Release Agreement - Poulsen



 EXHIBIT 10.1 
  
 RELEASE AGREEMENT 
  
 This RELEASE AGREEMENT (“Agreement”) is made and entered into by and between ALDERWOODS GROUP, INC. (“Alderwoods”), ROSE HILLS COMPANY
(“Rose Hills”), as well their respective parent companies, subsidiaries, affiliates, successors, predecessors, employees, agents, directors and officers, past and present, stockholders and estates (collectively referenced herein as
“the Company”), and DENNIS C. POULSEN, his dependents, heirs, attorneys, agents, successors and assigns (collectively referenced herein as “Poulsen”“ or “Employee”). 
  
 R E C I T A L S 
  
 WHEREAS, Poulsen has been employed as Chairman and then Chief Executive
Officer (“CEO”) of Rose Hills pursuant to a agreement dated March 1, 2000 and extensions thereof (the “Prior Agreement”); and 
  
 WHEREAS, Poulsen had agreed to resume the position of CEO of Rose Hills until a successor could be identified and a transition achieved; and 

 
 WHEREAS, the successor has been identified and will commence duties on
July 1, 2003 and effective that date Poulsen has agreed to resign from his position and accept a non-executive position as Chairman of the Board of Rose Hills; and 
  
 WHEREAS, Poulsen and the Company (collectively, the “Parties”) desire and intend to resolve any and all issues
related to the Prior Agreement and any other prior employment agreements entered into between the parties prior to the Resignation Date; and 
  
 WHEREAS, the Parties have read and understood the terms of this Agreement and have been provided a reasonable opportunity to consult with legal counsel
prior to executing this Agreement. 
  
 In consideration for
the mutual promises and covenants set forth herein, the Parties agree as follows: 
  
 1.    Resignation.  Poulsen agrees to tender his voluntary resignation from his position as Chief Executive Officer of Rose Hills, effective June 30, 2003 (the “Resignation
Date”). Poulsen agrees to submit a resignation letter in the form attached hereto as Exhibit A. 
  
 2.    Termination of Other Agreements.  Poulsen agrees that this Agreement terminates the Prior Agreement and any and
all other prior employment agreements entered into between the Parties on or before the Resignation Date and constitutes the entire agreement between the parties as of the Effective Date of this Agreement, with the exception of the Letter Agreement
entered into between the parties, dated July 1, 2003 (the “July 2003 Agreement”); provided, however, that nothing in this Agreement shall be construed to modify or abridge any vested rights under the Rose Hills Supplemental Executive
Retirement Plan, the Rose Hills 401K Plan and any other qualified benefit program in which Poulsen was a participant immediately prior to his resignation and the July 2003 Agreement. 
  
 3.     Payment.  The Company shall pay Poulsen the termination without cause amount
referred to in the Prior Agreement in a lump sum in the gross amount of two hundred forty thousand dollars and no cents ($240,000.00), less statutory payroll deductions and any other deductions authorized in writing by Poulsen (the
“Payment”). The Payment shall be paid within thirty (30) calendar days after the expiration of the seven (7) day revocation period set forth in Section 8(e) herein. 
  
 4.    Tax Consequences.  Poulsen agrees to pay federal and state taxes, if any, which
are required to be paid with respect to the Payment. Poulsen acknowledges and agrees that neither the Company nor its counsel have 

  

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made any representations or rendered any opinions regarding the tax consequences of the Payment. Poulsen agrees to indemnify and hold the Company harmless
from any claims, demands, deficiencies, levies, assessments, executions, judgments or recoveries by any governmental entity against the Company or any amounts claimed due on account of this Agreement or pursuant to claims made under any federal or
state tax laws, and any costs, expenses or damages sustained by the Company by reason of such claims, including amounts paid by the Company as taxes, attorneys’ fees, deficiencies, levies, assessments, fines, penalties, interest or otherwise.

  
 5.    Employee
Benefits.  After his Resignation Date, Poulsen may continue his participation in Rose Hills’ employee benefit plans, other than Long Term Disability in accordance with the terms of the applicable plan documents. 
  
