Document:

Exhibit
10.19

 

 

 

 

 

SERVICE
AGREEMENT

 

 

 

 

 

entered
into by and between

 

 

 

 

 

 

 

 

Medex
GmbH

—           a limited liability company under German law —

represented by its [shareholders’ meeting]

 

 

 

—           hereinafter referred to as the “Company” —

 

 

 

and

 

 

 

Dr.
Georg Landsberg

 

 

 

On the date of execution of this Agreement
Dr. Landsberg is appointed managing director of the Company.  To the extent as provided below in
Article 9.1, this Agreement shall regulate the employment relationship
between the Company and Dr. Landsberg.

 

Article
1

Area of
Responsibility

 

 

1.               Dr. Landsberg
shall continue his work as managing director of the Company.  The distribution of tasks and
responsibilities shall result from the Schedule of Responsibilities of the
Management of the Company.  The Schedule
of Responsibilities may be amended at any time to reflect the development of
the Company, as well as its operational requirements.  Within this context, currently
Dr. Landsberg shall be responsible for Continental Operations.  He shall report to the Managing Director of
Smiths Medical International, currently Mr. Martin Jamieson.

 

2.               Dr. Landsberg
shall perform his duties and responsibilities in compliance with all statutory
provisions, in particular in compliance with the German “GmbH-Gesetz”
(Limited Liabilities Companies Act), as well as the Articles of Association of
the Company and the By-laws for the Management, as amended from time to time,
and devote all his efforts, professional know-how, and experience to the
Company.

 

Dr. Landsberg represents
the Company alone and is exempt from the restrictions imposed by
section `181 of the (German) “BGB” [Civil Code].  The Company reserves the right at any time to
appoint further managing directors and to establish a different arrangement
regarding the Company’s representation.

 

3.               Upon the
Company’s request, Dr. Landsberg shall also assume further
responsibilities in enterprises affiliated with the Company, as a managing
board member, managing director, supervisory board member, or similar executive
officer.  Dr. Landsberg further
shall join and assume responsibilities in trade associations and similar
organizations, to the extent this is considered to be in the best interest of
the Company.  Except as otherwise agreed
upon by the parties hereto, the assumption of such responsibilities shall not
establish any additional employment contract or service agreement.

 

In the event that
Dr. Landsberg receives any separate compensation for holding such
positions and offices, such compensation shall be set off against the
compensation payable under the terms of this Service Agreement.

 

Dr. Landsberg shall
resign from all of the aforementioned positions and offices whenever the
Company’s shareholders’ meeting so requests, at the latest upon his ceasing to
be employed by the Company (whether upon termination of his employment,
resignation, retirement, or upon his being released from his work for the
Company.)

 

 

 

Article
2

Compensation

 

 

1.               Dr. Landsberg
shall receive the following compensation for his services:

 

a)              An annual
salary in the gross amount of €234,000.00 (in words: Euro two hundred
thirty-four thousand), payable in 12 equal installments, at the end of each
month;

 

b)             A one-time
bonus, payable shortly after Smiths Group plc announces its results for
the year ended 31 July 2005, of a maximum of 50% of base salary, pro-rated
for the period from the date this Agreement becomes effective, according to
Article 9.1 — until 31 July 2005, depending on performance against
agreed objectives;

 

 

c)              Effective
1 August 2005, an annual bonus agreement will be offered according to the
Smiths Medical bonus arrangements that can be amended from time to time, and in
the sole discretion of the shareholders’ meeting.  The bonus, if any, will amount to a maximum
of 50% of base salary and would be payable shortly after Smiths Group plc
announces its results for that year.  The
bonus arrangements will depend on the performance of Smiths Medical as a whole
and the successful completion of personal objectives agreed with
Dr. Landsberg.

 

2.               To induce
Smiths Group plc’s affiliates to enter into the transactions contemplated
by the Agreement and Plan of Merger dated as of 5 December 2004 (the “Merger
Agreement”), by and among the Smiths Medical Holdco Limited, Forest Acquisition
Corp., MedVest Holdings Corporation (“MedVest”), and each of the individual stockholders
of MedVest signatories to the Merger Agreement, and OEP MedVest LLC, as
representative on behalf of the stockholders of MedVest, for which you will
receive substantial benefit, you and the Company hereby agree that (a) the
benefits (the “Control Payments”) under Section (c) of the Severance and
Non-Compete Agreement dated 21 May 2003 (the “Existing Agreement”) between
Dr. Landsberg and Medex Inc., (b) the remaining payments to be made
in accordance with Section 7 of the Existing Agreement (the “Compete
Payment”), and (c) your bonus for the 2004 fiscal year (the “Bonus Payment,”
and together with the Change in Control Payment and the Compete Payment, the “Transition
Payments”) shall be paid in accordance with Section 3 below.  You hereby agree that you will not be
entitled to receive the Compete Payment or the Bonus Payment if you voluntarily
terminate your employment during the Transition Period (as defined in
Section 3 below), and you will not be entitled to receive the Change in
Control Payment if you voluntarily terminate your employment before the first
anniversary of the closing (the “Closing”) of the transactions contemplated by
the Merger Agreement.

