Document:

ex10_1.htm

 

 

SHARE PURCHASE ARGEEMENT TERM SHEET

 

Monday, November 22, 2010

 

Roadships Holdings, Inc

 

Share purchase of

 

Royans Brisbane Pty Ltd

 

 

MC Capital

Level 29 Chifley Tower

2 Chifley Square

Sydney NSW 2000

Australia

ABN 55 135 660 427

AFSL 329 133

	
PROJECT ROADSHIPS HOLDINGS –

HEADS OF AGREEMENT

 

between

 

Royans Brisbane Pty Ltd  (“Royans Brisbane”)

ACN 002 670 484

17/23 Alfred Rd

Chipping Norton NSW 2170

Australia

 

and

Roadships Acquisitions Australia Limited (“Roadships Acquisitions”)

ACN 135 439 753

15/31 Governor Macquarie Drive

Chipping Norton NSW 2170

Australia

 

and

Roadships Holdings Incorporated (“Roadships Holdings”)

525 North Tryon Street, Suite 1600

Charlotte North Carolina 28202

United States of America

 

and

Peter Royan (“Peter Royan”)

17/23 Alfred Rd

Chipping Norton NSW 2170

Australia

 

 

	
1.Transaction overview

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	
 

• Roadships Acquisitions aims to acquire 100% of the shares on issue for Royans Brisbane in exchange for ordinary shares, preference shares and options in its parent company Roadships Holdings.

 

 

• Roadships Holdings is a Delaware based public corporation listed on the U.S. Over The Counter Bulletin Board (“OTC-BB”) exchange with the ticker RDSH. Roadships Holdings is an emerging company in the short-sea and ground freight industry sectors operating though its wholly owned subsidiaries in the United States and Australia. Roadships is also a builder of Short Sea Ships in partnership with STX Canada Marine Inc. Roadships Holdings aims to provide superior short sea and ground freight solutions to its clients throughout the world

 

 

• Royans Brisbane provides specialist repair services to the heavy transport industry on the East-coast of Australia. Initially founded in 1944, Royans Brisbane has highly experience personnel who pride themselves on excellent levels of service.

 

 

• It is Roadships Acquisitions’ objective to expand its Australian operations such that the parent company Roadships Holdings may satisfy the minimum revenue requirements as specified in the National Association of Securities Dealers Automated Quotations (“NASDAQ”) listing rules. Subsequent to this funding for further acquisitions will occur through an initial public offer (“IPO”) of shares in Roadships Holdings.

 

 

• This Heads of Agreement (“HoA”) sets out the key terms for the acquisition of all shares on issue for Royans Brisbane by Roadships Acquisitions, the process and timetable for ordinary shares in Roadships Holdings and the involvement of Royans Brisbane and its management in the ongoing operations of Roadships Acquisitions.

 

	
2. Purchase Consideration

 

 

 

 

 

 

	
 

• Roadships Holdings will offer to acquire the Leasehold property at Corner Industrial and Campbell Roads, Wacol QLD 4076 (Wacol) and all of the issued shares of Royans Brisbane for the following consideration (subject to adjustment and a maximum payment as set out below and free of undisclosed encumbrances and other third party rights) (“Purchase Consideration”):

 

 

• (2.1)  Settlement of the existing loan on the Leasehold property at Wacol to the value of $1.6 million on or before 31 January 2011;

 

 

• (2.2) The Leasehold property at Wacol, currently owned by Putoke Alinton Pty Ltd as trustee of the Putoke No. 2 Unit Trust, for $6 million

 

 

• (2.3)  100% of the issued shares of Royans Brisbane for $6 million

 

 

• Roadships Holdings will satisfy the Purchase Consideration in scrip as set out in 3.3 below.

 

	
3. Consideration Terms

	
 

• The Purchase Consideration is made up of the following payments:

 

 

• (3.1) “First Payment” as set out in 2.1 above,

 

 

• (3.2) “Second Payment” made upon completion of sale and purchase of the Leasehold property as set out in 2.2 above,

 

 

• (3.3) “Third payment” made upon competition of the sale and purchase of the shares as set out in 2.3 above, 

 

 

• (3.4) The payments relating to 3.2 and 3.3 above will be paid 100% in scrip to be satisfied via the following issues and transfers

 

 

• (3.4.1) 10 million preference shares in Roadships Holdings to be issued to Peter Royans,

 

 

• (3.4.2) 5 million common shares in Roadships Holdings to be issued to Peter Royans,

 

 

• (3.4.3) 3 million free trading shares in Roadships Holdings,

 

 

• (3.4.4) 4 million options in Roadships Holdings exercisable at par with a strike price of 25 cents each to be issued to Peter Royans

 

 

• (3.5) The payments relating to 3.1 above will be paid in cash to Putoke Alinton Pty Ltd as trustee of the Putoke No. 2 Unit Trust or as otherwise directed in writing by Peter Royan.

