Document:

Exhibit

Exhibit 10.35

SEPARATION AGREEMENT & RELEASE
                                    
This is an Agreement between The Home Depot, Inc. (the "Company") and MARC D. POWERS (the "Executive").
                                    
WHEREAS, subject to the terms herein, Company and Executive intend the terms and conditions of this Agreement to govern all issues related to Executive's employment and termination from Company and its subsidiaries and, except as otherwise expressly provided herein, is intended to supersede and replace the provisions set forth in any of the Executive’s employment letters; and
                                    
WHEREAS, Executive acknowledges that the Executive has been given a reasonable period of time, up to and including twenty-one (21) days, to consider the terms of this Agreement; and
                                    
WHEREAS, Company advises Executive to consult with a lawyer before signing this Agreement; and
                                    
WHEREAS, Executive acknowledges that the consideration provided to Executive under this Agreement is sufficient to support the releases provided by the Executive under this Agreement; and
                                    
WHEREAS, Executive represents that the Executive has not filed any charges, claims or lawsuits against Company involving any aspect of the Executive’s employment that have not been terminated as of the date of this Agreement; and
                                    
WHEREAS, Executive understands that Company regards the above representations by the Executive as material terms of this Agreement and that Company is relying on these representations in entering into this Agreement,
                                    
NOW, THEREFORE, Company and Executive agree as follows:
                                    
1.    Termination Date.  Executive’s termination date shall be February 1, 2016 ("Termination Date"), which shall be the day immediately following the Executive’s last day of work. Executive hereby resigns, effective as of the Termination Date, from any and all positions as an officer or member of the board of directors, as applicable, of The Home Depot, Inc., Home Depot U.S.A., Inc. and each of their parents, subsidiaries and affiliated companies. Executive shall not accrue any vacation days or vacation credit subsequent to the Termination Date. Any remaining accrued, unused vacation will be paid in accordance with the Company’s Standard Operating Procedure for Time-off Benefits.
                                    
2.    Separation Payment.  Executive shall receive eighteen (18) monthly separation payments of $55,833.33 each, subject to applicable tax withholding, commencing within forty-five (45) days of the Termination Date.
                                          

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3.    Bonuses.  Executive will be eligible to receive the financial portion of the Management Incentive Plan ("MIP") bonus that is earned based on actual results for FY2015.  Any earned bonus will be paid to Executive in a lump sum on the next planned MIP payout date (no later than 75 calendar days after fiscal period end and will be subject to applicable tax withholding).  The Company has the sole discretion to determine the amount of any bonus, and there is no guaranteed or minimum bonus.  Executive will not be eligible for bonus payments of any other kind.
                                    
4.    Benefits.  The Executive’s benefits shall end on the Termination Date, pursuant to the terms of such plans and applicable law.  Executive shall receive a lump sum payment of $150,000 (subject to applicable tax withholding) payable no later than fifteen (15) days following April 22, 2016 as a partial off-set for the Executive’s healthcare costs.  Executive shall be eligible to receive COBRA continuation coverage in accordance with terms of the plan and applicable law.  Such coverage is generally available for up to eighteen (18) months, unless Executive is eligible for other coverage.  At the end of such eighteen (18) month period, if Executive is not eligible for other coverage, upon Executive’s request, Company shall assist Executive in securing coverage in the healthcare market.   

5.    Stock Options/Restricted Stock.   

		
	(a)
	All of Executive’s options to purchase Company’s common stock (“Options”) that vested before the Termination Date will be cancelled and forfeited unless exercised by the earlier of: (a) ninety (90) days after the Termination Date; or (b) the expiration of the stock option.  Pursuant to the schedule set forth in Attachment A to this Agreement, 98,934 of Executive’s outstanding, unvested Options will be accelerated to vest on the Termination Date.  These accelerated Options will be cancelled and forfeited unless exercised by the earlier of: (a) ninety (90) days after the Termination Date; or (b) the expiration of the stock option.  All Options are subject to forfeiture for any breach as provided in the paragraph titled Breach by Executive. Executive shall not be eligible to receive any equity-based awards in the future.

		
	(b)
	Pursuant to the schedule set forth in Attachment A to this Agreement, the restrictions on Executive’s 19,283 outstanding restricted shares of Company’s common stock (“Restricted Shares”) are hereby amended to no longer be subject to risk of forfeiture on the Termination Date.  The 19,283 Restricted Shares may not be transferred until the following dates: 4,608 Restricted Shares may be transferred as of March 23, 2016; 1,954 Restricted Shares may be transferred as of September 26, 2016; and 12,721 Restricted Shares may be transferred as of February 01, 2017.  Executive and Company agree that Company shall not be required to issue any share to Executive before the date the share may be transferred, as set forth in this Paragraph 5(b), except to accommodate the sales of shares for tax purposes as set forth in Paragraph 5(c), below.  All other shares of Executive’s Restricted Shares shall be forfeited on the Termination Date.  All 19,283 Restricted Shares are subject to forfeiture for any breach as provided in the paragraph titled Breach by Executive. 

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	(c)
	Executive and Company acknowledge that the Restricted Shares referenced in Paragraph 5(b) shall constitute taxable income to Executive at the time of lapse of risk of forfeiture on the Termination Date; and that the Options referenced in Paragraph 5(a) shall be taxable to Executive when such Options are exercised. Accordingly, Executive acknowledges the Executive’s obligations to pay all related applicable federal, state and local income and employment taxes, and that Company is required to withhold applicable taxes with respect to these Restricted Shares and vested Options. Accordingly, Executive hereby authorizes Company to withhold and surrender to Company a sufficient number of shares necessary to satisfy said withholding obligations.

		
	(d)
	Executive will earn all Performance Shares earned under the terms of Executive’s FY2013-FY2015 Performance Share Award Agreement. Executive’s Performance Share Grants for the FY2014-2016 and FY2015-2017 will be forfeited and Executive will receive a lump sum cash payout in the amount of $1,300,094 in lieu of any payment under these awards.   Such payment will be made no later than fifteen (15) days following April 22, 2016.  Executive will not be entitled to any further payments relating to Performance Shares.    

		
	(e)
	Executive is solely responsible for ensuring that the Executive’s equity awards are properly credited, exercised and handled as provided by the terms of the awards as modified by this Agreement.  Executive acknowledges that the Executive may not rely on the Merrill Lynch website to determine the exercise or expiration dates of the Executive’s equity awards. Executive should direct any inquiries to the Atlanta Branch of Merrill Lynch at 404-264-7274; however, Company is not responsible for any incorrect information Executive might receive from Merrill Lynch.

6.    Outplacement Services.  Executive is eligible for Company-provided outplacement services for a period not to exceed twelve (12) months.  The outplacement service will end the earlier of either (a) the last day of the 12-month period, or (b) Executive's acceptance of other employment. Such services shall be provided through an agency selected by the Company.  Executive will be contacted by the outplacement agency after their executed Agreement is received by the Company.
                                    
