Document:

DRAFT:  12/12/00

Exhibit

10.1

 

EXE

TECHNOLOGIES, INC.

 

FIRST AMENDMENT TO

EMPLOYMENT AGREEMENT

 

This First Amendment to

Employment Agreement (this “Amendment”) is dated as of February 19, 2002, by

and between Michael A. Burstein (the “Employee”) and EXE Technologies, Inc. (the

“Company”) and amends that certain Employment Agreement dated as of August 9,

1999 (the “Agreement”) between the Employee and the Company.

 

WHEREAS, since the execution of the Agreement,

Employee’s duties, responsibilities and compensation have changed; and

 

WHEREAS, the parties desire to amend the Agreement to,

among other things, reflect such changes, in accordance with the terms and

conditions set forth below.

 

NOW, THEREFORE, in consideration of the mutual

covenants set forth herein and intending to be legally bound hereby, the

parties agree as follows:

 

1.             Definitions.  All capitalized terms used in this Amendment

shall have the same meaning as those contained in the Agreement unless

otherwise defined herein.

 

2.             Section

4.2.  Section 4.2 of the Agreement

is hereby deleted in its entirety and replaced by the text below:

 

4.2           Incentive

Compensation Program.  The Employee

shall be entitled to participate in the Incentive Compensation Plan for 2002

that has been established by the Company and any successor plans  (the “Incentive Program”) based upon the

achievement of written corporate and individual objectives determined under the

Incentive Program by the Employee’s Reporting Manager.  Under the Incentive Program the Employee’s

target will be $175,000, of which at least 40% will be cash compensation and up

to 60% will be incentive stock options to purchase the Company’s Common

Stock.  The relative percentages between

cash and options will be determined by the Company in its discretion for each

payment; provided that any payments in options must apply in an equal

percentage for all other participating executive officers.  If any payment is made in options, then the

Company will value the options based upon the formula adopted by the Company

for use with other participating executive officers to value options under the

Incentive Program.  The Employee’s

actual payments under the Incentive Program will vary depending on Company and

individual performance and will be payable quarterly in accordance with the Company’s

normal practices.

 

 

3.             Section

4.3(a).  Section 4.3(a) is hereby

deleted in its entirety and replaced with the following:

 

4.3(a)      The

Employee acknowledges that the Company granted the Employee the stock options

listed on Schedule B hereto, with the exercise prices and, subject to Section

4.3(d) below, vesting schedule listed on Schedule B hereto. The options shall

be subject to and in accordance with the provisions of the Amended and Restated

1997 Stock Option Plan of the Company (the “Plan”), as then in effect.

 

4.             Sections

4.3(d) and (e).  New Sections 4.3(d)

and (e) are added as follows:

 

(d)  All of

Employee’s stock options, whenever granted by the Company, shall immediately

vest upon the termination date in the event that the Employee’s employment with

the Company is terminated due to death or Disability (as hereinafter defined).

 

(e)  If

Employee’s employment is terminated prior to July 1, 2002 (except in the case

of voluntary termination on any date prior to June 30, 2002 and except in the

case of termination for cause), all of Employee’s then-vested option grants,

whenever granted by the Company, shall be deemed amended to allow for

post-termination exercise through the second business day after the Company’s

final earnings press release for the fourth quarter of 2002.

 

5.             Section

4.6.  A new Section 4.6 is hereby

added as follows:

 

4.6.          Loan.  The Company has loaned the Employee two

hundred fifty thousand dollars ($250,000.00) (the “Loan”), evidenced by a

promissory note.  The Loan shall become

due and payable upon the fourth anniversary of the Loan and interest shall be

payable annually at a rate of eight and one half percent (8.5%); provided,

however, that notwithstanding any other provisions of this Agreement to the

contrary, provided that (i) Employee does not voluntarily leave the Company

prior to June 30, 2002 and (ii) Employee is not terminated on or prior to that

date for cause, then the unpaid amount thereof, including accrued interest,

shall be forgiven by the Company, effective July 1, 2002.  Employee shall be solely responsible for the

tax consequences of any such forgiveness. 

As security for the Loan, the Employee has entered into a Stock Pledge

Agreement pursuant to which the Employee has pledged to the Company 25,000

shares of the Common Stock of the Company underlying options held by the

Employee.  The Loan is being made to

facilitate the Employee’s other financial commitments and not to purchase any

additional capital stock of the Company.