 

3.               The “Transition
Period” shall be the period beginning on the Closing and ending on
31 December 2005.  The Company shall
pay in full the Compete Payment and the Bonus Payment, plus interest thereon at
the prime rate as published in the Eastern edition of the Wall Street Journal from
the Closing to the date of payment, on the earlier of (i) the date the
Company terminates your employment, (ii) the date you terminate your
employment for Good Reason (as defined below) or on account of your death or
disability, or (iii) 31 December 2005, so long as you remain employed
with the Company during the entire Transition Period.  “Good Reason” shall mean (A) a material
breach by the 

 

 

 

Company
of any material obligation under this Agreement that is not curable or that is
not cured within thirty days after written notice thereof by Dr. Landsberg
to the Company, or (B) relocation of Dr. Landsberg from the present
metropolitan area of employment, without Dr. Landsberg’s consent.  The company shall pay in full the Change in
Control Payment on the earlier of (i) the date the Company terminates your
employment, (ii) the termination of your employment for Good Reason or on account
of your death or disability, or (iii) the first anniversary of the Closing
so long as you remain employed with the Company during the entire twelve month
period following the Closing.  For the
duration of your employment with the Company following the first anniversary of
the Closing, the provisions s set out in this Agreement shall apply.

 

4.               The
compensation provided for in Article 2.1 above shall be deemed full
consideration for all services performed under this Service Agreement,
including any services Dr. Landsberg may for operational reasons be
required to perform outside the Company’s regular business hours.

 

5.               The compensation
shall be reviewed annually in accordance with Smiths Medical’s policies.  This does not constitute any entitlement of
Dr. Landsberg to a pay rise.

 

6.               To the extent
that not otherwise stipulated in this Article 2, the compensation
stipulated herein shall be payable on a pro-rata basis if this Service
Agreement does not subsist for a full twelve months in any given calendar year.

 

7.               The assignment
or pledging of claims of compensation hereunder shall be subject to the prior
written approval of the shareholders’ meeting.

 

 

Article
3

Benefits
in Kind; D&O Insurance

 

 

1.               The Company
shall provide Dr. Landsberg with a company car of a class customary for
similarly situated executives for both professional and private use.  The Company shall pay all costs, including
insurance premiums, motor vehicle taxes, cost of repairs, fuel, oil, etc.,
incurred in connection with the maintenance and use of the vehicle.

 

Except from his spouse
living in a common household, nobody besides Dr. Landsberg is authorized to
drive the company car. 
Dr. Landsberg hereby waives any and all claims against the Company
which may accrue to him, his family members, or any third parties in connection
with the private use of the Company car, and agrees to indemnify the Company
from or against any and all claims brought against the Company by family
members or third parties, to the extent that such claims are not covered by the
insurance policies taken out with regard to the Company car.

 

The Company shall also
provide a mobile phone for Dr. Landsberg’s use on business.

 

2.               The Company
shall reimburse Dr. Landsberg for all reasonable expenses incurred within
the scope of his employment upon presentation of a voucher indicating the
amount and business purpose and supported by appropriate documentation, subject
however, to the Company’s guidelines, if any, as applicable from time to time
and in compliance with applicable tax laws.

 

 

 

3.               The Company
shall provide reasonable and adequate coverage for the benefit of
Dr. Landsberg under Smiths Group’s D&O policy, provided coverage under
such D&O insurance is commercially available and can be obtained at
reasonable costs.

 

4.               Dr. Landsberg
shall be responsible for all wage taxes payable on benefits in kind provided by
the Company.

 

 

Article
4

Prevention
from Work

Continued
Payment of Compensation in the Event of Illness or Accident

 

 

1.               In the event
that he is prevented from the performance of his duties for a considerable
period of time, Dr. Landsberg shall inform the shareholders’ meeting without
undue delay, also stating the reasons for such incapacity.

 

2.               In the event of
his temporary disability due to illness, accident, or any other cause not due
to the fault of Dr. Landsberg, Dr. Landsberg shall be entitled to
continued payment of compensation in the amounts stipulated in Article 2.1
lit. a) of this Service Agreement for an uninterrupted period of three
months or until termination of this Service Agreement, whichever occurs first.

 

 

Article
5

Vacation

 

Dr. Landsberg shall be entitled to a
vacation of 30 working days per calendar year.  For the purposes of this provision, “working
day” shall mean all business days with the exception of Saturdays.  The duration and dates of such vacation shall
be coordinated with the other managing directors, if any, and agreed to by the
shareholders’ meeting.  The vacation days
that have accrued during any one vacation year shall be used by March 31
of the following year, otherwise they shall be forfeited.

 

 

Article 6

Secondary
Employment / Non-Compete / Conflicts of Interest

 

1.               Any secondary
employment, whether compensated or uncompensated, that could affect the
interests of the Company shall require the prior approval of the shareholders’
meeting.  The foregoing shall apply, mutatis mutandis, if Dr. Landsberg assumes any
responsibilities on supervisory boards, advisory boards, or similar bodies of
enterprises not affiliated with the Company. 
In case of doubt, the opinion of the shareholders’ meeting shall be
sought before taking on such secondary employment.  Before taking on any secondary employment,
prior notice shall be given to the shareholders’ meeting.

