Document:

Exhibit 4.1

 

EXHIBIT 4.1

THIRD AMENDMENT TO RIGHTS AGREEMENT

          THIS THIRD AMENDMENT TO RIGHTS AGREEMENT (this “Amendment”) is entered into as of October ___,
2006 between Gen-Probe Incorporated, a Delaware corporation (the “Company”), and Mellon Investor
Services LLC, a New Jersey limited liability company, as Rights Agent (the “Rights Agent”).
Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in
the Rights Agreement (as defined below).

          WHEREAS, the Company and the Rights Agent previously entered into the Rights Agreement dated
as of September 16, 2002 between the Company and the Rights Agent (the “Rights Agreement”), which
was amended on October 9, 2002 and again on November 20, 2003; and

          WHEREAS, pursuant to Section 26 of the Rights Agreement, the Company and the Rights Agent may
from time to time supplement or amend any provision of the Rights Agreement in accordance with the
terms of such Section 26.

          NOW, THEREFORE, in consideration of the foregoing promises and mutual agreements set forth in
this Amendment, the parties hereby amend the Rights Agreement as follows:

          1. Amendment to Section 7.1. Section 7.1 of the Rights Agreement is hereby deleted
in its entirety and replaced with the following:

7.1 Exercise of Rights. Subject to Section 11.1.2 and except as otherwise provided
herein, the registered holder of any Right Certificate may exercise the Rights
evidenced thereby in whole or in part at any time after the Distribution Date upon
surrender of the Right Certificate, with the form of election to purchase and
certification on the reverse side thereof duly executed, to the Rights Agent at the
office of the Rights Agent designated for such purpose, together with payment of
the aggregate Purchase Price for the total number of one one-hundredths of a
Preferred Share (or other securities, cash or other assets) as to which the Rights
are exercised, at or prior to the time (the “Expiration Date”) that is the earliest
of (i) the Close of Business on November 30, 2006 (the “Final Expiration Date”),
(ii) the time at which the Rights are redeemed as provided in Section 23 (the
“Redemption Date”), (iii) the closing of any merger or other acquisition
transaction involving the Company pursuant to an agreement of the type described in
Section 13.3 at which time the Rights are deemed terminated, or (iv) the time at
which the Rights are exchanged as provided in Section 27.

          2. Amendment of Exhibits. The Exhibits to the Rights Agreement shall be amended to
reflect the change in the Final Expiration Date from September 12, 2012 to November 30, 2006,
including all conforming changes.

          3. Effectiveness. This Amendment shall be deemed effective as of the date first
written above, as if executed on such date.

          4. Governing Law. This Amendment shall be deemed to be a contract under the laws of
the State of Delaware and for all purposes shall be governed by and construed in accordance with
the laws of such state applicable to contracts to be made and performed entirely within such state.

          5. Severability. If any provision, covenant or restriction of this Amendment is held
by a court of competent jurisdiction or other authority to be invalid, illegal or unenforceable,
the remainder of the terms, provisions, covenants and restrictions of this Amendment shall remain
in full force and effect and shall in no way be effected, impaired or invalidated.

          6. Counterparts. This Amendment may be executed in any number of counterparts and each
of such counterparts shall for all purposes be deemed to be an original, and all such counterparts
together constitute but one and the same original.

          7. Construction. On and after the date hereof, each reference in the Rights
Agreement to the “Agreement” shall mean the Rights Agreement as amended hereby. Except as
specifically amended above, the Rights Agreement shall remain in full force and effect and is
hereby ratified and confirmed. The execution, delivery and effectiveness of this Amendment shall
not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any
party hereto, nor constitute a waiver of any provision of the Rights Agreement.

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed, as of
the date first set forth above.

	 	 	 	 	 
	 	GEN-PROBE INCORPORATED

 	 
	 	By:  	 	 
	 	 	Name:  	R. William Bowen 	 
	 	 	Title:  	Vice President and General Counsel 	 
	 
	 	MELLON INVESTOR SERVICES LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:Exhibit 10.1 Letter Agreement

    EXHIBIT
      10.1

     

     

    

     

     

     

    

    September
      28, 2006

    

     

    

    Mr.
      J.W.
      Braukman III

    520
      N.W.
      7th
      Street

    Delray
      Beach, FL 33444

    

    Dear
      Mr.
      Braukman ,

    

    
      	
              1.

            	
              General.
                Effective September 28, 2006, MTM Technologies, Inc. (the “Company”)
                hereby employs you (the “Executive”), and the Executive accepts employment
                by the Company as Senior Vice President and Chief Financial Officer
                of the
                Company.  The Executive shall be employed by the Company on an
                “at-will” basis and the Company and the Executive shall have the right to
                terminate this Letter Agreement (“Agreement”) at any time upon thirty (30)
                days written notice to the other party.

            

    

    

    
      	
              2.

