VACU-DRY COMPANY
COMMISSION FILE NUMBER 01912
For the year ended June 30, 1996
Exhibit 10. (e) March 14, 1996 Xxxx X. Xxxx Employment Agreement
The Company entered into an employment agreement with Xx. Xxxx dated March
14, 1996, pursuant to which Xx. Xxxx is employed by the Company as its
President and Executive Officer. Under the agreement, Xx. Xxxx is entitled
to an annual base salary of $150,000, subject to annual review, an
incentive bonus during the first year of $75,000, one-half of which is at
the discretion of the Compensation Committee of the Board of Directors and
one-half of which is based on the Company achieving pre-tax return equal to
at least a 12% return on adjusted shareholders equity and other
requirements as may be agreed. Xx. Xxxx was granted an option to purchase
89,474 shares of the Company's common stock at $5.00 per share, the fair
market value of a share of the Company's common stock on May 1, 1996. The
options were granted pursuant to the Company's 1996 Stock Option Plan which
the Shareholders are being asked to approve at the Annual Meeting of
Shareholders. Under the agreement Xx. Xxxx serves at will provided that in
the event of termination of his employment by the Company prior to April
30, 2000 for any reason other than cause, he is entitled to twelve months
continued salary at a rate of $150,000 per year. In addition, Xx. Xxxx is
entitled to the reimbursement of relocation expenses, temporary living
expense, an automobile allowance and certain other fringe benefits.
