Document:

exv10w50

 

EXHIBIT 10.50

EXECUTIVE EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (“Agreement”) is executed as of the 28th day of
March 2002, by and between ARMEN MARTIROSYAN, an individual (“Employee”), EN POINTE TECHNOLOGIES,
INC., a Delaware corporation (the “Company”), with reference to the following facts:

     A. Employee is an individual possessing unique management and executive talents of value to
the Company.

     B. The Company desires to engage Employee as the Vice President-Information Technology (IT)
for the Company, and Employee desires to accept such employment, all on the terms and conditions
set forth in this Agreement.

AGREEMENT

     In consideration of the foregoing recitals and of the covenants and agreements herein,
the parties agree as follows:

	1.	 	Term. The Company hereby engages Employee to perform his duties and render the
services set forth in Section 2 for a period commencing on December 26, 2001 (the “Effective
Date”) and ending on December 25, 2002, (the “Employment Period”) and Employee hereby accepts
said employment and agrees to perform such services during the Employment Period. Unless this
Agreement is terminated pursuant to Section 4 or unless either party gives the other written
notice to the contrary prior to expiration date, this Agreement, together with any changes
which have occurred during the employment period then expiring, shall automatically renew at
the end of the Employment Period on a month-to-month basis.
	 
	2.	 	Duties.

	 	2.1.	 	Vice President-IT: Performing executive work of importance to the Company, with
the primary focus being the cost-effective management of the Company’s information
infrastructure. During the Employment Period, Employee shall devote his full business time
and attention to performing his duties as Vice President-IT of the Company, including but
not limited to:

	 	2.1.1.	 	Overseeing the effective operation of the Information Technology (IT) function for En
Pointe Technologies and its subsidiaries on a day-to-day basis. Includes managing and
coordinating the programming team; analyzing system requirements; designing and
developing applications; implementing new information systems; documenting information
systems; training end users; maintaining the network infrastructure and telecommunication operations; and
providing efficient help desk and other operations support to end-users.

	 	 	 
	PAGE 1

	 	READ & AGREED (INITIALS):
	 

	 	AM:___(EMPLOYEE)
	 

	 	RDC: ___(EN POINTE TECHNOLOGIES)

 

 

Executive Employment Agreement: Armen Martirosyan

March 28, 2002

	 
	 	2.1.2.	 	Serving as the technical resource that designs, coordinates and implements action
corporate strategies which meet En Pointe’s IT quality assurance objectives. Includes
assuring network functionality and data integrity on a twenty-four (24) hour per day,
seven (7) day per week basis.
	 
	 	2.1.3.	 	Assuring the security of En Pointe’s national and international networks, data and
telephony communication systems. Includes including fully securing networks, programs
and data against unauthorized access, copying or manipulation; ensuring that proper
back-ups of programs and data occur with appropriate frequency for all En Pointe
networks; once parameters have been established by executive management, designing and
maintaining an effective disaster recover plan that is capable of reviving networks
from failure in the shortest possible time frame per current technology; and abiding by
the access restriction parameters determined by En Pointe Technologies’ officers.
	 
	 	2.1.4.	 	Carrying out supervisory responsibilities in accordance with the organization’s
policies and applicable laws. Responsibilities include interviewing, hiring, and
training employees; planning, assigning, and directing work; appraising performance;
rewarding and disciplining employees; addressing complaints and resolving problems.
	 
	 	2.1.5.	 	The above description of duties in non-exhaustive. Employee shall work out of the
Company’s headquarters and shall report to a manager designated by the Company’s Chief
Executive Officer (“CEO”).
	 
	 	2.1.6.	 	Employee recognizes that the Board of Directors of the Company may be required under
its fiduciary duty to the Company and to its stockholders to eliminate the position of
Vice President-IT of this Company or to appoint a different person as such officer of
this Company. The parties agree however, that any such elimination or replacement of
Employee by the Company, other than pursuant to Section 4 or Section 7.1 or 7.2.1 or
7.3.1 hereof, shall constitute a termination of Employee’s employment hereunder by the
Company without cause.

	3.	 	Company Policies. Employee will be subject to and agrees to adhere to all of
Company’s policies which are generally applicable to En Pointe’s employees, including but not
limited to, all policies relating to standards of conduct, conflicts of interest and
compliance with the Company’s rules and obligations. To the extent there is a conflict
between the terms of a general Company policy and a term of this Agreement, the specific term
of the Agreement shall govern.

	4.	 	Change of Control. Notwithstanding the terms of Section 2 above, if the Company or a
significant portion thereof is sold or merged or undergoes a change of control transaction (as
defined in the form of Parent’s Stock Option Agreement, a copy of which shall be made
available upon Employee’s written request), this Agreement shall survive consummation of
such transaction and shall continue in effect for the remainder of the Employment Period, but
Employee shall serve as an officer of the entity which succeeds to the business or a substantial
portion of the business of the Company, and in such case shall bear a suitable

	 	 	 
	PAGE 2

	 	READ & AGREED (INITIALS):
	 

	 	AM:___(EMPLOYEE)
	 

	 	RDC: ___(EN POINTE TECHNOLOGIES)

 

 

Executive Employment Agreement: Armen Martirosyan

March 28, 2002

title and perform
the duties and functions of such office of such publicly traded or privately held successor,
consistent with those customarily performed by an officer of such a unit, division or entity
comparable to the then business of the Company, unit, division or entity. Employee may be
required to accept greater or lesser responsibility by any successor, and agrees to fully
cooperate and assist in any resulting transition for up to the remainder of the Employment
Period; and any adjustments required of Employee to complete the transition to any successor,
unit, division or entity, shall not violate this Agreement so long as “good reason” does not
arise under Sections 8.2(iii).

