Document:

EX-10.bo - Separation Agreement

 

EXHIBIT 10.bo

SEPARATION AGREEMENT

     Grahame Rance (“Rance”) and SBS Technologies, Inc. (“SBS”), enter into
this Separation Agreement (“Separation Agreement”), effective April 26, 2002
(the “Effective Date”) for the purpose of completely resolving any and all
issues, disputes and claims related to Rance’s employment with SBS, Rance’s
resignation from SBS, the March 9, 2001 Employment Agreement between Rance and
SBS (the “Employment Agreement”), all other agreements, written or oral,
between Rance and SBS, and all other matters related in any way to the
relationship between Rance and SBS.

     1.     Resignation. As of the Effective Date, Rance resigns all employment,
offices and board of directors positions with SBS and any affiliated entities.

     2.     Payments. SBS will pay Rance a total of eight (8) months’ base pay
(three hundred thirty-three thousand, three hundred thirty-four dollars
[$333,334] gross, less usual deductions for taxes, FICA, etc.) (the “Separation
Amount”), in eight (8) equal monthly installments. The first installment of the
Separation Amount will be paid within five (5) days of the Effective Date. The
remaining seven (7) installments of the Separation Amount will be paid monthly
beginning one (1) month after the Effective Date. Rance authorizes SBS to
withhold from the Separation Amount, in addition to usual deductions and
withholdings, any and all federal and state tax withholdings required as the
result of the Loan forgiveness described in paragraph 3 of this Agreement or as
the result of any of the other terms of Rance’s compensation or benefits
described in this Agreement.

     3.     Restricted Stock, Options and Loan Forgiveness. Rance will immediately
and irrevocably return to SBS thirty thousand (30,000) shares of SBS common
stock (five thousand [5,000] for which the restrictions lapsed on March 9, 2002
and twenty-five thousand [25,000] for which the restrictions still exist).
Rance hereby waives and releases all rights and interest in such 30,000 shares
and further agrees to immediately return the certificates evidencing such
shares and to execute and deliver such stock powers and other documents as may
be reasonably required by SBS to effect such conveyance. All unvested stock
options, as well as vested but unexercised stock options, will terminate and be
forfeited at midnight on the ninetieth (90th) day following the Effective Date.
There will be no acceleration of vesting of any stock options. Except to the
extent specifically addressed herein, the SBS Technologies, Inc. 2000 Long-Term
Equity Incentive Plan and the SBS Technologies, Inc. 1993 Director and Officer
Stock Option Plan will continue to govern any vested options held by Rance as
of the Effective Date. Rance acknowledges and agrees that the one million,
eight hundred ninety-three thousand, seven hundred fifty dollar ($1,893,750)
loan (“Loan”) that he has previously received from SBS is hereby forgiven as of
the Effective Date.

     4.     Benefits. During the seven-month period of the Separation Amount
installment payments, Rance will continue to be eligible, at his election, for
SBS medical (excluding long term disability), dental and eye care benefits
(“Specified Benefits”) on the same basis as if he were still employed during
said seven-month term. All SBS benefits other than the Specified Benefits will
cease immediately on the Effective Date.

     5.     Club Membership. Rance agrees to resign immediately from any and all
club memberships that SBS has provided for him and authorizes SBS to make any
communications

 

 

and take any and all steps reasonably necessary to ensure that such
resignations have occurred and that SBS will not be liable for future club
dues, initiation fees or other fees or costs.

     6.     Release. In return for the payments and other consideration described
herein, Rance, for himself, his heirs and assigns, hereby releases and waives
all claims and causes of action of any and every sort against SBS and its
parents, subsidiaries, affiliates, partners, limited partners, successors,
shareholders, directors, officers, employees, agents, attorneys and assigns,
which he has, has had or may have in the future, arising in any way from any
event, act or omission which occurred at any time from the beginning of time to
the Effective Date, including, but not limited to, claims and causes of action
arising from or related to his employment with SBS and the termination of his
employment with SBS. This release includes, but is not limited to, claims in
tort, contract, under statute, in equity or otherwise, and claims for
compensation, severance, bonuses, stock, stock options, restricted stock
benefits, loan forgiveness, expense reimbursements of any sort, injuries, or
any other sort of damages or relief whatsoever. This release also includes,
but is not limited to, claims under the Americans With Disabilities Act, Age
Discrimination in Employment Act, Family and Medical Leave Act, Title VII of
the Civil Rights Act of 1964, the Fair Labor Standards Act, the California Fair
Employment and Housing Act and any other federal, state or local act or
ordinance pertaining to employment. This release also specifically includes
but is not limited to all claims arising from or relating to the Employment
Agreement, SBS Technologies, Inc. 2000 Long Term Equity Incentive Plan, and SBS
Technologies, Inc. 1993 Director and Officer Stock Option Plan as well as any
agreements regarding restricted stock and any loan agreements. The intent of
Rance and SBS is that this release given by Rance to SBS will be interpreted in
as broad a fashion as possible and that it is intended to be a total and
complete release of all claims of any sort whatsoever against SBS.

     7.     Knowing and Voluntary Waiver. Rance hereby expressly waives and
relinquishes all rights and benefits afforded him by Section 1542 of the Civil
Code of the State of California, and does so understanding and acknowledging
the significance of such specific waiver of Section 1542. Section 1542 of the
Civil Code of the State of California states as follows:

	 	 	 	A general release does not extend to claims, which the
creditor does not know or suspect to exist in his
favor at the time of executing the release, which if
known by him must have materially affected his
settlement with the debtor.

     Thus, notwithstanding the provisions of Section 1542, and for the purpose
of implementing a full and complete release and discharge of SBS, Rance
expressly acknowledges that this Separation Agreement is intended to include in
its effect, without limitation, all Claims against SBS which Rance does not
know of or suspect to exist in his favor at the time of execution hereof, and
that this Separation Agreement contemplates the extinguishment of any such
Claim or Claims.