7.    Release of Claims.  Executive and the Executive’s heirs, assigns, and agents release, waive and discharge Company, its past and present parents, subsidiaries, affiliates and related entities, and their respective past and present predecessors, successors, assigns, representatives, directors, officers, employees, and agents (collectively “Releasees”) from each and every claim, action or right of any sort, known or unknown, arising on or before the Effective Date.  The foregoing release includes, but is not limited to, any claim of discrimination on the basis of race, sex, religion, sexual orientation, national origin, disability, genetic information, age, or citizenship status; any other claim based on any local, state, or federal prohibition, including but not limited to claims under Title VII of the Civil Rights Act of 1964, as amended, the WARN Act, GINA, the Age Discrimination in Employment Act of 1967, as amended, or the Americans With Disabilities Act; any claim arising out of or related to any alleged express or implied employment contract, any other alleged contract affecting terms and conditions of employment, 

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or a claim alleging a breach of a covenant of good faith and fair dealing; or any claim for back pay, front pay, severance pay, bonus, salary, sick leave, stocks, attorneys’ fees, holiday pay, vacation pay, life insurance, workers’ compensation benefits, health, disability or medical insurance, or any other employee or fringe benefit.  Notwithstanding the foregoing, this Paragraph 7 expressly does not include a release of any claims that cannot be released hereunder by law.
            
8.    Confidential Information and Trade Secrets.  
                                    
		
	(a)
	Executive acknowledges that through the Executive’s employment with Company the Executive was a key employee who acquired and had access to Confidential Information of Company, its parents, subsidiaries, affiliates or related entities.  Executive agrees that the Company may prevent the use or disclosure of its Confidential Information through use of an injunction or other means and acknowledges that the Company (including its parents, subsidiaries, affiliates, and related entities) has taken all reasonable steps necessary to protect the secrecy of the Confidential Information.  Executive further acknowledges that the Executive has not published, disclosed or used any of this Confidential Information except in accordance with the Executive’s duties for Company.  Executive agrees that, for a period of three years after the Effective Date, the Executive will hold in confidence all Confidential Information of Company, its parents, subsidiaries, affiliates or related entities and will not disclose, publish or make use of such Confidential Information.  Executive further agrees to return all documents, disks, or any other item or source containing Confidential Information, or any other property of Company, its parents, subsidiaries, affiliates or related entities, to Company on or before the Effective Date.  If Executive has any question regarding what data or information would be considered by Company to be Confidential Information, Executive agrees to contact the Executive Vice President, Human Resources for written clarification.  "Confidential Information" shall include any data or information, other than trade secrets, that is valuable to Company, its parents, subsidiaries, affiliates or related entities and not generally known to competitors or outsiders, regardless of whether the confidential information is in printed, written, or electronic form, retained in Executive’s memory, or has been compiled or created by Executive.  This includes, but is not limited to: operations, services, information technology, computer systems, marketing, advertising, technical, financial, personnel, staffing, payroll, information about employee compensation and performance, merchandising, strategic planning, product, vendor, supplier, customer or store planning data, construction, data security information or other information similar to the foregoing. 

            

                        

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	(b)
	Executive also acknowledges that through the Executive’s employment with Company the Executive has acquired and had access to Trade Secrets of the Company, its parents, subsidiaries, affiliates or related entities.  Executive agrees that the Company may prevent the use or disclosure of its Trade Secrets through use of an injunction or other means and acknowledges that the Company has taken all reasonable steps necessary to protect the secrecy of the Trade Secrets.  Executive agrees to hold in confidence all Trade Secrets of Company, its parents, subsidiaries, affiliates or related entities that came into the Executive’s knowledge during employment by Company and shall not disclose, publish, or make use of at any time such Trade Secrets for so long as the information remains a Trade Secret.  “Trade Secret” means that information defined by the Georgia Trade Secrets Act, O.C.G.A. Sec. 10-1-761, or other applicable trade secrets statute or act.

                                    
		
	(c)
	If Executive works for a vendor supplying product or services to Company, Executive acknowledges that Company will not conduct business with Executive before February 1, 2017 (“cooling period”).  During the cooling period, Executive will not have any access to Company facilities for business purposes and Executive will not be allowed to participate in any meetings with current Company associates while Executive is working for the supplier/new employer.

                                    
		
	(d)
	Executive further acknowledges that the Executive’s breach of any of Executive’s promises in this Paragraph 8 would result in immediate and irreparable harm to Company, its parents, subsidiaries, affiliates or related entities that cannot be adequately or reasonably compensated at law.  Accordingly, Executive agrees that Company shall be entitled, if any such breach shall occur or be threatened or attempted, if it so elects, to seek from a court a temporary, preliminary, and permanent injunction, without being required to post a bond, enjoining and restraining such breach or threatened or attempted breach by Executive.  

                                    
		
	(e)
	Nothing in this Paragraph 8 prohibits Executive from exercising any of the rights specified in Paragraph 15 (Non-Interference and Right to Participate in Agency Proceedings).

                            

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9.    Non-Competition and Non-Solicitation.
                                    
		
	(a)
	Executive acknowledges that during the Executive’s employment and at the time of Executive’s termination, the Executive provided services to Company, its parents, subsidiaries, affiliates, and related entities (referred to collectively in this paragraph as “entities”) in all locations that these entities conduct business. These services necessarily required Company to disclose the Confidential Information and Trade Secrets of these entities to Executive.  Executive further acknowledges that the Executive’s position allowed the Executive to develop a personal relationship with certain customers, suppliers and vendors of Company, its parents, subsidiaries, affiliates, and related entities, and to acquire knowledge of the affairs and requirements of these customers, suppliers and vendors. The customers, suppliers and vendors with whom Executive has had business dealings with on behalf of these entities are located throughout the world.   As a result, Executive agrees that the Executive will not, on or before August 1, 2017, enter into or maintain an employment, contractual, or other business relationship, either directly or indirectly, to provide to any Competitor executive, operational or managerial services that are the same as or similar to the services Executive provided to the Company, either directly or indirectly, at any point during the last two (2) years of Executive’s employment with the Company.  “Competitor” means any company or entity that sells or offers Products or Services that are the same as or similar to the Products or Services sold and offered by the Company, its parents, subsidiaries, affiliates or related entities, in the United States or Canada.  For the purposes of this Agreement, “Competitor” shall mean the following entities and each of their subsidiaries, affiliates, assigns, franchisees, or successors in interest: Lowe’s Companies, Inc. (including, but not limited to, Eagle Hardware and Garden and/or Orchard Supply and Hardware Company); Sears Holding Corp.; Amazon.com; Menard, Inc.; HD Supply Holdings, Inc.; W.W. Grainger, Inc.; Ferguson; Floor and Decor; Ace Hardware; True Value Company; RONA Inc.; Canadian Tire; Lumber Liquidators; and Wal-Mart.  “Products or Services” means anything of commercial value, including, without limitation: goods; personal, real, or intangible property; services; financial products; business opportunities or assistance; or any other object or aspect of business or the conduct thereof.  

                                    
		
	(b)
	In the event Executive wishes to enter into any relationship or employment on or before August 1, 2017 which would violate  the above non-compete provision, Executive agrees to request written permission from Company’s Executive Vice President, Human Resources before entering any such relationship or employment. Company may approve or not approve of the relationship or employment at its absolute discretion.