 

6.             Schedules.  Schedules A and B of the Agreement are

hereby deleted in their entirety and are replaced by Schedule A and B,

respectively, attached hereto.

 

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7.             Section

8.1.  Section 8.1 (including the

paragraph preceding Section 8.1) of the Agreement is hereby deleted in its

entirety and replaced with the following:

 

Termination

of Employment.   The Employee’s employment hereunder may be

terminated upon the occurrence of any one of the events described in this

Section 8.  Upon termination of the

Employee’s employment, the Employee shall be entitled only to such compensation

and benefits as described in this Section 8.

 

8.1           Termination

for Disability.

 

(a)           In

the event of the disability of the Employee such that the Employee is unable to

perform the duties and responsibilities hereunder to the full extent required

by this Agreement by reasons of illness, injury or incapacity for a period of

more than sixty (60)  consecutive days

or more than forty-five (45) days, in the aggregate, during any ninety (90) day

period (“Disability”), the Employee’s employment hereunder may be terminated by

the Company.

 

(b)           In

the event of a termination of the Employee’s employment hereunder pursuant to

Section 8.1(a), the Employee will be entitled to receive (i) all accrued and

unpaid (as of the date of such termination) portion of Base Salary and other

forms of compensation and benefits payable or provided in accordance with the

terms of any then existing compensation or benefit plan or arrangement,

including payment prescribed under any disability or life insurance plan or

arrangement in which he/she is a participant or to which he/she is a party as

an employee of the Company; (ii) continuation of the Base Salary then in effect

as of the date of such termination for a period of twelve (12) months following

the date of termination, payable in the Company’s standard payroll cycle; and

(iii) the Employee’s bonus for the twelve (12) month period specified in

8.1(ii) above, in an amount equal to (A) the percentage of annualized target

bonus actually received in the aggregate by the Employee for the final fully

served four (4) calendar quarters, multiplied by (B) the Employee’s current

annualized target bonus on the date of termination, which bonus shall be paid

in a lump-sum thirty (30) days following the date of termination; provided that

the Employee has complied with all of his/her obligations under this Agreement

and continues to comply with all of his/her surviving obligations hereunder

listed in Section 10.  Except as

specifically set forth in this Section 8.1(b), the Company shall have no

liability or obligation to the Employee for compensation or benefits hereunder

by reason of such termination.

 

8.             Section 8.2. 

Section 8.2 of the Agreement is hereby deleted in its entirety and

replaced by the text below:

 

8.2             Termination by Death.  In the event that the Employee dies during

the Term, the Employee’s employment hereunder shall be terminated thereby and

the Company shall pay to the Employee’s executors, legal representatives or

administrators an amount equal to: (i) the accrued and unpaid (as of the date

of such termination) portion of the Base Salary and other compensation; (ii)

continuation of the Base Salary then in effect as of the date of such

 

3

 

termination for a period of twelve (12) months following the date of

termination, payable in the Company’s standard payroll cycle; and (iii) the

Employee’s bonus for the twelve (12) month period specified in 8.2(ii) above,

in an amount equal to (A) the percentage of annualized target bonus actually

received in the aggregate by the Employee for the final fully served four (4)

calendar quarters, multiplied by (B) the Employee’s current annualized target

bonus on the date of termination, which bonus shall be paid in a lump-sum

thirty (30) days following the date of termination; provided that the Employee

has complied with all of his/her obligations under this Agreement and continues

to comply with all of his/her surviving obligations hereunder listed in Section

10.  Except as specifically set forth in

this Section 8.2, the Company shall have no liability or obligation to the

Employee for compensation or benefits hereunder by reason of such

termination.  Except as specifically set

forth in this Section 8.2, the Company shall have no liability or obligation

hereunder to the Employee’s executors, legal representatives, administrators,

heirs or assigns or any other person claiming under or through him/her by

reason of the Employee’s death, except that the Employee’s executors, legal

representatives or administrators will be entitled to receive the payment

prescribed under any death or disability benefits plan in which he/she is a

participant as an employee of the Company, and to exercise any rights afforded

under any compensation or benefit plan then in effect.

 

9.             Section 8.4. 

Section 8.4 of the Agreement is hereby deleted in its entirety and

replaced by the text below:

 

8.4             Termination Without Cause by

Either Party.

 

(a)           Subject

to Sections 4.3(e) and 4.6, either party may terminate the Employee’s

employment hereunder during the Term, for any reason, without cause, effective

upon the date designated by the terminating party, with a minimum of thirty

(30) days’ written notice.