 

 

• The Effective Date will be taken as 1 December 2010 when the payments described in 3.2, 3.3 and 3.4 shall be made. Roadships Acquisitions will be entitled to all of the benefits and liabilities and to report the profit of Royans Brisbane from the Effective Date.

 

 

• In this HoA, ‘$’ means the lawful currency of the Commonwealth of Australia.

 

	
4. Offer conditions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	
 

• The Roadships Acquisitions offer has been made on the basis of a number of assumptions including:

 

 

o full disclosure of all encumbrances relating to Royans Brisbane and the Leasehold property Wacol;

 

 

o sufficient working capital in Royans Brisbane at the Effective Date to fund at least three months future operations;

 

 

o the forecast overhead expenses, include all costs required for Royans Brisbane to operate on a standalone basis; and

 

 

o reasonable and achievable financial forecast for the financial year 2011 and 2012

 

 

• Roadships Acquisitions’ offer range is made subject to full and complete due diligence on Royans Brisbane and the following key conditions:

 

 

o commercial due diligence by Royans Brisbane to Roadships Acquisitions’ satisfaction;

 

 

o satisfactory detailed accounting and legal due diligence required as part of an IPO including an investigating accountants report and forecast review;

 

 

o implementation of three years service agreement(s) with Key Management. For the purposes of this HoA Key Management is deemed to include Peter Royan and the Branch and Sales Managers;

 

 

• Some of the key issues Roadships Acquisitions would focus due diligence on would include but not be limited to:

 

 

o full understanding and review of agreements and relationships with customers and suppliers;

 

 

o market power of competitors in each market the Business operates within;

 

 

o growth prospects of each market;

 

 

o underlying capital expenditure requirements and historic levels;

 

 

o full review of operating systems;

 

 

o detailed financial history for the last three years;

 

 

o detailed financial forecast for the next two years;

 

 

o analysis of historic and forecast revenues;

 

 

o details of all commitments;

 

 

o review of expenses required to collect forecast revenue, including overheads;

 

 

o costs of implementation of any transaction, including tax effects for the purchaser;

 

 

o details of and access to the senior management of; and

 

 

o site visits would be required.

 

 

• Should Peter Royan wish to but be unable to sell all of the shares issued to him in Roadships Holdings, as set out in 3.4.1 and 3.4.2 above, with in the 12 month period after the effective date for a value equal to or greater than $12 million Roadships Holdings will transfer all of the shares in Royans Brisbane to Peter Royan. In this event Roadships Holdings will not be repaid the amount spent on settlement of the loan stipulated in 2.2 above and any value realised by sale of the shares as set out in 3.4.1 and 3.4.2. will be retained by Peter Royan.

 

 

	
5. Royans Brisbane pre-IPO involvement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	
 

• The involvement of Royans Brisbane within the operations of Roadships Holdings will comprise a pre-IPO involvement and post-IPO or ongoing involvement.

 

 

• The services required of Royans Brisbane, its management and shareholders within the pre-IPO preparation phase including the IPO execution phase are detailed below:

 

 

o full access to Royans Brisbane business and operational records;

 

 

o prompt actioning by management of all requests for information required by Roadships Holdings and all its IPO advisors, in the form and detail stipulated by Roadships Holdings and such advisers;

 

 

o full co-operation and assistance with the Roadships Holdings IPO process;

 

 

o preparation of a full and complete data room of the Business in the form stipulated by Roadships Holdings and all its IPO advisors;

 

 

o assistance and preparation of  full statutory and management accounts for the 2008(a), 2009(a), 2010(a), 2011(f), and 2012(f) years in the form and detail required by Roadships Holdings and its advisers including all supporting ledgers and reconciliations;

 

