-12-
EMPLOYMENT AGREEMENT
--------------------
This agreement is made between The XxXxxxx Companies, Inc. ("XxXxxxx") and Xxxx
Xxxxx ("Employee"). XxXxxxx agrees to associate with Employee upon the terms
contained in this agreement, and Employee agrees to work in the best interests
of XxXxxxx at all times, upon the terms contained in this agreement.
TERM: The employment shall commence on September 2, 1997 and will continue until
canceled, amended, or terminated as described in this agreement.
TITLE: The Employee will be appointed as President of XxXxxxx Mortgage Services,
Inc. and Vice President of The XxXxxxx companies, Inc.
ASSIGNMENT: The Employee's assignment and responsibilities will be defined by
XxXxxxx, and may be changed at any time. In general, the Employee is responsible
for managing the operations and activities of XxXxxxx Mortgage Services,
including, but not limited to, (i) managing all other employees assigned, (ii)
planning, budgeting, and implementing XxXxxxx'x strategies toward achieving
mortgage production and profit goals, and (iii) in general, directing a
service-oriented Mortgage Company toward achieving the business goals
established by senior management of XxXxxxx. The Employee will keep informed
about the company's businesses in general, and shall participate in all
training, meetings and functions required by XxXxxxx.
COMPENSATION: Compensation will be established by XxXxxxx from time to time, and
initially will be paid in accordance with the Compensation Schedule attached as
Exhibit A. The Employee shall be entitled to all benefits generally provided by
XxXxxxx to its senior executives. The Employee shall be entitled to 4 weeks
vacation time, mutually agreed upon, submitted in writing to accrue at a rate of
five days after each three month period of employment. (Vacation time may not be
carried forward to next year).
TERMINATION: This Agreement and the employment created thereby may be terminated
at any time without cause by either party upon sixty (60) days written notice.
If employee is terminated by XxXxxxx without cause, base compensation will
continue for the period of one year. XxXxxxx may terminate this agreement and
the employment created herein without notice for cause, including fraud,
criminal activity, dereliction of duties, or failure to comply with the terms of
this agreement or XxXxxxx policies and procedures. After termination, the
Employee will not solicit any employee, sales associate, manager, or other
person associated with XxXxxxx or its affiliated Companies for the purpose of
inducing that person(s) to terminate employment or association with XxXxxxx.
CONFIDENTIALITY: It is understood that the Employee may from time to time have
knowledge of information which is confidential in nature, including, but not
limited to customer and client lists, agent and management information, training
and procedures, manuals, sales tactics, strategies, financial results and other
trade secrets. The Employee will not, at any time during employment or after
termination, disclose any confidential information, nor trade in the stock of
The XxXxxxx Companies, Inc. based upon confidential information.
NOTICES: Any notice required under this agreement will be deemed sufficient if
mailed or delivered to the parties at the following addresses:
- 13 -
Employee: Xxxx Xxxxx
0 Xxxxxxx Xxx
Xxxxxxxxxxxx, XX 00000
XxXxxxx: The XxXxxxx Companies, Inc.
00 Xxxxxx Xxxxxx, Xxxxxxxxx, XX 00000
GOVERNING LAW: This agreement shall be governed by the laws of the Commonwealth
of Massachusetts.
Signed this _____ day of ___________, 19___.
Employee The XxXxxxx Companies, Inc.
-------------------------- ------------------------------------------------
Xxxx Xxxxx By: Xxxx X. Xxxxxxxxxx, Executive Vice President
-14 -
COMPENSATION SCHEDULE - EXHIBIT A
---------------------------------
Date: September 1, 1997
This Compensation Schedule is incorporated by reference in the Employment
Agreement between The XxXxxxx Companies, Inc. and the Employee named below, and
supersedes any prior Compensation Schedule. The Employee shall receive base pay
of $6,153.85 every two weeks ($160,000/year), in accordance with XxXxxxx'x
current payment system.
In addition, Employee will be entitled to receive incentive compensation up to
$65,000, based on goals established for performance, and productivity an
profitability of the mortgage operation beginning in January, 1998. Incentive
compensation will be earned as follows:
1. For each completed fiscal quarter, beginning with the fourth quarter of
1997 (ending December 31, 1997), the following amounts will be payable
within 45 days of the end of the quarter:
o $5,000 if the dollar volume of closed mortgage loans exceeds the
prior year period by 10% or more.
o $5,000 if the net income of XxXxxxx Mortgage Services exceeds the prior
year period by 10% or more.
2. For fiscal 1998 (ending December 31, 1998), the following will be payable
within 45 days of the end of the year
o $25,000 if XxXxxxx Mortgage and The XxXxxxx Companies both exceed
budgeted net income for the year.
Health insurance coverage, within the Company's group plans, will be paid in
full. Other benefits that are available generally to XxXxxxx employees will be
available to Employee, including participation in the Company's 401(k) plan,
subject to the applicable waiting period.
Employee will receive an Incentive Stock Option, pursuant to the Company's stock
option plan, and subject to approval by the Board of Directors Stock Option
Committee, for 10,000 shares of XxXxxxx Common Stock, at fair market value on
the date of grant.
Employee will receive $500.00 per month for automobile expenses. Other ordinary
and necessary business expenses will be reimbursed upon approval of Expense
Reports.
Employee The XxXxxxx Companies, Inc.
--------------------------- ------------------------------------------------
Xxxx Xxxxx By: Xxxx X. Xxxxxxxxxx, Executive Vice President
