Systemax Accepts Resignation of Gilbert Fiorentino and Executes Agreement for Fiorentino to Surrender $11 Million (SYX)

Systemax SYX reported that it has accepted the resignation of Gilbert Fiorentino, Chief Executive, Technology Products Group and Director, effective immediately. His resignation follows the Company placing him on administrative leave on April 18, 2011 while considering his termination. Fiorentino was placed on administrative leave following the completion of the Company's independent investigation of its Miami, Florida operations. Systemax reported that it has also executed an agreement with Fiorentino whereby within 5 business days Fiorentino will surrender assets to the Company currently valued at approximately $11 million. The agreement requires the surrender of 1,130,001 shares of Systemax common stock owned or beneficially owned by Fiorentino and $480,000 in cash. The agreement also requires Fiorentino to disclose his and his immediate family's personal assets; forfeit undisclosed assets discovered by the Company; disclose information regarding certain matters that led to his being notified of the Company's intent to terminate him; and to fully cooperate with the Company in the future. Fiorentino and the Company also exchanged mutual general releases and nondisparagement commitments, and Fiorentino agreed to a 5 year noncompetition obligation. The financial statement benefit to the Company from this agreement, which will be less than $11 million due to accounting requirements for equity transactions and the cost of the investigation, will be recorded during the second quarter.