            	
              Duties
                and Status.
                During the period that the Executive is employed by the Company (the
                “Employment Period”), the Executive shall report directly to the Chief
                Executive Officer of the Company and exercise such authority, perform
                such
                executive duties and functions and discharge such executive
                responsibilities as are reasonably associated with the Executive’s
                position, consistent with the responsibilities assigned to officers
                of
                companies comparable to the Company, commensurate with the authority
                vested in the Executive pursuant to this Agreement and consistent
                with the
                By-laws of the Company.  The Executive will render such business and
                professional services in the performance of his duties, consistent
                with
                the Executive’s position within the Company, as shall reasonably be
                assigned to him by the Chief Executive Officer of the Company. 
                During the Employment Period, the Executive shall devote substantially
                all
                of his business time and his full skill and efforts to the business
                of the
                Company. 

            

    

    

    
      	
              3.

            	
              Compensation;
                Benefits and Expenses .
                

            

    

    

    
      	 	
              a.

            	
              Salary. 
                During the Employment Period, the Company shall pay to the Executive,
                as
                compensation for the performance of his duties and obligations under
                this
                Agreement, a base salary at the rate of $260,000 per annum, payable
                in
                arrears not less frequently than monthly in accordance with the normal
                payroll practices of the Company.  The Executive’s base salary shall
                be subject to review each year for possible increase by the Board
                in its
                sole discretion, but in no event shall such base salary be decreased
                from
                its then existing level during the Employment Period.
                

            

    

    
      	 	
              b.

            	
              Bonus. 
                In addition to the base salary payable to the Executive hereunder,
                the
                Executive also shall be entitled to receive additional compensation,
                at
                such times and in such amounts, as shall be determined in the sole
                discretion of the Board and the Compensation Committee thereof, consistent
                with the management bonus plan of the Company in
                effect

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	from time to time for senior executives, if
              any.

      	 	
              c.

            	
              Stock
                Options. 
                Subject to the approval of the Board and the Compensation Committee
                thereof, the Executive shall be entitled to receive awards under
                any stock
                option or equity based incentive compensation plan or arrangement
                adopted
                by the Company during the Employment Period for which senior executives
                are eligible.  The level of the Executive’s participation in any such
                plan or arrangement shall be determined in the sole discretion of
                the
                Board and the Compensation Committee thereof.

            

    

    
      	 	
              d.

            	
              Paid
                Time Off. 
                The Executive shall be entitled to twenty-two (22) days paid time
                off per
                calendar year; provided, however,
                that no more than ten (10) days of such paid time off may be used
                consecutively, and provided,
                further,
                that any accrued but unused paid time off remaining at the end of
                each
                calendar year shall be forfeited. The foregoing shall accrue at a
                rate of
                1.83 days per month beginning sixty (60) days after your first day
                of
                active service with the Company.

            

    

    
      	 	
              e.

            	
              Other
                Benefits. 
                During the Employment Period, the Executive shall be entitled to
                participate in all of the employee benefit plans, programs and
                arrangements of the Company in effect during the Employment Period
                which
                are generally available to the most senior executives of the Company
                (including, without limitation, 401(k) and group medical insurance
                plans),
                subject to and on a basis consistent with the terms, conditions and
                overall administration of such plans, programs and arrangements.
                

            

    

    
      	 	
              f.

            	
              Expenses. 
                In addition to any amounts payable to the Executive pursuant to this
                Section 3, the Company shall reimburse the Executive upon production
                of accounts and vouchers or other reasonable evidence of payment
                by the
                Executive, all in accordance with the Company’s regular procedures in
                effect from time to time, all reasonable and ordinary expenses as
                shall
                have been incurred by him in the performance of his duties hereunder.
                

            

      	 	g. 	Relocation
              Allowances.
              The Company shall pay to the Executive, or to a third party on the
              Executive’s behalf as agreed by the Company and the Executive, the
              following amounts related to the commencement of the Executive’s
              employment with the Company: (i) $19,500, such amount to be paid within
              thirty (30) days of the sale of the Executive’s Cincinnati residence, and
              (ii) $50,000, such amount being related to certain reimbursement
              obligations of Executive and relocation expenses incurred by Executive
              and
              to be paid from time to time a reasonably agreed by the Executive and
              the
              Company. Amounts payable under the subparagraph (g) will be grossed
              up for
              taxes. In addition to the foregoing payments, the Company will reimburse
              the Executive for reasonable and necessary commuting and temporary
              living
              expenses related to the transition of the Executive to the Company’s
              Stamford, Connecticut headquarters. The Executive and the Company will
              work to structure all payments under this subparagraph (g) as necessary
              to
              minimize the impact of Federal and state
              taxes.

    

     

    
      	
              4.

            	
              Termination
                Without Cause or for Good Reason. 
                Notwithstanding any other term of this Agreement, in the event of
                a
                termination of the Executive’s employment on or before the fourth
                (4th)
                anniversary date of this Agreement (x) by the Company other than
                for
                “cause” (as defined in Section 4(d) hereof) or (y) by the Executive
                for “good reason” (as defined in Section 4(e) hereof) or (z) as a
                result of death or Permanent and Total Disability (as defined in
                Section 4(g) hereof), in each case the Company shall provide to the
                Executive (or his legal representative)  (i) the rights, payments and
                benefits payable at such times as set forth herein, and (ii) a release
                and
                waiver of claims in favor of the Executive, substantially in the
                form
                attached hereto as Exhibit
                A,
                as

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                 

              	
                consideration
                  for the execution and non-revocation by the Executive of a release
                  agreement in favor of the Company and its shareholders and their
                  respective directors, officers and employees, substantially in
                  the form
                  attached hereto as Exhibit
                  B:

              

      

       

    

    
      	 	
              a.