	5.	 	Conflict of Interest.

	 	5.1.	 	Employee agrees that during the course of his employment, he will not, directly or
indirectly, compete with En Pointe Technologies in any way, nor will Employee act as an
officer, director, employee, consultant, shareholder, lender or agent of any entity which
is engaged in any business in which En Pointe Technologies is now engaged or in which En
Pointe Technologies becomes engaged during the term of your employment. Any apparent
conflict of interest must be disclosed to the En Pointe Technologies Vice President- Human
Resources for evaluation either at time of employment or at the time that a conflict
becomes known or suspected

	 	5.1.1.	 	Employee further agrees that during the term of employment and for a period of
eighteen (18) months thereafter, employee will not, directly or indirectly, compete
unfairly or illegally with the Company in any way, or usurp any Company opportunity in
any way. Employee also agrees that during the term of employment and for a period of
eighteen (18) months thereafter, Employee will not, directly or indirectly, whether on
his own behalf or on behalf of another, offer employment or a consulting agreement to
any Company employee, nor will Employee directly or indirectly, whether on his own
behalf or on behalf of another, actually employ or grant a consulting assignment to a
Company employee. Employee also agrees that during the term of employment and for a
period of eighteen (18) months thereafter, Employee will not, directly or indirectly,
whether on his own behalf or on behalf of another contact or solicit any of Company’s
clients to do business with any other entity other than the Company.

	6.	 	Intellectual Property. Employee agrees to the following:

	 	6.1.	 	The copyright to all programs and all trade secrets developed during his employment by
Employee or others in the Company using Company time and/or resources belong to En Pointe
Technologies.
	 
	 	6.2.	 	Employee hereby assigns to En Pointe Technologies all rights, title and interest in and
to the materials and information created by Employee for En Pointe Technologies and all
other programs, inventions, works of authorship, data, ideas,
know-how and other creations which relate to the subject matter of your services for En Pointe Technologies
using Company time and/or resources (collectively called “Creations”) including any
copyright, trade secret, patent, trademark and other intellectual property rights in such

	 	 	 
	PAGE 3

	 	READ & AGREED (INITIALS):
	 

	 	AM:___(EMPLOYEE)
	 

	 	RDC: ___(EN POINTE TECHNOLOGIES)

 

 

Executive Employment Agreement: Armen Martirosyan

March 28, 2002

Creations. To the maximum extent applicable by law, all such Creations shall be deemed
works made for hire. To the extent that, notwithstanding this agreement, Employee retains
any copyright, trade secret, patent trademark or other intellectual property interest in,
or to, any such creations, Employee hereby grants to En Pointe Technologies a royalty free,
irrevocable, worldwide, non-exclusive, perpetual license to make, have made, sell,
disclose, reproduce, distribute, modify and use software and other products under such
intellectual property rights.

	 	6.3.	 	Employee agrees to assist En Pointe Technologies as reasonably requested by En Pointe
Technologies (and at En Pointe Technologies’ expense) to obtain and enforce patent,
copyright, trade secret and other intellectual property protection for any such Creations.
Employee agrees to execute documents, testify in legal or administrative proceedings and
take other such actions as En Pointe Technologies may reasonably request. This obligation
shall continue beyond the termination of Employee providing services to En Pointe
Technologies, although En Pointe Technologies shall then compensate Employee at a
reasonable rate for time spent after termination of employment.
	 
	 	6.4.	 	Unless otherwise provided, all software created by Employee for En Pointe Technologies
shall include object code, source code, internal documentation, tools and other materials
reasonably required to execute, support and modify the software.
	 
	 	6.5.	 	Employee also warrants the following:

	 	6.5.1.	 	All work shall be in a good and professional manner;
	 
	 	6.5.2.	 	All Creations shall be Employee’s original work and will not infringe on any
copyright, trade secret, patent or other intellectual property rights of any third
party;
	 
	 	6.5.3.	 	That the execution of the agreement and the performance of services for En Pointe
Technologies will not violate any obligations Employee may have to any third party.
Without limitation, Employee hereby represents that each employee, agent, contractor or
other individual who participates in, or contributes to, the providing of services or
the development of any Creation will have executed a reasonable proprietary information
agreement providing En Pointe Technologies with the rights contemplated by the
agreement, including prohibitions on disclosure and use of En Pointe Technologies
proprietary and confidential information and equipment to Employee and/or En Pointe
Technologies of any Creations.

	7.	 	Compensation. As compensation for his services to be performed hereunder, the
Company shall provide Employee with the following compensation and benefits:

	 	7.1.	 	Base Salary. For the period of December 26, 2001 through March 31, 2002
inclusive, Employee’s base salary shall be $125,000.00 per year, paid semi-monthly and in
accordance with such Company payroll practices as are in effect from time to time, and

	 	 	 
	PAGE 4

	 	READ & AGREED (INITIALS):
	 

	 	AM:___(EMPLOYEE)
	 

	 	RDC: ___(EN POINTE TECHNOLOGIES)

 

 

Executive Employment Agreement: Armen Martirosyan

March 28, 2002

subject to such withholding as is required by law. Effective April 1, 2002, Employee’s
base salary shall be $135,000.00 per year, paid semi-monthly and in accordance with such
Company payroll practices as are in effect from time to time, and subject to such
withholding as is required by law.

