Document:

Form of Transitional Compensation Agreement

 

EXHIBIT 10 (ss)

TRANSITIONAL COMPENSATION AGREEMENT

               THIS AGREEMENT is entered into as of the       day of December, 2002 by and
between CDW Computer Centers, Inc., an Illinois corporation, and            
(the “Executive”).

W I T N E S S E T H

               WHEREAS, the Executive currently serves as a key employee of the Company
(as defined in Section 1) and the Executive’s services and knowledge are
valuable to the Company in connection with the management of one or more of the
Company’s principal operating facilities, divisions, departments or
subsidiaries;

               WHEREAS, the Board (as defined in Section 1) has determined that it is in
the best interests of the Company and its stockholders to secure the
Executive’s continued services and to ensure the Executive’s continued
dedication and objectivity in the event of any threat or occurrence of, or
negotiation or other action that could lead to, or create the possibility of, a
Change in Control (as defined in Section 1) of the Company, without concern as
to whether the Executive might be hindered or distracted by personal
uncertainties and risks created by any such possible Change in Control, and to
encourage the Executive’s full attention and dedication to the Company, the
Board has authorized the Company to enter into this Agreement; and

               WHEREAS, in order to induce the Company into entering into this Agreement,
the Executive has agreed to enter into a noncompetition agreement in the form
of Exhibit A hereto.

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

               1. Definitions. As used in this Agreement, the following terms shall have
the respective meanings set forth below:

               (a) “Accrued Obligations” means, as of the Date of Termination, the sum of
(1) the Executive’s base salary through the Date of Termination to the extent
not theretofore paid, (2) the amount of any bonus, annual incentive
compensation, deferred compensation and other cash compensation accrued by the
Executive as of the Date of Termination to the extent not theretofore paid and
(3) any vacation pay, expense reimbursements and other cash entitlements
accrued by the Executive as of the Date of Termination to the extent not
theretofore paid. For the purpose of this Section 1(a), amounts shall be
deemed to accrue ratably over the period during which they are earned, but no
discretionary compensation shall be deemed earned or accrued until it is
specifically approved by the Board or the Compensation Committee in accordance
with the applicable plan, program or policy.

 

 

               (b) “Board” means the Board of Directors of the Company.

               (c) “Cause” means (1) the Executive’s commission of an act materially and
demonstrably detrimental to the financial condition and/or goodwill of the
Company or any of its subsidiaries, which act constitutes gross negligence or
willful misconduct by the Executive in the performance of the Executive’s
material duties to the Company or any of its subsidiaries, or (2) the
Executive’s commission of any material act of dishonesty or breach of trust
resulting or intended to result in material personal gain or enrichment of the
Executive at the expense of the Company or any of its subsidiaries, or (3) the
Executive’s conviction of a felony involving moral turpitude, but specifically
excluding any conviction based entirely on vicarious liability. No act or
failure to act will be considered “willful” unless it is done, or omitted to be
done, by the Executive in bad faith or without reasonable belief that the
Executive’s action or omission was in the best interests of the Company. In
addition, no act or omission will constitute Cause unless the Company has given
detailed written notice thereof to the Executive and, where remedial action is
feasible, the Executive then fails to remedy the act or omission within a
reasonable time after receiving such notice.

               (d) “Change in Control” means:

               (1) the acquisition by any individual, entity or group (a “Person”),
including any “person” within the meaning of Section 13(d)(3) or 14(d)(2) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), of
beneficial ownership within the meaning of Rule 13d-3 promulgated under the
Exchange Act, of both (x) 25% or more of the combined voting power of the then
outstanding securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”) and (y)
combined voting power of the Outstanding Company Voting Securities equal to or
in excess of the combined voting power of the Outstanding Company Voting
Securities held by the Krasny Family; excluding, however, the following: (A)
any acquisition directly from the Company or any member of the Krasny Family
(excluding any acquisition resulting from the exercise of an exercise,
conversion or exchange privilege unless the security being so exercised,
converted or exchanged was acquired directly from the Company or from any
member of the Krasny Family), (B) any acquisition by the Company, any member of
the Krasny Family or any group that includes a member of the Krasny Family, (C)
any acquisition by an employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company, or (D)
any acquisition by any corporation pursuant to a reorganization, merger or
consolidation involving the Company, if, immediately after such reorganization,
merger or consolidation, each of the conditions described in clauses (i), (ii)
and (iii) of subsection (3) of this “Change in Control” definition shall be
satisfied, provided that, for purposes of clause (B), if any Person (other
than the Company or any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company or any
member of the Krasny Family) shall, by reason of an acquisition of Outstanding
Company Voting Securities by the Company, become the beneficial owner of both
(x) 25% or more of the Outstanding Company Voting Securities and (y) combined
voting power of the Outstanding Company Voting Securities equal to or in excess
of the combined voting power of the Outstanding Company Voting Securities held
by the Krasny Family, and such Person shall, after such acquisition of
Outstanding Company Voting Securities by the Company, become the beneficial
owner of any additional

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Outstanding Company Voting Securities and such beneficial ownership is
publicly announced, such additional beneficial ownership shall constitute a
Change in Control;

