Document:

exv10w39

 

Exhibit 10.39

AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT

This Amendment to Executive Employment Agreement is entered into as of this 5th
day of August, 2003 by and between Good Guys, Inc., a Delaware corporation
(“Company”) and Kenneth R. Weller (“Executive”).

RECITALS:

1.     The Company and Executive entered into an Executive Employment Agreement
effective as of the close of business on the 15th day of August, 2000 (the
“Employment Agreement”).

2.     The Compensation Committee of the Board of Directors of the Company and the
Board of Directors have approved, and Executive has agreed to, certain
amendments to the Employment Agreement.

NOW THEREFORE, in consideration of the mutual covenants and obligations
contained herein the parties hereby agree that the Employment Agreement shall
be amended in the following respects:

1.     Section 1(a) of the Employment Agreement is amended and restated in its
entirety to read as follows:

“Chief Executive Officer. Executive agrees that during the term of
this Agreement he will devote his best efforts and all of his
business time and attention to the business of the Company and will
faithfully and diligently carry out the duties of Chief Executive
Officer. In such capacity, Executive shall report directly to the
Board of Directors.”

2.     Section 7 of the Employment Agreement is amended to provide that the term
of employment shall end on August 15, 2006 unless earlier terminated pursuant
to the provisions of Section 7.

3.     Section 2(c) of the Employment Agreement is amended to extend the
expiration date of the non-qualified stock option provided for therein until
August 15, 2006, subject to the following:

	 	(a)	 	The exercise price of the option shall remain $3.75 per
share, and the option, subject to the provisions of
subparagraph (b) below, shall be fully vested as of August 15,
2003.
	 
	 	(b)	 	The extension of the option and exercise of the option
are subject to obtaining the approval of the stockholders of
the Company of the extension at the next annual meeting of
stockholders, or if earlier, at a meeting of stockholders held
for the purpose of considering a “change of control” of the
Company as that term is defined in the Employment Agreement (a
“change of control”), in which the consideration to be
received by the stockholders of the Company in the change of
control has a value in excess of $3.75 per share (as
determined in good faith by the Board of Directors of the
Company). If prior to the next annual meeting of stockholders
a “change of control” in which the stockholders of the Company
receive consideration having a value of $3.75 per share or
less is approved by the stockholders, or a change of control
occurs at any price without stockholder approval, there shall
be no further obligation to seek stockholder approval of
extension of the option and the option shall terminate.
Approval of stockholders as used herein shall mean the
affirmative vote of at least a majority of the shares of
common stock represented in person or by proxy and entitled to
vote at the meeting.
	 
	 	(c)	 	To the extent not exercised, the option shall in any
event automatically expire and be cancelled upon the earliest
to occur of (i) a change of control, (ii) failure to obtain
approval of the stockholders of the extension of the option at
a meeting held for that purpose, (iii) 90 days following the
termination of employment of Executive with the Company other
than by reason of death or disability, or one year following
the termination of employment of Executive with the Company by
reason of death or disability, and (iv) August 15, 2006.

 

4.     Except as otherwise provided above, the provisions of the Employment
Agreement shall remain unchanged.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment to
Employment Agreement as of the day and year first above written.

	 	 	 
	 	 	
GOOD GUYS, INC.
	 	 	 
	 	 	
/s/ THOMAS F. HERMAN
	 	 	

	 	 	
Thomas F. Herman, President
	 	 	 
	 	 	
EXECUTIVE:
	 	 	 
	 	 	
/s/ KENNETH R. WELLER
	 	 	

	 	 	
Kenneth R. Wellerexv10w40

 

Exhibit 10.40

August 6, 2003

Thomas F. Herman

Good Guys, Inc.

1600 Harbor Bay Parkway, Suite 200

Alameda, CA 94502

Re: Terms of Employment

Dear Tom:

On behalf of Good Guys, Inc. (“the Company”), I am pleased to confirm in
writing the terms of your employment:

1.     You are employed as President and Chief Officer, reporting to the Chairman and CEO.

2.     Your
base salary is $14,166.67 semi-monthly ($340,000 annually). In addition, you will be
eligible for a targeted bonus up to 50 percent (50%) of your base salary,
provided that Good Guys and you meet established objectives for the fiscal year. Any bonus is payable at the time of the Company’s normal bonus distributions
and is not earned unless you are employed by the Company on the date that the
bonus is paid.

