SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of
report (Date of earliest event reported)
June
20,
2007
GP
Strategies Corporation
(Exact
Name of Registrant as Specified in Its Charter)
Delaware
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1-7234
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13-1926739
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(State
or Other Jurisdiction
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(Commission
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(IRS
Employer
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of
Incorporation)
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File
Number)
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Identification
No.)
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6095
Marshalee Drive, Suite 300, Elkridge, MD
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21075
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(Address
of Principal Executive Offices)
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(Zip
Code)
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Registrant’s
telephone number, including area code:
(410)
379-3600
_________________________________________________
(Former
Name or Former Address, if Changed Since Last Report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (
see
General
Instruction A.2. below):
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item
5.02
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Departure
of Directors or Certain Officers; Election of Directors; Appointment
of
Certain Officers; Compensatory Arrangements of Certain
Officers
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On
June
20, 2007, the Compensation Committee and the Board of Directors of GP Strategies
Corporation, a Delaware corporation (“
the
Company
”),
approved amendments to the employment agreements of Scott N. Greenberg, Chief
Executive Officer, and Douglas E. Sharp, President.
The
existing employment agreements of Mr. Greenberg and Mr. Sharp, as previously
amended, were due to end on June 30, 2008. The amendments to both employment
agreements extend the terms of the agreements indefinitely, subject to
termination upon two years’ notice or for cause, as provided in the employment
agreements. The amendments also delete the requirement for
annual
minimum mandatory salary increases and make other revisions as set forth in
the
amendments.
Copies
of
the amendments to the employment agreements are attached hereto as Exhibits
10.1
and 10.2 and are incorporated herein by reference.
Item
9.01
Financial
Statements and Exhibits.
(d)
Exhibits.
Exhibit
No.
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Description
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10.1
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Amendment,
dated June 20, 2007, to Employment Agreement dated as of July 1,
1999
between the Company and Scott N. Greenberg.
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10.2
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Amendment,
dated June 20, 2007, to Employment Agreement dated as of July 1,
1999
between the Company and Douglas E.
Sharp.
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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GP
STRATEGIES CORPORATION
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Date:
June 26, 2007
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/s/ Kenneth L. Crawford
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Senior
Vice President, General Counsel &
Secretary
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EXHIBIT
INDEX
Exhibit
No.
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Description
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Amendment,
dated June 20, 2007, to Employment Agreement dated as of July 1,
1999
between the Company and Scott N. Greenberg.
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10.2
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Amendment,
dated June 20, 2007, to Employment Agreement dated as of July 1,
1999
between the Company and Douglas E.
Sharp.
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AMENDMENT
TO EMPLOYMENT AGREEMENT
This
Amendment is dated and made as of June 20, 2007, modifying the Employment
Agreement dated as of July 1, 1999 (together with any and all previous
amendments, the “Employment Agreement”) between GP Strategies Corporation (the
“Company”) and Scott N. Greenberg (“Employee”).
Whereas,
the Company and Employee wish to amend the Employment Agreement to extend the
term of the Employment Agreement, delete the requirement for annual minimum
mandatory salary increases and make other revisions as set forth
below.
NOW,
THEREFORE, intending to be legally bound, and for good and valuable
consideration, including the mutual covenants set forth herein, the Company
and
the Employee hereby agree to amend the Employment Agreement as
follows:
1.
Section
3
(Term of Employment) of the Employment Agreement is hereby amended to read
in
its entirety as follows:
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“Unless
sooner terminated in accordance with the provisions of this Agreement
the
term of employment of Employee by the Company pursuant to this Agreement
shall be for the period (the “Employment Period”) commencing on the date
hereof and ending on the earlier of (a) the date determined in accordance
with Section 10 below, (b) the date which is not less than two (2)
years
after the Company or Employee has given written notice to the other
of its
decision to end the Employment Period (but in no case prior to February
28, 2009), or (c) the date mutually agreed in writing by Company
and
Employee.”
