Exhibit 10.1
NEGOTIATED SEPARATION AGREEMENT
AND GENERAL RELEASE
This Negotiated Separation Agreement and General Release ("AGREEMENT") is
made this 31/st/ day of May, 2001, by and between eBT International, Inc. ("eBT"
or the "Company") and Xxxxx Xxxxxxxx, residing at ________________________ (the
"Employee"). In consideration for the mutual promises set forth below, the
parties agree as follows:
1. The Employee hereby irrevocably resigns effective May 30, 2001 (the
"Termination Date") as an employee and officer of the Company and from any other
position that that the Employee may hold with the Company.
2. The Employee acknowledges that on or about the date this AGREEMENT was
executed, a representative of the Company informed him of what he had a right to
receive upon the termination of his employment and explained to him that, if he
remains actively employed in good standing by the Company until the Termination
Date, signs this AGREEMENT, and complies with its terms, the Company, after the
Effective Date (as defined Paragraph 9) and as separation benefits, will give
him the following:
(i) an amount (the "Severance Payment") equal to TWO HUNDRED TWENTY
THOUSAND AND 00/100 ($220,000.00) DOLLARS (subject to any applicable
payroll deductions and/or withholding) (the "Maximum Severance Payment").
The Severance Payment shall be paid to the Employee in installments
commencing on June 15, 2001 and thereafter paid on each alternating Friday
within the Severance Period. For purposes of this AGREEMENT, the
"Severance Period" shall be the period commencing on the Effective Date and
ending on December 31, 2001. The amount of each Severance Payment
installment shall be the same as the Employee's regular, bi-weekly base
salary installments paid prior to the Termination Date, provided however,
that the final installment of the Severance Payment shall be in an amount
(subject to any applicable payroll deductions and/or withholding) equal to
the difference to between the Maximum Severance Payment and the amounts
paid under this Paragraph 2(i) prior to such final installment.
(ii) continued coverage during the Severance Period under each of the
Company's insured group life, disability, dental, accident and health plans
in which the Employee participated as of the Termination Date, subject to
and in accordance with the terms of each such plan, provided that the
Employee continues to pay a portion of the insurance premiums and other
costs associated with such coverage equal to the portion paid by the
Employee as an active employee of the Company, and provided further that
if, during the Severance Period the Employee accepts employment (including
self-employment) with, or engagement as a contractor, consultant, joint
venturer or other service provider by, any entity, then such continued
coverage shall thereupon cease subject only to the
Employee's rights, if any, to continue coverage pursuant to COBRA (as
hereinafter defined) or comparable state law. Without limiting the
foregoing, nothing in this AGREEMENT shall constitute a promise to provide
coverage that is not expressly authorized under the terms of the applicable
plan documents, or in any way restrict the rights of the Company to amend,
modify or terminate any or all of its employee benefit plans. For purposes
of the healthcare coverage continuation provisions of the Consolidated
Omnibus Budget Reconciliation Act of 1985 ("COBRA"), the Employee's
"qualifying event" shall be his employment loss on the Termination Date and
any coverage continuation provided under this Paragraph 2 shall be
considered as part of the Employee's continuation period under COBRA.
(iii) if the Employee has not accepted employment with, or engagement by,
any entity on or before December 31, 2001, and the Employee timely elects
to continue his coverage under the Company's group health plan pursuant to
COBRA, then the Company shall pay to the Employee, in installments or, at
the Company's election, in a lump sum, an amount equal to a portion of the
Employee's COBRA premium for the Extended Period (as hereinafter defined),
which portion shall be the same pro rata share of the premium paid by the
Company for the Employee's coverage under such plan as an active employee.
For purposes of this AGREEMENT, the Extended Period shall be the period
commencing on January 1, 2002 and ending on May 30, 2002.
(iv) each written option to acquire stock of the Company (an "Option
Agreement") granted to the Employee pursuant to a written stock option plan
adopted by the Company's Board of Directors shall, notwithstanding any
provisions of the grant or agreement pertaining to such option, be deemed
fully vested as of the Effective Date and may be exercised by the Employee
on or between the Effective Date and December 31, 2001, provided however
that any option that is intended to qualify as an incentive stock option
within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended, must be exercised within ninety (90) days after the Termination
Date.