3.     During your employment, you will receive medical and other benefits of
employment generally available to the Company’s officers when and as you become
eligible for them.

4.     You will be an at-will employee, which means that you can be terminated by
the Company at any time, with or without cause.

5.     For purposes hereof “cause” means: (a) violation of any of the Company’s
policies, practices and procedures; (b) any state, federal or other conviction,
including, but not limited to, the entry of a pleas of nolo contendere upon a
criminal charge, which would render you unable to perform your normal
responsibilities; (c) neglect of, breach of, or failure or inability to perform
your duties as an employee; or (d) an act of misconduct or dishonesty in
connection with your employment.

6.     In the event of a “change in control” of the Company within two years of
the date of this letter and your termination without cause within 12 months of
the change of control, then you will be entitled to severance payments equal in
the aggregate to months salary (at your then rate of salary), payable on the
same schedule such payments would have been made if you had remained employed.
For purposes of this agreement, the term “change in control” is defined as any
of the following transactions: (a) the sale of all or substantially all of
the assets of the Company to any person or entity that, prior to such sale, did
not control, was not under common control with, or was not controlled by, the
Company, (b) a merger or consolidation or other reorganization in which the
Company is not the successor entity or becomes owned entirely by another
entity, unless at least fifty percent (50%) of the outstanding voting
securities of the surviving or parent corporation, as the case may be,
immediately following such transaction are beneficially held by such persons
and entities in the same proportions as such persons and entities beneficially
held the outstanding voting securities of the Company immediately prior to such
transaction, or (c) the sale or other change of beneficial ownership of the
outstanding voting securities of the Company such that any person or “group” as
that term is defined under the Securities Exchange Act of 1934 becomes the
beneficial owner of more than 50% of the outstanding voting securities of the
Company.

7.     If you are terminated by the Company without cause within two years from
August 6, 2003, then you will be entitled to receive severance payments equal
in the aggregate to months’ salary (at your then rate of salary) payable on
the same schedule that such payments would have been made if you had remained
employed.

8.     In the event of your death following termination of your employment, then
any payments owing under paragraphs 6 or 7 above will be made your estate. You
shall not be entitled to payments under both paragraphs 6 and 7 above, but
shall be entitled to the higher of the payments provided for in those
paragraphs if the terms of such paragraphs would both be applicable.

 

9.     For the purposes of paragraphs 6 and 7 above, a termination without cause
shall include a termination by you for good reason, which is defined as
follows: (a) a reduction in your salary below the amount specified in
paragraph 2 above; (b) a relocation of your workplace by more than 50 miles; or
(c) a material reduction in your responsibilities or duties, provided that a
change in the person to whom you report shall not in and of itself constitute
such a reduction.

10.     Neither this agreement nor the compensation provided for herein shall
affect your entitlement to any benefits that have accrued and are owing to you
as of the time of termination of your employment under other benefit plans of
the Company that are then in effect.

11.     Compensation payable to you under this agreement shall be reduced by all
federal, state, local or other withholding or similar taxes as required by
applicable law.

12.     This letter contains the complete terms of your employment and supercedes
all prior agreements between you and the Company concerning the same. It may
be modified only by an agreement in writing approved by the Board of Directors
and signed by you and the Company’s Chief Executive Officer or President.
These terms, if acceptable by you, will be binding on the Company, its
successors and assigns, even in the event of a change in control or management
of the Company.

13.     This letter agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of California applicable to contracts
made and performed in such state, without regard to the principles thereof
regarding conflict of laws.

Please indicate your acceptance of these terms by affixing your signature below
and returning this letter to me.

	 	 	 
	 	 	
Very truly yours,
	 	 	 
	 	 	
/s/ KENNETH R. WELLER
	 	 	
Kenneth R. Weller
	 	 	
Chairman and CEO

Agreed and accepted:

/s/ THOMAS F. HERMANexv10w41

 

Exhibit 10.41

August 6, 2003

Cathy Stauffer

Good Guys, Inc.

