shall be entitled to receive prompt reimbursement of all expenses
reasonably incurred by him in connection with the performance of his duties
hereunder or for promoting, pursuing, or otherwise furthering the business or
interests of the Company.

              (c) Office and Facilities. The Executive shall be provided with
                  ---------------------
appropriate offices and with such secretarial and other support facilities as
are commensurate with the Executive's status with the Company and adequate for
the performance of his duties hereunder.

         8.   Vacation.  The Executive shall be entitled to annual vacation in
              --------
accordance with the policies as periodically established by the Board for
similarly situated executives of the Company.

         9.   Termination.  The Executive's employment hereunder is subject to
              -----------
the following terms and conditions:

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              (a) Disability.  The Company shall be entitled to terminate the
                  ----------
Executive's employment after having established the Executive's Disability.  For
purposes of this Agreement, "Disability" means a physical or mental infirmity
which impairs the Executive's ability to substantially perform his duties under
this Agreement for a period of at least six months in any twelve-month calendar
period as determined in accordance with The Limited, Inc. Long-Term Disability
Plan.

              (b) Cause.  The Company shall be entitled to terminate the
                  -----
Executive's employment for "Cause" without prior written notice. For purposes of
this Agreement, "Cause" shall mean that the Executive (1) willfully failed to
perform his duties with the Company (other than a failure resulting from the
Executive's incapacity due to physical or mental illness); or (2) has plead
"guilty" or "no contest" to or has been convicted of an act which is defined as
a felony under federal or state law; or (3) engaged in willful misconduct in bad
faith which could reasonably be expected to materially harm the Company's
business or its reputation.

              The Executive shall be given written notice by the Board of
termination for Cause, such notice to state in detail the particular act or acts
or failure or failures to act that constitute the grounds on which the proposed
termination for Cause is based.  The Executive shall be entitled to a hearing
before the Board or a committee thereof established for such purpose and to be
accompanied by legal counsel.  Such hearing shall be held within 15 days of
notice to the Company by the Executive, provided the Executive requests such
hearing within 30 days of the written notice from the Board of the termination
for Cause.

              (c) Termination by the Executive.  The Executive may terminate
                  ----------------------------
employment hereunder for "Good Reason" by delivering to the Company (1) a
Preliminary Notice of Good Reason (as defined below), and (2) not earlier than
thirty (30) days from the delivery of such Preliminary Notice, a Notice of
Termination.  For purposes of this Agreement, "Good Reason" means (i) the
failure to continue the Executive in a capacity contemplated by Section 2
hereof; (ii) the assignment to the Executive of any duties materially
inconsistent with the Executive's positions, duties, authority,
responsibilities, and reporting requirements as set forth in Section 2 hereof;
(iii) a reduction in or a material delay in payment of the Executive's total
cash compensation and benefits from those required to be provided in accordance
with the provisions of this Agreement; (iv) the Company, the Board or any person
controlling the Company requires the Executive to be based outside of the United
States, other than on travel reasonably required to carry out the Executive's
obligations under the Agreement, or (v) the failure of the Company to obtain the
assumption in writing of its obligation to perform this Agreement by any
successor to all or substantially all of the assets of the Company within 15
days after a merger, consolidation, sale, or similar transaction; provided,
                                                                  --------
however, that "Good Reason" shall not include (A) acts not taken in bad faith
-------
which are cured by the Company in all respects not later than thirty (30) days
from the date of receipt by the Company of a written notice from the Executive
identifying in reasonable detail the act or acts constituting "Good Reason" (a
"Preliminary Notice of Good Reason") or (B) acts taken by the Company by reason
of the Executive's physical or mental infirmity which impairs the Executive's
ability to substantially perform his duties under this Agreement.  A Preliminary
Notice of Good Reason shall not, by itself, constitute a Notice of Termination.

              (d)  Notice of Termination. Any purported termination for Cause
                   ---------------------

by the Company or for Good Reason by the Executive shall be communicated by a
written Notice of Termination to the other two weeks prior to the Termination
Date (as defined below). For purposes of this Agreement, a "Notice of
Termination" shall mean a notice which indicates the specific termination

                                      -3-
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provision in this Agreement relied upon and shall set forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of the
Executive's employment under the provision so indicated. Any termination by the
Company other than for Cause or by the Executive without Good Reason shall be
communicated by a written Notice of Termination to the other party two (2) weeks
prior to the Termination Date. However, the Company may elect to pay the
Executive in lieu of two (2) weeks written notice. For purposes of this
Agreement, no such purported termination of employment shall be effective
without such Notice of Termination.

               (e)  Termination Date, Etc.  "Termination Date" shall mean in the
                    ---------------------
case of the Executive's death, the date of death, or in all other cases, the
date specified in the Notice of Termination; provided, however, that if the
                                             --------  -------
Executive's employment is terminated by the Company due to Disability, the date
specified in the Notice of Termination shall be at least thirty (30) days from
the date the Notice of Termination is given to the Executive.

          10.  Compensation Upon Termination.
               -----------------------------

               (a)  If during the term of this Agreement (including any
extensions thereof), the Executive's employment is terminated by the Company for
Cause, by reason of the Executive's death, or if the Executive gives written
notice not to extend the term of this Agreement, the Company's sole obligation
hereunder shall be to pay the Executive the following amounts earned hereunder
but not paid as of the Termination Date: (i) Base Salary, (ii) reimbursement for
any and all monies advanced or expenses incurred pursuant to Section 7(b)
through the Termination Date, and (iii) any earned compensation which the
Executive had previously deferred (including any interest earned or credited
thereon) (collectively, "Accured Compensation"), provided, however, that if
                                                 --------  -------
the Executive gives such written notice not to extend, the Company shall
continue to pay the premiums provided for in Section 7(a)(1) through the end of
the calendar year in which the Executive's termination occurs. The Executive's
entitlement to any other benefits shall be determined in accordance with the
Company's employee benefit plans then in effect.

               (b)  If the Executive's employment is terminated by the Company
other than for Cause or by the Executive for Good Reason, the Company's sole
obligation hereunder shall be as follows:

                    (i)   the Company shall pay the Executive the Accrued
          Compensation;

                    (ii)  the Company shall continue to pay the Executive the
          Base Salary for a period of one (1) year following the Termination
          Date; and

                    (iii) the Company shall continue to pay the premiums
          provided for in Section 7(a)(1) hereof through the end of the calendar
          year in which such termination occurs.