        

                            

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	(c)
	Executive acknowledges that through Executive’s employment with the Company, Executive acquired and had access to confidential and proprietary information concerning the performance and qualifications of Company employees.  Accordingly, Executive agrees that on or before February 1, 2018, the Executive will not directly or indirectly, on his or her own behalf or on behalf of any other entity or person, Solicit any person who is an employee of Company, its parents, subsidiaries, affiliates or related entities, with whom Executive had material contact during Executive’s employment, or with respect to whom Executive obtained or had access to Confidential Information, to terminate his or her relationship with Company, its parents, subsidiaries, affiliates or related entities, or to refer any such employee to anyone, without prior written approval from Company’s Executive Vice President, Human Resources.  For purposes of this paragraph, “Solicit” shall include any solicitation, enticement, or encouragement whatsoever, regardless of which party initiated the initial contact, as well as any direct or indirect involvement in the recruitment, referral, interviewing, hiring, or setting of the initial terms and conditions of employment.  

                                    
		
	(d)
	Executive acknowledges that the covenants in this paragraph:  (i) are reasonable, appropriate, necessary, and narrowly tailored to protect the legitimate business interests of Company, its parents, subsidiaries, affiliates, and related entities; (ii) are reasonable in terms of time, geographic scope, and activities restricted; (iii) are designed to prevent unfair competition and not to stifle the inherent skill and experience of Executive; (iv) will not interfere with Executive’s ability to earn a livelihood; and (v) do not confer a benefit upon Company disproportionate to the detriment to Executive.  Executive acknowledges that if the Executive were to breach any of the covenants in this paragraph, such breach would result in immediate and irreparable harm to Company that cannot be adequately or reasonably compensated at law.  Accordingly, Executive agrees that Company shall be entitled, if any such breach shall occur or be threatened or attempted, if it so elects, to seek from a court a temporary, preliminary, and permanent injunction, without being required to post a bond, enjoining and restraining such breach or threatened or attempted breach by Executive.  In addition, the Company will be entitled to recover its reasonable attorney fees if it succeeds in obtaining an injunction against Executive for breach or threatened breach of this paragraph or otherwise proving in court that Executive violated any provision of this paragraph.

                                    
10.    Breach by Executive.  Company’s obligations to Executive under this Agreement are contingent on Executive’s performance of the Executive’s obligations under this Agreement. Any breach by Executive of the terms of this Agreement, including but not limited to the terms of Paragraphs 8 and 9, will result in the immediate cessation of any payments set forth in Paragraph 2 and the immediate cancellation of all Executive’s outstanding equity awards, including any unvested equity with respect to which Executive has satisfied the retirement vesting criteria under the terms of the original equity grant.  The Company will also be entitled to all its other remedies allowed in law or equity, including but not limited to the return of any payments that it made to Executive under this Agreement and the return to Company of any 

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proceeds Executive received from stock options exercised or restricted stock sold after February 1, 2016, to the extent permitted under federal, state and local law.
                            
11.    Executive Availability.  Executive agrees to make himself reasonably available to Company to respond to requests by Company for information pertaining to or relating to Company and its affiliates, subsidiaries, agents, officers, directors or employees which may be within the knowledge of Executive to the extent that such cooperation does not interfere with Executive’s ability to perform his or her current job, in which case Executive and Company would mutually agree upon the timing and extent of Executive’s availability.  However, Executive agrees to cooperate fully with Company in connection with any and all existing or future litigation, charges, or investigations brought by or against Company or any of its past or present affiliates, agents, officers, directors or employees, whether administrative, civil or criminal in nature; but Executive is not required to disclose Executive's participation in matters subject to the Paragraph 15 (Non-Interference and Right to Participate in Agency Proceedings).  In conjunction with Executive’s commitments under this paragraph, Company will reimburse Executive for reasonable out-of-pocket expenses incurred as a result of such cooperation.  The amount of expenses reimbursable by Company under this paragraph in any one calendar year shall not affect the amount reimbursable in any other calendar year, and the reimbursement of an eligible expense under this paragraph shall be made within sixty (60) days after Executive’s written request for reimbursement accompanied with such evidence of expenses incurred as Company may reasonably require, but in any event no later than December 31 of the year after the year in which the expense was incurred.  This paragraph shall expire on Executive’s death and shall not be subject to liquidation or exchange for another benefit.
                                    
12.    Non-Disparagement.  Executive agrees that the Executive will not directly or indirectly publish, communicate, make or cause to be made any statements or opinions that disparage, criticize or that would be derogatory to or otherwise harm the business or reputation of Company, its parents, subsidiaries, affiliates, or related entities, and their respective past and present predecessors, successors, assigns, representatives, directors, officers, employees, and agents to anyone, including but not limited to the media, internet blogs, social media, public interest groups and publishing companies.      Nothing in this Paragraph 12 prohibits Executive from exercising any of the rights specified in Paragraph 15 (Non-Interference and Right to Participate in Agency Proceedings).  
                                    
13.    Insider Trading.  Executive acknowledges that for a period of six (6) months after the Termination Date, Executive will remain subject to the restrictions of Company’s Securities Laws Policy applicable to Directors, Officers, and Designated Associates, which permits trading only during designated window periods.  After expiration of said six (6) month period, the Securities Law Policy will no longer apply to Executive.  However, Executive acknowledges that through the Executive’s employment with Company the Executive may have learned material, non-public information regarding Company.  The federal securities laws prohibit trading by persons while aware of material, non-public information.  Executive should seek advice of the Executive’s legal counsel before conducting any transactions in Company’s stock if Executive thinks the Executive may possess such information.
                        

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14.    Future Employment.  The payments in this Agreement are in consideration for Executive's release of claims, including claims for lost future earnings.  Accordingly, Executive hereby understands and agrees that the Executive will not be re-employed by Company, its subsidiaries, affiliates, parents or related entities in the future and that Executive will never knowingly apply to Company, its subsidiaries, affiliates, parents or related entities for any job or position in the future.
                                    
15.    Non-Interference and Right to Participate in Agency Proceedings.  Nothing in this Agreement is intended to interfere with Executive’s right to report possible violations of law or regulation to, file a charge or cooperate with, or participate in an investigation or proceeding conducted by, any governmental agency or entity, including the Securities and Exchange Commission, the U.S. Equal Employment Opportunity Commission, a state Fair Employment Practices Agency, or any other federal, state, or local regulatory or law enforcement agency.  However, the consideration provided to Executive in this Agreement shall be the sole relief provided to Executive for the claims that are released by the Executive in this Agreement, and Executive expressly acknowledges and agrees to waive, surrender, and give up any personal monetary benefits or recovery against Company or any other of the released entities in connection with any such claim, charge, or proceeding without regard to how the charge, investigation, or proceeding was initiated.
                                    
