Document:

exv10w01

 

Exhibit 10.01

PO Box 7850, MS 2550

Mountain View, CA 94039-7850

February 4, 2008

Jeffrey E. Stiefler

Re: Separation Terms and General Release Agreement

Dear Jeff:

This letter confirms the terms of your separation from the employment of Intuit Inc. and
consideration in exchange for your waiver and general release of claims in favor of Intuit Inc. and
its officers, directors, employees, agents, representatives, subsidiaries, divisions, affiliated
companies, successors, and assigns, including but not limited to Digital Insight Corporation
(collectively, the “Company” or “Intuit”).

	 	1.	 	Termination Date. Your employment with the Company will end effective February
15, 2008, (the “Termination Date”). Between now and the Termination Date, you should
assist with any transition-related activities as directed by your manager. Additionally, we
agree that we will enter into a consulting agreement, in the form attached hereto as
Exhibit A, whereby you would provide consulting services to the Company. Such
relationship, if any, will be mutually agreed to at that time.
	 
	 	2.	 	Acknowledgment of Payment of Wages. On or before execution of this release, we
delivered to you a final paycheck that includes payment for all accrued wages, salary,
accrued and unused vacation time, reimbursable expenses, and any similar payments due and
owing to you from the Company as of the Termination Date (collectively referred to as
“Wages”). You are entitled to these Wages regardless of whether you sign this Separation
Terms and General Release Agreement (the “Agreement”).
	 
	 	3.	 	Consideration For Release. Following the effective date (“Release Effective
Date") of the Release Agreement attached as Exhibit B (the “Release”), you shall
be provided the following benefits as provided for in the Intuit Employment Offer Letter
between you and Intuit dated November 29, 2006 (the “Intuit Offer Letter”), and as set
forth below, in exchange for your waiver and release of claims in favor of the Company.
The payment of the below benefits are in addition to any amounts owed to you by the
Company. You acknowledge and agree that you are not otherwise entitled to receive these
benefits.

	 	a.	 	Accelerated Intuit Performance Based Restricted Stock Units. The
Company has granted you 100,000 Performance-Based Stock Units in accordance with the
Intuit Offer Letter. These Performance-Based Stock Units are subject to a thirty-month
cliff vesting schedule. Provided you do not resign before the Termination Date and
following the Release Effective Date, in accordance with the restricted stock unit
agreement documenting this award, you will vest pro-rata in a percentage of the total
number of shares subject to the award equal to your number of full months of service
since the Closing Date divided by thirty months, rounded down to the nearest whole
share (i.e., 40,000 shares)

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	 	 	 	You will have taxable income subject to required federal and state tax withholding as a
result of the vesting and issuance of these shares. Your taxable income will be equal
to the closing price of Intuit stock on the Nasdaq National Market on the Termination
Date multiplied by the number of vested shares. The shares will be issued to you after
the Company withholds sufficient shares to cover the required tax withholding. Please
contact Sharon Savatski at Intuit to make arrangements for how you would like these
shares to be delivered to you.
	 
	 	b.	 	Healthcare Assistance: The Company will also provide you with a
one-time gross lump sum payment of $45,000 to assist in offsetting the cost of COBRA
premium expenses for you and your family. This amount will be paid within 21 business
days following the Release Effective Date. All normal and appropriate withholdings and
deductions will be applied.

	 	4.	 	COBRA Continuation Coverage. Your Company provided health coverage will end on
your Termination Date. If you are eligible for, and timely elect COBRA continuation, you
may continue health coverage pursuant to the terms and conditions of COBRA at your own
expense. Our COBRA Administrator will contact you shortly after your Termination Date.
Any questions regarding your right to COBRA should be directed to Intuit’s COBRA
Administrator at 1-866-INTUBEN (1-866-468-8236). All other insured benefit coverage (e.g.,
life insurance, disability insurance) will also end on your Termination Date.
	 
	 	5.	 	Stock Options. The Company will provide you with a Stock Closing Statement (as
part of the Exit Interview Employee Declaration) and an Intuit Employee Stock Option
Information memorandum that contains important information regarding the number of shares
that may be exercisable, if any, under any options you have to purchase Intuit stock, and
the final date on which you may exercise these options. Please read these documents
carefully as there are no extensions to the expiration date of the options. Please contact
StockOptions@intuit.com if you need more information on your options.
	 
