Document:

exv10w76

 

Exhibit
10.76

RETIREMENT AND SALARY CONTINUATION AGREEMENT

This Agreement affects an agreeable termination in connection with retirement of the employment
relationship between Mr. W. Gary Suttle (“MR. SUTTLE”) and ROCKFORD CORPORATION (“EMPLOYER”), as
well as resolution of any claims, known and unknown, now existing between the parties. The terms of
this agreement are as follows:

	1.	 	Release. MR. SUTTLE has retired and is released from full time employment effective February
28, 2007 (hereinafter referred to as “the release date”). However, he will remain on
EMPLOYER’s payroll as an employee for the remainder of February 2007 and for 24 months after
February 2007, ending February 28, 2009, subject to earlier termination under Section 2.g
below (the “Salary Continuation Period”),.

	2.	 	Payment. Upon execution of this Agreement, and in consideration for each of the terms of this
Agreement, EMPLOYER will provide MR. SUTTLE with the following:

	 	a.	 	MR. SUTTLE will be paid salary continuation during the Salary
Continuation Period. These payments will be made in equal installments on a
bi-weekly basis beginning March 9, 2007. MR. SUTTLE will continue to be paid
on EMPLOYER’s payroll until the end of the 24-month salary continuation
period.
	 
	 	b.	 	EMPLOYER will pay to MR. SUTTLE, by check on the next payroll
immediately following the release date, the cash value of any vacation time
MR. SUTTLE has accrued to the release date.
	 
	 	c.	 	MR. SUTTLE’s Short and Long Term Disability plan eligibility
will end on the release date as directed by plan guidelines.
	 
	 	d.	 	MR. SUTTLE will continue to be eligible to participate in
EMPLOYER’S health care benefits during the Salary Continuation Period, with
normal deductions from his salary continuation payments at the rate applicable
to all employees and subject to further continuation of those benefits as set
forth in COBRA for an additional 18 months if MR. SUTTLE elects to do so.
	 
	 	e.	 	MR. SUTTLE will agree to continue to submit to all employee
restrictions regarding transactions in EMPLOYER stock and/or stock options as
applicable under the stock option plans and grant agreements between EMPLOYER
and MR. SUTTLE. MR. SUTTLE’s stock options will expire either 30 days after
the end of the Salary Continuation Period or on the day of the end of the
Salary Continuation Period, depending on their respective grant dates, unless
MR. SUTTLE elects to exercise them. All unvested stock options will fully vest
effective February 28, 2007 subject to the execution of this Agreement.
	 
	 	f.	 	MR. SUTTLE may continue to make contributions to his 401(k)
plan until the end of the salary continuation period.

 

 

	 	g.	 	MR. SUTTLE is free to secure other employment elsewhere at
any time after the date or release. However, the Salary Continuation Period
will end and payments will stop effective on the hire date should he secure
employment with a company that as of the date of this Agreement was a direct
competitor or major supplier of EMPLOYER. MR. SUTTLE will advise EMPLOYER of
accepting employment within 5 days of such acceptance.
	 
	 	h.	 	MR. SUTTLE will retain the notebook computer and accessories
that were provided to him by EMPLOYER following the deletion of any
sensitive, confidential, or proprietary information by EMPLOYER’s IT
Department.
	 
	 	i.	 	MR. SUTTLE will remain as a member of the Board of Directors
until the end of his current term, but will not stand for re-election. He
will continue to be covered by the Company’s D&O Insurance and his existing
indemnification agreement will continue in effect throughout the term and
after the term of his service as a director

	3.	 	Confidentiality. MR. SUTTLE agrees to hold in confidence and not to disclose to others
without the prior written consent of EMPLOYER, any and all technical information, economic
information, sales and marketing information, data, specifications, know-how, process
information and methods of business relating to EMPLOYER or its future plans that was
disclosed to MR. SUTTLE either directly or indirectly, orally or in writing, or by inspection
of equipment, material and/or procedures used at any EMPLOYER facility, including but not
limited to blueprints, drawings and designs.