            	
              Salary. 
                A continuance of his salary at one hundred percent (100%) of his
                then
                current base salary, as a severance payment, for a period equal to
                one (1)
                year from the date of termination of the Executive’s employment (the
                “Severance Period”).  Any payments pursuant to this Section 4(a)
                shall be in lieu of any other severance benefits to which the Executive
                is
                entitled pursuant to any other severance plans, programs, arrangements,
                or
                policies of the Company. 

            

    

    
      	 	
              b.

            	
              Options. 
                The impact of the Executive’s termination of employment on the stock
                options held by the Executive shall be governed by the applicable
                stock
                option plan and agreement. 

            

    

    
      	 	
              c.

            	
              Other
                Benefits.
                During the Severance Period, the Executive will be entitled to a
                continuance of coverage under all health, life, disability and similar
                employee benefit plans and programs of the Company on the same basis
                as
                the Executive was entitled to participate immediately prior to the
                Severance Period, provided that the Executive’s continued participation is
                possible under the general terms and provisions of such plans and
                programs.  In the event that the Executive’s participation in any
                such plan or program is barred for any reason, the Company shall
                arrange
                to provide the Executive with benefits substantially similar to those
                which the Executive would otherwise have been entitled to receive
                under
                such plans and programs from which his continued participation is
                barred;
                provided,
                however,
                that the aggregate cost of providing benefits to the Executive pursuant
                to
                this Section 4(c) shall not be materially increased as a result of
                providing such alternative coverage.  In the event that the Executive
                is covered under substitute benefit plans of another employer prior
                to the
                expiration of the Severance Period, the Company will no longer be
                obligated to continue the respective coverage’s provided for in this
                Section 4(c). 

            

    

    
      	 	
              d.

            	
              Cause.
                For purposes of this Agreement and subject to the Executive’s opportunity
                to cure as provided in Section 4(f) hereof, the Company shall have
                “cause” to terminate the Executive’s employment hereunder if such
                termination shall be the result of:

            

    

    
      	 	
              i.

            	
              the
                Executive’s failure to comply in any material manner with the reasonable
                policies and rules of the Company or the directives of the Board;
                or
                

            

    

    
      	 	
              ii.

            	
              the
                Executive’s performance of any material act of fraud or dishonesty in
                connection with the performance of his duties hereunder;
                or

            

    

    
      	 	
              iii.

            	
              the
                Executive’s gross negligence or willful misconduct in the performance of
                his duties hereunder; or

            

    

    
      	 	
              iv.

            	
              the
                Executive’s conviction for, or plea of nolo
                contendere
                to, a felony or misdemeanor resulting in a jail sentence or any crime
                involving moral turpitude; or 

            

    

    
      	 	
              v.

            	
              any
                material breach by the Executive of the obligations set forth below
                in
                Section 10. 

            

    

    
      	 	
              e.

            	
              Good
                Reason.
                For purposes of this Agreement and subject to the Company’s opportunity to
                cure as provided in Section 4(f) hereof, the Executive shall have
                “good reason” to terminate his employment hereunder if such termination
                shall be the result of a reduction by the Company of the Executive’s base
                salary. 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              f.

            	
              Cure
                Rights.
                Notwithstanding the provisions of Sections 4(d) and 4(e) hereof,
                it shall
                be a condition precedent to the Company’s right to terminate the
                Executive’s employment for “cause” and the Executive’s right to terminate
                his employment for “good reason” that (1) the party seeking the
                termination shall first have given the other party written notice
                stating
                with reasonable specificity the reason for the termination (“breach”) and
                (2) if such breach is susceptible of cure or remedy, a period of
                thirty
                (30) days from and after the giving of such notice shall have elapsed
                without the breaching party having effectively cured or remedied
                such
                breach during such 30-day period, unless such breach cannot be cured
                or
                remedied within thirty (30) days, in which case the period for remedy
                or
                cure shall be extended for a reasonable time (not to exceed an additional
                thirty (30) days) provided the breaching party has made and continues
                to
                make a diligent effort to effect such remedy or cure. 
                Notwithstanding anything to the contrary contained herein, the right
                to
                cure set forth in this Section 4(f) shall not apply if there are
                habitual or repeated breaches by either party.

            

    

    
      	 	
              g.

            	
              Permanent
                and Total Disability.
                The Employment Period shall be terminated by the death of the Executive.
                The Employment Period may be terminated by the Board if the Executive
                shall be rendered incapable of performing his duties to the Company
                by
                reason of any medically determined physical or mental impairment
                for a
                period of either (i) six (6) or
                more consecutive months from the first date of the Executive’s absence due
                to the disability or (ii) nine (9) months during any eighteen
                (18) month
                period (a “Permanent and Total Disability”). If the Employment Period is
                terminated by reason of Permanent and Total Disability of the Executive,
                the Company shall give thirty (30) days’ advance written notice to that
                effect to the Executive. Until the effective date of the termination
                as a
                result of a Permanent and Total Disability, the Company shall continue
                to
                pay to the Executive the compensation set forth in Section 3 hereof;
                provided,
                however,
                that to the extent that the Executive receives payments pursuant
                to any
                disability insurance policy for which the Company pays the premium,
                the
                Company may deduct the amounts received by the Executive pursuant
                to that
                policy from the compensation payable to
                him.