               (c)  If the Executive's employment is terminated by the Company
by reason of the Executive's Disability, the Company's sole obligation hereunder
shall be as follows:

                    (i)   the Company shall pay the Executive the Accrued
          Compensation;

                    (ii)  the Company shall continue to pay the Executive 100%
         of the Base Salary for the first twelve months following the
         Termination Date, 80% of the Base

                                      -4-
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          Salary for the second twelve months following the Termination Date,
          and 60% of the Base Salary for the third twelve months following the
          Termination Date; provided, however, that such Base Salary shall be
                            --------  -------
          reduced by the amount of any benefits the Executive receives by reason
          of his Disability under the Company's relevant disability plan or
          plans; and

                    (iii) if the Executive is disabled beyond thirty-six (36)
          months, the Company shall continue to pay the Executive 60% of Base
          Salary up to a maximum of $250,000 per year for the period of the
          Executive's Disability, as defined in the Company's relevant
          disability plans; provided, however, that such payments shall be
                            -----------------
          reduced by the
          amount of any benefits the Executive receives by reason of his
          Disability under the Company's relevant disability plan or plans; and

                    (iv)  the Company shall continue to pay the premiums
          provided for in Section 7(a)(1) hereof through the end of the calendar
          year in which such termination occurs.

          (d) If the Executive's employment is terminated by reason of the
Company's written notice to the Executive of its decision not to extend the term
of this Agreement as contemplated in Section 1 hereof, the Company's sole
obligation hereunder shall be as follows:

                    (i)   the Company shall pay the Executive the Accrued
          Compensation;

                    (ii)  the Company shall continue to pay the Executive the
          Base Salary for a period of one (1) year following the expiration of
          such term; and

                    (iii) the Company shall continue to pay the premiums
          provided for in Section 7(a)(1) hereof through the end of the calendar
          year in which the Executive's termination occurs.

               (e)  During the period the Executive is receiving salary
continuation pursuant to Section 10(b)(ii), 10(c)(ii), or 10(d)(ii) hereof, the
Company shall, at its expense, provide to the Executive and the Executive's
beneficiaries medical and dental benefits substantially similar in the aggregate
to those provided to the Executive immediately prior to the date of the
Executive's termination of employment; provided, however, that the Company's
                                       --------  -------
obligation with respect to the foregoing benefits shall be reduced to the extent
that the Executive or the Executive's beneficiaries obtains any such benefits
pursuant to a subsequent employer's benefit plans.

               (f)  The Executive shall not be required to mitigate the amount
of any payment provided for in this Agreement by seeking other employment or
otherwise, and no such payment shall be offset or reduced by the amount of any
compensation provided to the Executive in any subsequent employment.

          11.  Employee Covenants.
               -------------------

               (a)  For the purposes of this Section 11, the term "Company"
shall include The Limited, Inc., Intimate Brands, Inc. and all their
subsidiaries and affiliates thereof.

                                      -5-
<PAGE>

               (b)  Confidentiality. The Executive shall not, during the term
                    ---------------
of this Agreement and thereafter, make any Unauthorized Disclosure. For purposes
of this Agreement, "Unauthorized Disclosure" shall mean use by the Executive for
his own benefit or disclosure by the Executive to any person other than a person
to whom disclosure is reasonably necessary or appropriate in connection with the
performance by the Executive of duties as an executive of the Company or as may
be legally required, of any confidential information relating to the business or
prospects of the Company (including, but not limited to, any information and
materials pertaining to any Intellectual Property as defined below ; provided,
however, that such term shall not include the use or disclosure by the
Executive, without consent, of any publicly available information (other than
information available as a result of disclosure by the Executive in violation of
this Section 11(b)). This confidentiality covenant has no temporal, geographical
or territorial restriction.

               (c)  Non-Competition. During the Non-Competition Period described
                    ---------------
below, the Executive shall not, directly or indirectly, without the prior
written consent of the Company, own, manage, operate, join, control, be employed
by, consult with or participate in the ownership, management, operation or
control of, or be connected with (as a stockholder, partner, or otherwise), any
business, individual, partner, firm, corporation, or other entity that competes
or plans to compete, directly or indirectly, with the Company, or any of its
products; provided, however, that the "beneficial ownership" by the Executive
after termination of employment with the Company, either individually or as a
member of a "group," as such terms are used in Rule 13d of the General Rules and
Regulations under the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), of not more than two percent (2%) of the voting stock of any publicly
held corporation shall not be a violation of Section 11 of this Agreement.

                    The "Non-Competition Period" means the period the Executive
is employed by the Company plus one (1) year from the Termination Date if the
Executive's employment is terminated (i) by the Company for any reason, or (ii)
by the Executive for any reason.

               (d)  Non-Solicitation.  During the No-Raid Period described
                    ----------------
below, the Executive shall not directly or indirectly solicit, induce or attempt
to influence any employee to leave the employment of the Company, nor assist
anyone else in doing so. Further, during the No-Raid Period, the Executive shall
not, either directly or indirectly, alone or in conjunction with another party,
interfere with or harm, or attempt to interfere with or harm, the relationship
of the Company, with any person who at any time was an employee, customer or
supplier of the Company, or otherwise had a business relationship with the
Company.

                    The "No-Raid Period" means the period the Executive is
employed by the Company plus one (1) year from the Termination Date if the
Executive's employment is terminated (i) by the Company for any reason, or (ii)
by the Executive for any reason.

               (e)  Intellectual Property.  The Executive agrees that all
                    ---------------------
inventions designs and ideas conceived, produced, created, or reduced to
practice, either solely or jointly with others, during his employment with the
Company including those developed on his own time, which relates to or is useful
in the Company's business ("Intellectual Property") shall be owned solely by the
Company. The Executive understands that whether in preliminary or final form,
such Intellectual Property includes, for example, all ideas, inventions,
discoveries, designs, innovations, improvements, trade secrets, and other
intellectual property. All intellectual Property is either work made for hire
for the Company within the meaning of the United States Copyright Act, or, if
such Intellectual Property is

                                      -6-
<PAGE>

determined not to be work made for hire, then the Executive irrevocably assigns
all rights, titles and interests in and to the Intellectual Property to the
Company, including all copyrights, patents, and/or trademarks. The Executive
agrees that he will, without any additional consideration, execute all documents
and take all other actions needed to convey his complete ownership of the
Intellectual Property to the Company so that the Company may own and protect
such Intellectual Property and obtain patent, copyright and trademark
registrations for it. The Executive also agrees that the Company may alter or
modify the Intellectual Property at the Company's sole discretion, and the
Executive waives all right to claim or disclaim authorship. The Executive
represents and warrants that any Intellectual Property that he assigns to the
Company, except as otherwise disclosed in writing at the time of assignment,
will be my sole, exclusive, original work. The Executive also represents that he
has not previously invented any Intellectual Property or has advised the Company
in writing of any prior inventions or ideas.

