The severance pay also includes the accelerated vesting of all stock options and restricted stock units granted to Mansson, with such options to remain exercisable for the remainder of their 10-year term. The value was not disclosed.

A company spokeswoman declined to answer any questions regarding Mansson's package, saying the Securities and Exchange filing spoke for itself.

The filing said Mansson was entitled to the payout under terms of the pre-existing employment agreement he signed in 2005.

Mansson abruptly resigned Friday, a day after shareholders rejected a proposal to sell the company to two private equity firms. Had the deal gone through, Mansson stood to receive a payout of more than $10 million.

However, if the company is sold within nine months after his resignation, the securities filing says Mansson would receive an additional $1.96 million in salary and bonus, continued life and health insurance through May 9, 2010, and an additional $15,000 for outplacement services.

The company also announced Thursday that interim CEO Howard Gross, 62, would receive a monthly salary of $85,000. His monthly pay will increase to $110,000 if he stays longer than six months.

The company's stock closed Thursday at $9.03 on the Nasdaq Stock Market. When the company emerged from bankruptcy on June 21, 2005, the company's stock closed at $27.50.