	 	7.1.1.	 	As used in this Agreement, “pre-tax net income” shall mean positive pre-tax income of
the Company (after including the accrued cost of any bonuses paid to Company executives
under this Section 6).

	 	7.2.	 	Bonus. Employee shall be eligible for quarterly bonus at the sole discretion
of the Company’s CEO and Board of Directors. Any quarterly bonus considered under this
Agreement shall be further subject to the condition that the Company’s cumulative pre-tax
net income (as defined in Section 7.1.1 above) is positive at time of bonus consideration.
The CEO may elect to waive the aforementioned profitability requirement for bonus in any
given quarter; however, any such waiver shall be in writing and further subject to section
11.4 of this Agreement. If any bonus is declared or paid, it shall be subject to such
withholding as is required by law.
	 
	 	7.3.	 	Benefits.

	 	7.3.1.	 	Vacation. Employee shall be entitled to vacation time as he has accrued each pay
period since his date of hire, less any vacation taken, as follows: (i) for years 1 to
5 since his date of first hire, 3.34 hours accrued per pay period (24 pay periods per
year), subject to 80 hours per year maximum; (ii) for years after 5 since his date of
first hire, 5 hours accrued per pay period (24 pay periods per year), subject to 120
hours per year maximum. In the event Employee does not use such vacation, he shall
receive, upon termination of the Employment Period, vacation pay for all unused
vacation calculated as having accrued at the applicable base salary for each relevant
period of his employment. However, Employee shall endeavor to take vacation time in the
year in which it is allocated to him.
	 
	 	7.3.2.	 	Business Expenses. The Company shall reimburse Employee for all reasonable
business expenses incurred by Employee in the course of performing services for the
Company and in compliance with procedures established from time to time by the Company.
	 
	 	7.3.3.	 	Other Benefits. Company shall provide Employee with other such employment
benefits — such as 401(k) participation, medical insurance and disability insurance -
on the terms and to the extent generally provided by the Company to its employees.
	 
	 	7.3.4.	 	Stock Options. Although no stock options are offered or granted under this
Agreement, it does not alter or negate any Stock Option provisions made in prior
agreements between this Employee and the Company.
	 
	 	7.3.5.	 	Other Persons. The parties understand that other officers and employees may
be afforded payments and benefits and employment agreements which differ from

	 	 	 
	PAGE 5

	 	READ & AGREED (INITIALS):
	 

	 	AM:___(EMPLOYEE)
	 

	 	RDC: ___(EN POINTE TECHNOLOGIES)

 

 

Executive Employment Agreement: Armen Martirosyan

March 28, 2002

those of
Employee in this Agreement; but Employee’s compensation and benefits shall be governed
solely by the terms of this Agreement, which shall supersede all prior understandings
or agreements between the parties concerning terms and benefits of employment of
Employee with the Company. Other officers or employees shall not become entitled to
any benefits under this Agreement.

     8. Termination.

	 	8.1.	 	Termination by Reason of Death or Disability. The Employment Period shall
terminate upon the death or permanent disability (as defined below) of Employee.
	 
	 	8.2.	 	Termination by Company.

	 	8.2.1.	 	The Company may terminate the Employment Period for “cause” by written notice to
Employee.
	 
	 	8.2.2.	 	The Company may terminate the Employment Period for any other reason, with or without
cause, by written notice to Employee.

	 	8.3.	 	Termination by Employee.

	 	8.3.1.	 	Employee may terminate the Employment Period for “good reason” at any time by written
notice to the Company.
	 
	 	8.3.2.	 	Employee may terminate the Employment Period for any other reason by written notice
to the Company.

	9.	 	Certain Definitions. For purposes of this Agreement:

	 	9.1.	 	The term “cause” shall mean those acts identified in Section 2924 of the California
Labor Code, as that section exists on the date of this Agreement, to wit, any willful
breach of duty by the Employee in the course of his employment, or in case of his habitual
neglect of his duty or continued incapacity to perform it.
	 
	 	9.2.	 	The term “good reason” shall mean the occurrence of one or more of the following events
without the Employee’s express written consent; (i) removal of Employee from the position
and responsibilities as set forth under Section 2 above; (ii) a material reduction by the
Company in the kind or level of employee benefits to which Employee is entitled immediately
prior to such reduction with the result that Employee’s overall benefit package is
significantly reduced; or, (iii) any material breach by the Company of any material
provision of this Agreement which continues uncured for thirty (30) days following written
notice thereof.
	 
	 	9.3.	 	The term “permanent disability” shall mean Employee’s incapacity due to physical or
mental illness, which results in Employee being absent from the performance of his duties
with the Company on a full-time basis for a period of six (6) consecutive months.

