EXHIBIT (10)(k)
Employment-Severance Arrangement with Xxxxxx X. Xxxxxxx
In January 1996, the Company and Xxxxxx X. Xxxxxxx agreed that Xx.
Xxxxxxx would continue to serve as President and Chief Executive Officer of the
Company until September 30, 1996 or until a new Chief Executive Officer was
employed, whichever came first. Under the terms of this arrangement, Xx.
Xxxxxxx'x salary was increased to $450,000 annually effective December 1, 1995;
a special bonus award of $112,000 was paid to Xx. Xxxxxxx in January 1996; and
Xx. Xxxxxxx received a payment of $240,000 the day the new Chief Executive
Officer began employment with the Company (June 1, 1996). This latter payment
was in lieu of any 1996 pro-rated bonus based on the annual incentive plan.
Between June 1, 1996 and December 31, 1996, Xx. Xxxxxxx served in a transitional
role during which he continued to receive his salary and certain benefits. Upon
retirement, Xx. Xxxxxxx also received title to his company automobile. Upon his
retirement, Xx. Xxxxxxx agreed to provide consulting services to the Company
from January 1, 1997 through December 31, 1997 for a monthly fee of $3,333.
