Exhibit 10.20
XXXXX HOLDINGS, INC.
00000 Xxxxx Xxxxx Xxxxxx - Xxxxx 000
Xxxx, Xxxxxxxx 00000
July 10, 1998
Xxxx X. Xxxxx
00000 Xxxxxx Xxxxx Xxxxxx
Xxxx, Xxxxxxxx 00000
Re: Termination of Employment Agreement
-----------------------------------
Dear Xxxx:
This is to confirm our understanding regarding the termination of your
employment agreement with Xxxxx Holdings, Inc. (the "Company") which expires on
December 31, 1999 (the "Agreement").
We agree that, pursuant to the Agreement, the Company is obligated to pay
you the sum of Two Hundred Eighty-Seven Thousand Five Hundred Dollars ($287,500)
(the "Remuneration") as of July 10, 1998, over the remainder of the term of the
Agreement ending December 31, 1999. You agree to accept the following in full
consideration and discharge of the payment to you of the Remuneration:
1. Cash in the amount of One Hundred Twenty-Eight Thousand Three Hundred
Thirty-Three and 33/100's Dollars ($128,333) (the "Cash Payment"), payable by
wire transfer upon the execution and delivery of this letter agreement and all
other documents to be executed and delivered in connection with the termination
of your employment agreement;
2. The Company's promissory note in the principal amount of Seventy-Five
Thousand Dollars ($75,000), bearing simple interest at the rate of seven percent
(7%) per annum and maturing on January 1, 2000 (the "Note"), in the form annexed
hereto as Exhibit A; and
3. The Company's agreement to issue to you 84,167 shares of its common
stock at a purchase price of One Dollar ($1.00) per share, with the closing
price of the Company's common stock being $1.03125 per share on the date hereof,
in consideration of your cancellation of the Company's indebtedness to you in
the principal amount of Eighty-Four Thousand One Hundred Sixty-Seven Dollars
($84,167), pursuant to a subscription agreement in the form annexed hereto as
Exhibit B (the "Subscription Agreement").
You agree that, upon receipt of the Cash, the Company's duly executed Note
and a copy of the Subscription Agreement duly executed by the Company, the
Agreement and your employment with the Company will automatically terminate,
without more, and you shall have no further rights under the Agreement, whether
to receive any compensation or otherwise. You further agree that, automatically
upon your receipt of the foregoing consideration in full and complete payment of
the Remuneration, without any further action on your part or the part of the
Company, you shall have waived and released the Company from any and all
liabilities, claims, costs or expenses to which you may have a right or which
you may have asserted against the Company that arise or have arisen out of or in
connection with the Agreement and/or your employment thereunder.
If the foregoing accurately sets forth our understanding with respect to
the subject matter of this letter, please so indicate by signing in the space
provided below.
Accepted and Agreed To Very truly yours,
this 10th day of July, 1998 Xxxxx Holdings, Inc.
________________________ By:___________________________
Xxxx X. Xxxxx Xxxxx Xxxxxxx, Secretary
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