              (f)  Remedies.  The Executive agrees that any breach of the terms
                   --------
of this Section 11 would result in irreparable injury and damage to the Company
for which the Company would have no adequate remedy at law; the Executive
therefore also agrees that in the event of said breach or any threat of breach,
the Company shall be entitled to an immediate injunction and restraining order
to prevent, such breach and/or threatened breach and/or continued breach by the
Executive and/or any and all persons and/or entities acting for and/or with the
Executive, without having to prove damages, and to all costs and expenses,
including reasonable attorneys' fees and costs, in addition to any other
remedies to which the Company may be entitled at law or in equity. The terms of
this paragraph shall not prevent the Company from pursuing any other available
remedies for any breach or threatened breach hereof, including but not limited
to the recovery of damages from the Executive. The Executive and the Company
further agree that the provisions of the covenants not to compete and solicit
are reasonable and that the Company would not have entered into this Agreement
but for the inclusion of such covenants herein. Should a court determine,
however, that any provision of the covenants is unreasonable, either in period
of time, geographical area, or otherwise, the parties hereto agree that the
covenant should be interpreted and enforced to the maximum extent which such
court deems reasonable.

              The provisions of this Section 11 shall survive any termination of
this Agreement, and the existence of any claim or cause of action by the
Executive against the Company, whether predicated on this Agreement or
otherwise, shall not constitute a defense to the enforcement by the Company of
the covenants and agreements of this Section 11; provided, however, that this
paragraph shall not, in and of itself, preclude the Executive from defending
himself against the enforceability of the covenants and agreements of this
Section 11.

              12.  Limitation of Payments.
                   ----------------------

                  (a) Gross-Up Payment.  In the event it shall be determined
                      ----------------
that any payment or distribution of any type to or for the benefit of the
Executive, by the Company, any of its affiliates, any Person who acquires
ownership or effective control of the Company or ownership of a substantial
portion of the Company's assets (within the meaning of Section 280G of the
Internal Revenue Code of 1986, as amended (the "Code"), and the regulations
thereunder) or any affiliate of such Person, whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or
otherwise (the "Total Payments"), would be subject to the excise tax imposed by
Section 4999 of the Code or any interest or penalties with respect to such
excise tax (such excise tax, together with any such interest and penalties, are
collectively referred to as the "Excise Tax"), then

                                      -7-
<PAGE>

the Executive shall be entitled to receive an additional payment (a "Gross-Up
Payment") in an amount such that after payment by the Executive of all taxes
(including any interest or penalties imposed with respect to such taxes),
including any Excise Tax, imposed upon the Gross-Up Payment, the Executive
retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon
the Total Payments (not including any Gross-Up Payment).

              (b) All determinations as to whether any of the Total Payments are
"parachute payments" (within the meaning of Section 280G of the Code), whether a
Gross-Up Payment is required, the amount of such Gross-Up Payment and any
amounts relevant to the last sentence of Subsection 12(a), shall be made by an
independent accounting firm selected by the Company from among the largest six
accounting firms in the United States (the "Accounting Firm").  The Accounting
Firm shall provide its determination (the "Determination"), together with
detailed supporting calculations regarding the amount of any Gross-Up Payment
and any other relevant matter, both to the Company and the Executive within five
(5) days of the Termination Date, if applicable, or such earlier time as is
requested by the Company or the Executive (if the Executive reasonably believes
that any of the Total Payments may be subject to the Excise Tax).  Any
determination by the Accounting Firm shall be binding upon the Company and the
Executive.  As a result of uncertainty in the application of Section 4999 of the
Code at the time of the initial determination by the Accounting Firm hereunder,
it is possible that the Company should have made Gross-Up Payments
("Underpayment"), or that Gross-Up Payments will have been made by the Company
which should not have been made ("Overpayments").  In either such event, the
Accounting Firm shall determine the amount of the Underpayment or Overpayment
that has occurred.  In the case of an Underpayment, the amount of such
Underpayment shall be promptly paid by the Company to or for the benefit of the
Executive.  In the case of an Overpayment, the Executive shall, at the direction
and expense of the Company, take such steps as are reasonably necessary
(including the filing of returns and claims for refund), follow reasonable
instructions from, and procedures established by, the Company, and otherwise
reasonably cooperate with the Company to correct such Overpayment.

          13. Employee Representation.  The Executive expressly represents and
              -----------------------
warrants to the Company that the Executive is not a party to any contract or
agreement and is not otherwise obligated in any way, and is not subject to any
rules or regulations, whether governmentally imposed or otherwise, which will or
may restrict in any way the Executive's ability to fully perform the Executive's
duties and responsibilities under this Agreement.

         14.  Successors and Assigns.
              ----------------------

              (a) This Agreement shall be binding upon and shall inure to the
benefit of the Company, its successors and assigns, and the Company shall
require any successor or assign to expressly assume 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 or assignment had taken place.  The
term "the Company" as used herein shall include any such successors and assigns
to the Company's business and/or assets.  The term "successors and assigns" as
used herein shall mean a corporation or other entity acquiring or otherwise
succeeding to, directly or indirectly, all or substantially all the assets and
business of the Company (including this Agreement) whether by operation of law
or otherwise.

              (b) Neither this Agreement nor any right or interest hereunder
shall be assignable or transferable by the Executive, the Executive's
beneficiaries or legal representatives,

                                      -8-
<PAGE>

except by will or by the laws of descent and distribution. This Agreement shall
inure to the benefit of and be enforceable by the Executive's legal personal
representative.

         15.  Arbitration.  Except with respect to the remedies set forth in
              -----------
Section 11(f) hereof, any controversy or claim between the Company or any of its
affiliates and the Executive arising out of or relating to this Agreement or its
termination shall be settled and determined by binding arbitration.  The
American Arbitration Association, under its Commercial Arbitration Rules, shall
administer the binding arbitration.  The arbitration shall take place in
Columbus, Ohio.  The Company and the Executive shall appoint one person to act
as an arbitrator, and a third arbitrator shall be chosen by the first two
arbitrators (such three arbitrators, the "Panel").  The Panel shall have no
authority to award punitive damages against the Company or the Executive.  The
Panel shall have no authority to add to, alter, amend, or refuse to enforce any
portion of the disputed agreements.  The Company and the Executive each waive
any right to a jury trial or to a petition for stay in any action or proceeding
of any kind arising out of or relating to this Agreement or its termination.