	 	6.	 	Return of Company Property. By signing below, you represent that on or before
the Termination Date, you will have returned all the Company property and data of any type
whatsoever that was in your possession or control.
	 
	 	7.	 	Confidential Information, Non-Competition and Non-Solicitation. You hereby
acknowledge that as a result of your employment with the Company you have had access to the
Company’s confidential information. You acknowledge your continuing obligations under the
Intuit Invention Assignment and Confidentiality Agreement and the Digital Insight Employee
Nondisclosure and Invention Assignment Agreement you have previously executed, and you
agree you will hold all such confidential information in strictest confidence and that you
may not make any use of such confidential information. You further confirm that you will
deliver to the Company, by your Termination Date, all documents and data of any nature
containing or pertaining to such Confidential Information and that you have not taken with
you any such documents or data or any copies thereof. You also acknowledge your obligation
not to directly or indirectly solicit away employees or consultants of the Company for your
own benefit or for the benefit of any other person or entity for a period of one (1) year
from your Termination Date. You further acknowledge and agree that the Non—Competition
Agreement you entered into with the Company in connection with the Merger Agreement remains
in full-force and effect and that you will comply in all respects with all terms and
obligations set out in the Non-Competition Agreement.
	 
	 	8.	 	Outplacement Services. The Company will provide you with three months of
outplacement services through Right Management. You must initiate these services by no
later than sixty (60) days from the Termination Date.

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	 	9.	 	Non-disparagement, Neutral Reference. You agree that you will not make any
statement, written or oral, or engage in any conduct that is or could reasonably be
construed to be disparaging of the Company or its products, services, agents,
representatives, directors, officers, shareholders, attorneys, employees, vendors,
affiliates, successors or assigns, or any person acting by, through, under or in concert
with any of them. The Company agrees that the Company’s Chief Executive Officer and Senior
Vice President, Human Resources and your direct manager shall not disparage or make any
untrue statements about you. In addition, you agree to direct any request for job
reference/verification to Intuit Human Resources at 1-800-819-1620. In accordance with
Company policy, in response to a request for job reference/verification of employment, the
Company agrees to verify only your job title and dates of employment. Nothing in this
paragraph shall prohibit either party from providing truthful testimony in response to a
subpoena or other compulsory legal process.
	 
	 	10.	 	Legal and Equitable Remedies. You and the Company agree that either party
shall have the right to enforce this Agreement and any of its provisions by injunction,
specific performance or other equitable relief without prejudice to any other rights or
remedies that either party may have at law or in equity for breach of this Agreement.
	 
	 	11.	 	Arbitration of Disputes. Except for claims for injunctive relief arising out
of a breach of the Invention Assignment & Confidentiality Agreement and/or the Digital
Insight Employee Nondisclosure and Invention Assignment Agreement, you and the Company
agree to submit to mandatory binding arbitration any future disputes between you and the
Company, including any claim arising out of or relating to this Agreement. By signing
below, you and the Company waive any rights you and the Company may have to trial by jury
of any such claims. You agree that the American Arbitration Association will administer any
such arbitration(s) under its National Rules for the Resolution of Employment Disputes,
with administrative and arbitrator’s fees to be borne by the Company. The arbitrator shall
issue a written arbitration decision stating his or her essential findings and conclusions
upon which the award is based. A party’s right to review of the decision is limited to the
grounds provided under applicable law. The parties agree that the arbitration award shall
be enforceable in any court having jurisdiction to enforce this Agreement. This Agreement
does not extend or waive any statutes of limitations or other provisions of law that
specify the time within which a claim must be brought. Notwithstanding the foregoing, each
party retains the right to seek preliminary injunctive relief in a court of competent
jurisdiction to preserve the status quo or prevent irreparable injury before a matter can
be heard in arbitration.
	 
	 	12.	 	Attorneys’ Fees. If any legal action arises or is brought to enforce the terms
of this Agreement, the prevailing party shall be entitled to recover its reasonable
attorneys’ fees, costs and expenses from the other party, in addition to any other relief
to which such prevailing party may be entitled, except where the law provides otherwise.
The costs and expenses that may be recovered exclude arbitration fees pursuant to paragraph
11 above.
	 
