Document:

Exhibit 10.3

 

DIRECTOR AGREEMENT

 

 

This DIRECTOR

AGREEMENT (“Agreement”) is made effective as of August 5, 2002  by and between Alternative Resources

Corporation, (the “Company”) and Robert Stanojev (the “Director”).

 

In

consideration of the mutual covenants contained in this Agreement, the parties

hereby agree as follows:

 

SECTION

I

AGREEMENT

TO SERVE AS DIRECTOR

AND

CHAIRMAN OF THE BOARD

 

The Company’s

Board of Directors has elected Director as an additional member of the Board of

Directors of the Company and further elected him as non-executive Chairman of

the Board, having the duties described in the bylaws of the Company and the

additional duties and responsibilities described in this Agreement.  Director agrees to serve in these roles in

accordance with the terms of this Agreement until his resignation or removal as

Chairman.

 

SECTION

II

POSITION

AND RESPONSIBILITIES

 

Director shall

serve as consultant and counselor to the Board of Directors and to the Chief

Executive Officer of the Company.  In

that capacity, he shall be responsible to jointly develop with the Chief

Executive Officer the Company strategy (subject, where appropriate, to the

approval of the Board of Directors), facilitate the communication between the

Chief Executive Officer and the Board of Directors, and to fulfill a leading

role in the Board of Directors’ direction and supervision of the Chief

Executive Officer. Director shall participate with and assist the Chief

Executive Officer in the selection and hiring of management who report directly

to the Chief Executive Officer. 

Director shall also participate in outreach to prospective strategic

partners and customers of the Company, and shall travel as necessary. For the

first ninety (90) days of this Agreement, Director shall devote all of his

business time and attention to his duties hereunder. Thereafter, Director is

expected to devote from two to three days a month to his duties hereunder.

 

SECTION

III

DIRECTORS

FEES AND OPTIONS

 

A.            Fees

 

While serving

as Chairman of the Board, Director shall be paid director’s fees at the rate of

$100,000 per annum, payable in monthly installments.  These fees are in lieu of all other directors fees to which other

directors are entitled.

 

B.            Options

 

The Company

has granted to Director stock options outside of the Company’s option plans to

purchase 400,000 shares of common stock of the Company with an exercise price

equal to fair market value per share on the date hereof, vesting, so long as

Director remains Chairman of the Board, in three annual installments of

133,333, 133,333 and 133,334 shares on the first, second and third annual

anniversaries of the date hereof.

 

Notwithstanding

the foregoing:

 

(i)            If 

Director is removed by the Company from his position as Chairman on or

prior to the ninety (90) day anniversary of the date hereof, no options shall

vest, and they shall terminate.  If  Director is removed by the Company from his

position as Chairman without Cause after the ninety day anniversary but prior

to the first annual anniversary  of the

date hereof , 133,333 shares of  this

option shall become fully vested and exercisable for the 30 day

post-termination period specified in the option . If  Director is removed by the Company from his position as Chairman

without Cause after the first annual anniversary of the date hereof but prior

to the second annual anniversary of the date hereof, 200,000 shares of this

option (less the portion of this option already vested) shall become fully

vested and exercisable for the 30 day post-termination period specified in the

option. In the event that Director disputes and has timely submitted the

determination of Cause to arbitration in accordance with this Agreement, then

the period for exercise of his options provided for in this Agreement shall be

suspended until the Arbitrator submits a written decision and, in the event of

a determination in favor of Director, shall then run for a period of thirty

(30) days after such determination.

 

(ii)           If there is a change in control of

the Company, all of these options shall become fully vested and shall remain

exercisable both during his continued position as Chairman of the Board, and,

if Director’s position as Chairman of the Board is terminated or he resigns

that position on or after the change in control, for the designated

post-termination period specified in those options.  For purposes of this Agreement, a “change in control” of the

Company shall be deemed to occur at the effective time of (i) a merger or

consolidation of the Company with one or more other corporations as a result of

which the holders of the outstanding voting stock of the Company immediately

prior to such merger or consolidation (other than the surviving or 

 

2

 

resulting corporation or any

affiliate thereof) hold less than 50% of the voting stock of the surviving or

resulting corporation, or (ii) a transfer of more than 50% (in value) of the

assets of the Company other than to a transferee in which the Company owns at

least 50% of the voting stock immediately prior to the consummation of such

transaction.  Solely for the

purposes of this definition, the Wynnchurch Capital entities shall always be

deemed to hold the shares into or for which any convertible securities and

warrants held by them are convertible or exercisable, and such shares shall be

deemed outstanding.

