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GSE SYSTEMS, INC. EXHIBIT 10.18
FORM 10-K
FOR THE YEAR ENDED DECEMBER 31, 1996
EMPLOYMENT CONTRACT
EuroSim AB (the "Company") and Xxxx Xxxxx Mejvik of Lomma, Sweden ("Mr.
Mejvik") have made the following employment agreement as of 2 May 1996.
Section 1 POSITION
Mr. Xxxxxx will be employed by the Company from 1 July 1996.
Mr. Xxxxxx will be responsible for the coordination of the
operations of GSE Systems, Inc. ("GSE") in Europe, the Middle
East, Africa and the Pacific Rim. Mr. Xxxxxx will be appointed as a
senior officer for GSE under a title corresponding to "Senior Vice
President" or a similar title as mutually agreed.
Direction and guidelines for Mr. Xxxxxx's performance of services
will be issued by GSE's Chief Executive Officer (the "CEO") and
Chief Operating Officer ("COO"). Mr. Xxxxxx will report directly to
the COO.
The employment is valid for an indefinite period.
The Act (1982:80) on employment security is not applicable for
this employment.
Section 2 OTHER ASSIGNMENTS
Mr. Xxxxxx is supposed to devote all his effort to the Company and
may not without special permission from the CEO or COO in every
particular case, take on tasks for the account of others. Such
tasks, if any, should be noted in a special supplement to this
agreement.
Mr. Xxxxxx is obliged to adhere to a strict confidence with
business and Company matters which he has received information
about through his work in the Company.
Section 3 SALARY
Mr. Xxxxxx's fixed salary is SEK 75,000 per month from 1 July
1996. The salary is subject to annual review, normally in
connection with the salary review for the other executive officers
of GSE. So long as the scope of Mr. Xxxxxx's responsibilities to
the company remain substantially as
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GSE SYSTEMS, INC. EXHIBIT 10.18
FORM 10-K
FOR THE YEAR ENDED DECEMBER 31, 1996
provided by this agreement, his salary will not be reduced below
the level of SEK 75,000 per month.
Mr. Xxxxxx will participate in GSE's incentive bonus award
program, which provides for the payment of cash bonuses based on
GSE's achievements of certain performance goals established by
GSE's Board of Directors.
Section 4 HOLIDAYS
Mr. Xxxxxx is entitled to thirty (30) days annual holidays.
Section 5 COMPANY CAR
Mr. Xxxxxx is entitled to a company automobile for private and
business use. The automobile shall be of the Volvo 850 class or a
comparable model.
Section 6 OTHER BENEFITS
Mr. Xxxxxx receives compensation for costs for medical care and
medicine which is not compensated for by the social insurance
office. Compensation will not exceed 40,000 SEK annually.
The Company supplies a cellular telephone an a fax machine for
duty calls away from the office.
The rules for general employment conditions according to the
Company's agreements should be applicable as to sickness benefit,
holiday salary and savings of holidays.
Other benefits may be agreed upon in a particular agreement
between the CEO and Mr. Xxxxxx.
Section 7 BUSINESS JOURNEYS
For business journeys there will be a compensation according to
the Company's travel regulations. However, compensation for travel
time will not be paid.
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GSE SYSTEMS, INC. EXHIBIT 10.18
FORM 10-K
FOR THE YEAR ENDED DECEMBER 31, 1996
Section 8 GROUP LIFE INSURANCE
The group life insurance according to valid agreement for the Company shall be
applicable. Mr. Xxxxxx may, after particular agreement, be included in the
medical treatment insurance.
Section 9 PENSION
The retirement age for Mr. Xxxxxx is 65 years.
In addition to the pension benefits according to the law about general
insurance, Mr. Xxxxxx is assured the pension benefits which follows the valid
pension plan, including the so-called "Alternativ ITP" plan, of the Company.
From and including the month in which Mr. Xxxxxx reaches the age of 60, he has
the possibility and on the Company's request the obligation, to retire
prematurely. The party who intends to use the opportunity of an early
retirement shall inform the other party about this not less than 12 months
before the intended time for retirement. Early retirement pension should be
calculated according to supplement 1.
Section 10 NOTICE
This agreement is valid with a term of notice of 6 months from Mr. Xxxxxx's
side and 12 months from the Company's side.
If Mr. Xxxxxx is served notice of termination by the Company on or prior to the
third anniversary of the commencement date of Mr. Xxxxxx's employment
hereunder and if the notice is not a result of Mr. Xxxxxx seriously neglecting
his obligations according to the employment contract, Mr. Xxxxxx is entitled to
severance compensation, in addition to his salary during the term of notice, of
twelve (12) monthly salaries. The term "monthly salary" means the fixed
full-time salary the month before the month of notice.
The CEO has the right during the term of notice or part of it to dismiss Mr.
Xxxxxx from the handling of Company matters.
During the term of notice the Company may place holidays in accordance with the
rules of the holiday act.
Section 11 DISPUTES
Disputes because of this condition are submitted to decision according to the
law about arbitrators. The
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EXHIBIT 10.18
expenses for arbitration are to be defrayed by the Company irrespective of the
outcome. Any such arbitration shall be conducted in Sweden and in accordance
with the laws of the Kingdom of Sweden.
This agreement, which replaces the previous employment agreement dated 1 May
1996, has been issued in two copies, one for each of the parties.
Nykoping, 2 May 1996
/s/ XXXXXXX X. XXXXXXXX /s/ XXXX-XXXXX XXXXXX
----------------------------------- --------------------------------
Xxxxxxx X. Xxxxxxxx Xxxx-Xxxxx Xxxxxx
/S/ XXXX X.X. XXXXXXXXXX
-----------------------------------
Xxxx X.X. Xxxxxxxxxx
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GSE SYSTEMS, INC EXHIBIT 10.18
FORM 10-K
FOR THE YEAR ENDED DECEMBER 31, 1996
SUPPLEMENT 1
EARLY RETIREMENT PENSION
Pension before the age of 65 should be calculated as follows:
Early retirement pension should be 70 percent of the cash fixed full-time
salary the month before the resignation. (It may be 75 percent of the salary
if resignation takes place after having reached the age of 62).
For early retirement pension there is supplementary pension according to the
same rules as for ITP-pension according to the main rule of the ITP-plan.
The pension is to be paid monthly.
The Company pledges itself to see to it that the general age and family pension
benefits according to the ITP-plan is maintained at the level valid at the time
for resignation from duty.
The Company decides if the early retirement pension should be paid direct from
the Company or via intermediary or be insured.
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