To: Terry Lyon who wrote (5535 ) 6/8/1998 12:15:00 PM From: DiViT Read Replies (1) | Respond to
How do you get severance pay for working a month and then resigning? "You write it into your contract..."Mr. Burke's obligations under the employment contract are contingent on the Company obtaining financing in an amount of not less than $5,000,000 on or before April 15, 1998. The failure of the Company to secure such financing or the occurrence of any material adverse changes in the business affairs and financial prospects of the Company, prior to May 1, 1998, could result in termination of the employment contract by Mr. Burke. Further, the Company must secure its performance under the employment contract for a period of two years by the issuance of a letter of credit in the aggregate amount of $1,000,000 for the benefit of Mr. Burke. Pursuant to his employment contract, Mr. Burke shall receive a salary of $250,000 per year, a signing bonus equal to $200,000 net of taxes, a car allowance equal to $1,000 per month net of taxes, a housing allowance equal to $7,500 per month net of taxes, a life insurance policy equal to $1,500,000, and other benefits granted to employees of the Company. Mr. Burke's employment is for a term of five years and, upon each anniversary date, shall be automatically extended by an additional one year term unless either party gives prior notice not to extend. Mr. Burke shall be eligible to receive an annual bonus of up to two times Mr. Burke's annual salary based on achieving certain targets as mutually agreed upon by Mr. Burke and the Board of Directors. Mr. Burke shall also receive options to acquire during a ten year term up to 1,000,000 shares of Common Stock of the Company at an exercise price equal to $1.75 per share. The options shall vest in one-third increments with one increment vesting immediately and the remaining two increments on each anniversary date thereafter. In the event of a change of control, all the options shall vest immediately. sec.gov .