               (2) individuals who, as of the date of this Agreement, constitute the
Board (the “Incumbent Board”) cease for any reason to constitute at least a
majority of such Board; provided, however, that any individual who becomes a
director of the Company subsequent to the date of this Agreement whose
election, or nomination for election by the Company’s stockholders, was
approved by the vote of at least a majority of the directors then comprising
the Incumbent Board shall be deemed a member of the Incumbent Board; and
provided further, that no individual who was initially elected as a director of
the Company as a result of an actual or threatened solicitation by a person or
group for the purpose of opposing a solicitation by any other person or group
with respect to the election or removal of directors, or any other actual or
threatened solicitation of proxies or consents by or on behalf of any Person
other than the Board shall be deemed a member of the Incumbent Board;

               (3) consummation of a reorganization, merger or consolidation unless, in
any such case, immediately after such reorganization, merger or consolidation,
(i) more than 50% of the combined voting power of the then outstanding
securities of the corporation resulting from such reorganization, merger or
consolidation entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by all or substantially all of the
individuals or entities who were the beneficial owners, respectively, of the
Outstanding Company Voting Securities immediately prior to such reorganization,
merger or consolidation, (ii) no Person (other than the Company, any employee
benefit plan (or related trust) sponsored or maintained by the Company or the
corporation resulting from such reorganization, merger or consolidation (or any
corporation controlled by the Company) and any Person which beneficially owned,
immediately prior to such reorganization, merger or consolidation, directly or
indirectly, 25% or more of the Outstanding Company Voting Securities)
beneficially owns, directly or indirectly, both (x) 25% or more of the combined
voting power of the then outstanding securities of such corporation entitled to
vote generally in the election of directors and (y) combined voting power of
the then outstanding securities of such corporation equal to or in excess of
the combined voting power of the then outstanding securities of such
corporation held by the Krasny Family and (iii) at least a majority of the
members of the board of directors of the corporation resulting from such
reorganization, merger or consolidation were members of the Incumbent Board at
the time of the execution of the initial agreement or action of the Board
providing for such reorganization, merger or consolidation; or

               (4) consummation of (i) a plan of complete liquidation or dissolution of
the Company or (ii) the sale or other disposition of all or substantially all
of the assets of the Company other than to a corporation with respect to which,
immediately after such sale or other disposition, (A) more than 50% of the
combined voting power of the then outstanding securities thereof entitled to
vote generally in the election of directors is then beneficially owned,
directly or indirectly, by all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the Outstanding
Company Voting Securities immediately prior to such sale or other disposition,
(B) no Person (other than the Company, any employee benefit plan (or related
trust) sponsored or maintained by the Company or such corporation (or any
corporation controlled by the Company) and any Person which beneficially owned,
immediately prior to such sale or other disposition, directly or indirectly,
25% or more of the Outstanding Company Voting

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Securities) beneficially owns, directly or indirectly, both (x) 25% or
more of the combined voting power of the then outstanding securities thereof
entitled to vote generally in the election of directors and (y) combined voting
power of the then outstanding securities thereof equal to or in excess of the
combined voting power of the then outstanding securities thereof held by the
Krasny Family and (C) at least a majority of the members of the board of
directors thereof were members of the Incumbent Board at the time of the
execution of the initial agreement or action of the Board providing for such
sale or other disposition.

               For the avoidance of doubt, the consummation of a transaction initiated by
the Company involving the formation of a direct or indirect holding company of
the Company for any internal legal or business purpose in which the holders of
the outstanding voting securities of the Company become the holders of the
outstanding voting securities of such holding company in substantially the same
proportions shall not constitute a “Change in Control.”

               (e) “Company” means CDW Computer Centers, Inc., an Illinois corporation,
and its successors and assigns; provided, however, that in the event of the
consummation of a transaction initiated by the Company involving the formation
of a direct or indirect holding company of the Company for any internal legal
or business purpose in which the holders of the outstanding voting securities
of the Company become the holders of the outstanding voting securities of such
holding company in substantially the same proportions, all references to the
“Company” herein shall be deemed to be references to the new holding company.

               (f) “Date of Termination” means (1) the effective date on which the
Executive’s employment by the Company terminates as specified in a prior
written notice by the Company or the Executive, as the case may be, to the
other, delivered pursuant to Section 10 or (2) if the Executive’s employment by
the Company terminates by reason of death, the date of death of the Executive.

               (g) “Good Reason” means, without the Executive’s written consent, the
occurrence of any of the following events after a Change in Control: (1) a
change in the Executive’s reporting responsibilities, titles or offices with
the Company as in effect immediately prior to such Change in Control which is
adverse to the Executive, (2) assignment of duties inconsistent with the
Executive’s position, authority, duties, responsibilities or status, or any
other action by the Company which results in a substantial diminution of such
position, authority, duties, responsibilities or status, other than an
isolated, insubstantial and inadvertent action not taken in bad faith and which
is remedied by the Company promptly after receipt of notice thereof given by
the Executive, (3) any reduction of the Executive’s base salary, bonus or
incentive compensation opportunities, or benefits under any compensation or
benefit plan or program of the Company, other than an isolated, insubstantial
and inadvertent reduction not made in bad faith and which is remedied by the
Company promptly after receipt of notice thereof given by the Executive, (4)
any successor to the Company, by acquisition of stock or assets, by merger or
otherwise, failing to expressly assume the obligations of the Company under
this Agreement, or (5) the Executive being reassigned to an office location
more than 50 miles from the location of the Executive’s place of employment at
the time of the Change in Control.

               (h) “Krasny Family” shall mean Michael P. Krasny, Janet Krasny, any
descendant of Michael P. Krasny or Janet Krasny or the spouse of any such
descendant

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(collectively, the “Krasny Family Group”), any trust, partnership or other
entity for the benefit of any member of the Krasny Family Group, the estate of
any member of the Krasny Family Group or any charitable organization
established by any member of the Krasny Family Group.