	 	 	 
	PAGE 6

	 	READ & AGREED (INITIALS):
	 

	 	AM:___(EMPLOYEE)
	 

	 	RDC: ___(EN POINTE TECHNOLOGIES)

 

 

Executive Employment Agreement: Armen Martirosyan

March 28, 2002

The
existence or cessation of a physical or mental illness which renders Employee absent from
the performance of his duties on a full-time basis shall, if disputed by the Company or
Employee, be conclusively determined by written opinions rendered by two qualified
physicians, one selected by Employee and one selected by the Company. During the period of
absence, but not beyond the expiration of the Employment Period, Employee shall be deemed
to be on an unpaid disability leave of absence. During the period of such disability leave
of absence, the Board of Directors may designate an interim officer with the same title and
responsibilities of Employee on such terms as it deems proper.

	10.	 	Employee Benefit Plans. Any employee benefit plans in which Employee may participate
pursuant to the terms of this Agreement shall be governed solely by the terms of the
underlying plan documents and by applicable law, and nothing in this Agreement shall impair
the Company’s right to amend, modify, replace, and terminate any and all such plans in its
sole discretion as provided by law. This Agreement is for the sole benefit of Employee and
the Company, and is not intended to create an employee benefit plan or to modify the terms of
any of the Company’s existing plans.

	11.	 	Miscellaneous.

	 	11.1.	 	Arbitration/Governing Law. To the fullest extent permitted by law, any
dispute, claim or controversy of any kind (including but not limited to tort, contract and
statute) arising under, in connection with, or relating to this Agreement or Employee’s
employment, shall be resolved exclusively by binding arbitration in Los Angeles County,
California in accordance with the commercial rules of the American Arbitration Association
then in effect. The Company and Employee agree to waive any objection to personal
jurisdiction or venue in any forum located in Los Angeles County, California. No claim,
lawsuit or action of any kind may be filed by either party to this Agreement except to
compel arbitration or to enforce an arbitration award; arbitration is the exclusive dispute
resolution mechanism between the parties hereto. Judgment may be entered on the
arbitrator’s award in any court having Jurisdiction. The validity, interpretation, effect
and enforcement of this Agreement shall be governed by the laws of the State of California.
	 
	 	11.2.	 	Assignment. This Agreement shall inure to the benefit of and shall be binding
upon the successors and the assigns of the Company, and all such successors and assigns
shall specifically assume this Agreement. Since this Agreement is based upon the unique
abilities of, and the Company’s personal confidence in Employee, Employee shall have no
right to assign this Agreement or any of his rights hereunder without the prior written
consent of the Company.
	 
	 	11.3.	 	Severability. If any provision of this Agreement shall be found invalid, such
findings shall not affect the validity of the other provisions hereof and the invalid
provisions shall be deemed to have been severed herefrom.

	 	 	 
	PAGE 7

	 	READ & AGREED (INITIALS):
	 

	 	AM:___(EMPLOYEE)
	 

	 	RDC: ___(EN POINTE TECHNOLOGIES)

 

 

Executive Employment Agreement: Armen Martirosyan

March 28, 2002

	 	11.4.	 	Waiver of Breach. The waiver by any party of the breach of any provision of
this Agreement by the other party or the failure of any party to exercise any right granted
to it hereunder shall not operate or be construed as the waiver of any subsequent breach by
such other party nor the waiver of the right to exercise any such right.
	 
	 	11.5.	 	Entire Agreement. This Agreement, together with the plans referred to in
Section 5, contains the entire agreement of the parties, and supersede any and all
agreements, wither oral or written, between the parties hereto with respect to any
employment by En Pointe Technologies in any manner whatsoever. Each party to this
Agreement acknowledges that no representations, inducements, promises or agreements, orally
or otherwise, have been made by any party, or anyone acting on behalf of any party which
are not embodied herein, and that no other agreement, statement or promise not contained in
this Agreement shall be valid or binding. This Agreement may not be changed orally but
only by an agreement in writing signed by the parties.
	 
	 	11.6.	 	Notices. Any notice required or permitted to be given hereunder shall be in
writing and may be personally served or sent by United States mail, and shall be deemed to
have been given when personally served or two days after having been deposited in the
United States mail, registered or certified mail, return receipt requested, with
first-class postage prepaid and properly addressed as follows. For the purposes hereof,
the addresses of the parties hereto (until notice of a change thereof is given as provided
in this Section 10.6) shall be as follows:

	 	 	 	 	 
	 

	 	If to Employee:
	 	Armen Martirosyan
	 

	 	If to the Company:
	 	En Pointe Technologies, Inc.
	 

	 	 	 	100 N. Sepulveda Blvd., 19th Floor
	 

	 	 	 	El Segundo, CA 90245
	 

	 	 	 	Attention: VP-HR

	 	11.7.	 	Headings. The paragraph and subparagraph headings herein are for convenience
only and shall not affect the construction hereof.
	 
	 	11.8.	 	Further Assurances. Each of the parties hereto shall, from time to time, and
without charge to the other parties, take such additional actions and execute, deliver and
file such additional instruments as may be reasonably required to give effect to the
transactions contemplated hereby.
	 
	 	11.9.	 	Counterparts. This Agreement may be executed simultaneously in any number of
counterparts, each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.
	 
	 	11.10.	 	Separate Counsel. The Company has been represented by counsel in the negotiation
and execution of this Agreement and has relied on such counsel with respect to any matter
relating hereto. The Employee has been invited to have his own counsel

	 	 	 
	PAGE 8

	 	READ & AGREED (INITIALS):
	 

	 	AM:___(EMPLOYEE)
	 

	 	RDC: ___(EN POINTE TECHNOLOGIES)

 

 

Executive Employment Agreement: Armen Martirosyan

March 28, 2002

review and
negotiate this Agreement and Employee has either obtained his own counsel or has elected
not to obtain counsel.

     IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the day and year
first above written.

	 	 	 	 	 
	 

	 	 “Employee”
	 	For “Company”

EN POINTE TECHNOLOGIES, INC., 

a Delaware corporation
	 
	 	 	 	 
	Name (Print):

	 	Armen Martirosyan
	 	Robert D. Chilman
	Signature:

	 	/s/ Armen Martirosyan
	 	/s/ Robert D. Chilman
	 

	 	 
	 	 
	Title:

	 	Vice President-Information Technology
	 	Vice President-Human Resources

[MARITORSYAN-EEA-03-28-02.doc]

	 	 	 
	PAGE 9

	 	READ & AGREED (INITIALS):
	 

	 	AM:___(EMPLOYEE)
	 

	 	RDC: ___(EN POINTE TECHNOLOGIES)exv10w51

 

Exhibit 10.51

EXECUTIVE EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (“Agreement”) is executed as of the 28th day of
March 2002, by and between ROBERT MERCER, an individual (“Employee”), EN POINTE TECHNOLOGIES, INC.,
a Delaware corporation (the “Company”), with reference to the following facts:

     A. Employee is an individual possessing unique management and executive talents of value to
the Company and has been its Senior Vice President-Taxation & Finance.

     B. The Company desires to continue the employment of Employee as the Senior Vice
President-Taxation & Finance for the Company, and Employee desires to accept such
employment, all on the terms and conditions set forth in this Agreement.

AGREEMENT

     In consideration of the foregoing recitals and of the covenants and agreements herein,
the parties agree as follows:

	1.	 	Term. The Company hereby engages Employee to perform his duties and render the
services set forth in Section 2 for a period commencing on March 16, 2002 (the “Effective
Date”) and ending on March 15, 2003, (the “Employment Period”) and Employee hereby accepts
said employment and agrees to perform such services during the Employment Period. Unless this
Agreement is terminated pursuant to Section 4 or unless either party gives the other written
notice to the contrary prior to expiration date, this Agreement, together with any changes
which have occurred during the employment period then expiring, shall automatically renew at
the end of the Employment Period on a month-to-month basis.
	 
	2.	 	Duties.

	 	2.1.	 	Senior Vice President-Taxation & Finance: Performing executive work of major
importance to the Company, with the primary focus being the profitable management and
profitable growth of the Company. During the Employment Period, Employee shall devote his
full business time and attention to performing his duties as Senior Vice President-Taxation
& Finance of the Company. Such responsibility shall include, but not be limited to:

	 	2.1.1.	 	Administering and controlling the issuance of the corporation’s stock, including the
determination of correct share allocations for exercise of warrants, options, and other
derivatives.
	 
	 	2.1.2.	 	Administering the company’s stock option plan from the time of grant to their
exercise or cancellation upon termination and the related employee tax reporting on
Form W-2 as well as the corporate financial reporting.
	 
	 	2.1.3.	 	Administering the company’s Stock Purchase Plan; includes:

	 	 	 
	PAGE 1

	 	READ & AGREED (INITIALS):
	 

	 	RM:___(EMPLOYEE)
	 

	 	RDC: ___(EN POINTE TECHNOLOGIES)

 

 

Executive Employment Agreement: Robert Mercer

March 28, 2002

	 	2.1.3.1.	 	Reviewing and approving semi-annual plan allocations and issuing corporate
stock.
	 
	 	2.1.3.2.	 	Annually administering the tax reporting on Form W-2.

	 	2.1.4.	 	Assisting with the preparation of various SEC filings including, but not limited to,
10-Ks, 10-Qs, 8-Ks, Insider reporting on Forms 3, 4, and 5, Proxy reports.
	 
	 	2.1.5.	 	Preparing cash flow statements, financial footnotes, and other supporting schedules.
	 
	 	2.1.6.	 	Researching major financial and tax issues.
	 
	 	2.1.7.	 	Reviewing major contracts and providing signatory approval.
	 
	 	2.1.8.	 	Signing vendor and payroll checks.
	 
	 	2.1.9.	 	Overseeing all corporate tax reporting, exclusive of payroll tax reporting which is
outsourced to payroll vendor.
	 
	 	2.1.10.	 	Assisting in the review and placement of corporate insurance, including liability,
property and casualty and directors’ and officers’ insurance.
	 
	 	2.1.11.	 	Approving stock purchases or sales for Section 16 insiders.
	 
	 	2.1.12.	 	Carrying out supervisory responsibilities in accordance with the organization’s
policies and applicable laws; include interviewing, hiring, and training employees;
planning, assigning, and directing work; appraising performance; rewarding and
disciplining employees; addressing complaints and resolving problems.
	 
	 	2.1.13.	 	The above description is non-exhaustive. Employee shall work out of the Company’s
headquarters location and shall report to a manager designated by the Company’s Chief
Executive Officer (“CEO”).
	 
