EXHIBIT 10.15
SM&A
AMENDMENT NO. 2 TO EMPLOYMENT AGREEMENT
OF
XXXXXXX X. XXXXXXX
This Amendment No. 2 to Employment Agreement (this "Amendment") is
entered into as of January 20, 2003 by and between SM&A, a California
corporation formerly known as Emergent Information Technologies, Inc. ("SM&A"),
and Xxxxxxx X. Xxxxxxx ("Employee"), with reference to the following:
A. SM&A and Employee are parties to that certain Employment Agreement dated as
of October 4, 2002, as amended by Amendment No. 1 to Employment Agreement dated
as of January 30, 2003 (as amended, the "Employment Agreement") pursuant to
which Employee has agreed to perform services for SM&A on the terms and
conditions set forth therein.
B. Employee and SM&A desire to amend the Employment Agreement to reflect certain
agreed upon changes in Employee's title, the term, compensation and benefits.
NOW, THEREFORE, in consideration of the promises and obligations
contained herein and in the Employment Agreement, SM&A and Employee agree to
amend the Employment Agreement as follows, with each such amendment to become
effective as of January 1, 2004:
1. Term. Section 1.2 of the Employment Agreement shall be amended and
restated to read in its entirety as follows:
1.2. This Agreement shall be effective as of November 1, 2001 (the
"Effective Date") and shall terminate on December 31, 2006 unless sooner
terminated pursuant to the terms set forth below.
2. Duties. Section 2.1 of the Employment Agreement is hereby amended to
reflect Employee's title as President and Chief Operating Officer of the
Company.
3. Base Salary: Paragraph 1 of Exhibit A to the Employment Agreement,
entitled "Base Salary", shall be amended and restated to read in its entirety as
follows:
"BASE SALARY. Effective January 1, 2004, Employee's base annual salary
shall be $300,000 per year, paid in accordance with the Company's
standard payroll practices for its executive officers (the "Base
Salary"). The Base Salary shall be increased to $330,000 effective
January 1, 2005 and to $360,000 effective January 1, 2006.
4. Cash Bonus in the Event of Certain Transactions: Paragraph 3 of
Exhibit A to the Employment Agreement, entitled "Cash Bonus in Event of Certain
Transactions", shall be amended and restated to read in its entirety as follows:
CASH BONUS IN THE EVENT OF CERTAIN TRANSACTIONS. If a Change of Control
(as defined in the Agreement) occurs, Employee shall be paid a cash
bonus equal to his current Base Salary per year no later than 10 days
after the effective date of such Change in Control. Any such amount
shall be in addition to payments to which Employee may become entitled
to under Section 12.3 of the Employment Agreement.
5. Options. Paragraph 7 of Exhibit A to the Employment Agreement shall
be amended and restated to read in its entirety as follows:
OPTIONS. On each January 1 on which Employee continues to be employed by
SM&A, Employee shall be granted a stock option, issued pursuant to
SM&A's Amended and Restated 1997 Stock Option Plan or any future stock
incentive plan approved by the Board of Directors and the shareholders,
to purchase up to 100,000 shares of Common Stock. The exercise price of
each stock option shall be equal to the fair market value of the Common
Stock on the date of grant and the options shall each vest (i.e., become
exercisable) in sixteen equal quarterly installments, commencing on the
three-month anniversary of the date of grant. Such stock options shall
be in the form generally approved for grants to officers of SM&A;
provided, however, that such stock options shall vest in full upon the
occurrence during the term of the employment agreement to which this
Exhibit A is attached of a Change of Control (as defined in such
employment agreement). The grant for 2004 shall be made by the Board of
Directors or the Compensation Committee as soon as practicable after the
date of this Amendment, but vesting shall commence as to such shares on
April 1, 2004 and continue on each three month anniversary of April 1 so
long as employee remains employed by SM&A.
6. Cash Bonus Opportunity: A new paragraph 8 shall be added to Exhibit A
to the Employment Agreement, which shall read in its entirety as follows:
If the Company's revenues for the fiscal year ended December 31, 2004
exceed $100,000,000, then employee shall be paid a cash bonus of
$150,000 no later than March 15, 2005, subject to applicable tax
withholding requirements.
7. Medical Cost Reimbursement. A new paragraph 9 shall be added to
Exhibit A to the Employment Agreement, which shall read in its entirety as
follows:
The Employee shall be entitled to receive reimbursement for documented
medical expenses of the Employee and his dependents not otherwise
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covered by the Company's medical plan and long term care and disability
insurance coverage for the Employee.
8. Housing Cost Reimbursement. A new paragraph 10 shall be added to
Exhibit A to the Employment Agreement, which shall read in its entirety as
follows:
The Employee shall be entitled to receive reimbursement for documented
expenses incurred in rental of an apartment in Newport Beach, California
or the surrounding metropolitan area, in an amount not to exceed $1,850
per month during the term of the Employment Agreement.
9. General. Headings used in this Amendment are for convenience only and
are not intended to affect the meaning or interpretation of this Amendment.
Except as set forth in this Amendment, the Employment Agreement shall remain in
full force and effect. The Employment Agreement (as superseded in part by this
Amendment) each prior amendment, and this Amendment constitute the entire
agreement among the parties with respect to the subject matter hereto and
supersedes any and all other agreements, either oral or in writing, among the
parties with respect to the subject matter hereof. Each party represents and
warrants to the other that the Employment Agreement and this Amendment
constitute the legal, valid and binding obligation of such party, enforceable in
accordance with their terms. Any other amendment or modification may only be in
a writing executed by all of the parties hereto.
IN WITNESS WHEREOF, the undersigned have executed this Amendment as of
January 20, 2003.
SM&A
By: /s/ Xxxxxx X. Xxxxx
------------------------------
Xxxxxx X. Xxxxx
Chairman and
Chief Executive Officer
/s/ Xxxxxxx X. Xxxxxxx
-----------------------------------
Xxxxxxx X. Xxxxxxx
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