            

    

     

    
      	
              5.

            	
              Other
                Termination of Employment. 
                In the event that the Executive’s employment with the Company is
                terminated during the Employment Period by the Company for “cause”, or by
                the Executive other than for “good reason”, the Company shall pay the
                Executive (or his legal representative) any earned but unpaid salary
                amounts and any un-reimbursed expenses through the Executive’s final date
                of employment with the Company, and the Company shall have no further
                obligations to the Executive, except under the plans, programs and
                arrangements described in Section 3(e) hereof in accordance with the
                terms of such plans. 

            

    

    

    
      	
              6.

            	
              Withholding
                of Taxes. 
                All payments required to be made by the Company to the Executive
                under
                this Agreement shall be subject to the withholding of such amounts,
                if
                any, relating to tax, excise tax and other payroll deductions as
                the
                Company may reasonably determine it should withhold pursuant to any
                applicable law or regulation. 

            

    

     

    
      	
              7.

            	
              No
                Other Obligations. 
                The benefits payable to the Executive under this Agreement are not
                in lieu
                of any benefits payable under any employee benefit plan, program
                or
                arrangement of the Company, except as provided specifically herein,
                and
                upon termination, the Executive will receive such benefits or payments,
                if
                any, as he may be entitled to receive pursuant to the terms of such
                plans,

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	programs
              and arrangements.  Except for the obligations of the Company provided
              by this Agreement (including, without limitation, pursuant to the
              preceding sentence hereof), the Company shall have no further obligations
              to the Executive upon his termination of employment.

    

     

    
      	
              8.

            	
              Reduction
                for “Parachute Payments”. 
                Notwithstanding anything in this Agreement to the contrary, any amounts
                payable hereunder to the Executive in connection with a change in
                control,
                as well as any other “parachute payments,” as such term is defined under
                Section 280G of the Internal Revenue Code of 1986, as amended (the
                “Code”), payable under any other plans, agreements or policies of the
                Company, shall be reduced to the extent necessary to assure that
                the
                Executive does not become subject to the excess parachute payment
                excise
                tax under Section 4999 of the Code and the Company does not lose all
                or part of its compensation deduction for such payments.
                

            

    

    

    
      	
              9.

            	
              Indemnity.
                The Company shall, during his employment with the Company and thereafter,
                indemnify the Executive to the fullest extent permitted by law and
                by its
                Certificate of Incorporation and By-laws and shall assure that the
                Executive is covered by the Company’s directors’ and officers’ insurance
                policies and any other insurance policies that protect employees,
                as in
                effect from time to time. 

            

    

    

    
      	
              10.

            	
              Restrictive
                Covenants .
                

            

    

    

    
      	 	
              a.

            	
              Proprietary
                Information.
                

            

    

    
      	 	
              i.

            	
              The
                Executive agrees that all information and know-how, whether or not
                in
                writing, of a private, secret or confidential nature concerning the
                business or financial affairs of the Company or any of the Company’s
                Affiliates is and shall be the exclusive property of the Company
                or the
                Company’s Affiliates.  Such information and know-how shall include,
                but not be limited to, inventions, products, processes, methods,
                techniques, formulas, compositions, compounds, projects, developments,
                plans, research data, clinical data, financial data, personnel data,
                computer programs, and customer and supplier lists (collectively,
                “Proprietary Information.”).  Except in connection with, and on a
                basis consistent with, the performance of his duties hereunder, the
                Executive shall not disclose any Proprietary Information to others
                outside
                the Company or the Company’s Affiliates or use the same for any
                unauthorized purposes without written approval by the Board, either
                during
                or after the Employment Period. 

            

    

    
      	 	
              ii.

            	
              The
                Executive agrees that all files, letters, memoranda, reports, records,
                data, sketches, drawings, laboratory notebooks, program listings,
                customer
                lists, customer solicitations or other written, photographic, or
                other
                tangible material containing Proprietary Information, whether created
                by
                the Executive or others, which shall come into his custody or possession,
                shall be and are the exclusive property of the Company or the Company’s
                Affiliates to be used by the Executive only in the performance of
                his
                duties for the Company.  The Executive agrees to deliver to the
                Company upon the expiration of the Employment Period such material
                containing Proprietary Information.

            

    

    
      	 	
              iii.

            	
              The
                Executive agrees that his obligation not to disclose or use information,
                know-how and records of the types set forth in paragraphs (i) and
                (ii)
                above, also extends to such types of information, know-how, records
                and
                tangible property of 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	customers of the Company or the Company’s Affiliates or
              suppliers to the Company or the Company’s Affiliates or other third
              parties who may have disclosed or entrusted the same to the Company
              or the
              Company’s Affiliates or to the Executive in the course of the Company’s
              business. 

