Circuit City 2006 Annual Report Download - page 54

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EMPLOYMENT AGREEMENT
AGREEMENT, made as of the 17
th
day of January 2007, by and between Systemax Inc. (the “Company” or
“Systemax”) and Lawrence P. Reinhold (the “Employee”).
RECITALS
The Company wishes to employ the Employee upon the terms and conditions set forth in this Agreement.
The Employee is willing to make his services available to the Company on the terms and conditions hereinafter set
forth.
NOW, THEREFORE, it is mutually agreed as follows:
1. Employment .
(a) Employment ; Title
. The Company hereby agrees to employ the Employee, as Executive Vice President and Chief
Financial Officer of the Company, and the Employee hereby accepts such employment, effective on the date hereof, on the
terms and conditions set forth herein.
(b). Term . The term of employment of the Employee by the Company under this Agreement shall commence on
January 17, 2007 and shall continue until terminated as provided in Section 3 hereof (the “Employment Period”).
(c) Duties. The Employee shall have general responsibility for managing the financial affairs of the Company, subject
to the authority and direction of the Chief Executive Officer and the Board of Directors, and such other duties as may be
determined by the Board of Directors of the Company consistent with the duties stated herein. The Employee shall perform
his duties primarily at the Company’
s offices located in Port Washington, New York subject to travel and other duties outside
of such location consistent with the Company’
s business as the CEO shall reasonably determine. In performing his duties, the
Employee shall report to the Chief Executive Officer and Board of Directors and shall be subject to the direction of the Chief
Executive Officer and Board of Directors of the Company. The Employee shall devote his full working time, attention and
skill to the business and affairs of the Company and shall use his best efforts to advance the best interests of the Company.
Nothing in this Agreement shall be construed to prohibit the Employee from serving on the board of directors of any not
-for
profit or other corporation provided that (a) such service does not create an actual or apparent conflict of interest with the
business of the Company, (b) such service is approved by the Board of Directors of the Company, and (c) such service does
not conflict with any applicable federal or state law, regulation or NYSE rule.
2. Compensation .
(a) Base Salary and Bonus . For the performance of all duties, responsibilities and services by the Employee hereunder
during the Employment Period, the Company shall pay to the Employee, and the Employee agrees to accept, a base salary
(the “Base Salary”) at an annual rate of Four Hundred Thousand Dollars ($400,000), payable in accordance with the
Company’s normal payroll practices. In addition, the Employee shall be eligible to earn a bonus during each year of the
Employment Period in an amount to be determined by the Company, in its sole discretion, which is expected to be at least
equal to fifty percent (50%) of the Employee’s Base Salary assuming the Employee meets the performance objectives
(including Company financial performance objectives) established for him by the Company (the “Bonus”). The Bonus, if
earned, shall be paid by the Company to Employee within 75 days following the end of each calendar year during the
Employment Period. The Employee’s Base Salary and Bonus will be reviewed annually by the Company and may be
increased in the discretion of the Company.
(b) Participation in Benefit Plans . The Employee shall be entitled to participate in and receive benefits under all
medical plans or other employee insurance or benefit plans and arrangements that are made available to executive employees
of the Company and on the terms that such plans, insurance and arrangements are made available to executive employees of
the Company. To the extent that any such plan or arrangement generally permits the participation or coverage of dependents
of the employees of the Company, the Employee’s dependents may participate in or be covered under such plan or program.
Notwithstanding the foregoing, the Employee
’s coverage under the Company’s medical and dental plans shall become
effective immediately upon the date hereof.
(c)
Expenses
. During the Employment Period (except as limited by Section 2(f) and Section 2(g)) the Employee shall