     8.     Surviving Employment Agreement Obligations. Rance and SBS agree that
the provisions of paragraphs 6A (Competition Restrictions), 6B (Confidential
Information), 6C (Business Relationships), 6D (Non-Solicitation of Employees),
6E (Remedies) and 7 (Invalidity)

2

 

of the Employment Agreement will remain in full force and effect in
accordance with their terms. All other terms of the Employment Agreement are
terminated as of the Effective Date.

     9.     Agreement regarding Additional Confidential Information. In addition to
Rance’s continuing obligations to SBS regarding confidentiality as set forth in
paragraph 6B of the Employment Agreement and paragraph 7 of this Separation
Agreement), Rance agrees not to disclose to any person or entity any Additional
Confidential Information of SBS. “Additional Confidential Information” is
information of tangible or intangible value that is not generally known or
available to SBS competitors including, but not limited to (a) financial and
accounting statements, data and forecasts; business plans and projections;
operating and capital costs and performance; computer programs; price lists and
pricing information; and the terms of all contracts and agreements proposed,
negotiated or executed by SBS; (b) information regarding SBS customers,
suppliers, manufacturers, and distributors; (c) information regarding any offer
by any person or entity to acquire SBS or its assets or to merge with SBS or
any offer by SBS to acquire any entity or assets or to merge with any entity;
and (d) the terms of this Separation Agreement. The only exception to Rance’s
obligation not to disclose Additional Confidential Information is that he may
disclose the terms of this Separation Agreement to his spouse, legal advisors
and tax advisors.

     10.     Non-disparagement/public announcement. Rance and SBS agree not to
make negative or disparaging remarks of any sort regarding one another. SBS
agrees to announce to the public that Rance resigned to pursue other business
interests.

     11.     Return of Property. No later than 72 hours after the Effective Date,
Rance will return to SBS all property of any sort belonging to SBS, including
but not limited to keys, computers, computer passwords, equipment, originals
and all copies of computer discs, files or other stored information, documents
and voice, video or data recordings of any sort that are within his possession
or control.

     12.     Governing law. This Separation Agreement is made under, and will be
construed in accordance with, the laws of the State of California.

PLEASE READ CAREFULLY.

THIS SEPARATION AGREEMENT AND GENERAL RELEASE

INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

	 	 	 	 	 	 	 	 	 
	SBS TECHNOLOGIES, INC.	 	 	 	GRAHAME RANCE
	 
	By:	
/s/ C.J. Amenson

	 	 	 	/s/ G.E.R.

	 	
Its:
	CEO

	 	 	 	Date:
	4-28-02

	 	 	4-28-02	 	 	 	 

3EX-10.bp - Employment Agreements

 

EXHIBIT 10.bp

EMPLOYMENT AGREEMENT

     SBS Technologies, Inc. (“Company”) and David H. Greig (“Employee”) agree,
effective April 26, 2002:

	 	1.	 	Employment. Company employs Employee for the period
beginning on the date of this Employment Agreement as set forth
below, and ending three years from its date or upon discharge or
resignation of Employee in accordance with the terms of this
Agreement (the “Employment Period”). During the Employment Period,
Employee will serve in the position of President and Chief Operating
Officer of Company, or other management position as determined by
the Company. Employee will devote sufficient time and energies to
the business of Company to accomplish the duties assigned, will
perform to the best of Employee’s ability all duties assigned to
Employee by Company and will devote Employee’s best efforts to
advance the interests of Company. Employee will have the power and
authority determined by Company.
	 
	 	2.	 	Compensation. For all services performed by Employee for
Company during the Employment Period, Company will pay Employee the
salary and benefits set forth on Appendix “A”. Employee will be
entitled to participate in employee benefit programs established by
Company and applicable to all full-time employees. Employee will be
entitled to vacation, national holidays and paid sick leave in
accordance with Company policy and Appendix A. During vacation,
national holidays, and paid sick leave, Employee will receive
Employee’s usual compensation.
	 
	 	3.	 	Reimbursement of Expenses. Company recognizes that Employee,
in performing Employee’s duties hereunder, may be required to spend
sums of money in connection with those duties for the benefit of
Company. Employee may present to Company an itemized voucher
listing expenses paid by Employee in the performance of Employee’s
duties on behalf of Company, and on presentation of the itemized
voucher, Company will reimburse Employee for all reasonable expenses
itemized, including but not limited to, travel, meals, lodging,
entertainment, and promotion with respect to all activities approved
in advance by Company. Employee may receive advances from Company
for anticipated expenses. Employee agrees that the amount by which
an advance exceeds actual expenses (“Amount”) will be promptly
refunded to Company upon determination by Company that it is due,
that the Amount may be deducted from any payments of any nature
(including without limitation salary) owed by Company to employee,
and that the Amount will constitute a debt from Employee to Company,
enforceable by Company in all respects as if

 

 

Employment Agreement

Page 1

 

 

	 	 	 	Employee had executed a promissory note or other instrument
acknowledging the debt, bearing interest at a rate of 10% per year
from the date repayment is due, and payable in full on demand
without set-off or deduction.
	 
	 	4.	 	Sick Leave and Disability. Employee will be entitled to
sick leave for the number of days determined by Company (“Sick
Leave”). Employee will be considered to be disabled during any
period in excess of Sick Leave during which Employee is unable to
work because of illness or incapacity (“Disability Period”).Employee
will be entitled to receive Employee’s full salary during Sick Leave
and will be deemed to be on leave, without pay, during the
Disability Period. If Employee is unable to work for a period in
excess of 90 days, Employee, at the discretion of the Board of
Directors of company, will be considered to have resigned. In no
event will Employee be entitled to payment or other compensation for
unused Sick Leave or Disability Period, unless required by law or
otherwise provided in a policy or employment manual adopted by
Company.
	 
	 	5.	 	Resignation and Discharge. Employee may resign or be
discharged pursuant to the terms of this paragraph. If Employee (i)
resigns, Employee must give 30 days’ notice to Company; (ii) is
discharged for cause (as later defined), Company may discharge
Employee immediately, without notice; or (iii) is discharged not for
cause from his responsibilities, Company must give 30 days’ notice
to Employee. If Employee is discharged not for cause, Employee will
be paid severance pay equal to six month’s base pay in effect at the
time of termination payable in monthly installments.
	 