 

o access to all customers and suppliers of  Royans Brisbane as required in consultation with Royans Brisbane management;

 

 

o other services and information reasonably required of Royans Brisbane in order to affect an IPO of Roadships Holdings having regard to the Target as a division of Roadships Holdings

 

 

o assistance as required in the establishment of Roadships Holdings functions including

 

 

§ Sales function

 

 

§ transport operations function

 

 

§ Consolidated financial reporting and treasury function

 

 

§ Participation and assistance within the IPO pre marketing phase and general IPO public relations campaign

 

	
6. Royans Brisbane’s  involvement in ongoing operations of Roadships Holdings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	
Royans Brisbane will principally operate within its existing ordinary course of business after the execution of this Transaction, and will maintain its existing operational integrity aside from the involvement of Royans Brisbane in the ongoing Roadships Acquisitions model which will consist of:

 

1. A central sales and marketing function;

 

 

2. transport operations function including Customer Relationship Management (“CRM”) implementation and integration;

 

 

3. Financial and Treasury functions;

 

 

4. Human Resources function

 

Each of these areas is considered in-turn below:

Central Sales and Marketing Function

 

• Roadships Holdings will aim to sell Royans Brisbane’s capabilities along side other constituent company products. Royans Brisbane’s involvement within the Roadships Acquisitions sales function will include:

 

 

o formulation of integrated client offerings of services to Roadships Acquisition and Royans Brisbane clients;

 

 

o participation in Roadships Acquisition’s marketing presentations to clients including the involvement of relevant Royans Brisbane sales and specialist staff.

 

Cross Sales

 

• Roadships Holdings will aim to cross-fertilise its constituent companies within its portfolio companies and additional transport & logistics businesses sourced by Roadships Holdings. Initially the cross sales function will comprise the implementation and integration of a CRM program. Requirements of Royans Brisbane for the Roadships Holdings Cross Sales function include:

 

 

o full and complete assistance with the implementation of a CRM program including upload of Royans Brisbane’s current client/customer information, including but not limited to:

 

 

§ identity of and continuing update of client database;

 

 

§ relationship contact points;

 

 

§ history of services/products produced;

 

 

§ history of interaction;

 

 

Operational requirements of Royans Brisbane including but not limited to the following:

Finance

 

• Bi-annual review of the business plan including preparation of forecast accounts, growth initiatives and capital expenditure requirements, etc;

 

 

• Preparation of monthly management accounts in the form and detail required by Roadships Acquisitions;

 

 

• Preparation of monthly statutory Profit and Loss, Balance Sheet and Cashflow accounts in the form and detail required by and with the assistance of Roadships Acquisitions.

 

Executive committee

 

• Participation and involvement in monthly executive committee meetings on group performance, strategy and on-going operations

 

Key principal involvement in Roadships Holdings

 

• The involvement of key principals and management within the operations of Roadships Holdings is to be agreed upon, but may include:

 

 

o ongoing involvement in Roadships Holdings sales function

 

 

o strategy

 

 

o business development

 

 

o other

 

	
7. Roadships Holdings pre-IPO preparation, execution and funding of IPO process

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	
 

• Roadships Holdings will conduct and manage pre-IPO preparation for constituent companies to consist of the following:

 

 

• Commercial due diligence period to identify key legal, financial risks and material business issues for disclosure within the Prospectus

 

 

• Preparation of a consolidated financial model for Roadships Holdings and its constituent companies including detailed financial accounts including Profit and Loss, Balance Sheet and Cashflow statements for each of the years:

 

 

•  2008(a) pro-forma, 2009(a) pro-forma, 2010(a) pro-forma

 

 

• 2011 forecast , 2012 forecast

 

 

• Formulation and implementation of management accounting and reporting process and protocols across all constituent companies;

 

 

• Formation and implementation of financial reporting protocol and process across all constituent companies;

 

 

• Formulation and implementation of a treasury function across all constituent companies;

 

 

• Formulation and implementation of appropriate governance procedures including:

 

 

• public board (governance procedures)

 

 

• executive committee (governance procedures)

 

 

• other board committees and  process and procedures required for a public company

 

 

• Roadships Holdings will conduct, fund, implement and manage the envisaged IPO process including:

 

 

• appointment of Broker(s) to the issue and/or an underwriter;

 

 

• appointment of legal, accounting and technology advisors;

 

 

• co-ordination of the IPO due diligence process including

 

 

• management of legal due diligence and final due diligence report

 

 

• management of investigating accountants historic audit and final report

 

 

• management of investigating accountants forecast review and final report

 

 

• management of pricing, offer structure and  IPO mechanism;

 

 

• pre-marketing and management of IPO public relations campaign; and

 

 

• IPO settlement and allotment process.