    

     

    
      	 	
              iv.

            	
              Notwithstanding
                the foregoing, such Proprietary Information shall not include information
                which (A) is or becomes generally available or known to the public,
                other
                than as a result of any disclosure by the Executive in violation
                hereof;
                or (B) is or becomes available to the Executive on a non-confidential
                basis from any source other than the Company, other than any such
                source
                that the Executive knows is prohibited by a legal, contractual, or
                fiduciary obligation to the Company from disclosing such
                information.

            

    

    
      	 	
              v.

            	
              Other
                than in connection with any requirements pursuant to applicable
                “whistleblower” statutes, in the event that the Executive is requested
                pursuant to, or becomes compelled by, any applicable law, regulation,
                or
                legal process to disclose any Proprietary Information, the Executive
                shall
                provide the Company with prompt written notice thereof so that the
                Company
                may seek a protective order or other appropriate remedy or, in the
                Company’s sole and absolute discretion, waive compliance with the terms
                hereof.  In the event that no such protective order or other remedy
                is obtained, or the Company waives compliance with the terms hereof,
                the
                Executive shall furnish only that portion of such Proprietary Information
                which the Executive is advised by counsel is legally required.  The
                Executive will cooperate with the Company, at the Company’s sole cost and
                expense, in its efforts to obtain reliable assurance that confidential
                treatment will be accorded such Proprietary Information.
                

            

    

    
      	 	
              b.

            	
              Developments.
                

            

    

    
      	 	
              i.

            	
              The
                Executive shall make full and prompt disclosure to the Company of
                all
                inventions, improvements, discoveries, methods, developments, software,
                and works of authorship, whether patentable or not, which are created,
                made, conceived or reduced to practice by the Executive or under
                his
                direction or jointly with others during the Employment Period, whether
                or
                not during normal working hours or on the premises of the Company
                or the
                Company’s Affiliates (collectively, “Developments”).
                

            

    

    
      	 	
              ii.

            	
              The
                Executive agrees to assign and does hereby assign to the Company
                (or any
                entity designated by the Company) all his right, title and interest
                in and
                to all Developments and all related patents, patent applications,
                copyrights and copyright applications. The Executive also hereby
                waives
                all claims to moral rights in any Developments.

            

    

    
      	 	
              iii.

            	
              Notwithstanding
                anything to the contrary contained herein, the provisions of Sections
                10(b)(i) and 10(b)(ii) hereof shall not apply to Developments which
                consist of products (and not of services) which do not relate to
                the
                present or planned business or research and development of the Company
                or
                the Company’s Affiliates and which are made and conceived by the Executive
                not during normal working hours, not on the premises of the Company
                or the
                Company’s Affiliates and not using the tools, devices, equipment or
                personnel of the Company or the Company’s Affiliates or Proprietary
                Information. 

            

    

    
      	 	
              iv.

            	
              The
                Executive agrees to cooperate fully with the Company or the
                Company’s

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	Affiliates,
              both during and after the Employment Period, with respect to the
              procurement, maintenance and enforcement of copyrights and patents
              (both
              in the United States and foreign countries) relating to
              Developments.  The Executive shall sign all papers, including,
              without limitation, copyright applications, patent applications,
              declarations, oaths, formal assignments, assignment of priority rights,
              and powers of attorney, which the Company or the Company’s Affiliates may
              deem reasonably necessary or desirable in order to protect their rights
              and interests in any Development. 

    

     

    
      	 	
              c.

            	
              Other
                Agreements. 
                The Executive represents that his performance of all the terms of
                this
                Agreement and his employment as an employee of the Company does not
                and
                will not breach any agreement, (i) to keep in confidence proprietary
                information, knowledge or data acquired by him in confidence or in
                trust
                prior to his employment with the Company, (ii) to refrain from competing,
                directly or indirectly, with the business of his previous employer
                or any
                other party, and (iii) to refrain from soliciting the employment
                of any
                employees of his previous employer or any other party.
                

            

    

    
      	 	
              d.

            	
              Non-Competition
                and Non-Solicitation . 
                During the Executive’s employment hereunder and for a period of  (i)
                two (2) years thereafter upon the Executive’s terminating his employment
                by giving notice to the Company as set forth in Section 1 hereof or
                (ii) one (1) year thereafter upon the Company terminating the Executive’s
                employment by giving notice to the Executive as set forth in
                Section 1 hereof, without the prior written consent of the Company,
                the Executive shall not engage (whether as an employee, consultant,
                director or independent contractor) in any Business Activities on
                behalf
                of any person, firm or corporation, and the Executive shall not acquire
                any financial interest (except for equity interests in publicly-held
                companies that will not be significant and that, in any event, will
                not
                exceed five percent (5%) of equity of that company) in any entity
                which
                engages in Business Activities within 200 miles of any of the Company’s
                offices in operation on the Commencement Date and within 100 miles
                of any
                office of the Company established after the Commencement Date. 
                During the period that the above non-competition restriction applies,
                the
                Executive shall not, without the written consent of the Company  (i)
                solicit any employee of the Company or any of the Company’s Affiliates to
                terminate his employment, or (ii) solicit any customers, partners,
                resellers, vendors or suppliers of the Company on behalf of any individual
                or entity other than the Company or its Affiliates.  As used herein,
                the term “Business Activities” shall mean conduct of business as a
                computer and communications technology management and/or consulting
                business providing information technology networking and data center
                services, including secure access, voice over internet protocol (“VOIP”),
                storage, security, messaging solutions, network and mainframe connectivity
                consulting, remote network monitoring and management, network and
                system
                diagnostics, product maintenance and support, training, and product
                procurement solutions. 

