Document:

Exhibit 10.2

 

ACKNOWLEDGMENT

 

The undersigned, Matthew A.
Packey, acknowledges that on May 10, 2010, he was provided with the
attached Confidential Severance and Release Agreement (“Agreement”). 
The undersigned further acknowledges that he has been advised to consult
with his attorney before entering into the attached Agreement, and that he is
being given a period of at least twenty-one (21) days to consider whether to
accept or reject the proposed Agreement. 
Any changes to the Release, whether material or immaterial, will not
restart the time period for such review. 
The undersigned acknowledges that he has received and read this
Acknowledgment, and fully understands its meaning.

 

 

	
  /s/ Matthew A. Packey

  	
   

  	
  /s/ Sheril
  Givens

  
	
  Matthew A. Packey

  	
   

  	
  Witness

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  5/10/2010

  	
   

  	
  Date:

  	
  5/10/2010

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

CONFIDENTIAL SEVERANCE AGREEMENT AND RELEASE

 

THIS CONFIDENTIAL SEVERANCE
AGREEMENT AND RELEASE (“Agreement”)
is made this 10th day of May, 2010, by and between Matthew A.
Packey (“Packey”) and Tree.com, Inc.,
for itself and on behalf of its subsidiaries including LendingTree, LLC (“Company”), with its principal office
in Charlotte, NC.

 

WHEREAS, Packey has
been employed by the Company as Senior Vice President, Chief Financial Officer;

 

WHEREAS, Packey has
submitted his resignation and Company has accepted such resignation and Packey
and the Company desire to terminate their employment relationship in an
amicable and definitive manner and to settle, compromise and resolve any and
all claims they may have against each other;

 

WHEREAS, Packey’s  last day in the office is May 28, 2010 (“Termination Date”); and

 

WHEREAS, the Company,
in exchange for the Release provided by Packey herein, has agreed to provide
Packey with certain additional compensation which it is not otherwise obligated
to provide.

 

NOW, THEREFORE, in
consideration of the execution of this Agreement, and for other good and
valuable consideration, the parties hereto agree as follows:

 

1.             Compensation. 
Packey shall perform all normal duties through May 28, 2010 and the
Company will pay to Packey all salary payments and other compensation due and
payable, during the term of employment through and including the Termination
Date.  On the next regularly scheduled
Company pay date following the Termination Date, the Company will also pay to
Packey an amount equal to up to forty (40) hours of any 2010 accrued but unused
Paid Time Off (“PTO”) balance.

 

2.             Employee Benefits.  From and after June 1, 2010, Packey
shall not have the right to participate in or receive any benefit under any
employee benefit plan of the Company, any fringe benefit plan of the Company,
or any other plan, policy or arrangement of the Company providing benefits or
perquisites to employees of the Company generally or individually.  Provided, however, that Packey shall be
entitled, if otherwise eligible, (i) to exercise his right to continued
coverage under the Company medical benefit plan as provided by the Consolidated
Omnibus Budget 

 

1

 

Reconciliation
Act of 1986, 26 U.S.C. § 490B et seq. (“COBRA”)
(and with respect to which the Company will provide Packey with a separate
notice as required by federal law); and (ii) to elect the payment of
benefits to which Packey is entitled under the Tree.com, Inc. 401(k) Retirement
Savings Plan as provided under the terms of the plan.  If Packey elects COBRA coverage, upon
submission of proof payment for his COBRA coverage, Company will promptly
reimburse Packey for the amount that represents the employer’s portion of such
coverage from June 1, 2010 through February 15, 2011 or until such
time as Packey secures a position offering a benefit package that renders him
ineligible for COBRA coverage, whichever occurs sooner.

 

3.    Special Exit Package. 
Also as consideration for Packey’s execution of this Agreement and his
assent to its terms and conditions, the Company shall:

 

a.             Pay Packey an amount equal to seven (7) months’
Base Salary (calculated from his former base salary of $312,500.00), payable in
equal installments on the Company’s regularly scheduled paydays over the seven (7) month
period following his Termination Date (the “Severance Period”).  If, however, Packey obtains other employment
or is otherwise compensated for services provided to any party during this
Severance Period, the Company’s obligation to make future payments to Packey
shall be offset against any compensation earned by him as a result such
employment or services provided.  Packey
agrees to inform the Company promptly of his employment status and any amounts
earned during the Severance Period.

 

b.             Pay Packey an amount equal to forty (40) hours of PTO
lost at the end of calendar year 2009 as well as all accrued, unused 2010 PTO,
if any, in excess of the forty (40) hours referenced in Section 1.

 

4.             Adequacy of Consideration.  Packey understands that the Special Exit
Package provided hereunder by the Company is discretionary in nature, is not an
admission of liability by the Company, is not required of the Company in the
absence of this Agreement, and constitutes adequate consideration for the
Agreement.