 

 

	
8. Transaction documentation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	
The following Transaction documentation is envisaged:

 

• Sale and Purchase Agreement

 

 

o Document acquisition of Royans Brisbane, including consideration mechanism, Conditions Precedent other conditions, representations and warranties in accordance with the terms and principles within this HoA

 

 

o Document earn-out mechanism in accordance with the terms and principles within this HoA

 

 

• Service Agreements

 

 

o Execution of Service Agreements for Royans Brisbane key employees to include the following terms:

 

 

§ Services to be provided and service period (likely to extend over the earn-out period);

 

 

§ Salary and remuneration package details, including KPIs and details of an Executive Share Option Plan (ESOP);

 

 

§ Service Terms acceptable to Roadships Holdings;

 

 

§ Restrained activity and Non-compete;

 

 

§ Other to be agreed.

 

 

	
9. Process and indicative Timetable

 

	
 

• In principle agreement and execution of HoA -  Monday, November 8, 2011

 

Stage 1

 

• Due diligence check list to be provided upon date of signing HoA.  Pre-contract commercial due diligence period by Roadships Holdings to commence 2 weeks after signing of Term Sheet – Friday, November 22, 2010 – Friday, November 29, 2010

 

 

o This stage will consist of high level management interviews, data room preparation and access, initial forecast review and review of material contracts

 

Stage 2

 

• Negotiation of transaction documentation Friday, November 12, 2010 – Friday, November 29, 2010

 

 

o Following completion of Stage 1 it is anticipated that a final offer and associated definitive sale and purchase agreement will be agreed with Royans Brisbane detailing consideration, key terms and conditions

 

 

o Execution of Transaction Documentation and execution of the definitive sale and purchase agreement – Wednesday, December 1, 2010

 

Stage 3

 

• The listing of Roadships Holdings on the NASDAQ anticipated to occur on or before Friday, January 31, 2011

 

 

 (The target dates above will change having regard to any change in the mode of Business establishment)

 

	
10. Other Funding Mechanisms

	
 

• Any additional external funding required by Roadships Holdings is proposed to be raised by Roadships Holdings through an issue of Roadships Holdings equity, debt or hybrid securities. Additional funding may be required for the following:

 

 

o further funds required to conduct an Initial Public Offer Process; and/or

 

 

o purchase of an option over Targets; and/or

 

 

o purchase of equity in individual targets; and/or

 

 

o outright purchase of individual targets; and/or

 

 

o other funding requirements reasonably required for business development.

 

 

• In the event that an IPO is not pursued as the primary funding mechanism for the acquisition of Target companies, a number of alternative funding mechanisms are available to expand the Roadships Holdings business and acquisition of Target companies including:

 

 

o involvement of a private equity fund; and/or

 

 

o private raising through an excluded offer process; and/or

 

 

o sale of a cornerstone stake in Roadships Holdings to a strategic or trade buyer; and/or

 

 

o a combination of the above.

 

 

• In the event completion of the transaction does not occur:

 

 

o the parties will act in good faith and agree terms of any relationship or transaction extending beyond Friday, January 31, 2011

 

	
11. Confidentiality

	
 

• In consideration of Roadships Acquisitions and Roadships Holdings providing this HoA, Royans Brisbane agrees that the existence, extent and terms of this HoA and all information concerning the Roadships Acquisitions and the Roadships Holdings plans, strategy and operational model (“Roadships Holdings Confidential Information”) will be kept strictly confidential and must not be used for any purpose other than in respect of the proposed acquisition, and without restricting the generality of the foregoing, Royans Brisbane must not otherwise publish generally, use to its commercial advantage or communicate to anyone in general, Roadships Holdings’ Confidential Information or any part of Roadships Holdings’ Confidential Information (including the fact that Roadships Holdings’ Confidential Information has been provided to it).

 

 

The Vendors acknowledge receipt of this Heads of Agreement dated    November, 2010 (of which the above is an exact copy) and confirm acceptance of the in principle terms and conditions.

