Death Benefit Agreement - Koss Corp. and John C. Koss
DEATH BENEFIT AGREEMENT
AGREEMENT made this 24th day of April, 1980, between Koss Corporation
(hereinafter referred to as Company) and John C. Koss (hereinafter referred to
as Employee).
WHEREAS, Employee is employed by Company as its Chairman and Chief
Executive Officer, and
WHEREAS, Company and Employee desire to enter into an Agreement whereby if
Employee dies prior to attaining the age of seventy (70) years and while in the
Company's employ at the time of death, or has previously retired in accord with
the Company's retirement policy, certain payments will be made as more fully
set forth herein.
NOW, THEREFORE, in consideration of the employment of Employee by Company
and intending to be legally bound hereby, the parties hereto agree as follows:
1. Employee Death Benefits
If Employee's death occurs before Employee has attained the age of seventy
(70) years, and while Employee is an active employee of Company or has
previously retired in accord with the Company's retirement policy, Company
will pay to the designated beneficiary (as indicated in paragraph 6 hereof)
the sum of Fifty Thousand Dollars ($50,000.00) semiannually commencing
thirty (30) days following the date of Employee's death and every six
months thereafter until the sum of the benefits paid hereunder totals Seven
Hundred Thousand Dollars ($700,000.00).
2. Employee's Contribution
Employee acknowledges that he has not been required to make any monetary
investment in Company or give any consideration, other than employment, to
Company in return for this Agreement.
3. Company's Funding
Company shall not be required to fund its potential obligations under this
Agreement or to pledge assets as security for its performance hereunder.
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4. Termination of Employment
This Agreement shall not in any way constitute any employment agreement
between Employee and Company and shall in no way obligate Company to
continue the employment of Employee with Company, nor shall this Agreement
limit the right of Company to terminate Employee's employment with Company
for any reason. Termination of Employee's employment with Company for any
reason, whether by action of Company, Employee or in any other manner,
shall immediately terminate this Agreement and all of Company's obligations
hereunder. For purposes of paragraph 1, the word "termination" shall not
be defined to include termination occasioned by the death of Employee.
5. Other Benefits and Agreements
The benefits provided for Employee hereunder are in addition to any other
benefits Employee may have under any other plan or program of Company, and,
except as otherwise expressly provided for herein, this Agreement shall
supplement and shall not supersede any other Agreement between Company and
Employee or any provision contained therein.
6. Beneficiary Designation
All sums due hereunder as a result of Employee's death shall be payable to
Employee's spouse, if living at the date of the payment required hereunder,
otherwise to Employee's issue by right of representation.
7. Notices
Any notice which shall be or may be given hereunder shall be in writing and
shall be mailed by certified mail, postage prepaid, addressed as follows:
(a) Notice to Employee or Assignee:
7787 N. River Road
River Hills, Wisconsin 53217
(b) Notice to Company:
4129 N. Port Washington Avenue
Milwaukee, Wisconsin 53212
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Any party hereto may from time to time change the address to which notices
to it shall be mailed by giving notice thereof in the manner provided for
herein.
8. Miscellaneous
(a) This Agreement shall be binding upon and inure to the benefit of the
parties hereto, their respective heirs, personal representatives,
successors and assigns.
(b) This Agreement represents the entire understanding between the parties
hereto and may be amended only by an instrument in writing signed by
such parties.
(c) This Agreement shall be governed and construed under the laws of the
State of Wisconsin as in effect at the time of the execution of this
Agreement.
(d) All headings preceding the text of the several paragraphs hereof are
inserted solely for reference and shall not constitute a part of this
Agreement, nor affect its meaning, construction or effect.
(e) Upon Employee's attaining the age of seventy (70) years, this
Agreement shall terminate and shall be considered null, void, and of
no legal effect.
IN WITNESS WHEREOF, the parties hereto have set their hands and seal the
day first written above.
/s/ John C. Koss (SEAL)
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Employee John C. Koss
Koss Corporation
By: /s/ Dennis P. Wherry (SEAL)
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Dennis P. Wherry
Its: Vice President
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