 

5.             Return of Property.  Packey acknowledges that the Company has
returned to him all of his personal effects and property which were in the
Company’s possession or control.  Packey
further acknowledges and agrees that he has returned or will return to the
Company all property of the Company (including, but not limited to, computers,
cell phones, pagers, keys and access cards, Company credit cards, and all other
Company documents, records and equipment) which are in 

 

2

 

Packey’s possession or control, including all copies and summaries of
any of the Company’s confidential or proprietary information.  Packey further affirms that he understands his
obligation to keep confidential the business and proprietary information of the
Company and that he will not discuss or disclose such information with anyone.

 

6.    Release.

 

(a) As a material
inducement to the Company to provide the Special Exit Package and any other
consideration described herein, Packey, for himself and his heirs, executors,
administrators and assigns, hereby irrevocably and unconditionally forever
releases and discharges the Company and its predecessors, successors,
affiliates, benefits plans, assigns, and their respective directors, officers,
shareholders, trustees, administrators, employees, representatives and agents
from any and all actual or potential claims, demands, actions, causes of action
or liabilities of any kind or nature, whether known or unknown, including, but
not limited to, all claims related to or arising out of his employment with the
Company, whether based on tort, contract (express or implied) or any federal,
state or local law, statute or regulation, including, but not limited to,
claims brought under: (i) the Age Discrimination in Employment Act, 29
U.S.C. § 621 et seq.; (ii) the Employee Retirement Income Security Act, 29
U.S.C. § 1001 et seq.; (iii) the Family and Medical Leave Act, 29 U.S.C. §
2611 et seq.; (iv) Title VII of the Civil Rights Act of 1964, 42 U.S.C. §
2001e et seq., as amended; (v) the Americans with Disabilities Act, 42
U.S.C. § 12101 et seq.; (vi) the discrimination or other employment laws
of the State of North Carolina; and (vii) any other claims for personal
injury, compensatory or punitive damages or attorneys’ fees.  (This release does not apply to claims that
may arise after the date this Agreement is executed or to any claims to vested
benefits under the employee retirement benefit plan.)

 

(b)  ADEA Claims.  Packey hereby releases and discharges
Company, its subsidiaries, affiliates, and their respective parents, direct or
indirect subsidiaries, divisions, affiliates and related companies or entities,
any predecessors, successors, joint ventures, and parents of any such entity,
and any and all of their respective past or present shareholders, partners,
directors, officers, employees, consultants, independent contractors, trustees,
administrators, insurers, agents, attorneys, representatives and fiduciaries,
including without limitation all persons acting by, through, under or in
concert with any of them (collectively, the “Released
Parties”), from 

 

3

 

any and all claims, actions and causes of action that he may have
against the Released Parties, as of the date of the execution of this
Agreement, arising under the Age Discrimination in Employment Act of 1967, as
amended (“ADEA”), and the applicable rules and
regulations promulgated thereunder.  Packey acknowledges and understands that ADEA
is a federal statute that prohibits discrimination on the basis of age in
employment, benefits and benefit plans. 
Packey specifically agrees and acknowledges that:  (A) the release in this Section 6
was granted in exchange for the receipt of consideration that exceeds the
amount to which he would otherwise be entitled to receive upon termination of
his employment; (B) his waiver of rights under this Agreement is knowing
and voluntary as required under the Older Workers Benefit Protection Act; (C) that
he has read and understands the terms of this Agreement; (D) he has hereby
been advised in writing by the Company to consult with an attorney prior to
executing this Agreement; (E) the Company has given him a period of up to
twenty-one (21) days within which to consider this Agreement, which period
shall be waived by his voluntary execution prior to the expiration of the
twenty-one day period and the parties agree that any changes to the terms or
conditions of this Agreement (whether material or immaterial) will not restart
the running of the 21-day period; and (F) following his execution of this
Agreement he has seven (7) days in which to revoke his release as set
forth in this Section 6(b) only and that, if he chooses not to so
revoke, the agreement in this Section 6 shall then become effective and
enforceable and the Special Exit Package shall then be made to him in
accordance with the terms of this Agreement. 
To cancel this Agreement, Packey understands that he must give a written
revocation to the Senior Vice President of Human Resources of the Company at
11115 Rushmore Drive, Charlotte, North Carolina 28277, either by hand delivery
or certified mail within the seven (7) day period.  If he rescinds the Agreement, it will not
become effective or enforceable and he will not be entitled to any benefits
from the Company.

 

7.             Complete Bar. 
Packey agrees that the parties released above in paragraph 6 may plead
this Agreement as a complete bar to any action or suit before any court or
administrative body with respect to any claim released herein.