(v) the restrictions on transfer or disposition of any share of Company
stock issued to the Employee imposed by a written agreement between the
Company and the Employee (a "Restricted Stock Agreement") shall be waived
by the Company, provided however, that the Company shall have the option to
purchase all, but not less than all, such shares at any time on or prior to
July 31, 2001 at the fair market value of such shares as at the date of
such purchase by the Company. For purposes of this Paragraph 2(v), the fair
market value of the restricted shares shall be the average closing price
reported with respect to the shares for the ten (10) trading days
immediately preceding the date on which the option is exercised.
(vi) a lump sum payment of TEN THOUSAND AND 00/100 ($10,000.00) DOLLARS
(subject to applicable withholding and deductions) to be used to obtain
outplacement services or for such other purposes as the Employee may elect,
which amount shall be paid within sixty (60) days after the Termination
Date.
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All payments (including, without limitation, the Severance Payment) to be made
to the Employee and benefits to be made available to the Employee in accordance
with the terms of this AGREEMENT, and the performance by the Company of its
other obligations hereunder, shall be conditioned on the Employee's continued
compliance with the covenants set forth in this AGREEMENT.
3. This AGREEMENT shall inure to the benefit of and be binding upon the
Company and the Employee, and their respective successors, executors,
administrators, heirs and permitted assigns.
4. In consideration of the promise of the Company as set forth in Paragraph 2,
the Employee hereby, on behalf of himself, his executors, heirs, administrators,
assigns and anyone else claiming by, through or under him, waives, releases,
covenants not to xxx and forever discharges the Company, its predecessors,
successors, related corporations, parents, subsidiaries, divisions, employee
benefit plans and affiliated organizations, and their respective present and
former trustees, officers, directors, representatives, agents, shareholders,
employees and attorneys (hereinafter "Releasees"), and each and all of them of,
from and with respect to any and all debts, demands, actions, causes of action,
suits, covenants, contracts, agreements, promises, torts, damages, claims,
demands and liabilities whatsoever of any name and nature, both in law and in
equity (hereinafter "Claims") which he now has, ever had, or may have against
each or any of the Releasees by reason of any matter, cause or thing whatsoever
from the beginning of the world to the Effective Date of this AGREEMENT (as
defined in Paragraph 9), including, but not limited to, any Claims arising out
of, based upon or connected with his employment by the Company, the compensation
and working conditions for that employment and/or the termination of that
employment and any Claims that may exist under federal, state or local laws,
including, but not limited to, any Claims based on race, disability, color,
national origin, marital status, age or sex. The foregoing waiver and release
includes, without limitation, a waiver and release of any rights and Claims that
the Employee may have under Title VII of the Civil Rights Act of 1964; the
Americans with Disabilities Act; the Employee Retirement Income Security Act of
1974 ("ERISA"); the Worker Adjustment and Retraining Notification Act; and the
Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. 621 et seq.
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(the "ADEA"), except that this AGREEMENT does not waive or release any rights or
claims (i) under the ADEA that may arise after the signing of this AGREEMENT,
(ii) for indemnification, to the extent provided under the terms of the
Company's by-laws or any written indemnification agreement between the Employee
and the Company, with respect to actions taken by the Employee in his capacity
as an employee and/or officer of the Company, (iii) to employee benefits to
which the Employee is entitled pursuant to Paragraph 2 and/or under the terms of
any employee pension benefit plan within the meaning of section 3(2) of ERISA
maintained by the Company, or (iv) to enforce the terms of this AGREEMENT.
5. The Employee declares that he has not filed or caused to be filed any
complaints, charges or claims against any of the Releasees with any local, state
or federal court or
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administrative agency which are currently outstanding. If he has done so,
however, he will cause all such complaints, charges or claims to be dismissed
with prejudice before the Effective Date of this AGREEMENT, as defined in
Paragraph 9. The Employee further agrees and covenants that he will not file or
cause to be filed any complaints, charges or claims against any of the Releasees
concerning or arising out of events occurring prior to the Effective Date of
this AGREEMENT. If the Employee violates any provision of this AGREEMENT
including, without limitation, the provisions of this Paragraph 5, all money
paid and the value of all other benefits provided pursuant to Paragraph 2
(including, without limitation, all gain realized upon the disposition of any
stock acquired in connection with Paragraph 2(iv) or 2(v)) will be repaid to the
Company upon demand, and the Company shall have the right, if it so elects
within sixty (60) days after the Company acquires actual knowledge of such
violation, to purchase all Company stock, or any portion thereof, held by the
Employee at the stock's fair market value (determined in accordance with
Paragraph 2(v)) as at the date of such purchase by the Company or, if less, the
price paid by the Employee for the shares.