 

(b)           In

the event of a termination of the Employee’s employment hereunder pursuant to

Section 8.4(a) by the Company, the Employee shall be entitled to receive all

accrued (as of the effective date of the Employee’s termination) but unpaid

Base Salary, benefits and bonuses. The amounts to be paid to Employee under the

preceding sentence shall be paid in accordance with the Company’s normal

payroll and incentive compensation distribution cycle then in effect.  In addition, in the event of a termination

of the Employee’s employment hereunder pursuant to Section 8.4(a) by the

Company prior to June 30, 2002, Employee will receive continuation of the Base

Salary then in effect as of the date of such termination through June 30,

2002.  Except as specifically set forth in

this Section 8.4(b), the Company shall have no liability or obligation to the

Employee for compensation or benefits hereunder by reason of such

termination.  Employee acknowledges

that, as a condition to participation in such severance plan, Employee must

complete in good faith such employee exit forms then in use by the Company at

the time Employee’s employment is terminated and acknowledge in writing on such

forms then in use by the Company, Employee’s obligations to the Company

including, but not limited to, Employee’s obligations with respect to

confidentiality and Company property set forth in Sections 5 and 6 hereof and

Employee’s obligations with respect to the Covenant not to Compete set forth in

Section 7 hereof.  All Base Salary,

benefits and bonuses shall cease at the time of

 

4

 

such termination, subject to the terms of any benefit or compensation

plan then in force and applicable to the Employee.  Except as specifically set forth in this Section 8.4, the Company

shall have no liability or obligation hereunder by reason of such termination.

 

(c)           The

provisions regarding (i) Termination Without Cause and (ii) Termination Without

Cause or for Good Reason within 12 months of a Change of Control, previously

approved by the Compensation Committee of the Board of Directors, shall not

apply unless Employee continues in the employment of the Company beyond June

30, 2002, in which case the parties shall negotiate an additional amendment to

the Agreement to reflect such terms.

 

10.                                 Section

8.5.  Section 8.5 of the Agreement

is hereby deleted in its entirety and replaced by the text below:

 

8.5           Reserved.

 

11.                                       Section

8.6.  Section 8.6 of the Agreement

is hereby deleted in its entirety and replaced by the text below:

 

8.6           Except

as otherwise provided in this Agreement, upon the termination of the Employee’s

employment pursuant to this Section 8 for any reason, all further vesting on

all stock options and/or restricted stock in the Company held by the Employee

shall immediately cease as of such date and thereafter any vested stock options

shall be exercisable and any restricted stock or other equity securities held

by the Employee shall be subject to repurchase by the Company in accordance

with their respective terms and the terms of any related agreements between the

Company and the Employee.

 

5

 

12.           Miscellaneous.  The Agreement shall remain in full force and

effect, subject only to the changes herein specified.  The Agreement, as modified by this Amendment, constitutes the

entire understanding between the parties with respect to the subject matter

hereof and supersedes any prior understandings and/or written or oral

agreements between them.  All references

to the Agreement in any other documents shall mean the Agreement as amended

hereby and from time to time hereafter in writing.  This Amendment shall be governed by the laws of the State of

Texas, without regard to the principles of conflicts of laws of any jurisdiction.

 

IN WITNESS WHEREOF, the

parties have executed this Amendment as of the date first above written.

 

	

  EMPLOYEE:

  	

  EXE TECHNOLOGIES, INC.

  
	

   

  	

   

  	

   

  
	

  /s/ Michael A. Burstein

  	

   

  	

  /s/

  Raymond R. Hood

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:  Raymond R. Hood

  
	

  Michael A. Burstein

  	

   

  	

   

  
	

   

  	

  Title:  Chairman and Chief Executive Officer

  
							

 

6

 

SCHEDULE A

 

EMPLOYMENT

and COMPENSATION

 

	

  Position:

  	

   

  	

  Senior Vice President, Finance, Chief Financial Officer

  and Treasurer

  
	

   

  	

   

  	

   

  
	

  Reporting

  Manager:

  	

   

  	

  President & CEO

  
	

   

  	

   

  	

   

  
	

  Initial Base Monthly Salary:

  	

   

  	

  $12,500 per month

  
	

   

  	

   

  	

   

  
	

  Current

  Base Annual Salary:

  	

   

  	

  $225,000

  
	

   

  	

   

  	

   

  
	

  ICP:

  	

   

  	

  Subject to Section 4.2, eligible for up to $175,000

  based upon successful Company performance under the Incentive Program.