	 	13.	 	No Admission of Liability. You agree that this Agreement is not an admission or
evidence of any wrongdoing or liability on the part of the Company, its representatives,
attorneys, agents, partners, officers, shareholders, directors, employees, subsidiaries,
affiliates, divisions, successors or assigns. This Agreement will be afforded the maximum
protection allowable under California Evidence Code Section 1152 and/or any other state or
Federal provisions of similar effect.
	 
	 	14.	 	Review of Agreement. You may take up to twenty-one (21) days from the date you
receive this Agreement, or until your Termination Date, whichever date is later, to
consider whether to accept these terms. By signing below, you affirm that you were advised
by this letter to consult with an attorney before signing this Agreement and were given
ample opportunity to do so. You

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	 	 	 	understand that this Agreement will not become effective until you return the original
properly signed Agreement to Intuit, Attention: Jim Grenier, 2700 Coast Avenue, Mountain
View, CA 94043, and after expiration of the revocation period without revocation by you.
	 
	 	15.	 	Revocation of Agreement. You acknowledge and understand that you may revoke
this Agreement, or the Release by faxing a written notice of revocation to Jim Grenier at
650-944-5225 any time up to seven (7) days after you signing. After the revocation period
has passed, however, you may no longer revoke the applicable agreement.
	 
	 	16.	 	Entire Agreement. This Agreement, the Intuit Offer Letter, the Release, the
Non-Compete Agreement, the Intuit Invention Assignment and Confidentiality Agreement, and
the Digital Insight Employee Nondisclosure and Invention Assignment Agreement constitute
the entire Agreement between you and the Company with respect to the subject matter of this
Agreement and supersedes all prior negotiations and agreements, whether written or oral,
relating to this subject matter. You acknowledge that neither the Company, nor its agents
or attorneys, made any promise or representation, express or implied, written or oral, not
contained in this Agreement to induce you to execute this Agreement. You acknowledge that
you have signed this Agreement knowingly, voluntarily and without coercion, relying only on
such promises, representations and warranties as are contained in this document. You
understand that you do not waive any right or claim that may arise after the date this
Agreement is executed.
	 
	 	17.	 	Modification. By signing below, you acknowledge your understanding that this
Agreement may not be altered, amended, modified, or otherwise changed in any respect except
by another written agreement that specifically refers to this Agreement, executed by the
Company’s authorized representatives and you.
	 
	 	18.	 	Governing Law. This Agreement is governed by, and is to be interpreted
according to, the laws of the State of California.

If this Agreement accurately sets forth the terms of your separation from the Company and if you
voluntarily agree to accept the terms of the severance package offered please sign below and return
it to me.

	 	 	 	 	 
	Sincerely,

	 	 	 	 
	 
	 	 	 	 
	/s/ Jim Grenier
 

	 	 	 	 
	Jim Grenier
	 	 	 	 
	Vice President, HR ~ Rewards & Workplace

	 	 	 	 
	 
	 	 	 	 
	APPROVED:
	 	 	 	 
	 
	 	 	 	 
	/s/ Brad Smith
 

	 	Date: 2/5/08
	 	  
	Brad Smith
	 	 	 	 
	President and CEO
	 	 	 	 
	 
	 	 	 	 
	REVIEWED, UNDERSTOOD AND AGREED:

	 	 	 	 
	 
	 	 	 	 
	/s/ Jeffrey E. Stiefler

	 	Date: 2/4/08
	 	 
	 

Jeffrey E. Stiefler

	 	 	 	 

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EXHIBIT A

FORM OF CONSULTING AGREEMENT

THIS CONSULTING AGREEMENT for independent contractor consulting services (“Agreement”) is made and
entered into as of                      by and between Intuit Inc., a Delaware corporation (the
“Company”) and Jeff Stiefler (the “Contractor”), an individual.

     1. Independent Contractor Relationship. Effective as of                      , 2008 (the
“Effective Date”), and in accordance with the mutual intentions of the Company and the Contractor,
this Agreement establishes between them an independent contractor relationship, and all of the
terms and conditions of this Agreement shall be interpreted in light of that relationship. There
is no intention to create by this Agreement an employer-employee relationship.