6. The Employee will not disclose any of the terms and conditions of this
AGREEMENT to any person other than his attorney, tax advisor or spouse except as
may be required by compulsory process of law. If the Employee violates this
Paragraph, all money paid pursuant to paragraph 2 will be repaid to the Company
upon demand. Without limiting the Company's rights, the Company may disclose
the terms and conditions of this AGREEMENT if and to the extent such disclosure
is deemed necessary or appropriate by the Company's Board of Directors,
including without limitation, such disclosure as may be necessary or appropriate
in connection with any proxy statement prepared by or on behalf of the Company.
7. In further consideration of the promise of the Company as set forth in
Paragraph 2, the Employee agrees to (i) cooperate fully with the Company in each
and every investigation, arbitration, litigation or other proceeding conducted
by the Company or to which the Company is a party, which is initiated or
conducted, in whole or in part, at any time between the Effective Date and
December 31, 2003, if and to the extent requested to do so by the Company,
including without limitation, participation in any such proceeding as a witness,
(ii) be available to provide information and otherwise assist in the preparation
of any proxy statement prepared by or on behalf of the Company, and (iii) be
available to provide information and otherwise assist in connection with the
Company's liquidation, dissolution and winding down. The Company shall reimburse
the Employee for reasonable and necessary expenses incurred by the Employee in
connection with this Paragraph 7, provided such expenses are approved by the
Company, which approval shall not be withheld unreasonably. If the services
required under this Paragraph 7 are substantial and rendered after May 30, 2002,
then the parties shall negotiate a reasonable consulting fee for such services
provided after such date.
8. The Employee acknowledges that he has been given a full and fair
opportunity to consider this AGREEMENT. The Employee is hereby advised to
consult with an attorney before signing this AGREEMENT.
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9. From the date that he receives this AGREEMENT, the Employee has twenty-one
(21) days to consider it. Should he decide to sign the AGREEMENT, he has seven
(7) days following the signing to revoke the AGREEMENT, and the AGREEMENT will
not become effective and enforceable until that seven (7) day period has expired
without revocation (the "Effective Date"). Should the Employee either decide not
to sign this AGREEMENT or should he sign it and elect to revoke it during the
seven (7) day revocation period, then this AGREEMENT shall be null and void.
10. This AGREEMENT is the entire AGREEMENT between the Company and the Employee
and may only be modified in a writing signed by the parties. This AGREEMENT will
be governed by the laws of the State of Delaware. This AGREEMENT supercedes all
prior agreements and understandings between the parties including without
limitation each and every employment agreement, excepting only those provisions,
if any, of (i) any prior agreements restricting the Employee's ability to
disclose proprietary information of the Company, (ii) except as otherwise
provided herein, any Option Agreement or Restricted Stock Agreement, and (iii)
any indemnification agreement described in Paragraph 4.
11. If any provision of this AGREEMENT is ruled to be unenforceable or invalid
by a court of competent jurisdiction, then the remainder of this AGREEMENT will
remain in full force and effect, provided however that if the Employee or anyone
acting on behalf or for the benefit of the Employee, directly or indirectly,
seeks to invalidate or render unenforceable any provision of this AGREEMENT, and
any such provision is consequently ruled to be unenforceable or invalid by a
court of competent jurisdiction, then, at the Company's election, the AGREEMENT
shall be deemed null and void and all money and things of value provided to the
Employee under this AGREEMENT shall be returned immediately to the Company.
12. The Employee states that he has read and understands this AGREEMENT, that
he is accepting its terms and that he is executing it knowingly, voluntarily,
without coercion and as his own free act and deed.
eBT International, Inc.
By /s/ Xxxxxxx X. Xxxxxx
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Xxxxxxx X. Xxxxxx
Its Chairman
/s/ Xxxxx Xxxxxxxx
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Xxxxx Xxxxxxxx
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