UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of report (Date of earliest event reported): May 21, 2014

THE LGL GROUP, INC.
(Exact Name of Registrant as Specified in Charter)
 
 
 
Delaware
1-106
38-1799862
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
 
 
 
2525 Shader Road, Orlando, FL
32804
(Address of Principal Executive Offices)
(Zip Code)

Registrant's Telephone Number, Including Area Code: (407) 298-2000

 
(Former Name or Former Address, If Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

2643303-4

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On May 21, 2014, Gregory P. Anderson, President and Chief Executive Officer of The LGL Group, Inc. (the "Company"), resigned from all of his positions with the Company and its subsidiaries in order to pursue other business ventures.
On May 21, 2014, Michael J. Ferrantino, Sr., Executive Vice Chairman of the Board of the Company and Executive Chairman of the Board of M-tron Industries, Inc., was appointed as the Company's Interim Chief Executive Officer and will assume Mr. Anderson's responsibilities while the Company's Board of Directors considers candidates for the position of Chief Executive Officer.
Mr. Ferrantino, age 71, has served as Executive Vice Chairman of the Board of the Company and Executive Chairman of the Board of M-tron Industries, Inc. since October 2013.  Previously, Mr. Ferrantino was President and Chief Executive Officer of Valpey-Fisher Corporation, a provider of electronic components used in communications, medical, defense and aerospace, industrial and computer applications for OEMs and contract manufacturers worldwide, from September 2002 to November 2009, and President – Micro Networks Division of Integrated Circuit Systems, Inc., a supplier of precision timing devices for optical networking, wireless infrastructure and high end network servers using surface acoustic wave and RF technology, from January 2002 to September 2002.  Currently, Mr. Ferrantino serves as the Chairman of the Board of Directors for Spectra Analysis Instruments, Inc., a developer and manufacturer of next-generation molecular analysis instrumentation.
On May 27, 2014, in connection with Mr. Anderson's resignation, the Company and Mr. Anderson entered into an Agreement and Release (the "Anderson Agreement").  The Anderson Agreement provides for certain releases by Mr. Anderson of, and certain other commitments to, the Company, and for the Company's agreement to: (i) pay Mr. Anderson $100,000 in cash, of which $50,000 will be paid in three equal monthly installments during the first three months after his resignation and the remaining $50,000 will be paid six months after his resignation; (ii) pay the employer's portion of the premium associated with his COBRA coverage for a six month period; (iii) cause 2,940 restricted shares of the Company's common stock held by Mr. Anderson to vest, of which half will vest six months after his resignation and the other half will vest one year after his resignation; and (iv) cause options to purchase 7,500 shares of the Company's common stock at an exercise price of $10.00 per share to vest.  The foregoing description of the Anderson Agreement is qualified in its entirety by the full text of the Anderson Agreement, which is filed herewith as Exhibit 10.1 and incorporated herein by reference.
On May 27, 2014, James L. Williams, the Company's Corporate Controller, was terminated from his positions with the Company and its subsidiaries.  On May 27, 2014, the Company and Mr. Williams entered into an Agreement and Release (the "Williams Agreement").  The Williams Agreement provides for certain releases by Mr. Williams of, and certain other commitments to, the Company, and for the Company's agreement to continue to: (i) pay his base salary for four weeks after termination; and (ii) pay the employer's portion of the premium associated with his COBRA coverage for a three month period.  The foregoing description of the Williams Agreement is qualified in its entirety by the full text of the Williams Agreement, which is filed herewith as Exhibit 10.2 and incorporated herein by reference.
 
Item 8.01.                            Other Events.
On May 22, 2014, the Company issued a press release announcing the resignation of Mr. Anderson and the appointment of Mr. Ferrantino as the Company's Interim Chief Executive Officer.  A copy of the press release is attached as Exhibit 99.1 hereto.
Item 9.01.                            Financial Statements and Exhibits.
(d)              Exhibits
Exhibit No.
Description
99.1
Press Release dated May 22, 2014.
10.1
Agreement and Release, dated May 27, 2014, by and between Gregory P. Anderson and The LGL Group, Inc.
10.2
Agreement and Release, dated May 27, 2014, by and between James L. Williams and The LGL Group, Inc.