     2. Term. The Contractor shall commence providing services on the Effective Date and
shall continue to do so until July 31, 2008 (the “Term”), subject to earlier termination in
accordance with Section 10 hereof.

     3. Amount of Service. It is understood and agreed that the Company has the right
(although it has no obligation) to use, and the Contractor shall provide, the Contractor’s services
for up to 20 hours per week. However, the Contractor’s compensation pursuant to the Agreement in
any event shall not be reduced based on the number of hours of service required by the Company.
The Contractor warrants and represents that there is no conflict of interest in the Contractor’s
other contracts for services or other employment, if any, with the services to be provided pursuant
to this Agreement and that the Contractor will ensure that no such conflict arises during the term
of this Agreement (which includes but is in no way limited to use of another’s confidential and
proprietary information).

     4. Type of Service. The Contractor will provide all reasonably requested services by
the Company regarding any special projects assigned to the Contractor. In addition, the Contractor
will provide such services to the Company as may be requested by the Company from time to time,
including, but not limited to, the following services:

     (a) Aiding in the development and execution of corporate strategy with regard to the
Intuit Financial Institutions Division (“IFID”); and

     (b) providing all other reasonably requested services by the Company regarding IFID and
the Company.

     5. Payment.

     (a) During the Term, the Company shall pay to the Contractor for his services a total
monthly consulting fee of $17,000 (payable in bi-monthly installments of $8,500).

     (b) The payment herein provided shall constitute full payment for the Contractor’s
services to the Company during the term of this Agreement, and the

 

 

Contractor shall not receive any additional benefits or compensation for consulting
services, except that the Company will reimburse the Contractor for reasonable and customary
expenses incurred at the Company’s request in connection with such consulting. All such
costs and expenses shall be itemized by statement and each statement shall be accompanied by
substantiating bills or vouchers. The Contractor must obtain prior authorization for any
expenses which the Contractor reasonably expects to exceed $2,000.

       6. Contractor Responsible for Taxes and Indemnification. Without limiting any of the
foregoing, the Contractor shall be solely responsible for, and the Company shall not withhold from
any amounts payable under this Agreement, and Federal, state and local income or employment taxes,
Contractor agrees to reimburse and indemnify the Company for any taxes or penalties which the
Company may be compelled to pay on behalf of Contractor.

       7. Means and Methods. The Contractor agrees to furnish personal services as provided
herein as an independent contractor using the Contractor’s own means and methods.

       8. Confidentiality. The Contractor agrees that all data and information about the
Company’s business, plans, finances, plants, equipment, processes and methods of operation
disclosed to, acquired by or developed by the Contractor during performance of the work hereunder
is and shall remain the exclusive property of the Company. Except for such information and data as
can be proven by the Contractor to be in or to have entered the public domain through no fault of
the Contractor or to have been in the Contractor’s possession prior to disclosure to the Contractor
by the Company and/or the performance of Contractor’s services hereunder, Contractor shall during
the term of the Agreement and thereafter in perpetuity maintain as confidential and not disclose to
third parties or otherwise use, and will enjoin the Contractor’s employees, agents or
subcontractors (as applicable) from using, such information except as duly authorized in the
conduct of the Company’s business. The Contractor agrees that such data and information shall be
used by the Contractor solely for the purpose of performing services for the Company and not for
the benefit of any other person or entity whatsoever.

       9. No Assignments by Contractor. The Contractor shall not assign or transfer any
rights under this Agreement without the Company’s prior written consent, and any attempt of
assignment or transfer without such consent shall be void. The Company may, however, assign the
Agreement.

       10. Termination by Notice. This Agreement is terminable at will by the Company at any
time upon three (3) days’ written notice to the Contractor. If the Company exercises the right to
terminate the Agreement, any obligation the Company may have under this Agreement shall cease
immediately. The Contractor’s obligation pursuant to paragraphs 6, 7, 8 and 9 of this Agreement
shall continue in perpetuity.

       11. California Law Governs. This Agreement shall be deemed to have been executed and
delivered within the State of California, and the rights and obligations of the parties hereunder
shall be construed and enforced in accordance with, and governed by, the laws of the state of
California without regard to principles of conflict of laws.