 

2.               Dr. Landsberg
undertakes to refrain from competing with the Company or any companies
affiliated with the Company for the duration of this Service Agreement.  In particular, Dr. Landsberg shall not
acquire any interests in competitors of the Company, transact business on
behalf of such competitors, be it for his own account or for the account of 

 

 

 

third
parties, or provide any other services to such competitors.  Excepted from the foregoing shall be the
acquisition of shares in publicly traded companies, provided that such
acquisitions do not give him a considerable influence over the actions of such
Company.

 

Furthermore,
Dr. Landsberg undertakes to strictly comply with all insider trading
regulations stipulated by the law and/or by the Company, each as amended from
time to time.

 

3.               In the interest
of both parties, Dr. Landsberg shall disclose to the shareholders’ meeting
any conflict of interests arising in connection with the performance of his
duties and responsibilities.  The
foregoing provision shall apply, in particular, if customers, suppliers, or any
other business partners of the Company or affiliated with the Company are
relatives, personal friends, or close business associates of
Dr. Landsberg, or stand in a close relationship with such relatives,
personal friends, or close business associates. 
The duty of disclosure shall not be limited to cases in which a conflict
of interest may have a specific effect on the performance of Dr. Landsberg’s
duties and responsibilities; rather, the mere appearance of a conflict of
interest shall be sufficient to give rise to such a duty.

 

 

 

Article
7

Duty of
Confidentiality;

Exclusive
License to Use Work Results; Inventions

 

1.               Dr. Landsberg
shall keep all business affairs of the Company and enterprises affiliated with
the Company confidential, if such affairs are confidential in nature and/or
have not already become public knowledge. 
Dr. Landsberg further shall not grant any third parties access to
the Company’s records and files.  These
obligations shall continue even after termination of this Service Agreement.

 

2.               All work
results produced by Dr. Landsberg in the performance of his duties and
responsibilities shall be the exclusive property of the Company.  To the extent that such work results are
protected by copyright, Dr. Landsberg hereby grants the Company the
exclusive and unlimited license to use such work results in all forms
conceivable now or at a later date.  This
exclusive license shall survive termination of this Service Agreement.  Dr. Landsberg shall not be entitled to
any additional compensation for the exclusive license granted to the Company
hereunder.  The compensation stipulated
in this Service Agreement shall be deemed full and adequate consideration for
the exclusive license granted to the Company hereunder.

 

3.               The Company
shall be entitled to exclusive use of any inventions and proposed technical
improvements, as well as any patents, utility models and designs, etc.,
developed by Dr. Landsberg in the performance of his duties and
responsibilities as managing director, without additional payment.  The (German) “Arbeitnehmererfindungsgesetz”
(Act on Employees’ Inventions) shall apply, except for the provisions providing
for the inventor’s claim to compensation.

 

 

 

Article
8

Return
of Property

 

 

Following termination of this Service
Agreement or Dr. Landsberg’s release from work, Dr. Landsberg shall,
of his own accord, return to the Company all objects due to the Company or
enterprises affiliated with the Company in his possession, including all
documents, notes, and instruments, as well as other data stored by technical
means, including any copies thereof.  The
foregoing duty shall especially include the duty to return the Company car
provided to Dr. Landsberg pursuant to Article 3.1 of this
Agreement.  The right to retain any
documents or objects defined in this section is expressly excluded.  Dr. Landsberg shall not be entitled to
any compensation or damages for returning Company property prior to termination
of this Service Agreement.  Upon
termination of his employment relationship, Dr. Landsberg shall affirm in
writing the full discharge of his duty to return property.

 

 

 

Article
9

Term of
Employment and Termination

 

 

1.               This Service
Agreement is subject to the occurrence of, and shall become effective on the
day of the Closing.

 

2.               This Service
Agreement shall be for an initial fixed term of one year from the date of the
Closing.  Thereafter, this Service
Agreement may be terminated by either contracting party by giving three months’
notice prior to the end of a calendar month. 
The right to terminate this Service Agreement for good cause
(Section 626 of the German “BGB” [Civil Code]) shall not be affected
thereby.  If the appointment as managing
director ends without simultaneous termination of the Service Agreement,
Dr. Landsberg shall be released from his duty to work according to Article 9.4
for the remaining term of the Agreement, and the Company shall continue to pay
the compensation stipulated in Article 2.1 lit. a).

 

3.               The termination
of this Service Agreement shall only be valid if made in writing.

 

4.               The Company
shall have the right, at any time, in particular if notice of termination has
been given by either of the contracting parties, to release Dr. Landsberg
from his duty to work (such release being either irrevocable or in a form that
it can be revoked), provided that the Company shall continue to pay the
contractual compensation due to Dr. Landsberg pursuant to Article 2.1
lit. a).  In the event of an irrevocable
release of Dr. Landsberg from work, the time of such release shall be
taken into account in calculating the managing director’s claim to
vacation.  For periods of release from
work during which continued payment of compensation is not set off against
unused vacation claims, any income which Dr. Landsberg receives from
another occupation or maliciously fails to acquire, shall be set off against
his compensation claim.