 

8.             Confidentiality, Non-disparagement and Continuing
Obligations.

 

(a)               Packey agrees,
promises, and covenants that the terms and provisions of this Agreement shall
remain and be kept strictly confidential by him and shall not be disclosed 

 

4

 

except as provided herein. 
Without the express written agreement of the Company, or unless required
to do so by law, Packey agrees to take every precaution to disclose this
information only to those attorneys, accountants, governmental entities, and
family members who have a reasonable need to know such information.  To the extent required by law or applicable
regulation, Packey may also disclose the provisions of this Agreement to the
appropriate taxing authorities.  This
confidentiality provision applies to and expressly prohibits all communications
by Packey to any person or entity, including, without limitation,
communications to any present, former or future Company employee.

 

(b)           Packey promises that he will not make critical, negative
or disparaging remarks about the Company, its affiliates, or their officers,
directors, employees or representatives, including but not limited to comments
about any of their products, services, business or employment practices.

 

(c)           Additionally, Packey acknowledges that, during his
employment with the Company, he may have learned information that is
confidential to the Company (“Confidential Information”).  Such Confidential Information may have
included (among other things): purchasing and product information; sales and
account information; customer information; sales and marketing plans and
strategies; pricing strategies; profit margins; pricing reports; information
concerning claims or potential claims against the Company; personnel
information, and any other information of a similar nature.  Packey agrees that he will not disclose any
Confidential Information to any person (including any Company employee who does
not need to know such Confidential Information), agency, institution, company
or other entity without first obtaining the written consent of the Company.

 

(d)           Packey acknowledges that his obligations governed by any
agreements entered into with Company regarding rights in intellectual property,
non-competition and non-solicitation remain in effect pursuant to their
original terms.

 

9.             No Admission of Liability.  Packey understands and agrees that the
Company admits no liability with respect to any claim related to or arising out
of the termination of Packey’s employment or any other matters.

 

10.           References. 
Any and all inquiries relating to Packey’s employment with the Company
shall be directed to the Company’s Senior Vice President, Human Resources.  If asked 

 

5

 

about Packey’s employment with the Company, the Company will only
provide neutral information pursuant to Company policy, consisting of dates of
employment and positions held.

 

11.           Entire Agreement. 
This Agreement contains the entire agreement between the parties and may
be modified only in a writing executed in the same manner as the original
Agreement; and no agreements, representations, or statements of any party not
contained herein shall be binding on such party; provided,
however, that this Agreement does not supersede Packey’s Employment
Agreement dated August 3, 2008, as amended, including without limitation,
Sections 2(b)-(e).

 

12.           Controlling Law. 
This Agreement shall be governed by and construed in accordance with the
laws of the state of North Carolina, as they are applied to contracts made and
to be wholly performed in this state, regardless of choice of law principles to
the contrary.  In addition, Packey
consents to the jurisdiction of any North Carolina court over any claims
arising under or relating to this Agreement.

 

13.           Enforcement. 
Should any provision of this Agreement be declared or be determined by
any court of competent jurisdiction to be wholly or partially illegal, invalid,
or unenforceable (with the exception of the release contained in paragraph 6),
the legality, validity, and enforceability of the remaining parts, terms, or
provisions shall not be affected thereby, and said illegal, unenforceable, or
invalid part, term, or provision shall be deemed not to be a part of this
Agreement.

 

14.  Costs. The parties will each bear
their own costs, expert fees, attorneys’ fees and other fees incurred in
connection with this Agreement.

 

15.  Withholding.  Company shall make such deductions and
withhold such amounts from each payment and benefit made or provided to Packey
hereunder, as may be required from time to time by applicable law, governmental
regulation or order.

 

16.  Section 409A of the Internal Revenue
Code.  This Agreement and the
benefits provided hereunder are intended to be exempt from the
requirements of Section 409A of the Internal Revenue Code of 1986, as
amended, and the rules, regulations and other guidance issued
thereunder because the Agreement provides only a short-term deferral of
compensation within the meaning of Treasury Regulation 1.409A-1(b)(4) (or
any successor or replacement section thereto).  This Agreement shall
be interpreted consistently with such exemption.

 

6

 

17.  Acknowledgments.

 

(a) Packey acknowledges
that he has had ample opportunity to consult with his attorney prior to his
execution of this Agreement, and was encouraged and advised in writing to do so
by the Company.

 

(b)           Packey has carefully read and fully understands all of the
provisions and effects of this Agreement and he knowingly and voluntarily
entered into all of the terms set forth in this Release.

 

(c)           Packey knowingly and voluntarily intends to be legally
bound by all of the terms set forth in this Agreement.

 

(d)           Packey relied solely and completely upon his own judgment
or the advice of his attorney in entering into this Agreement.

