Exhibit (10)-T
ADDENDUM
This Addendum is effective as of December 23, 1996 between Cable
Car Beverage Corporation, a Delaware corporation (the "Company"), and
Xxxxxx X. Xxxxxxx, an individual resident of Colorado ("Executive").
WHEREAS, the Company and Executive entered into an Employment
Agreement, dated as of December 15, 1994 (the "Employment Agreement")
as amended January 9, 1996; and
WHEREAS, the Company and Executive wish to modify certain terms
of the Employment Agreement;
NOW THEREFORE, the Company and Executive agree as follows:
Section 5.01 of the Employment Agreement shall be replaced in
its entirety with the following:
"5.01Base Salary. Commencing on December 23, 1996, as
compensation for services rendered by Executive under this Agreement,
the Company shall pay to Executive a salary of $175,000 per year ("Base
Salary" as adjusted pursuant to Section 5.02 below) which Base Salary
shall be paid on a regular basis in accordance with the Company's current
payroll procedures and policies."
Section 5.03 of the Employment Agreement shall be replaced in its
entirety with the following:
"5.03Incentive Compensation. In addition to the Base Salary
described in Section 5.01, above, Executive shall be eligible to receive
such incentive compensation as the Board of Directors, in their sole
discretion, may determine from time to time. For the fiscal year ending
December 31, 1997, Executive shall be paid a bonus of $20,000 per point.
Executive shall earn points for the Company's 1997 net sales as follows:
$18,000,000 - $19,999,999 = 1 point
$20,000,000 - $22,999,999 = 2 points
$23,000,000 - $25,999,999 = 3 points
$26,000,000 and above = 4 points
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Executive shall earn points for the Company's 1997 "Adjusted Net
Income" (as defined below) as follows:
$1,000,000 - $1,249,999 = 1 point
$1,250,000 - $1,499,999 = 2 points
$1,500,000 - $1,799,999 = 3 points
$1,800,000 and above = 4 points
Points are not cumulative - e.g. if the
Company's 1997 net sales are $27,000,000 and
the Company's 1997 Adjusted Net Income is
$1.9 million, executive earns 8 points, not 20
points.
Section 5.07 shall be added to the Employment Agreement as follows:
"5.07Death Benefit. In the event of the death of
Executive the Company shall pay a death benefit to
Executive's estate in the amount equal to one year of
Executive's then current annual base salary. Said payment
shall be made within thirty (30) days following Executive's
death."
For purposes of this Agreement, "Adjusted Net Income" shall be defined
as the Company's net income for the fiscal year except that any bonuses
payable to Executive pursuant to this Agreement shall not be included in
salary expense for purposes of calculating Adjusted Net Income. Except
for the exclusion of bonuses payable hereunder, net income shall be
determined in accordance with generally accepted accounting principles
applied on a consistent basis.
In addition, Executive shall earn 2 points if the Company acquires
royalty-free ownership of the Xxxxxxx'x trademark (for all uses other
than Xxxxxxx'x Restaurants) on terms approved by the Company's Board of
Directors.
Any bonus payable hereunder shall be paid to Executive not later than
forty-five (45) days following the end of the fiscal year for which such
bonus is payable."
Except for the express changes set forth above, all terms and
provisions of the Employment Agreement remain unchanged and are in full
force and effect.
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IN WITNESS THEREOF, the parties have executed this Agreement as
of the day and year set forth above.
Cable Car Beverage Corporation Executive
By: /s/Xxxxx Xxxxxxx /s/Xxxxxx X. Xxxxxxx
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Xxxxx Xxxxxxx, Chief Accounting Officer Xxxxxx X. Xxxxxxx
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