5.               This Service
Agreement shall end, without notice of termination being required, at the end
of the month in which Dr. Landsberg attains the age of 65, as well in case
of his becoming incapable of gainful employment according to Section 43 of
the (German) “SGB VI” (Social Code vol. 6).

 

 

 

Article
10

Insurance
Benefits

 

 

If Dr. Landsberg requests, the Company
will — by means of contribution — make annual contributions of €1,752 (in
words:  Euro one thousand seven hundred
fifty-two) gross on behalf of Dr. Landsberg to an insurance company in
accordance with the provisions of a direct insurance (Direktversicherung).

 

 

 

Article
11

Final
Provisions

 

 

1.               To the extent
that this Service Agreement enters into force according to Article 9.1
above, it shall supersede all former agreements regarding the employment
relationship that may hitherto have been concluded by the parties and/or any
other affiliate, and/or subsidiary of the Company, especially, but not
exclusively, the Severance and Non-Compete Agreement dated 21 May 2003,
between Medex Inc. and Dr. Landsberg.

 

2.               To the extent
that this Service Agreement enters into force according to Article 9.1
above, Dr. Landsberg hereby waives all and any possible claims arising
from all former agreements regarding the employment relationship that may
hitherto have been concluded by the parties and/or any other affiliate, and/or
subsidiary of the Company, especially, but not exclusively, arising from the
Severance and Non-Compete Agreement dated 21 May 2003, between
Medex Inc. and Dr. Landsberg.

 

3.               This Service
Agreement contains all the agreements and arrangements made between the
parties.  There are no oral side
agreements.  For the avoidance of doubt,
this Service Agreement shall be governed by German Law.

 

4.               Modifications
of and/or amendments to this Agreement shall only valid if made in
writing.  This shall also apply to the
cancellation or amendment of the requirement of the written form.

 

5.               If any
provision hereof is or becomes invalid, the validity of the other provisions
hereof shall not be affected thereby.  In
such a case, the invalid provision shall be replaced with a valid provision
which is as consistent as possible with the economic purpose of the invalid
provision intended by the parties to this Agreement.  This shall also apply if a provision is or
becomes invalid on account of the scope or extent of an obligation or a time
period.  In such case, the legally
admissible scope or extent of obligation or time period shall apply.

 

6.               Dr. Landsberg
acknowledges receipt of one original counterpart of this Agreement duly signed
by each party hereto on this day.

 

 

	
  Place and date

   

  	
   

  	
   

  	
  Place and date

  	
  Dusseldorf

  December 4, 2004

  
	
   

  	
   

  	
   

  
	
  Medex GmbH,

  	
   

  	
  /s/  Dr. Georg Landsberg

  	
   

  
	
  Represented by its
  [shareholders’ meeting]

   

   

   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

 

 

	
  Place and date

   

  	
   

  	
   

  	
   

  	
   

  
	
   

  We agree with Article 11.1
  and accept the waiver in Article 11.2

  
	
   

  Medex Inc.

  represented by

   

   

  	
   

  	
   

  
	
  /s/ Dominick A. ArenaExhibit
10.1

 

EMPLOYMENT AGREEMENT

 

AGREEMENT made as of the 8th day of
September, 2004, by and between Computer Horizons Corp., a New York corporation
with offices at 49 Old Bloomfield Avenue, Mountain Lakes, New Jersey 07046
(hereinafter called the “Company”), and John Ferdinandi (hereinafter called the
“Executive”).

 

W I T N E S S E T H:

 

WHEREAS, the Executive is employed as
Controller of the Company

 

WHEREAS, the
Company desires to continue the employment the Executive in the current
position within the Company and the Executive is willing to serve the Company
in such capacity; and

 

WHEREAS, the Company and the Executive desire
to set forth the terms and conditions of such employment.

 

NOW THEREFORE, in consideration of the
foregoing premises and of the mutual covenants and agreements herein contained,
the Company and the Executive agree as follows:

 

1.                                       Employment.  The Company hereby agrees to employ the
Executive on the terms and conditions herein contained.

 

2.                                       Term.  Except as otherwise provided in this
Agreement, the Executive shall be employed under this Agreement for a one year
period commencing on the date hereof (the “Employment Term”). In the event that
the Company does not intend to renew the Executive’s employment at the end of
this Employment Term, the Company shall notify the Executive of this in writing
at least three months prior to the expiration of this Employment Term. In the
event the company fails to provide a timely notice as stated above, the
agreement shall automatically renew for another consecutive one year period.

 

3.             Duties.  The Executive shall serve as the Company’s
Controller.  In such capacity the
Executive shall report to the Chief Financial Officer of the Company (the “CFO”)
and shall reasonably perform such duties and functions, consistent with his
status as a senior executive of the Company, as may be assigned by the
CFO.  During the Employment Term, the
Executive shall devote substantially all of his business time and his best
efforts, energies, skills and attention to the business and affairs of the
Company.  The foregoing shall not limit
the Executive’s right to be involved in civic or charitable activities and
manage his own personal investments, provided that such activities do not
materially interfere with his providing of his services hereunder.

