This excerpt taken from the EXAC 8-K filed May 8, 2008.
On December 5, 2007, Exactech, Inc. (the Company) filed a Current Report on Form 8-K (the Form 8-K) with the Securities and Exchange Commission (SEC) disclosing the promotion of David W. Petty to the position of President of the Company. The Company is filing this Amendment to the Form 8-K on Form 8-K/A to file an Employment Agreement, dated December 20, 2002, by and between David Petty and the Company, the terms of which have been previously disclosed in the Companys filings with the SEC, and an employment agreement by and between Betty Petty and the Company. In addition, the Company is filing, under cover of this Amendment, a Change of Control Plan which was adopted by the Companys Board of Directors in February 2007, the terms of which have also been previously disclosed in the Companys filings with the SEC.
The Company and Betty Ann Petty, the Companys Vice President of Administration and Human Resources, entered into an employment agreement, dated December 20, 2002, between Ms. Petty and the Company. The employment agreement is effective beginning January 1, 2003, through December 31, 2005, and extends automatically by one year on each anniversary date (December 31). The employment agreement with Ms. Petty is currently extended through December 31, 2008. The employment agreement provides that if Ms. Petty is terminated for cause, as defined in her employment agreement, she is not entitled to receive severance pay. If she is terminated without cause, she is entitled to receive her then current salary for the remaining term of the employment agreement. We believe that providing this type of severance for a termination without cause shows good faith and provides compensation for a reasonable transition period. The employment agreement also contains a provision that she will not compete or engage in a business competitive with our current business for the term of the agreement and for one year thereafter if she is terminated for cause or she terminates her employment.