	 	 	 	For purposes of this paragraph, “for cause” means that during the
Employment Period, Employee, unless otherwise provided by Company
policy or Company employment manual, (a) is reasonably believed by
Company (i) to have failed to comply with any law, regulation or
policy, including without limitation securities or employment or
non-discrimination or similar laws, regulations or policies, and
that failure causes a significant financial, regulatory,
operational or public perception detriment to Company, (ii) to
abuse, as determined by the Company, alcohol or to use drugs,
(other than as prescribed by Employee’s physician), or (b) refuses
to submit to testing for alcohol or drugs, or (c) is reasonably
believed by Company to have committed or is charged with any
felony or misdemeanor involving moral turpitude, or (d) through
willful neglect, gross negligence, or malfeasance causes a
significant financial, regulatory, operational or public
perception detriment to Company. A determination by the Board of
Directors that Employee has

 

 

Employment Agreement

Page 2

 

 

	 	 	 	failed to perform Employee’s responsibilities to the satisfaction
of the Board of Directors, without one or more of the other
elements set out in this paragraph, is not “for cause”.
	 
	 	6.	 	Competition and Confidential Information Restrictions.

	 	A.	 	Competition Restrictions. Employee may not
during the Employment Period, and for a period of two years
following the termination of the Employment Period, anywhere
in the United States, directly or indirectly, own, manage,
operate, invest in, control, be employed by, participate in,
be a financial sponsor of, or be connected in any manner with
the ownership, management, operation or control of any
business that competes with a business conducted by Company
at any time during the Employment Period or which Employee
knows, during the Employment Period, that Company intends to
conduct. Employee acknowledges that this restriction is
necessary for Company’s welfare and protection in light of
the responsibilities assigned to Employee and Employee’s
status in Company, that Employee is fully and adequately
compensated for this restriction.
	 
	 	B.	 	Confidential Information. Employee
acknowledges and recognizes that Employee is, or will be,
employed by Company in a confidential relationship and may
receive and have access to the confidential business
information, customer names, contracts and other customer
data, business methods, techniques and trade secrets of
Company (“Confidential Information”). Employee may develop
ideas, conceptions, inventions, processes, methods, products
and improvements; and Employee may receive disclosures of
ideas, conceptions, inventions, processes, methods, products
and improvements made by other employees of Company (“Company
Inventions”). Employee may participate with Company in
improving and developing Confidential Information and Company
Inventions. Confidential Information and Company Inventions
developed on behalf of Company are neither commonly known nor
readily accessible to others and are used by Company in its
business to obtain a competitive advantage over Company’s
competitors who do not know or use the Confidential
Information or Company Inventions. Protection of the
Confidential Information and Company Inventions against
unauthorized disclosure and use is of critical importance to
Company in maintaining its competitive position. Employee
agrees that Employee will not, at any time, during or after
the Employment Period, make any independent use of, or
disclose to any other

 

 

Employment Agreement

Page 3

 

 

	 	 	 	person or organization, except as authorized by Company in
writing, any Confidential Information or Company
Inventions. Upon termination of the Employment Period for
any reason, Employee shall promptly deliver to Company all
drawings, manuals, letters, notes, notebooks, reports,
customer lists, customer data, mailing lists, and all other
materials and records of any kinds, and all copies thereof,
that may be in the possession of, or under the control of,
Employee pertaining to Company’s business including any
that contain any Confidential Information or Company
Invention.
	 
	 	C.	 	Business Relationships. Employee acknowledges
Company’s efforts to establish valuable business
relationships with its clients, customers and suppliers.
Employee recognizes that Company has invested resources in
the training and the professional development of Employee,
and Employee further recognizes Employee’s responsibility to
the Company when Company entrusts Employee with Confidential
Information. In view of Company’s efforts, Employee agrees
that unless Company authorizes Employee to do so in writing,
Employee will not, for a period of one year after termination
of employment with Company, solicit the purchase of products
or services directly competing with products and services of
Company from any person, corporation, business organization
or enterprise which: (i) has made any purchase of products or
services from Company within the two years immediately
preceding termination of former Employee’s employment
(“Customer”); or (ii) has been contacted by Employee during
the last 12 months of Employee’s employment for the purpose
of securing the purchase of products or services from Company
(“Prospective Customer”).
	 
	 	D.	 	Non-Solicitation of Employees. Employee is
aware that Company has a significant investment in its
employees. For a period of twelve months after termination
for any reason of Employee’s employment, neither Employee nor
any person or entity by whom Employee may be employed or of
which Employee may be an officer, director, partner, trustee
or control person, will directly or indirectly employ or
solicit to employ, or otherwise retain or solicit to retain,
any person employed by Company as of the date of Employee’s
termination of employment or during the twelve month period
thereafter, unless that person has been terminated by Company
without cause (as determined in good faith by Company) before
the time of the solicitation, employment or retention.

 

 

Employment Agreement

Page 4

 

 

	 	E.	 	Remedies. Employee and Company recognize that
irreparable injury may result to Company in the event of
breach or threatened breach of this paragraph of this
Agreement by Employee. If Employee commits a breach or
threatens to commit a breach of any of the provisions of this
paragraph, Company shall have the right and remedy, in
addition to any others that may be available, at law or in
equity, to have the provisions of this paragraph specifically
enforced by any court having equity jurisdiction, together
with an accounting therefor, Employee having specifically
acknowledged that any such breach or threatened breach will
cause irreparable injury to Company and that money damages
will not provide an adequate remedy to Company.

	 	7.	 	Invalidity. If any provision of this Employment Agreement is
later construed to be unenforceable or invalid, the remaining
provisions shall not be affected but shall continue in full effect.
If any term of this Employment Agreement is found to be
unenforceable or invalid by any court having jurisdiction, that
court shall have the power to reduce or revise the term and the
paragraph(s) shall then be fully enforceable.
	 