 

	
EXECUTED for and on behalf of ROADSHIPS HOLDINGS INCORPORATED an authorised officer or representative in the presence of:

	  
	
 

Signature of witness

	
 

Authorised officer or representative

	
 

Full name

	
 

Full name

 

	
EXECUTED for and on behalf of ROADSHIPS ACQUISITIONS AUSTRALIA LTD. by an authorised officer or representative in the presence of:

	
  

 

 

	
/s/ Angus Mackenzie                                                     

Signature of witness

	
/s/ Michael Mugent                                                      

Authorised officer or representative

 

	
Angus Mackenzie                                                      

Full name

	
Michael Nugent                                                                

Full name

 

	
EXECUTED for and on behalf of ROYANS BRISBANE PTY LTD by an authorised officer or representative in the presence of:

	
  

 

 

	
/s/ Angus Mackenzie                                                      

Signature of witness

	
/s/ Peter Royans 

Authorised officer or representative

 

	
Angus Mackenzie                                                      

Full name

	
Peter Royans                                                                

Full name

 

	
EXECUTED by PETER ROYAN in the presence of:

	  
	
/s/ Angus Mackenzie                                                      

Signature of witness

	
/s/ Peter Royans 

Authorised officer or representative

 

	
Angus Mackenzie                                                      

Full name

	
Peter Royans                                                                

Full nameEX-10.1

October 21, 2010

Patrick McCormick

—

—

Re: Your Separation From Symetra Life Insurance Company

Dear Pat:

As we have discussed, your employment with Symetra Life Insurance Company (“Symetra”) will end
on November 30, 2010. This Separation Agreement and General Release (“Agreement”) is intended to
clearly explain the terms related to the end of your employment with Symetra. By signing and
returning this Agreement, you will signify your agreement to these terms, and the Agreement will
become binding.

1. Separation from Employment. Your employment with Symetra will end effective
November 30, 2010, which will be referred to as the “Separation Date.” You will receive your
regular pay and benefits through the Separation Date and payment will be made with the next
regularly scheduled payroll after your Separation Date. Normal payroll and withholding taxes will
be deducted from this payment.

2. Resignation as Officer and Director. On the date of execution of this Agreement,
you will resign as an officer and director of Symetra and each of its affiliates, and will cease to
earn or accrue or participate in any plans or programs providing any compensation or benefits
solely in respect of service as an officer or director.

3. Transition. You agree to sign all documents needed to effectuate your separation
from Symetra and the transition of your job duties and responsibilities, no later than your
Separation Date.

4. Duties. From the date of execution of this Agreement, and until your Separation
Date, you will not be an executive, officer, or director of Symetra or any of its affiliates; no
other employee of Symetra will report to you; and you will only have such authority as specifically
assigned to you by Symetra.  

5. Accrued Vacation. Symetra will pay to you all of your accrued but unused vacation
earned up to the Separation Date. This payment will be made with the next regularly scheduled
payroll after your Separation Date. Normal payroll and withholding taxes will be deducted from
this payment.

6. 401(k) Plan. Following your Separation Date, you will retain any earned and vested
retirement benefits under Symetra’s 401(k) plan.

7. Sales Incentive Bonus. You will receive your earned third quarter incentive
compensation payment on October 29, 2010 as normally scheduled. Following your Separation Date, you
will not be eligible for any bonus payment.

8. Equity Plan; Performance Share Plan. On your Separation Date, you will forfeit all
benefits under the Symetra Financial Corporation Equity Plan, including restricted stock and
performance units. You will also forfeit all benefits under Symetra’s Performance Share Plan.

9. Severance Payment. To assist you in your transition to new employment, Symetra
will pay you, as severance pay, a total of six hundred thousand dollars ($600,000), less applicable
tax withholdings and deductions, in a lump sum after the Effective Date of this Agreement.

10. Group Medical Benefits Coverage.  You and your dependents may elect a temporary
extension of group health plan coverage under the Consolidated Omnibus Budget Reconciliation Act of
1985, commonly known as “COBRA.” You will receive separate forms that describe your COBRA rights
and give you and your dependents the opportunity to continue your health insurance coverage.
Symetra will provide you an additional lump sum payment of $8,427 that you may use to purchase
health insurance, either through continuation coverage under COBRA or other health insurance
coverage of your choice.