16.    Severability and Modification of Provisions.   If any of the provisions of this Agreement involving Executive’s post-employment activities should ever be held by a court of competent jurisdiction to exceed the scope permitted by applicable law, or otherwise be deemed to be legally invalid or unenforceable, such provision or provisions shall be automatically modified to such lesser scope as such court may deem just and proper for the reasonable protection of the Company’s legitimate business interests. In the event such provision or provisions cannot be modified to be enforceable, the affected provision shall be stricken from the Agreement, and the remaining terms, provisions, covenants, and restrictions contained in this Agreement shall remain unaffected and will in no way be affected, impaired, or invalidated. 
                                    
17.    Right to Revoke This Agreement.  Executive may revoke this Agreement in writing within seven (7) days of signing it by sending written notice of revocation to Company’s Executive Vice President, Human Resources.  The Agreement will not take effect until the Effective Date.  If Executive revokes this Agreement, all of its provisions shall be void and unenforceable.
                                    
18.    Effective Date.  The Effective Date shall be the day after the end of the seven day period for revocation described in the paragraph titled Right to Revoke This Agreement.
                                    
19.    Non-Assignment by Executive; Successor and Assigns.  Executive represents and warrants that as of the date of this Agreement the Executive has not assigned or transferred, or purported to assign or transfer, to any person, firm, corporation, association or entity whatsoever any released claim.  Executive hereby agrees to indemnify and hold Company harmless against, without any limitation, any and all rights, claims, warranties, demands, debts, obligations, liabilities, costs, court costs, expenses, including attorneys' fees, causes of action or judgments based on or arising out of any such assignment or transfer.  The terms of this 

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Agreement shall be binding on, and in favor of, the Company’s successors in interest and assigns.
                            
20.     Taxes and Section 409A. To the extent applicable, it is intended that this Agreement comply with or be exempt from the provisions of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations and guidance promulgated thereunder (“Section 409A”).   To the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Agreement during the six-month period immediately following Executive’s Termination Date shall instead be paid on the first business day after the date that is six months following Executive’s termination of employment (or upon Executive’s death, if earlier).  In addition, for purposes of the Agreement, each amount to be paid or benefit to be provided to Executive pursuant to the Agreement shall be construed as a separate identified payment for purposes of the Code, including Section 409A.  With respect to expenses eligible for reimbursement under the terms of this Agreement, (i) the amount of such expenses eligible for reimbursement in any taxable year shall not affect the expenses eligible for reimbursement in another taxable year and (ii) any reimbursements of such expenses shall be made no later than the end of the calendar year following the calendar year in which the related expenses were incurred, except, in each case, to the extent that the right to reimbursement does not provide for a “deferral of compensation” within the meaning of Section 409A.  Company makes no representation or warranty to Executive or other person regarding compliance with, or exemption from, Section 409A with respect to any payment or benefit provided by this Agreement.  Executive agrees that the Executive shall bear sole and exclusive responsibility for any and all federal, state, local or other tax consequences (including, without limitation, any and all tax liability under Section 409A) of this Agreement, and fully indemnifies and holds the Company harmless therefore.  Executive should consult with the Executive’s own tax advisor in connection with this Agreement and its tax consequences.                            

21.    Entire Agreement.  This Agreement constitutes the entire understanding between the parties, except that this Agreement does not supersede or limit Executive’s post-employment restrictions or obligations to the Company, its parents, subsidiaries, affiliates or related entities, that may be contained in any other agreement between Executive and the Company, its parents, subsidiaries, affiliates or related entities, such as an offer letter, equity award agreement, or similar document. The parties have not relied on any oral statements that are not included in this Agreement.  Any modifications to this Agreement must be in writing and signed by Company’s Executive Vice President, Human Resources.
                        
22.    Governing Law.  This Agreement shall be construed, interpreted and applied in accordance with the law of the State of Georgia, without giving effect to any choice of law provisions thereof that would require the application of any other jurisdiction’s laws.  Executive hereby irrevocably submits any dispute arising out of or relating to this Agreement to the exclusive jurisdiction of the Atlanta Division of the U.S. District Court for the Northern District of Georgia, or, if federal jurisdiction is not available, the Superior Court of Cobb County, Georgia.    Executive also irrevocably waives, to the fullest extent permitted by applicable law, any objection Executive may now or hereafter have to the laying of venue of any such dispute 

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brought in such court or any defense of inconvenient forum for the maintenance of such dispute, and both parties agree to personal jurisdiction and to accept service of legal process from the courts of Georgia.  Executive agrees to accept service of process by mail or by any other means sufficient to ensure that Executive receives a copy of the items served.
    
Executive understands and acknowledges the significance and consequences of this Agreement, that the consideration provided herein is fair and adequate, and represents that the terms of this Agreement are fully understood and voluntarily accepted.
The Home Depot, Inc.                            

By:      /s/  Tim Crow    
Tim Crow
Executive Vice President, Human Resources

Date Signed:   1/28/16        

Executive
  
By:   /s/ Marc D. Powers
Marc D. Powers
Date Signed:   1/28/16

Page 11 of 11Exhibit 10.2

 

NETSUITE INC.

 

SEVERANCE AND CHANGE OF CONTROL AGREEMENT

 

This Severance and Change of Control Agreement (the “Agreement”) is made and entered into by and between Michael Forman (“Executive”) and NetSuite Inc., a Delaware corporation (the “Company”), effective as of March 21, 2016 (the “Effective Date”).

 

RECITALS

 

1.                                      It is possible that the Company could terminate Executive’s employment with the Company and it is expected that the Company from time to time will consider the possibility of an acquisition by another company or other change of control.  The Board of Directors of the Company (the “Board”) recognizes that such considerations can be a distraction to Executive and can cause Executive to consider alternative employment opportunities.  The Board has determined that it is in the best interests of the Company and its stockholders to assure that the Company will have the continued dedication and objectivity of Executive, notwithstanding the possibility, threat or occurrence of such a termination of employment or the occurrence of a Change of Control (as defined herein) of the Company.

 

2.                                      The Board believes that it is in the best interests of the Company and its stockholders to provide Executive with an incentive to continue his employment and to motivate Executive to maximize the value of the Company for the benefit of its stockholders.

 

3.                                      The Board believes that it is imperative to provide Executive with certain severance benefits upon Executive’s termination of employment and with certain additional benefits upon a Change of Control.  These benefits will provide Executive with enhanced financial security and incentive and encouragement to remain with the Company.

 

4.                                      Certain capitalized terms used in the Agreement are defined in Section 6 below.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto agree as follows:

 

1.                                      Term of Agreement.  This Agreement will terminate upon the date that all of the obligations of the parties hereto with respect to this Agreement have been satisfied.

 

2.                                      At-Will Employment.  The Company and Executive acknowledge that Executive’s employment is and will continue to be at-will, as defined under applicable law, except as may otherwise be specifically provided under the terms of any written formal employment agreement between the Company and Executive (an “Employment Agreement”).  Upon any termination of employment, the Company will pay Executive all accrued but unpaid vacation, expense reimbursements, wages and other benefits due to Executive under any Company-provided plans, policies and arrangements (“Accrued Compensation”), but will not be entitled to any other payments, benefits, damages, awards or compensation other than as provided by this Agreement.