	 	8.	 	Assignment. Employee acknowledges that Employee’s services
are unique and personal. Accordingly, Employee may not assign
Employee’s rights or delegate Employee’s duties or obligations under
this Agreement. The Employer’s rights and obligations shall inure
to the benefit of and shall be binding upon Employer’s successor and
assigns.
	 
	 	9.	 	Personnel Policies. Company’s written personnel policies
apply to all of Company’s employees, including Employee, and
describe additional terms and conditions of employment of Employee.
Those terms and conditions, as Company may revise from time to time,
are incorporated by reference into this Employment Agreement.
Company reserves the right to revise the personnel policies from
time to time, as Company deems necessary. If any personnel policy
provision conflicts with a provision of this Employment Agreement,
the terms of this Employment Agreement shall govern.
	 
	 	10.	 	Alcohol and Drug Testing. Employee agrees to comply with and
submit to any Company program or policy for testing for alcohol
abuse or use of drugs and, in the absence of such a program or
policy, to submit to such testing as may be required by Company and
administered in accordance with applicable law and regulations.
	 
	 	11.	 	Binding Effect. This Employment Agreement constitutes the
entire understanding of the parties, may be modified only in
writing, is governed

 

 

Employment Agreement

Page 5

 

 

	 	 	 	by laws of the state of New Mexico, and will bind and inure to the
benefit of Employee and Employee’s personal representative and
Company and Company’s successors and assigns.

 

 

Employment Agreement

Page 6

 

 

	 	 	 	 
	DATED: May 9, 2002.	 	 	 
	 
	 	 	 	COMPANY:
	 
	 	 	 	SBS Technologies, Inc.
	 
	 	 	
By:
	/s/ Christopher J. Amenson
	 	 	
Its:
	CEO
	 
	 	 	 	EMPLOYEE:
	 
	 	 	 	/s/ David H. Greig
	 	 	 	David H. Greig

 

 

Employment Agreement

Page 7

 

 

Appendix A

to

Employment Agreement

David H. Greig

Employee

Position: President and Chief Operating Officer of Company, reporting directly
to the Chief Executive.

Compensation: $275,000 base annual salary.

	 	 	 
	Benefits:	 	 
	Standard Employee	 	 
	Benefits:	 	
Medical insurance
	 	 	
Dental insurance
	 	 	
Life Insurance
	 	 	
Long and short-term disability insurance
	 	 	
Ten holidays per year
	 	 	
Sick leave
	 
	Optional Benefits:	 	
401(k) Plan
	 	 	
Flexible Spending Account Program
	 	 	
Supplemental Life Insurance

All Standard and Optional Benefits will be as provided by Company to employees
generally, and are subject to modification from time to time by Company.

	 	 	 
	Additional Benefits:	 	
Four weeks paid vacation per year
	 	 	
Immediate, full vesting under any employee plans

in effect at signing that require vesting

Stock Option Grant: Nonqualified stock options for 100,000 shares of common
stock, with exercise, termination and other terms as provided in an Option
Agreement (“Option Agreement”) and the 1993 Director and Stock Option Plan
under which it is issued, including the following:

     The Options will vest in four installments, vesting as follows:

	 	 	 	 	 
	25,000
	 	April 25, 2003
	25,000
	 	April 25, 2004
	25,000
	 	April 25, 2005
	25,000
	 	April 25, 2006

 

 

Employment Agreement

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All options granted as of this date which have not yet vested will vest
immediately prior to a change of control of the company. The Options will
terminate ten years from the date of grant, and the exercise price for the
options will be the Nasdaq closing price on April 25, 2002.

Moving Expenses: The Company will pay moving expenses in accordance with its
current moving policy for Employee’s to move from Employee’s current residence
in Minnesota to Albuquerque, New Mexico, and Employee agrees to complete this
move as expeditiously as possible

 

 

Employment Agreement

Page 9

 

 

EMPLOYMENT AGREEMENT

     SBS Technologies, Inc. (“Company”) and Clarence W. Peckham (“Employee”)
agree, effective April 26, 2002:

	 	1.	 	Employment. Company employs Employee for the period
beginning on the date of this Employment Agreement as set forth
below, and ending three years from its date or upon discharge or
resignation of Employee in accordance with the terms of this
Agreement (the “Employment Period”). During the Employment Period,
Employee will serve in the position of Executive Vice President and
Member of Executive Committee of the Company, or other management
position as determined by the Company. Employee will devote
sufficient time and energies to the business of Company to
accomplish the duties assigned, will perform to the best of
Employee’s ability all duties assigned to Employee by Company and
will devote Employee’s best efforts to advance the interests of
Company. Employee will have the power and authority determined by
Company.
	 
	 	2.	 	Compensation. For all services performed by Employee for
Company during the Employment Period, Company will pay Employee the
salary and benefits set forth on Appendix “A”. Employee will be
entitled to participate in employee benefit programs established by
Company and applicable to all full-time employees. Employee will be
entitled to vacation, national holidays and paid sick leave in
accordance with Company policy and Appendix A. During vacation,
national holidays, and paid sick leave, Employee will receive
Employee’s usual compensation.
	 
	 	3.	 	Reimbursement of Expenses. Company recognizes that Employee,
in performing Employee’s duties hereunder, may be required to spend
sums of money in connection with those duties for the benefit of
Company. Employee may present to Company an itemized voucher
listing expenses paid by Employee in the performance of Employee’s
duties on behalf of Company, and on presentation of the itemized
voucher, Company will reimburse Employee for all reasonable expenses
itemized, including but not limited to, travel, meals, lodging,
entertainment, and promotion with respect to all activities approved
in advance by Company. Employee may receive advances from Company
for anticipated expenses. Employee agrees that the amount by which
an advance exceeds actual expenses (“Amount”) will be promptly
refunded to Company upon determination by Company that it is due,
that the Amount may be deducted from any payments of any nature
(including without limitation salary) owed by Company to employee,
and that the Amount will constitute a debt from Employee to Company,
enforceable by Company in all respects as if

 

 

Employment Agreement

Page 1

 

 

	 	 	 	Employee had executed a promissory note or other instrument
acknowledging the debt, bearing interest at a rate of 10% per year
from the date repayment is due, and payable in full on demand
without set-off or deduction.
	 