 

4.             Salary
and Bonus.

 

(a) 
During the Employment Term, the Company shall pay the Executive, in
accordance with its normal payroll practices and subject to required
withholding, a base salary at

 

1

 

the rate of $125,000 per annum. 
The base salary payable to the Executive hereunder may be increased, but
not decreased, from time to time, in the discretion of the CFO, subject to the
approval and ratification of the CEO and the Board of Directors. (The base
salary, as it may be increased from time to time, is hereinafter referred to as
the “Base Salary”). The Executive shall also receive the other compensation in
the form of bonus and stock options articulated in his offer letter of August 5,
2004.

 

(b) 
During the Employment Term, the Executive shall be entitled to receive,
in addition to the Base Salary, such additional compensation, if any, as the
CFO may, in his discretion, subject to the approval and ratification of the CEO
and the Board of Directors, award the Executive.

 

5.                                       Other
Compensation and Benefits.  During
the Employment Term, the Executive shall be entitled to:

 

(a)                                  participate in all
benefit, pension, retirement, deferred compensation, savings, welfare and other
employee benefit plans and policies in which members of the Company’s senior
management generally are entitled to participate (collectively, the “Benefit
Plans”), in accordance with their respective terms as in effect from time to
time;

 

(b)                                 receipt of all fringe
benefits and perquisites maintained by the Company from time to time for
members of senior management generally, in accordance with the policies of the
Company with regard to such benefits and perquisites as in effect from time to
time;

 

(c)                                  vacation of 3 weeks
in the first year of employment and 4 weeks per year thereafter;

 

(d)                                 such other
compensation, if any, as the Company may, in its sole discretion, award to the
Executive.

 

6.                                       Death Prior
to Termination of Employment.  If the
Executive shall die during the Employment Term, the Company shall have no
liability or further obligation except as follows:

 

(a)                                  The Company shall pay
the Executive’s estate or designated beneficiaries, as applicable, when
otherwise due, any unpaid Base Salary for the period prior to the Executive’s
death, any declared or awarded but unpaid bonuses, whether pursuant to any
bonus plan or otherwise, any unpaid amounts due under any incentive plan in
accordance with its terms, and any other unpaid amounts due the Executive under
any other Benefit Plans in accordance with the terms of such Benefit Plans
(collectively, the “Entitlements”). (b) The Executive’s estate or designated
beneficiaries, as applicable, shall have such rights, if any, under the Benefit
Plans and all other employee benefit, fringe benefit or incentive plans
maintained or offered by the Company as may be provided in such plans and any
grants to the Executive thereunder in accordance with their respective terms
(collectively, the “Rights”).

 

7.                                       Termination
Due to Disability.  If the Executive
shall become physically or mentally incapable of performing his duties as
provided in Section 3 of this Agreement and such incapacity shall last for
a period of at least one hundred eighty (180) consecutive days, the Company
may, at its election at any time thereafter while the Executive remains
incapable of performing his duties hereunder, terminate the Executive’s
employment hereunder, effective immediately, by giving the Executive written
notice of such termination.  In such event,
the

 

2

 

Company shall have no other obligation to the Executive of his
dependents hereunder other than the obligation to pay or provide the
Entitlements and the Rights.

 

8.                                       Termination
for Cause.  The Company may terminate
the Executive’s employment hereunder for Cause by giving the Executive ten days’
written notice of such termination.  For
purposes of this Agreement, Cause shall mean: (a) the Executive’s embezzlement,
willful breach of fiduciary duty or fraud with regard to the Company or any of
its assets or businesses, (b) during the employment term, the Executive’s
conviction of, or pleading of nolo  contendere with regard to, a
felony (other than a traffic violation) or any other crime involving moral
turpitude with regard to the Company or any of its assets or businesses, or (c)
during the employment term, any other breach by the Executive of a material
provision of this Agreement that remains uncured for thirty (30) days after
written notice thereof is given to the Executive.  In such event, the Company shall have no
obligation to the Executive or his dependents other than to pay, when otherwise
due, any unpaid Base Salary for the period prior to such termination and to pay
or provide the Rights.  In addition, the
Company shall be entitled to exercise all rights and remedies against the
Executive that it may have under applicable law.

 

9.                                       Termination
for Good Reason.  The Executive may
terminate his employment hereunder for Good Reason upon written notice thereof
to the Company.  For purposes of this
Agreement, “Good Reason” shall mean the occurrence or failure to cause the
occurrence (as applicable) of any of the following events without the Executive’s
express prior written consent: (a) any material demotion of the Executive, any
material reduction in the Executive’s authority or responsibility or any other
material change in the terms of the Executive’s employment which is
inconsistent with Section 3 and Section 4 hereof; (b) the failure of
any successor or assign of the Company (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to assume specifically the
obligations of the Company hereunder in accordance with Section 17 of this
Agreement; (c) any breach by the Company of any material provision of this
Agreement that is not cured by the Company within 30 days after written notice
thereof from the Executive; or (d) if a Change of Control has occurred, either
(i) assuming that the Company’s finances permit cash bonuses to be paid to any
executive, the failure to provide the Executive with a cash bonus for each
fiscal year of the Company ending during the Employment Term and after the
Change of Control at least equal to the highest bonus earned by, or awarded to,
the Executive in respect of any fiscal year of the Company ending prior to the
Change of Control or, if higher, the fiscal year in which such Change of
Control occurs, or (ii) the failure by the Company to continue in effect any
Benefit Plan in which the Executive or any of his dependents is participating
immediately prior to such Change of Control or plans or arrangements that in
the aggregate provide the Executive with substantially similar benefits, or the
taking of any action by the Company that would adversely affect the Executive’s
or his dependent’s participation in, or reduce the Executive’s or his dependent’s
benefits under, any of such Benefit Plans or arrangements or the replacements
thereof, providing that the foregoing shall not limit the Company’s right to
make changes in such plans to comply with applicable laws or otherwise,
provided that the Company shall otherwise compensate the Executive for any loss
(including but not limited to tax benefits) to the Executive as a result of
such changes.