 6.    Release. 
  

	 	a.	 	Poulsen, on behalf of himself, his spouse, dependents, heirs, attorneys, successors and assigns, hereby releases, holds harmless and forever discharges Alderwoods Group, Inc., Rose
Hills Company, as well as their respective parent companies, subsidiaries, affiliates, successors, predecessors, employees, agents, directors and officers, past and present, stockholders and estates in their individual and business capacities,
jointly and severally (collectively referenced herein as “the Released Parties”), from any and all claims, damages, fees, costs or other equitable, legal, statutory or common law relief for any causes of action, obligations, contracts,
torts, claims, costs, penalties, fines, liabilities, attorneys’ fees, demands or suits, of whatever kind or character, known or unknown, fixed or contingent, liquidated or unliquidated, whether asserted or unasserted, arising out of or related
to Poulsen’s employment with the Company prior to his Resignation Date, Poulsen’s resignation from his position of Chief Executive Officer of Rose Hills and any employment agreements governing terms of Poulsen’s employment prior to
his Resignation Date. This Agreement shall specifically apply to, but shall not be limited to, claims for alleged violations of civil rights, including violations of Title VII of the Civil Rights Act of 1964, as amended, the Equal Pay Act, the
Americans With Disabilities Act, the Age Discrimination in Employment Act, the Family and Medical Leave Act, or any other state or federal statute (or constitution), including but not limited to any claim based upon race, color, sex, national
origin, ethnicity, ancestry, religion, age, mental or physical disability, marital status, sexual preference or denial of Family and Medical Leave; claims arising under the Employee Retirement Income Security Act of 1974 (“ERISA”), or
pertaining to ERISA-regulated benefits (except as specifically provided herein); claims arising under the Fair Labor Standards Act, including any claims for wages, vacation pay, severance pay, bonus compensation, commissions, deferred compensation,
stock grants and/or stock options, other remuneration of any kind or character; or any other federal, state or local law governing labor relations; claims for any obligations, agreements, express or implied contracts; claims for defamation, invasion
of privacy, assault and battery, intentional or negligent infliction of emotional distress, negligence, gross negligence, estoppel, conspiracy or misrepresentation; express or implied duties of good faith and fair dealing; wrongful discharge,
violations of public policy; and/or torts for any and all alleged acts, omissions or events up through the Effective Date of this Agreement. 

  

	 	b.	 	The Parties acknowledge that this Agreement is intended to constitute a full and final settlement, release and bar to any and all claims of any kind, known or unknown. The Parties
acknowledge that they are familiar with Section 1542 of the Civil Code of the State of California, which provides as follows: 

  
 A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release,
which, if known by him, must have materially affected his settlement with the debtor. 
  
 Poulsen expressly waives and relinquishes any and all rights and benefits which he may have under Civil Code § 1542 to the fullest extent permissible under the law. The Parties acknowledge that 

  

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they are aware that they, or their attorneys, may hereafter discover facts or claims in addition to or different from those which are known to exist with
respect to the subject matter of this Agreement, but that it is the Parties’ intention to fully, finally and forever settle and release all claims known or unknown, suspected or unsuspected, with respect to the subject matter of this Agreement.

  
 7.    Voluntary and Knowing
Agreement.  Poulsen acknowledges that he has carefully read and fully understands all of the provisions and effects of this Agreement; that he has consulted with an attorney prior to executing this Agreement; that he participated in
the creation of and is voluntarily entering into this Agreement; and that neither the Company nor its agents or attorneys have made any representations or promises as to the terms or effects of this Agreement other than those contained here.

  
 8.    Compliance With Older
Workers’ Benefit Protection Act.  The Parties desire and intend that this Agreement comply with the terms of the Older Workers’ Benefit Protection Act. Accordingly, Poulsen acknowledges that he has been advised of the
following rights: 
  

	 	a.	 	Poulsen understands that state and federal laws, including the AGE DISCRIMINATION IN EMPLOYMENT ACT, prohibit employment discrimination based upon age, sex, race, color, national
origin, ethnicity, religion, or disability. Poulsen further understands and agrees that, by signing this Agreement, he agrees to waive any and all such claims, and release the Company from any and all such claims. 

  

	 	b.	 	Poulsen acknowledges that he has been advised in writing to consult with an attorney and has been provided with a reasonable opportunity to consult with an attorney prior to signing
this Agreement, which contains a general release and waiver of claims. 

  

	 	c.	 	Poulsen acknowledges he is being paid the Payment in a lump sum and that he is being provided benefits in accordance with paragraph 5 of this Agreement, in consideration for his
signing of this Agreement. 