         16.  Notice.  For the purposes of this Agreement, notices and all other
              ------
communications provided for in the Agreement (including the Notice of
Termination) shall be in writing and shall be deemed to have been duly given
when personally delivered or sent by registered or certified mail, return
receipt requested, postage prepaid, or upon receipt if overnight delivery
service or facsimile is used, addressed as follows:

              To the Executive:
              ----------------
              Leonard A. Schlesinger
              20 Garland Road
              Lincoln, MA 01773

              with a copy to:
              --------------

              Andrew C. Liazos
              McDermott, Will & Emery
              28 State Street
              Boston, MA 02109-1775

              To the Company:
              --------------

              The Limited, Inc.
              3 Limited Parkway
              Columbus, Ohio 43230
              Attn: Secretary

         17.  Settlement of Claims.  The Company's obligation to make the
              --------------------
payments provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any circumstances, including, without
limitation, any set-off, counterclaim, recoupment, defense, or other right which
the Company may have against the Executive or others.

         18.  Miscellaneous.  No provision of this Agreement may be modified,
              -------------
waived, or discharged unless such waiver, modification, or discharge is agreed
to in writing and signed by the Executive and the Company.  No waiver by either
party hereto at any time of any breach by the other

                                      -9-
<PAGE>

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. No agreement or representations, oral or otherwise, express or
implied, with respect to the subject matter hereof have been made by either
party which are not expressly set forth in this Agreement.

         19.  Governing Law.  This Agreement shall be governed by and construed
              -------------
and enforced in accordance with the laws of the State of Ohio without giving
effect to the conflict of law principles thereof.

         20.  Severability.  The provisions of this Agreement shall be deemed
              ------------
severable and the invalidity or unenforceability of any provision shall not
affect the validity or enforceability of the other provisions hereof.

         21.  Entire Agreement.  This Agreement constitutes the entire agreement
              ----------------
between the parties hereto with respect to the subject matter hereof and
supersedes all prior agreements, if any, understandings and arrangements, oral
or written, between the parties hereto with respect to the subject matter
hereof.

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

                             THE LIMITED, INC.

                             By:___________________________
                             Name:  Leslie H. Wexner
                             Title: Chairman of the Board

                             ____________________________
                             Leonard A. Schlesinger

                                      -10-<PAGE>

                                                                   Exhibit 10.33

                               SM&A CORPORATION
                             EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (this "Agreement") is entered into as of
                                      ---------
February 1, 2000, by and between SM&A CORPORATION, a California corporation
("SM&A"), and STEVEN S. MYERS ("Employee"), with reference to the following:
  ----                          --------

     A.  SM&A desires to employ Employee on the terms and conditions set forth
herein;

     B.  Employee desires to perform services for SM&A as an employee of SM&A on
the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration for the promises and obligations set forth
below, SM&A and Employee agree as follows:

1.   Employment and Term.
     -------------------

     1.1  SM&A agrees to employ, and Employee agrees to be employed by SM&A, on
the terms and conditions described below (the "Employment").
                                               ----------

     1.2  This Agreement shall be effective as of February 1, 2000 (the
"Effective Date") and shall, unless sooner terminated pursuant to the terms set
 --------------
forth below, terminate on January 31, 2003.

2.  Duties.
    ------

     2.1  Employee agrees that during the Employment, Employee shall devote his
full-time efforts to his duties as an employee of SM&A, now or in the future
assigned to Employee by SM&A. From and after the date of this Agreement,
Employee shall serve as Chief Executive Officer and Chairman of the Board of
SM&A. The parties further acknowledge that the Employee is ultimately
responsible to the Board of Directors of SM&A. Employee agrees to continue to
serve without additional compensation, if, from time to time he is elected or
appointed thereto, in one or more offices as a Director or member of any
committee of the Board of Directors of SM&A or of any direct or indirect
subsidiary of SM&A.

3.  Compensation.
    ------------

     3.1  As consideration for said performance and duties of adherence to the
covenants in this Agreement, Employee shall be entitled to the compensation set
forth on Exhibit A attached hereto and incorporated herein by this reference
         ---------
(the "Compensation").
      ------------

     3.2  Employee understands and acknowledges that, except as otherwise set
forth in this Agreement, the Compensation will constitute the full and exclusive
consideration to be received by Employee for all services performed by Employee
in connection with SM&A's employment of Employee, and for the performance of all
his promises and obligations under this Agreement.

                                       1
<PAGE>

     3.3  Aside from the Compensation, SM&A may adopt, or continue in force,
benefit plans for the benefit of its employees or certain of its employees which
may include, but not be limited to, group life insurance, medical insurance,
etc. SM&A may terminate any or all such plans at any time and may choose not to
adopt any additional or replacement plans. Employee's rights under any benefit
plans now in force or later adopted by SM&A shall be governed solely by the
terms of such plans; provided, however, that in no event shall Employee's rights
under any such benefit plans be less than those of any other executive officer
SM&A.

4.   Duty to Devote Full Time and Avoid Conflict of Interest.  Employee agrees
     -------------------------------------------------------
that during the Employment he shall devote his full-time efforts to his duties
as an employee of SM&A.  Employee further agrees that during the Employment he
shall not, directly or indirectly, engage or participate in any activities which
are in conflict with the best interests of SM&A.

5.   Compliance with Rules and Regulations.  Employee agrees to comply with
     -------------------------------------
SM&A's rules, regulations and practices, including but not limited to those
rules concerning vacation and sick leave, as they may from time to time be
adopted or modified, so long as they are uniformly applied to all employees.

6.   Non-competition and Non-solicitation by Employee.
     ------------------------------------------------

     6.1  Employee agrees that, during the Employment, Employee will not engage
in any activity competitive with or adverse to SM&A's business or welfare,
whether alone, as a partner, or as an officer, director, employee or shareholder
of any other corporation and shall not otherwise undertake planning for or the
organization of any business activity competitive with SM&A's business or
combine or conspire with other employees or representatives of SM&A for the
purpose of organizing any such competitive business activity. This prohibition
shall not include ownership of less than five percent (5%) of the outstanding
stock by Employee in a publicly traded corporation.

     6.2  For a period of two (2) years following the termination of the
Employment, Employee shall not induce, solicit or influence or attempt to
induce, solicit or influence any person who is engaged as an employee or
otherwise by SM&A or any client of SM&A, to terminate his or her employment or
other engagement with SM&A.