               (i) “Prior Bonus” shall mean the higher of (1) the Executive’s target
incentive bonus during the fiscal year in which the Change in Control occurs
and (2) the average of the annual incentive bonus earned under the Company’s
Senior Management Incentive Plan or any comparable bonus earned under any
successor plan (including any bonus earned and payable but not yet paid) for
the last three full fiscal years (or such shorter period during which the
Executive has been an employee of the Company); provided that, if the Executive
is not employed by the Company for a full fiscal year, the Prior Bonus shall be
the target incentive bonus for such year.

               (j) “Qualifying Termination” means termination of the Executive’s
employment during the Termination Period (1) by reason of the discharge of the
Executive by the Company other than (A) for Cause, (B) the Executive’s death or
(C) due to the Executive’s absence from the Executive’s duties with the Company
on a full-time basis for at least 180 consecutive days as a result of the
Executive’s incapacity due to physical or mental illness, or (2) by reason of
the resignation of the Executive for Good Reason within six (6) months after an
event constituting Good Reason.

               (k) “Termination Period” means the period of time beginning with a Change
in Control and ending on the earlier to occur of (1) two years following such
Change in Control and (2) the Executive’s death.

               2.  Payments Upon Termination of Employment.

               (a) In the event of a Qualifying Termination, the Executive shall receive
the following benefits:

               (1) Payment of all Accrued Obligations in a lump sum within thirty (30)
days after the Date of Termination; provided, however, that any portion of the
Accrued Obligations which consists of bonus, deferred compensation or annual
incentive compensation shall be determined and paid in accordance with the
terms of the relevant plan as applicable to the Executive;

               (2) A prorated annual incentive bonus (based on the target bonus under the
Company’s Senior Management Incentive Plan or any successor plan for the
fiscal year in which the Executive’s termination of employment occurs) through
and including the effective date of the Executive’s termination of employment;

               (3) Payment in a lump sum within thirty (30) days after the Date of
Termination of a salary replacement amount equal to two hundred fifty percent
(250%) of the Executive’s highest annual base salary from the Company and its
affiliated companies in effect during the 12-month period prior to the Date of
Termination;

               (4) Payment in a lump sum within thirty (30) days after the Date of
Termination of a bonus replacement amount equal to two hundred fifty percent
(250%) of the Prior Bonus;

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               (5) Continuation, for a period of two (2) years after the Date of
Termination, of all welfare benefits (including medical, accident, disability
and life insurance) on terms at least as favorable to the Executive as those
which would have been provided if the Executive’s employment with the Company
had continued for that time, with the cost of such benefits to be paid by the
Company. To the extent the Company is unable to provide comparable insurance
for reasons other than cost, the Company may provide a lesser level or no
coverage and compensate the Executive for the difference in coverage through a
cash lump sum payment grossed up for taxes. This payment will be based upon
the cost of an individual insurance policy if it were assumed to be available;
and

               (6) Outplacement services with a firm selected by the Company and
reasonably acceptable to the Executive, provided that such outplacement
services are commenced within a reasonable time following the Date of
Termination. Payments in the aggregate amount not to exceed $20,000 shall be
made directly to such outplacement firm upon submission of proper documentation
to the Company.

               Any amount paid pursuant to this Section 2(a) shall be paid in lieu of any
other amount of severance relating to salary, incentive compensation or other
bonus continuation to be received by the Executive upon termination of
employment of the Executive under any severance plan, policy or arrangement of
the Company (including, without limitation, the Company’s Compensation
Protection Plan For Executives). If the Company is obligated by law to pay
severance pay, notice pay or other similar benefits, or if the Company is
obligated by law to provide advance notice of separation (“Notice Period”),
then the payments made pursuant to this Section 2(a) shall be reduced by the
amount of any such severance, notice pay or other similar benefits, as
applicable, and by the amount of any severance pay, notice pay or other similar
benefits received during any Notice Period.

               (b) If during the Termination Period the employment of the Executive shall
terminate for any reason other than a Qualifying Termination, then the Company
shall pay to the Executive all Accrued Obligations (including, in the case of
death or disability, prorated annual incentive bonus (based on the target bonus
under the Company’s Senior Management Incentive Plan or any successor plan for
the fiscal year in which the Executive’s termination of employment occurs)
through and including the effective date of the Executive’s termination of
employment in a lump sum within thirty (30) days after the Date of Termination;
provided, however, that any portion of the Accrued Obligations which consists
of bonus, deferred compensation or annual incentive compensation shall be
determined and paid in accordance with the terms of the relevant plan as
applicable to the Executive. In addition, if the Executive’s employment is
terminated by retirement under a retirement plan of the Company or by
resignation of the Executive other than for Good Reason, the Executive may, in
the discretion of the Compensation Committee, be awarded a pro rata cash bonus
for the year in which the Date of Termination occurs.

