The Xxxxxxxxx Corporation
000 Xxxx 00xx Xxxxxx, 00xx Xxxxx Xxx Xxxx, XX 00000 000-000-0000 / Fax:
000-000-0000
Xxxxxxx X. Xxxxxxx
Chairman & Chief Executive Officer
January 22, 0000
Xxxxxx X. Xxxxxx, Xxxxxxx
The Xxxxxxxxx Corporation
00000 Xxxxxxxx Xxxxx, Xxxxx 000
Xxxxxx, XX 00000
RE: Amendment to Incentive Contract dated February 27, 1998
Dear Xxxxxx:
You and The Xxxxxxxxx Corporation ("Xxxxxxxxx") have entered into a letter
agreement dated as of February 27, 1998 (your "Incentive Contract"), regarding
severance and change of control payments as an incentive to your continued
employment with Xxxxxxxxx. This letter constitutes an "Amendment" to your
Incentive Contract. Capitalized terms used but not otherwise defined herein have
the meaning ascribed to them in your Incentive Contract. This Amendment is
entered into in order to induce your continued employment with Xxxxxxxxx, and
for other valuable consideration, the receipt and adequacy of which are
acknowledged by both parties.
Satisfaction of Change of Control Payment Obligations: Your Incentive Contract
provides that in the event of a Change of Control, you shall be entitled to
receive certain payments from Fairchild. On December 3, 2002, Xxxxxxxxx
Fasteners was acquired by Alcoa Inc. (the "Alcoa Transaction"). In connection
with the Alcoa Transaction, and the relinquishment of your rights to any future
change of control payments under your existing Incentive Contract, the Company's
Board of Directors has agreed that you are entitled to a change of control
payment in the aggregate amount of $1,125,000. Fifty percent (50%) of such
payment was made to you in December 2002. The remaining 50% shall be paid to you
in four equal quarterly installments, with the first installment to be made on
March 3, 2003.
By executing this Amendment, you agree that the payments made or to be made to
you in connection with the Alcoa Transaction (as provided in the paragraph
above) fully satisfy Xxxxxxxxx'x obligations to you under the paragraph "Change
Of Control" in your Incentive Contract. You also agree that Xxxxxxxxx shall have
no further payment obligations to you under the "Change of Control" paragraph in
your Incentive Contract, irrespective of any future "Change of Control," and
that such paragraph shall be deemed deleted, in its entirety, from your
Incentive Contract effective as of the date hereof.
Effect of Amendment: Except as amended hereby, your Incentive Contract shall
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remain in full force and effect.
Governing Law: This Amendment shall be governed by Delaware law, without regard
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to its conflict of law provisions.
Amendments and Waivers. This Amendment may not be amended or waived except in
writing, signed by the person against whom such amendment or waiver or sought to
be enforced.
Subject to Board Ratification. This Amendment is conditioned on approval and
ratification by Xxxxxxxxx'x Board of Directors. In the event such approval and
ratification is not obtained on or before March 31, 2003, this Amendment shall
be null and void.
Please acknowledge your agreement with the terms of this Amendment by signing
the attached copy and returning same to The Xxxxxxxxx Corporation (Attention,
Xxxx Xxxx.) This Amendment shall be effective as of the date of your acceptance
or upon the approval and ratification by Xxxxxxxxx'x Board of Directors
(whichever occurs last).
Very truly yours,
THE XXXXXXXXX CORPORATION
By: /s/ XXXXXXX X. XXXXXXX
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Xxxxxxx X. Xxxxxxx
Chairman & Chief Executive Officer
ACCEPTED AND AGREED
/s/ XXXXXX X. XXXXXX Date: January 22, 2002
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Xxxxxx X. Xxxxxx
Date of Board Approval and Ratification: February 6, 2003
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