	4.	 	Releases and Covenant Not to Sue. Except as to any dispute arising out of the performance of
this Agreement, MR. SUTTLE agrees that he will not initiate or cause to be initiated against
EMPLOYER (or any of its agents, servants, elected officials or any person or entity acting by,
through, under or in concern with it) (collectively referred to as “Released Parties”) any
lawsuit, compliance review, action, grievance proceeding or appeal, investigation or
proceeding of any kind, or participate in same, individually or as a representative or a
member of a class, under any contract (express or implied) law or regulation (federal, state
or local), pertaining or in any way related to his employment with EMPLOYER. Except as to
any dispute arising out of the performance of this Agreement, EMPLOYER agrees that, pursuant
to this Agreement, it releases and forever discharges MR. SUTTLE from any and all claims,
demands, damages, causes of action, and any liability whatsoever on account of or in any
manner arising out of MR. SUTTLE’S employment by EMPLOYER or termination of such employment

	5.	 	Release of Damages. Except as to any dispute arising out of the performance of this
Agreement, MR. SUTTLE agrees that, pursuant to this Agreement, he releases and forever
discharges Released Parties from any and all claims, demands, damages, causes of action, and
any liability whatsoever on account of or in any manner arising out of MR. SUTTLE’S employment
by EMPLOYER or termination of such employment with Released Parties. By way of example only,
and without limiting this release, MR. SUTTLE releases the Releasees from any cause of action,
right, claim or liability under the Age Discrimination in Employment Act, Title VII of the
1964 Civil Rights Act, as amended, the Fair Labor Standards Act, the United States Constitution or Arizona

 

 

	 	 	Constitution, the Arizona Civil Rights Act, and any other equal employment opportunity law
or statute, any common law claim including wrongful discharge, imply or express contract,
the covenant of good faith and fair dealing, or any other claim in tort or contract arising
under the law.

	6.	 	Bar. MR. SUTTLE and EMPLOYER each agree that this Agreement may be pleaded as a complete bar
to any action or suit by the other before any court or administrative body, with respect to
any claim under federal, state or other law relating to MR. SUTTLE’S employment by EMPLOYER or
termination of such employment.

	7.	 	Indemnification. MR. SUTTLE and EMPLOYER each agree (as an “indemnitor”) to indemnify and
hold the other harmless from any and against all loss, costs, damages or expenses, including
without limitation, attorney’s fees, arising out of indemnitor’s breach of this Agreement or
the fact that any representation made by indemnitor herein was false when made.

	8.	 	References. MR. SUTTLE agrees to inform all prospective employers that requests for
references will be directed in writing to Rockford’s Chairman of the Board of Directors.

	9.	 	Confidentiality of Salary continuation Agreement. MR. SUTTLE and EMPLOYER each agree to keep
both the existence and terms of this Agreement completely confidential, and to not disclose
the contents of this Agreement to anyone except their respective attorneys, accountants and
spouses, unless required to do so by law. Because of Rockford’s public company status and Mr.
Suttle’s position as Principal Executive Officer, MR. SUTTLE acknowledges that disclosure may
be required under applicable securities laws and consents to such disclosure to the extent
EMPLOYER’S counsel advised EMPLOYER that it is necessary.

	10.	 	Non-Disparagement. MR. SUTTLE and EMPLOYER each agree to not engage in oral or written
comments of a disparaging nature regarding the other, to any third party, including, without
limitation, their own or the other’s employers, employees, officers, directors, contractors,
customers or any other person related to their respective employment or business.

	11.	 	Denial of Liability. No provision of this Agreement shall be construed as an admission by MR.
SUTTLE or EMPLOYER of improper conduct, omissions or liability.

	12.	 	Notice of Time for Reflection and Waiver. MR. SUTTLE acknowledges that he has fully discussed
all aspects of this Agreement with his advisor. MR. SUTTLE agrees that he has carefully read
and fully understands all of the provisions of this Agreement and that he is voluntarily
entering into this Agreement. MR. SUTTLE is advised that, prior to waiving claims he may have
under the Age Discrimination Act, he may take up to forty-five (45) days to consider this
Agreement before signing, and he may revoke this Agreement within seven (7) days after he
signs this Agreement. In the event this agreement is signed prior the expiration of 45 days,
MR. SUTTLE acknowledges that he voluntarily and knowingly agrees to waive his entitlement to
take 45 days to consider this agreement for the purpose of expediting the settlement. MR.
SUTTLE is encouraged to seek the advice of an advisor.

