EXHIBIT 10.41
SECOND AMENDMENT TO EMPLOYMENT AGREEMENT
This Second Amendment to Employment Agreement is entered into as of this
31st day of December, 2001 by and between XxxxxxxXxxxxx.xxx, Inc., a Delaware
corporation (the "Company") and Xxxxxx X. Xxxxxxxx, an individual with an
address at 0000 Xxxxx Xxxxx Xxxxxx, Xxxxxxxxx, Xxx Xxxxxx 00000 ("Employee").
INTRODUCTION
The Company and Employee entered into that certain Employment Agreement
dated as of January 25, 1999 as amended by that certain First Amendment to
Employment Agreement dated as of February 1, 2000 (the "Employment Agreement"),
pursuant to which the Company employed Employee as its Vice President and Chief
Financial Officer.
The Employee possess skills and knowledge critical to the day-to-day and
continued operations of the Company and the Company desires to retain Employee's
services and considers such retention critical to the Company's continued
operations. In order to induce Employee to continue his Employment with the
Company during the next nine (9) months, the Company and Employee desire amend
the Employment Agreement as hereinafter set forth.
The Company's Board of Directors has determined it is in the best interests
of the Company's creditors and stockholders to enter into this Agreement. In
connection with the restructuring of certain debt owed to and equity owned by
MCG Capital Corp. and its affiliates (collectively, "MCG") occurring as of the
date hereof, MCG has been advised of this Agreement and acknowledged and
consented to the same.
AGREEMENT
In consideration of the premises and mutual promises hereinbelow set forth,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereby agree as follows:
I. SECTION 3.8.2(a)(ii) of the Agreement is hereby deleted and the following
substituted therefore:
(a) the stockholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by
the Company of all or substantially all of the Company's assets; (b) the
Company has commenced against it, any proceedings under any law related to
bankruptcy, insolvency, liquidation, dissolution or the reorganization,
readjustment or release of debtors; or (c) the Company commences or
institutes any proceedings under any law related to bankruptcy, insolvency,
liquidation, dissolution or the reorganization, readjustment or release of
debtors.
II. A new SECTION 3.8.2(c) is added to the Agreement as follows:
The Company hereby agrees that it shall from the date hereof until
September 30, 2002, pay Employee two times his Base Salary and deposit
one-half of such funds, net of standard payroll deductions (the "Escrow
Salary") in an interest bearing escrow account maintained by the Company's
attorneys in the name of and for the benefit of Employee. The Escrow funds
shall be the sole property of Employee and shall be earned upon payment,
provided that such funds shall not be released to Employee until the
earliest to occur of the following (i) the date of notice of any
termination of Employee's employment other than for "cause"; (ii) the
occurrence of a Change in Control or Approved Change of Control; or (iii)
September 30, 2002. In the event Employee voluntarily resigns or is
terminated for "cause" prior to the occurrence of any of the foregoing
events, then (a) Employee shall not be entitled to the Escrow Salary; (b)
the Escrow Salary shall be returned to the Company; and (c) the Company
shall take all necessary steps to reverse the Escrow Salary payment
transactions so that Employee will not be deemed to have received the
Escrow Salary and that such funds shall not appear on his Form W-2 for year
2002. In the event Employee receives the Escrow Salary, any amounts which
Employee is entitled to receive under Section 3.8.1 and Section 3.8.2 shall
be reduced by the pre-tax amount of the Escrow Salary.
III. Except as modified herein, the Employment Agreement is hereby
ratified, confirmed and approved in all respects.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first written above.
ATTEST: XXXXXXXXXXXXX.XXX, INC.
By: /s/ Xxxx X. Xxxxx
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Xxxx X. Xxxxx, President
WITNESS: EMPLOYEE:
/s/ Xxxxxx X. Xxxxxxxx
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Xxxxxx X. Xxxxxxxx
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