Exhibit 10.56
SEVERANCE AGREEMENT
XXXXX X. XXXXXXX
This Agreement is entered into between Xxxxxxx Technology Company, Inc. (the
"Company") and Xxxxx X. Xxxxxxx (the "Employee") regarding said Employee's
separation of employment from the Company on August 2, 2002. As set forth
herein, both the Company and Employee agree that all obligations under the
Employment Agreement between Employee and the Company dated April 7, 2000 have
been met.
1) The Company, in accordance with Paragraph 9 of said Agreement, will deliver
and the Employee will accept: (1) a check in the amount of $4,807.69 paid to me
on August 1, 2002 representing my final regular weekly salary for the week
ending August 2, 2002, (2) a check in the amount of $17,307.66 paid to me on
August 2, 2002 representing seventeen and one-half days accrued and accumulated
vacation, less the requisite deductions, and (3) a severance payment in the
amount of $250,000, payable on a schedule of $125,000 on August 15, 2002,
$62,500 on September 5, 2002 and $62,500 on October 1, 2002. All payments will
be less requisite deductions for taxes as instructed by me.
2) As per Paragraph 9.A.(iii) of the Agreement, on September 1, 2002 the Company
will begin to make Supplemental Retirement Benefit payments in the amount of
$2,708.00 per month for 120 months (10 years). Such payments represent 100%
vesting in the SERP account.
3) The Company has no further obligations to pay premiums on the life insurance
policies referred to under Paragraph 4 of the Agreement; however, the Company
has given me the option to assume the contract and future premium payments in
connection with the $500,000 policy, provided I notify the Company on or before
September 15, 2002.
4) Employees medical benefits will continue for six months, through January 31,
2003.
5) Employee has declined and hereby waives the outplacement services referred to
in the Agreement. Employee agrees to sign any documents required to confirm his
resignation of any Officer, Director, Managing Director or Geschaftsfuher
positions he held with the Company.
6) Employee will continue to participate in the Company's Management Incentive
Compensation Plan for FY03 at a base salary equivalent to $110,000. Furthermore,
Employee may continue participation in the Company's Stock Option Plan
uninterrupted so long as Employee continues in a consultant capacity with the
Company.
7) The Company shall continue to pay the lease on the Company car the Employee
has been using and will allow Employee continued use of the vehicle until
January 1, 2003 at which time the Employee will be given first right of refusal
to purchase said vehicle. Similarly, Employee may use the cell phone, lap top
computer and Company issued credit card until a mutually agreed date, at which
time Employee shall return those and any other Company-owned items he may have.
Xxxxxxx Technology Co., Inc.
/s/Xxxxx X. Xxxxxxx
-------------------
Xxxxx X. Xxxxxxx By: /s/Xxxx X. Xxxxxx
-----------------
Xxxx X. Xxxxxx
Date: 9-11-02
-------
Date: 9-11-02
-------