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2.
Subsection
5(a) of the Employment Agreement is hereby amended to read in its entirety
as
follows:
“
Base
Salary
.
During
the Employment Period, the Company shall pay to Employee a base annual salary
at
the rate paid by the Company to Employee immediately prior to the commencement
of the Employment Period, and as increased each July 1 during the Employment
Period as determined by the Board. The base salary will be payable at such
intervals (at least monthly) as salaries are paid generally to other executive
officers of the Company. During any period in which the Employee is eligible
to
receive salary replacement payments under the provisions of any benefits plan(s)
sponsored or maintained by the Company, the Company’s obligation to pay salary
shall be reduced by an amount equal to the amount of benefits paid or payable
under such plan(s).”
3.
Section
7
(Non-Competition, Non-Solicitation) of the Employment Agreement is hereby
amended by substituting “one (1) year” for “nine months” where it appears in the
first sentence thereof.
4.
Schedule
A attached to the Employment Agreement is hereby amended to read in its entirety
as set forth in the Schedule A attached to this Amendment.
5.
Except
as
otherwise amended hereby, the Employment Agreement shall remain unmodified
and
in full force and effect.
IN
WITNESS WHEREOF, the Company and the Employee have duly executed this Amendment
as of the date first above written.
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GP
STRATEGIES CORPORATION
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By:
/s/
Harvey P. Eisen
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/s/
Scott N.
Greenberg
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Chairman
of the Board
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Scott
N. Greenberg
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Schedule
A
Employee’s
bonus for each calendar year during the Employment Period, commencing 2007,
shall equal (i) 1% of Employee’s base salary for that year for each 1% increase
in EBITDA from the prior year’s EBITDA, up to a 10% increase in EBITDA, (ii) 2%
of Employee’s base salary for that year of each 1% increase in EBITDA from the
prior year’s EBITDA, in excess of a 10% increase up to a 15% increase in EBITDA,
and (iii) 3% of Employee’s base salary for that year for each 1% increase in
EBITDA from the prior year’s EBITDA, in excess of a 15% increase up to a 25%
increase in EBITDA. The maximum bonus for any calendar year during the
Employment Period shall equal 50% of Employee’s base salary for that
year.
EBITDA
shall mean the consolidated earnings of GPS and its subsidiaries before
interest, taxes, depreciation and amortization, excluding extraordinary or
unusual nonrecurring items of income and expense (including without limitation,
restructuring charges, severance, write off of goodwill, future lease expense
and similar items), determined in accordance with generally accepted accounting
principles by GPS’s independent accountants. In calculating the bonus for any
year in which GPS or its subsidiaries acquires any business, the EBITDA for
the
prior year shall be adjusted to reflect the budgeted EBITDA of the acquired
business (as set forth in the budget numbers on which the acquisition was based)
for the period from the date of the acquisition to the end of the calendar
year
in which the acquisition takes place. In calculating the bonus for any year
in
which GPS or its subsidiaries disposes of any business, the EBITDA for that
year
and the prior year shall be adjusted to eliminate income and expense reasonably
attributable to the disposed of business. The bonus for any year shall be paid
not later than 30 days after delivery of GPS’s audited financial statements for
that year.
AMENDMENT
TO EMPLOYMENT AGREEMENT
This
Amendment is dated and made as of June 20, 2007, modifying the Employment
Agreement dated as of July 1, 1999 (together with any and all previous
amendments, the “Employment Agreement”) between GP Strategies Corporation (the
“Company”) and Douglas Sharp (“Employee”).
Whereas,
the Company and Employee wish to amend the Employment Agreement to extend the
term of the Employment Agreement, delete the requirement for annual minimum
mandatory salary increases and make other revisions as set forth
below.
NOW,
THEREFORE, intending to be legally bound, and for good and valuable
consideration, including the mutual covenants set forth herein, the Company
and
the Employee hereby agree to amend the Employment Agreement as
follows:
1.
