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EXHIBIT 10.20
AMENDMENT TO SEVERANCE COMPENSATION AGREEMENT
This Amendment to Severance Compensation Agreement (the "Amendment") is
made and entered into as of August 28, 1998, by and between Interactive Flight
Technologies, Inc., a Delaware corporation (the "Company"), and Xxxxxxx Xxxxx
(the "Executive"), with reference to the following facts:
A. The Company and Executive are parties to that certain Severance
Compensation Agreement dated as of September 12, 1997 (the "Severance
Compensation Agreement").
B. The parties wish to amend the Severance Compensation Agreement as set
forth herein.
NOW THEREFORE, based on the mutual covenants contained herein, the parties
agree as follows:
1.3 Anything in this Agreement to the contrary notwithstanding, in the
event it shall be determined by KPMG Peat Marwick, LLP that any payment by the
Company to or for the benefit of the Executive (whether paid or payable pursuant
to the terms of this Agreement or otherwise, but determined without regard to
any additional payments required under this Section 1.3) (a "Payment") would be
subject to the excise tax imposed by Section 4999 of the Internal Revenue Code
of 1986, as amended, (the "Code") or any interest or penalties are incurred by
the Executive with respect to such excise tax (such excise tax, together with
any such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall, at the same time that the payment
giving rise to the excise tax is made, receive an additional payment (a
"Gross-Up Payment") in an amount such that after payment by the Executive of all
taxes (including any interest or penalties imposed with respect to such taxes)
and Excise Tax imposed upon the Gross-Up Payment, the Executive retains an
amount of the Gross-Up Payment equal to the Excise Tax imposed upon the
Payments.
5.10 GRANTOR TRUST. The Company shall establish a grantor trust to
assist it in meeting its obligations hereunder.
IN WITNESS WHEREOF, the parties have executed this Amendment as of the date
first above written.
INTERACTIVE FLIGHT TECHNOLOGIES, INC. EXECUTIVE
/s/ XXXX X. XXXXXXXX /s/ XXXXXXX XXXXX
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name: Xxxx X. Xxxxxxxx Xxxxxxx Xxxxx
title: Treasurer
