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Exhibit 10.16
AGREEMENT
METALLURG, INC. ("MI") and XXXXX X. XXXXXXXX ("RAB") hereby agree, for
good and valuable consideration, the receipt and sufficiency of which are
acknowledged to the following terms and conditions in connection with the
termination of RAB's employment with MI:
1) MI shall purchase an annuity in lieu of any other obligation MI may
have had with respect to continuing accrual of service in MI's pension
plan. The annuity shall provide a monthly benefit of $344 commencing
August 1, 2009 and continuing for your life with a certain term of ten
years payable to your named beneficiary in the event of your death
prior to July 31, 2019. In the event of your death prior to August 1,
2009 a lump sum settlement (approximately $25,000) would be paid to
your named beneficiary.
2) MI shall continue to pay RAB a monthly salary (subject to all of the
usual withholdings and deductions) at your current rate through
December 31, 1999.
3) Effective January 1, 2000, MI shall make a lump sum payment to RAB of
all salary that would be due to him from January 1, 2000 through
October 31, 2000 ($216,667), subject to all required withholdings and
deductions (net after tax payment of $113,040). RAB shall thereupon
release MI from any continuing obligation to make monthly salary
payments to him. The net after tax payment shall be applied against the
principal balance of, and all accrued and unpaid interest on, three tax
loans (total: $152,321) made to RAB in 1997 and 1998. The balance
remaining under said loans ($39,281) shall be forgiven by MI in
consideration for RAB's release herein and other agreements set forth
in this document and shall, as required, be reported on Form 1099 for
the year 2000.
4) MI shall assign and transfer to RAB all right, title and interest in
and to your current company automobile and RAB shall thereafter be
responsible for insuring said vehicle. RAB acknowledges that there will
be a benefit in kind of $2,000 reflected in your compensation for tax
purposes in connection with this transfer.
5) MI shall not make any further payments to, or on behalf of, RAB in
connection with any club memberships, tax preparation or advice.
6) MI shall make a payment to RAB in the amount of $7,400 corresponding to
9/12 of the 15,000 Swiss francs annual fee for service during the
period August 1998 to April 1999 as a director of FAG.
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7) MI shall pay RAB $7,222 for all accrued and unused vacation time
through April 30, 1999.
8) RAB's participation in MI's medical, dental and life insurance plans
will continue as set forth in the Employment Agreement between RAB
and MI, dated November 19, 1998 (the "Employment Agreement").
9) RAB's restriction against competition shall continue as set forth in
the Employment Agreement.
10) With the exception of the matters set forth in paragraphs 1 through 7
above, all of the terms and conditions in the Employment Agreement
shall remain in full force and effect.
11) RAB acknowledges and agrees that other than as set forth in this
Agreement, MI does not owe RAB any other amounts as salary, benefits
or reimbursements.
IN WITNESS WHEREOF, the parties have executed this Agreement as of July 2,
1999.
METALLURG, INC.
By: /s/ Xxxx X. Xxxxx
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Xxxx X. Xxxxx
President and CEO
/s/ Xxxxx X. Xxxxxxxx
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Xxxxx X. Xxxxxxxx
