Document:

voxx-ex104_165.htm

 

Exhibit 10.4

 

AMENDMENT TO AGREEMENT 

THIS AMENDMENT, made effective July 1, 2009 by and between Audio Products International Corp., a company incorporated pursuant to the laws of Ontario ("API") and Oscar Bernardo ("Employee").

WITNESSETH THAT:

WHEREAS, API is a wholly owned subsidiary of Klipsch Group, Inc. ("KGI"); WHEREAS, API and Employee have executed an Agreement effective August 8, 2006 ("Agreement"), whereby Employee is employed by API;

WHEREAS, API and Employee have agreed to amend certain provisions of the Agreement.

NOW, THEREFORE, in consideration of continued employment and the mutual covenants and agreements contained herein and other good and adequate consideration, the sufficiency and receipt of which is hereby acknowledged, the parties agree to amend the Agreement as follows:

1.Section 1.2 of he Agreement is amended and restated as follows:

 

API shall employ the Employee and the Employee shall serve as Senior Vice President, Global Inventory Operations. The Employee shall be responsible for the planning and management of all inventory owned by KGI and all of its affiliates on a global basis. The Employee shall report to KGI's President of Global Operations or such other person as KGI may designate from time to time.

 

 

 

2.Section 2.1 of the Agreement is amended and restated as follows:

 

	

	
API shall pay the Employee an annual base salary of CAN213,570.  The base salary shall be paid biweekly.  The Chairman of KGI shall review the annual base  salary for the purposes of determining whether an increase is merited commencing with a next review in September 2010.  Such review will be consistent with other senior executives of KGI
	
 

 

	
 
	
3.
	
The terms of Sections 2.2 and 2.4 have been satisfied by both parties and therefore are no longer a part of the Agreement.
	
 

 

	
 
	
4.
	
KGI suspended bonuses for all employees of KGI and all affiliates of KGI for FY09 and FY10 (years ending June 30, 2009 and June 30, 2010, respectively). Notwithstanding Section 2.3 of the Agreement, Employee shall not be entitled to a bonus opportunity in FY09 or FY10. In the event KGI reinstates bonus opportunities for senior executives of KGI, it shall also reinstate the bonus opportunity for 
	
 

2

 
 

	
 
		
Employee. Criteria for any future bonus opportunities shall be based upon the profitability of KGI, written objectives and a subjective component determined in the discretion of the Chairman of KGI.
	
 

 

	
 
	
5.
	
Section 3.5 is amended such that the reference to "API" in the 4th and 6'1' line is replaced with "API or KGI".
	
 

 

	
 
	
6.
	
Section 3.6 is amended such that the reference to "API" in the 3rd and 4'h line is replaced with "API or KGI".
	
 

 

	
 
	
7.
	
All the protections described in Article 4 for the benefit of API shall extend to the benefit of API and KGI.
	
 

 

	
 
	
8.
	
The first sentence of Section 5.3 is amended and restated as follows:
	
 

API shall be entitled to terminate this Agreement at any other time without just cause upon providing fifteen (15) months' notice of termination or, at the sole discretion of API, payment in lieu of notice (or a combination of both).

 

	
 
	
9.
	
 All other terms, conditions and provisions of the Agreement not specifically amended by this Agreement shall remain in full force and effect, and shall be incorporated by reference.
	
 

 

	
 
	
10.
	
The provisions of this Amendment shall be effective July 1, 2009
	
 

 

IN WITNESS WHEREOF, the parties have duly executed this Amendment. 

 

 

/s/ Oscar Bernardo____________

OSCAR BERNARDO

AUDIO PRODUCTS INTERNATIONAL

By: /s/ Fred Klipsch___________  

Title: CEO__________________voxx-ex105_162.htm

 

 
 
Exhibit 10.5

 

SECOND AMENDMENT TO AGREEMENT 

 

THIS AMENDMENT, made effective March 1, 2011, by and between Audio Products International Corp., a company incorporated pursuant to the laws of Ontario (“API”), a wholly owned subsidiary of Klipsch Group, Inc. (“KGI”) and Oscar Bernardo (“Employee”).

 

WITNESSETH THAT:

 

WHEREAS, Audiovox Corporation (“Audiovox”), through its wholly owned subsidiary, Soundtech LLC, has purchased or will purchase all of the issued and outstanding stock of KGI; and 

 

WHEREAS, API and Employee have executed an Agreement effective August 8, 2006 and Amendment effective July 1, 2009 (the “Agreement”), whereby Employee is employed by API; and 

 

WHEREAS, Employee desires to continue in the employ of API and has agreed to amend and add a certain provision to the Agreement;

 

NOW, THEREFORE, in consideration of continued employment and the mutual covenants and agreements contained herein and other good and adequate consideration, the sufficiency and receipt of which is hereby acknowledged, the parties agree to amend the Agreement as follows:

 

1.Section 2.7 as follows is added to the Agreement:

 

	
 
	
2.7
	
Employee shall have the following described Put Option:

 

Commencing on March 1, 2011, the cumulative after tax net profit or loss of the KGI will be calculated on a monthly basis according to GAAP and will bear interest at the same per annum rate that Audiovox is receiving from its lead bank.