7.   Trade Secrets of SM&A.  Employee acknowledges and understands that during
     ---------------------
the Employment, Employee will have access to and will utilize and review
information which constitutes valuable, important and confidential trade
secrets, as that term is interpreted under the Uniform Trade Secrets Act
(California Civil Code Section 3426 et seq.) and/or confidential and proprietary
material and information of or relating to the business of SM&A necessary for
the successful conduct of SM&A's business.  This information includes, but is
not limited to: (a) listings of and data regarding the Clients (past and
current); (b) information regarding potential customers and clients; (c) data
relating to the identity of the Clients of SM&A; (d) information regarding
bidding, billing and pricing practices; (e) information regarding the nature and
type of services rendered to the Clients; (f) other methodologies, computer
programs, databases, processes, compilations of information, results of
proposals, job notes, reports and records, and (g) information regarding the
nature and type of software products sold to or under development with Clients
of SM&A (all of which information is sometimes referred to in this Agreement as

                                       2
<PAGE>

the "Secrets").  The foregoing notwithstanding, Secrets shall not include
     -------
information or data which is (i) in the public domain, (ii) generally known in
the information technology staffing services industry, (iii) already known to
Employee as of the date he began his employment with SM&A, or (iv) rightfully
disclosed to Employee outside of the scope of his employment with SM&A by a
third party not under a duty of confidentiality to SM&A.  Employee understands
further that the Secrets have been and will be accumulated, by Employee and
other personnel at SM&A at considerable expense to SM&A (including but not
limited to compensation paid to SM&A personnel dealing with the Secrets and the
Clients), and that SM&A has and will continue to expend its resources in order
to maintain actively and vigorously the confidentiality of the Secrets, as such
information is extremely valuable to SM&A, and well worth the expense of
enforcement and preservation of such confidentiality.  Accordingly, Employee
agrees as follows:

          (a)  All of the Secrets shall be safeguarded and treated as
     confidential by Employee.

          (b)  Any and all data, notes, letters, computer programs, email
     records, reports, telephone records and all other written documentation
     relating to the business of SM&A (including but not limited to the Secrets)
     that may be collected, compiled, written, reviewed or conceived by
     Employee, whether set forth in tangible media or intangible, from or by
     reason of services performed by Employee for SM&A shall become the absolute
     property of SM&A, and Employee shall not assert or establish a claim for
     any statutory or common law right or any other possessory or proprietary
     right with respect to any of the above. The foregoing notwithstanding, upon
     the termination of the Employment, Employee may (i) at his own expense,
     make and retain copies of records pertaining to investment banking contacts
     (including analysts and mergers and acquisitions), commercial banking
     contacts, independent public accounting contacts, legal contacts or other
     contacts in the investment community (buy-side and sell-side) to the extent
     that such records do not constitute trade secrets of SM&A and (ii) retain
     closing binders for financings and acquisitions previously furnished to
     him; provided, however, that Employee shall ensure that SM&A retains a copy
     of all such records and closing binders; and provided further, that
     Employee shall be obligated to maintain the information contained in any
     closing binder retained by him as confidential to the extent that such
     information constitutes Secrets.

          (c)  Employee shall hold the Secrets in strictest confidence and shall
     not (i) disclose any Secrets to any person, corporation, firm, or other
     entity, either during the Employment or afterward, or (ii) use any Secrets
     in Employee's subsequent business or employment, without the prior express
     written authorization of SM&A; provided, however, that Employee may
     disclose Secrets to the extent required to do so by a subpoena lawfully
     issued in a judicial proceeding or arbitration.

          (d)  Employee shall not otherwise commit any act which shall
     compromise the confidentiality of any Secrets, including but not limited to
     making a copy of such property (whether electronic, paper or otherwise)
     without the prior express written authorization of SM&A, except as
     permitted by Section 7(b) above.
                  ------------

                                       3
<PAGE>

8.   Confidential Information of Clients.  All ideas, concepts, information and
     -----------------------------------
written material disclosed to Employee by SM&A, or acquired from any of the
Clients, and all financial, accounting, statistical, personnel, and business
data and plans of the Clients, are and shall remain the sole and exclusive
property and proprietary information of SM&A, or said Client, and are disclosed
in confidence by SM&A or permitted to be acquired from the Clients in reliance
on Employee's agreement to maintain them in confidence and not to use or
disclose them to any other person except in furtherance of SM&A's business.

9.   Return of Information.  At the time of the termination of the Employment,
     ---------------------
except as permitted by Section 7(b) above, Employee agrees to deliver promptly
                       ------------
to SM&A all notes, books, electronic data (regardless of storage media),
correspondence and other written or graphical records (including all copies
thereof) in Employee's possession or under Employee's control relating to any
business, work, the Clients or any other aspect of SM&A, whether or not
containing any Secrets, including but not limited to each original and all
copies of all or any part thereof.

10.  Cooperation.  Employee agrees that, both during the Employment and
     -----------
afterward, he will sign all papers, give evidence and testimony and, at SM&A's
expense, perform all acts which, in SM&A's opinion, are necessary, proper or
expedient to carry out and fulfill the purposes and intents of this Agreement.

11.  Remedies; Injunctive Relief.  In the event of a breach or threatened breach
     ---------------------------
by Employee of any of the provisions of this Agreement, Employee agrees that
SM&A, in addition to and not in limitation of any other rights, remedies, or
damages available to SM&A at law or in equity, shall be entitled to a
preliminary and a permanent injunction in order to prevent or restrain any such
breach by Employee or by Employee's partners, agents, representatives, servants,
employers, employees, and/or any and all persons directly or indirectly acting
for or with Employee.

12.  Termination of Employment.
     -------------------------

     12.1  The Employment may be terminated by SM&A at any time with "Cause" (as
                                                                      -----
defined below).  Except as otherwise agreed in writing or as otherwise provided
by this Agreement as due and payable (or as required by law), upon termination
of the Employment by SM&A with Cause, SM&A shall have no further obligation to
Employee under this Agreement by way of compensation or otherwise, but
Employee's duties under Sections 6 through 10, inclusive, shall continue after
                        ---------------------
said termination of Employment.  Notwithstanding the foregoing, to the extent
the grounds for any proposed termination with Cause are capable of being cured
or remedied by Employee, SM&A shall not terminate Employee with Cause unless the
representative of the Board of Directors of SM&A has first counseled Employee as
to how he could effect such cure or remedy and Employee is given at least thirty
(30) days to do so.  A determination of whether Employee has satisfactorily
effected such cure or remedy shall be promptly made by a majority of the
disinterested (i.e. not the Employee) directors of the Board of Directors at the
end of the period provided to Employee for such cure or remedy and such
determination shall be final.

