Exhibit 10.1


 


TERMINATION AGREEMENT AND GENERAL RELEASE


 


THIS
TERMINATION AGREEMENT AND GENERAL RELEASE (the “Agreement”) is executed
on this 26th day of August, 2003 by and between INVESTools, Inc., a
Delaware corporation (the “Company”) and Scott Elder (“Employee”).


 


WHEREAS, the
Company and Employee have entered into that certain Amended and Restated
Employment Agreement effective as of August 30, 2002 (the “Employment
Agreement”); and


 


WHEREAS,
Employee and the Company mutually desire to terminate their relationship on an
amicable basis; and


 


WHEREAS, to
accommodate this request, the Company and Employee now desire to terminate the
Employment Agreement in order that each of them can be released and forever
discharged from further performance thereunder.


 


NOW,
THEREFORE, in consideration of the foregoing premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:


 


1.                                       Termination
of Employment Agreement.  Except as
otherwise provided herein, the Company and Employee each hereby agree that the
Employment Agreement shall be terminated as of the date hereof and neither
shall thereafter have any liabilities, rights, duties or obligations to the
other party under or in connection with the Employment Agreement, including
with respect to any provisions of such Employment Agreement which purport to
survive such termination.  In connection
therewith, the Company and Employee hereby waive any rights to prior
notification of termination of the Employment Agreement as set forth in the
Employment Agreement or otherwise.  The
parties acknowledge and agree that, as of the date hereof, the Employment
Agreement shall be null and void and of no further force or effect.


 


2.                                       Resignation
of Offices.  Employee hereby resigns
from all positions he may hold as an officer, director or manager of the
Company and any subsidiaries of the Company.


 


3.                                       Severance
Benefits.


 


a.                                       Employee
has been offered and agrees to accept from the Company severance pay equal to
the total gross amount of $270,850, of which (i) $50,000 (representing the
quarterly bonus payments referenced in the Employment Agreement) and (ii)
$2,100 (representing unpaid club membership payments referenced in the
Employment Agreement) shall be payable on the date hereof, and the remaining
$218,750 less withholdings, representing 10.5 months salary, shall be paid in
accordance with the Company’s regular payroll schedule beginning August 1,
2003.  Employee understands and agrees
that this severance pay is not otherwise due Employee.


 

















 


b.                                      Employee
will be given COBRA notification regarding insurance benefits provided to
employees of the Company.  The Company
will be responsible for the COBRA continuation coverage premium until June 15,
2004.


 


c.                                       From
September 1, 2003 until June 15, 2004, the Company shall pay Employee  $300 per month for social or country club
membership dues.


 


d.                                      All
stock options granted to Employee by the Company shall lapse on the date
hereof; provided, however, that
the Company shall pay to Employee, in immediately available funds, an amount
equal to the difference between (i) the exercise price of the stock options
granted to Employee by the Company which have vested and are in-the-money as of
the date hereof and (ii) the closing bid price per share of the Company’s
common stock on the date hereof, multiplied by the number of shares of such
vested stock options.


 


e.                                       From
the date hereof until June 15, 2004 (the “Severance Period”), Employee
shall have access to the InvestorToolbox website without payment.


 


f.                                         The
Company hereby agrees to sell for $1.00, and Employee hereby agrees to purchase
for $1.00, certain of the furniture and equipment, including certain video
backdrops and sets, of the Company pursuant to a Bill of Sale mutually
satisfactory to the parties thereto.


 


