Document:

TCF FINANCIAL CORPORATION

Exhibit

10(o)

 

TCF FINANCIAL CORPORATION

2002 MANAGEMENT INCENTIVE PLAN - EXECUTIVE

 

1.             Eligibility

- Each Participant shall be given a copy of this 2002 Management Incentive Plan

for Executives (the “Plan”) and required to sign an acknowledgment of its terms.  The participants in the Plan are those

approved by the Personnel Committee (the “Committee”).

 

2.             All participants

will be initially evaluated by the Chairman of TCF Financial (the  “Chairman”) who will forward all

recommendations to the Committee for approval. 

The Committee evaluates the performance of the Chairman.  The Committee will consider the diluted

Earnings per Share (“EPS”) and shall also evaluate all other matters it deems

appropriate in its sole discretion, subject to limits imposed on such

discretion under the Performance-Based Plan. 

Evaluations will be performed pursuant to the terms of the TCF

Performance-Based Compensation Policy for Covered Executive Officers (the

“Performance-Based Plan”) in the case of Covered Executive Officers (as defined

in that Plan).

 

3.             The criteria for

awards (subject to paragraph 4) is as follows: 

The amount of incentive payable to a participant shall be determined by

the achievement of EPS financial goals on Exhibit A attached.  EPS will be calculated as provided in the

Performance-Based Plan, using diluted GAAP EPS, rounded to the nearest

cent.  The bonus percentage shall be

calculated, in the case of EPS achievement which falls between goals, by

interpolation as follows:  The amount by

which the EPS achievement exceeds the goal shall be divided by the amount

between the EPS goal exceeded and the next EPS goal.  The result shall be stated in the form of a percentage which

shall be multiplied by the total bonus percentage points between EPS

goals.  The result shall be added to the

bonus percentage corresponding to the EPS goal that was exceeded.  The maximum bonus shall be 200%, even if

achievement exceeds $3.15 EPS.

 

4.             The Committee may

in its discretion, reduce, defer or eliminate the amount of the incentive

determined under paragraph 3 of this Agreement for a Covered Executive Officer

in the Performance-Based Plan.  In

addition, for participants who are not subject to the Performance-Based Plan,

the Committee may in its discretion increase the amount of the incentive

calculated under paragraph 3 of this Agreement.  The Committee has authority to make interpretations under this

Plan and to approve the calculations under Paragraph 3.  Incentive compensation will be paid in cash

as soon as possible following approval of awards by the Personnel

Committee.  Except for Covered Executive

Officers, the participant must be employed by TCF Financial (or the same

subsidiary as employed by on the date of this Acknowledgment) on the date the

incentive is paid in the same job position as the position for which the

incentive was earned in order to receive the incentive payment.  However, where the participant has

transferred to another position within TCF, the Committee may in its discretion

determine to pay part, none, or all of the incentive based on any factors the

Committee considers relevant.

 

5.             The Committee may

amend this Plan from time to time as it deems appropriate, except that any such

amendment shall be in writing and signed by both TCF Financial and the executive

and no amendment may contravene requirements of the Performance-Based

Plan.  This Plan shall not be construed

as a contract of employment, nor shall it be considered a term of employment,

nor as a binding contract to pay awards. 

The undersigned acknowledges he/she is employed “at will”.

 

6.             This Plan is

effective for service on or after January 1, 2002, and supersedes and replaces

the prior Management Incentive Compensation Plan and any other prior incentive

arrangements with respect to executives in this Plan.

 

Acknowledgment

 

I have received, read, and acknowledge the terms of the foregoing plan.

 

 

	

   

  	

   

  	

   

  
	

  Date

  	

  Signature

  

 

 

2002 EPS Goals for

Executive MIP

 

	

  EPS(1)

  	

   

  	

  $

  	

  2.80

  	

   

  	

  $

  	

  3.00

  	

   

  	

  $

  	

  3.05

  	

   

  	

  $

  	

  3.10

  	

   

  	

  $

  	

  3.15

  	

   

  
	

  % of Salary Bonus

  	

   

  	

  0

  	

  %

  	

  50

  	

  %

  	

  100

  	

  %

  	

  150

  	

  %

  	

  200

  	

  %

  

 

Maximum Bonus = 200%

Bonus percentages will be interpolated between goals.