	13.	 	Complete Agreement. This Agreement sets forth the entire Agreement between the parties
hereto.

 

 

	14.	 	Choice of Law. This Agreement shall be construed, enforced, and governed by the laws of the
State of Arizona, without regard to its conflicts of law principles.

	15.	 	Severability. Should any provision of this Agreement be declared or determined by the Court
to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not
be affected thereby and said illegal part, term or provision shall be deemed not to be a part
of this Agreement.

	 	 	 
	DATE March 16, 2007

	 	/s/ W. Gary Suttle
	 

	 	 
	 

	 	W. GARY SUTTLE
	 
	 	 
	DATE: March 16, 2007

	 	ROCKFORD CORPORATION
	 

	 	 
	 
	 	 
	 

	 	By /s/ Jerry Goldress
	 

	 	 

	 

	 	     JERRY GOLDRESS, CHAIRMAN OF THE BOARD

Signed before me by W. GARY SUTTLE, known to me, on this 16th day of March, 2007.

Witness /s/
Sandra K. Weeks (Arizona Notary
Public)                    DATE:
3/16/2007<PAGE>

                                                                   Exhibit 10.77

                                FIFTH LEASE AMENDMENT

     THIS FIFTH LEASE AMENDMENT ("AMENDMENT") is dated as of _____________, 2006
by and between CENTERPOINT PROPERTIES TRUST, a Maryland real estate investment
trust ("LANDLORD") and ROCKFORD CORPORATION, an Arizona corporation ("TENANT").

                                    RECITALS

     A. Tenant and Robert Grooters Development Company, as Managing Agent for
3056 Walker Ridge Drive, L.C. ("ORIGINAL LANDLORD") entered into that certain
Lease and Addendum to Lease dated as of September 26, 2003 (the" ORIGINAL
LEASE") with respect to certain premises containing approximately 162,875 square
feet (the "PREMISES") constituting a portion of the building commonly know as
3056 Walker Ridge Drive, Walker, Michigan (the "BUILDING").

     B. The Original Lease was amended by: (i) that certain First Amendment to
Lease dated as of March 23, 2004 (the "FIRST AMENDMENT"), (ii) that certain
Second Amendment to Lease dated as of June 23, 2004 (the "SECOND AMENDMENT"),
(iii) that certain Third Amendment to Lease dated as of November 10, 2004 (the
"THIRD AMENDMENT"), (iv) that certain Letter dated August 19, 2005 (the "WAIVER
LETTER"), and (v) that certain Fourth Amendment to Lease dated as of December
14, 2005 (the "FOURTH AMENDMENT"). The Original Lease and the First Amendment,
Second Amendment, Third Amendment, Waiver Letter and Fourth Amendment are
hereinafter collectively referred to as the "LEASE".

     C. Landlord is the successor to Original Landlord's interest in the Lease.

     D. Landlord and Tenant have decided that it is in their mutual best
interest to cancel and terminate the Lease, as to that portion of the Premises
containing approximately 80,000 square feet of space and shown as crosshatched
on Exhibit A attached hereto and incorporated herein by this reference (the
"RELEASE PARCEL"), subject to the terms and conditions set form herein.

     E. Landlord and Tenant acknowledge that the Lease shall continue in full
force and effect as to the remaining approximately 82,875 square feet of space
in the Premises, also as shown on Exhibit A (the "REMAINDER PARCEL"), subject to
the terms and conditions set forth herein.

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

     1. Recitals. The Recitals are incorporated into this Amendment as if fully
set forth in this Section 1.

     2. Definitions. All terms used herein, unless otherwise specified, shall
have the meaning ascribed to them in the Lease.

     3. Effective Date. The effective date of this Fifth Lease Amendment (the
"EFFECTIVE DATE") shall be July 1, 2007.

                                        1

<PAGE>

     4. Partial Termination.

          A. Landlord and Tenant agree that the Lease, as to the Release Parcel
     only, shall be canceled and terminated effective as of the Effective Date
     as if said date were the expiration date (including any and all periods by
     which the term of the Lease could be extended at the option of either
     party) originally set forth therein, and on the Effective Date the Lease,
     as to the Release Parcel only, and each and all the covenants,
     undertakings, duties and obligations arising thereunder or otherwise as a
     consequence of the landlord-tenant relationship between the parties, as to
     the Release Parcel only, shall be deemed null and void and of no further
     force and effect, and neither of the parties shall have any rights or
     obligations as against the other with respect to the Release Parcel, except
     for the payment of Base Rent and Additional Rent accruing prior to the
     Effective Date.