	 	2.1.14.	 	Employee recognizes that the Company’s Board of Directors may be required under its
fiduciary duty to Company and to its stockholders to eliminate the position of Vice
President-Taxation & Finance of Company or to appoint a different person as such
officer of Company. The parties agree however, that any such elimination or
replacement of Employee by Company, other than pursuant to Section 4 or Section 7.1 or
7.2.1 or 7.3.1 hereof, shall constitute a termination of Employee’s employment
hereunder by the Company without cause.

	3.	 	Company Policies. Employee will be subject to and agrees to adhere to all of
Company’s policies which are generally applicable to En Pointe’s employees, including but not
limited to, all policies relating to standards of conduct, conflicts of interest and
compliance with the Company’s rules and obligations. To the extent there is a conflict
between the terms of a general Company policy and a term of this Agreement, the specific term
of the Agreement shall govern.

	4.	 	Change of Control. Notwithstanding the terms of Section 2 above, if the Company or a
significant portion thereof is sold or merged or undergoes a change of control transaction (as
defined in the form of Parent’s Stock Option Agreement, a copy of which shall be made
available upon Employee’s written request), this Agreement shall survive consummation of such
transaction and shall continue in effect for the remainder of the Employment Period,
but Employee shall serve as an officer of the entity which succeeds to the business or a
substantial portion of the business of the Company, and in such case shall bear a suitable title
and perform the duties and functions of such office of such publicly traded or privately held
successor, consistent with those customarily performed by an officer of such a unit,

	 	 	 
	PAGE 2

	 	READ & AGREED (INITIALS):
	 

	 	RM:___(EMPLOYEE)
	 

	 	RDC: ___(EN POINTE TECHNOLOGIES)

 

 

Executive Employment Agreement: Robert Mercer

March 28, 2002

division or
entity comparable to the then business of the Company, unit, division or entity. Employee may
be required to accept greater or lesser responsibility by any successor, and agrees to fully
cooperate and assist in any resulting transition for up to the remainder of the Employment
Period; and any adjustments required of Employee to complete the transition to any successor,
unit, division or entity, shall not violate this Agreement so long as “good reason” does not
arise under Sections 8.2(iii).

	5.	 	Conflict of Interest.

	 	5.1.	 	Employee agrees that during the course of his employment, he will not, directly or
indirectly, compete with En Pointe Technologies in any way, nor will Employee act as an
officer, director, employee, consultant, shareholder, lender or agent of any entity which
is engaged in any business in which En Pointe Technologies is now engaged or in which En
Pointe Technologies becomes engaged during the term of your employment. Any apparent
conflict of interest must be disclosed to the En Pointe Technologies Vice President- Human
Resources for evaluation either at time of employment or at the time that a conflict
becomes known or suspected
	 
	 	5.2.	 	Employee further agrees that during the term of employment and for a period of eighteen
(18) months thereafter, employee will not, directly or indirectly, compete unfairly or
illegally with the Company in any way, or usurp any Company opportunity in any way.
Employee also agrees that during the term of employment and for a period of eighteen (18)
months thereafter, Employee will not, directly or indirectly, whether on his own behalf or
on behalf of another, offer employment or a consulting agreement to any Company employee,
nor will Employee directly or indirectly, whether on his own behalf or on behalf of
another, actually employ or grant a consulting assignment to a Company employee. Employee
also agrees that during the term of employment and for a period of eighteen (18) months
thereafter, Employee will not, directly or indirectly, whether on his own behalf or on
behalf of another contact or solicit any of Company’s clients to do business with any other
entity other than the Company.

	6.	 	Compensation. As compensation for her services to be performed hereunder, the
Company shall provide Employee with the following compensation and benefits:

	 	6.1.	 	Base Salary. Employee’s base salary shall be $150,000.00 per year, paid
semi-monthly and in accordance with such Company payroll practices as are in effect from
time to time, and subject to such withholding as is required by law.

	 	6.1.1.	 	As used in this Agreement, “pre-tax net income” shall mean positive pre-tax income of
the Company (after including the accrued cost of any bonuses paid to Company executives
under this Section 6).

	 	6.2.	 	Bonus. Employee shall be eligible for quarterly bonus at the sole discretion
of the Company’s CEO and Board of Directors. Any quarterly bonus considered under this
Agreement shall be further subject to the condition that the Company’s cumulative pre-tax
net income (as defined in Section 6.1.1 above) is positive at time of bonus

	 	 	 
	PAGE 3

	 	READ & AGREED (INITIALS):
	 

	 	RM:___(EMPLOYEE)
	 

	 	RDC: ___(EN POINTE TECHNOLOGIES)

 

 

Executive Employment Agreement: Robert Mercer

March 28, 2002

consideration.
The CEO may elect to waive the aforementioned profitability requirement for bonus in any
given quarter; however, any such waiver shall be in writing and further subject to section
10.4 of this Agreement. If any bonus is declared or paid, it shall be subject to such
withholding as is required by law.

	 	6.3.	 	Benefits.

	 	6.3.1.	 	Vacation. Employee shall be entitled to vacation time as he has accrued each
pay period since his date of hire, less any vacation taken, as follows: (i) for years 1
to 5 since his date of first hire, 3.34 hours accrued per pay period (24 pay periods
per year), subject to 80 hours per year maximum; (ii) for years after 5 since his date
of first hire, 5 hours accrued per pay period (24 pay periods per year), subject to 120
hours per year maximum. In the event Employee does not use such vacation, he shall
receive, upon termination of the Employment Period, vacation pay for all unused
vacation calculated as having accrued at the applicable base salary for each relevant
period of his employment. However, Employee shall endeavor to take vacation time in the
year in which it is allocated to him.
	 