 


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

May 28, 2014
THE LGL GROUP, INC.
By:
/s/ R. LaDuane Clifton
Name:
R. LaDuane Clifton
Title:
Chief Financial Officer


 

EXHIBIT INDEX

Exhibit No.
Description
99.1
Press Release dated May 22, 2014.
10.1
Agreement and Release, dated May 27, 2014, by and between Gregory P. Anderson and The LGL Group, Inc.
10.2
Agreement and Release, dated May 27, 2014, by and between James L. Williams and The LGL Group, Inc.


 
Exhibit 10.1
 
Agreement and Release
Agreement and Release ("Agreement") executed this 27th day of May, 2014, by and between Gregory P. Anderson ("Executive"), residing at 43197 SD Hwy 52, Yankton, South Dakota 57078, and The LGL Group, Inc., its parents, subsidiaries and affiliates (the "Company") having its principal place of business at 2525 Shader Rd., Orlando, Florida 32804.
1.                 Executive has resigned from his employment effective May 21, 2014 (the "Termination Date").  As of the Termination Date, Executive's duties, responsibilities, office and title have ceased.  Capitalized terms used without definition in this Agreement shall have the meanings set forth in that certain employment agreement by and between Executive and the Company, entered into the 4 th   day of October, 2013 with an effective date of November 2, 2013 (the "Employment Agreement").
 
2.                     (a)              Within (10) days of the Release Effective Date (defined below), the Company shall pay to Executive the following payments and benefits: (i) subject to Section 2(c), the sum of $100,000, of which $50,000 shall be payable in three equal monthly installments during the first three months after the Termination Date and the remaining $50,000 shall be payable six months after the Termination Date (the "Severance Payments"); (ii) the vesting of any shares of the Company's common stock held by Executive that are unvested as of the Termination Date (the "Restricted Shares") such that half of the Restricted Shares (1,470 shares) shall vest six months after the Termination Date and the remaining Restricted Shares (1,470 shares) shall vest one year after the Termination Date; and (iii) the vesting of options to purchase 7,500 shares of the Company's common stock at an exercise price of $10.00 per share awarded to Executive on August 9, 2012, which options shall expire on the fifth anniversary of the grant date.
 
(b)              Within ten (10) days of the later of (i) the Release Effective Date or (ii) the Executive's timely election of and eligibility for continuation of benefits, the Company shall begin to reimburse Executive for the employer's portion of the premium associated with COBRA coverage for a six (6) month period.
 
(c)              The Company and Executive agree that in the event that any of the payments in this Section 2 constitute deferred compensation within the meaning of Section 409(A) of the Internal Revenue Code of 1986, as amended (the "Code"), and Executive is at such time a specified employee, such payment or payments that constitute nonqualified deferred compensation within the meaning of the Code shall not be made prior to the date that is the earlier of (i) the expiration of the six-month period measured from the date of such "separation from service" of Executive, and (ii) 30 days after the date of Executive's death (within the meaning of the Code).
 
3.                 Executive agrees and acknowledges that the payments and/or benefits provided in Section 2 above exceed any payments and benefits to which Executive would otherwise be entitled under any policy, plan, and/or procedure of the Company absent his signing this Agreement.  Executive acknowledges that he has been paid for work performed up to and including the Termination Date and for accrued but unused vacation.
 
4.                 Executive shall have up to 21 days from the date of his receipt of this Agreement to consider the terms and conditions of this Agreement.  Executive may accept this Agreement at any time within the 21-day period by executing it and returning it to the Chairman of the Board of Directors, The LGL Group, Inc., 2525 Shader Rd., Orlando, Florida 32804, no later than 5:00 p.m. on the 21 st day after Executive's receipt of this Agreement.  Thereafter, Executive will have seven days to revoke this Agreement by stating his desire to do so in writing to the Chairman of the Board of Directors at the address listed above, and delivering it to the Chairman of the Board of Directors no later than 5:00 p.m. on the seventh day following the date Executive signs this Agreement.  The effective date of this Agreement shall be the eighth day following Executive's signing of this Agreement (the "Release Effective Date"), provided Executive does not revoke the Agreement during the revocation period.  In the event Executive does not accept this Agreement as set forth above, or in the event Executive revokes this Agreement during the revocation period, this Agreement, including but not limited to the obligation of the Company and its subsidiaries and affiliates to provide the payment and/or benefits referred to in Section 2, shall automatically be deemed null and void.
 