          B. Tenant hereby surrenders, remises and quit claims to Landlord, its
     successors and assigns, forever, all of Tenant's right, title and interest
     as lessee under the Lease in and to the Release Parcel, TO HAVE AND TO HOLD
     THE SAME UNTO LANDLORD, its successors and assigns, forever, from and after
     the Effective Date.

          C. Landlord and Tenant each shall remain primarily and fully liable
     for the fulfillment of all of their respective obligations and duties under
     the Lease with respect to the Release Parcel from the date hereof through
     the Effective Date.

          D. Tenant agrees that it will surrender the Release Parcel to Landlord
     in good order and condition, subject to normal wear and tear, and in "broom
     clean" condition, on the Effective Date.

     5. Amendment. As of the Effective Date, the Lease shall be and hereby is
amended as follows:

          A. Premises. Landlord and Tenant hereby acknowledge that, for all
     purposes relating to the Lease, after the deletion of the Release Parcel,
     the entire Premises leased by Tenant shall include only the Remainder
     Parcel, consisting of approximately 82,875 rentable square feet. Landlord
     and Tenant agree that the Lease shall continue in full force and effect as
     to the Remainder Parcel, subject to the amendments set forth herein, and
     Landlord and Tenant each shall remain primarily and fully liable for the
     fulfillment of all of their respective obligations and duties under the
     Lease with respect to the Remainder Parcel. From and after the Effective
     Date, all references in the Lease to the "Premises" or "Leased Premises"
     shall be deemed to refer to the Remainder Parcel only.

          B. Base Rent. Commencing with the Effective Date and continuing
     throughout the remainder of the Lease Term, the Base Rent payable pursuant
     to Section 3 of the Lease shall be the following:

                                        2

<PAGE>

<TABLE>
<CAPTION>
         PERIOD                ANNUAL BASE RENT   MONTHLY BASE RENT
         ------                ----------------   -----------------
<S>                            <C>                <C>
July 1, 2007 - June 30, 2008      $359,691.25         $29,974.27

July 1, 2008 - June 30, 2009      $339,691.25         $28,307.60
</TABLE>

          C. Additional Rent. Commencing with the Effective Date and continuing
     throughout the remainder of the Lease Term, "Leesee's Proportionate Share"
     as defined in Section 3 of the Lease, shall be 24.73%.

          D. Parking. Section 6 of the Lease shall be deleted and replaced with
     the following:

          "Lessee, its employees, agents and invitees, shall have the
          non-exclusive right to use twenty (20) automobile parking spaces at
          the Building, in the location shown on Exhibit B attached hereto."

          E. Utilities. Section 16 of the Lease shall be amended to provide
     that, commencing on the Effective Date and continuing throughout the
     remainder of the Lease Term, Tenant shall only be responsible for payment
     of utilities for the Remainder Parcel.

     6. Condition of Premises. Tenant acknowledges that it is familiar with the
Premises and that, except as set forth below, Tenant shall accept the Remainder
Parcel in "as is" condition and that, except as set forth below, no promises of
Landlord to alter, remodel, decorate, clean or improve the Remainder Parcel and
no representation respecting the condition of the Remainder Parcel has been made
by Landlord to Tenant. Notwithstanding the foregoing, Landlord shall, subject to
Landlord's receipt of Tenant's Contribution (as hereinafter defined), on or
prior to the Effective Date, demise the Remainder Parcel from the Release Parcel
in a manner reasonably acceptable to Tenant

     7. Security Deposit. Commencing on ____________________, 2006 [Note - this
will be the same date that the Tenant's Contribution is due pursuant to Section
8 below], Section 4 of the Lease shall be amended to provide that the Security
Deposit shall be reduced from $44,000.00 to $22,392.00. Landlord shall refund
the excess Security Deposit, in the amount of $21,608.00, to Tenant.

     8. Tenant's Contribution. As a condition precedent to the effectiveness of
this Amendment, Tenant shall, no later than _________________, 2006 [Note - this
will be the same date that the Landlord refunds the excess Security Deposit to
Tenant pursuant to Section 7 above], deposit the amount of $30,000.00 (the
"TENANT'S CONTRIBUTION") with Landlord, representing the Tenant's contribution
toward the Landlord's costs and expenses related to leasing the Release Parcel
to a third party tenant and demising the Remainder Parcel from the Release
Parcel.