  

	 	d.	 	Poulsen acknowledges that he has TWENTY-ONE (21) DAYS after receiving this Agreement, up to and including July 21, 2003, to consider whether to sign this Agreement.


  

	 	e.	 	Poulsen acknowledges that, in the event that he signs this Agreement, he has another SEVEN (7) DAYS to revoke it. To revoke, Poulsen agrees to deliver a written notice of revocation
to Mr. Paul Houston, President and Chief Executive Officer, Alderwoods Group, Inc., 2225 Sheppard Avenue E., Suite 1100, Toronto, Ontario M2J5C2 Canada, prior to 5 PM on the seventh day after signing. THIS AGREEMENT DOES NOT BECOME EFFECTIVE UNTIL
EXPIRATION OF THIS SEVEN DAY PERIOD. 

  
 9.    Non-Disclosure.  Poulsen acknowledges that, by reason of his position with Rose Hills, he has been given access to Confidential Information belonging to the Company. Poulsen agrees that, subsequent
to the Effective Date of this Agreement, he will not use for any purpose, or disclose to any person who is not a current officer, director, employee or agent of the Company, any Confidential Information obtained during the course of his employment
with the Company, without the expressed written consent of the Company. For purposes of this Agreement, the term “Confidential Information” shall mean documents, electronic media or other tangible things containing trade secrets, patents,
trademarks, service marks, copyrights, video tapes, audio tapes, promotional materials, brochures, products, specifications, techniques, processes, drawings, price lists, orders, invoices, customers lists, insurance lists, pre-need sales
information, vendor or supplier lists, market studies, policies, procedures, files, documents, forms, financial information, corporate structure, budgets, forecasts, estimates, contracts, correspondence, personnel information, resumes, and other
similar information.  
  
 10.    Cooperation with Litigation.  In the event that the Company is involved in any investigation, litigation, arbitration or administrative proceeding subsequent to the Effective Date of this
Agreement, Poulsen agrees that, upon request and at such payment rates as may be agreed to by the parties, he will provide reasonable 

  

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cooperation to the Company and its attorneys in the prosecution or defense of any investigation, litigation, arbitration or administrative proceeding,
including participation in interviews with the Company’s attorneys, appearing for depositions, testifying in administrative, judicial or arbitration proceedings, or any other reasonable participation necessary for the prosecution or defense of
any such investigation, litigation, arbitration or administrative proceeding. 
  
 11.    Indemnification.  This Agreement shall not affect Poulsen’s rights to indemnification under the charter and by-laws of Rose Hills and/or Alderwoods with respect to
acts, omissions or events occurring prior to the Resignation Date, which rights shall also apply to Poulsen with respects to acts, omissions or events occurring on or after his Resignation Date in connection with his duties and responsibilities as
non-executive Chairman of the Board of Rose Hills. The Company will continue to cover Poulsen under Rose Hills’ directors’ and officers’ liability insurance policy for as long as Rose Hills provides such coverage generally to its
officers and directors. 
  
 12.    Irreparable Harm.  In addition, Poulsen acknowledges that any breach of the provisions stated in paragraph 9 of this Agreement is likely to result in immediate and irreparable harm to the Company,
for which money damages are likely to be inadequate. Accordingly, Poulsen consents to injunctive and other appropriate equitable relief that the Company may seek to protect the Company’s rights under this Agreement. Such relief may include,
without limitation, an injunction to prevent him from disclosing any trade secrets or confidential information concerning the Company to any entity, to prevent any entity from receiving from him or using any such trade secrets or confidential
information, from solicitation of customers or employees, or using any of the names identified above. Poulsen acknowledges that he has received good and sufficient consideration as described above for the covenants set forth in this Agreement.
 
  
 13.    Arbitration.  Except as provided in Paragraph 12 herein, any claims or controversies pertaining to the interpretation or enforcement of this Agreement, shall be resolved by final and binding
arbitration in the City of Los Angeles, California, in accordance with the American Arbitration Association’s National Rules for the Resolution of Employment Disputes in effect on the date arbitration is demanded. 
  

	 	a.	 	All arbitration demands shall be in writing. Any demand for arbitration must be communicated within twenty four (24) months of the date the alleged violation of the Agreement.


  

	 	b.	 	All arbitration awards shall be in writing. Subject to applicable law, the arbitrator shall have the discretion to assess reasonable costs and expenses, including attorneys’
fees, against the non-prevailing party. Further, any dispute as to the reasonableness of any costs and expenses shall be resolved by the arbitrator. 