 

(1) Diluted GAAP EPS

 

2EMPLOYMENT AGREEMENT

 

Exhibit 10.2

 

EMPLOYMENT

AGREEMENT

                THIS EMPLOYMENT AGREEMENT (the

“Agreement”) is executed this 30th day of April, 2002, by and between enherent

Corp., a Delaware corporation, with its principal place of business at 12300

Ford Rd., Suite 450, Dallas, Texas 75234 (“Employer”) and Dan S. Woodward, an

individual residing at 12223 Calico Falls Lane, Houston, TX 77041

(“Executive”).

RECITALS:

A.                                   Employer is an application

development services company.

B.                                     Executive is currently employed by

Employer as its Chairman and Chief Executive Officer and desires to continue in

those roles for the Employer subject to the conditions hereinafter set forth.

C.                                     Executive is willing to make his

services available to Employer on the terms and conditions hereinafter set

forth.

AGREEMENT:

                Therefore,

in consideration of the premises, mutual covenants and agreements of the

parties contained herein, and other good and valuable consideration, the

receipt and adequacy of which are hereby acknowledged, Employer and Executive

hereby agree as follows:

1.     Employment.  Employer hereby agrees to continue the

employment of Executive, and Executive agrees to continue in the service of

Employer, subject to the terms and conditions contained herein.

2.     Term:  Subject to earlier termination, as provided

hereafter, Executive’s employment hereunder shall be for an initial term of one

(1) year, commencing on January 1, 2002 (the “Effective Date”) and ending on

December 31, 2002; provided, however, that the term shall

automatically renew on January 1, 2003 for one (1) additional twelve month

period.  The term of this Agreement, as

it may be renewed in accordance with this Section 2, is hereafter referred to

as “the term hereof” or “the term of this Agreement”.

3.     Duties:  Executive shall be elected to the Board of

Directors of Employer (the “Board”), shall serve as the Chairman of the Board

and Chief Executive Officer of Employer and shall report to the Board.  As Chief Executive Officer of Employer,

Executive shall have the primary responsibility to manage and direct the

day-to-day business of Employer, including the generation of income and control

of expenses.  In addition, Executive

will be responsible for directing the organization with the objective of providing

maximum profit and return on invested capital; establishing current and

long-range objectives, plans, and policies, in all cases, subject to the

approval of the Board; and representing Employer with its major customers, the

financial community and the public. 

Executive shall perform such other duties as may be reasonably assigned

to 

 

 

him by

the Board.  With the consent of the

Board, Executive may (i) devote a reasonable amount of time and effort to

charitable, industry or community organizations, and (ii) subject further to

the provisions of Section 6 hereof, the Executive may serve as a director of

other companies, provided that any such positions and activities are not

in conflict, and do not otherwise interfere, in any material respect, with

Executive’s duties and responsibilities to Employer.

4.     Compensation:  During the term of this Agreement, Executive

shall be compensated as follows:

A.    Salary.  Executive shall be paid an annual salary of

three hundred eighteen thousand dollars ($318,000) (the “Annual Base Salary”),

to be paid in equal periodic semi-monthly installments according to Employer’s

customary payroll practices.  The Annual

Base Salary will be reviewed annually by the Board and increased (but not

decreased) if the Board, in its discretion, determines such an increase to be

appropriate.  Nothing contained herein

shall be construed to prevent or require Employer from increasing Executive’s

Annual Base Salary.