 

10.                                 Consequences of
Termination of Employment by the Executive for Good Reason or by the Company
Without Cause.  Subject to Section 12
hereof, in the event the Executive terminates his employment for Good Reason
pursuant to Section 9 hereof or the Company terminates the Executive’s
employment other than for Cause or Disability, then the Company shall be deemed
to have breached this Agreement, and the Executive shall be entitled to
exercise all rights and remedies that he may have hereunder and under
applicable law.  Without limiting the
generality of the preceding sentence, the Company shall in any event 

 

3

 

accelerate any unvested stock options designated to the Executive to
fully vested and pay to the Executive, the following : (a) the Separation
Rights as described in Section 12 hereof; (b) the Entitlements, and (c)
the Rights, all within five (5) days of the date of termination of employment.
Subject to Section 12, which shall govern in the event that a change of
control has occurred, in the case where no change of control has occurred and
the Executive’s contract expires and is not renewed, the Company shall not be
deemed to be in breach, but the Executive shall be entitled to one year of
salary or one and one half weeks salary for every year of employment with the
Company, whichever is greater, and the Entitlements and the Rights, to be paid
within five (5) days of the date of cessation of employment.

 

11.                                 Consequences of
Termination of Employment by the Executive without Good Reason.  If Executive’s employment hereunder is
terminated by the Executive without Good Reason, the Company shall have no
other obligation to the Executive hereunder other than the obligation to pay or
provide the Entitlements and the Rights.

 

12.                                 Change of Control.

 

(a) 
Subject to Subsection 12(b) hereof, if, and only if, a Change of
Control of the Company shall occur and either (i) the Executive continues to be
employed by the Company through the end of the Employment Term or (ii) after
such Change of Control the Executive terminates his employment for Good Reason
or the Company terminates the Executive’s employment other than for Cause or
Disability, then the Executive shall be entitled to receive from the Company
(without limiting any additional rights that he may have under applicable law
in the case of termination prior to the expiration of the Employment Term),
within five (5) days after the termination of the Executive’s employment, a
lump sum payment equal to the sum of (x) the Entitlements and (y) the sum of
(1) the Executive’s Base Salary remaining on the then – current contract term
or one year of base salary, whichever is greater (the “Separation Rights”). The
Company shall also provide the Rights. In the event that the change of control
occurs coterminous with the time for notice of contract renewal, and the
acquiring entity gives timely notice of non-renewal, then the Executive shall
be entitled to the payment of one year’s base salary, calculated from the date
of notice of non-renewal, within (5) five days after termination of the
Executive’s employment, in addition to the Entitlements and Rights as noted
above..

 

(b) 
Notwithstanding anything else herein, to the extent the Executive would
be subject to the excise tax under Section 4999 of the Internal Revenue
Code of 1986, as amended (the “Code”), on the amounts in Section 2(a)
above and such other amounts or benefits he received from the Company and
required to be included in the calculation of parachute payments for purposes
of Sections 280G and 4999 of the Code, the amounts provided under this
Agreement shall be automatically reduced to an amount one dollar less than the
amount that, when combined with such other amounts and benefits required to be
so included, would subject the Executive to the excise tax under Section 4999
of the Code if, and only if, the reduced amount received by the Executive would
be greater than the unreduced amount to be received by the Executive minus the
excise tax payable under Section 4999 of the Code on such amount and the
other amounts and benefits received by the Executive and required to be
included in the calculation of a parachute payment for purposes of Section 280G
and 4999 of the Code.

 

(c) 
For purposes of this Agreement, a “Change of Control” shall be deemed to
have occurred if: (i) any person (as defined in Section 3(a)(9) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), and as used
in Section 13(d) and 14(d) thereof), excluding the Company, any Subsidiary
and any employee benefit plan sponsored or maintained by the Company or any
Subsidiary (including any trustee of any such plan acting in his capacity

 

