SEVERANCE AND RELEASE AGREEMENT
Exhibit 10.18
SEVERANCE AND RELEASE AGREEMENT
This Severance and Release Agreement (“Agreement”) is entered into by and between Pendrell Corporation and any subsidiaries and affiliates (“Pendrell” or “Company”) and Xxxxxx X. Xxxxx (“Employee”) (collectively “Parties”) to set forth the terms and conditions of Employee’s separation from Pendrell effective April 18, 2014. As contemplated by Employee’s employment letter dated June 7, 2012 and in exchange for the benefits described in said employment letter, Employee agrees to execute this Agreement which includes a full release of all known and unknown claims.
NOW THEREFORE, in exchange for the mutual consideration described herein, the sufficiency of which is hereby acknowledged, the parties agree as follows:
1. Termination of Employment. Employee’s last date of active employment with Pendrell shall be Friday, April 18, 2014 (Termination Date). Employee shall not be eligible to accrue any additional paid time off benefits or be eligible for any compensation after Termination Date, other than what is provided for in Paragraph 4.
2 Acknowledgement of Full Payment of Compensation to Date. Employee acknowledges and agrees that, with the exception of the payments described herein, Pendrell has paid all compensation that it owes to date, including but not limited to base salary, commission, incentive compensation, and any other payments that may have been agreed-upon either orally or in writing. Pendrell also agrees to reimburse all outstanding expenses incurred by Employee prior to the Termination Date, based on approvals from Employee’s manager and standard Pendrell policies.
3. Income Taxes and Authorized Deductions. All payments made as a result of this Agreement are considered wages and are subject to required income tax and other withholding and authorized deductions. The amounts are stated as gross amounts.
4. Severance Benefits. As consideration for the release and promises described in this Agreement, Pendrell agrees to provide the following benefits to Employee.
x. Xxxxxxxxx Pay through Lump Sum Payment. Pendrell agrees to pay Employee on the first available payroll date following the Effective Date cash severance benefits in the total amount of $350,000, through Pendrell’s regularly scheduled payroll.
b. Payment of Accrued PTO. Pendrell agrees to pay Employee for accrued but unused vacation benefits that may exist as of Termination Date. As of Termination Date, Employee shall cease to accrue or be eligible for additional PTO benefits.
5. Stock Equity Provisions. Employee will cease to vest in any incentive stock options or related equity incentive programs as of the Termination Date and, to the extent applicable, any vested and unexercised options shall be subject to the terms and procedures contained in any applicable stock option agreement(s) and stock option plan, copies of which will be available to Employee upon request.
6. Unemployment Compensation. While Pendrell cannot control the decision reached by the State’s Employment Security Department on any application for unemployment compensation benefits, Pendrell agrees to respond to any inquiries by confirming that Employee was released and will not contest or decline benefits eligibility.
| Xxxxxx X Xxxxx Xxxxxxxxx Agreement | 1 of 6 |
7. Compliance with Employee Intellectual Property Agreement. Employee agrees to comply with all post-employment obligations under the Employee Intellectual Property Agreement between Employee and Pendrell.
8. Agreement Not to Solicit. Employee agrees that, prior to Termination Date and for a period of one (1) year following, Employee shall not directly or indirectly solicit, recruit or entice any of the following to cease, terminate or reduce any relationship with Pendrell or to divert any business from Pendrell: (a) any person who was an employee or consultant of Pendrell during the twelve (12) months preceding Termination Date; (b) any contractor or supplier of Pendrell; (c) any customer, client or business partner of Pendrell; or (d) any prospective customer, client, or business partner of Pendrell from whom Employee is aware Pendrell actively solicited business or pursued a business relationship within the twelve (12) months preceding Termination Date. Further, Employee agrees not to directly or indirectly disclose the names, addresses, telephone numbers, compensation or other arrangements between Pendrell and any person or entity described herein.
Employee further agrees and recognizes that Employee has permanently and irrevocably severed the employment relationship with the Company, effective as of the date hereof, and that the Company has no obligation to employ Employee in the future.
9. Return of Company Property. Employee confirms that they will return to Pendrell, no later than the Termination Date all computers, files, memoranda, records, credit cards, computer files, passwords and passkeys, Card Keys, or related physical or electronic access devices, and any and all other property received from Pendrell or any of its current or former employees or generated by Pendrell in the course of employment.