 

 

3.                                      Severance Benefits.

 

(a)                                 Termination without Cause and not in Connection with a Change of Control.  If the Company (or any Affiliate) terminates Executive’s employment with the Company (or any Affiliate), for a reason other than Cause, Executive becoming Disabled or Executive’s death at any time other than during the period commencing three (3) months before and ending twelve (12) months after a Change of Control, then, subject to Section 4, Executive will receive the following severance benefits from the Company:

 

(i)                                     Accrued Compensation.  The Company will pay Executive all Accrued Compensation.

 

(ii)                                  Severance Payment.  Executive will be paid continuing payments of severance pay at a rate equal to Executive’s base salary rate, as then in effect, for twelve (12) months from the date of such termination of employment, to be paid periodically in accordance with the Company’s normal payroll policies.

 

(iii)                               Pro-Rated Bonus Payment.

 

(1)                                 No Participation in a Section 162(m) Cash Bonus Plan.  If at the time of termination Executive is not participating in a cash bonus plan intended to qualify awards eligible to be earned thereunder as “performance based compensation” for purposes of Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), Executive will receive a lump-sum severance payment equal to one hundred percent (100%) of Executive’s target bonus as in effect for the fiscal year in which Executive’s termination occurs, pro-rated by multiplying such bonus amount by a fraction, the numerator of which shall be the number of days from and including the first day of such fiscal year through and including the date of Executive’s termination, and the denominator of which shall be three-hundred and sixty-five (365).

 

(2)                                 Participation in a Section 162(m) Cash Bonus Plan.  If at the time of termination Executive is participating in a cash bonus or incentive plan intended to qualify the awards as “performance based compensation” for purposes of Code Section 162(m), Executive will be entitled to receive the award Executive would have otherwise received had Executive remained employed by the Company through the end of the applicable performance period (and through the date of payment if continued employment through such date would be required to earn the bonus), but without the Board or any committee of the Board exercising any negative discretion to reduce the amount of the award, pro-rated by multiplying such bonus amount by a fraction, the numerator of which shall be the number of days from and including the first day of such fiscal year through and including the date of Executive’s termination, and the denominator of which shall be three-hundred and sixty-five (365).  The amount will be paid in a lump sum payment in cash at the same time awards are otherwise paid to other senior executives participating in that or a similar incentive plan or arrangement.

 

(iv)                              Equity.

 

(1)                                 Service-Based Vesting.  Subject to the provisions of Section 3(a)(iv)(2) below, all of Executive’s unvested and outstanding equity awards that would have become vested had Executive remained in the employ of the Company for the twelve (12) month period following Executive’s termination of employment shall immediately vest and become exercisable as of the date of Executive’s termination.

 

2

 

(2)                                 Performance-Based Vesting.  If an outstanding equity award is to vest, and/or the amount of the award to vest, is to be determined, in part or in whole, based on the achievement of performance criteria, and the performance period for achievement of such performance will expire within the twelve (12) month period following Executive’s termination of employment, then the equity award will vest as to the amount of the equity award that would have vested had Executive remained employed through such twelve (12) month period and the determination of the achievement of the performance criteria by the Administrator (with the amount of the award vesting based upon the extent to which the performance criteria was so determined to have been achieved).  The settlement of any awards that vest pursuant to the preceding sentence shall take place at the time the Administrator determines to what extent the performance criteria for the performance period have been achieved.  If the performance period for achievement of such performance will not expire within the twelve (12) month period following Executive’s termination of employment, then award will terminate unvested upon Executive’s termination and Executive will not be entitled to any shares or other payment of consideration with respect to the award.

 

For purposes of clarification, if there are any service-based vesting criteria that would normally be required to be satisfied following the achievement of the performance criteria, the vesting will be accelerated in accordance with Section 3(a)(iv)(1) above.

 

(3)                                 Extension of Post-Termination Exercise Period.  In addition, with respect to equity awards granted after the Effective Date, Executive will have twelve (12) months following any such termination of employment in which to exercise any stock options, stock appreciation rights, or similar rights to acquire Company common stock, but in no event will such equity award be permitted to be exercised beyond the earlier of the original maximum term of such equity award or ten (10) years from the original grant date of such equity award.

 

(v)                                 Outplacement Benefits.  If requested by Executive, the Company will pay the expense for outplacement benefits provided by a service to be determined by the Company in its discretion for a period of up to twelve (12) months following Executive’s termination.

 

(vi)                              Continued Employee Benefits.  Executive will receive Company-paid coverage for a period of twelve (12) months for Executive and Executive’s eligible dependents under the Company’s Benefit Plans.

 

(vii)                           Payments or Benefits Required by Law.  Executive will receive such other compensation or benefits from the Company as may be required by law (for example, Title X of the Consolidated Budget Reconciliation Act of 1985, as amended (“COBRA”)).

 

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(b)               Termination without Cause or Resignation for Good Reason in Connection with a Change of Control.  If during the period commencing three (3) months before and ending twelve (12) months after a Change of Control, (1) Executive terminates his employment with the Company (or any Affiliate) for Good Reason or (2) the Company (or any Affiliate) terminates Executive’s employment for other than Cause, Executive becoming Disabled or Executive’s death, then, subject to Section 4, Executive will receive the following severance from the Company:

 

(i)                                     Accrued Compensation.  The Company will pay Executive all Accrued Compensation.

 

(ii)                                  Severance Payment.  Executive will receive a lump sum severance payment equal to twelve (12) months of Executive’s annual base salary as in effect immediately prior to Executive’s termination date or (if greater) at the level in effect immediately prior to the Change of Control.

 

(iii)                               Bonus Payment.  Executive will receive a lump sum severance payment equal to one hundred percent (100%) of the higher of (x) Executive’s target bonus as in effect for the fiscal year in which the Change of Control occurs or (y) Executive’s target bonus as in effect for the fiscal year in which Executive’s termination occurs.

 

(iv)                              Equity.

 

(1)                                 Service-Based Vesting.  Subject to the provisions of Section 3(b)(iv)(2) below, Executive will be entitled to accelerated vesting as to one hundred percent (100%) of the then unvested portion of all of Executive’s outstanding equity awards.

 

(2)                                 Performance-Based Vesting.  If an outstanding equity award is to vest and/or the amount of the award to vest is to be determined based on the achievement of performance criteria, then the equity award will vest as follows:

 

a)                                     as to the amount of the award that the Company had estimated as likely to be achieved for the full performance period and had been using for financial accounting accrual purposes for the last full fiscal quarter prior to the Change of Control.  For instance, if the Company had been accruing for the award as if performance targets were likely to be achieved at 105% of target for the full performance period for the last full fiscal quarter prior to the Change of Control, then the award will vest as if the performance targets had actually been achieved at 105% of target for the full performance period.

 

b)                                     if as to any portion of an equity award the Company had not made any estimates as to the achievement of the performance criteria for the full performance period for financial accounting accrual purposes for the last full fiscal quarter prior to the Change of Control, then one hundred percent (100%) of the amount of such portion of the equity award assuming the performance criteria for that portion been achieved at target levels for the relevant performance period(s).