5.                     (a)              In consideration of the payment and/or benefits referred to in Section 2 above, Executive for himself and for his heirs, executors, and assigns (hereinafter collectively referred to as the "Releasors"), forever releases and discharges the Company and any and all of its parent corporations, subsidiaries, divisions, affiliated entities, predecessors, successors and assigns, and any and all of its or their employee benefit and/or pension plans or funds, and any of its or their past or present officers, directors, stockholders, agents, trustees, administrators, employees or assigns (whether acting as agents for such entities or in their individual capacities), (hereinafter collectively referred to as the "Releasees"), from any and all claims, demands, causes of action, fees and liabilities of any kind whatsoever (based upon any legal or equitable theory, whether contractual, common-law, statutory, decisional, federal, state, local or otherwise), whether known or unknown, which Releasors ever had, now have or may have against the Releasees by reason of any actual or alleged act, omission, transaction, practice, conduct, occurrence, or other matter from the beginning of the world up to and including the Release Effective Date, except for the obligations of the Company under this Agreement.
 
(b)              Without limiting the generality of the foregoing Section 5(a), this Agreement is intended to and shall release the Releasees from any and all claims arising out of Executive's employment with Releasees and/or the termination of Executive's employment, including but not limited to any claim(s) under or arising out of (i) Title VII of the Civil Rights Act of 1964, as amended; (ii) the Americans with Disabilities Act, as amended; (iii) the Employee Retirement Income Security Act of 1974, as amended ("ERISA") (excluding claims for accrued, vested benefits under any employee benefit plan of the Company in accordance with the terms of such plan and applicable law); (iv) the Age Discrimination in Employment Act, as amended, or the Older Workers Benefit Protection Act; (v) the Florida Civil Rights Act; (vi) Section 806 of the Sarbanes Oxley Act of 2002; (vii) alleged discrimination or retaliation in employment (whether based on federal, state or local law, statutory or decisional); (viii) the terms and conditions of Executive's employment with the Company, the termination of such employment, and/or any of the events relating directly or indirectly to or surrounding that termination; and (ix) any law (statutory or decisional) providing for attorneys' fees, costs, disbursements and/or the like.
 
(c)              Notwithstanding the foregoing, nothing in this Agreement shall be construed to prevent Executive from filing a charge with or participating in an investigation conducted by any governmental agency, including, without limitation, the United States Equal Employment Opportunity Commission ("EEOC") or applicable state or city fair employment practices agency, to the extent required or permitted by law.  Nevertheless, Executive understands and agrees that he is waiving any relief available (including, for example, monetary damages or reinstatement), under any of the claims and/or causes of action waived in Sections 5(a) and (b), including but not limited to financial benefit or monetary recovery from any lawsuit filed or settlement reached by the EEOC or anyone else with respect to any claims released and waived in this Agreement.
 
(d)              Nothing in this Agreement shall release Executive's rights (i) as a stockholder of the Company; (ii) to any claims that arise following the execution of this Agreement; (iii) to payment of the Accrued Obligations (as defined in the Employment Agreement); (iv) to payment of the severance payments and benefits described in Section 2 above; (v) to indemnification pursuant to any agreements currently in effect indemnifying Executive; or (vi) to any claims for accrued vested benefits or rights under any other employee benefit plan, policy or arrangement (whether tax-qualified or not) maintained by the Company.
 
6.                     (a)              Executive agrees that he has not and will not engage in any conduct that is injurious to the Company's or the Releasees' reputation or interest, including but not limited to publicly disparaging (or inducing or encouraging others to publicly disparage) the Company or the Releasees.  The foregoing shall not be violated by truthful testimony, if provided pursuant to the terms of Section 7(b).
 