                                       4
<PAGE>

     12.2  The Employment may be terminated at any time (i) by SM&A without
Cause (as defined below) by giving Employee thirty (30) days' advance written
notice of such termination or (ii) by Employee for Good Reason (as defined
below) by giving SM&A thirty (30) days' advance written notice of such
termination. In the event that SM&A terminates the Employment without Cause, or
Employee terminates the Employment for Good Reason, SM&A shall (i) pay to
Employee the base salary of the Compensation, (ii) provide the same health and
life insurance benefits, and (iii) pay the lease payments with respect to the
automobile lease described in Exhibit A attached hereto, in each case until the
                              ---------
earlier to occur of (A) the last day of the term of this Agreement specified in
Section 1.2 above, (B) the expiration of twelve (12) calendar months after the
-----------
effective date of such termination of the Employment, (C) the date upon which
Employee becomes employed on a full-time basis (including but not limited to
self-employment, but only if Employee holds himself out to the public as being a
self-employed consultant or other businessman), or (D) the date upon which
Employee violates any of Sections 6 through 10, inclusive. In addition, SM&A
                         ---------------------
shall pay Employee the pro-rated Incentive Bonus described in Exhibit A attached
                                                              ---------
hereto to which Employee was entitled during the Employment (which proration
shall be based on a fraction, the numerator of which is the number of calendar
days during the fiscal year during which Employee was employed prior to the
effective date of the termination of the Employment and the denominator of which
is 365).  If SM&A's medical and/or life insurance plans do not allow Employee's
continued participation in such plan or plans during the period described above,
then SM&A shall pay to Employee, in monthly installments, from the date on which
Employee's participation in such medical and/or life insurance, as applicable,
is prohibited for the remainder of the time period described in the second
sentence of this Section 12.2, the monthly premium or premiums which had been
                 ------------
payable by SM&A with respect to Employee for such discontinued medical and/or
life insurance, as applicable.

     12.3  Employee may terminate the Employment without Good Reason at any time
by giving SM&A thirty (30) days' advance written notice of such termination.
Upon Employee's termination of the Employment without Good Reason, SM&A shall
have no further obligation to Employee under this Agreement by way of
compensation or otherwise (except for the obligation to pay the Compensation to
which Employee may be entitled at the time of such termination), but Employee's
duties under Sections 6 through 10, inclusive, shall continue after said
             ---------------------
termination of the Employment.

     12.4  The Employment will terminate immediately upon Employee's death. In
such event, SM&A shall (i) pay to Employee's estate the base salary and family
health benefits components of the Compensation until the earlier to occur of (A)
the last day of the term of this Agreement specified in Section 1.2 above or (B)
                                                        -----------
the expiration of twelve (12) calendar months after the effective date of such
termination.  In addition, SM&A shall pay to Employee's estate the pro-rated
Incentive Bonus described in Exhibit A attached hereto to which Employee was
                             ---------
entitled during the Employment (which proration shall be based on a fraction,
the numerator of which is the number of calendar days during the fiscal year
during which Employee was employed prior to his death and the denominator of
which is 365).  Except for the payments expressly provided in this Section 12.4,
                                                                   ------------
SM&A shall have no further obligation to Employee's estate under this Agreement
by way of compensation or otherwise.

     12.5  SM&A may terminate the Employment at any time if Employee becomes
Disabled (as defined below) by giving Employee thirty (30) days' advance written
notice of such

                                       5
<PAGE>

termination. In the event that SM&A terminates the Employment because Employee
has become Disabled, SM&A shall (i) pay to Employee the base salary of the
Compensation and (ii) provide the same health and life insurance benefits, in
each case until the earlier to occur of (A) the last day of the term of this
Agreement specified in Section 1.2 above, (B) the expiration of twelve (12)
                       -----------
calendar months after the effective date of such termination of the Employment,
(C) the date upon which Employee becomes employed on a full-time basis
(including but not limited to self-employment, but only if Employee holds
himself out to the public as being a self-employed consultant or other
businessman), or (D) the date upon which Employee violates any of Sections 6
                                                                  ----------
through 10, inclusive.  In addition, SM&A shall pay Employee the pro-rated
----------
Incentive Bonus described in Exhibit A attached hereto to which Employee was
                             ---------
entitled during the Employment (which proration shall be based on a fraction,
the numerator of which is the number of calendar days during the fiscal year
during which Employee was employed prior to the effective date of the
termination of the Employment and the denominator of which is 365).  If SM&A's
medical and/or life insurance plans do not allow Employee's continued
participation in such plan or plans during the period describe above, then SM&A
shall pay to Employee, in monthly installments, from the date on which
Employee's participation in such medical and/or life insurance, as applicable,
is prohibited for the remainder of the time period described in the second
sentence of this Section 12.5, the monthly premium or premiums which had been
                 ------------
payable by SM&A with respect to Employee for such discontinued medical and/or
life insurance, as applicable.

     12.6  As used in this Agreement, the following terms shall have the
meanings indicated:

          (a)  "Cause" shall mean an action or actions by Employee during the
                -----
     Employment (including but not limited to inactions) which constitute either
     (i) gross insubordination, gross negligence, unethical or criminal behavior
     constituting a felony under federal or state law and which involves moral
     turpitude, or a breach of fiduciary duty of Employee as an officer and/or
     director of SM&A, or (ii) a violation of any of Sections 4 through 10,
                                                     ---------------------
     inclusive.

          (b)  "Disabled" shall mean Employee's ability to perform his duties
                --------
     under this Agreement is impaired, due to sickness, physical or mental
     impairment or injury, by more than twenty-five (25%) for a period of six
     (6) consecutive months or for nine (9) months in any consecutive twelve
     (12) month period. In the event Employee disputes SM&A's determination that
     he is Disabled, Employee shall give written notice of such dispute to SM&A
     during the thirty (30) day notice period prior to the proposed effective
     date of such termination, and Employee and SM&A shall thereupon each
     select, within thirty (30) days of such notice from Employee, a physician
     to evaluate whether Employee is Disabled. Such physicians shall complete
     their evaluation and report to the Board of Directors within thirty (30)
     days. If such physicians do not agree as to whether Employee is Disabled,
     they shall promptly select a third physician to further evaluate Employee,
     whose conclusion on such matter shall be rendered within ten (10) days of
     his or her selection and shall be final and binding on Employee and SM&A.

          (c)  "Good Reason" shall mean any of the following:
                -----------

               (i)   (A) the assignment to Employee of duties inconsistent with
     Employee's current position, duties, or responsibilities which is
     sufficient to

                                       6
<PAGE>

     constitute a diminution of status with SM&A, (B) a material change in
     Employee's titles or offices or diminution of reporting relationships (such
     that Employee is reporting to Company personnel other than the Board of
     Directors) adverse to Employee, or (C) any removal of Employee from or any
     failure to reelect Employee to any of his positions as a senior officer of
     SM&A, except, in any such case, with Employee's consent or in connection
     with the termination of his employment for disability, retirement (at age
     70), death or resignation (other than resignation for Good Reason),
     provided, however, that Good Reason shall not include the assignment to
     Employee of any duties or responsibilities of one or more management
     positions within his competence to the extent that any such position is not
     filled at any time and it is necessary to perform the duties and
     responsibilities of such position pending the hiring of a person to hold
     such position, provided that any such assignment does not exceed six (6)
     months, and provided that SM&A is actively seeking to fill such position
     during the period of such assignment;

