RELOCATION PACKAGE AGREEMENT
The Board of Directors of Hauppauge Digital, Inc. ("Company") agrees to Xxxx
Xxxxxxxx'x Relocation Package and to reimburse him for relocating to the Long
Island area, NY, the terms of which are set forth as follows:
1. The actual cost of moving Xx Xxxxxxxx'x and his family's personal effects
to the Long Island area, NY ("Moving Costs");
2. No more than $4000 to cover Xx. Xxxxxxxx'x mortgage points for buying the
purchase of his new home in the Long Island area, NY ("Mortgage
Commission");
3. Xx. Xxxxxxxx'x selling agent's actual commission for selling his present
home ("Selling Agent's Commission), such sum constituting no more than 5%
of the sale price of his present home;
(the aggregate of the Moving Costs, the Mortgage Commission and the Selling
Agent's Commission collectively referred to as the "Relocation Costs");
4. The Relocation Costs shall not exceed the sum of $100,000;
5. Payment of the Relocation Costs to Xx. Xxxxxxxx shall be in accordance with
the following schedule:
(a) 50% of the Relocation Costs or $50,000 (whichever is the lower) on or
before he physically and permanently relocates to Long Island, NY,
such date to be the date of signing a definitive sale and purchase
agreement to either sell his existing residence or buy a house in the
Long Island area, NY, whichever is the earlier (the "Relocation
Date");
(b) 25% of the Relocation Costs or $25,000 (whichever is the lower) on the
first anniversary of the Relocation Date; and
(c) 25% of the Relocation Costs or $25,000 (whichever is the lower) on the
second anniversary of the Relocation Date
6. If the Company terminates Employee's employment prior to the end of the
Term (as defined in the Employee's Employment Agreement dated 1 May 2002,
hereinafter referred to as the Employment Agreement) without cause pursuant
to Par. 2(e)(2) of the Employment Agreement or Employee tenders his
resignation pursuant to Par. 2(f) of the Employment Agreement because of 1)
a material downgrading in Employee's duties or responsibilities, 2) a
permanent change in
Hauppauge's principal office to a location not within 20 miles of its
present location or 3) any permanent relocation of Employee to a place of
business more than 20 miles of its present location, Employee shall be
entitled to any unpaid Relocation Costs, with such payment to be made in a
lump sum within sixty (60) days of termination. For the avoidance of any
doubt, the Relocation Costs payment schedule as spelt out in Clause 5 above
shall remain unaltered and binding on parties in the event that the
Employment Agreement expires and Employee continues to be in the employment
of Company. This clause shall survive any termination of this Agreement and
the Employment Agreement and shall expire upon the said payment being made
to the Employee in full and final satisfaction of the Company's relocation
obligation to Employee.
7. This Agreement shall be read in conjunction with the Employment Agreement.
/s/ Xxx Xxxxxxx
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Xxx Xxxxxxx
For and on behalf of the Board of Directors
Hauppauge Digital Inc.
ACCEPTED BY:
/s/ Xxxx Xxxxxxxx
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Xxxx Xxxxxxxx