4.                                       Right
of First Refusal.  From the date
hereof until the earlier of (i) June 15, 2004 or (ii) a Change of Control (as
defined below), if Employee desires to sell more than 10,000 shares of Company
common stock in any one month, Employee shall irrevocably offer (in a written
instrument delivered to the Company) to sell such shares of his Company common
stock registered in Employee’s name to the Company for the price and on the
terms specified on Exhibit A attached hereto.  The Company shall accept such offer within 24 hours of the actual
receipt of such offer and consummate such transaction within 3 business days
after acceptance of such offer.  If the
Company does not so elect to purchase all, or any portion, of such shares of
stock, the right to purchase such stock pursuant to such offer shall terminate
and Employee may sell such shares in the open market.  Any sale pursuant to this Section 4 shall take place at
the principal corporate office of the Company. 
At the closing of such sale, Employee shall assign and deliver the
certificates representing such stock (duly endorsed for transfer and free of
any liens or encumbrances whatsoever) to the Company, and the Company shall
deliver to Employee in certified funds the full consideration therefor as
specified hereunder.  Any stock transfer
or similar taxes involved in such sale shall be paid by Employee, and Employee
shall provide the Company with such evidence of the Employee’s authority to
sell hereunder and such tax lien waivers and similar instruments as the Company
may reasonably request.  Notwithstanding
anything to the contrary herein, the Company’s right of first refusal set forth
in this Section 4 shall not apply to gifts or charitable donations of Employee’s
shares of Company common stock.  During
the period set forth in this Section 4, Employee agrees to provide
notice to the Company of a sale by Employee of 10,000 shares or less of Company
common stock within three business days of such sale.


 


For the
purposes of this Section 4, “Change of Control” means the
happening of any of the following events:


 


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(i)                                     The acquisition by any individual, entity
or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”),
of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of 50% or more of either (A) the then outstanding
shares of common stock of the Company or (B) the combined voting power of
the then outstanding voting securities of the Company entitled to vote
generally in the election of directors; provided, however, that the following
acquisitions shall not constitute a Change of Control under this subsection
(i): (x) any acquisition directly from the Company (excluding an
acquisition by virtue of the exercise of a conversion privilege), (y) any
acquisition by the Company, or (z) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company; or


 


(ii)                                  Individuals who, as of the effective date
hereof, constitute the Board of Directors (the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Board; provided,
however, that any individual becoming a director subsequent to the effective
date hereof whose election, or nomination for election by the Company’s
stockholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of either an actual or threatened election contest (as such terms are
used in Rule 14a-11 of Regulation 14A promulgated under the Exchange
Act) or other actual or threatened solicitation of proxies or consents by or on
behalf of a Person other than the Board; or


 


(iii)                               Approval by the stockholders of the
Company of a complete liquidation or dissolution of the Company or the sale or
other disposition of all or substantially all of the assets of the Company.


 


5.                                       Release
by Employee.  In consideration for
the Company’s payment of the severance pay and the Company’s payments of the
COBRA continuation coverage premium on behalf of Employee, Employee voluntarily
and knowingly waives, releases, and discharges the Company, its parent,
predecessors, successors, subsidiaries, affiliates, employees, officers,
directors, owners, agents and assigns from all claims, liabilities, demands,
and causes of action, known or unknown, fixed or contingent, which Employee may
have or claim to have against any of them as a result of Employee’s employment
and/or termination from employment and/or as a result of any other matter
arising through the date of Employee’s signature on this Agreement.  Employee agrees not to file a lawsuit to
assert any such claims or to seek damages through an administrative claim for
any such claims.  This waiver, release and discharge includes,
but is not limited to: (1) claims arising under federal, state, or local laws
regarding employment or prohibiting employment discrimination such as, without
limitation, Title VII of the Civil Rights Act of 1964, the Equal Pay Act, the
Age Discrimination in Employment Act, the Older Workers’ Benefit Protection
Act, the National Labor Relations Act, Section 1981 of the Civil Rights Act of
1866, the Americans with Disabilities Act, the Fair Labor Standards Act, the
Family and Medical Leave Act, Utah Antidiscrimination Act; (2) claims for
breach of contract, including the 


 


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Employment
Agreement; (3) claims for personal injury, harm, or other damages (whether
intentional or unintentional including, without limitation, negligence,
defamation, misrepresentation, fraud, intentional infliction of emotional
distress, assault, battery, invasion of privacy, and other such claims); (4)
claims growing out of any legal restrictions on the Company’s right to
terminate its employees; (5) claims for wages or any other compensation; or (6)
claims for benefits including, without limitation, those arising under the
Employee Retirement Income Security Act.