B.    Annual

Incentive Compensation.  Employer

will provide the Executive with an annual bonus opportunity of one hundred

thousand dollars ($100,000) (the “Achievement Bonus”) for meeting targets and

objectives to be established in a written bonus plan by the Board (the “Bonus

Plan”).  Employer will further provide

Executive with an “over achievement” bonus opportunity of fifty thousand

dollars ($50,000) for exceeding the targets and objectives assigned by the

Board and contained in the Bonus Plan.

C.    Certain

Additional Payments and Consideration. 

In addition to the above payments:

i)      Employer shall

pay Executive a cash retention bonus of fifty thousand dollars ($50,000) upon

execution of this Agreement. In addition, Employer shall pay Executive an

additional cash retention bonus of $50,000 on January 1, 2003.

ii)     Stock

Options.  Executive shall be

eligible to participate in Employer’s Incentive Stock Option Plan (“Option

Plan”).  The number of any options and

the terms and conditions of those options shall be determined in the sole

discretion of the Board or the Compensation Committee of the Board.

iii)    Change of Control. 

Notwithstanding any other provision of the Option Plan to the contrary,

upon the occurrence of a Change in Control (as defined below), any

unexercisable options issued to Executive pursuant to the Option Plan prior to

the Change in Control shall become immediately exercisable in full; provided,

however, that, at the election of the Board or the Compensation

Committee of the Board, any such options may instead be cancelled, in exchange

for which, Employer shall pay Executive a cash payment or a replacement award

of equivalent value.  Furthermore, if a

Change in Control occurs as a result of one of the events specified in (a),

(c), (d) or (e) of subsection (iv) below and any unexercised options are to be

exchanged for a replacement award or 

 

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are to be cancelled in exchange for a cash payment in

connection with such Change in Control, and (i) the value of such replacement

award or the amount of such cash payment is less than (ii) 4% of the difference

between (a) the total consideration paid to stockholders of Employer in

connection with such Change in Control, less (b) the redemption value of the

then outstanding Series A Senior Participating Convertible Preferred Stock of

Employer issued pursuant to that certain Securities Purchase Agreement, dated

as of April 14, 2000, Executive shall be entitled to receive an additional cash

payment equal to the amount by which the amount referred to in (ii) exceeds the

amount referred to in (i).

iv)           For

purposes of this Agreement, a “Change in Control” of Employer shall occur upon

any of the following:

a)     any “person” as

such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of

1934 (other than (1) Employer or any of its subsidiaries, (2) any trustee or

other fiduciary holding securities under an employee benefit plan of Employer

or (3) any corporation owned, directly or indirectly, by the stockholders of

Employer in substantially the same proportions as their ownership of the common

stock of Employer), becomes the “beneficial owner” (as defined in Rule 13d-3

under the Securities Exchange Act of 1934), directly or indirectly, of

securities of Employer (not including in the securities beneficially owned by

such person any securities acquired directly from Employer or its affiliates)

representing fifty-one percent (51%) or more of the combined voting power of

Employer’s then outstanding voting securities;

b)    during any

period of not more than two (2) consecutive years, individuals who at the

beginning of such period constitute the Board (such board of directors being

referred to herein as the “Original Board”), together with any new director

whose election by the Original Board or nomination for election by Employer’s

stockholders was approved by a vote of at least two-thirds (2/3) of the

directors then still in office who either were directors at the beginning of

the period or whose election or nomination for election was previously so

approved (other than approval given in connection with an actual or threatened

proxy or election contest), cease for any reason to constitute at least seventy

percent (70%) of such Original Board;

c)     the

stockholders of Employer approve a merger or consolidation of Employer with any

other corporation, other than (A) a merger or consolidation which would result

in the voting securities of Employer outstanding immediately prior thereto

continuing to represent (either by remaining outstanding without conversion or

by being converted into voting securities of the surviving or parent entity)

fifty-one percent (51%) or more of the combined voting power of the voting

securities of Employer or such surviving or parent entity outstanding

immediately after such merger or consolidation or (B) a merger or consolidation

effected to implement a recapitalization of Employer (or similar transaction)

in which no “person” acquires fifty-one percent (51%) or more of the combined

voting power of Employer’s then outstanding securities;

d)    the

stockholders of Employer approve a plan of complete liquidation of Employer;

 

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e)     there

occurs a closing of a sale or other disposition by Employer of all or

substantially all of Employer’s assets; or

f)     Employer ceases

to have a class of stock registered with the Securities and Exchange Commission

under the Securities Act of 1933, as amended, or the Securities Exchange of

1934, as amended and following such cessation of registration, Executive is no

longer employed as the chief executive officer of Employer.