11. No Other Payments. Except as described above, including payment for any unpaid
salary and benefits attributable to your employment prior to the Separation Date and reasonable
business expenses incurred by you on or before the Separation Date and not yet reimbursed, you
acknowledge and agree that you are not entitled to any other compensation, severance, benefits or
other payments in connection with your employment or positions with Symetra or the termination
thereof.

12. Return of Property. On or before your Separation Date, you will return to Symetra
all company-owned property in your possession, including without limitation all keys or access
cards to company buildings or property, all business credit cards, all passwords to Symetra’s
electronic communication systems or any password protected documents, all company-owned equipment
such as a laptop, printer, scanner or Blackberry, and all Symetra documents and papers (such as,
without limitation, representative lists and strategic planning and financial documents), including
but not limited to trade secrets or confidential information. Any payment under this Agreement
will be delayed until you return all of Symetra’s property.

13. Release. In exchange for the severance pay and other benefits you receive under
this Agreement, you (on behalf of yourself and your marital community) irrevocably and
unconditionally waive and release Symetra and all of its parent, affiliated or subsidiary
organizations, any Symetra employee benefit plans and each of their respective directors, officers,
agents, trustees, employees, employee-spouses, successors and assigns (collectively referred to as
“the Symetra Releasees”), jointly and severally, from any and all claims, causes of action,
agreements, attorneys’ fees and costs, expenses, damages, promises, demands or otherwise
(“Claims”), whether known or unknown, in law or equity, accrued or unaccrued, contingent or
noncontingent, arising at any time up to and including the date you execute this Agreement. This
release includes, but is not limited to, and only by way of example:

	 	a.	 	all Claims arising from or relating to your employment or positions
with any of the Symetra Releasees, or the termination thereof;

	 	b.	 	any and all Claims arising under federal, state or local laws
prohibiting discrimination or harassment in employment including Title VII of the
Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans
with Disabilities Act, the Family and Medical Leave Act, 42 U.S.C. § 1981, the
State of Washington Law Against Discrimination (RCW 49.60);

	 	c.	 	any and all Claims arising under the Employee Retirement Income and
Security Act of 1974, as amended, or any benefit plan, policy or program
established by Symetra;

	 	d.	 	any and all Claims arising under any federal, state or local law
relating to the payment of wages or other compensation or the hours of work, or
any other compensation in any form whatsoever from Symetra (except as provided by
this Agreement) including but not limited to any claims for wages, bonuses,
commissions, equity, vacation pay or other similar remuneration;

	 	e.	 	any and all tort or contract Claims or any other Claims arising from
any alleged legal restrictions of the right of Symetra to compensate, manage or
terminate its employees;

	 	f.	 	any and all Claims arising under any contract or agreement, whether
written or oral, between you and Symetra relating to any subject; and

	 	g.	 	any and all Claims arising under the common law of any jurisdiction,
including, but not limited to, all claims for breach of contract, defamation,
interference with contractual/prospective economic advantage, invasion of privacy,
promissory estoppel, negligence, breach of the covenant of good faith and fair
dealing, fraud, emotional distress, and wrongful discharge/termination.

This release does not prohibit you from filing an administrative charge with the Equal Employment
Opportunity Commission or assisting with a governmental investigation but shall constitute a
release and waiver of any claim or right to monetary damages or other relief in such a charge.

14. Agreement Not to Sue. You agree that you will not at any time maintain or file
any lawsuit or assert any claim against any Symetra Releasee for any damage or loss related in any
way to your employment or association with Symetra, except a claim to enforce this Agreement or a
charge with the EEOC as identified above.

15. Voluntary Agreement. This Agreement requires careful consideration. By signing
it, you are confirming that you do so voluntarily and you have not signed it as a result of any
coercion. You have 21 days after receipt of this Agreement to consider its terms and conditions.
You are encouraged to consult with an attorney prior to signing it. You should sign it only after
careful consideration. In the event that you sign this Agreement before the expiration of this
consideration period, you waive the rest of your consideration time.

16. Revocation Period. After you sign this Agreement, you have seven days to revoke
it. If you wish to revoke it, you must notify Christine Katzmar Holmes in writing within seven
days of signing the Agreement. This Agreement will be effective on the eighth day after you sign
it, which shall be referred to as the “Effective Date”.

