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Exhibit 10.7
June 11, 1997
Xx. Xxxxx Xxxx
0 Xxxxx Xxxx
Xxxxx, XX 00000
Dear Al:
You are a valued employee of our Company and have earned the Vice Presidency to
which you were appointed on December 13, 1995 by the Xxxxxx Board of Directors.
In consideration of your efforts on behalf of our Company, we are pleased to
offer the following Severance Agreement, which will be ratified by the Board of
Directors at its next meeting:
1. If your employment is terminated at any time within two years from this
date for reasons other than as stated in Paragraph 3 below, you will
receive a lump-sum payment equivalent to two years base pay.
2. If your employment is terminated after two years, but less than five years
from this date, for reasons other than stated in Paragraph 3 below, you
will receive a lump sum payment equivalent to one year base pay.
3. If your employment is terminated for cause, which shall be for the
commission of an act of moral turpitude materially adversely affecting the
financial condition of the Company or a breach of your fiduciary
responsibilities as an officer of the Company, which shall materially
adversely affect the financial condition of the Company, the Company will
be under no obligation to, nor will the Company make any payments under
this severance agreement.
Sincerely,
XXXXXX INDUSTRIES, INC.
Xxxxx Xxxx
President
ML/mmg
cc: X. Xxxxx