 

iii)            In the event of a termination of

Directors’ position as Chairman for Cause at any time, the options which have

not been exercised shall cancel and be nonexercisable.

The options granted

above are in lieu of all entitlement to annual option grants to which

nonemployee directors may be entitled under the Company’s option plans, and

Executive waives and declines all rights thereto, notwithstanding any

provisions in such plans to the contrary.

 

C.             No other Benefits/No Employment

Status

 

Director

understands that he is not an employee of the Company for any purpose and shall

not be entitled to participate in any retirement, health or other benefits

which are reserved to employees of the Company.  Director acknowledges that he is responsible for payment of all

taxes associated with the fees and director stock options granted hereunder.

 

SECTION

IV

BUSINESS

EXPENSES

 

The Company

will reimburse the Director for all reasonable travel and other expenses

incurred by the Director in connection with the performance of his duties and

responsibilities under this

Agreement.  Director must support all

expenditures with customary receipts and expense reports subject to review by

the Company’s Chief Financial Officer.

 

SECTION

V

TERMINATION

 

 

A.            Termination by Company.

 

Director

serves as Chairman at the pleasure of the Board of Directors and may be removed

from such position at any time by the Board of Directors with or without Cause.

“Cause” means and is limited to the good faith determination by the Company’s

Board of Directors that Director  (i)

has breached his specific performance duties assigned to him in this Agreement

which Director has not diligently commenced to cure and completed the cure of within

ten days following specific written notice of the breach or (ii) has breached

his fiduciary duties of loyalty to the Company

 

3

 

B.            Arbitration Right.

 

If Director

disputes (by giving written notice to the Company) any determination of Cause

by the Board of Directors within 15 days of being notified in writing of such a

determination, then Director may within 15 days after the giving of his notice

of dispute, submit the determination of whether there existed Cause for removal

to arbitration in accordance with Section VII hereof, and the burden of proving

Cause at such arbitration shall be on the Company or the Board of Directors.

 

 C.           Resignation.

 

Director may

also resign as Chairman at any time upon written notice. In any of these

events, Director shall also deliver his 

resignation as director of the Company and shall be entitled to receive

his accrued directors fees prorated through the date of his removal as Chairman.

 

SECTION

VI

INDEMNIFICATION,

LITIGATION

 

In addition to

such bylaw provisions as may from time to time be in effect, the Company will

execute with Director the current form of Indemnification Agreement granted to

directors.  The foregoing

indemnification shall continue to apply following termination of his positions

for actions or omissions during his service as Chairman of the Board.

 

SECTION

VII

ENTIRE

AGREEMENTS

 

This Agreement contains the entire agreement between the Company and

the Director with respect to the subject matter and supersedes any negotiations

or prior understandings prior employment, or consulting agreements  or letters of understanding between the

Company and Director. This Agreement may not be modified or amended except in

writing signed by the parties.  No term

or condition of this Agreement will be deemed to have been waived, except in

writing by the party charged with waiver. 

A waiver shall operate only as to the specific term or condition waived

and will not constitute a waiver for the future or act on anything other than

that which is specifically waived.

 

4

SECTION VIII

GOVERNING

LAW AND ARBITRATION

 

A.            This Agreement and its validity,

interpretation, performance and enforcement shall be governed by the laws of the

State of Delaware , without giving effect to the choice of law provisions

thereof.

 

B.            Arbitration of the existence of

Cause shall be subject to the following:

 

•                                            (i) Arbitration

shall be conducted by a single arbitrator (the Arbitrator”) in accordance with

the Commercial Arbitration Rules of the American Arbitration Association,

except as provide herein, in Chicago, Illinois. The parties shall attempt to agree on the selection of

the Arbitrator for the arbitration proceeding. 

If the parties cannot reach such an agreement within three weeks from

the filing of the initial arbitration demand, the Arbitrator shall be selected

according to the Rules of the American Arbitration Association.

•                                            (ii)           The Arbitrator shall not be allowed to issue punitive,

exemplary, or treble damages against any party, and the sole effect of the

arbitration shall be whether or not the director stock options provided for

under this Agreement may be exercised after termination of Director’s position

as Chairman of the Board.

•                                            (iii)          Except

as otherwise agreed to by the parties, the arbitration proceeding shall begin

no later than thirty days after the filing of the initial arbitration demand.

The arbitration proceedings shall be held from 10:00 a.m. to 3:00 p.m. on

consecutive business days until the arbitration is completed. Each party shall

be allowed four days to present its case in chief.  The time for the opposing party’s cross-examination of witnesses

shall not be included as part of the time for the presentment of a party’s case-in-chief.