            

    

    
      	 	
              e.

            	
              Enforcement. 
                The Company shall be entitled to seek a restraining order or injunction
                in
                any court of competent jurisdiction to prevent any continuation of
                any
                violation of the provisions of this Section 10.
                

            

    

    
      	 	
              f.

            	
              Affiliates. 
                For purposes hereof, the Company’s Affiliates shall mean any individual or
                entity that directly or indirectly, through one or more intermediaries,
                controls, is controlled by or is under common control with the
                Company.  For purposes of this definition, “control” means the power
                to direct the management and policies of
                another,

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	 	 	 whether through the ownership of voting securities,
                by contract or otherwise.

      

       

    

    
      	
              11.

            	
              Notice.
                All notices, requests and other communications pursuant to this Agreement
                shall be in writing and shall be deemed to have been duly given,
                if
                delivered in person against written receipt therefor, or by overnight
                courier, or sent by express, registered or certified mail, postage
                prepaid, addressed as follows: 

            

    

    

    If
      to the
      Executive: 

     

    Mr.
      J.W.
      Braukman, III

    520
      N.W.
      7th
      Street

    Delray
      Beach, FL 33444

    

    If
      to the
      Company: 

    

    MTM
      Technologies, Inc.

    1200
      High
      Ridge Road

    Stamford,
      CT 06905

    Attn:
      Chief Executive Officer

    

    Either
      party may, by written notice to the other, change the address to which notices
      to such party are to be delivered or mailed. 

    

    
      	
              12.

            	
              Dispute
                Resolution; Mediation and Arbitration.
                Except as specifically provided herein, any dispute or controversy
                arising
                under or in connection with this Agreement shall be, upon the demand
                of
                either party, subject to a non-binding mediation proceeding before
                a
                mediator on the panel of the CPR Institute for Dispute Resolution,
                such
                mediator to be agreed upon by the parties.  If a mediator is not
                agreed upon or if mediation is not successful, the matter shall be
                settled
                exclusively by arbitration, conducted before a single arbitrator
                mutually
                selected by the parties, in the State of New York, in accordance
                with the
                rules of the American Arbitration Association then in effect.  If the
                parties are unable to agree on a single arbitrator, each party shall
                select an arbitrator and the two arbitrators selected by the parties
                shall
                select a third arbitrator.  If three arbitrators are selected, they
                shall act by majority vote.  Judgment may be entered on the
                arbitrator’s award in any court having jurisdiction.  Each party
                shall bear their own costs and expenses of any such mediation or
                arbitration proceeding and shall split evenly any common costs; provided,
                however, that if the dispute concerns the issue of termination for
“cause”
                or resignation for “good reason,” the non-prevailing party shall pay for
                all of the prevailing party’s costs and expenses, including legal fees
                relating to such mediation or arbitration proceeding.
                

            

    

    

    
      	
              13.

            	
              Waiver
                of Breach .
                Any waiver of any breach of this Agreement shall not be construed
                to be a
                continuing waiver or consent to any subsequent breach on the part
                either
                of the Executive or of the Company.

            

    

    

    
      	
              14.

            	
              Non-Assignment;
                Successors.
                Neither party hereto may assign his or its rights or delegate his
                or its
                duties under this Agreement without the prior written consent of
                the other
                party; provided,
                however,
                that (i) this Agreement shall inure to the benefit of and be binding
                upon
                the successors

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	and assigns of the Company upon any sale of all
              or
              substantially all of the Company’s assets, or upon any merger,
              consolidation or reorganization of the Company with or into any other
              corporation, all as though such successors and assigns of the Company
              and
              their respective successors and assigns were the Company and (ii) this
              Agreement shall inure to the benefit of and be binding upon the heirs,
              assigns or designees of the Executive to the extent of any payments
              due to
              them hereunder.  As used in this Agreement, the term “Company” shall
              be deemed to refer to any such successor or assign of the Company referred
              to in the preceding sentence. 

    

     

    
      	
              15.

            	
              Severability.
                To the extent any provision of this Agreement or portion thereof
                shall be
                invalid or unenforceable, it shall be considered deleted there-from
                and
                the remainder of such provision and of this Agreement shall be unaffected
                and shall continue in full force and effect.

            

    

    

    
      	
              16.

            	
              Counterparts.
                This Agreement may be executed in one or more counterparts, each
                of which
                shall be deemed to be an original but all of which together will
                constitute one and the same instrument.

            

    

    

    
      	
              17.