          (ii)   a purported reduction by SM&A in the Compensation in effect on
     the date hereof or as the same may be increased from time to time during
     the term of this Agreement or any failure by SM&A to reimburse Employee or
     provide the benefits set forth in Exhibit A;
                                       ---------

          (iii)  any material failure by SM&A to continue in effect any
     significant and material benefit plan or arrangement (including, without
     limitation, SM&A's incentive bonus plan, profit sharing plan, stock option
     plans, medical insurance plans, disability insurance plans, life insurance
     plans or vacation pay plans, with such generally applicable amendments
     thereto as may be approved from time to time in good faith by SM&A's Board
     of Directors) in which Employee is participating or other plans providing
     Employee with substantially similar benefits (collectively, the "Benefit
                                                                      -------
     Plans"), or any action by SM&A which would materially and adversely affect
     -----
     Employee's participation in or materially reduce Employee's benefits under
     any Benefit Plan;

          (iv)   a relocation of the office to which Employee is required to
     report to a location outside of a twenty-five (25) mile radius of the then
     existing SM&A corporate headquarters, or a requirement that Employee
     relocate his residence from Irvine, California;

          (v)    any failure by SM&A to obtain the assumption of this Agreement
     by any successor or assign of SM&A, if such successor or assigns asserts
     the position that it is not bound by the provisions hereof,

          (vi)   any failure by SM&A to comply with any material provision of
     this Agreement; or

          (vii)  a failure to provide support services, staff, office space and
     accouterments necessary to perform any duties assigned to Employee or a
     material reduction in the level of support services and staff, office space
     or

                                       7
<PAGE>

     accouterments made available to Employee, unless such reduction is
     generally effective for all other officers of equal rank or junior to
     Employee; provided, however, that no such action shall be considered to
     constitute Good Reason unless and until Employee has given SM&A written
     notice of, and thirty (30) days' opportunity to cure or remedy the specific
     action which Employee alleges would constitute Good Reason if not so cured
     or remedied and SM&A has failed to effect such cure or remedy.

     12.7   The rights and remedies provided in this Section 12 shall constitute
                                                     ----------
the exclusive rights and remedies available to Employee relating to or arising
from the termination of the Employment, including claims for breach of contract;
provided, however, that Employee shall be entitled to pursue any and all
available legal remedies based on any claim that such termination constituted a
violation of applicable federal or state law.

     12.8   No policies or procedures of SM&A or benefits provided by SM&A,
whether oral or written, express or implied, formal or informal, are intended,
nor shall they be construed to limit the right or ability of SM&A or Employee to
terminate the Employment as set forth above. Except as otherwise agreed in
writing or as otherwise provided by this Agreement, upon termination of the
Employment, neither SM&A nor Employee shall have any further obligation to each
other by way of compensation or otherwise.

     12.9   SM&A will require any successor or assign (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of SM&A, by agreement in form
and substance reasonably satisfactory to Employee, expressly, absolutely and
unconditionally to assume and agree to perform this Agreement in the same manner
and to the same extent that SM&A would be required to perform this Agreement if
no such succession or assignment had taken place. In any such event, the term
"SM&A" as used in this Agreement shall mean any such successor or assign which
executes and delivers the agreement provided for in the immediately preceding
sentence or which otherwise becomes bound by the terms and provisions of this
Agreement by operation of law.

     12.10  Employee shall make a reasonable good faith effort to find new
employment during any period during which payments are paid to Employee
following Employee's termination of employment with SM&A. Except as expressly
provided herein, no payment or benefit provided for under this Agreement shall
be reduced by any compensation earned by Employee as the result of employment by
another employer after the date of termination with SM&A. Except as expressly
provided herein, the provisions of this Agreement, and any payment or benefit
provided for hereunder, shall not reduce any amounts otherwise payable, or in
any way diminish Employee's existing rights, or rights which would accrue solely
as a result of the passage of time, under any SM&A benefit plan, employment
agreement or other contract, plan or arrangement. Except as required in
connection with the determinations contemplated by Section 12.6, the amount of
                                                   ------------
any payment provided under this Agreement shall not be reduced by reason of any
present value calculation.

13.  Change of Control of SM&A.  Notwithstanding anything to the contrary in any
     -------------------------
Stock Option Agreement or Incentive Stock Option Agreement previously entered
into by SM&A and Employee, upon the occurrence of a "change of control" during
                                                     -----------------
the Employment, any and all

                                       8
<PAGE>

stock options granted to Employee under SM&A's stock option plans shall, whether
or not the Employment is terminated as a result of such change of control,
become immediately vested and exercisable for a period not to exceed the lesser
of (a) two (2) years, or (b) the date on which such stock options would
otherwise have terminated (other than by reason of the termination of the
Employment). The term "change of control" shall mean (i) any merger or
                       -----------------
consolidation where SM&A is not the continuing or surviving corporation or
pursuant to which all or substantially all of the shares of SM&A's Common Stock
are converted into cash, other property or securities of another corporation,
other than, in either case, a merger or consolidation in which the shares of
SM&A's Common Stock outstanding immediately prior to such merger or
consolidation represent or are converted into securities representing more than
50% of the voting power of the surviving corporation in such merger or
consolidation or the parent of such corporation, (ii) any sale, lease, exchange
or other transfer (in one transaction or a series of related transactions) of
all, or substantially all, of the assets of SM&A, (iii) the approval by the
shareholders of SM&A of any plan or proposal for the liquidation or dissolution
of SM&A, (iv) any "person" (as such term is used in Sections 13(d) and 14(d)(2)
                   ------
of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) shall
                                                         ------------
become the beneficial owner (within the meaning of Rule 13d-3 under the Exchange
Act) of 35% or more of SM&A's outstanding Common Stock after the date hereof,
(v) during any period of two consecutive years, individuals who, at the
beginning of such period constitute the entire Board of Directors, together with
persons whose nomination was approved by a vote of at least two thirds of such
directors (or directors so approved) shall cease for any reason to constitute a
majority of the members of the Board of Directors, or (vi) there shall be any
change of control of a nature which would be required to be reported in response
to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Exchange
Act or any successor regulation of substantially similar import, regardless of
whether SM&A is subject to such reporting requirement at such time.

14.  Miscellaneous Provisions.
     ------------------------

     14.1  In the event that any of the provisions of this Agreement shall be
held to be invalid or unenforceable, then all other provisions shall
nevertheless continue to be valid and enforceable as though the invalid or
unenforceable parts had not been included in this Agreement. In the event that
any provision relating to the time period of any restriction imposed by this
Agreement shall be declared by a court of competent jurisdiction to exceed the
maximum time period which such court deems reasonable and enforceable, then the
time period of restriction deemed reasonable and enforceable by the court shall
become and shall thereafter be the maximum time period.