 

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For purposes of clarification, if there are any service-based vesting criteria that would normally be required to be satisfied following the achievement of the performance criteria, the vesting will be accelerated in full pursuant to Section 3(b)(iv)(1) above.

 

(3)                                 Extension of Post-Termination Exercise Period.  In addition, with respect to equity awards granted after the Effective Date, Executive will have twelve (12) months following any such termination of employment in which to exercise any stock options, stock appreciation rights, or similar rights to acquire Company common stock, but in no event will such equity award be permitted to be exercised beyond the earlier of the original maximum term of such equity award or ten (10) years from the original grant date of such equity award.

 

(v)                                 Continued Employee Benefits.  Executive will receive Company-paid coverage for a period of twelve (12) months for Executive and Executive’s eligible dependents under the Company’s Benefit Plans.

 

(vi)                              Outplacement Benefits.  If requested by the Executive, the Company will pay the expense for outplacement benefits provided by a service to be determined by the Company in its discretion for a period of twelve (12) months following Executive’s termination.

 

(vii)                           Payments or Benefits Required by Law.  Executive will receive such other compensation or benefits from the Company as may be required by law (for example, COBRA).

 

For purposes of Section 3(a) and (b), if Executive’s employment with the Company or one of its Affiliates terminates, he will not be determined to have been terminated without Cause, provided he continues to remain employed by the Company or one of its Affiliates (e.g., upon transfer from one Affiliate to another); provided, however, that the parties understand and acknowledge that any such termination could potentially result in Executive’s ability to resign for Good Reason under Section 3(b).

 

(c)                                  Disability; Death.  If Executive’s employment with the Company (or any Affiliate) is terminated due to Executive’s becoming Disabled or Executive’s death, then Executive or Executive’s estate (as the case may be) will (i) receive the earned but unpaid base salary through the date of termination of employment, (ii) receive all accrued vacation, expense reimbursements and any other benefits due to Executive through the date of termination of employment in accordance with Company-provided or paid plans, policies and arrangements, and (iii) not be entitled to any other compensation or benefits from the Company except to the extent required by law (for example, COBRA).

 

(d)                                 Voluntary Resignation; Termination for Cause.  If Executive voluntarily terminates Executive’s employment with the Company or any Affiliate (other than for Good Reason during the period that commences three (3) months before a Change of Control and ends twelve (12) months after a Change of Control) or if the Company (or any Affiliate) terminates Executive’s employment with the Company (or any Affiliate) for Cause, then Executive will (i) receive his earned but unpaid base salary through the date of termination of employment, (ii) receive all accrued vacation, expense reimbursements and any other benefits due to Executive through the date of termination of employment in accordance with established Company-provided or paid plans, policies and arrangements, and (iii) not be entitled to any other compensation or benefits (including, without limitation, accelerated vesting of any equity awards) from the Company, except to the extent provided under agreement(s) relating to any equity awards or as may be required by law (for example, COBRA).

 

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(e)                                  Exclusive Remedy.  In the event of a termination of Executive’s employment, the provisions of this Agreement are intended to be and are exclusive and in lieu of and supersede any other rights or remedies to which Executive or the Company (or any Affiliate) may otherwise be entitled, whether at law, tort or contract (including, without limitation, Executive’s Employment Agreement) or in equity.  Executive will be entitled to no benefits, compensation or other payments or rights upon termination of employment other than those benefits expressly set forth in this Agreement.

 

4.                                      Conditions to Receipt of Severance

 

(a)                                 Release of Claims Agreement.  The receipt of any severance payments or benefits pursuant to this Agreement is subject to Executive signing and not revoking a separation agreement and release of claims in a form acceptable to the Company (the “Release”), which must become effective no later than the sixtieth (60th) day following Executive’s termination of employment (the “Release Deadline”), and if not, Executive will forfeit any right to severance payments or benefits under this Agreement.  To become effective, the Release must be executed by Executive and any revocation periods (as required by statute, regulation, or otherwise) must have expired without Executive having revoked the Release.  In addition, in no event will severance payments or benefits will be paid or provided until the Release actually becomes effective.

 

(b)                                 Non-solicitation and Non-competition.  Executive agrees, to the extent permitted by applicable law, that in the event the Executive receives severance pay or other benefits pursuant to Sections 3(a) and (b) above, for the twelve (12) consecutive month period immediately following the date of Executive’s termination, Executive, as a condition to receipt of severance pay and benefits under Sections 3(a) and (b), will not (i) either directly or indirectly, solicit, induce, attempt to hire, recruit, encourage or take away any employee of the Company (or any affiliate of the Company) or cause an employee to leave his employment either for Executive or for any other entity or person, (ii) for Executive or on behalf of any other person or entity, directly or indirectly, whether for compensation or not, solicit, divert, or appropriate, for purposes of competing with the Company (or any affiliate of the Company) any customers or clients of the Company (or any affiliate of the Company) or any prospective customers or clients with respect to which the Company (or an affiliate of the Company) has developed or made a sales presentation (or similar offering of products or services) during the twelve (12) month period prior to Executive’s termination, or (iii) without the express written consent of the Company, directly or indirectly engage in, enter the employ, have any ownership interest in, or participate in any entity that as of the date of involuntary termination, engages in the design, development, manufacture, production, marketing, sale or servicing of any product or the provision of any service that competes with any service offered by the Company or any product sold by the Company or under development by the Company; provided, however, that ownership of less than one percent (1%) of the outstanding stock of any publicly traded corporation will not be deemed to be violative of the restrictive covenant set forth in this paragraph.  In the event Executive violates the provisions of this paragraph, all severance pay and other benefits pursuant to Section 3 shall cease immediately.

 

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Notwithstanding the provisions of the preceding paragraph, if Executive becomes a permanent resident of the state of California and remains a resident through the date of termination, in lieu of the covenants in the above paragraph, Executive agrees, to the extent permitted by applicable law, that in the event the Executive receives severance pay or other benefits pursuant to Sections 3(a) and (b) above, for the twelve (12) consecutive month period immediately following the date of Executive’s termination, Executive, as a condition to receipt of severance pay and benefits under Sections 3(a) and (b), will not directly or indirectly, solicit, induce, recruit, any employee of the Company to leave his employment either for Executive or for any other entity or person.  In the event Executive violates the provision in the preceding sentence, all severance pay and other benefits pursuant to Section 3 shall cease immediately.

 

The covenants contained in this Section 4(b) hereof shall be construed as a series of separate covenants, one for each country, province, state, city or other political subdivision in which the Company currently engages in its business or, during the term of this Agreement, becomes engaged in its business.  Except for geographic coverage, each such separate covenant shall be deemed identical in terms to the covenant contained in this Section 4(b).  If, in any judicial proceeding, a court refuses to enforce any of such separate covenants (or any part thereof), then such unenforceable covenant (or such part) shall be eliminated from this Agreement to the extent necessary to permit the remaining separate covenants (or portions thereof) to be enforced.  In the event that the provisions of this Section 4(b) are deemed to exceed the time, geographic or scope limitations permitted by applicable law, then such provisions shall be reformed to the maximum time, geographic or scope limitations, as the case may be, permitted by applicable law.