 


6.                                       Release
by the Company.  In consideration for Employee’s promises
herein, the Company, its parent, predecessors, successors, subsidiaries,
affiliates, employees, officers, directors, owners, agents and assigns voluntarily and knowingly waive, release,
and discharge the Employee, its agents, representatives, heirs, and assigns
from all claims, liabilities, demands, and causes of action, known or unknown,
fixed or contingent, which the Company may have or claim to have against
Employee as a result of the Company’s employment of Employee and/or as a result
of any other matter arising through the date of the Company’s signature on this
Agreement.  The Company agrees not to
file a lawsuit or an administrative claim to assert any such released
claims.  This waiver, release and
discharge includes, but is not limited to: (1) claims arising under federal,
state, or local laws regarding employment or termination of employment, (2)
claims for breach of contract, and (3) claims for personal injury, harm, or
other damages (whether intentional or unintentional including, without
limitation, negligence, defamation, misrepresentation, fraud, tortious
interference with contracts or business relationships, intentional infliction
of emotional distress, assault, battery, invasion of privacy, and other such
claims).  Notwithstanding anything to
the contrary in this Section 6, this Section 6 shall not apply to any claims, liabilities, demands, and causes of
action, known or unknown, fixed or contingent, which the Company may
have or claim to have against Employee as a result of Employee’s breach of his
obligations under this Agreement.


 


7.                                       Confidential
Information.


 


a.                                       Employee
acknowledges that the Company’s business is highly competitive and that the
Company’s books, records and documents, technical information concerning its
products, equipment, services and processes, procurement procedures and pricing
techniques and the names of and other information (e.g., credit and financial
data) concerning the Company’s customers and business associates all comprise
confidential business information and trade secrets of the Company
(collectively, “Confidential Information”) which are valuable,
special, and unique assets of the Company which the Company uses in its
business to obtain a competitive advantage over the Company’s competitors which
do not know or use this information. Employee further acknowledges that he has
had access to such Confidential Information and that protection of the
Confidential Information against unauthorized disclosure and use is of critical
importance to the Company in maintaining its competitive position. Accordingly,
Employee hereby agrees that in further consideration for the severance pay
disclosed above, he will not, at any time, make any unauthorized disclosure of
any Confidential Information or make any use thereof, except for the benefit
of, and on behalf of, the Company. For the purposes of this Section 7,
the term “Company” shall also include affiliates of the Company.


 


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b.                                      Employee
acknowledges that, as a result of his employment by the Company, he has had
access to, or knowledge of, confidential business information or trade secrets
of third parties, such as customers, suppliers, partners, joint venturers, and
the like, of the Company. Employee agrees to preserve and protect the
confidentiality of such third-party confidential information and trade secrets
to the same extent, and on the same basis, as the Confidential Information.


 


c.                                       All
written materials, records and other documents that were made by, or came into
the possession of, Employee during the period of his employment by the Company
which contain or disclose the Confidential Information are and remain the
property of the Company.  Employee
agrees that he will immediately return to the Company the same, and all copies,
derivatives and extracts thereof.


 


None of the
foregoing in this Section 7 shall prohibit Employee’s continued
participation in those activities specifically described on Exhibit B
attached hereto; provided, however, that Employee shall not target directly the
customer list of the Company or make use of the Company’s business trade
secrets.  The Company’s business trade
secrets shall not include the Company’s processes and systems, logistics
planning and scheduling, sales processes, lead generation activities,
fulfillment processes and vendors.


 


8.                                       Inventions and Discoveries.  Employee hereby assigns to the Company all
of his interest in any and ideas, conceptions, inventions, improvements, and
discoveries, whether patentable or not, which were conceived or made by
Employee, solely or jointly with another, during the period of his employment
by the Company and which are related to the business or activities of the
Company.  Employee acknowledges that all
such ideas, conceptions, inventions improvements and discoveries are the sole
property of the Company and that Employee has no rights in the same.  Employee agrees that, whenever requested to
do so by the Company, he shall assist in the preparation of any document that
the Company shall deem necessary and shall execute any and all applications,
assignments or other instruments that the Company shall deem necessary, in its
sole discretion, to apply for and obtain protection, including patent protection,
for such ideas, conceptions, inventions, improvements and discoveries in all
countries of the world.


