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AMENDMENT of EMPLOYMENT AGREEMENT

Employment Agreement Amendment

AMENDMENT of EMPLOYMENT AGREEMENT | Document Parties: LIFETIME BRANDS, INC You are currently viewing:
This Employment Agreement Amendment involves

LIFETIME BRANDS, INC

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Title: AMENDMENT of EMPLOYMENT AGREEMENT
Governing Law: New York     Date: 8/12/2009
Industry: Personal and Household Prods.     Sector: Consumer/Non-Cyclical

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Exhibit 10.1

AMENDMENT

of

EMPLOYMENT AGREEMENT

 

THIS AMENDMENT Of EMPLOYMENT AGREEMENT, dated as of this 10 th day of August, 2009 (this “Amendment”), by and between LIFETIME BRANDS, INC., a Delaware corporation (the "Employer"), and JEFFREY SIEGEL (the "Executive").

W I T N E S S E T H:

WHEREAS, Employer and Executive entered into an Employment Agreement dated as of May 2, 2006 (the “Employment Agreement”);

WHEREAS, as of the date of this Amendment the Employer is paying to the Executive a Salary at an annualized rate of $960,268; and

WHEREAS, Employer and Executive desire to amend the Employment Agreement upon the terms and conditions hereinafter set forth;

NOW, THEREFORE, in consideration of the promises and the mutual covenants herein contained, the parties hereto hereby agree as follows:

1.

Amendment . The Employment Agreement is hereby amended as follows:

(A) Sections 3(b) and 3(c) of the Employment Agreement are hereby amended in their entirety as follows:

(b)      Bonuses . For each year during this Agreement, commencing with the year ending December 31, 2009, the Executive shall receive bonuses determined as follows:

 

(i)

Bonuses for 2009 With respect to the year ending December 31, 2009, the Executive shall receive the bonuses provided for in Sections 3(b) and 3(c) of this Agreement in effect prior to the amendments thereto made pursuant to the amendments made in this Agreement dated August 10, 2009 (which bonuses for purposes of this Agreement are assumed to result in a greater amount); provided, however, in no event shall the aggregate amount payable to the Executive pursuant to such Sections 3(b) and 3(c) exceed the “2009 Annual Adjusted IBIT Performance Bonuses” as defined in this Section 3(b).

 

For purposes of this Agreement, the 2009 Annual Adjusted IBIT Performance Bonus shall be that amount shown opposite the Adjusted IBIT achieved by the Employer for such year in the 2009 Adjusted IBIT Performance Bonus Table delivered concurrently herewith to the Executive by the Compensation Committee (the “Compensation Committee”) of the Board of Directors of the Employer (the “2009

 

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Adjusted IBIT Performance Bonus Table”), provided, however, if the amount of the Adjusted IBIT achieved by the Employer for such year is an amount between two of the amounts in such table the Annual Adjusted IBIT Performance Bonus for such year shall be that amount equal to:

 

(x) the Annual Adjusted IBIT Performance Bonus that would be payable by the Employer to the Executive if the Adjusted IBIT achieved is the lower of such amounts, plus

 

(y) that amount equal to:

 

(1) a fraction the numerator of which is the difference between the Adjusted IBIT achieved and the lower of the two such amounts and the denominator of which is the difference between the two such amounts times

 

(2) the difference between the amounts of the bonuses that would be paid with respect to the two such amounts.

 

Notwithstanding anything to the contrary contained in this Agreement, the 2009 Adjusted IBIT Performance Bonus will be zero if the Adjusted IBIT achieved by the Employer for the year ending December 31, 2009 is less than the threshold Adjusted IBIT for 2009 and in no event will the 2009 Adjusted IBIT Performance Bonus be greater than the maximum 2009 Adjusted IBIT Performance Bonus even if the Adjusted IBIT achieved by the Employer for the year ending December 31, 2009, exceeds the maximum Adjusted IBIT for 2009.

 

The Employer shall pay in 2010 to the Executive the Adjusted IBIT Performance Bonus for 2009 earned by the Executive within ten days of the Employer filing its Annual Report on Form 10-K for the year ending December 31, 2009 with the Securities and Exchange Commission; provided, however if the date established by the Internal Revenue Service (the “IRS Payment Date”) by which such payment must be made in order for the Employer to deduct the amount of the Adjusted IBIT Performance Bonus for such year is earlier, the Employer shall pay, (i) if the Employer can determine such amount by the IRS Payment Date, such amount prior to the IRS Payment date or (ii) if the Employer cannot determine such amount by the IRS Payment Date, 90% of the Employer’s good faith estimate of such amount by the IRS Payment Date and the balance, if any, as soon thereafter as the Employer can determine such amount. If, however, 90% of the Employer’s good faith estimate of such amount is more than the Adjusted IBIT Performance Bonus for such year, the Executive shall promptly return such excess to the Employer as soon as the Employer shall notify the Executive of the amount of such excess.

 

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(ii)

Bonuses for 2010 and Years Thereafter. For each year following the year ending December 31, 2009, the Compensation Committee will prepare an Adjusted IBIT Performance Bonus Table for such year which shall be similar to the 2009 Adjusted IBIT Performance Table except that (A) the Adjusted IBIT to be achieved by the Employer for the Executive to obtain 100% of the target bonus will be based on the annual budget for such year prepared by the management of the Employer and discussed by the management of the Employer with the Board of Directors of the Employer and (B) the target bonus payable upon achieving 100% of the target Adjusted IBIT for such year will be 100% of the Salary payable to the Executive for such year. Similarly, the threshold Adjusted IBIT for such year will be an amount between 52% and 56% of the target Adjusted IBIT for such year which, if achieved, would entitle the Executive to receive 50% of the target bonus for such year consistent with the Adjusted IBIT Performance Bonus Table for such year. Similarly, the maximum Adjusted IBIT for such year will be an amount between 210% and 215% of the target Adjusted IBIT for such year which, if achieved, would entitle the Executive to receive 200% of the target bonus for such year, consistent with the Adjusted IBIT Performance Table for such year.

 

Notwithstanding anything to the contrary contained in this Agreement, the Adjusted IBIT Performance Bonus for any such year will be zero if the Adjusted


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