5.     Expense Reimbursement and Other

Benefits.

A.    Reimbursement

of Expenses.  During the term of

this Agreement, without duplication of the reimbursement provided in Section 5A

hereof, Employer shall reimburse Executive for all reasonable business expenses

incurred by him in the performance of his duties and responsibilities, subject

to such reasonable requirements with respect to substantiation and

documentation as may be specified by Employer.

B.    Employee

Benefits.  During the term of this

Agreement, Executive shall be entitled to participate in all employee benefit

programs of Employer to the same extent that other senior executive officers of

Employer are entitled to participate.

C.    Housing and

Travel Allowance.  During the term

of this Agreement, Employer shall provide reimbursement to Executive of up to

fifty thousand dollars ($50,000) per year for all reasonable and documented

costs associated with Executive’s travel to, and from, his residence, local

housing, automobile costs and other costs directly related to Executive’s

housing or travel.

D.    Vacation.  During the term of this Agreement, Executive

will be entitled to four (4) weeks paid vacation for each year.  Executive will also be entitled to the paid

holidays and other paid leave set forth in Employer’s employment policies, a

copy of which has previously been provided to Executive.  Vacation days and holidays during any fiscal

year that are not used by Executive during such fiscal year may not be carried

over and used in any subsequent fiscal year. 

Executive will begin to accrue personal days on the first day of the

month following date of employment at the rate of 1.67 days per month.

E.     Retirement

Plan.  Executive will be eligible to

participate in Employer’s 401(k) Savings Plan as of the first day of the month

coinciding with, or following, three (3) months employment with Employer,

subject to the terms thereof.

6.     Restrictions

A.    Non-competition.  During the term of this Agreement and for a

two (2) year period after expiration or any termination of term of this

Agreement, Executive shall not directly or indirectly, either as a principal,

agent, employee, employer, stockholder, partner or in any other capacity

whatsoever (i) engage in whole or in part, in any business in competition with

the business of Employer or any of its subsidiaries or (ii) become associated

with, employed by, enter into a business relationship with, or become a

stockholder or other equity holder of, any client of Employer who was a client

of 

 

4

 

Employer for at least twelve (12) months prior to

Executives departure; provided that the restriction contained in

subclause (ii) of this Section 6A shall not apply to Executive’s ownership of

or the acquisition by Executive, solely as an investment, of securities of any

issuer that are registered under Section 12(b) or 12(g) of the Exchange Act and

that are listed or admitted for trading on any United States national

securities exchange or that are quoted on the NASDAQ Stock Market, or any similar

system or automated dissemination of quotations of securities prices in common

use, so long as Executive does not control, acquire a controlling interest in

or become a member of a group which exercises direct or indirect control of

more than fifty percent (50%) of any class of capital stock of such

corporation.

B.    Nondisclosure.  During the term of this Agreement and for a

two (2) year period after the expiration or any termination of the term of this

Agreement, Executive shall not at any time disclose, divulge, communicate, use

to the detriment of Employer or for the benefit of any other person or persons,

or misuse in any way, any Confidential Information (as hereinafter

defined).  Any Confidential Information

or data now or hereafter acquired by the Executive relating to the business of

Employer (which shall include, but not be limited to, information concerning

Employer’s financial condition, prospects, technology, customers, suppliers,

sources of leads and methods of doing business) shall be deemed a valuable,

special and unique asset of Employer that is received by Executive in

confidence and as a fiduciary, and Executive shall remain a fiduciary to

Employer with respect to all such information. 

