EX-10.27
Severance Payment Agreement
This Agreement is entered into this 29th day of January, 2000, but effective as
of the 20th day of January, 2000 by and between Sunterra Corporation, a Maryland
Corporation (hereinafter "Sunterra") and L. Xxxxxx Xxxxxx (hereinafter
"Xxxxxx").
WHEREAS, Sunterra and Xxxxxx have previously entered into that certain
Employment Agreement dated as of September 11, 1998 (hereinafter "Employment
Agreement") which provided for employment of Xxxxxx by Sunterra and terms
related to the termination of that employment, and
WHEREAS, Sunterra and Xxxxxx have mutually agreed to the cessation, without
cause, of Xxxxxx'x full time employment by Sunterra, and
WHEREAS, Sunterra and Xxxxxx have mutually agreed that as a result of such
cessation, Xxxxxx shall be paid certain severance payments;
NOW THEREFORE in consideration of the mutual promises herein contained as
well as in full satisfaction of Sunterra's severance obligations pursuant to the
Employment Agreement, both Xxxxxx and Sunterra agree as follows:
1) Xxxxxx and Sunterra each agree to enter into that certain Consulting
Agreement, a copy of which is attached hereto as Exhibit "A".
2) Sunterra shall pay to Xxxxxx the sum of $876,000 payable in 24 equal monthly
installments of $36,500 commencing February 29, 2000 and continuing on the
last day of each month thereafter until paid in full (the "Severance
Payments").
3) Any violation or breach of the Consulting Agreement shall not affect
Sunterra's obligation to make all of the Severance Payments due hereunder.
4) In the event that Xxxxxx should exercise his right to revoke the General
Release and Waiver executed by Xxxxxx in favor of Sunterra dated January 28,
2000, then this Agreement shall be revoked as of its effective date as if
never entered into between the parties without any liability for any accrued
payment.
5) In the event of any dispute related to this Agreement, venue for such action
shall be in Orange County, Florida.
Agreed to by and between the parties hereto as of the date set forth above.
Sunterra Corporation
By: /s/ Xxxx Xxxxxxx /s/ L. Xxxxxx Xxxxxx
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As its: CO. CHAIRMAN L. Xxxxxx Xxxxxx