	 	4.	 	Sick Leave and Disability. Employee will be entitled to
sick leave for the number of days determined by Company (“Sick
Leave”). Employee will be considered to be disabled during any
period in excess of Sick Leave during which Employee is unable to
work because of illness or incapacity (“Disability Period”).Employee
will be entitled to receive Employee’s full salary during Sick Leave
and will be deemed to be on leave, without pay, during the
Disability Period. If Employee is unable to work for a period in
excess of 90 days, Employee, at the discretion of the Board of
Directors of company, will be considered to have resigned. In no
event will Employee be entitled to payment or other compensation for
unused Sick Leave or Disability Period, unless required by law or
otherwise provided in a policy or employment manual adopted by
Company.
	 
	 	5.	 	Resignation and Discharge. Employee may resign or be
discharged pursuant to the terms of this paragraph. If Employee (i)
resigns, Employee must give 30 days’ notice to Company; (ii) is
discharged for cause (as later defined), Company may discharge
Employee immediately, without notice; or (iii) is discharged not for
cause from his responsibilities, Company must give 30 days’ notice
to Employee. If Employee is discharged not for cause, Employee will
be paid severance pay equal to six month’s base pay in effect at the
time of termination payable in monthly installments.
	 
	 	 	 	For purposes of this paragraph, “for cause” means that during the
Employment Period, Employee, unless otherwise provided by Company
policy or Company employment manual, (a) is reasonably believed by
Company (i) to have failed to comply with any law, regulation or
policy, including without limitation securities or employment or
non-discrimination or similar laws, regulations or policies, and
that failure causes a significant financial, regulatory,
operational or public perception detriment to Company, (ii) to
abuse, as determined by the Company, alcohol or to use drugs,
(other than as prescribed by Employee’s physician), or (b) refuses
to submit to testing for alcohol or drugs, or (c) is reasonably
believed by Company to have committed or is charged with any
felony or misdemeanor involving moral turpitude, or (d) through
willful neglect, gross negligence, or malfeasance causes a
significant financial, regulatory, operational or public
perception detriment to Company. A determination by the Board of
Directors that Employee has

 

 

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Page 2

 

 

	 	 	 	failed to perform Employee’s responsibilities to the satisfaction
of the Board of Directors, without one or more of the other
elements set out in this paragraph, is not “for cause”.
	 
	 	6.	 	Competition and Confidential Information Restrictions.

	 	A.	 	Competition Restrictions. Employee may not
during the Employment Period, and for a period of two years
following the termination of the Employment Period, anywhere
in the United States, directly or indirectly, own, manage,
operate, invest in, control, be employed by, participate in,
be a financial sponsor of, or be connected in any manner with
the ownership, management, operation or control of any
business that competes with a business conducted by Company
at any time during the Employment Period or which Employee
knows, during the Employment Period, that Company intends to
conduct. Employee acknowledges that this restriction is
necessary for Company’s welfare and protection in light of
the responsibilities assigned to Employee and Employee’s
status in Company, that Employee is fully and adequately
compensated for this restriction.
	 
	 	B.	 	Confidential Information. Employee
acknowledges and recognizes that Employee is, or will be,
employed by Company in a confidential relationship and may
receive and have access to the confidential business
information, customer names, contracts and other customer
data, business methods, techniques and trade secrets of
Company (“Confidential Information”). Employee may develop
ideas, conceptions, inventions, processes, methods, products
and improvements; and Employee may receive disclosures of
ideas, conceptions, inventions, processes, methods, products
and improvements made by other employees of Company (“Company
Inventions”). Employee may participate with Company in
improving and developing Confidential Information and Company
Inventions. Confidential Information and Company Inventions
developed on behalf of Company are neither commonly known nor
readily accessible to others and are used by Company in its
business to obtain a competitive advantage over Company’s
competitors who do not know or use the Confidential
Information or Company Inventions. Protection of the
Confidential Information and Company Inventions against
unauthorized disclosure and use is of critical importance to
Company in maintaining its competitive position. Employee
agrees that Employee will not, at any time, during or after
the Employment Period, make any independent use of, or
disclose to any other

 

 

Employment Agreement

Page 3

 

 

	 	 	 	person or organization, except as authorized by Company in
writing, any Confidential Information or Company
Inventions. Upon termination of the Employment Period for
any reason, Employee shall promptly deliver to Company all
drawings, manuals, letters, notes, notebooks, reports,
customer lists, customer data, mailing lists, and all other
materials and records of any kinds, and all copies thereof,
that may be in the possession of, or under the control of,
Employee pertaining to Company’s business including any
that contain any Confidential Information or Company
Invention.
	 
	 	C.	 	Business Relationships. Employee acknowledges
Company’s efforts to establish valuable business
relationships with its clients, customers and suppliers.
Employee recognizes that Company has invested resources in
the training and the professional development of Employee,
and Employee further recognizes Employee’s responsibility to
the Company when Company entrusts Employee with Confidential
Information. In view of Company’s efforts, Employee agrees
that unless Company authorizes Employee to do so in writing,
Employee will not, for a period of one year after termination
of employment with Company, solicit the purchase of products
or services directly competing with products and services of
Company from any person, corporation, business organization
or enterprise which: (i) has made any purchase of products or
services from Company within the two years immediately
preceding termination of former Employee’s employment
(“Customer”); or (ii) has been contacted by Employee during
the last 12 months of Employee’s employment for the purpose
of securing the purchase of products or services from Company
(“Prospective Customer”).
	 
	 	D.	 	Non-Solicitation of Employees. Employee is
aware that Company has a significant investment in its
employees. For a period of twelve months after termination
for any reason of Employee’s employment, neither Employee nor
any person or entity by whom Employee may be employed or of
which Employee may be an officer, director, partner, trustee
or control person, will directly or indirectly employ or
solicit to employ, or otherwise retain or solicit to retain,
any person employed by Company as of the date of Employee’s
termination of employment or during the twelve month period
thereafter, unless that person has been terminated by Company
without cause (as determined in good faith by Company) before
the time of the solicitation, employment or retention.