 


9.                                       Copyrights.  Employee acknowledges that any original work
of authorship (each, a “Work”) fixed in any tangible medium of
expression which was the subject matter of copyright (e.g., written presentations,
computer programs, videotapes, drawings, maps, models, manuals or brochures)
relating to the Company’s business, products, or services, whether a Work was
created solely by Employee or jointly with others, the Company shall be deemed
the author of a Work if the Work was prepared by Employee in the scope of his
employment; or, if the Work was not prepared by Employee within the scope of
his employment but was specially ordered by the Company as a contribution to a
collective work, as a part of a motion picture or other audiovisual work, as a
translation, as a supplementary work, as a compilation or as an instructional
text, then the Work shall be considered to be a work made for hire and the Company
shall be deemed the author of the Work. 
In the event a Work was not prepared by Employee within the scope of his
employment or was not a Work specially ordered and deemed to be a work made for
hire, then Employee hereby assigns to the Company all of Employee’s worldwide
right, title and interest in and to such Work and all rights of copyright
therein.


 


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Employee acknowledges that all
Work is the property of the Company and Employee has no rights in the same.  Employee agrees to assist the Company and
its nominee, at any time, in the protection of the Company’s worldwide right,
title and interest in and to the Work and all rights of copyright therein,
including but not limited to, the execution of all formal assignment documents
requested by the Company or its nominee and the execution of all lawful oaths
and applications for registration of copyright in the United States and foreign
countries.


 


10.                                 Confidentiality.  Employee understands and agrees not to discuss
any of the terms of this Agreement with any person or entity except for
Employee’s spouse, attorney, tax advisor, and government tax authorities or
except as required by law. 
Notwithstanding anything set forth in this Agreement to the contrary or any
other agreement to which Employee or the Company is bound, Employee and the
Company are expressly authorized to disclose the “tax treatment” and “tax
structure” (as those terms are defined in Treasury Regulations Sections
1.6011-4(c)(8) and (9), respectively) of the transactions contemplated by this
Agreement; provided, however,
that the foregoing authorization shall apply only to the extent necessary such
that the transactions contemplated by this Agreement will not constitute a
“confidential transaction” within the meaning of Treasury Regulations Sections
1.6011-4(b)(3).


 


11.                                 Non-Competition.


 


During the
Severance Period, Employee will not directly or indirectly, for himself or for
others, in any state of the United States, or in any foreign country where the
Company or any of its affiliates is then conducting any business:


 


a.                                       engage
in any business that is directly competitive with activities conducted by the
Company (or any of the Company’s subsidiaries or divisions), which activities
conducted by the Company (or any of the Company’s subsidiaries or divisions)
represent in the aggregate greater than 25% of the Company’s proforma
consolidated revenues in 2001;


 


b.                                      render
advice or services to, or otherwise assist, any other person or entity who is
engaged, directly or indirectly, in any business that is directly competitive
with activities conducted by the Company (or any of the Company’s subsidiaries
or divisions), which activities conducted by the Company (or any of the
Company’s subsidiaries or divisions) represent in the aggregate greater than
25% of the Company’s proforma consolidated revenues in 2001; or


 


c.                                       transact any business in any manner
pertaining to suppliers or customers of the Company or any affiliate which, in
any manner, would have, or is likely to have, an adverse effect upon the
Company or any affiliate.


 


None of the
foregoing in this Section 11 shall prohibit Employee’s continued
participation in those activities specifically described on Exhibit B
attached hereto.


 


12.                                 Non-Solicitation
and Non-Disparagement.  Employee
agrees that in further consideration for the severance pay described above,
during the Severance Period, Employee shall not, on his own behalf or on behalf
of any other person, partnership, entity, association, or corporation, hire or
seek to hire any non-clerical or non-secretarial employee of the Company or in
any other manner attempt directly or indirectly to influence, induce, or
encourage any non-clerical 


 


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or non-secretarial employee of
the Company to leave the employment of the Company, nor shall he use or
disclose to any person, partnership, entity, association, or corporation any
information concerning the names, addresses or personal telephone numbers of
any employees of the Company.  Employee
further agrees that he will not, at any time, disparage the Company or
interfere with the Company’s operations, products, employees, officers or
directors.  For the purposes of this Section
12, the term “Company” shall also include affiliates of the Company.