            	
              Governing
                Law.
                This Agreement shall be construed, interpreted and enforced in accordance
                with the laws of the State of New York, without giving effect to
                the
                choice of law principles thereof. 

            

    

    

    
      	
              18.

            	
              Entire
                Agreement.
                This Agreement constitutes the entire agreement by the Company and
                the
                Executive with respect to the subject matter hereof and except as
                specifically provided herein, supersedes any and all prior agreements
                or
                understandings between the Executive and the Company with respect
                to the
                subject matter hereof, whether written or oral.  This Agreement may
                be amended or modified only by a written instrument executed by the
                Executive and the Company. 

            

    

    

    [SIGNATURES
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    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of September
      28, 2006. 

    

    

      
        	 	
                MTM
                  TECHNOLOGIES, INC.

              
	 	 
	 	 
	 	
                By:

              	 /s/Francis
                J. Alfano
	 	
                Name: Francis
                  J. Alfano

              
	 	
                Title: Chief
                  Executive Officer

              

      

    

    

    AGREED
      AND ACCEPTED:

    

     

    
      
        	 

                /s/
                  J.W. Braukman, III

              	 
	
                J.W.
                  Braukman, III

              	 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Exhibit
      A

    

    RELEASE
      OF CLAIMS AND COVENANT NOT TO SUE

    

    This
      RELEASE OF CLAIMS AND COVENANT NOT TO SUE is executed and delivered
      by MTM
      Technologies, Inc., a New York corporation (the “Company”), to ___________ (the
“Executive”). 

    

    Pursuant
      to the provisions of Section 4 of the letter agreement between the Company
      and
      the Executive dated   __________ , 200_ (the “Agreement
      ”)
      the
      Company hereby agrees as follows: 

    

    The
      Company and its affiliates release and forever discharge the Executive from,
      and
      covenant not to sue or proceed against the Executive on the basis of, any and
      all past or present causes of action, suits, agreements or other claims which
      the Company or its affiliates have against the Executive upon or by reason
      of
      any matter, cause or thing whatsoever, including, but not limited to, any
      matters arising out of his employment by the Company and the cessation of said
      employment.  This release shall not, however, constitute a waiver of any of
      the Company’s rights under the Agreement.  The Company hereby covenants
      that it has not transferred or assigned to any person or entity any of the
      claims that are subject to this release and covenant. 

    

    This
      RELEASE OF CLAIMS AND COVENANT NOT TO SUE is executed by the Company and
      delivered to the Executive on     ____________, 20__.

    

    
      

      

        
          	 	
                  MTM
                    TECHNOLOGIES, INC.

                
	 	 
	 	 
	 	
                  By:

                	 
	 	
                  Name: 

                
	 	
                  Title: 

                

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    Exhibit
      B 

    

    RELEASE
      AGREEMENT 

    

    This
      RELEASE AGREEMENT (the “ Agreement
      ”)
      is
      made as of   _________, 20__ by and between MTM Technologies, Inc., a
      New York corporation (the “ Company
      ”),
      and
      ________ (the “ Executive
      ”).
      

    

    Recitals
      :

    

    A.           
      The Company and the Executive are parties to a Letter Agreement dated
   __________, 200_ (the “Letter
      Agreement”). 
      Capitalized terms that are not otherwise defined herein shall have the meanings
      ascribed to such terms in the Letter Agreement. 

    

    B.           
      Effective as of    ________, 20__    (the “
Separation
      Date”),
      the
      Executive’s employment with the Company was or will be terminated. 

    

    C.           
      The Company is not obligated to pay the Executive any additional compensation
      or
      benefits other than that which has been earned as of the Executive’s Separation
      Date and other than that which is set forth in the Letter Agreement.  This
      Agreement is the Release Agreement referenced in the Letter Agreement and the
      payment of the severance benefits set forth in the Letter Agreement is
      conditioned upon the execution and delivery by the Executive of this Agreement.
      

    

    Agreement
      :

    

    NOW,
      THEREFORE, in return for good and valuable consideration and in consideration
      of
      the premises and the mutual promises made hereafter, the Executive and the
      Company agree as follows: 

    

    1.            
      Agreement. 
      Subject to the terms and conditions of the Letter Agreement; (a) the Company
      agrees to pay the Executive the severance payments and to otherwise comply
      with
      the provisions of the Letter Agreement, as the case may be, and (b) the
      Executive agrees to comply with the restrictive covenants in Section 10 of
      the Letter Agreement and to otherwise comply with the provisions of the
      Agreement. 

    

    2.            
      Acknowledgment. 
      The Executive and the Company acknowledge that the amounts to be paid pursuant
      to the Letter Agreement are in excess of any earned wages or benefits due and
      owing the Executive through his Separation Date. 

