EXHIBIT 99.28
April 13,
2009
VIA HAND
DELIVERY WITH COPY BY EMAIL
Mr. Michael W.
Klinger
22420 Crooked
Creek Road
Cicero, IN
46034
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Notice of
Termination of Employment for Cause
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Mr.
Klinger,
EDCI Holdings,
Inc. (“EDCI”) hereby provides you written notice of
termination of your employment by EDCI for Cause, subject to
approval by EDCI’s Board of Directors, pursuant to the
agreement dated October 3, 2008 between EDCI and you (the
“MWK CFO Employment Letter”). Defined terms
have the meaning set forth in the MWK CFO Employment Letter unless
otherwise noted.
The grounds for
such termination for Cause are primarily your willful, deliberate
and unauthorized binding, in writing, of Entertainment Distribution
Company, LLC (“EDC LLC”) to over $176,000 in improper
and unauthorized severance payments – double the approved
amounts for the subject employees (the “Double Severance
Payments”) – in addition to other specific occurrences
of material violations of your responsibilities. As you
know, Section 5.1 of the Severance Pay Policy for Entertainment
Distribution Company (USA) LLC (“EDC USA”), adopted by
the Board of Directors of EDC LLC on October 3, 2008 and applicable
to all employees of EDC USA, provides for severance of one week of
base pay for each complete year of service up to a maximum of 10
weeks’ pay. Your willful and deliberate binding of
EDC LLC to $176,000 of improper and unauthorized severance based on
20 weeks’ pay (all of which payments were acknowledged by you
as “severance” in several emails you forwarded to me)
for each of the subject employees in violation of that policy was
clearly a material violation of your responsibilities as an
executive of EDCI and its subsidiaries.
Not only never
did you dispute or contest that those grossly negligent Double
Severance Payments constituted grounds for termination of your
employm