  
	

   

  	

   

  	

   

  
	

  Responsibilities:

  	

   

  	

  Job Description to be added

  

 

7

 

SCHEDULE B

 

OPTION VESTING SCHEDULE

 

Initial

Stock Option Grant:

 

A

stock option to purchase 40,000 shares of Common Stock of the Company was

granted to the Employee on October 1, 1999. 

The exercise price is $3.00 per share. 

The vesting will be as follows:

 

(a)  10,000

shares on August 1, 2000;

 

(b)  10,000 shares on August 1,

2001;

 

(c)  10,000 shares on August 1,

2002; and

 

(d)  10,000 shares on August 1,

2003.

 

Second

Stock Option Grant:

 

A

stock option to purchase 60,000 shares of Common Stock of the Company was

granted to the Employee on January 12, 2000. 

The exercise price is $3.00 per share. 

The vesting will be as follows:

 

(a)  15,000

shares on the date of grant;

 

(b)  15,000

shares on the first anniversary of the date of grant;

 

(c)  15,000 shares on the second

anniversary of the date of grant; and

 

(d)  15,000 shares on the third

anniversary of the date of grant.

 

Third

Stock Option Grant:

 

A

stock option to purchase 80,000 shares of Common Stock of the Company was

granted to the Employee on May 3, 2000. 

The exercise price is $7.50 per share. 

The vesting is as follows:

 

(a)  20,000

shares on the date of grant;

 

(b)  20,000 shares on the first

anniversary of the date of grant;

 

8

 

(c)  20,000 shares on the second

anniversary of the date of grant; and

 

(d)  20,000 shares on the third

anniversary of the date of grant.

 

Fourth

Stock Option Grant:

 

A stock option to purchase 120,000 shares of Common Stock of the

Company was granted to the Employee on August 3, 2000.  The exercise price is $8.00 per share.  The vesting is as follows:

 

(a)  30,000 shares on the first anniversary of

the date of grant;

 

(b)  30,000 shares on the second anniversary of

the date of grant;

 

(c)  30,000 shares on the third anniversary of

the date of grant; and

 

(d)  30,000 shares on the fourth anniversary of

the date of grant.

 

Fifth

Stock Option Grant:

 

A stock option to purchase 100,000 shares of Common Stock of the

Company was granted to the Employee on October 23, 2001.  The exercise price is $2.00 per share.  The vesting is as follows:

 

36 equal monthly installments on the last day of each month beginning

October 31, 2001.

 

Sixth

Stock Option Grant:

 

A stock option to purchase 100,000 shares of Common Stock of the

Company was granted to the Employee on February 19, 2002.  The exercise price is $2.05 per share.  The vesting is as follows:

 

12 equal monthly installments on the last day of each month beginning

January 31, 2002.

 

9AMENDMENT TO

Exhibit 10.17

 

AMENDMENT TO

MAGNETEK, INC.

AMENDED AND RESTATED DIRECTOR COMPENSATION

AND DEFERRAL INVESTMENT PLAN

 

Magnetek, Inc, (the

“Company”) previously approved and adopted the Magnetek, Inc. Amended and

Restated Director Compensation and Deferral Investment Plan (the “Plan”) to

align the interests of its outside directors with those of the Company's

shareholders and to enhance its ability to attract and retain directors of

outstanding competence.

 

The Plan currently

provides that benefits under the Plan made be paid in either cash or in shares

of Company stock, in the Board's discretion. By this instrument, the Company

desires to amend the Plan to provide that the payment of benefits from the Plan

will only be made in shares of Company stock, provided that cash in lieu of

fractional shares of Stock may be distributed.

 

1.      This Amendment is effective for

distributions from the Plan occurring on or after the date this Amendment is

approved by the Board of Directors of the Company.

 

2.      Article 6 of the Plan is hereby amended by

amending and restating Section 6.6 as follows:

 

All

payment of deferred amounts hereunder shall be made in shares of Stock,

provided that cash in lieu of fractional shares of Stock may be distributed.

 

3.      Article 6 of the Plan is hereby amended by

deleting the word "cash" in Section 6.7(a) and (b).

 

4.      This Amendment shall amend only the

provisions of the Plan as set forth herein. 

Those provisions of the Plan not expressly amended hereby shall be

considered in full force and effect.

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