    

    3.            
      Release. 
      In exchange for the good and valuable consideration set forth in Section 1
      of this Agreement, the Executive, on behalf of himself, his heirs, executors
      and
      assigns, releases, waives and discharges any and all manner of action, causes
      of
      action, claims, rights, charges, suits, damages, debts, demands, obligations,
      attorneys’ fees, or any and all other liabilities or claims of whatsoever
      nature, whether in law or in equity, known or unknown, including, but not
      limited to, any claim and/or claim of damages or other relief for tort, breach
      of contract, personal injury, negligence, age discrimination under The Age
      Discrimination In Employment Act of 1967, any alleged violation of the Civil
      Rights Acts of

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1964
      and
      1991, the Equal Pay Act of 1963, the Rehabilitation Act of 1973, the Older
      Workers Benefit Protection Act of 1990, the Americans with Disabilities Act
      of
      1990, the Family and Medical Leave Act of 1993, any employment discrimination
      prohibited by other federal, state or local laws, including, but not limited
      to,
      sex, race, national origin, marital status, age, handicap, height, weight,
      or
      religious discrimination, and any other claims for unlawful employment practices
      which the Executive has claimed or may claim or could claim in any local, state
      or federal forum, against the Company, its shareholders and their respective
      directors, officers, employees, successors and assigns, affiliates and all
      others, as a result of the Executive’s employment at, and separation of
      employment from, the Company; provided that,
      the
      Executive and the Company retain the right to enforce this Agreement and the
      provisions of Section 4 of the Letter Agreement.  The Executive hereby
      covenants that he has not transferred or assigned to any person or entity any
      of
      the claims that are subject to this release and covenant. 

    

    4.            
      Irrevocable
      Bar. 
      The parties intend that this Agreement will irrevocably bar any action or claim
      whatsoever by the Executive against the Company for any resultant injuries
      or
      damages, whether known or unknown, sustained or to be sustained, as a result
      of
      any of the Company’s acts, omissions and conduct having occurred up to the
      present date, including, but not limited to, the Executive’s employment with the
      Company and the termination of that employment, other than those concerning
      this
      Agreement and the provisions of Section 4 of the Letter Agreement.

    

    5.            
      Rights
      or Claims Arising After the Date Hereof. 
      The Executive and the Company understand that the Executive is not waiving
      rights or claims that may arise as a result of any act, omission or conduct
      of
      the Company occurring after the date this Agreement is executed. 

    

    6.            
      Review
      of Agreement. 
      The Executive understands and agrees that he has read this Agreement carefully
      and understands all of its terms. 

    

    7.            
      Advice
      to Consult Attorney. 
      The Executive understands and agrees that he is advised to consult with an
      attorney prior to executing this Agreement. 

    

    8.            
      Period
      within which to Consider Agreement. 
      The Executive understands and agrees that he has been given 21 days (or more)
      within which to consider this Agreement. 

    

    9.            
      Revocation. 
      The Executive understands and agrees that he may revoke this Agreement for
      a
      period of seven (7) calendar days following the execution of this
      Agreement.  Neither this Agreement nor the Company’s obligations under
      Section 4 of the Letter Agreement shall be effective until this revocation
      period has expired (at which time such obligations shall be effective,
      retroactive to the time contemplated in the Letter Agreement).  Without
      limiting the generality of the foregoing, the provisions of Section  10 of
      the Letter Agreement (relative to restrictive covenants) shall not be terminated
      or otherwise affected by any revocation of this Agreement.  The Executive
      understands that any revocation, to be effective, must be in writing and
      received, within seven (7) days of execution of this Agreement, by the Company
      at its principal executive offices. 

    

    10.          
      Voluntary
      Action; No Reliance. 
      In agreeing to sign this Agreement, the Executive is doing so completely
      voluntarily and agrees that he has not relied on any oral statements or
      explanations made by the Company or its representatives. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    11.          
      Nondisclosure. 
      Both parties agree not to disclose the terms of this Agreement to any third
      party, except as is required by law, or as is necessary for purposes of securing
      counsel from either parties’ attorneys or accountants. 

    

    12.          
      No
      Disparaging Statements. 
      The Executive and the Company agree not to make any disparaging statements
      about
      the other. 

    

    13.          
      Full
      Accord and Satisfaction. 
      This Agreement is in full accord and satisfaction and compromise of the claims
      of the Executive and the Company and is not to be construed as an admission
      of
      liability on the part of the Company. 

    

    14.          
      Miscellaneous. 
      The headings in this Agreement are inserted for convenience of reference only
      and shall not be a part of or control or affect the meaning of any provision
      hereof.  This Agreement maybe executed in counterparts, each of which shall
      be deemed an original but all of which together shall constitute one and the
      same instrument, and shall bind and shall inure to the benefit of the parties
      hereto, and their respective successors and assigns.  Copies (photostatic,
      facsimile or otherwise) of this Agreement and signatures hereto shall be deemed
      to be originals and may be relied on to the same extent as the manually-signed
      originals.  This Agreement shall be governed by, and construed in
      accordance with, the laws of the State of New York. 

    

    15.          
      Entire
      Agreement, Modification. 
      This Agreement contains the entire agreement between the Executive and the
      Company with respect to the subject matter hereof.  Any modification of
      this Agreement must be made in writing and signed by the Executive and an
      officer specifically authorized to do so by the Board of Directors of the
      Company. 

    

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    IN
      WITNESS WHEREOF, the undersigned has executed this Agreement on the date first
      written above. 

    

     

    
       

      
        
          	 	 
	
                  J.W.
                    Braukman, III

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