 

 

Employment Agreement

Page 4

 

 

	 	E.	 	Remedies. Employee and Company recognize that
irreparable injury may result to Company in the event of
breach or threatened breach of this paragraph of this
Agreement by Employee. If Employee commits a breach or
threatens to commit a breach of any of the provisions of this
paragraph, Company shall have the right and remedy, in
addition to any others that may be available, at law or in
equity, to have the provisions of this paragraph specifically
enforced by any court having equity jurisdiction, together
with an accounting therefor, Employee having specifically
acknowledged that any such breach or threatened breach will
cause irreparable injury to Company and that money damages
will not provide an adequate remedy to Company.

	 	7.	 	Invalidity. If any provision of this Employment Agreement is
later construed to be unenforceable or invalid, the remaining
provisions shall not be affected but shall continue in full effect.
If any term of this Employment Agreement is found to be
unenforceable or invalid by any court having jurisdiction, that
court shall have the power to reduce or revise the term and the
paragraph(s) shall then be fully enforceable.
	 
	 	8.	 	Assignment. Employee acknowledges that Employee’s services
are unique and personal. Accordingly, Employee may not assign
Employee’s rights or delegate Employee’s duties or obligations under
this Agreement. The Employer’s rights and obligations shall inure
to the benefit of and shall be binding upon Employer’s successor and
assigns.
	 
	 	9.	 	Personnel Policies. Company’s written personnel policies
apply to all of Company’s employees, including Employee, and
describe additional terms and conditions of employment of Employee.
Those terms and conditions, as Company may revise from time to time,
are incorporated by reference into this Employment Agreement.
Company reserves the right to revise the personnel policies from
time to time, as Company deems necessary. If any personnel policy
provision conflicts with a provision of this Employment Agreement,
the terms of this Employment Agreement shall govern.
	 
	 	10.	 	Alcohol and Drug Testing. Employee agrees to comply with and
submit to any Company program or policy for testing for alcohol
abuse or use of drugs and, in the absence of such a program or
policy, to submit to such testing as may be required by Company and
administered in accordance with applicable law and regulations.
	 
	 	11.	 	Binding Effect. This Employment Agreement constitutes the
entire understanding of the parties, may be modified only in
writing, is governed

 

 

Employment Agreement

Page 5

 

 

	 	 	 	by laws of the state of New Mexico, and will bind and inure to the
benefit of Employee and Employee’s personal representative and
Company and Company’s successors and assigns.

 

 

Employment Agreement

Page 6

 

 

	 	 	 	 
	DATED: May 9, 2002.	 	 	 
	 
	 	 	 	COMPANY:
	 
	 	 	 	SBS Technologies, Inc.
	 
	 	 	
By:
	/s/ Christopher J. Amenson
	 	 	
Its:
	CEO
	 
	 	 	 	EMPLOYEE:
	 
	 	 	 	/s/ Clarence W. Peckham
	 	 	 	Clarence W. Peckham

 

 

Employment Agreement

Page 7

 

 

Appendix A

to

Employment Agreement

Clarence W. Peckham

Employee

Position: Executive Vice President, President of the Commercial and Government
Group and Member of the Executive Committee of the Company, reporting directly
to the President and Chief Operating Officer.

Compensation: $250,000 base annual salary.

	 	 	 
	Benefits:	 	 
	Standard Employee	 	 
	Benefits:	 	
Medical insurance
	 	 	
Dental insurance
	 	 	
Life Insurance
	 	 	
Long and short-term disability insurance
	 	 	
Ten holidays per year
	 	 	
Sick leave
	 	 	 
	Optional Benefits:	 	
401(k) Plan
	 	 	
Flexible Spending Account Program
	 	 	
Supplemental Life Insurance

All Standard and Optional Benefits will be as provided by Company to employees
generally, and are subject to modification from time to time by Company.

	 	 	 
	Additional Benefits:	 	
Four weeks paid vacation per year
	 	 	
Immediate, full vesting under any employee plans

in effect at signing that require vesting

Stock Option Grant: Nonqualified stock options for 50,000 shares of common
stock, with exercise, termination and other terms as provided in an Option
Agreement (“Option Agreement”) and the 1993 Director and Stock Option Plan
under which it is issued, including the following:

     The Options will vest in four installments, vesting as follows:

	 	 	 	 	 
	12,500
	 	April 25, 2003
	12,500
	 	April 25, 2004
	12,500
	 	April 25, 2005
	12,500
	 	April 25, 2006

 

 

Employment Agreement

Page 8

 

 

All options granted as of this date which have not yet vested will vest
immediately prior to a change of control of the company. The Options will
terminate ten years from the date of grant, and the exercise price for the
options will be the Nasdaq closing price on April 25, 2002.

Moving Expenses: The Company will pay moving expenses in accordance with its
current moving policy for Employee’s to move from Employee’s current residence
in North Carolina to Albuquerque, New Mexico, and Employee agrees to complete
this move as expeditiously as possible

 

 

Employment Agreement

Page 9

 

 

EMPLOYMENT AGREEMENT

     SBS Technologies, Inc. (“Company”) and James E. Dixon (“Employee”) agree,
effective April 26, 2002:

	 	1.	 	Employment. Company employs Employee for the period
beginning on the date of this Employment Agreement as set forth
below, and ending three years from its date or upon discharge or
resignation of Employee in accordance with the terms of this
Agreement (the “Employment Period”). During the Employment Period,
Employee will serve in the position of Executive Vice President,
Chief Financial Officer, and Member of Executive Committee of the
Company, or other management position as determined by the Company.
Employee will devote sufficient time and energies to the business of
Company to accomplish the duties assigned, will perform to the best
of Employee’s ability all duties assigned to Employee by Company and
will devote Employee’s best efforts to advance the interests of
Company. Employee will have the power and authority determined by
Company.
	 