 

(c)                                  Section 409A.

 

(i)                                     Notwithstanding anything to the contrary in this Agreement, no severance pay or benefits to be paid or provided to Executive, if any, pursuant to this Agreement, when considered together with any other severance payments or separation benefits that are considered deferred compensation under Code Section 409A, and the final regulations and any guidance promulgated thereunder (“Section 409A”) (together, the “Deferred Compensation Separation Benefits”) will be paid or otherwise provided until Executive has a “separation from service” within the meaning of Section 409A.

 

(ii)                                  Any severance payments or benefits under this Agreement that would be considered Deferred Compensation Severance Benefits will be paid on, or, in the case of installments, will not commence until, the sixtieth (60th) day following Executive’s separation from service, or, if later, such time as required by Section 4(c)(iii).  Any installment payments that would have been made to Executive during the sixty (60) day period immediately following Executive’s separation from service but for the preceding sentence will be paid to Executive on the sixtieth (60th) day following Executive’s separation from service and the remaining payments shall be made as provided in this Agreement.

 

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(iii)                               Notwithstanding anything to the contrary in this Agreement, if Executive is a “specified employee” within the meaning of Section 409A at the time of Executive’s termination, then the Deferred Compensation Separation Benefits that are payable within the first six (6) months following Executive’s separation from service, will become payable on the first payroll date that occurs on or after the date six (6) months and one (1) day following the date of Executive’s separation from service.  All subsequent Deferred Compensation Separation Benefits, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit.  Notwithstanding anything herein to the contrary, if Executive dies following Executive’s separation from service, but prior to the six (6) month anniversary of the separation from service, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of Executive’s death and all other Deferred Compensation Separation Benefits will be payable in accordance with the payment schedule applicable to each payment or benefit.  Each payment and benefit payable under this Agreement is intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.

 

(iv)                              Any amount paid under this Agreement that satisfies the requirements of the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations shall not constitute Deferred Compensation Separation Benefits for purposes of clause (i) above.

 

(v)                                 Amount paid under the Agreement that qualifies as a payment made as a result of an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that do not exceed the Section 409A Limit shall not constitute Deferred Compensation Separation Benefits for purposes of clause (i) above.  For this purpose, “Section 409A Limit” means the lesser of two (2) times: (A) Executive’s annualized compensation based upon the annual rate of pay paid to Executive during Executive’s taxable year preceding the taxable year of Executive’s termination of employment as determined under Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto; or (B) the maximum amount that may be taken into account under a qualified plan pursuant to Code Section 401(a)(17) for the year in which Executive’s employment is terminated.

 

(vi)                              The foregoing provision is intended to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply.  The Company and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A.

 

5.                                      Limitation on Payments.  In the event that the severance and other benefits provided for in this Agreement or otherwise payable to Executive (i) constitute “parachute payments” within the meaning of Code Section 280G and (ii) but for this Section 5, would be subject to the excise tax imposed by Code Section 4999, then Executive’s severance benefits under Section 3 will be either:

 

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(a)                           delivered in full, or

 

(b)                           delivered as to such lesser extent which would result in no portion of such severance benefits being subject to excise tax under Code Section 4999,

 

whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Code Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of severance benefits, notwithstanding that all or some portion of such severance benefits may be taxable under Code Section 4999.  Unless the Company and Executive otherwise agree in writing, any determination required under this Section 4 will be made in writing by the Company’s independent public accountants immediately prior to Change of Control (the “Accountants”), whose determination will be conclusive and binding upon Executive and the Company for all purposes.  For purposes of making the calculations required by this Section 5, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Code Sections 280G and 4999.  The Company and Executive will furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section.  The Company will bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 5.  If a reduction in severance and other benefits constituting “parachute payments” is necessary so that benefits are delivered to a lesser extent, reduction will occur in the following order: reduction of outplacement benefits; reduction of severance and pro-rata bonus; cancellation of vesting acceleration; reduction of COBRA continuation coverage.

 

6.                                      Definition of Terms.  The following terms referred to in this Agreement will have the following meanings:

 

(a)                           Affiliate.  “Affiliate” means the Company and any other parent or subsidiary corporation of the Company, as such terms are defined in Code Section 424(e) and (f).

 

(b)                           Benefit Plans.  “Benefit Plans” means plans, policies or arrangements that the Company sponsors (or participates in) and that immediately prior to Executive’s termination of employment provide Executive and/or Executive’s eligible dependents with medical, dental, vision and similar benefits.  Benefit Plans do not include any other type of benefit (including, but not by way of limitation, disability, life insurance, or retirement benefits).  A requirement that the Company provide Executive and Executive’s eligible dependents with coverage under the Benefit Plans will not be satisfied unless the coverage is no less favorable than that provided to executives of the Company at any applicable time during the period Executive is entitled to receive severance pursuant to Section 3.  The Company may, at its option, satisfy any requirement that the Company provide coverage under any Benefit Plan by (i) reimbursing Executive’s premiums under COBRA after Executive has properly elected continuation coverage under COBRA (in which case Executive will be solely responsible for electing such coverage for his eligible dependents), or (ii) providing coverage under a separate plan or plans providing coverage that is no less favorable.  In addition, and notwithstanding anything to the contrary in this definition, if the Company determines in its sole and reasonable discretion that it cannot coverage as described in this definition without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company will in lieu thereof provide to Executive a taxable monthly payment in an amount equal to the monthly COBRA premium that Executive would be required to pay to continue his group health coverage in effect on the date of such termination, which payments will be made regardless of whether Executive elects COBRA continuation coverage.

 

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(c)                            Cause.  “Cause” means (i) Executive’s failure to devote sufficient time and effort to the performance of his duties; (ii) Executive’s continued failure to perform his employment duties, (iii) Executive’s repeated unexplained or unjustified absences from the Company; (iv) Executive’s material and willful violation of any federal or state law which if made public would injure the business or reputation of the Company; (v) Executive’s refusal or willful failure to act in accordance with any specific lawful direction or order of the Company or stated written policy of the Company; (vi) Executive’s commission of any act of fraud with respect to the Company; or (vii) Executive’s conviction of, or plea of nolo  contendere to, a felony or a crime involving moral turpitude causing material harm to the standing and reputation of the Company, in each case as reasonably determined by the Company or the Board.  The Company may not terminate the employment of an Executive under clause (i), (ii), or (iii) above unless the Company (1) provides Executive with a written notice that specifically sets forth the factual basis to support the Company’s right to terminate Executive’s employment under clause (i), (ii), or (iii) above, and (2) permits Executive to cure such failure, to the Company’s satisfaction, within 10 business days after receiving such notice.