  

	 	c.	 	Except as may be necessary to enter judgment enforcing any award or as otherwise required by law, all claims, defenses and proceedings (including, without limiting the generality of
the foregoing, the existence of the controversy and the fact that there is an arbitration proceeding) shall be confidential. Neither the parties nor the arbitrator shall divulge to any third party not directly involved in the arbitration proceeding
the contents of the pleadings, papers, orders, hearings, trials or awards in the arbitration. Any court proceedings filed by any Party to modify, enforce or vacate an arbitration award issued hereunder shall be filed under seal to the maximum extent
permitted by law. 

  
 14.    Choice of Law.  This Agreement is made in the State of California, and shall in all respects be interpreted, enforced and governed under the laws of the State of California (without regard to
rules pertaining to choice of law), or by Federal law where applicable. 
  
 15.    Modifications.  The Parties agree that the provisions of this agreement may not be modified by any subsequent agreement unless the modifying Agreement is: (i) in writing; (ii) specifically
references this Agreement; (iii) is signed by Dennis C. Poulsen; and (iv) is signed and approved by the President and Chief Executive Officer of Alderwoods Group, Inc. 
  

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 16.    Integration.  The Parties acknowledge and agree that the
Parties have executed this Agreement based upon the terms set forth herein; that the Parties have not relied on any prior agreement or representation, whether oral or written, which is not set forth in this Agreement; that no prior agreement,
whether oral or written, shall have any effect on the terms and provisions of this Agreement; and that all prior agreements, whether oral or written, are expressly superseded and/or revoked by this Agreement. 
  
 17.    Severability and Waiver.  The
Parties acknowledge and agree that each provision of this Agreement shall be enforceable independently of every other provision. Furthermore, in the event that any provision is deemed to be unenforceable for any reason, the remaining provisions
shall remain effective, binding and enforceable. The Parties further acknowledge and agree that the failure of any party to enforce any provision of this Agreement shall not constitute a waiver of that provision, or of any other provision of this
Agreement. 
  
 18.    Successors and
Assigns.  The Parties acknowledge and agree that this Agreement shall inure to the benefit of and may be enforced by the Parties and shall be binding on Poulsen, his executors, administrators, legatees, or any other successor in
interest and upon the Company, its successors, assigns and/or transferees. 
  
 19.    Drafting.  Each Party has cooperated in the drafting and preparation of this Agreement. Accordingly, in any dispute concerning the interpretation or application of this
Agreement, the terms of the Agreement shall not be construed against any party on the basis that the party drafted this Agreement. 
  
 20.    Effective Date.  The Effective Date of this Agreement shall be seven (7) calendar days after the date that
Poulsen signs this Agreement. The date that representatives of the Company sign this Agreement shall not affect the Effective Date for any purpose under this Agreement. 
  
 21.    Fees and Costs.  The Parties will each bear their own attorney’s fees and
costs in connection with drafting and negotiation of this Agreement. 
  
 22.    Counterparts.  This Agreement may be executed in counterparts, and each counterpart shall have the same force and effect as an original and shall constitute an effective, binding agreement on the
part of each of the undersigned. 
  
 IN WITNESS WHEREOF,
and intending to be legally bound hereby, I have executed and delivered this Release as of the date set forth below. 
  

	 	  	ROSE HILLS COMPANY
			
	 July 1, 2003

 Date
	  	 By:
	  	 /s/    KENTON C.
Woods        

 Kenton C. Woods
 President and Chief Executive Officer

		
	 	  	ALDERWOODS GROUP, INC.
			
	 July 1, 2003

 Date
	  	 By:
	  	 /s/    PAUL A. HOUSTON        

 Paul A. Houston
 President and Chief Executive Officer

			
	 July 1, 2003

 Date
	  	 	  	 /s/    DENNIS C. POULSEN        

 Dennis C. Poulsen


  
  

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 EXHIBIT A 
  

June 30, 2003 
  
 Mr. Paul Houston 
 President and CEO, Alderwoods Group, Inc. 
 Director, Rose Hills Company 
  
 Dear Paul:

  
 This is to advise you that effective June 30, 2003, I hereby
voluntarily resign my position as Chief Executive Officer with Rose Hills Company. 
  
 Sincerely Yours, 
  
 Dennis C. Poulsen 
  

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