               3. Certain Additional Payments by the Company. (a) Anything in this
Agreement to the contrary notwithstanding, in the event it shall be determined
that any payment or distribution by the Company or its affiliated companies to
or for the benefit of the Executive (whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise, but
determined without regard to any additional payments required under this

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Section 3) (a “Payment”) would be subject to the excise tax imposed by
Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), or
any interest or penalties are incurred by the Executive with respect to such
excise tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise Tax”), then the Executive
shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an
amount such that after payment by the Executive of all taxes (including any
interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with
respect thereto) and Excise Tax imposed upon the Gross-Up Payment, the
Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments. Notwithstanding the foregoing provisions of this
Section 3(a), if it shall be determined that the Executive is entitled to a
Gross-Up Payment, but that the Executive, after taking into account the
Payments and the Gross-Up Payment, would not receive a net after-tax benefit of
at least $100,000 (taking into account both income taxes and any Excise Tax) as
compared to the net after-tax proceeds to the Executive resulting from an
elimination of the Gross-Up Payment and a reduction of the Payments, in the
aggregate, to an amount (the “Reduced Amount”) such that the receipt of
Payments would not give rise to any Excise Tax, then no Gross-Up Payment shall
be made to the Executive and the Payments, in the aggregate, shall be reduced
to the Reduced Amount.

               (b) Subject to the provisions of Section 3(c), all determinations
required to be made under this Section 3, including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment and the assumptions
to be utilized in arriving at such determination, shall be made by the
Company’s public accounting firm (the “Accounting Firm”) which shall provide
detailed supporting calculations both to the Company and the Executive within
15 business days of the receipt of notice from the Executive that there has
been a Payment, or such earlier time as is requested by the Company. In the
event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change in Control, the Executive
shall appoint another nationally recognized public accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder). All fees and expenses of the Accounting
Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined
pursuant to this Section 3, shall be paid by the Company to the Executive
within five days of the receipt of the Accounting Firm’s determination. If the
Accounting Firm determines that no Excise Tax is payable by the Executive, it
shall furnish the Executive with a written opinion that failure to report the
Excise Tax on the Executive’s applicable federal income tax return would not
result in the imposition of a negligence or similar penalty. Any good faith
determination by the Accounting Firm shall be binding upon the Company and the
Executive. As a result of the uncertainty in the application of Section 4999
of the Code at the time of the initial determination by the Accounting Firm
hereunder, it is possible that Gross-Up Payments which will not have been made
by the Company should have been made (“Underpayment”), consistent with the
calculations required to be made hereunder. In the event that the Company
exhausts its remedies pursuant to Section 3(c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of the
Executive.

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               (c) The Executive shall notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by the
Company of the Gross-Up Payment. Such notification shall be given as soon as
practicable but no later than 10 business days after the Executive is informed
in writing of such claim and shall apprise the Company of the nature of such
claim and the date on which such claim is requested to be paid. The Executive
shall not pay such claim prior to the expiration of the 30-day period following
the date on which the Executive gives such notice to the Company (or such
shorter period ending on the date that any payment of taxes with respect to
such claim is due). If the Company notifies the Executive in writing prior to
the expiration of such period that it desires to contest such claim, the
Executive shall:

               (1) give the Company any information reasonably requested by the Company
relating to such claim,

               (2) take such action in connection with contesting such claim as the
Company shall reasonably request in writing from time to time, including,
without limitation, accepting legal representation with respect to such claim
by an attorney reasonably selected by the Company,

               (3) cooperate with the Company in good faith in order effectively to
contest such claim, and

               (4) permit the Company to participate in any proceedings relating to such
claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions
of this Section 3(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any
and all administrative appeals, proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided further, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive on an interest-free basis and shall indemnify and hold
the Executive harmless, on an after-tax basis, from any Excise Tax or income
tax (including interest or penalties with respect thereto) imposed with respect
to such advance or with respect to any imputed income with respect to such
advance; and provided further, that any extension of the statute of limitations
relating to payment of taxes for the taxable year of the Executive with respect
to which such contested amount is claimed to be due is limited solely to such
contested amount. Furthermore, the Company’s control of the contest shall be
limited to issues with respect to which a Gross-Up Payment would be payable
hereunder and the Executive shall be

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entitled to settle or contest, as the case may be, any other issue raised by
the Internal Revenue Service or any other taxing authority.

               (d) If, after the receipt by the Executive of an amount advanced by the
Company pursuant to Section 3(c), the Executive becomes entitled to receive,
and receives, any refund with respect to such claim, the Executive shall
(subject to the Company’s complying with the requirements of Section 3(c))
promptly pay to the Company the amount of such refund (together with any
interest paid or credited thereon after taxes applicable thereto). If, after
the receipt by the Executive of an amount advanced by the Company pursuant to
Section 3(c), a determination is made that the Executive shall not be entitled
to any refund with respect to such claim and the Company does not notify the
Executive in writing of its intent to contest such denial of refund prior to
the expiration of 30 days after such determination, then such advance shall be
forgiven and shall not be required to be repaid and the amount of such advance
shall offset, to the extent thereof, the amount of Gross-Up Payment required to
be paid.

               4. Withholding Taxes. The Company may withhold from all payments due to
the Executive (or the Executive’s beneficiary or estate) hereunder all taxes
which, by applicable federal, state, local or other law, the Company is
required to withhold therefrom.

               5. Reimbursement of Expenses. The Company shall pay promptly as incurred,
to the fullest extent permitted by law, all legal fees and expenses which the
Executive may reasonably incur as a result of any contest by the Company, the
Executive or others of the validity or enforceability of, or liability under,
any provision of this Agreement (including as a result of any contest initiated
by the Executive about the amount of any payment due pursuant to this
Agreement), plus in each case interest on any delayed payment at the applicable
federal rate provided for in Section 7872(f)(2)(A) of the Code; provided,
however, that in the event the Company prevails over the Executive in the
dispute, the Executive shall be required to reimburse the Company, over a
period of 12 months from the date of such resolution, for all sums advanced to
the Executive pursuant to this Section 5.