For purposes of this Agreement, “Confidential Information” means all

information disclosed to Executive or known by Executive as a consequence of,

or through, his employment by Employer (including information conceived,

originated, discovered or developed by Executive) prior to or after the date

hereof, and not generally known to the public about Employer or its

businesses.  Notwithstanding the

foregoing, nothing herein shall be deemed to restrict Executive from disclosing

Confidential Information that Executive clearly demonstrates was or became

generally available to the public other than as a result of disclosure by the

Executive or by any other person known by Executive to have a duty of

confidentiality to the Employer.

C.    Nonsolicitation

of Employees and Clients.  During

the term of this Agreement and for a two (2) year period after the expiration

or any termination of the term of this Agreement, Executive shall not directly

or indirectly, for himself or for any other person, firm, corporation,

partnership, association or other entity, (i) solicit for employment or attempt

to employ or enter into any contractual arrangement with any employee or former

employee or independent contractor of Employer or any of its subsidiaries,

unless such employee or former employee or former independent contractor, has not

been employed by Employer for a period in excess of six months prior to such

expiration or termination date, or unless Executive shall obtain the approval

of Employer, (ii) solicit or encourage any client of Employer or its

subsidiaries to terminate or diminish substantially its relationship with

Employer or any of its subsidiaries, and/or (iii) make known the names and

addresses of Employer’s clients or customers, unless such information does not

constitute Confidential Information hereunder.

 

5

 

D.    Ownership

of Developments.  All copyrights,

patents, trade secrets, or other intellectual property rights associated with

any ideas, concepts, techniques, inventions, processes, or works of authorship

developed or created by Executive during the course of performing work for

Employer or its customers (collectively, the “Work Product”) shall belong

exclusively to Employer and shall, to the extent possible, be considered a work

made by the Executive for hire for Employer within the meaning of Title 17 of

the United States Code.  To the extent

the Work Product may not be considered work made by Executive for hire for

Employer, Executive agrees to assign, and automatically assign at the time of

creation of the Work Product, without any requirement of further consideration,

any right, title, or interest that Executive may have in such Work

Product.  Upon the request of Employer,

Executive shall take such further actions, including execution and delivery of

instruments of conveyance, as may be appropriate to give full and proper effect

to such assignment.

E.     Books and

Records.  All books, records, and

accounts relating in any manner to the clients and customers of Employer,

whether prepared by Executive or otherwise coming into Executive’s possession,

shall be the exclusive property of Employer and shall be returned immediately

to Employer on termination of Executive’s employment hereunder or on Employer’s

request at any time.

F.     Acknowledgment

by Executive.  Executive acknowledges

and confirms that (i) the restrictive covenants contained in this Section 6 are

reasonably necessary to protect the legitimate business interests of Employer,

and (ii) the restrictions contained in this Section 6 (including without

limitation the length of the term of the provisions of this Section 6) are not

over broad, over long, or unfair and are not the result of overreaching, duress

or coercion of any kind.  Executive

further acknowledges and confirms that his full, uninhibited and faithful observance

of each of the covenants contained in this Section 6 will not cause him any

undue hardship, financial or otherwise, and that enforcement of each of the

covenants contained herein will not impair his ability to obtain employment

commensurate with his abilities and on terms fully acceptable to him or

otherwise to obtain income required for the comfortable support of him and his

family and the satisfaction of the needs of his creditors.  Executive acknowledges and confirms that his

special knowledge of the business of Employer is such as would cause Employer

serious injury or loss if he were to use such ability and knowledge for the

benefit of a competitor or were to compete with Employer in violation of the

terms of this Section 6.  Executive

further acknowledges that the restrictions contained in this Section 6 are

intended to be, and shall be, for the benefit of and shall be enforceable by,

Employer’s successors and assigns. 