	 	6.3.2.	 	Business Expenses. The Company shall reimburse Employee for all reasonable
business expenses incurred by Employee in the course of performing services for the
Company and in compliance with procedures established from time to time by the Company.
	 
	 	6.3.3.	 	Other Benefits. Company shall provide Employee with other such employment
benefits — such as 401(k) participation, medical insurance and disability insurance -
on the terms and to the extent generally provided by the Company to its employees.
	 
	 	6.3.4.	 	Stock Options. Although no stock options are offered or granted under this
Agreement, it does not alter or negate any Stock Option provisions made in prior
agreements between this Employee and the Company.
	 
	 	6.3.5.	 	Other Persons. The parties understand that other officers and employees may
be afforded payments and benefits and employment agreements which differ from those of
Employee in this Agreement; but Employee’s compensation and benefits shall be governed
solely by the terms of this Agreement, which shall supersede all prior understandings
or agreements between the parties concerning terms and benefits of employment of
Employee with the Company. Other officers or employees shall not become entitled to
any benefits under this Agreement.

	7.	 	Termination.

	 	7.1.	 	Termination by Reason of Death or Disability. The Employment Period shall
terminate upon the death or permanent disability (as defined below) of Employee.

	 	 	 
	PAGE 4

	 	READ & AGREED (INITIALS):
	 

	 	RM:___(EMPLOYEE)
	 

	 	RDC: ___(EN POINTE TECHNOLOGIES)

 

 

Executive Employment Agreement: Robert Mercer

March 28, 2002

	 	7.2.	 	Termination by Company.

	 	7.2.1.	 	The Company may terminate the Employment Period for “cause” by written notice to
Employee.
	 
	 	7.2.2.	 	The Company may terminate the Employment Period for any other reason, with or without
cause, by written notice to Employee.

	 	7.3.	 	Termination by Employee.

	 	7.3.1.	 	Employee may terminate the Employment Period for “good reason” at any time by written
notice to the Company.
	 
	 	7.3.2.	 	Employee may terminate the Employment Period for any other reason by written notice
to the Company.

	 	7.4.	 	Severance Pay. In the event the Employment Period is terminated by the Company
without cause or is terminated by Employee with good reason or if the Employment Period is
terminated because of the death or disability of Employee pursuant to Section 7.1, upon the
effectiveness of any such termination, the Company shall be obligated to pay to Employee
(or his executors, administrators or assigns, as the case may be) all unpaid salary,
benefits and bonuses (if any) accrued through the date of effectiveness of such termination
and, in addition, a cash severance payment equal to six (6) months’ total base salary, at
the rates set forth herein, and such other benefits as may be required by law. Severance
pay shall be in exchange for executing a Settlement and General Release of all claims.

	8.	 	Certain Definitions. For purposes of this Agreement:

	 	8.1.	 	The term “cause” shall mean those acts identified in Section 2924 of the California
Labor Code, as that section exists on the date of this Agreement, to wit, any willful
breach of duty by the Employee in the course of his employment, or in case of his habitual
neglect of his duty or continued incapacity to perform it.
	 
	 	8.2.	 	The term “good reason” shall mean the occurrence of one or more of the following events
without the Employee’s express written consent; (i) removal of Employee from the position
and responsibilities as set forth under Section 2 above; (ii) a material reduction by the
Company in the kind or level of employee benefits to which Employee is entitled immediately
prior to such reduction with the result that Employee’s overall benefit package is
significantly reduced; or, (iii) any material breach by the Company of any material
provision of this Agreement which continues uncured for thirty (30) days following written
notice thereof.
	 
	 	8.3.	 	The term “permanent disability” shall mean Employee’s incapacity due to physical or
mental illness, which results in Employee being absent from the performance of his duties
with the Company on a full-time basis for a period of six (6) consecutive months.

	 	 	 
	PAGE 5

	 	READ & AGREED (INITIALS):
	 

	 	RM:___(EMPLOYEE)
	 

	 	RDC: ___(EN POINTE TECHNOLOGIES)

 

 

Executive Employment Agreement: Robert Mercer

March 28, 2002

The
existence or cessation of a physical or mental illness which renders Employee absent from
the performance of his duties on a full-time basis shall, if disputed by the Company or
Employee, be conclusively determined by written opinions rendered by two qualified
physicians, one selected by Employee and one selected by the Company. During the period of
absence, but not beyond the expiration of the Employment Period, Employee shall be deemed
to be on an unpaid disability leave of absence. During the period of such disability leave
of absence, the Board of Directors may designate an interim officer with the same title and
responsibilities of Employee on such terms as it deems proper.

	9.	 	Employee Benefit Plans. Any employee benefit plans in which Employee may participate
pursuant to the terms of this Agreement shall be governed solely by the terms of the
underlying plan documents and by applicable law, and nothing in this Agreement shall impair
the Company’s right to amend, modify, replace, and terminate any and all such plans in its
sole discretion as provided by law. This Agreement is for the sole benefit of Employee and
the Company, and is not intended to create an employee benefit plan or to modify the terms of
any of the Company’s existing plans.
	 
