NORTECH SYSTEMS INCORPORATED (NASDAQ:NSYS) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Curt Steichen Employment Agreement
(b) On September 17, 2019, Nortech Systems Incorporated (the “Company”) entered into an Employment Agreement with Curtis Steichen (the “Steichen Agreement”) as the Company’s Senior Vice President of Sales. The Steichen Agreement wholly supersedes and terminates all prior employment and change of control agreements between the Company and Mr. Steichen. The term of the Steichen Agreement continues until September 30, 2020 which will automatically renew for successive one-year renewal terms unless either party notifies the other party in writing at least ninety days prior to expiration. Under the Steichen Agreement, Mr. Steichen is entitled to receive a salary equivalent to a monthly amount of $175,000 an is eligible to participate in the Company’s benefit plans and equity incentive plans. Mr. Steichen is eligible for bonus compensation based upon satisfaction of specific criteria to be determined each calendar year, with a stated payout percentage of up to 60% of base salary under the bonus plan.
The Steichen Agreement has customary non-solicitation and confidentiality provisions.
Under the Steichen Agreement, if Mr. Steichen\’s employment is terminated by the Company without Cause (as defined in the Steichen Agreement) or by Mr. Steichen for Good Reason (as defined in the Steichen Agreement), so long as he has signed and has not revoked a release agreement, he will be entitled to receive severance comprised of (i) his base salary in effect at time of termination for the longer of (a) the remainder of the term of the Steichen Agreement or (b) nine months, (ii) the bonus earned under Mr. Steichen\’s incentive bonus plan for the fiscal year in which his termination occurred, prorated for the portion of such fiscal year through the date of such termination and payable at the same time as annual bonuses are paid to the Company’s other executive officers and (iii) certain benefits set forth in the Steichen Agreement.
If Mr. Steichen’s employment is terminated within 12 months after a Change of Control (as defined in the Steichen Agreement) by the Company without Cause, so long as he has signed and has not revoked a release agreement, he will be entitled to receive severance comprised of (i) his base salary in effect at time of termination for the longer of (a) the remainder of the term of the Steichen Agreement or (b) nine months , (ii) the bonus earned under Mr. Steichen\’s incentive bonus plan for the fiscal year in which his termination due to Change of Control occurred, prorated for the portion of such fiscal year through the date of such termination and payable at the same time as annual bonuses are paid to the Company’s other executive officers and (iii) certain benefits set forth in the Steichen Agreement.
The foregoing summary of the Steichen Agreement is qualified in all respects by the Steichen Agreement, a copy of which is attached hereto as Exhibit 10.1 and incorporated herein by this reference.
Item 9.01 Financial Statements and Exhibits
NORTECH SYSTEMS INC Exhibit
EX-10.1 2 ex_158080.htm EXHIBIT 10.1 ex_158080.htm Exhibit 10.1 NORTECH SYSTEMS INCORPORATED EMPLOYMENT AGREEMENT This Employment Agreement (“Agreement”),…
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About NORTECH SYSTEMS INCORPORATED (NASDAQ:NSYS)
Nortech Systems Incorporated is an electronic manufacturing services (EMS) company. The Company offers a range of value-added engineering, technical and manufacturing services and support, including project management, design, testing, prototyping, manufacturing, supply chain management and post-market services. The Company’s segment is Contract Manufacturing. The Company’s manufacturing and engineering services include medical devices, printed circuit board assemblies, wire and cable assemblies, and electromechanical assemblies. The Company’s manufacturing facilities are located at Bemidji, Blue Earth, Merrifield, Eden Prairie, Milaca and Mankato in Minnesota; Augusta in Wisconsin; Monterrey in Mexico, and Suzhou in China. The Company serves approximately three markets within the EMS industry, such as Aerospace and Defense, Medical/Life Sciences and the Industrial market, which includes industrial equipment, transportation, vision, agriculture, oil and gas.