	 	2.	 	Compensation. For all services performed by Employee for
Company during the Employment Period, Company will pay Employee the
salary and benefits set forth on Appendix “A”. Employee will be
entitled to participate in employee benefit programs established by
Company and applicable to all full-time employees. Employee will be
entitled to vacation, national holidays and paid sick leave in
accordance with Company policy and Appendix A. During vacation,
national holidays, and paid sick leave, Employee will receive
Employee’s usual compensation.
	 
	 	3.	 	Reimbursement of Expenses. Company recognizes that Employee,
in performing Employee’s duties hereunder, may be required to spend
sums of money in connection with those duties for the benefit of
Company. Employee may present to Company an itemized voucher
listing expenses paid by Employee in the performance of Employee’s
duties on behalf of Company, and on presentation of the itemized
voucher, Company will reimburse Employee for all reasonable expenses
itemized, including but not limited to, travel, meals, lodging,
entertainment, and promotion with respect to all activities approved
in advance by Company. Employee may receive advances from Company
for anticipated expenses. Employee agrees that the amount by which
an advance exceeds actual expenses (“Amount”) will be promptly
refunded to Company upon determination by Company that it is due,
that the Amount may be deducted from any payments of any nature
(including without limitation salary) owed by Company to employee,
and that the Amount will constitute a debt from

 

 

Employment Agreement

Page 1

 

 

	 	 	 	Employee to Company, enforceable by Company in all respects as if
Employee had executed a promissory note or other instrument
acknowledging the debt, bearing interest at a rate of 10% per year
from the date repayment is due, and payable in full on demand
without set-off or deduction.
	 
	 	4.	 	Sick Leave and Disability. Employee will be entitled to
sick leave for the number of days determined by Company (“Sick
Leave”). Employee will be considered to be disabled during any
period in excess of Sick Leave during which Employee is unable to
work because of illness or incapacity (“Disability Period”).Employee
will be entitled to receive Employee’s full salary during Sick Leave
and will be deemed to be on leave, without pay, during the
Disability Period. If Employee is unable to work for a period in
excess of 90 days, Employee, at the discretion of the Board of
Directors of company, will be considered to have resigned. In no
event will Employee be entitled to payment or other compensation for
unused Sick Leave or Disability Period, unless required by law or
otherwise provided in a policy or employment manual adopted by
Company.
	 
	 	5.	 	Resignation and Discharge. Employee may resign or be
discharged pursuant to the terms of this paragraph. If Employee (i)
resigns, Employee must give 30 days’ notice to Company; (ii) is
discharged for cause (as later defined), Company may discharge
Employee immediately, without notice; or (iii) is discharged not for
cause from his responsibilities, Company must give 30 days’ notice
to Employee. If Employee is discharged not for cause, Employee will
be paid severance pay equal to six month’s base pay in effect at the
time of termination payable in monthly installments.
	 
	 	 	 	For purposes of this paragraph, “for cause” means that during the
Employment Period, Employee, unless otherwise provided by Company
policy or Company employment manual, (a) is reasonably believed by
Company (i) to have failed to comply with any law, regulation or
policy, including without limitation securities or employment or
non-discrimination or similar laws, regulations or policies, and
that failure causes a significant financial, regulatory,
operational or public perception detriment to Company, (ii) to
abuse, as determined by the Company, alcohol or to use drugs,
(other than as prescribed by Employee’s physician), or (b) refuses
to submit to testing for alcohol or drugs, or (c) is reasonably
believed by Company to have committed or is charged with any
felony or misdemeanor involving moral turpitude, or (d) through
willful neglect, gross negligence, or malfeasance causes a
significant financial, regulatory, operational or public
perception detriment to

 

 

Employment Agreement

Page 2

 

 

	 	 	 	Company. A determination by the Board of Directors that Employee
has failed to perform Employee’s responsibilities to the
satisfaction of the Board of Directors, without one or more of the
other elements set out in this paragraph, is not “for cause”.
	 
	 	6.	 	Competition and Confidential Information Restrictions.

	 	A.	 	Competition Restrictions. Employee may not
during the Employment Period, and for a period of two years
following the termination of the Employment Period, anywhere
in the United States, directly or indirectly, own, manage,
operate, invest in, control, be employed by, participate in,
be a financial sponsor of, or be connected in any manner with
the ownership, management, operation or control of any
business that competes with a business conducted by Company
at any time during the Employment Period or which Employee
knows, during the Employment Period, that Company intends to
conduct. Employee acknowledges that this restriction is
necessary for Company’s welfare and protection in light of
the responsibilities assigned to Employee and Employee’s
status in Company, that Employee is fully and adequately
compensated for this restriction.
	 
	 	B.	 	Confidential Information. Employee
acknowledges and recognizes that Employee is, or will be,
employed by Company in a confidential relationship and may
receive and have access to the confidential business
information, customer names, contracts and other customer
data, business methods, techniques and trade secrets of
Company (“Confidential Information”). Employee may develop
ideas, conceptions, inventions, processes, methods, products
and improvements; and Employee may receive disclosures of
ideas, conceptions, inventions, processes, methods, products
and improvements made by other employees of Company (“Company
Inventions”). Employee may participate with Company in
improving and developing Confidential Information and Company
Inventions. Confidential Information and Company Inventions
developed on behalf of Company are neither commonly known nor
readily accessible to others and are used by Company in its
business to obtain a competitive advantage over Company’s
competitors who do not know or use the Confidential
Information or Company Inventions. Protection of the
Confidential Information and Company Inventions against
unauthorized disclosure and use is of critical importance to
Company in maintaining its competitive position. Employee
agrees that Employee will not, at any time, during or after
the Employment

 

 

Employment Agreement

Page 3

 

 

	 	 	 	Period, make any independent use of, or disclose to any
other person or organization, except as authorized by
Company in writing, any Confidential Information or Company
Inventions. Upon termination of the Employment Period for
any reason, Employee shall promptly deliver to Company all
drawings, manuals, letters, notes, notebooks, reports,
customer lists, customer data, mailing lists, and all other
materials and records of any kinds, and all copies thereof,
that may be in the possession of, or under the control of,
Employee pertaining to Company’s business including any
that contain any Confidential Information or Company
Invention.
	 