               6. Operative Event. Notwithstanding any provision herein to the contrary,
no amounts shall be payable hereunder unless and until there is a Change in
Control at a time when the Executive is employed by the Company.

               7. Termination of Agreement. (a) This Agreement shall be effective on the
date hereof and shall expire on the third anniversary of the date hereof,
provided that the term of this Agreement shall be extended automatically for
one additional year as of each annual anniversary of the date hereof,
commencing with the third anniversary of the date hereof (each, a “Renewal
Period”) unless this Agreement is terminated pursuant to Section 7(b) or, if
earlier, upon the earlier to occur of (i) termination of the Executive’s
employment with the Company prior to a Change in Control and (ii) the
Executive’s death. Notwithstanding the foregoing, any expiration of this
Agreement shall not retroactively impair or otherwise adversely affect the
rights of the Executive which have arisen prior to the date of such expiration.

               (b) The Company shall have the right, in its sole discretion at any time
during a Renewal Period, pursuant to action by the Board, to approve the
amendment or termination of this Agreement, which amendment or termination
shall not become effective until the date fixed

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by the Board for such amendment or termination, which date shall be at
least one year after notice thereof is given by the Company to the Executive;
provided, that an amendment which is not adverse to the interests of the
Executive shall take effect immediately; and provided further, that in no event
shall this Agreement be amended in a manner adverse to the interests of the
Executive or be terminated in the event of a Change in Control.

               8. Scope of Agreement. Nothing in this Agreement shall be deemed to
entitle the Executive to continued employment with the Company or its
subsidiaries and, if the Executive’s employment with the Company shall
terminate prior to a Change in Control, then the Executive shall have no
further rights under this Agreement; provided, however, that any termination of
the Executive’s employment following a Change in Control shall be subject to
all of the provisions of this Agreement.

               9. Successors; Binding Agreement.

               (a) This Agreement shall not be terminated by any merger or consolidation
of the Company whereby the Company is or is not the surviving or resulting
corporation or as a result of any transfer of all or substantially all of the
assets of the Company. In the event of any such merger, consolidation or
transfer of assets, the provisions of this Agreement shall be binding upon the
surviving or resulting corporation or the person or entity to which such assets
are transferred. In the event of the consummation of a transaction initiated
by the Company involving the formation of a direct or indirect holding company
of the Company for any internal legal or business purpose in which the holders
of the outstanding voting securities of the Company become the holders of the
outstanding voting securities of such holding company in substantially the same
proportions, the provisions of this Agreement shall be binding upon such
holding company.

               (b) The Company agrees that concurrently with any merger, consolidation or
transfer of assets referred to in Section 9(a), it will cause any successor or
transferee unconditionally to assume, by written instrument delivered to the
Executive (or the Executive’s beneficiary or estate), all of the obligations of
the Company hereunder. Failure of the Company to obtain such assumption prior
to the effectiveness of any such merger, consolidation or transfer of assets
shall be a breach of this Agreement and shall entitle the Executive to
compensation and other benefits from the Company in the same amount and on the
same terms as the Executive would be entitled hereunder if the Executive’s
employment were terminated following a Change in Control other than by reason
of a Nonqualifying Termination during the Termination Period. For purposes of
implementing the foregoing, the date on which any such merger, consolidation or
transfer becomes effective shall be deemed the Date of Termination.

               (c) 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. If the Executive shall
die while any amounts would be payable to the Executive hereunder had the
Executive continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to such
person or persons appointed in writing by the Executive to receive such amounts
or, if no person is so appointed, to the Executive’s estate.

10

 

               10. Notices. (a) For purposes of this Agreement, all notices and other
communications required or permitted hereunder shall be in writing and shall be
deemed to have been duly given when delivered or five days after deposit in the
United States mail, certified and return receipt requested, postage prepaid,
addressed (1) if to the Executive, to the home address of the Executive on the
most current Company records and if to the Company, to CDW Computer Centers,
Inc., 200 North Milwaukee Avenue, Vernon Hills, IL 60061 attention General
Counsel with a copy to Thomas A. Cole, Sidley Austin Brown & Wood, Bank One
Plaza, 10 South Dearborn Street, Chicago, Illinois 60603, or (2) to such other
address as either party may have furnished to the other in writing in
accordance herewith, except that notices of change of address shall be
effective only upon receipt.

               (b) A written notice of the Executive’s Date of Termination by the Company
or the Executive, as the case may be, to the other, shall (i) indicate the
specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive’s employment under
the provision so indicated and (iii) specify the termination date (which date
shall be not less than 15 days after the giving of such notice). The failure
by the Executive or the Company to set forth in such notice any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of the Executive or the Company hereunder or preclude the
Executive or the Company from asserting such fact or circumstance in enforcing
the Executive’s or the Company’s rights hereunder.

               11. Full Settlement; Resolution of Disputes. (a) The Company’s obligation
to make any payments provided for in this Agreement and otherwise to perform
its obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Company may have
against the Executive or others. In no event shall the Executive be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and such amounts shall not be reduced whether or not the Executive obtains
other employment.