(b)              Executive acknowledges that he has returned to the Company any and all originals and copies of documents, materials, records, credit cards, keys, building passes, computers, blackberries and other electronic devices or other items in his possession or control belonging to the Company or containing proprietary information relating to the Company pursuant to Section 8(b) of the Employment Agreement.  Executive may retain Executive's rolodex and similar address books, provided, that such items only include contact information.
 
(c)              Executive acknowledges that the terms of Section 8 of the Employment Agreement, Confidentiality Agreement and Assignment of Intellectual Property, are incorporated herein by reference, and Executive agrees and acknowledges that he is bound by its terms.
 
7.                     (a)              Executive will cooperate with the Company and/or its subsidiaries and its affiliates and its/their counsel in connection with any investigation, administrative proceeding or litigation relating to any matter in which Executive was involved or of which Executive has knowledge.
 
(b)              Executive agrees that, in the event he is subpoenaed by any person or entity (including, but not limited to, any government agency) to give testimony (in a deposition, court proceeding or otherwise) that in any way relates to Executive's employment with the Company, he will give prompt notice of such request to the Company's Chairman of the Board, and will make no disclosure until the Company has had a reasonable opportunity to contest the right of the requesting person or entity to such disclosure, provided that nothing herein shall prevent Executive from complying with the requirements of the law.
 
8.                 Prior to public announcement, the terms and conditions of this Agreement are and shall be deemed to be confidential, and shall not be disclosed by Executive to any person or entity without the prior written consent of the Chairman of the Board, except if required by law, and to Executive's accountants, attorneys, and spouse, provided that they agree to maintain the confidentiality of this Agreement.  Executive further represents that he has not disclosed the terms and conditions of this Agreement to anyone other than his attorneys, accountants and spouse.
 
  
9.                 The making of this Agreement is not intended, and shall not be construed, as an admission that the Releasees have violated any federal, state or local law (statutory or decisional), ordinance or regulation, breached any contract, or committed any wrong whatsoever against Executive.
 
10.              The parties agree that this Agreement may not be used as evidence in a subsequent proceeding except in a proceeding to enforce the terms of this Agreement.
 
11.              Executive acknowledges that: (a) he has carefully read this Agreement in its entirety; (b) he has had an opportunity to consider fully the terms of this Agreement; (c) he has been advised by the Company in writing to consult with an attorney of his choosing in connection with this Agreement; (d) he fully understands the significance of all of the terms and conditions of this Agreement and he has discussed it with his independent legal counsel, or has had a reasonable opportunity to do so; (e) he has had answered to his satisfaction any questions he has asked with regard to the meaning and significance of any of the provisions of this Agreement; and (f) he is signing this Agreement voluntarily and of his own free will and assents to all the terms and conditions contained herein.
 
12.              This Agreement is binding upon, and shall inure to the benefit of, the parties and their respective heirs, executors, administrators, successors and assigns.
 
13.              If any provision of this Agreement shall be held by a court of competent jurisdiction to be illegal, void, or unenforceable, such provision shall be of no force and effect.  However, the illegality or unenforceability of such provision shall have no effect upon, and shall not impair the enforceability of, any other provision of this Agreement; provided, however, that, upon any finding by a court of competent jurisdiction that the release and covenants provided for by Section 5 above is illegal, void, or unenforceable, Executive agrees to execute a release, waiver and/or covenant that is legal and enforceable.  Finally, any breach of the terms of Sections 6, 7 and/or 8 above shall constitute a material breach of this Agreement as to which the Company may seek appropriate relief in a court of competent jurisdiction.
 
14.              This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Florida, without regard to the conflict of laws provisions thereof.  Actions to enforce the terms of this Agreement, or that relate to Executive's employment with the Company shall be submitted to the exclusive jurisdiction of any state or federal court sitting in the County of Orange, State of Florida, as more fully provided in the Employment Agreement.
 
15.              This Agreement may be executed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument of this Agreement.
 
16.              This Agreement (including any exhibits attached hereto) constitutes the complete understanding between the parties with respect to the termination of Executive's employment at the Company and supersedes any and all agreements, understandings, and discussions, whether written or oral, between the parties.  No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by each of the parties hereto.
 