Executive therefore agrees that, in addition to any other remedies

available to it, Employer shall be entitled to obtain preliminary and permanent

injunctive relief against any breach of this Section 6, without having to post

bond.

G.    Reformation

by Court.  In the event that a court

of competent jurisdiction shall determine that any provision of this Section 6

is invalid or more restrictive than permitted under the governing law of such

jurisdiction, then only as to enforcement of this Section 6 within the

jurisdiction of such court, such provision shall be interpreted and enforced as

if it provided for the maximum restriction permitted under such governing law.

 

6

 

H.    Extension

of Time.  If Executive shall be in

violation of any provision of this Section 6 then each time limitation set

forth in this Section 6 shall be extended for a period of time equal to the

period of time during which such violation or violations occur.  If Employer seeks injunctive relief from

such violation in any court, then the covenants set forth in this Section 6

shall be extended for a period of time equal to the pendency of such proceeding

including all appeals by Executive.

I.      Survival.  The provisions of this Section 6 shall

survive the termination of this Agreement.

7.     Disability

or Death.  If, during the term of

this Agreement, Executive dies or is unable to perform his services by reason

of illness or incapacity, for a period of sixty (60) consecutive days or three

(3) months out of any six (6) month period (such inability to perform referred

to herein, as a “Disability”), Employer may, at its option, upon written notice

to Executive, terminate the Executive’s employment hereunder.  In such event, Executive or his estate, in

the event of the death of Executive, shall be entitled to receive his current Annual

Base Salary for the shorter of (a) one (1) year following the date of death or

Disability, and (b) the remainder of the term of this Agreement, in either

case, payable during such period in accordance with Employer’s then current

payroll practices.  Employer shall also

continue to pay the premiums for the same or substantially similar welfare

benefits for such period.  In the event

that such entitlement is not allowed by law, Executive or Executive’s estate

shall be entitled to the cash equivalent of that benefit.  Other than as set forth above, Employer

shall have no further liability hereunder to Executive upon a termination

pursuant to this Section 7.

8.     Termination

for Cause.

Employer

shall have the right to terminate Executive’s employment hereunder for Cause

(as defined below).  Upon any

termination pursuant to this Section 8, Employer shall pay to Executive any

unpaid Annual Base Salary through the effective date of termination specified

in such notice.  Employer shall have no

further liability hereunder (other than for reimbursement for reasonable

business, housing and travel expenses incurred prior to the date of termination

in accordance with Section 5A).  For

purposes hereof, the term “Cause” shall mean (a) Executive’s material breach of

this Agreement, (b) Executive’s conviction of a felony, (c) Executive’s

personal dishonesty directly affecting Employer, (d) Executive’s willful

misconduct or gross negligence in the performance of Executive’s duties

hereunder (which shall require prior written notice to Executive from the Board

unless not curable or such misconduct is materially injurious to Employer) or

(e) breach of a fiduciary duty involving personal profit to Executive.

9.     Termination

Without Cause.

A.    At

any time, Employer shall have the right to terminate Executive’s employment

hereunder by written notice to Executive. 

Any  demotion resulting in

a material adverse change in the duties, responsibilities or role, or reporting

relationships of Employee, including upon a Change in Control, shall be treated

as a termination without cause of the Executive.  Upon any termination pursuant to this Section 9 (that is not a 

 

7

 

termination under any of Sections 7, 8, or 10), Employer

shall pay to Executive (i) his current Annual Base Salary for the shorter of

(a) one (1) year, and (b) the remainder of the term of this Agreement, (ii) any

earned performance bonus prorated as of the date of termination, and (iii) the

retention bonus required to be paid pursuant to the second sentence of Section

4C(i), if such termination occurs prior to January 1, 2003.  Executive shall receive payment of such

termination amount in equal installments for the shorter of (a) one (1) year,

and (ii) the remainder of the term of this Agreement, in accordance with

Employer’s then current payroll practices; provided, however,

that if such termination occurs following a Change in Control, Executive shall

be entitled to elect to receive such termination amount in a single lump sum .  Employer shall also continue to pay the

premiums for the same or substantially similar welfare benefits for the shorter

of (a) one (1) year, and (ii) the remainder of the term of this Agreement.  In the event such entitlement is not allowed

by law, Executive shall be entitled to the cash equivalent of that benefit.

