Severance Agreement and Release
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Title: |
Severance Agreement and Release |
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Entities: |
Blockbuster Inc.; Hastings Entertainment Inc.; Movie Gallery, Inc. |
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Date: |
2006 |
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Size: |
Preview shows 6KB of 24KB total |
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Price: |
$41 |
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ID: |
#1234927 |
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Start of
Preview |
SEVERANCE AGREEMENT AND RELEASE
This Severance Agreement and Release (Agreement) is entered into as of the 16th day of December, 2005 (the Effective Date). The parties to this Agreement are Hastings Entertainment, Inc. (Hastings or the Company) and Steve Hicks (Hicks).
Recitals
1. Hicks has been employed by Hastings as Vice President of Product and has voluntarily resigned his position as the Vice President of Product with Hastings effective December 7, 2005, in order to pursue other business opportunities. Hicks will remain an employee of Hastings through January 13, 2006.
2. Hastings and Hicks do not anticipate that there will be any dispute between them or legal claims arising out of Hicks separation from the Company, but nevertheless desire to settle fully and finally any and all differences, causes of action, claims, or disputes that might otherwise arise out of Hicks employment with the Company.
Agreement
IN CONSIDERATION OF THE MUTUAL PROMISES CONTAINED HEREIN, IT IS AGREED AS FOLLOWS:
1. Temporary Continuation of Pay. Hastings will continue to pay Hicks his regular salary through January 13, 2006. These payments will be issued through the Companys payroll less all applicable taxes and withholding. Hicks will receive his vested employee benefits (including a proportionate part of the bonus payable for the period ending January 31, 2006 payable when bonuses for the period ending January 31, 2006 are paid, and $7,379.25 for accrued but not used vacation pay) payable on or before December 31, 2005.
2. Severance Benefits.
(a) Following his final date of employment, Hastings agrees to pay Hicks a sum equal to ten (10) months of his current base salary plus bonus computed at his bonus percentage for such period based upon an assumed achievement of 100%, equal to $152,303.00, payable in one lump sum less all applicable taxes and withholding. This payment will be made after January 1, 2006, but before February 5, 2006.
(b) If Hicks has not obtained employment by October 15, 2006, Hastings will pay Hicks on a month by month basis his base salary plus bonus computed at his bonus percentage for such period based upon an assumed achievement of 100% for up to an additional three-month period payable in the amount of $ 15,230.30 per month, payable once a month, beginning October 15, 2006, and continuing until January 15, 2007, unless Hicks finds a job sooner. If Hicks becomes employed
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| SEVERANCE AGREEMENT AND RELEASE |
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during such three-month period this payment shall cease. For purposes of this Agreement, Employment means any contract of hire in excess of eighty (80) hours per month whether written, verbal or implied whereby Hicks receives compensation of any kind in exchange for work or services including but not limited to consulting, customer care, data processing, data analysis or market planning.
(c) In addition, the Company will pay the Companys group health care plan premiums on behalf of Hicks and his family for the ten (10) month period beginning January 13, 2006 and during any period payments are made to Hicks pursuant to Section 2.b above.
3. Placement Assistance. The Company will provide placement assistance to assist Hicks through Right Management Consultants for a period of three (3) months, starting April 1, 2006.
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