4

 

as trustee), but including a “group” as defined in Section 13(d)(3)
of the Exchange Act, becomes the beneficial owner of shares of the Company
having at least 20% of the total number of votes that may be cast for the
election of directors of the Company; (ii) the shareholders of the Company
shall approve any merger or other business combination of the Company, sale of
all or substantially all of the Company’s assets or combination of the
foregoing transactions (a “Transaction”), other than a Transaction involving
only the Company and one or more of its Subsidiaries, or a Transaction
immediately following which the shareholders of the Company immediately prior
to the Transaction continue to have a majority of the voting power in the
resulting entity (excluding for this purpose any shareholder owning directly or
indirectly more than 10% of the shares of the other company involved in the
Transaction), or (iii) within any 24 month period beginning on or after the
date hereof, the persons who were directors of the Company immediately before
the beginning of such period (the “Incumbent Directors”) shall cease (for any
reason other than death) to constitute at least a majority of the Board or the
board of directors of any successor to the Company, provided that, any director
who was not a director as of the date hereof shall be deemed to be an Incumbent
Director if such director was elected to the Board by, or on the recommendation
of or with the approval of, at least two-thirds of the directors who then
qualified as Incumbent Directors either actually or by prior operation of this Section 12(b)
unless such election, recommendation or approval was the result of an actual or
threatened election contest of the type contemplated by Regulation 14a-11
promulgated under the Exchange Act or any successor provision.  Notwithstanding the foregoing, no Change of
Control of the Company shall be deemed to have occurred for purposes of this
Agreement by reason of any actions or events in which the Executive
participates in a capacity other than in his capacity as an executive or
director of the Company, provided that the Executive’s voting or tendering,
exchanging or otherwise disposing of any or all his shares of the Company’s
capital stock shall not be deemed participation.  For purposes of this Section 12(b), “Subsidiary”
shall mean any entity in which the Company owns, directly or indirectly, at
least 50% of the outstanding securities generally entitled to vote for the
election of directors.

 

13.                                 Non-Competition;
Confidential Information.

 

(a) 
The Executive agrees that, if he terminates his employment without Good
Reason (except pursuant to Section 12) hereunder or he is terminated for
Cause, he will not, for a period of one year after such termination of
employment with the Company, in any manner, directly or indirectly (or have a
substantial ownership in, manage, operate, or control any entity which shall
directly or indirectly): (i) perform, or cause to be performed, or solicit or
aid, in any manner, solicitation of, any work of a type performed by the
Company for any firm, corporation, or other entity (“Customer”) with which, at
any time during the twelve (12) month period prior to termination of the
Employment Period, the Executive, on behalf of the Company or any Subsidiary,
conducted any business, or (ii) induce any personnel to leave the service of
the Company or of any Subsidiary thereof.

 

(b) 
The Executive shall hold in a fiduciary capacity for the benefit of the
Company all secret or confidential information, knowledge or data relating to
the Company or any of its affiliated companies, and their respective
businesses: (i) obtained by the Executive during his employment by the Company
or any of its affiliated companies and (ii) not otherwise public knowledge or
known within the Company’’ industry. 
After termination of the Executive’s employment with the Company, the
Executive shall not, without the prior written consent of the Company, unless
compelled pursuant to the order of a court or other body having jurisdiction
over such matter or upon the advice of counsel, communicate or divulge any such
information, knowledge or data to anyone other than the Company and those
designated by it.

 

5

 

(c) 
The Executive agrees that the remedy at law for any breach by him of the
foregoing shall be inadequate and that the Company shall be entitled to
injunctive relief.  This Section constitutes
an independent and separable covenant that shall be enforceable notwithstanding
any right or remedy that the Company may have under any other provision of this
Agreement or otherwise.

 

14.           Garnishment.  The benefits payable under this Agreement
shall not be subject to garnishment, execution or levy of any kind, and any
attempt to cause any benefits to be so subjected shall not be recognized.

 

15.           Notice.  Any notice or other communication required or
permitted hereunder shall be in writing and shall be delivered personally, or
sent by certified mail, return receipt requested, by Federal Express, Express
Mail or similar overnight delivery or courier service, or by telecopy, answerback
received.  Notice to the Executive shall
be delivered to his address set forth at the head of this Agreement, and notice
to the Company shall be sent as follows:

 

General Counsel

Computer Horizons Corp.

49 Old Bloomfield Avenue

Mountain Lakes, New Jersey 07096

 

Any notice given by certified mail shall be
deemed given five days after the time of certification thereof.  Any notice given by other means permitted by
this Section 13 will be deemed given at the time of receipt thereof.

 

Any party may by notice given in accordance
with this Section to the other parties, designate another address or
person for receipt of notices hereunder.

 

16.                                 Applicable Law.  This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of New Jersey
without reference to its conflict of law provisions.

 

17.                                 Successors; Binding
Agreement.  The Company shall require
any successor (whether direct or indirect, by purchase of stock or assets,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company, expressly to assume and agree, in a written
instrument in form and substance satisfactory to the Executive and his counsel,
to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken
place.  Notwithstanding anything herein
to the contrary, this Agreement may not be assigned by the Company without
prior written consent of the Executive. 
This Agreement shall inure to the benefit of, and be enforceable by, the
Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees.  This Agreement is personal to the Executive
and neither this Agreement nor any rights hereunder may be assigned by the
Executive.

 

18.                                 No Mitigation; No
Set-Off.  The Company agrees that if
the Executive’s employment with the Company is terminated during the Employment
Term for any reason whatsoever, the Executive is not required to seek other
employment or to attempt in any way to reduce any amounts payable to the
Executive by the Company pursuant to this Agreement.  Further, the amount of any payment or benefit
provided for in this Agreement shall not be

 

6

 

reduced by any compensation earned by the Executive or benefit provided
to the Executive as the result of employment by another employer or otherwise.