[Signature page follows]
[Signature page to Agreement and Release]
Dated:
May 27, 2014
/s/ Gregory P. Anderson
GREGORY P. ANDERSON
THE LGL GROUP, INC.
Dated:
May 27, 2014
By:
/s/ R. LaDuane Clifton
Name:
R. LADUANE CLIFTON
Title:
CHIEF FINANCIAL OFFICER
Exhibit 99.1
 
  
 
 

LGL Announces Senior Leadership Changes

ORLANDO, FL, May 22, 2014 – The LGL Group, Inc. (NYSE MKT: LGL) (the "Company") today announced that its President and Chief Executive Officer, Greg Anderson, has resigned, effective immediately.

Mr. Ferrantino said, "We all want to thank Greg for his service to the Company and wish him success in his future endeavors."  The Company's Chairman of the Board, Marc Gabelli, added "I also want to thank Greg for his years of service to the Company and wish him all the best in whatever he chooses to do in the future.  In the interim, Michael will immediately assume the role of interim CEO and the Board will begin the search for a new CEO to lead the Company."

Mr. Ferrantino joined the Company in October 2013 as Executive Vice Chairman of the Company's Board of Directors, and as Executive Chairman of MtronPTI, the Company's primary operating subsidiary.  He has more than three decades of experience in leading high technology companies, especially in the area of frequency control, RF/microwave and integrated assemblies.

About The LGL Group, Inc.

The LGL Group, Inc., through its wholly-owned subsidiary MtronPTI, manufactures and markets highly-engineered electronic components used to control the frequency or timing of signals in electronic circuits.  These components provide low noise and base accuracy for lab instruments, ensure reliability and security in aerospace and defense communications, and synchronize data transfers throughout the wireless and Internet infrastructure.

Headquartered in Orlando, Florida, the Company has additional design and manufacturing facilities in Yankton, South Dakota and Noida, India, with local sales offices in California, Europe, Hong Kong and Shanghai.
 
For more information on the Company and its products and services, contact LaDuane Clifton at The LGL Group, Inc., 2525 Shader Rd., Orlando, Florida 32804, (407) 298-2000, or visit www.lglgroup.com and www.mtronpti.com .

Caution Concerning Forward Looking Statements
 
This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and is subject to risks, uncertainties and other factors.  The Company's actual performance may differ materially from such expectations as a result of important risk factors, which include, those identified in the Company's Form 10-K for the ended December 31, 2012 and its other filings with the U.S. Securities and Exchange Commission.  These risks and uncertainties could cause actual results to differ materially from those referred to in these forward-looking statements.  The Company does not undertake an obligation to update or revise any forward-looking statements.
 
###

Contact

R. LaDuane Clifton
The LGL Group, Inc.
lclifton@lglgroup.com
(407) 298-2000

Exhibit 10.2
 
Agreement and Release
Agreement and Release ("Agreement") executed this 27th day of May, 2014, by and between James L. Williams  ("Executive"), residing at 1812 Lake Francis Drive, Apopka, Florida 32712, and The LGL Group, Inc., its parents, subsidiaries and affiliates (the "Company") having its principal place of business at 2525 Shader Rd., Orlando, Florida 32804.

1.                  Executive's employment shall terminate effective May 27, 2014 (the "Termination Date").  As of that date, Executive's duties, responsibilities, office and title shall cease.
 
2.                     (a)              Within (10) days after the Release Effective Date (defined below), the Company shall begin to pay to Executive four (4) weeks of Executive's base salary, less withholdings and deductions, in accordance with the Company's standard payroll practices.
 
(b)              Within ten (10) days of the later of (i) the Release Effective Date or (ii) the Executive's timely election of and eligibility for continuation of benefits, the Company shall reimburse Executive for the employer's portion of the premium associated with Executive's COBRA coverage for a three (3) month period.
 
3.                  Executive agrees and acknowledges that the payments and/or benefits provided in Section 2 above exceed any payments and benefits to which Executive would otherwise be entitled under any policy, plan, and/or procedure of the Company absent his signing this Agreement.  Executive acknowledges that he has been paid for work performed up to and including the Termination Date and for accrued but unused vacation.
 
