Amendment to Employment Agreement between Klipsch Group, Inc. and T. Paul Jacobs (September 2022)

Contract Categories: Human Resources › Employment Agreements
Summary

This amendment, effective September 1, 2022, modifies the employment agreement between Klipsch Group, Inc. and T. Paul Jacobs. Due to economic conditions, the executive's base salary is reduced from $500,000 to $400,000 until the CEO decides to restore it. If the executive is terminated without cause or resigns for good reason, severance and benefits will be calculated based on the original salary. All other terms of the original agreement remain unchanged.

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EX-10.4 5 voxx-ex10_4.htm EX-10.4 EX-10.4

 

 

 

 

EXHIBIT 10.4

 

AMENDMENT TO EMPLOYMENT AGREEMENT

 

AMENDMENT made effective as of September 1, 2022 to Employment Agreement (the “Employment Agreement”) dated February 3, 2011 between Klipsch Group, Inc., 3502 Woodview Trace, Indianapolis, Indiana 46268 (the “Company”) and T. Paul Jacobs, an individual residing at 7862 Irlo Bronson Memorial HWY #469, Kissimmee, Florida 34747 (the “Executive”)

 

WHEREAS, due the present global economic conditions (the “Recession”), VOXX International Corporation has instituted a multitude of cost savings actions, including, without limitation, employee furloughs and salary reductions; and

 

WHEREAS, the Executive fully understands and appreciates the magnitude of the Crisis and its detrimental effect on the Company’s business; and

 

WHEREAS, notwithstanding the existence of the Employment Agreement, the Executive is willing to voluntarily participate in the salary reduction program.

 

NOW, THEREFORE, IT IS AGREED BY THE PARTIES AS FOLLOWS:

 

1.
Effective as of September 1, 2022, Section 3(a) of the Employment Agreement is hereby amended to reduce the Executive’s Base Salary from $500,000 (hereinafter, the “Original Base Salary”) to $400,000 (hereinafter, the “Reduced Base Salary”). All capitalized terms contained herein are defined in the Employment Agreement.

 

2.
The Reduced Base Salary shall remain in place until such time as the Chief Executive Officer of VOXX International Corporation determines that it is financially prudent and in the best interest of the Company to restore the Reduced Base Salary to the Original Base Salary.

 

3.
In the event that Accrued Obligations or Post-Employment Benefits are due and owing to the Executive by the Company for Termination Without Cause or Executive’s Resignation for Good Reason, such Accrued Obligations or Post-Employment Benefits shall be calculated as if the Original Base Salary was in effect at the time of such Termination or Resignation, as the case may be.

 

4.
Except as modified herein, the Parties ratify and confirm the Employment Agreement as written.

 

 

 

 

 

IN WITNESS WHEREOF, the Parties have executed and delivered this Amendment as of the date first written above.

 

 

EMPLOYER:

KLIPSCH GROUP INC.

 

By: /s/ Loriann Shelton

Printed: Loriann Shelton

Title: Vice President

 

EXECUTIVE:

 

/s/ T. Paul Jacobs

T. Paul Jacobs