FIRST AMENDMENT TO EMPLOYMENT AGREEMENT
Exhibit 10.3
FIRST AMENDMENT TO
EMPLOYMENT AGREEMENT
EMPLOYMENT AGREEMENT
This First Amendment to Employment Agreement (this “Amendment”) is made and entered into as of
July 28, 2008 by and between National Dentex Corporation, a Massachusetts corporation (the
“Company”), and Xxxxx X. Xxxxx (the “Executive”).
WHEREAS, the Company and the Executive entered into an Employment Agreement dated as of April
1, 1995 (the “Agreement”); and
WHEREAS, the Company and the Executive desire to modify the terms and conditions of the
Agreement as set forth below.
NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties agree to amend the
Agreement as follows:
1. Amendment to §3(b) of the Agreement. Section 3(b) of the Agreement is hereby
amended by deleting Section 3(b) in its entirety and replacing it with the following:
“(b) the “Disability” of the Executive, as defined below, which termination shall be
effective on the date of determination of Disability. “Disability” or “Disabled” shall
mean (i) the inability of the Executive to engage in any substantial gainful employment
activity on behalf of the Company, with or without reasonable accommodation as that term is
defined under applicable state or federal law, by reason of any medically determinable
physical or mental impairment that can be expected to result in death or to last for a
continuous period of not less than 12 months; or (ii) the Executive, by reason of any
medically determinable physical or mental impairment that can be expected to result in
death or to last for a continuous period of not less than 12 months, is receiving income
replacement benefits for a period of not less than three (3) months under an accident and
health plan covering the Company’s employees. A determination of Disability shall be made
by an independent physician selected by the Board of Directors and whose determination as
to disability shall be binding on the Company and the Executive;”
2. Amendment to §3(d) of the Agreement. Section 3(d) of the Agreement is hereby
amended by deleting Section 3(d) in its entirety and replacing it with the following:
“(d) by the Executive for “Good Reason,” meaning, a voluntary termination by the Executive
of his employment with the Company after the occurrence of one or more of the following
without the consent of the Executive (each a “Good Reason Event”): (1) a material
diminution in the Base Salary; (2) a material diminution in the Executive’s authority,
duties or responsibilities; (3) the relocation of the
Executive’s principal place of business to more than fifty (50) miles from the place where
the Executive was employed immediately prior to the relocation; or (4) any other action or
inaction that constitutes a material breach by the Company of this Agreement, provided, (A)
such Good Reason Event is not remedied or cured by the Company within 30 days after the
Company receives notice from the Executive of the occurrence of a Good Reason Event; (B)
such notice of the occurrence of a Good Reason Event is sent by the Executive no later than
30 days after the occurrence of such Good Reason Event; and (C) in all events, the
Executive terminates his employment with the Company within 120 days of the occurrence of
such Good Reason Event;”
3. Amendment to §4 of the Agreement. Section 4 of the Agreement is hereby amended by
adding a new clause (g) to Section 4 as follows:
“(g) (1) Distributions to a Specified Employee may not be made before the date that is six
months after the date of separation from service, or, if earlier, the date of death.
(2) For purposes of this section a “Specified Employee” shall mean the Executive if
the Company’s stock is publicly traded on an established securities market and the
Executive:
(i) owns more than 5 percent (5%) of the stock of the Company or any member of its
“controlled group” as that term is defined under §1563 of the Internal Revenue Code of
1986, as amended;
(ii) owns more than 1 percent (1%) of the stock of the Company and has compensation
from the Company in excess of $150,000 per year; or
(iii) is an officer of the Company with compensation in excess of $145,000 per year.
(3) Any distributions that are delayed due to this Section 4(g) will be paid in a lump sum to
the Specified Employee within five business days following the end of the six month period.”
4. Amendment to §9(f) of the Agreement. Section 9(f) of the Agreement is hereby
amended by deleting Section 9(f) in its entirety and replacing it with the following:
“(f) Any notices or other communications required or permitted hereunder shall be
sufficiently given if in writing and delivered by hand or sent by registered mail, return
receipt requested, or by recognized overnight express courier, postage prepaid, and if to
the Executive, addressed to him at the address set forth below, and if to the Company,
addressed to it at 0 Xxxxxx Xxxxx, Xxxxxx, Xxxxxxxxxxxxx
2
01760, Attention: Board of Directors, with a copy to Xxxxxxxxx Xxxxxxxxxx & Xxxx LLP,
Prudential Tower, 000 Xxxxxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx 00000, Attention: Xxxxxx X.
Xxxxxx, P.C., or such other address as shall have been specified in writing by either party
to the other, and any such notice or communication shall be deemed to have been given as of
the date so mailed.”
5. Ratification. Except as expressly amended hereby, the Agreement is hereby ratified
and confirmed in all respects and shall continue in full force and effect. This Amendment and the
Agreement shall hereafter be read and construed together as a single document, and all references
in the Agreement shall hereafter refer to the Agreement as amended by this Amendment.
6. Amendments; Governing Law. This Amendment may not be changed orally but only by a
written instrument signed by the parties hereto. This Amendment shall be governed by and
construed in accordance with the laws of the Commonwealth of Massachusetts (excluding the laws
applicable to conflicts or choice of law).
7. Counterparts. This Amendment may be executed in any number of counterparts and by
different parties hereto on separate counterparts, each of which when so executed and delivered
shall be an original, but all of which counterparts taken together shall be deemed to constitute
one and the same instrument.
[Remainder of page intentionally left blank]
3
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above
written.
| NATIONAL DENTEX CORPORATION |
||||
| By: | /s/ Xxxxxxx X. Xxxxxx, Xx. | |||
| Name: | Xxxxxxx X. Xxxxxx, Xx. | |||
| Title: | Executive Vice President | |||
| EXECUTIVE: |
||||
| /s/ Xxxxx X. Xxxxx | ||||
| Xxxxx X. Xxxxx | ||||
| Address: | ||||
4