4.                  Executive shall have up to 21 days from the date of his receipt of this Agreement to consider the terms and conditions of this Agreement.  Executive may accept this Agreement at any time within the 21-day period by executing it and returning it to the Chairman of the Board of Directors, The LGL Group, Inc., 2525 Shader Rd., Orlando, Florida 32804, no later than 5:00 p.m. on the 21 st day after Executive's receipt of this Agreement.  Thereafter, Executive will have seven days to revoke this Agreement by stating his desire to do so in writing to the Chairman of the Board of Directors at the address listed above, and delivering it to the Chairman of the Board of Directors no later than 5:00 p.m. on the seventh day following the date Executive signs this Agreement.  The effective date of this Agreement shall be the eighth day following Executive's signing of this Agreement (the "Release Effective Date"), provided Executive does not revoke the Agreement during the revocation period.  In the event Executive does not accept this Agreement as set forth above, or in the event Executive revokes this Agreement during the revocation period, this Agreement, including but not limited to the obligation of the Company and its subsidiaries and affiliates to provide the payments and/or benefits referred to in Section 2, shall automatically be deemed null and void.
 
5.                     (a)              In consideration of the payments and/or benefits referred to in Section 2, Executive for himself and for his heirs, executors, and assigns (hereinafter collectively referred to as the "Releasors"), forever releases and discharges the Company and any and all of its parent corporations, subsidiaries, divisions, affiliated entities, predecessors, successors and assigns, and any and all of its or their employee benefit and/or pension plans or funds, and any of its or their past or present officers, directors, stockholders, agents, trustees, administrators, employees or assigns (whether acting as agents for such entities or in their individual capacities), (hereinafter collectively referred to as the "Releasees"), from any and all claims, demands, causes of action, fees and liabilities of any kind whatsoever (based upon any legal or equitable theory, whether contractual, common-law, statutory, decisional, federal, state, local or otherwise), whether known or unknown, which Releasors ever had, now have or may have against the Releasees by reason of any actual or alleged act, omission, transaction, practice, conduct, occurrence, or other matter from the beginning of the world up to and including the Release Effective Date, except for the obligations of the Company under this Agreement.
 
(b)              Without limiting the generality of the foregoing Section 5(a), this Agreement is intended to and shall release the Releasees from any and all claims arising out of Executive's employment with Releasees and/or the termination of Executive's employment, including but not limited to any claim(s) under or arising out of (i) Title VII of the Civil Rights Act of 1964, as amended; (ii) the Americans with Disabilities Act, as amended; (iii) the Employee Retirement Income Security Act of 1974, as amended ("ERISA") (excluding claims for accrued, vested benefits under any employee benefit plan of the Company in accordance with the terms of such plan and applicable law); (iv) the Age Discrimination in Employment Act, as amended, or the Older Workers Benefit Protection Act; (v) the Florida Civil Rights Act; (vi) Section 806 of the Sarbanes Oxley Act of 2002; (vii) alleged discrimination or retaliation in employment (whether based on federal, state or local law, statutory or decisional); (viii) the terms and conditions of Executive's employment with the Company, the termination of such employment, and/or any of the events relating directly or indirectly to or surrounding that termination; and (ix) any law (statutory or decisional) providing for attorneys' fees, costs, disbursements and/or the like.
 
(c)              Notwithstanding the foregoing, nothing in this Agreement shall be construed to prevent Executive from filing a charge with or participating in an investigation conducted by any governmental agency, including, without limitation, the United States Equal Employment Opportunity Commission ("EEOC") or applicable state or city fair employment practices agency, to the extent required or permitted by law.  Nevertheless, Executive understands and agrees that he is waiving any relief available (including, for example, monetary damages or reinstatement), under any of the claims and/or causes of action waived in Sections 6(a) and (b), including but not limited to financial benefit or monetary recovery from any lawsuit filed or settlement reached by the EEOC or anyone else with respect to any claims released and waived in this Agreement.
 
6.                     (a)              Executive agrees that he has not and will not engage in any conduct that is injurious to the Company's or the Releasees' reputation or interest, including but not limited to publicly disparaging (or inducing or encouraging others to publicly disparage) the Company or the Releasees.
 
(b)              Executive acknowledges that he has returned to the Company any and all originals and copies of documents, materials, records, credit cards, keys, building passes, computers, blackberries and other electronic devices or other items in his possession or control belonging to the Company or containing proprietary information relating to the Company.
 