               (b) Any dispute or controversy between the Company and the Executive
arising out of or relating to this Agreement or the breach of this Agreement
shall be settled by arbitration administered by the American Arbitration
Association (“AAA”) in accordance with its Commercial Arbitration Rules then in
effect, and judgment on the award rendered by the arbitrator may be entered in
any court having jurisdiction thereof. Any arbitration shall be held before a
single arbitrator who shall be selected by the mutual agreement of the Company
and the Executive, unless the parties are unable to agree to an arbitrator, in
which case the arbitrator will be selected under the procedures of the AAA. In
connection with the appointment of an arbitrator, the AAA will give the parties
a list of no less than 15 potential arbitrators to strike and number in order
of preference in accordance with AAA procedures. The arbitrator shall have the
authority to award any remedy or relief that a court of competent jurisdiction
could order or grant, including, without limitation, the issuance of an
injunction. However, either party may, without inconsistency with this
arbitration provision, apply to any court otherwise having jurisdiction over
such dispute or controversy and seek interim provisional, injunctive or other
equitable relief until the arbitration award is rendered or the controversy is
otherwise resolved. Except as necessary in court proceedings to enforce this
arbitration provision or an award

11

 

rendered hereunder, or to obtain interim relief, neither a party nor an
arbitrator may disclose the existence, content or results of any arbitration
hereunder without the prior written consent of the Company and the Executive.
The Company and the Executive acknowledge that this Agreement evidences a
transaction involving interstate commerce. Notwithstanding any choice of law
provision included in this Agreement, the United States Federal Arbitration Act
shall govern the interpretation and enforcement of this arbitration provision.
The arbitration proceeding shall be conducted in Chicago, Illinois or such
other location to which the parties may agree. The Company shall pay the costs
of any arbitrator appointed hereunder.

               12. Employment with Subsidiaries. Employment with the Company for
purposes of this Agreement shall include employment with any corporation or
other entity in which the Company has a direct or indirect ownership interest
of 50% or more of the total combined voting power of the then outstanding
securities of such corporation or other entity entitled to vote generally in
the election of directors.

               13. Governing Law; Validity. The interpretation, construction and
performance of this Agreement shall be governed by and construed and enforced
in accordance with the internal laws of the State of Illinois without regard to
the principle of conflicts of laws. The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provisions of this Agreement, which other provisions shall remain in
full force and effect.

               14. Counterparts. This Agreement may be executed in two counterparts,
each of which shall be deemed to be an original and both of which together
shall constitute one and the same instrument.

               15. Miscellaneous. No provision of this Agreement may be modified or
waived unless such modification or waiver is agreed to in writing and signed by
the Executive and by a duly authorized officer of the Company. No waiver by
either party hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed
by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time.
Failure by the Executive or the Company to insist upon strict compliance with
any provision of this Agreement or to assert any right the Executive or the
Company may have hereunder, including, without limitation, the right of the
Executive to terminate employment for Good Reason, shall not be deemed to be a
waiver of such provision or right or any other provision or right of this
Agreement. Except as otherwise expressly set forth in this Agreement, the
rights of, and benefits payable to, the Executive, the Executive’s estate or
the Executive’s beneficiaries pursuant to this Agreement are in addition to any
rights of, or benefits payable to, the Executive, the Executive’s estate or the
Executive’s beneficiaries under any other employee benefit plan or compensation
program of the Company.

12

 

               IN WITNESS WHEREOF, the Company has caused this Agreement to be executed
by a duly authorized officer of the Company and the Executive has executed this
Agreement as of the day and year first above written.

	 	 	 	 	 
	 	 	CDW COMPUTER CENTERS, INC.
	 	 	 	 	 
	 	 	
By:
	

John A. Edwardson

Chairman and Chief Executive Officer	 
	 	 	 	 	 
	 	 	EXECUTIVE
	 	 	 	 	 
	 	 	

[Executive’s Name]

13Form of Noncompensation Agreement

 

EXHIBIT 10 (tt)

NONCOMPETITION AGREEMENT

               This Noncompetition Agreement (this “Agreement”) is entered into as of
December    , 2002 between CDW Computer Centers, Inc., an Illinois corporation
(together with its successors and assigns, the “Company”), and       (the
“Employee”).

               WHEREAS, the Company and its subsidiaries are currently engaged in the
business of marketing and selling multi-brand computers and related technology
products (including hardware, software and accessories) and services to
business customers, consumers and the public sector (comprised of federal,
state and local government and educational institutions), it being acknowledged
that the scope of the Company’s business will evolve over time;

               WHEREAS, the Employee acknowledges that in the course of the Employee’s
employment with the Company or its subsidiaries, the Employee has and will
become familiar with trade secrets and other confidential information
concerning the Company and its subsidiaries and that the Employee’s services
will be of special, unique and extraordinary value to the Company and its
subsidiaries;

               WHEREAS, the Board of Directors of the Company has approved the Employee’s
participation in the Company’s Compensation Protection Plan For Executives (the
“Plan”);

               WHEREAS, the Board of Directors of the Company has also approved a
Transitional Compensation Agreement with the Employee (the “TCA”); and

               WHEREAS, as a condition to the Employee being entitled to participate in
the Plan and become a party to the TCA, the Employee is required to execute
this Agreement.