 

(d)                           Change of Control.  “Change of Control” means the occurrence of any of the following:

 

(i)                                          Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), except Tako Ventures, LLC, or an affiliate of Tako Ventures, LLC, that becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the total voting power represented by, or more than fifty percent (50%) of the fair value of, the Company’s then outstanding voting securities; provided, however, that for purposes of this subsection (d), the acquisition of additional securities by any one person, who is considered to own more than fifty percent (50%) of the total voting power of the securities of the Company shall not be considered a Change of Control; or

 

(ii)                                       Any action or event occurring within an one-year period, as a result of which less than a majority of the directors are Incumbent Directors.  “Incumbent Directors” will mean directors who either (A) are directors of the Company as of the date hereof, or (B) are elected, or nominated for election, to the Board with the affirmative votes of a majority of the Incumbent Directors at the time of such election or nomination (but will not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company); or

 

(iii)                                    The consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving or resulting entity, including any parent holding company) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving or resulting entity outstanding immediately after such merger or consolidation; or

 

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(iv)                                   A change in the ownership of a substantial portion of the Company’s assets which occurs on the date that any person acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, that for purposes of this Section 6(d)(iv), a transfer of assets by the Company to any of the following shall not constitute a change in the ownership of a substantial portion of the Company’s assets: (1) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company’s securities; (2) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company; (3) a person, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the Company; or (4) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a person described in clause (3).  For purposes of this subsection (iv), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.

 

Notwithstanding the foregoing, a Company transaction that does not constitute a change in control event under Code Section 409A(a)(2)(A)(v) shall be not be considered a Change of Control for purposes of this Agreement.

 

(e)                            Disability.  “Disability” will mean that Executive has been unable to perform his Company duties as the result of his incapacity due to physical or mental illness, and such inability, at least twenty-six (26) weeks after its commencement or one hundred and eighty (180) days in any consecutive twelve (12) month period, is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to Executive or Executive’s legal representative (such agreement as to acceptability not to be unreasonably withheld).  Termination resulting from Disability may only be effected after at least thirty (30) days’ written notice by the Company of its intention to terminate Executive’s employment.  In the event that Executive resumes the performance of substantially all of his duties hereunder before the termination of his employment becomes effective, the notice of intent to terminate will automatically be deemed to have been revoked.

 

(f)                             Good Reason.  “Good Reason” means Executive’s resignation within thirty (30) days following the expiration of any Company cure period following the occurrence of one or more of the following, without the Executive’s written consent: (i) the significant reduction of Executive’s duties, authority, responsibilities, or reporting relationships relative to Executive’s duties, authority, responsibilities, or reporting relationships as in effect immediately prior to such reduction, or the assignment to Executive of such reduced duties, authority, responsibilities, or reporting relationships; provided, however, that a reduction in position or responsibilities solely by virtue of a Change in Control shall not constitute “Good Reason”; (ii) a reduction of more than five percent of Executive’s Base Salary in any one year; (iii) a reduction by more than ten percent of Executive’s total target annual cash compensation in any one year (which consists of Executive’s

 

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Base Salary plus target bonus incentive compensation); (iv) the material change in the geographic location at which Executive must perform services (for these purposes, the relocation of Executive to a facility that is more than twenty-five (25) miles from Executive’s current employment location will be considered material); (v) the failure of the Company to obtain assumption of this Agreement by any successor; and (vi) the breach by the Company of a material provision of this Agreement.  For purposes of clause (i), Executive’s duties, authority, responsibilities, and reporting relationships will be deemed to have been significantly reduced if Executive does not (a) hold at least the same position (or its equivalent, including responsibility over at least the same functional areas as prior to the Change in Control) with the Company business or the business with which such business is operationally merged or subsumed, or (b) remain a member of the executive officer management staff of the Company business or the business with such business is operationally merged or subsumed.  Executive will not resign for Good Reason without first providing the Company with written notice within ninety (90) days of the event that Executive believes constitutes “Good Reason” specifically identifying the acts or omissions constituting the grounds for Good Reason and a reasonable cure period of not less than thirty (30) days following the date of such notice.

 

7.                                      Successors.

 

(a)                           The Company’s Successors.  Any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets will assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession.  For all purposes under this Agreement, the term “Company” will include any successor to the Company’s business and/or assets which executes and delivers the assumption agreement described in this Section 7(a) or which becomes bound by the terms of this Agreement by operation of law.

 

(b)                           Executive’s Successors.  The terms of this Agreement and all rights of Executive hereunder will inure to the benefit of, and be enforceable by, Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

 

8.                                      Notice.

 

(a)                           General.  Notices and all other communications contemplated by this Agreement will be in writing and will be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid.  In the case of Executive, mailed notices will be addressed to him at the home address which he most recently communicated to the Company in writing.  In the case of the Company, mailed notices will be addressed to its corporate headquarters, and all notices will be directed to the attention of its General Counsel.

 

(b)                           Notice of Termination.  Any termination by the Company for Cause or by Executive for Good Reason will be communicated by a notice of termination to the other party hereto given in accordance with Section 8(a) of this Agreement.  Such notice will indicate the specific termination provision in this Agreement relied upon, will set forth in reasonable detail the

 

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facts and circumstances claimed to provide a basis for termination under the provision so indicated, and will specify the termination date (which will be not more than thirty (30) days after the giving of such notice).  The failure by Executive to include in the notice any fact or circumstance which contributes to a showing of Good Reason will not waive any right of Executive hereunder or preclude Executive from asserting such fact or circumstance in enforcing his rights hereunder.

 

9.                                      Miscellaneous Provisions.

 

(a)                           No Duty to Mitigate.  Executive will not be required to mitigate the amount of any payment contemplated by this Agreement, nor will any such payment be reduced by any earnings that Executive may receive from any other source.

 

(b)                           Waiver.  No provision of this Agreement will be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by Executive and by an authorized officer of the Company (other than Executive).  No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party will be considered a waiver of any other condition or provision or of the same condition or provision at another time.

 

(c)                            Headings.  All captions and section headings used in this Agreement are for convenient reference only and do not form a part of this Agreement.

 

(d)                           Entire Agreement.  This Agreement, together with any Employment Agreement, constitutes the entire agreement of the parties hereto and supersedes in their entirety all prior representations, understandings, undertakings or agreements (whether oral or written and whether expressed or implied) of the parties with respect to the subject matter hereof.  No waiver, alteration, or modification of any of the provisions of this Agreement will be binding unless in writing and signed by duly authorized representatives of the parties hereto and which specifically mention this Agreement.

 

(e)                            Choice of Law.  The validity, interpretation, construction, and performance of this Agreement will be governed by the laws of the State of California (with the exception of its conflict of laws provisions).  Any claims or legal actions by one party against the other arising out of the relationship between the parties contemplated herein (whether or not arising under this Agreement) will be commenced or maintained in any state or federal court located in the jurisdiction where Executive resides, and Executive and the Company hereby submit to the jurisdiction and venue of any such court.

 

(f)                             Severability.  The invalidity or unenforceability of any provision or provisions of this Agreement will not affect the validity or enforceability of any other provision hereof, which will remain in full force and effect.

 

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(g)                            Withholding.  All payments made pursuant to this Agreement will be subject to withholding of applicable income and employment taxes.

 

(h)                           Counterparts.  This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

 

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IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year set forth below.

 

 

	
COMPANY
    	
NETSUITE   INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Douglas P. Solomon
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
SVP,   General Counsel & Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTIVE
    	
/s/   Michael Forman
    

 

15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]