	 	C.	 	Business Relationships. Employee acknowledges
Company’s efforts to establish valuable business
relationships with its clients, customers and suppliers.
Employee recognizes that Company has invested resources in
the training and the professional development of Employee,
and Employee further recognizes Employee’s responsibility to
the Company when Company entrusts Employee with Confidential
Information. In view of Company’s efforts, Employee agrees
that unless Company authorizes Employee to do so in writing,
Employee will not, for a period of one year after termination
of employment with Company, solicit the purchase of products
or services directly competing with products and services of
Company from any person, corporation, business organization
or enterprise which: (i) has made any purchase of products or
services from Company within the two years immediately
preceding termination of former Employee’s employment
(“Customer”); or (ii) has been contacted by Employee during
the last 12 months of Employee’s employment for the purpose
of securing the purchase of products or services from Company
(“Prospective Customer”).
	 
	 	D.	 	Non-Solicitation of Employees. Employee is
aware that Company has a significant investment in its
employees. For a period of twelve months after termination
for any reason of Employee’s employment, neither Employee nor
any person or entity by whom Employee may be employed or of
which Employee may be an officer, director, partner, trustee
or control person, will directly or indirectly employ or
solicit to employ, or otherwise retain or solicit to retain,
any person employed by Company as of the date of Employee’s
termination of employment or during the twelve month period
thereafter, unless that person has been terminated by Company
without cause (as determined in good faith by Company) before
the time of the solicitation, employment or retention.

 

 

Employment Agreement

Page 4

 

 

	 	E.	 	Remedies. Employee and Company recognize that
irreparable injury may result to Company in the event of
breach or threatened breach of this paragraph of this
Agreement by Employee. If Employee commits a breach or
threatens to commit a breach of any of the provisions of this
paragraph, Company shall have the right and remedy, in
addition to any others that may be available, at law or in
equity, to have the provisions of this paragraph specifically
enforced by any court having equity jurisdiction, together
with an accounting therefor, Employee having specifically
acknowledged that any such breach or threatened breach will
cause irreparable injury to Company and that money damages
will not provide an adequate remedy to Company.

	 	7.	 	Invalidity. If any provision of this Employment Agreement is
later construed to be unenforceable or invalid, the remaining
provisions shall not be affected but shall continue in full effect.
If any term of this Employment Agreement is found to be
unenforceable or invalid by any court having jurisdiction, that
court shall have the power to reduce or revise the term and the
paragraph(s) shall then be fully enforceable.
	 
	 	8.	 	Assignment. Employee acknowledges that Employee’s services
are unique and personal. Accordingly, Employee may not assign
Employee’s rights or delegate Employee’s duties or obligations under
this Agreement. The Employer’s rights and obligations shall inure
to the benefit of and shall be binding upon Employer’s successor and
assigns.
	 
	 	9.	 	Personnel Policies. Company’s written personnel policies
apply to all of Company’s employees, including Employee, and
describe additional terms and conditions of employment of Employee.
Those terms and conditions, as Company may revise from time to time,
are incorporated by reference into this Employment Agreement.
Company reserves the right to revise the personnel policies from
time to time, as Company deems necessary. If any personnel policy
provision conflicts with a provision of this Employment Agreement,
the terms of this Employment Agreement shall govern.
	 
	 	10.	 	Alcohol and Drug Testing. Employee agrees to comply with and
submit to any Company program or policy for testing for alcohol
abuse or use of drugs and, in the absence of such a program or
policy, to submit to such testing as may be required by Company and
administered in accordance with applicable law and regulations.

 

 

Employment Agreement

Page 5

 

 

	 	11.	 	Binding Effect. This Employment Agreement constitutes the
entire understanding of the parties, may be modified only in
writing, is governed by laws of the state of New Mexico, and will
bind and inure to the benefit of Employee and Employee’s personal
representative and Company and Company’s successors and assigns.

 

 

Employment Agreement

Page 6

 

 

	 	 	 	 
	DATED: May 9, 2002.	 	 	 
	 
	 	 	 	COMPANY:
	 
	 	 	 	SBS Technologies, Inc.
	 
	 	 	
By:
	/s/ Christopher J. Amenson
	 	 	
Its:
	CEO
	 
	 	 	 	EMPLOYEE:
	 
	 	 	 	/s/ James E. Dixon
	 	 	 	James E. Dixon

 

 

Employment Agreement

Page 7

 

 

Appendix A

to

Employment Agreement

James E. Dixon

Employee

Position: Executive Vice President, Chief Financial Officer and Member of the
Executive Committee of the Company, reporting directly to the Chief Executive
Officer.

Compensation: $275,000 base annual salary.

	 	 	 
	Benefits:	 	 
	Standard Employee	 	 
	Benefits:	 	
Medical insurance
	 	 	
Dental insurance
	 	 	
Life Insurance
	 	 	
Long and short-term disability insurance
	 	 	
Ten holidays per year
	 	 	
Sick leave
	 	 	 
	Optional Benefits:	 	
401(k) Plan
	 	 	
Flexible Spending Account Program
	 	 	
Supplemental Life Insurance

All Standard and Optional Benefits will be as provided by Company to employees
generally, and are subject to modification from time to time by Company.

	 	 	 
	Additional Benefits:	 	
Four weeks paid vacation per year
	 	 	
Immediate, full vesting under any employee plans

in effect at signing that require vesting

Stock Option Grant: Nonqualified stock options for 50,000 shares of common
stock, with exercise, termination and other terms as provided in an Option
Agreement (“Option Agreement”) and the 1993 Director and Stock Option Plan
under which it is issued, including the following:

     The Options will vest in four installments, vesting as follows:

	 	 	 	 	 
	12,500
	 	April 25, 2003
	12,500
	 	April 25, 2004
	12,500
	 	April 25, 2005
	12,500
	 	April 25, 2006

 

 

Employment Agreement

Page 8

 

 

All options granted as of this date which have not yet vested will vest
immediately prior to a change of control of the company. The Options will
terminate ten years from the date of grant, and the exercise price for the
options will be the Nasdaq closing price on April 25, 2002.

 

 

Employment Agreement

Page 9

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