EXHIBIT 10.28
X. XXXXXXXX XXXXXXXXX AGREEMENT
June 6, 2002
Xxxxxx X. Xxxxxxxx
0 Xxxxxxxxxx Xxxx
Xxxxxxxxx, XX 00000
Dear Xxx:
This Letter will summarize the agreement between you and IEC Electronics
Corp. (the "Company") with respect to all issues relating to your cessation of
employment with the Company:
1. You hereby resign your employment and all positions and offices with the
Company and its subsidiaries, including that of director, effective immediately.
2.The Company will pay or provide to you the following amounts and
benefits:
(a)Your full salary and benefits though August 20, 2002, the expiration
date of your Employment Agreement.
(b) Additional severance payments in an aggregate amount equal to six (6)
months salary at your current annual rate; said payments will commence on
September 30, 2002 and will be payable in six (6) equal monthly installments on
the last day of the month, with the last installment to be paid on March 31,
2003. Notwithstanding the foregoing sentence, if at any time between the date
hereof and March 31, 2003 you receive compensation for services rendered in any
capacity, all such compensation shall be offset against the severance payments
due from the Company between September 30, 2002 and March 31, 2003. You agree to
promptly notify the Company of all such compensation. If the Company fails to
pay a severance payment installment within ten days after the due date, interest
will accrue on the unpaid amount of the severance payment at the rate of 18% per
annum.
(c) You will continue to be provided with health, dental, life and
accident, death and disability insurance at Company expense through March 31,
2003. At that time, you will be provided with the option to continue coverage
pursuant to COBRA and applicable law.
(d) Reimbursement for lease costs of your automobile through August 2002.
(e) At your election, the Company will provide you with either (i)
outplacement services for a period of six (6) months at a cost not to exceed
$10,000 or (ii) the lease costs for the balance of the lease term on the
automobile. In the event you desire the outplacement services, and the auto
lessor will not accept a lease transfer, the Company will provide you with an
amount equal to the greater of the costs associated with (i) and (ii) above, and
you will determine the manner in which to apply the funds.
3. The Company hereby releases you from the covenant not to compete
contained in Section 9 of your Employment Agreement dated as of August 11, 2000;
however, you acknowledge and agree that the Confidentiality provisions in
Section 8 of said Agreement continue to remain in full force and effect.
4. (a) You agree that the terms set forth in this Letter are in full
satisfaction of all obligations the Company has to you, known and unknown. You
do hereby irrevocably and unconditionally release the Company, its affiliates,
officers, directors, employees, agents, representatives, successors and assigns
from any and all claims, demands and liabilities whatsoever, including, but not
limited to, any claims in contract or tort and any claims in connection with
your employment with the Company, the termination of that employment, or
pursuant to any federal, state or local employment laws, regulations, executive
orders or other requirements. In exchange for the benefits being accorded to you
under this Letter, it is your intent to provide to the Company the broadest
release of claims and liabilities that may be provided by law.
(b)The Company agrees that this Letter shall be in complete and final
settlement of and releases you, your heirs, executors, administrators and
assigns and all others connected with you, from any and all causes of action,
rights or claims which the Company has had in the past or now has against you in
any way related to or arising out of your employment and its termination.
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5. Without additional compensation, you agree to provide transition support
and help with such projects as the Company may reasonably request between now
and March 31, 2003. The Company will pay your reasonable expenses incurred in
connection therewith.
If legal proceedings are brought to enforce this Letter Agreement, the
prevailing party shall be entitled to recover its or his reasonable attorney's
fees.
This Letter contains the entire agreement between the parties with respect
to all issues relating to the cessation of your employment with the Company.
If this Letter accurately reflects our agreement, please do indicate by
executing a copy of this Letter as indicated below and returning the same to us
by 1:30 p.m. on June 6, 2002, failing which this offer is withdrawn and becomes
null and void.
Sincerely yours,
IEC Electronics Corp.
By:
/s/ Xxxxx X. Xxxxxxxx
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Xxxxx X. Xxxxxxxx, Chairman
Compensation Committee
ACKNOWLEDGED AND AGREED
/s/ Xxxxxx X. Xxxxxxxx
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Xxxxxx X. Xxxxxxxx
Date:
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