EXHIBIT 10.4
December 4, 1996
Xx. X.X. Xxxxxxx
c/o Cyber Digital, Inc.
000 Xxxx Xxxxxx, Xxxxx 0000
Xxxxxxxxx, XX 00000
Re: First Amendment to Employment Agreement of X.X. Xxxxxxx
-------------------------------------------------------
Dear Xx. Xxxxxxx:
Reference is made herein to the Employment Agreement (the "Employment
Agreement"), dated March 1, 1992, by and between Cyber Digital, Inc., a New York
corporation (the "Company") and you.
This letter (the "Amendment") is intended to confirm our understanding
as to the terms of the Employment Agreement, and expresses the agreement of the
Board of Directors of the Company that the Employment Agreement shall be amended
as set forth below.
A. In the first sentence in paragraph 2 the amount "$80,000" shall be
deleted and the amount "$150,000" shall be inserted in its place.
B. Paragraph 3 of Employment Agreement shall be amended to read in its
entirety as follows:
3. Irrespective of the base salary level as set out above and by
way of a bonus in addition to salary, the Company shall pay you a cash
bonus based upon the following formula: (a) 1% of gross revenues for
each fiscal year in excess of $3 million, provided, however, that the
Company shall be profitable, (b) plus 5% of net income after deduction
of the bonus provided for in (a) above, and (c) plus 10% of the
increase in net income over that of the prior fiscal year after
deduction of the bonus provided for in (a) above.
C. Paragraph 4 of the Employment Agreement shall be amended to read in
its entirety as follows:
4. In the event of a termination of your contract without Cause
prior to the expiry of its term, you shall receive as termination
compensation an amount equal to 5% of gross revenues earned by the
Company each month beginning on the date of your termination and
continuing for a period of 5 years thereafter. As used herein, "Cause"
shall mean proven, material dishonesty or fraud.
1
D. The amendments set forth in this Amendment shall be effective as of
August 12, 1996.
If you agree with the terms set forth in this Amendment please so
confirm by signing a copy of this letter in the space indicated and delivering
such copy to the Secretary of the Company.
Very truly yours,
Cyber Digital, Inc.
By:/s/ Xxxx X. Xxxxxxx
--------------------
Xxxx X. Xxxxxxx
Secretary
Agreed and Accepted:
/s/ X.X. Xxxxxxx
----------------
X.X. Xxxxxxx
2