               NOW, THEREFORE, in consideration of the mutual promises and agreements
contained herein, in the Plan, in the TCA and in the overall employment
relationship between the Company and the Employee, the adequacy and sufficiency
of which are hereby acknowledged, the Company and the Employee hereby agree as
follows:

               1. Noncompetition; Nonsolicitation. (a) The Employee agrees that for the
period commencing on the date on which the Employee’s employment with the
Company or its subsidiaries terminates for any reason (the “Termination Date”)
and ending on either (i) the eighteen month anniversary of the Termination
Date if the Employee is eligible, as of the Termination Date, to receive
severance payments pursuant to Section 3 of the Plan or pursuant to Section 2
of the TCA, or (ii) the twelve-month anniversary of the Termination Date if the
Employee is not eligible, as of the Termination Date, to receive any such
payments, the Employee will abide by the restrictions contained in Sections
1(a)(1) and 1(a)(2).

 

	 	 	      (1) The Employee will not engage in any Business (as defined
in Section 1(a)(3)) being conducted or planned by the Company or
any of its subsidiaries as of the Termination Date in any
geographic area in which the Company or any of its subsidiaries is
conducting such Business or plans to conduct such Business as of
the Termination Date. The restriction contained in this Section
1(a)(1) shall apply to the Employee engaging in any such Business
either directly or indirectly through any person, firm,
corporation, partnership or other enterprise, or as an officer,
director, stockholder, partner, investor, employee or consultant
thereof, or otherwise. Without limiting the foregoing
restriction, but by way of illustration of its application, the
Employee will not engage in any such Business by becoming an
officer, director, stockholder, partner, investor, employee or
consultant of any of the corporations or other enterprises set
forth in Schedule I hereto (including any affiliate of such
corporations or other enterprises), it being acknowledged that (i)
Schedule I is only a representative list of the Company’s current
competitors and is not intended to include all of the Company’s
current competitors and (ii) new competitors of the Company may
emerge over time.
	 
	 	 	      (2) The Employee will not directly or indirectly (i) induce
or attempt to induce any employee of the Company or any of its
subsidiaries to terminate or abandon his or her employment for any
purpose whatsoever or (ii) in connection with any business to
which the restriction contained in Section 1(a)(l) applies, call
on, service, solicit or otherwise do business with any customer of
the Company or any of its subsidiaries.
	 
	 	 	      (3) For purposes of Section 1(a)(1), “Business” shall mean
any business conducted or planned by the Company or any of its
subsidiaries if the Employee, while employed by the Company or any
of its subsidiaries, was involved in such business or had
knowledge of such business. The Employee will be deemed to have
knowledge of a Business if the Employee received or was otherwise
in possession of Confidential Information (as defined in Section
2) regarding such Business.

               (b) Nothing in this Section 1 shall prohibit the Employee from being (i)
a stockholder in a mutual fund or a diversified investment company or (ii) a
passive owner of not more than two percent of the outstanding stock of any
class of a corporation, any securities of which are publicly traded, so long as
the Employee has no active participation in the business of such corporation.

               (c) If, at any time of enforcement of this Section 1, a court holds that
the restrictions stated herein are unreasonable under circumstances then
existing, the parties hereto agree that the maximum period, scope or
geographical area reasonable under such circumstances shall be substituted for
the stated period, scope or area and that the court shall be allowed to revise
the restrictions contained herein to cover the maximum period, scope and area
permitted by law.

               2. Confidentiality. The Employee shall not, at any time during the
Employee’s employment with the Company or its subsidiaries or thereafter, make
use of or disclose, directly

2

 

or indirectly, any (i) trade secret or other confidential or secret
information of the Company or of any of its subsidiaries or (ii) other
technical, business, proprietary or financial information of the Company or of
any of its subsidiaries not available to the public generally or to the
competitors of the Company or to the competitors of any of its subsidiaries
(the information in clauses (i) and (ii) being collectively referred to herein
as “Confidential Information”), except to the extent that such Confidential
Information (a) becomes a matter of public record or is published in a
newspaper, magazine or other periodical or on electronic or other media
available to the general public, other than as a result of any act or omission
of the Employee, or (b) is required to be disclosed by any law, regulation or
order of any court or regulatory commission, department or agency, provided
that the Employee gives prompt notice of such requirement to the Company to
enable the Company to seek an appropriate protective order. Promptly following
the termination of the Employee’s employment with the Company or any of its
subsidiaries, the Employee shall surrender to the Company all records,
memoranda, notes, plans, reports, computer tapes and software and other
documents and data which constitute Confidential Information which the Employee
may then possess or have under the Employee’s control (together with all copies
thereof).

               3. Intellectual Property. The Employee shall not, at any time, have or
claim any right, title or interest in any trade name, patent, trademark,
copyright, trade secret, intellectual property, methodologies, technologies,
procedures, concepts, ideas or other similar rights (collectively,
“Intellectual Property”) belonging to the Company or any of its affiliates and
shall not have or claim any right, title or interest in or to any material or
matter of any kind prepared for or used in connection with the business or
promotion of the Company or any of its affiliates, whether produced, prepared
or published in whole or in part by the Employee or by the Company or any of
its affiliates. All Intellectual Property that is conceived, devised, made,
developed or perfected by the Employee, alone or with others, during the
Employee’s employment that is related in any way to the Company’s or any of its
affiliates’ business or is devised, made, developed or perfected utilizing
equipment or facilities of the Company or its affiliates shall be works for
hire and become the sole, absolute and exclusive property of the Company. If
and to the extent that any of such Intellectual Property should be determined
for any reason not to be a work for hire, the Employee hereby assigns to the
Company all of the Employee’s right, title and interest in and to such
Intellectual Property. At the reasonable request and expense of the Company
but without charge to the Company, whether during or at any time after the
Employee’s employment with the Company, the Employee shall cooperate fully with
the Company and its affiliates in the securing of any trade name, patent,
trademark, copyright or intellectual property protection or other similar
rights in the United States and in foreign countries, including without
limitation, the execution and delivery of assignments, patent applications and
other documents or papers. [In accordance with the Illinois Employee Patent
Act, 765 ILCS 1060, the Employee is hereby notified by the Company, and
understands, that the foregoing provisions do not apply to an invention for
which no equipment, supplies, facilities or trade secret information of the
Company or any of its affiliates was used and which was developed entirely on
the Employee’s own time, unless (i) the invention relates (A) to the business
of the Company or (B) to the Company’s or any of its affiliate’s actual or
demonstrably anticipated research and development, or (ii) the invention
results from any work performed by the Employee for the Company. [for
Illinois employees only]