Section
3
(Term of Employment) of the Employment Agreement is hereby amended to read
in
its entirety as follows:
|
“Unless
sooner terminated in accordance with the provisions of this Agreement
the
term of employment of Employee by the Company pursuant to this Agreement
shall be for the period (the “Employment Period”) commencing on the date
hereof and ending on the earlier of (a) the date determined in accordance
with Section 10 below, (b) the date which is not less than two (2)
years
after the Company or Employee has given written notice to the other
of its
decision to end the Employment Period (but in no case prior to February
28, 2009), or (c) the date mutually agreed in writing by Company
and
Employee.”
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2.
Subsection
5(a) of the Employment Agreement is hereby amended to read in its entirety
as
follows:
“
Base
Salary
.
During
the Employment Period, the Company shall pay to Employee a base annual salary
at
the rate paid by the Company to Employee immediately prior to the commencement
of the Employment Period, and as increased each July 1 during the Employment
Period as determined by the Board. The base salary will be payable at such
intervals (at least monthly) as salaries are paid generally to other executive
officers of the Company. During any period in which the Employee is eligible
to
receive salary replacement payments under the provisions of any benefits plan(s)
sponsored or maintained by the Company, the Company’s obligation to pay salary
shall be reduced by an amount equal to the amount of benefits paid or payable
under such plan(s).”
3.
Section
7
(Non-Competition, Non-Solicitation) of the Employment Agreement is hereby
amended by substituting “one (1) year” for “nine months” where it appears in the
first sentence thereof.
4.
Schedule
A attached to the Employment Agreement is hereby amended to read in its entirety
as set forth in the Schedule A attached to this Amendment.
5.
Except
as
otherwise amended hereby, the Employment Agreement shall remain unmodified
and
in full force and effect.
IN
WITNESS WHEREOF, the Company and the Employee have duly executed this Amendment
as of the date first above written.
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GP
STRATEGIES CORPORATION
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By:
/s/
Harvey P. Eisen
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/s/
Douglas
Sharp
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Chairman
of the Board
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Douglas
Sharp
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Schedule
A
Employee’s
bonus for each calendar year during the Employment Period, commencing 2007,
shall equal (i) 1% of Employee’s base salary for that year for each 1% increase
in EBITDA from the prior year’s EBITDA, up to a 10% increase in EBITDA, (ii) 2%
of Employee’s base salary for that year of each 1% increase in EBITDA from the
prior year’s EBITDA, in excess of a 10% increase up to a 15% increase in EBITDA,
and (iii) 3% of Employee’s base salary for that year for each 1% increase in
EBITDA from the prior year’s EBITDA, in excess of a 15% increase up to a 25%
increase in EBITDA. The maximum bonus for any calendar year during the
Employment Period shall equal 50% of Employee’s base salary for that
year.
EBITDA
shall mean the consolidated earnings of GPS and its subsidiaries before
interest, taxes, depreciation and amortization, excluding extraordinary or
unusual nonrecurring items of income and expense (including without limitation,
restructuring charges, severance, write off of goodwill, future lease expense
and similar items), determined in accordance with generally accepted accounting
principles by GPS’s independent accountants. In calculating the bonus for any
year in which GPS or its subsidiaries acquires any business, the EBITDA for
the
prior year shall be adjusted to reflect the budgeted EBITDA of the acquired
business (as set forth in the budget numbers on which the acquisition was based)
for the period from the date of the acquisition to the end of the calendar
year
in which the acquisition takes place. In calculating the bonus for any year
in
which GPS or its subsidiaries disposes of any business, the EBITDA for that
year
and the prior year shall be adjusted to eliminate income and expense reasonably
attributable to the disposed of business. The bonus for any year shall be paid
not later than 30 days after delivery of GPS’s audited financial statements for
that year.