The Arbitrator shall not be bound by any strict rules of evidence and may

consider any evidence presented at the arbitration hearing as he deem

appropriate. A court reporter shall attend and record all of the arbitration

proceedings (including but not limited to the argument and rulings on discovery

motions).

•                                            (iv)          Any

documents or other information produced by a party or non-party in any

arbitration proceeding hereunder shall be treated by the parties as

confidential and shall be used solely for the purposes of such arbitration

proceeding and for no other purpose. 

The parties shall not provide any such confidential information to any

person without the prior written consent of the producing party, except that

the parties may provide such confidential information to any retained expert

who, in advance of receiving any such confidential information, agrees in

writing to keep such information confidential as set forth herein. The

arbitration proceedings 

 

5

 

and the decision

issued pursuant to such proceedings shall be confidential, except for such

public disclosure as is required by the Company in accordance with law.

 

SECTION

IX

NOTICES

 

All notices,

requests, consents and other communications hereunder shall be in writing and

shall be deemed to have been made when delivered or mailed first-class postage

prepaid by registered mail, return receipt requested, or when delivered if by

hand, overnight delivery services or confirmed facsimile transmission, to the

following:

 

(a)           If to the Company, at:

 

	

  Alternative

  Resources Corporation

  
	

   600 Hart

  Road, Suite 300, Barrington,

  
	

  Illinois 

  60010

  
	

  Attention:

  Chief Executive Officer

  

 

or at such other address as may

have been furnished to the Director by the Company in writing, or

 

(b)           If to the Director, at the address he

has furnished to the Company in writing.

 

SECTION X

MISCELLANEOUS

 

A.            Multiple Counterparts

 

This Agreement may be executed simultaneously

in multiple counterparts each of the same force and effect.

 

B.            Severability

 

If any phrase,

clause or provision of this Agreement is declared invalid or unenforceable by

an arbitrator or court of competent jurisdiction, such phrase, clause or

provision shall be deemed severed from this Agreement, but will not affect any

other provisions of this Agreement, which shall otherwise remain in full force

and effect.  In addition, there will be

automatically substituted herein for such severed phrase, clause or provision a

phrase, clause or provision as similar as possible which is valid and

enforceable.

 

6

 

C.            Headings

 

The headings

and subheadings of this Agreement are inserted for convenience of reference

only and are not to be considered in construction of the provisions hereof.

 

D.            Construction

 

The Company

and the Director acknowledge that this Agreement was the result of arm’s-length

negotiations between sophisticated parties.  

Each and every provision of this Agreement shall be construed as though

both parties participated equally in the drafting of same, and any rule of

construction that a document shall be construed against the drafting party

shall not be applicable to this Agreement.

 

 

IN WITNESS

WHEREOF, the undersigned have executed this Agreement as of the date first

above written.

 

COMPANY                                                                                                     DIRECTOR

 

 

 

	

  ALTERNATIVE

  RESOURCES 

  CORPORATION

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  By:

  	

   

  	

   

  	

   

  
	

  Its:

  	

  Chief

  Executive Officer

  	

   

  	

  Robert

  Stanojev

  

 

 

7Exhibit

10.1

 

AMENDMENT

No. 13 TO

GLOBAL

TRADE SERVICES AGREEMENT BY AND BETWEEN

FORD

MOTOR COMPANY AND VASTERA SOLUTION SERVICES CORPORATION

 

THIS AMENDMENT No. 13 (the “Amendment No. 13”) to that certain Global

Trade Services Agreement (the “Services Agreement”) by and between Ford Motor Company

(“Ford”)

and Vastera Solution Services Corporation (“Vastera” or the “Company”) is made this 22nd day of July,

2002.

 

W I T N

E S S E T H

 

WHEREAS, the Company and Ford previously executed the

Services Agreement on July 14, 2000;

 

WHEREAS, the Company and Ford have previously amended

the Services Agreement by way of several prior amendments thereto; and

 

WHEREAS, Ford and Vastera now desire to amend Schedule

G Charges/Pricing of the Services Agreement to provide that Ford’s shall pay

Vastera fixed annual services fees for the remaining term of the Services

Agreement and subject to certain material changes in Ford’s level of business

or in efficiencies generated by Vastera.

 

NOW, THEREFORE, in consideration of the foregoing

premises and the mutual promises, terms and conditions contained herein, and

for other good and valuable consideration, the receipt and sufficiency of which

are hereby acknowledged, the parties hereto, intending to be legally bound,

agree as follows:

 

1.             Effective Date

and Time.