17. References. All inquiries about you including any requests for reference
information must be directed to Symetra Human Resources, who will confirm your dates of employment,
position and duties. This is consistent with Symetra’s general policy regarding references.

18. Other Communications. You agree not to defame, or make any disparaging or untrue
statements that are intended to cause harm to Symetra or any of its shareholders, directors or
officers in any medium to any person or entity without limitation in time. Symetra shall control
the timing, content and manner of any internal, external and media communication concerning the
termination of your employment with Symetra.

19. No Admission of Liability. This Agreement will not be evidence of any violation
of any statute or law, or any wrongdoing or liability on the part of Symetra or its employees.

20. Confidentiality. By signing this Agreement, you agree to keep confidential and
not use or disclose any confidential, trade secret or any other information concerning Symetra, its
business, employees, marketing strategies and other information not publicly available. You also
agree to abide by any agreements with respect to confidentiality that you have signed. You must
also keep the terms of this Agreement confidential, except that you can share the information with
your spouse, attorney or accountant provided each promises to keep the information confidential.

21. Protection of Confidential Information. You acknowledge that by virtue of your
employment with Symetra, you acquired significant non-public information and trade secrets with
respect to Symetra and its affiliated companies, and their operations (the “Confidential
Information”). You acknowledge that the Confidential Information constitutes valuable, special and
unique assets of the Symetra and its affiliates, access to and knowledge of which were essential to
the performance of your duties during your employment. You agree to hold the Confidential
Information in trust and confidence and agree not to (i) directly or indirectly make use of the
Confidential Information, (ii) reveal any Confidential Information to any other party, or
(iii) divulge or use any Confidential Information for any purpose other than for the benefit of the
Symetra, except to the extent that you may be required to disclose such Confidential Information by
lawful order or process of a court (in which event Employee will provide reasonable advance notice
of such disclosure to Symetra and will cooperate with Symetra’s efforts to obtain protective
treatment for such Confidential Information).

22. Non-Solicitation. You agree that for twelve (12) months following the Separation
Date, you will not directly or indirectly solicit, entice, recruit, or contract with any person who
is an employee, customer, affiliate, or agent of Symetra to cease, terminate or reduce any
relationship with Symetra.

23. Non-Competition. You agree that for twelve (12) months following the Separation
Date, you shall not, directly or indirectly, on behalf of yourself or any other entity, compete
against Symetra to market or sell life insurance or annuity policies to banks and other
institutional customers of Symetra.

24. Post Separation Assistance. Upon Symetra’s reasonable request, you agree to make
yourself available after your Separation Date to advise Symetra regarding matters you handled, or
about disputes with third parties with which you were familiar or involved. You also agree to
cooperate fully with Symetra in connection with all pending or threatened litigation, arbitration,
mediation, or similar proceedings in which you are or may be needed as a witness.

25. Entire Agreement. This Agreement contains the entire understanding between you
and Symetra regarding your departure from Symetra. By signing this Agreement, you acknowledge and
agree that you are not relying on any promise or representation, written or oral, other than those
that are specifically stated in this Agreement. If any provision of this Agreement is determined
to be invalid or unenforceable, the rest of this Agreement will remain enforceable. This Agreement
will be deemed to have been entered into in the State of Washington and will be interpreted and
enforced under Washington law.

As you review the terms of this Agreement, please contact me if you have any questions about
its terms.

Sincerely,

/s/ Christine Katzmar Holmes

Christine Katzmar Holmes

Vice President, Human Resources

Symetra Life Insurance Company

I ACKNOWLEDGE AND UNDERSTAND THAT THE ABOVE AGREEMENT INCLUDES A RELEASE OF ALL CLAIMS, KNOWN AND
UNKNOWN, AND EXECUTE THIS AGREEMENT WITH FULL KNOWLEDGE OF ITS CONTENTS AND OPPORTUNITY FOR
CONSULTATION WITH LEGAL COUNSEL. I AGREE TO THE TERMS OF THIS AGREEMENT, AND ACKNOWLEDGE AND AGREE
THAT BY SIGNING BELOW THIS AGREEMENT IS A VALID AND BINDING AGREEMENT.

	 	 	 
	Dated: November 1, 2010
	 	/s/ Patrick B. McCormick

	 
	 	 

	 	 	Patrick B. McCormick

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