 


13.                                 Use
of Name and Image.  After the
Severance Period, the Company agrees that it shall not use in any manner
whatsoever Employee’s name or image in any of its marketing, sales, educational
or instructional materials, or in any other manner to benefit the Company.   After the Severance Period, Employee agrees
that he shall not use in any manner whatsoever the Company’s name or image
(except to the extent reflected in biographical information) in any of his
marketing, sales, educational or instructional materials, or in any other
manner to benefit Employee.


 


14.                                 Remedies
and Notice of Legal Action.


 


a.                                       Employee
and Company acknowledge that damages are an inadequate remedy of law for the
breach of certain terms hereof and, accordingly, Company and Employee are
hereby granted and shall have the right of injunction (any requirements for
posting of bonds for injunction being hereby expressly waived) and such other
and further relief, both in law and in equity, that Company or Employee may be
entitled to receive under the laws of the State of Utah, in the event Employee
or Company breaches or threatens to breach any of the covenants or agreements
contained herein.


 


b.                                      Employee
and Company agree that prior to instituting any legal action to enforce or
obtain relief for the breach of this Agreement, each of them will provide to
the other party notice of any breach of this Agreement.  So long as following receipt of any such
notice the breaching party immediately ceases any ongoing breach of this
Agreement and immediately commences its efforts to cure any past breach, the
aggrieved party shall refrain from instituting legal action to enforce or
obtain relief for the breach of this Agreement until the expiration of a
reasonable cure period (as determined in good faith by the aggrieved party but
in no event in excess of 10 days) within which the breaching party may attempt
to cure any breach.


 


15.                                 Indemnification.


 


a.                                       The
Company shall indemnify and hold harmless the Employee in respect of acts or
omissions occurring prior to the date hereof to the extent provided under the
Company’s restated certificate of incorporation and bylaws in effect on the
date hereof, including the prompt payment of expenses incurred by Employee.  The Company shall provide officers’ and
directors’ liability insurance in respect of acts or omissions occurring prior
to the date hereof covering Employee on terms and with respect to coverage and
amount no less favorable than those of such policy in effect on the date
hereof.


 


b.                                      Any
indemnification under Section 15(a) (unless ordered by a court) shall be
made by the Company only as authorized in the specific case upon a
determination that 


 


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indemnification of Employee is
proper in the circumstances because he has met the applicable standard of
conduct set forth in Article VIII of the Company’s restated certificate of
incorporation.  Such determination shall
be made by independent legal counsel as directed by the Board of Directors in a
written opinion.


 


16.                                 Acknowledgement.


 


Employee
acknowledges the following:  that this
Agreement is written in a manner calculated to be understood by Employee and
that Employee in fact understands the terms, conditions and effect of this
Agreement; this Agreement refers to rights or claims arising under the Age
Discrimination in Employment Act and Older Workers Benefit Protection Act;
Employee does not waive rights or claims that may arise after the date this
Agreement is executed; Employee waives rights or claims only in exchange for
consideration in addition to anything of value to which Employee is already
entitled; Employee is advised in writing to consult with an attorney prior to
executing the Agreement;  Employee has
twenty-one (21) days in which to consider this Agreement before accepting it,
but need not take that long if the Employee does not wish; this Agreement
allows a period of at least seven (7) days following execution of the Agreement
in which Employee may revoke the Agreement by giving the Company written notice
and returning any and all payments made by the Company to Employee pursuant to
this Agreement; and Employee fully understands all of the terms of this waiver
agreement and knowingly and voluntarily enters into this Agreement.


 


Employee
understands this Agreement is not and shall not be deemed or construed to be an
admission by the Company of any wrongdoing of any kind or of any breach of any
contract, obligation, policy, or procedure of any kind or nature.