B.    In the event of

a termination pursuant to Section 9A hereof, all stock options previously

granted to Executive under the Option Plan shall continue to be exercisable in

accordance with the original vesting schedule with respect to such option

grants.

                C.    Other than as set forth above, Employer shall have no further

liability hereunder (other than for reimbursement for reasonable business,

housing and travel expenses incurred prior to the date of termination in

accordance with Section 5A) to Executive upon a termination pursuant to this

Section 9.

10.   Termination

by Executive.

A.    Executive shall

at all times have the right upon thirty (30) days prior written notice to

Employer, to terminate his employment hereunder.

B.    Upon any

termination pursuant to this Section 10 by Executive without “Good Reason” (as

defined below), Employer shall pay to Executive any unpaid Annual Base Salary

through the effective date of termination specified in such notice.  Employer shall have no further liability

hereunder (other than for reimbursement for reasonable business, housing and

travel expenses incurred prior to the date of termination in accordance with

Section 5A) to Executive upon a termination pursuant to this Section 10B.

C.    Upon any

termination pursuant to this Section 10 by Executive for “Good Reason”,

Employer shall pay to Executive the same amounts that would have been payable

by Employer to Executive under, and in the same manner provided by, Section 9

of this Agreement (including the election of the Executive to receive such

payment in a single lump sum) as if Executive’s employment had been terminated

by Employer without Cause.  Employer

shall have no further liability hereunder (other than for reimbursement for

reasonable business, housing and travel expenses incurred prior to the date of

termination in accordance with Section 5A) to Executive upon a termination

pursuant to this Section 10C.

D.    For

purposes of this Agreement, “Good Reason” shall mean:

 

8

 

i)      the

assignment to Executive of any duties inconsistent in any material respect with

Executive’s position (including status, offices, titles and reporting

requirements), authority, duties or responsibilities as contemplated by Section

3 of this Agreement, or any other action by Employer which results in a

material diminution in such position, authority, duties or responsibilities,

excluding for this purpose an isolated, insubstantial and inadvertent action

not taken in bad faith and which is remedied by Employer promptly after receipt

of notice thereof given by the Executive.

ii)     any

failure by Employer to comply with any of the material provisions of Section 4

of this Agreement, other than an isolated, insubstantial and inadvertent

failure not occurring in bad faith and which is remedied by Employer promptly

after receipt of notice thereof given by Executive; or

iii)    in the event that (A) a Change in Control (as defined in Section

4 hereof) shall occur during the term of this Agreement, and (B) prior to the

earlier of the expiration of the term of this Agreement and six (6) months

after the date of the Change in Control, Executive’s employment is terminated

by Employer or any successor thereto without Cause.

11.   Taxes.  All payments made to Executive under this

Agreement shall be reduced by any tax or other amount required to be withheld

by Employer under applicable law.

12.   Reductions.  Notwithstanding anything to the contrary

contained in this Agreement, (a) any and all payments and benefits to be

provided to Executive hereunder are subject to reduction to the extent required

by applicable statutes, regulations, rules and directives of federal, state and

other governmental and regulatory bodies having jurisdiction over Employer, and

(b) the payments and benefits to which Executive would be entitled as a result

of a Change of Control shall be reduced to the maximum amount for which

Employer will not be limited in its deduction pursuant to Section 28OG of the

Internal Revenue Code of 1986, as amended, or any successor provision.  Any such reduction shall be applied to the

amounts due to Executive in such manner as Executive may reasonably specify

within thirty (30) days following notice from Employer of the need for such

reduction or, if Executive fails to so specify timely, as determined by

Employer.