(c)              Executive further agrees that he will maintain the confidentiality of all customer and Company confidential information, unless and until such information is made public through no actions of Executive.

7.                     (a)              Executive will cooperate with the Company and/or its subsidiaries and its affiliates and its/their counsel in connection with any investigation, administrative proceeding or litigation relating to any matter in which Executive was involved or of which Executive has knowledge.
 
(b)              Executive agrees that, in the event he is subpoenaed by any person or entity (including, but not limited to, any government agency) to give testimony (in a deposition, court proceeding or otherwise) that in any way relates to Executive's employment with the Company, he will give prompt notice of such request to the Chairman of the Board of Directors of the Company, and will make no disclosure until the Company has had a reasonable opportunity to contest the right of the requesting person or entity to such disclosure, provided that nothing herein shall prevent Executive from complying with the requirements of the law.
 
8.                  Prior to public announcement, the terms and conditions of this Agreement are and shall be deemed to be confidential, and shall not be disclosed by Executive to any person or entity without the prior written consent of the Chairman of the Board, except if required by law, and to Executive's accountants, attorneys, and spouse, provided that they agree to maintain the confidentiality of this Agreement.  Executive further represents that he has not disclosed the terms and conditions of this Agreement to anyone other than his attorneys, accountants and spouse.
 
9.                  The making of this Agreement is not intended, and shall not be construed, as an admission that the Releasees have violated any federal, state or local law (statutory or decisional), ordinance or regulation, breached any contract, or committed any wrong whatsoever against Executive.
 
10.               The parties agree that this Agreement may not be used as evidence in a subsequent proceeding except in a proceeding to enforce the terms of this Agreement.
 
11.               Executive acknowledges that: (a) he has carefully read this Agreement in its entirety; (b) he has had an opportunity to consider fully the terms of this Agreement; (c) he has been advised by the Company in writing to consult with an attorney of his choosing in connection with this Agreement; (d) he fully understands the significance of all of the terms and conditions of this Agreement and he has discussed it with his independent legal counsel, or has had a reasonable opportunity to do so; (e) he has had answered to his satisfaction any questions he has asked with regard to the meaning and significance of any of the provisions of this Agreement; and (f) he is signing this Agreement voluntarily and of his own free will and assents to all the terms and conditions contained herein.
 
12.              This Agreement is binding upon, and shall inure to the benefit of, the parties and their respective heirs, executors, administrators, successors and assigns.
 
13.               If any provision of this Agreement shall be held by a court of competent jurisdiction to be illegal, void, or unenforceable, such provision shall be of no force and effect.  However, the illegality or unenforceability of such provision shall have no effect upon, and shall not impair the enforceability of, any other provision of this Agreement; provided, however, that, upon any finding by a court of competent jurisdiction that the release and covenants provided for by Section 5 above is illegal, void, or unenforceable, Executive agrees to execute a release, waiver and/or covenant that is legal and enforceable.  Finally, any breach of the terms of Sections 6, 7 and/or 8 above shall constitute a material breach of this Agreement as to which the Company may seek appropriate relief in a court of competent jurisdiction.
 
14.               This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Florida, without regard to the conflict of laws provisions thereof.  Actions to enforce the terms of this Agreement, or that relate to Executive's employment with the Company shall be submitted to the exclusive jurisdiction of any state or federal court sitting in the County of Orange, State of Florida.
 
15.               This Agreement may be executed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument of this Agreement.
 
16.              This Agreement (including any exhibits attached hereto) constitutes the complete understanding between the parties with respect to the termination of Executive's employment at the Company and supersedes any and all agreements, understandings, and discussions, whether written or oral, between the parties.  No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by each of the parties hereto.
 
[Signature page follows]
[Signature page to Agreement and Release]
Dated:
May 27, 2014
/s/ James L. Williams
JAMES L. WILLIAMS
THE LGL GROUP, INC.
Dated:
May 27, 2014
By:
/s/ R. LaDuane Clifton
Name:
R. LADUANE CLIFTON
Title:
CHIEF FINANCIAL OFFICER