3

 

                4. Enforcement. The parties hereto agree that the Company and its
subsidiaries would be damaged irreparably in the event that any provision of
Section 1, 2 or 3 of this Agreement were not performed in accordance with its
terms or were otherwise breached and that money damages would be an inadequate
remedy for any such nonperformance or breach. Accordingly, the Company and its
successors and permitted assigns shall be entitled, in addition to other rights
and remedies existing in their favor, to an injunction or injunctions to
prevent any breach or threatened breach of any of such provisions and to
enforce such provisions specifically (without posting a bond or other
security). The Employee agrees that the Employee will submit himself or
herself to the personal jurisdiction of the courts of the State of Illinois in
any action by the Company to enforce the provisions of this Agreement.

               5. Notices. All notices and other communications required or permitted
hereunder shall be in writing and shall be deemed given when (i) delivered
personally or by overnight courier to the following address of the other party
hereto (or such other address for such party as shall be specified by notice
given pursuant to this Section) or (ii) sent by facsimile to the following
facsimile number of the other party hereto (or such other facsimile number for
such party as shall be specified by notice given pursuant to this Section),
with the confirmatory copy delivered by overnight courier to the address of
such party pursuant to this Section:

               If to the Company, to:

	 	 	 	CDW Computer Centers, Inc.

200 North Milwaukee Avenue

Vernon Hills, IL 60061

Attention: General Counsel

               with a copy to:

	 	 	 	Sidley Austin Brown & Wood

Bank One Plaza

10 South Dearborn Street

Chicago, IL 60603

Attention: Thomas A. Cole

               If to the Employee, to last known address of the Employee in the records
of the Company.

               6. Severability. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
the validity, legality or enforceability of any other provision of this
Agreement or the validity, legality or enforceability of such provision in any
other jurisdiction, but this Agreement shall be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable
provision had never been contained herein.

4

 

               7. Entire Agreement. This Agreement constitutes the entire agreement and
understanding between the parties with respect to the subject matter hereof and
supersedes and preempts any prior understandings, agreements or representations
by or between the parties, written or oral, which may have related in any
manner to the subject matter hereof.

               8. Successors and Assigns. This Agreement shall be enforceable by the
Employee and his heirs, executors, administrators and legal representatives,
and by the Company and its successors and assigns. In the event of the
consummation of a transaction initiated by the Company involving the formation
of a direct or indirect holding company of the Company for an internal legal or
business purpose in which the holders of the outstanding voting securities of
the Company become the holders of the outstanding voting securities of such
holding company in substantially the same proportions, all references to the
“Company” herein shall be deemed to be references to the new holding company.

               9. Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the internal laws of the State of Illinois without
regard to principles of conflict of laws.

               10. Amendment and Waiver. The provisions of this Agreement may be
amended or waived only by the written agreement of the Company and the
Employee, and no course of conduct or failure or delay in enforcing the
provisions of this Agreement shall affect the validity, binding effect or
enforceability of this Agreement.

               11. Employee Acknowledgment.The Employee acknowledges that the
restrictions contained herein are reasonable and necessary to protect the
legitimate business interests of the Company and its subsidiaries and to
prevent damage or loss to the Company and its subsidiaries. The Employee
further acknowledges that adhering to the restrictions contained herein will
not unduly restrict his or her post-employment opportunities.

               12. Counterparts. This Agreement may be executed in two counterparts,
each of which shall be deemed to be an original and both of which together
shall constitute one and the same instrument.

5

 

               IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first written above.

	 	 	 	 	 
	 	
CDW COMPUTER CENTERS, INC	 	 
	 	 	 	 	 
	 	By:	

John A. Edwardson

Chairman and Chief Executive Officer
	 	 	 	 	 
	 	
EMPLOYEE 

	 	 

6

 

SCHEDULE I

	 	 	 	CompuCom Systems, Inc.
	 
	 	 	 	Dell Computer Corporation
	 
	 	 	 	Gateway, Inc.
	 
	 	 	 	GTSI Corp.
	 
	 	 	 	Hewlett-Packard Company
	 
	 	 	 	International Business Machines Corporation
	 
	 	 	 	Insight Enterprises, Inc.
	 
	 	 	 	MicronPC, LLC
	 
	 	 	 	Micro Warehouse, Inc.
	 
	 	 	 	Office Depot, Inc.
	 
	 	 	 	PC Connection, Inc.
	 
	 	 	 	PC Mall, Inc.
	 
	 	 	 	Softchoice Corporation
	 
	 	 	 	Sotfware House International, Inc.
	 
	 	 	 	Staples, Inc.
	 
	 	 	 	Zones, Inc.

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