13.   Waivers.  It is understood that either party may waive

the strict performance of any covenant or agreement made herein; however, any

waiver made by a party hereto must be duly made in writing in order to be

considered a waiver, and the waiver of one covenant or agreement shall not be

considered a waiver of any other covenant or agreement unless specifically

stated in writing as aforementioned.

14.   Savings

Provisions.  The invalidity, in

whole or in part, of any covenant or restriction, or any section, subsection,

sentence, clause, phrase or word, or other provisions of this Agreement, as the

same may be amended from time to time shall not affect the validity of the

remaining portions thereof.

 

9

 

15.   Governing

Law.  This Agreement shall be

construed in accordance with and governed by the laws of the State of Texas

without giving effect to its choice of law provision.

16.   Notices.  If either party desires to give notice to

the other in connection with any of the terms and provisions of this Agreement,

said notice must be in writing and shall be deemed given when (a) delivered by

hand (with written confirmation of receipt); (b) sent by facsimile (with

written confirmation of receipt), provided that a copy is mailed by registered

mail, return receipt requested, or (c) when received by the addressee, if sent

by a nationally recognized overnight delivery service) receipt requested), in

each case addressed to the party for whom it is intended as follows (or such

other addresses as either party may designate by notice to the other party, at

the Parent Employer’s or Employer’s then principal executive offices):

	

  If to Employer:

  	

   

  	

  enherent Corp.

  
	

   

  	

   

  	

  12300 Ford Rd., Suite 450

  
	

   

  	

   

  	

  Dallas, Texas 75234

  
	

   

  	

   

  	

  Attention: EVP Human Resources

  
	

   

  	

   

  	

   

  
	

  With a copy to:

  	

   

  	

  enherent Corp.

  
	

   

  	

   

  	

  12300 Ford Rd., Suite 450

  
	

   

  	

   

  	

  Dallas, Texas 75234

  
	

   

  	

   

  	

  Attention: Corporate Counsel

  
	

   

  	

   

  	

   

  
	

  If to Executive:

  	

   

  	

  At the most recent home address

  of

  
	

   

  	

   

  	

  Executive on the official records

  of

  
	

   

  	

   

  	

  Employer.

  

17.   Default.  In the event either party defaults in the

performance of its obligations under this Agreement, the non-defaulting party

may, after giving 30 days’ notice to the defaulting party to provide a

reasonable opportunity to cure such default, proceed to protect its rights by

suit in equity or an action at law.

18.   No Third

Party Beneficiary.  Nothing

expressed or implied in this Agreement is intended, or shall be construed, to

confer upon or give any person other than Employer, the parties hereto and

their respective heirs, personal representatives, legal representatives,

successors and assigns, any rights or remedies under or by reason of this

Agreement.

19.   Successors.  This Agreement shall inure to the benefit of

and be binding upon the Executive and the Executive’s assigns, heirs,

representatives or estate.

 

 

10

 

                IN

WITNESS WHEREOF, by its appropriate officer, signed this Agreement and

Executive has signed this Agreement, as of the day and year first above

written.

 

 

	

  AGREED TO BY:

  	

   

  	

  AGREED TO BY

  
	

   

  	

   

  	

   

  
	

  Executive:

  	

   

  	

  enherent Corp.:

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  /s/ Dan S. Woodward

  	

   

  	

  /s/ Jack D. Mullinax

  
	

  Dan S. Woodward

  	

   

  	

  Jack D. Mullinax 

  
	

   

  	

   

  	

  Title: 

  	

  EVP Corporate Services

  
	

   

  	

   

  	

   

  	

   

  
	

  Date: 

  	

  4/30/02

  	

   

  	

  Date: 

  	

  4/30/02

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Compensation Committee:

  
	

   

  	

   

  	

  /s/ Irwin Sitkin

  
	

   

  	

   

  	

  Irwin Sitkin

  
	

   

  	

   

  	

  Chairman, Compensation Committee

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Date:

  	

  5/2/02

  
							

 

 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]