     14.2  This Agreement shall be binding upon the heirs, executors,
administrators, and successors-in-interest of the parties hereto. 14.3 This
Agreement shall be construed and enforced according to the laws of the State of
California, excluding its choice of law rules.

     14.4  This Agreement supersedes all previous correspondence, promises,
representations, and agreements, if any, either written or oral, between SM&A
and Employee. No provision of this Agreement may be modified except by a writing
signed by both SM&A and Employee.

                                       9
<PAGE>

     14.5  All notices, demands, requests, consents, approvals or other
communications (collectively "Notices") required or permitted to be given
                              -------
hereunder or which are given with respect to this Agreement shall be in writing
and shall be personally served or deposited in the United States mail,
registered or certified, return receipt requested, postage prepaid, addressed as
set forth below, or such other address as such party shall have specified most
recently by written notice.  Notices shall be deemed given on the date of
service if personally served.  Notices mailed as provided herein shall be deemed
given on the third business day following the date so mailed:

               To SM&A:                 SM&A Corporation
                                        4695 MacArthur Blvd., Suite 800
                                        Newport Beach, CA 92660
                                        Attention:  Chairman, Compensation
                                         Committee
                                        Board of Directors

               with a copy to:          Rutan & Tucker, LLP
                                        611 Anton Boulevard, 14th Floor
                                        Costa Mesa, CA 92626
                                        Attention:  Thomas J. Crane

               To Employee:             Steven S. Myers
                                        5 Summit
                                        Irvine, CA 92612

               with a copy to:          ________________
                                        ________________
                                        ________________
                                        Attention:  ___________

     14.6  Should any party institute any action or proceeding to enforce this
Agreement or any provision hereof, or for damages by reason of any alleged
breach of this Agreement or of any provision hereof, or for a declaration of
rights hereunder, the prevailing party in any such action or proceeding shall be
entitled to receive from the other party all costs and expenses, including
reasonable attorneys', accountants' and experts' fees, incurred by the
prevailing party in connection with such action or proceeding.

15.  Acknowledgment by Employee.  Employee has carefully read and considered the
     --------------------------
provisions of this Agreement and agrees that all of the above-stated
restrictions, obligations and promises are fair and reasonable and reasonably
required for the protection of the interests of SM&A.  Employee further
acknowledges that the goodwill and value of SM&A is enhanced by these provisions
and that said enhancement is desired by Employee.  Finally, Employee indicates
his acceptance of this Agreement by signing and returning the enclosed copy of
this Agreement where indicated below.

16.  Counsel.  The parties hereto have requested that counsel to the Company,
     -------
Rutan & Tucker, LLP, prepare this Agreement and acknowledge that in so doing
that such counsel is

                                       10
<PAGE>

acting on behalf of the Company. Myers acknowledges that Rutan &Tucker, LLP has
previously served as and continues to serve as counsel to the Company in other
matters.

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

                                        SM&A CORPORATION

                                        By: /s/ J. Christopher Lewis
                                           -------------------------------------
                                             J. Christopher Lewis,
                                             Chairman, Compensation Committee
                                              of the Board of Directors

                                       11
<PAGE>

                                   EXHIBIT A

                        Compensation of Steven S. Myers
                        -------------------------------

     The following summarizes the compensation to which Employee shall be
entitled under the foregoing terms of this Employment Agreement.

1.   BASE SALARY    Effective February 1, 2000, Employee's base annual salary
     -----------
                    shall be $600,000 per year, paid in at bi-weekly
                    installments. In no event, and under no circumstances, shall
                    Employee's annual salary be reduced below the most recent
                    annual salary. For example, in no event can Employee's base
                    annual salary ever be reduced below $600,000.

2.   LEAVE CREDIT   During the Employment, and in addition to the company
     ------------
                    observed and posted holidays of 10 per year, Employee shall
                    accrue paid leave at a rate of 25 days per annum; provided,
                    however, that any such leave time, if not used, will be
                    subject to SM&A's limitations on carrying forward unused
                    leave time; and, provided further, that Employee shall use
                    his best efforts to coordinate with the President and COO of
                    SM&A the dates upon which Employee shall use his aforesaid
                    vacation so as to minimize the negative impact upon SM&A
                    occasioned by Employee's absence.

3.   CELLULAR
     PHONE:         SM&A shall reimburse Employee for the periodic cost of a
     -----
                    cellular telephone including but not limited to phone
                    equipment rental.

4.   OTHER
     BENEFITS:      Employee shall be entitled to participate in and receive
     --------
                    benefits under all profit-sharing plans, pension plans,
                    group medical plans and other benefit plans for the payment
                    of additional compensation or benefits to employees of SM&A
                    which SM&A at any time maintains for executive employees.

5.   AUTOMOBILE
     LEASE:         In lieu of an automobile allowance, SM&A shall lease an
     -----
                    automobile of Employee's choice. In addition, the reasonable
                    cost of annual insurance, fuel, maintenance, cleaning and
                    repairs shall be borne by SM&A.

                                       12
<PAGE>

6.   BUSINESS
     EXPENDITURES:  Employee may be authorized to incur reasonable expenses for
     ------------
                    promoting and conducting the business of SM&A, including but
                    not limited to expenditures for entertainment and travel.
                    SM&A shall reimburse Employee monthly for all such approved
                    business expenses upon presentation of reasonable
                    documentation establishing the amount, date, place and
                    essential character of the expenditures.

7.   INCENTIVE
     BONUS:         Employee's incentive bonus for each fiscal year shall
     -----
                    provide for a maximum bonus of up to $400,000 of his base
                    salary for such year and shall be subject to such terms and
                    conditions as shall be determined in good faith by the Board
                    of Directors, with the recommendation of and in consultation
                    with the Compensation Committee of the Board of Directors.
                    The incentive bonus may be based on financially oriented
                    components or upon Employee's individual accomplishments or
                    both. The incentive bonus earned for a fiscal year of SM&A
                    shall be paid not later than three (3) business days
                    following the review and approval by the Board of Directors
                    of SM&A of the final financial statement results of the
                    audit for said fiscal year by SM&A's independent auditors.

                    Employee may draw up to $70,000 through quarterly payments,
                    a gross amount equal to $17,500 as a non-guaranteed advance
                                                         --------------
                    against the Incentive Bonus.

8.   INDEMNI-
     FICATION:      SM&A has entered into a directors and officers
     --------
                    Indemnification Agreement with Employee, under which SM&A is
                    required to indemnify Employee against personal liability
                    for acts of SM&A, to the extent such indemnification is
                    permitted by law.

                                       13

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