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EXHIBIT 10.19
AGREEMENT
between
MTI TECHNOLOGY GmbH, represented by its shareholders MTI Technology
Corporation, USA, represented by its President & CEO Xxx Xxxxxxxx
- hereinafter the "Company" -
and
XX. XXXX XXXXX, Xxxxxxxxxx Xxxxx 0, 00000, Xxxxxxx
- hereinafter also "GS" -
PREAMBLE
WHEREAS Xx. Xxxxx was employed as Managing Director of MTI Technology GmbH,
Wiesbaden effective as of August 1988 pursuant to the terms and conditions as
stipulated in his Employment Agreement dated April 1st, 1989;
WHEREAS immediately thereafter GS was registered with the Registry Court in
Wiesbaden under HRB 7656 as Managing Director of the Company with sole power to
represent the Company;
WHEREAS the parties did not succeed in achieving a basis for a continued term
of GS as Managing Director of the Company and therefore decided to end GS's
employment as Managing Director of MTI Technology GmbH.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
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1.
Both parties agree that the Dienstvertrag in its current form and all rights
and obligations thereunder shall end duly and properly, effective January 31st,
2001, upon the Company's instigation because of operational reasons. GS will
resign from his office as Geschaftsfuhrer of the Company as well as from
all his other offices and positions within the MTI Group effective May 1st,
2000.
GS shall be completely and irrevocably released from his duties with effect as
of May 1st, 2000 and in consideration of any remaining vacation. Any existing
or future entitlement to vacation is compensated for with the release from his
duties.
GS is required to observe all contractual obligations of confidentiality and
secrecy during his remaining term of employment as well as after the end of his
employment; this applies, in particular, to the contents of this Agreement, as
stipulated in more detail in No. 5. and 6. below.
2.
Up to the end of the Employment pursuant to above mentioned No. 1., GS will
continue to receive his current gross salary, to be paid on a monthly basis.
All extra benefits - including, but not limited hereto, the use of his company
car, the contribution to the Company accident insurance, the payment of GS' tax
advisors for the preparation of his tax declarations for the fiscal years 1999
and 2000, the provision of medical insurance cover both in Europe and the USA
and Life Assurance cover in the USA, monthly expenses up to a maximum of DM 465
per month for his home telephone and for his mobile telephone - which were
granted to GS in accordance with his contract will cease effective January
31st, 2001.
Effective May 1, 2000 GS will no longer be covered by the Executive Severance
Agreement that previously applied to his position.
GS shall be entitled to keep his company car, type Mercedes SL 280 Roadster,
registration number WI-MT 410, until January 31st, 2001. The Company car
including all car papers and keys must be returned in proper condition to the
Company, respectively an officer of the Company by no later than January 31st,
2001. Alternatively GS shall have the right to purchase the company car at
market value ("Ablosevert einschlieblich Restraten unter dem Leasingvertrag")
from the Leasing company by no later than January 31st, 2001. Should the car
not be available for purchase by GS (for a reason outside
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the control of the Company), the Company shall have no liability or be required
to compensate GS for this.
In addition, GS shall be entitled to purchase from the Company the Toshiba
laptop at book value and shall be reimbursed for relocation expenses up to a
maximum amount of US$60,000, against the provision of original invoices in case
GS will relocate from Germany prior to the end of the "Diensteertrag" in
accordance with Sec. 1 above.
Against the provision of original invoices GS will also be entitled to be
reimbursed for expenses incurred in respect of the following flights:
Three return business class flights to the US for both himself and his wife.
Two return business class flights to the following locations: Frankfurt, Paris,
London and Dublin together with two nights accommodation and related expense in
a standard business class hotel for both himself and his wife.
The Company will pay 50% of the taxes applicable to the expense related to the
above travel costs, i.e., three return business class flights to the US for
both himself and his wife.
Two return business class flights to the following locations: Frankfurt, Paris,
London and Dublin together with two nights accommodation and related expense in
a standard business class hotel for both himself and his wife.
GS will be responsible for all additional taxes payable on the provision of the
above benefits.
3.
The Company shall pay GS an amount of DM65,000 in respect of vacation pay.
Taxes will be borne by GS and directly paid by the Company to the fiscal
authorities.
4.
GS shall receive a favorable and qualified intermediary as well as an identical
final reference from the Company, signed by Xxx Xxxxxxxx as well as an
additional favorable reference signed by Xxx Xxxxxx, Chairman of MTI Technology
Corporation.
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5.
GS is required to surrender all company items, documents, plans, drawings and
other records (as well as copies or information on data carriers of any kind
hereinafter collectively "Documentation"), regardless of whether this
Documentation reflects Confidential Information to the Company no later than by
April 30th, 2000.
GS is further obligated to keep the contents of this Agreement absolutely
confidential and will not discuss any details thereof with anyone, whether
within or outside the Company.
6.
Beyond the term of his employment, also in the future GS must refrain from any
comments and/or remarks to any employees and/or customers of the Company and/or
any of its affiliates and/or any third party, which could be considered damaging
and/or harmful to the Company's reputation.
In addition during the term of this agreement (until January 31st 2001), GS
shall not solicit, interfere with or endeavor to entice away from the Company or
any relevant associated company within the MTI group, any employee or key
employee of the Company, he will not, either directly or indirectly engage in a
business competitive with that of the Company or seek employment or render
services to a competitor and will not seek to persuade or attempt to persuade
any Client of the Company to cease to do business or to reduce the amount of
business that the Client would customarily do with the Company.
7.
Both parties agree that, upon fulfillment of this Agreement any and all
reciprocal claims between GS and the Company regardless of the grounds --
deriving from or in connection with the Dienstvertrag in its current form and
its termination as well as in connection with GS's office as Geschaftsfuhrer of
the Company and in connection with all his other offices and positions within
the MTI group are hereby settled. Both parties waive all further claims which
might nevertheless exist and accept the other party's waiver.
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8.
This Agreement shall be governed by the laws of the Federal Republic of Germany.
The courts in Frankfurt/Main shall have jurisdiction in case of any dispute
hereunder.
Amendments to and changes of this Agreement require written form, this also
applies to this clause.
Should individual provisions of this Agreement be or become invalid or
unenforceable, or in the event that gaps occur within this Agreement, this shall
not affect the validity of the remaining provisions of this Agreement. To the
contrary, instead of the invalid or unenforceable provision such valid and
enforceable provision shall be deemed to be agreed upon by the parties which
corresponds to the purpose of the invalid or unenforceable provision to the
greatest extent legally possible. In case of gaps, these gaps are deemed to be
filled by valid provisions which would have been agreed between the parties
would they have been aware of the gap.
The parties agree that each party shall bear its own costs and the costs of its
own advisers in connection with the conclusion and execution of this Agreement.
Frankfurt, th, 2000 Xxxxxx, xx, 0000
/s/ XXXXXX X. XXXXXXXX, XX. /s/ XXXX XXXXX
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Xxxxxx X. Xxxxxxxx, Xx. Xxxx Xxxxx
For MTI Technology Corporation USA