	10.	 	Miscellaneous.

	 	10.1.	 	Arbitration/Governing Law. To the fullest extent permitted by law, any
dispute, claim or controversy of any kind (including but not limited to tort, contract and
statute) arising under, in connection with, or relating to this Agreement or Employee’s
employment, shall be resolved exclusively by binding arbitration in Los Angeles County,
California in accordance with the commercial rules of the American Arbitration Association
then in effect. The Company and Employee agree to waive any objection to personal
jurisdiction or venue in any forum located in Los Angeles County, California. No claim,
lawsuit or action of any kind may be filed by either party to this Agreement except to
compel arbitration or to enforce an arbitration award; arbitration is the exclusive dispute
resolution mechanism between the parties hereto. Judgment may be entered on the
arbitrator’s award in any court having Jurisdiction. The validity, interpretation, effect
and enforcement of this Agreement shall be governed by the laws of the State of California.
	 
	 	10.2.	 	Assignment. This Agreement shall inure to the benefit of and shall be binding
upon the successors and the assigns of the Company, and all such successors and assigns
shall specifically assume this Agreement. Since this Agreement is based upon the unique
abilities of, and the Company’s personal confidence in Employee, Employee shall have no
right to assign this Agreement or any of his rights hereunder without the prior written
consent of the Company.
	 
	 	10.3.	 	Severability. If any provision of this Agreement shall be found invalid, such
findings shall not affect the validity of the other provisions hereof and the invalid
provisions shall be deemed to have been severed herefrom.

	 	 	 
	PAGE 6

	 	READ & AGREED (INITIALS):
	 

	 	RM:___(EMPLOYEE)
	 

	 	RDC: ___(EN POINTE TECHNOLOGIES)

 

 

Executive Employment Agreement: Robert Mercer

March 28, 2002

	 	10.4.	 	Waiver of Breach. The waiver by any party of the breach of any provision of
this Agreement by the other party or the failure of any party to exercise any right granted
to it hereunder shall not operate or be construed as the waiver of any subsequent breach by
such other party nor the waiver of the right to exercise any such right.
	 
	 	10.5.	 	Entire Agreement. This Agreement, together with the plans referred to in
Section 5, contains the entire agreement of the parties, and supersede any and all
agreements, wither oral or written, between the parties hereto with respect to any
employment by En Pointe Technologies in any manner whatsoever. Each party to this
Agreement acknowledges that no representations, inducements, promises or agreements, orally
or otherwise, have been made by any party, or anyone acting on behalf of any party which
are not embodied herein, and that no other agreement, statement or promise not contained in
this Agreement shall be valid or binding. This Agreement may not be changed orally but
only by an agreement in writing signed by the parties.
	 
	 	10.6.	 	Notices. Any notice required or permitted to be given hereunder shall be in
writing and may be personally served or sent by United States mail, and shall be deemed to
have been given when personally served or two days after having been deposited in the
United States mail, registered or certified mail, return receipt requested, with
first-class postage prepaid and properly addressed as follows. For the purposes hereof,
the addresses of the parties hereto (until notice of a change thereof is given as provided
in this Section 10.6) shall be as follows:

	 	 	 	 	 
	 

	 	If to Employee:
	 	Robert Mercer
	 

	 	If to the Company:
	 	En Pointe Technologies, Inc.
	 

	 	 	 	100 N. Sepulveda Blvd., 19th Floor
	 

	 	 	 	El Segundo, CA 90245
	 

	 	 	 	Attention: VP-HR

	 	10.7.	 	Headings. The paragraph and subparagraph headings herein are for convenience
only and shall not affect the construction hereof.
	 
	 	10.8.	 	Further Assurances. Each of the parties hereto shall, from time to time, and
without charge to the other parties, take such additional actions and execute, deliver and
file such additional instruments as may be reasonably required to give effect to the
transactions contemplated hereby.
	 
	 	10.9.	 	Counterparts. This Agreement may be executed simultaneously in any number
of counterparts, each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.
	 
	 	10.10.	 	Separate Counsel. The Company has been represented by counsel in the negotiation
and execution of this Agreement and has relied on such counsel with respect to any matter
relating hereto. The Employee has been invited to have his own counsel

	 	 	 
	PAGE 7

	 	READ & AGREED (INITIALS):
	 

	 	RM:___(EMPLOYEE)
	 

	 	RDC: ___(EN POINTE TECHNOLOGIES)

 

 

Executive Employment Agreement: Robert Mercer

March 28, 2002

review and
negotiate this Agreement and Employee has either obtained his own counsel or has elected
not to obtain counsel.

     IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the day and year
first above written.

	 	 	 	 	 
	 

	 	“Employee”
	 	For “Company”

EN POINTE TECHNOLOGIES, INC., 

a Delaware corporation
	 
	 	 	 	 
	Name (Print):

	 	Robert Mercer
	 	Robert D. Chilman
	Signature:

	 	/s/ Robert A. Mercer
	 	/s/ Robert D. Chilman
	 

	 	 
	 	 
	Title:

	 	Senior Vice President-Taxation & Finance
	 	Vice President-Human Resources

[MERCER-EEA-03-28-02.doc]

	 	 	 
	PAGE 8

	 	READ & AGREED (INITIALS):
	 

	 	RM:___(EMPLOYEE)
	 

	 	RDC: ___(EN POINTE TECHNOLOGIES)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]