1600 Harbor Bay Parkway, Suite 200

Alameda, CA 94502

Re: Terms of Employment

Dear Cathy:

On behalf of Good Guys, Inc. (“the Company”), I am pleased to confirm in
writing the terms of your employment:

1.     You are employed as Executive Vice President, reporting to the President
and Chief Operating Officer.

2.     Your base salary is $12,500 semi-monthly ($300,000 annually). In addition,
you will be eligible for a targeted bonus up to 50 percent (50%) of your base
salary, provided that Good Guys and you meet established objectives for the
fiscal year. Any bonus is payable at the time of the Company’s normal bonus
distributions and is not earned unless you are employed by the Company on the
date that the bonus is paid.

3.     During your employment, you will receive medical and other benefits of
employment generally available to the Company’s officers when and as you become
eligible for them.

4.     You will be an at-will employee, which means that you can be terminated by
the Company at any time, with or without cause.

5.     For purposes hereof “cause” means: (a) violation of any of the Company’s
policies, practices and procedures; (b) any state, federal or other conviction,
including, but not limited to, the entry of a pleas of nolo contendere upon a
criminal charge, which would render you unable to perform your normal
responsibilities; (c) neglect of, breach of, or failure or inability to perform
your duties as an employee; or (d) an act of misconduct or dishonesty in
connection with your employment.

6.     In the event of a “change in control” of the Company within two years of
the date of this letter and your termination without cause within 12 months of
the change of control, then you will be entitled to severance payments equal in
the aggregate to 18 months salary (at your then rate of salary), payable on the
same schedule such payments would have been made if you had remained employed.
For purposes of this agreement, the term “change in control” is defined as any
of the following transactions: (a) the sale of all or substantially all of
the assets of the Company to any person or entity that, prior to such sale, did
not control, was not under common control with, or was not controlled by, the
Company, (b) a merger or consolidation or other reorganization in which the
Company is not the successor entity or becomes owned entirely by another
entity, unless at least fifty percent (50%) of the outstanding voting
securities of the surviving or parent corporation, as the case may be,
immediately following such transaction are beneficially held by such persons
and entities in the same proportions as such persons and entities beneficially
held the outstanding voting securities of the Company immediately prior to such
transaction, or (c) the sale or other change of beneficial ownership of the
outstanding voting securities of the Company such that any person or “group” as
that term is defined under the Securities Exchange Act of 1934 becomes the
beneficial owner of more than 50% of the outstanding voting securities of the
Company.

7.     If you are terminated by the Company without cause within two years from
August 6, 2003, then you will be entitled to receive severance payments equal
in the aggregate to 12 months’ salary (at your then rate of salary) payable on
the same schedule that such payments would have been made if you had remained
employed.

8.     In the event of your death following termination of your employment, then
any payments owing under paragraphs 6 or 7 above will be made your estate. You
shall not be entitled to payments under both paragraphs 6 and 7 above, but
shall be entitled to the higher of the payments provided for in those
paragraphs if the terms of such paragraphs would both be applicable.

 

 

9.     For the purposes of paragraphs 6 and 7 above, a termination without cause
shall include a termination by you for good reason, which is defined as
follows: (a) a reduction in your salary below the amount specified in
paragraph 2 above; (b) a relocation of your workplace by more than 50 miles; or
(c) a material reduction in your responsibilities or duties, provided that a
change in the person to whom you report shall not in and of itself constitute
such a reduction.

10.     Neither this agreement nor the compensation provided for herein shall
affect your entitlement to any benefits that have accrued and are owing to you
as of the time of termination of your employment under other benefit plans of
the Company that are then in effect.

11.     Compensation payable to you under this agreement shall be reduced by all
federal, state, local or other withholding or similar taxes as required by
applicable law.

12.     This letter contains the complete terms of your employment and supercedes
all prior agreements between you and the Company concerning the same. It may
be modified only by an agreement in writing approved by the Board of Directors
and signed by you and the Company’s Chief Executive Officer or President.
These terms, if acceptable by you, will be binding on the Company, its
successors and assigns, even in the event of a change in control or management
of the Company.

13.     This letter agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of California applicable to contracts
made and performed in such state, without regard to the principles thereof
regarding conflict of laws.

Please indicate your acceptance of these terms by affixing your signature below
and returning this letter to me.

	 	 	 
	 	 	
Very truly yours,
	 	 	 
	 	 	
/s/ KENNETH R. WELLER
	 	 	 
	 	 	
Kenneth R. Weller
	 	 	
Chairman and CEO

Agreed and accepted:

/s/ CATHY A. STAUFFER

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