 

19.                                 Miscellaneous.  No provisions of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by the Executive and such officer of the
Company as may be specifically designated by the Board of Directors of the
Company.  No waiver by either party hereto
of any breach by the other party hereto of, or compliance with, any condition
or provision of this Agreement shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or subsequent
time.  This Agreement constitutes the
entire Agreement between the parties hereto pertaining to the subject matter
hereof.  No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly
set forth in this Agreement. This Agreement supercedes any others which may
have been signed prior to this one. The Company represents and warrants that
its execution and delivery of this agreement has been duly authorized by proper
corporate action.

 

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

 

21.                                 Separability.  If any provisions of this Agreement shall be
declared to be invalid or unenforceable, in whole or in part, such invalidity
or unenforceability shall not affect the remaining provisions hereof which
shall remain in full force and effect.

 

22.                                 Non-Exclusivity of
Rights.  Nothing in this Agreement
shall prejudice, prevent or limit the Executive’s previously vested rights
under, or continuing or future participation in, any benefit, bonus, incentive,
equity or other plan or program provided by the Company and for which the
Executive may qualify, nor shall anything herein limit or otherwise prejudice
such rights as the Executive may have under any other currently existing plan
or agreement regarding severance from employment with the Company or statutory
entitlements.

 

23.                                 Beneficiary.  The Executive shall be entitled to select
(and change, to the extent permitted under any applicable law) a beneficiary or
beneficiaries to receive any compensation or benefit payable under this
Employment Agreement following his death by giving the Company written notice
thereof in accordance with applicable Company policies.  In the event of the Executive’s death or a
judicial determination or his incompetence, reference in this Agreement to the
Executive shall be deemed, where appropriate, to refer to his beneficiary
estate or other legal representative.

 

IN WITNESS WHEREOF, the Company has caused
this Agreement to be duly executed and the Executive has hereunto set his hand
as of the date first set forth above.

 

	
   

  	
  COMPUTER HORIZONS CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William J. Murphy     4/10/2005

  	
   

  
	
   

  	
  President
  and CEO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John E. Ferdinandi     4/10/2005

  	
   

  
					

 

7

 

August 5, 2004

 

 

John Ferdinandi

4 Penwood Drive

Morris Plains, NJ  07950

 

Dear John:

 

On behalf of Computer Horizons Corp. (CHC), I am pleased to extend to
you an offer of employment for the position of Controller commencing on September 8,
2004.

 

Your compensation and benefits package includes the following:

•                  A
starting semi-monthly salary of $5,208.33.

•                  A
one time sign-on bonus of $15,000.00 payable on September 15, 2004.  In the event you should voluntarily resign
prior to September 8, 2005, CHC will expect repayment of this bonus on a
pro-rata basis.

•                  An
incentive stock option award of 5,000 shares of CHC stock.  You will receive a separate document
detailing the terms and conditions (such as vesting, strike price, etc.) of
this stock award upon your date of hire.

•                  Discretionary
annual management bonus based on the profitability of Computer Horizons Corp.

•                  Three
weeks vacation time immediately upon hire. 
Should you not use this vacation time within your first year of service,
or should you voluntarily resign prior to September 8, 2005 any unused
vacation balance will be forfeited. 
Beginning September 1, 2005 and thereafter, you will be awarded
four weeks of vacation time annually in accordance with our normal vacation
policy.

•                  401(k)
and employee stock purchase plans.

•                  Medical
insurance and prescription drug coverage through UnitedHealthcare.  Dental coverage through Aetna. Vision
coverage through Vision Service Plan.

•                  Life
insurance, short-term and long-term disability insurance.

•                  Medical
and dependent flex spending programs.

•                  Tuition
reimbursement, adoption benefit program, prepaid legal services, and long-term
care insurance

 

Each CHC benefit plan has eligibility requirements.  Comprehensive details pertaining to each
benefit program will be provided to you during orientation.  CHC continually reviews its benefits and
reserves the right to make changes to the program at any time.

 

8

 

John Ferdinandi

August 5, 2004

 

John, as the Company embarks upon the most exciting period in its
history, it will look to you and others like you to fulfill the promise of our efforts
to date.  This letter is intended to
express the Company’s sincere confidence in your talents and your ability to
assist us in building the future.

 

Your signature below will be your indication of acceptance of our
offer.  This offer letter, if accepted,
must be signed no later than August 9, 2004 and returned to the following
address:  Susan Muller, Mgr. Compensation
& Employee Benefits, Computer Horizons Corp., 49 Old Bloomfield Ave.,
Mountain Lakes, NJ  07046.

 

	
  Sincerely,

  
	
  Computer Horizons Corp.

  
	
   

  
	
  /s/Michael J. Shea

  	
   

  
	
   

  
	
  Michael J. Shea

  
	
  Vice President & CFO

  
	
   

  
	
  Accepted:

  
	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
    

  	
   

  
	
  Signature:

  	
  /s/ John Ferdinandi

  	
   

  	
  Date:

  	
    August 9,
  2004

  	
   

  
	
  John
  Ferdinandi

  	
   

  	
   

  
							

 

9

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