 

Except as may otherwise be noted herein for the other

retroactive performance of certain services by Vastera on Ford’s behalf, this

Amendment No. 13 shall be retroactive to and effective and operable as of the

1st day of July, 2002 (the “Amendment Effective Date”).

 

2.             Managed Services

Rates of Charge.

 

Schedule G.

Section 1 to the Services Agreement shall be deleted in its entirety and

replaced by the following Section 1:

 

 

“1.           Managed Service Fees

 

The Managed Service Fees payable by Ford to Vastera

shall be as follows:

 

	

  Time

  Period

  	

   

  	

  Applicable

  Time Period Managed

  Service Fee

  	

   

  	

  Monthly

  Payment Amount

  	

   

  
	

  July 1, 2002 -

  December 31, 2002

  	

   

  	

  $

  	

  4,891,976

  	

   

  	

  $

  	

  815,329.33

  	

   

  
	

  January 1, 2003

  - December 31, 2003

  	

   

  	

  $

  	

  11,800,000

  	

   

  	

  $

  	

  983,333.33

  	

   

  
	

  All remaining

  years of the Term thereafter

  	

   

  	

  $

  	

  11,800,000

  	

   

  	

  $

  	

  983,333.33

  	

   

  

 

The parties agree that if there is a material change

in Ford’s business levels and such changed business levels result in a change

to Vastera’s costs of performing the Services hereunder, the parties shall meet

to mutually agree upon an equitable level of change to the Managed Service Fees

on a going forward basis.  Vastera also

agrees to identify material changes in operating efficiencies separate from

business levels and, to the extent such operating efficiencies result in a

material reduction of Vastera’s cost of performing the services hereunder,  the parties agree to negotiate an equitable

change to the Managed Service Fees.”

 

 

Schedule G. Section 2 to the

Services Agreement shall be deleted in its entirety and replaced by the

following Section 2:

 

“2.          Project-based

Gainsharing Fees

 

The parties agree that

from time to time they shall meet and confer regarding cost saving measures

that may be adopted by Ford and the corresponding project to be undertaken by

Vastera to implement such cost-savings measures.  Ford and Vastera agree that Vastera shall be entitled to receive

a gainsharing fee equal in amount to 35% of any net cost savings to Ford from

such project in the first twelve months the cost-saving measures are in

effect.  Any gainsharing is dependent on

establishing a cost reduction from a baseline and implementing the cost savings

measures.  In the event the cost-saving

measure is not implemented by Ford within twelve months of completion of the

project, Vastera shall not be entitled to gainsharing should Ford later

undertake similar cost-saving measures. Reductions to the Managed Service Fees

set forth above shall not be subject to this gainsharing provision.”

 

3.             Preservation of

all other terms and conditions of Services Agreement. 

 

Except as set forth in this Amendment No. 13 and as

previously set forth in all prior Amendments to the Services Agreement, all

other terms and conditions of the Services Agreement shall remain unaltered and

in full force and effect.  Should there

arise any conflict, 

 

2

 

discrepancy or ambiguity between the terms and conditions contained in

the Services Agreement and the terms and conditions of this Amendment No. 13,

the terms and conditions contained in this Amendment No. 13 shall govern and

prevail.

 

4.             Choice of Law.

 

The terms and conditions set forth in this Amendment

No. 13 as with the terms and conditions of the Services Agreement and all

Schedules made a part thereof shall be governed by, and construed and enforced

in accordance with, the laws of the State of Michigan, other than conflict of

laws principles thereof directing the application of any law other than that of

Michigan.

 

5.             Counterparts.

 

This Amendment No. 13 may be executed in two

counterparts, each of which will be an original, and both of which, when taken

together, shall constitute one and the same instrument.

 

IN WITNESS WHEREOF, the parties hereto have executed

this Amendment No. 13 to the Global Trade Services Agreement as of the date

first written above.

 

	

  FORD

  MOTOR COMPANY

  	

  VASTERA

  SOLUTION SERVICES CORPORATION

  
	

   

  	

   

  
	

  By:

  	

   

  	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

   

  
	

  Name:

  	

   

  	

   

  	

  Name:

  	

   

  	

   

  
	

   

  	

  [Print Name]

  	

   

  	

  [Print Name]

  
	

   

  	

   

  
	

  Title:

  	

   

  	

   

  	

  Title:

  	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  By:

  	

   

  	

   

  	

   

  
	

   

  	

   

  
	

  Name:

  	

   

  	

   

  	

   

  
	

   

  	

  [Print Name]

  	

   

  
	

   

  	

   

  
	

  Title:

  	

   

  	

   

  	

   

  
																

 

3

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