EXHIBIT (10q)
DATE: October 19, 1998
TO: Xxxxxxx X. Xxxxxx
FROM: X. Xxxxx Xxxxxx
SUBJECT: Retirement Agreement
It is my intention to retire effective July 1, 1999. This memorandum is intended
to state the agreement between Xxxxxxx X. Xxxxxx, President & CEO and me.
(1) Retirement pay will begin on July 1,1999. The payment will be
calculated at 65% of my "final pay", the final pay being no less than
$150,000, and no early retirement reduction factor will be applied.
This will produce a monthly payment at an annual rate of no less than
$66,125 under the 100% Joint and Survivor option.
(2) A severance fee of $185,000 will be paid to me in the increments and
on the dates listed below:
a) $85,000 on July 1, 1999
b) 50,000 on January 3, 2000
c) 50,000 on January 4, 2001
In the event of my death prior to January 5, 2001, these severance fees
will be paid to my spouse, or should my spouse not survive me, to my
estate.
(3) After July 1, 1999, spousal medical coverage will be available to my
spouse under the same circumstances as if my retirement occurred at age
62. Spousal coverage will continue should I die before my spouse.
(4) I intend to purchase the Company vehicle I am presently driving, under
the policy provided for retiring officers. (See Attachment)
X. Xxxxx Xxxxxx, Retirement Agreement
October 19, 1998
Page 2 of 2
(5) There is no intention in this memo to cover 401K or Deferred
Compensation Programs that are provided under separate Company plans.
If this proposal accurately states the understanding between us I would
appreciate your signature on this document.
/s/ Xxxxxxx X. Xxxxxx /s/ X. Xxxxx Xxxxxx
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Xxxxxxx X. Xxxxxx X. Xxxxx Xxxxxx
President & CEO Treasurer & Controller