 


17.                                 Entire
Agreement and Modification. 
Employee has carefully read and fully understands all of the terms of
this Agreement.  Employee agrees that
this Agreement sets forth the entire agreement between the Company and
Employee.  Employee acknowledges that
Employee has not relied upon any representations or statements, written or
oral, not set forth in this Agreement. 
This Agreement cannot be modified except in writing and signed by both
parties.


 


18.                                 Severability. 
If a court of competent jurisdiction determines that any provision of
this Agreement is invalid or unenforceable, then the invalidity or
unenforceability of that provision shall not affect the validity or
enforceability of any other provision of this Agreement, and all other
provisions shall remain in full force and effect.


 


19.                                 Applicable Law, Jurisdiction and Venue.  This Agreement is entered into under, and
shall be governed for all purposes by, the laws of the State of Utah. Any suit
by the Company to enforce any right hereunder or to obtain a declaration of any
right or obligation hereunder may, at the sole option of the Company, be
brought (i) in any court of competent jurisdiction in the State of Utah or
(ii) in any court of competent jurisdiction where jurisdiction may be had
over Employee. Employee hereby expressly consents to the jurisdiction of the
foregoing courts for such purposes and to the appointment of the Secretary of
State for the State of Utah as his agent for service of process.


 


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20.                                 Counterparts. 
This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together will
constitute one and the same Agreement.


 


21.                                 Withholding of
Taxes.  The Company may withhold from any benefits
payable under this Agreement all federal, state, city or other taxes as may be
required pursuant to any law or governmental regulation or ruling.


 


22.                                 Headings. 
The paragraph headings have been inserted for purposes of convenience
and shall not be used for interpretive purposes.


 


23.                                 Affiliate. 
As used in this Agreement, “affiliate” shall mean any person or entity
which directly or indirectly through one or more intermediaries owns or
controls, is owned or controlled by, or is under common ownership or control
with, the Company.


 


24.                                 Assignment. 
This Agreement, and the rights and obligations of the parties hereunder,
are personal and neither this Agreement, nor any right, benefit or obligation
of either party hereto, shall be subject to voluntary or involuntary
assignment, alienation or transfer, whether by operation of law or otherwise,
without the prior written consent of the other party except that vested rights
to payment shall be subject to devise, and shall descend in accordance with applicable
laws of inheritance.


 


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AGREED AND
ACCEPTED on this 26th day of August, 2003.


 


 


	
   

  	
   /s/ Scott Elder

  	
   

  
	
   

  	
  Scott Elder

  



 


 


AGREED AND
ACCEPTED on this 26th day of August, 2003.


 


	
   

  	
  INVESTools,
  Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lee K.
  Barba

  	
   

  
	
   

  	
  Name:

  	
   Lee K.
  Barba

  	
   

  
	
   

  	
  Title:

  	
   Chief
  Executive Officer

  	
   

  
						



 


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EXHIBIT A


 


Shares of Company common stock
sold by Employee to the Company in accordance with the terms of the Termination
Agreement and General Release shall be sold for a purchase price to be
determined as follows:


 


a.                                       In
the event of a sale of 10,001 to 99,999 shares of Company common stock, the
price per share shall be the closing sale price of Company common stock as
reported by the OTC Bulletin Board on the date such offer is made.


 


b.                                      In
the event of a sale of 100,000 or more shares of Company common stock, the
price per share shall be $.03 below the closing sale price of Company common
stock as reported by the OTC Bulletin Board on the date such offer is made.


 


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EXHIBIT B


 


Auctionadvisor will be a seminar, workshop,
and self-directed learning education provider whose purpose will be to teach
people how to make money by participating in and/or operating online auctions,
either part time or full time, with the end goal of the customer turning the
skills learned in the education process into a part time or full time business.


 


Auctionadvisor will not, directly or
indirectly, provide seminars, workshops or self directed learning for stock
market investor education or stock market investment education.


 


Auctionadvisor will not maintain hot links on
its website to INVESTools’ website or the websites of INVESTools’ investment
partners.


 


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