 

(e)           Packey’s signature below evidences his understanding and
voluntary waiver of all claims against the Company.

 

NOW, THEREFORE, Packey and
Company have executed this Agreement, freely and voluntarily, as of the date
first written above.

 

7

 

	
   

  	
  /s/ Matthew A. Packey

  	
   (SEAL)

  
	
   

  	
  MATTHEW A. PACKEY

  	
   

  

 

Sworn to and subscribed
before me this 10th day of May 2010.

 

	
   

  	
   

  
	
  /s/ Frederica
  Jefferson-Eason

  	
   

  
	
  Notary Public

  	
   

  
	
   

  	
   

  
	
  My Commission Expires: 

  	
  10/21/2014

  	
   

  
			

 

	
   

  	
  LENDINGTREE, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Claudette
  Hampton

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  SVP, Human Resources

  

 

(CORPORATE SEAL)

 

Sworn to and subscribed
before me this 10th day of May 2010.

 

	
   

  	
   

  
	
  /s/ Frederica
  Jefferson-Eason

  	
   

  
	
  Notary Public

  	
   

  
	
   

  	
   

  
	
  My Commission Expires: 

  	
  10/21/2014

  	
   

  
			

 

8Exhibit 10.3

 

 

June 28, 2010

 

Chris Hayek

Senior Vice President & Chief Accounting
Officer

 

Dear Chris:

 

Congratulations on your recent promotion to Senior
Vice President & Chief Accounting Officer.  In relation thereto and in consideration of
the mutual promises contained herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Tree.com, Inc. (“Company”)
and you hereby agree as follows (“Agreement”):

 

1.  Your base salary shall be increased to one hundred and eighty
thousand dollars ($180,000), effective as of May 28, 2010.  This shall be paid in accordance with the
Company’s normal payroll practices and schedule.

 

2.  Your bonus target shall be thirty percent (30%) of your
then-in-effect base salary at the time bonuses are calculated.

 

3.  You shall receive seven thousand, five hundred (7,500) Restricted
Stock Units (“RSUs”) subject to the
provisions of the Second Amended and Restated Tree.Com, Inc. 2008 Stock
and Annual Incentive Plan (“Plan”). 
The date of the RSU grant shall be June 28, 2010 and the grant will have
an annual vesting schedule with one third vested on each anniversary of the
date of the grant.  In the event of a
conflict between this letter agreement and the RSU award, the terms set forth
in the award agreement and plan should control.

 

4.  In the event your employment is terminated by the Company for
reasons other than cause or substandard performance, the Company will pay
severance to you in an amount equal to your monthly base salary then in effect
for a period of six (6) months after your termination date.  Receiving this severance pay is contingent
upon your signing and not revoking the appropriate release document provided by
Company.  This severance will be paid on
regularly scheduled pay dates and will be discontinued should you find other
employment.  If your benefit under the
Company’s normal severance plan in effect at the time is greater due to your
length of service you will be eligible to receive the greater severance amount.

 

5.  Your employment by the Company is on an “at will” basis.  This Agreement does not create an employment
contract or affect the right of the Company to terminate your 

 

11115 Rushmore Drive, Charlotte NC 28277

 

 

employment, or change the terms and conditions of such
employment, at any time without notice.

 

6.  Section 409A of the Internal Revenue Code.  This Agreement is not intended to constitute
a “nonqualified deferred compensation plan” within the meaning of Section 409A
of the Internal Revenue Code of 1986, as amended, and the rules and
regulations issued thereunder (“Section 409A”). 
Notwithstanding the foregoing, if this Agreement or any benefit paid to you
hereunder is subject to Section 409A and if you are a “Specified Employee”
(as defined under Section 409A) as of the date of your termination of
employment hereunder, then the payment of such benefits, if any, scheduled to
be paid hereunder during the first six (6) month period beginning on the
date of a termination of employment hereunder shall be delayed during such six (6) month
period and shall commence immediately following the end of such six (6) month
period (and, if applicable, the period in which such payments were scheduled to
be made if not for such delay shall be extended accordingly).  In no event
shall the Company be required to pay any “gross-up” or other payment with
respect to any taxes or penalties imposed under Section 409A with respect
to any benefit paid hereunder.

 

If you agree to the terms of this Agreement, please
sign and date the enclosed copy and return it to the undersigned at the above
address.  By signing this Agreement, you
represent and agree that you have taken advantage of your right to consult with
an attorney or have declined to do so, that you have carefully read and fully
understand all of the provisions of this Agreement and that you are voluntarily
entering into this Agreement.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  TREE.COM, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  /s/
  Claudette Hampton

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  SVP,
  Human Resources

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AGREED, this 29th day of June 2010.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Sign Name:

  	
  /s/
  Christopher Hayek

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