 

Employee may at the end of any month following the 30th month anniversary of the definitive agreement between Soundtech LLC and KGI, request KGI to pay him in one lump sum up to 80% of .25% of the aggregate cumulative after tax net profit or loss of KGI (the “Put Price”), and KGI will pay such amount to Employee.  Such a request may not be made within 60 months of Employee’s previous request.

 

Any unpaid Put Price will be paid promptly to Employee or his heirs as the case may be if Employee’s employment is terminated for any reason.

 

 

 
 
Illustration (not accounting for interest):

 

	
 
	

	
Commencement value-0-

	
 
	

	
Net profits after 12 months$10,000,000

	
 
	

	
Put Price (.25%)$25,000

	
 
	

	
Net loss in 13th month$1,000,000

	
 
	

	
Put Price (.25%)$22,500

 

 

	
 
	
2.
	
All other terms, conditions and provisions of the Agreement not specifically amended by this Second Amendment shall remain in full force and effect, and shall be incorporated by reference.

 

	
 
	
3.
	
The provisions of this Amendment shall be effective March 1, 2011. 

 

IN WITNESS WHEREOF, the parties have duly executed this Second Amendment. 

 

 

AUDIO PRODUCTS INTERNATIONAL

 

By: /s/ Fred Klipsch

Fred Klipsch, CEO

 

 

/s/ Oscar Bernardo

Oscar Bernardo, Employeevoxx-ex106_163.htm

Exhibit 10.6

 

AMENDMENT NO. 3 TO EMPLOYMENT AGREEMENT

This Amendment No. 3 to Employment Agreement, (the "Amendment"), is entered between Audio Products International Corp., an Ontario Corporation, (the "Employer"), and Oscar Bernardo, (the "Employee"), and together with Employer, the "Parties", and each, a "Party".  WHEREAS, the Parties have entered into an Employment Agreement, dated August 8, 2006, as amended first on July 1, 2009 and amended for a second time on March 1, 2011, and as otherwise modified from time to time by mutually agreed Employee Change Authorization (ECA) documents, or other documents, including for purposes such as changing employee’s rate of pay, job title and duties (the "Existing Agreement"); and WHEREAS, due to the suddenly and dramatically changed economic conditions caused by the Covid-19 pandemic and the Parties’ mutual desire for the Employer to continue to exist as a viable entity capable of continuing to employ Employee and others, the Parties hereto desire to amend the Existing Agreement to decrease Employee’s salary beginning upon the Effective Date, on the terms and subject to the conditions set forth herein; NOW, THEREFORE, in consideration of the foregoing and the Employee’s continued employment with the Employer subject to the remaining terms of the Existing Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1.Definitions. Capitalized terms used and not defined in this Amendment have the respective meanings assigned to them in the Existing Agreement.

2.Amendments to the Existing Agreement. As of the Effective Date of Monday, April 6, 2020, the Existing Agreement is hereby amended or modified as follows:

(a) Section 2.1 of the Existing Agreement is hereby deleted and replaced with the following language:

Commencing with Employee’s labor performed beginning on Monday, April 6, 2020, the Employee shall, during the Employment Period, be paid by the Employer and/or its Affiliates a base salary at an annual rate of CAD$340,000, subject to review and potential upward adjustment annually thereafter, which will be payable according to the Employer’s customary payroll practices.  The Chairman of KGI shall review the annual base salary for the purposes of determining whether an increase is merited.  Such review will be consistent with senior executives of Klipsch Group, Inc.

Any future restoration of the reduced base salary shall be in the sole discretion of the CEO of Voxx International Corp., following such CEO’s consideration of the performance of the financial health of Voxx International Corp. and its subsidiaries, as a whole.    

Notwithstanding same, the “Base Compensation” annual base salary rate to be utilized as part of the calculation of any Termination Pay due to the Employee shall be the annual base salary rate in effect immediately preceding this annual base salary rate change, CAD $425,000.00, until or unless any higher annual base salary rate is awarded the Employee.

3.Limited Effect. Except as expressly provided in this Amendment, all of the terms and provisions of the Existing Agreement are and will remain in full force and effect and are hereby ratified and confirmed by the Parties.

IN WITNESS WHEREOF, the Parties have executed this Amendment on the date that it becomes signed by each Party below.

 

			
	
 
	
Employer
	
Employee

	
Printed Name:
	
Paul Jacobs
	
Oscar Bernardo

	
Signature:
	
/s/ Paul Jacobs
	
/s/ Oscar Bernardo

	
Date:
	
April 6, 2020
	
April 6, 2020

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