10. Complete Release of All Known and Unknown Claims. In consideration of the payments due Employee under this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Employee, intending to be legally bound, does hereby, on behalf of himself and his agents, representatives, attorneys, assigns, heirs, executors and administrators (collectively, the “Employee Parties”) RELEASE AND FOREVER DISCHARGE the Company, its affiliates, subsidiaries, and its and their officers, directors, shareholders, members, and managers, and its and their respective successors and assigns, heirs, executors, and administrators (collectively, the “Company Parties”) from all causes of action, suits, debts, claims and demands whatsoever in law or in equity, which Employee or any of the Employee Parties ever had, now has, or hereafter may have, by reason of any matter, cause or thing whatsoever, from the beginning of Employee’s initial dealings with the Company to the date of this Agreement, and particularly, but without limitation of the foregoing general terms, any claims arising from or relating in any way to Employee’s employment relationship with Company, the terms and conditions of that employment relationship, and the termination of that employment relationship, including, but not limited to, any claims arising under the Age Discrimination in Employment Act, as amended, 29 U.S.C. § 621 et seq. (“ADEA”), Title VII of The Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e et seq., the Civil Rights Act of 1966, 42 U.S.C. §1981, the Civil Rights Act of 1991, Pub. L. No. 102-166, the Americans with Disabilities Act, 42 U.S.C. §12101 et seq., the Age Discrimination in Employment Act, as amended, 29 U.S.C. §621 et seq., the Fair Labor Standards Act, 29 U.S.C. §201 et seq., the National Labor Relations Act, 29 U.S.C. §151 et seq., and any other claims under any federal, state or local common law, statutory, or regulatory provision, now or hereafter recognized, but not including such claims to payments and other rights provided Employee under the Agreement.
This Agreement is effective without regard to the legal nature of the claims raised and without regard to whether any such claims are based upon tort, equity, implied or express contract or discrimination of any sort. Except as specifically provided under this Agreement, it is expressly understood and agreed that this
| Xxxxxx X Xxxxx Severance Agreement | 2 of 6 |
Agreement shall operate as a clear and unequivocal waiver by Employee of any claim for accrued or unpaid wages, benefits or any other type of payment. Notwithstanding the foregoing, Employee shall not be deemed to have released any claims for indemnity or contribution or claims for or in respect of (i) accrued but unpaid obligations of the Company under this Agreement, (ii) vested benefits under any Company employee benefit plan, (iii) equity-based compensation (except as provided under Section 5 of this Agreement) or (iv) coverage under any Directors and Officers insurance policies maintained by the Company or its subsidiaries, in each case, in respect of claims asserted against Employee in his/her capacity as an employee or officer of the Company.
11. No Claims. Employee expressly waives all rights afforded by any statute which limits the effect of a release with respect to unknown claims. Employee understands the significance of their release of unknown claims and their waiver of statutory protection against a release of unknown claims.
Employee agrees that Employee will not be entitled to or accept any benefit from any claim or proceeding within the scope of this Agreement that is filed or instigated by Employee or on Employee’s behalf with any agency, court or other government entity.
Employee agrees and acknowledges that Employee is waiving all rights to xxx or obtain equitable, remedial or punitive relief from any or all Company Parties of any kind whatsoever, including, without limitation, reinstatement, back pay, front pay, attorneys’ fees and any form of injunctive relief. Notwithstanding the above, Employee further acknowledges that Employee is not waiving and is not being required to waive any right that cannot be waived under law, including the right to file an administrative charge or to participate in an administrative investigation or proceeding; provided, however, that Employee disclaims and waives any right to share or participate in any monetary award resulting from the prosecution of such charge or investigation or proceeding.
Employee agrees and acknowledges that at no time prior to or contemporaneous with Employee’s execution of this Agreement has Employee filed or caused or knowingly permitted the filing or maintenance, in any state, federal or foreign court, or before any local, state, federal or foreign administrative agency or other tribunal, any charge, claim or action of any kind, nature and character whatsoever (“Claim”) against the Company Parties which is based in whole or in part on any matter referred to in Section 10 above; and, subject to the Company’s performance under this Agreement, to the maximum extent permitted by law, Employee is prohibited from filing or maintaining, or causing or knowingly permitting the filing or maintaining, of any such Claim in any such forum. Employee hereby grants the Company Employee’s perpetual and irrevocable power of attorney with full right, power and authority to take all actions necessary to dismiss or discharge any such Claim. Employee further covenants and agrees that Employee will not encourage any person or entity, including but not limited to any current or former employee, officer, director or stockholder of the Company, to institute any Claim against the Company Parties or any of them, and that except as expressly permitted by law or administrative policy or as required by legally enforceable order Employee will not aid or assist any such person or entity in prosecuting such Claim.
12. Voluntary Agreement; Full Understanding; Advice of Counsel. Employee agrees and acknowledges that Employee has read the terms of this Agreement, and that Employee understands its terms and effects, including the fact that Employee has agreed to RELEASE AND FOREVER DISCHARGE the Company and all Company Parties from any legal action or other liability of any type related in any way to the matters released pursuant to this Agreement other than as provided in the Agreement and in this Agreement.
Employee agrees and acknowledges that Employee understands the significance of Employee’s release of unknown claims and Employee’s waiver of statutory protection against a release of unknown claims.
| Xxxxxx X Xxxxx Severance Agreement | 3 of 6 |
Employee agrees and acknowledges that Employee has signed this Agreement voluntarily and knowingly in exchange for the consideration described herein, which Employee acknowledges is adequate and satisfactory to Employee.