     9. [Intentionally Deleted.]

                                        3

<PAGE>

     10. Use/Compliance. During the term of the Lease, if Tenant's processes or
the type of product being manufactured or stored by Tenant in the Premises does
not meet applicable municipal codes and requirements, the cost of any
improvements or modifications required to the Premises in order to bring the
Premises into compliance with all applicable municipal codes and requirements
shall be performed in a timely manner at Tenant's sole cost and expense and
otherwise in accordance with the terms and provisions of the Lease.

     11. No Other Modification. The Lease is only modified as set forth herein
and in all other respects remains in full force and effect.

     12. No Default. Tenant acknowledges that the Lease is in full force and
effect and that there are no defaults thereunder or any conditions which with
only the passage of time or giving of notice or both would become a default
thereunder. Landlord acknowledges that, to its actual knowledge, Tenant is not
in default under any of the terms of the Lease.

     13. Successors and Assigns. This Amendment shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors and
assigns.

     14. Modification. This Amendment may not be modified or amended except by
written agreement executed by the parties hereto.

     15. Governing Law. The validity, meaning and effect of this Amendment shall
be determined in accordance with the laws of the State of Michigan.

     16. Counterparts. This Amendment may be executed in two counterparts, each
of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

     17. Severability. The parties hereto intend and believe that each provision
in this Amendment comports with all applicable local, state and federal laws and
judicial decisions. However, if any provision in this Amendment is found by a
court of law to be in violation of any applicable ordinance, statute, law,
administrative or judicial decision, or public policy, and if such court should
declare such provision to be illegal, void or unenforceable as written, then
such provision shall be given force to the fullest possible extent that the same
is legal, valid and enforceable and the remainder of this Amendment shall be
construed as if such provision was not contained therein.

     18. Construction. The headings of this Amendment are for convenience only
and shall not define or limit the provisions hereof. Where the context so
requires, words used in singular shall include the plural and vice versa, and
words of one gender shall include all other genders. In the event of a conflict
between the terms and conditions of the Lease and the terms and conditions of
this Amendment, the terms and conditions of this Amendment shall prevail.

     19. No Third Party Beneficiaries. This Amendment shall inure to the sole
benefit of the parties hereto. Nothing contained herein shall create, or be
construed to create, any right in any person not a party to this Amendment.

                                        4

<PAGE>

     20. Legal Review. The parties hereto acknowledge that they have been
advised by legal counsel of their choice in connection with the interpretation,
negotiation, drafting and effect of this Amendment and they are satisfied with
such legal counsel and the advice which they have received.

     21. Facsimile Signatures. The parties hereto agree that the use of
facsimile signatures for the negotiation and execution of this Amendment shall
be legal and binding and shall have the same full force and effect as if
originally signed.

     22. No Commissions. The parties hereto acknowledge and agree that no real
estate brokerage commission or finder's fee shall be payable by Landlord in
connection with this Amendment. In the event that Tenant has contracted with a
real estate broker, Tenant shall be solely responsible for the payment of such
broker's commissions and Tenant shall protect, defend, indemnify and hold
Landlord harmless from and against any and all claims of said broker.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

                                        5

<PAGE>

                   [SIGNATURE PAGE TO FIFTH LEASE AMENDMENT.]

     WITNESS WHEREOF, the parties hereto have executed this Amendment as of the
date set forth above.

LANDLORD:                               TENANT:

CENTERPOINT PROPERTIES TRUST, a         ROCKFORD CORPORATION, an Arizona
Maryland real estate investment trust   corporation

By: /s/ Illegible                       By: /s/ Illegible
    ---------------------------------       ------------------------------------
Its:                                    Its: CFO
     --------------------------------   Name: Illegible
Name:
      -------------------------------

By: /s/ Michael Tortorici
    ---------------------------------
Its: Michael Tortorici
Name: Vice President, Treasurer

                                        6

<PAGE>

                                    EXHIBIT A
                                 ROCKFORD CORP.
                                 FIFTH AMENDMENT

                                     (LOGO)

                                  (FLOOR PLAN)

                             3056 WALKER RIDGE DRIVE
                               335,125 SQUARE FEET

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