Offer Letter - Systems Consulting Co. Inc. and Steven Hirschfeld
December 26, 1998 [LOGO] SCC Systems Consulting Company, Inc. Suite 500 537 Congress Street, Portland, Maine 04101 V: 207-774-3244 F: 207-772-8597 www.sccme.com Mr. Steven Hirschfeld Six Beth Court Randolph, NJ 07869 Dear Steve: This letter supercedes in its entirety that certain offer of employment dated December 24, 1998, which offer is of no further force or effect. This letter confirms our offer of employment as Vice President - Life Sciences Sales with Systems Consulting Company, Inc., (SCC) at an annual base salary of $180,000. You will report directly to Gerald O'Connell, CEO. You will be responsible for building and directing the sales team that will sell SCC's products to Pharmaceutical, Medical & Surgical Companies (collectively "life sciences companies"), as well as Consumer Goods business units within those Life Sciences Companies, worldwide. Your start date will be January 11, 1999. You will spend a week in February in New Employee Orientation. Your 1999 bonus and commission plan is outlined below: Bonus -- paid quarterly Q1 - $15,000 Guaranteed. (Q1 revenue objective is $2,500,000 Q2 - $15,000 Guaranteed. (Q2 revenue objective is $2,500,000 Q3 - $10,000 based on achieving revenues of $2,500,000. Q4 - $10,000 based on achieving revenues of $ 3,000,000. Notes: the Q1 and Q2 bonuses will be paid early, as discussed earlier with Gerry O'Connell. This will be paid with your first regular payroll upon joining the company. These bonuses are upon reasonable and mutually agreed upon goals, at this point believed to $10.5 Million in annual license revenues. Commission 0.5% on first $4.0 million of license revenues (up to $20,000) 1.0% on second $4.0 million of license revenues (up to $40,00 1.5% on third $4.0 million of license revenues (up to $60,000 1.75% on all license revenues in excess of $12.0 million. <PAGE> Overachieve Bonus Upon license revenues under your direction reaching $12.0 million, you will receive a bonus of $30,000. Additionally, up license revenues under your direction reaching $15.0 million in 1999, you will receive an additional $40,000. Note: Here and in all other references to license revenues, we are defining revenues as recognized revenues. Draw For the first six months of your employment, you will receive a non-recoverable draw against commissions of $2,000 per month. Thereafter, you will receive a recoverable draw against commissions of $2,000 per month. Options You will receive 200,000 incentive stock options at the current exercise price of $3.79 per share, vesting 25% annually from your date of hire. In the event of sale of the company or its substantial assets, merger with another company, and/or change of control of the company, 50% of all then non-vested options will vest at that time, and the remainder of non-vested options will accelerate to fully vest within 12 months of such event, provided that if the Board of Directors should determine, upon receipt of a written opinion of the Company's independent public accountants, that giving effect to this provision for acceleration would preclude accounting for any proposed business combination of the Company with another entity as a pooling of interests, and the Board otherwise desires to approve such a proposed business combination which requires as a condition to the closing of such transaction that it be accounted for as a pooling of interests, then this acceleration provision shall be null and void. You will also be given the opportunity to earn incremental stock options, based on performance, as part of each annual compensation plan to be defined by Gerry O'Connell. <PAGE> Severance In the event that you are terminated other than for cause (cause being defined as dishonesty or criminal activity) in the first twenty-four months of your employment with SCC its successor, successors or assigns you will receive a severance package equal to twelve months of your base pay (at the time of the severance) together with all accrued bonuses and commissions. If you are terminated after twenty-four months of service, you will receive six months severance equal to your base pay (at that time) and any accrued bonuses and commissions. The above severance will also be paid upon your resignation following a change of control or management which alters your duties or responsibilities or compensation, or renders working conditions unreasonable. Car Allowance You will receive a $500 monthly car allowance and the typical IRS rate of $.16 per mile for employees with a car allowance. SCC will provide written performance evaluations semi-annually. Enclosed for your review is information regarding the Immigration Reform and Control Act of 1986. Upon accepting a position with SCC, the I-9 Form must be completed to verify identity and employment eligibility as required by law. You will be asked to complete an I-9 on your first day of employment with SCC. Please bring the appropriate documentation with you at that time. You are also required to sign SCC's standard Nondisclosure, Developments and Noncompete Agreement as a condition of your employment. By signing this letter, you are representing to SCC that you are not subject to any agreement, which precludes you from accepting this offer. Please sign and return this letter at your earliest convenience. We believe you will find great satisfaction and personal growth with SCC and we look forward to working with you. <PAGE> Sincerely, /s/ Philip M. St. Germain 12/26/98 -------------------------------- ------------ Philip M. St. Germain, CFO Date Accepted, /s/ Steven Hirschfeld 12/26/98 -------------------------------- ------------ Steven Hirschfeld Date