Employee agrees and acknowledges that Employee has been and is hereby advised in writing to consult with an attorney prior to signing this Agreement.
Employee agrees and acknowledges that Employee does not waive rights or claims that may arise after the date this Agreement is executed or those claims arising under the Agreement with respect to payments and other rights due Employee on the date of, or during the period following, the termination of Employee’s Employment.
13. Consideration Period/Revocation/Effective Date. Employee acknowledges having been given twenty-one (21) days in which to consider this Agreement and the option to sign it sooner if desired. Any negotiations surrounding the language or terms of this Agreement shall not re-start the consideration period. Employee also acknowledges that Employee may revoke this Agreement within seven (7) days of signing it, by delivering a signed written letter of revocation to the Corporate Counsel at Pendrell. This Agreement will not be effective until Pendrell receives an original signed Agreement by Employee and the seven-day revocation period has expired (“Effective Date”).
14. No Disparagement or Interference. Employee agrees not to (a) make any false, misleading, or disparaging representations or statements about Pendrell, its services, or its employees, officers and directors, or (b) make any statements that may impair or otherwise adversely affect Pendrell’s goodwill or reputation with its present or prospective employees, customers, or business partners or with any other third parties, or (c) interfere with Pendrell’s relationships or potential relationships with actual or potential customers, partners, employees, or others and agrees to cooperate with Pendrell in any litigation or other legal proceedings brought by or against Pendrell that relates to the period of Employee’s employment, including but not limited to, testifying on Pendrell’s behalf in any legal proceedings.
15. No Admission of Liability. The parties agree and acknowledge that this Agreement, and the settlement and termination of any asserted or unasserted claims against the Company and the Company Parties pursuant to this Agreement, are not and shall not be construed to be an admission of any violation of any federal, state or local statute or regulation, or of any duty owed by the Company or any of the Company Parties to Employee.
16. Miscellaneous.
(a) This Agreement and the Agreement, and any other documents expressly referenced therein, constitute the complete and entire agreement and understanding of Employee and the Company with respect to the subject matter hereof, and supersedes in its entirety any and all prior understandings, commitments, obligations and/or agreements, whether written or oral, with respect thereto; it being understood and agreed that this Agreement and including the mutual covenants, agreements, acknowledgments and affirmations contained herein, is intended to constitute a complete settlement and resolution of all matters set forth in Section 10 hereof.
(b) The Company Parties are intended third-party beneficiaries of this Agreement, and this Agreement may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to such Company Parties hereunder. Except and to the extent set forth in the preceding two sentences, this Agreement is not intended for the benefit of any Person other than the parties hereto, and no such other person or entity shall be deemed to be a third party beneficiary hereof. Without limiting the generality of the
| Xxxxxx X Xxxxx Xxxxxxxxx Agreement | 4 of 6 |
foregoing, it is not the intention of the Company to establish any policy, procedure, course of dealing or plan of general application for the benefit of or otherwise in respect of any other employee, officer, director or stockholder, irrespective of any similarity between any contract, agreement, commitment or understanding between the Company and such other employee, officer, director or stockholder, on the one hand, and any contract, agreement, commitment or understanding between the Company and Employee, on the other hand, and irrespective of any similarity in facts or circumstances involving such other employee, officer, director or stockholder, on the one hand, and Employee, on the other hand.
(c) The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall otherwise remain in full force and effect.
(d) This Agreement may be executed in separate counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.
(e) The obligations of each of the Company and Employee hereunder shall be binding upon their respective successors and assigns. The rights of each of the Company and Employee and the rights of the Company Parties shall inure to the benefit of, and be enforceable by, any of the Company’s, Employee’s and the Company Parties’ respective successors and assigns. The Company may assign all rights and obligations of this Agreement to any successor in interest to the assets of the Company.
(f) No amendment to or waiver of this Agreement or any of its terms shall be binding upon any party hereto unless consented to in writing by such party.
(g) ALL ISSUES AND QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF WASHINGTON, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF WASHINGTON OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF WASHINGTON.
* * * * *
Intending to be legally bound hereby, Employee and the Company have executed this Agreement as of the date first written above.
| /s/ Xxxxxxxx X. Xxxxx |
| Name: Xxxxxxxx X. Xxxxx |
| Title: President and CEO |
| Xxxxxx X Xxxxx Severance Agreement | 5 of 6 |
READ CAREFULLY BEFORE SIGNING
I have read this Agreement and have been given adequate opportunity, including 21 days from my initial receipt of this Agreement, to review this Agreement and to consult legal counsel prior to my signing of this Agreement. I understand that by executing this Agreement I will relinquish certain rights or demands I may have against the Company Parties or any of them.
| /s/ Xxxxxx X. Xxxxx |
| Xxxxxx X. Xxxxx |
| Date: March 10, 2014 |
| Xxxxxx X Xxxxx Severance Agreement | 6 of 6 |