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     12. Severability. If any provision of this Agreement or the application thereof is
held invalid, the invalidity shall not affect other provisions or applications of the Agreement
which can be given effect without the invalid provisions or applications and, to this end, the
provisions of this Agreement are declared to be severable.

     13. Waiver of Breach. No waiver of any breach of any term or provision of this
Agreement shall be construed to be, or shall be, a waiver of any other breach of this Agreement.
No waiver shall be binding unless in writing and signed by the party waiving the breach.

     14. Notice. Any notice required to be given pursuant to this Agreement shall be
deemed to have been sufficiently given either when served personally or when served by first-class
mail addressed to either party. Notices to the Company shall be effective only when addressed to:

Sherry Whiteley

Intuit Inc.

SVP, HR

2700 Coast Avenue

Mountain View, CA 94043

(or another designated by proper notice under this Agreement). Notice to the Contractor shall
be effective only when addressed to:

Jeff Stiefler

 

(or another designated by proper notice under this Agreement).

     15. Compliance with Law. The Contractor shall comply with any and all applicable laws
and regulations including but not limited to health, safety and security rules and regulations
which are now in effect or which may become applicable.

     16. Entire Agreement. This instrument constitutes and contains the entire Agreement
and final understanding between the parties covering the services provided by the Contractor. It
is intended by the parties as a complete and exclusive statement of the terms of their agreement.
It supersedes all prior negotiations and agreements, proposed or otherwise, whether written or
oral, between the parties concerning employment with the Company or consulting services provided by
the Contractor, with the exception of the Separation Terms and General Release Agreement between
the Contractor and the Company, to be entered into prior to the Effective Date. This is a fully
integrated document. This Agreement may be modified only with a written instrument duly executed
by each of the parties. No person has any authority to make any representation or promise on
behalf of any of the parties not set forth herein and this Agreement has not been executed in
reliance upon any representations or promises except those contained herein.

     17. Headings not Controlling. Headings are used only for ease of reference and are
not controlling.

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**********

In witness whereof, the parties hereto have executed this Agreement as of the date first above
written.

	 	 	 	 	 	 	 	 	 
	Contractor	 	Company	 	 
	 
	 	 	 	 	 	 	 	 
	Jeff Stiefler	 	Intuit Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	By

	 	 	 	By	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 	 	 	 	Name: Sasan Goodarzi	 	 
	 	 	 	 	Title: SVP, IFID	 	 

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EXHIBIT B

RELEASE AGREEMENT

As required by the Separation Terms & General Release Agreement, dated February 4, 2008 between you
and Intuit Inc. (the “Separation Terms Agreement”) to which this Release Agreement (the “Release
Agreement”) is attached as Exhibit B, this Release Agreement sets forth below your waiver
and release of claims in favor of Intuit Inc. and its officers, directors, employees, agents,
representatives, subsidiaries, divisions, affiliated companies, successors, and assigns, including
but not limited to Digital Insight Corporation (collectively, the “Company”) in exchange for the
consideration provided for under the terms of the Separation Terms Agreement.

	1.	 	General Release and Waiver of Claims.

	 	(a)	 	The payments set forth in the Separation Terms Agreement fully satisfy any and
all accrued salary, vacation pay, bonus and commission pay, stock-based compensation,
profit sharing, termination benefits or other compensation to which you may be entitled
by virtue of your employment with the Company or your termination of employment. You
acknowledge that you have no claims and have not filed any claims against the Company
based on your employment with or the separation of your employment with the Company.
	 
	 	(b)	 	To the fullest extent permitted by law, you hereby release and forever
discharge the Company, its successors, subsidiaries and affiliates, directors,
shareholders, current and former officers, agents and employees (all of whom are
collectively referred to as “Releasees”) from any and all existing claims, demands,
causes of action, damages and liabilities, known or unknown, that you ever had, now
have or may claim to have had arising out of or relating in any way to your employment
or non-employment with the Company through the Effective Date of this Release Agreement
(as defined in Section 11), including, without limitation, claims based on any oral,
written or implied employment agreement, claims for wages, bonuses, commissions,
stock-based compensation, expense reimbursement, and any claims that the terms of your
employment with the Company, or the circumstances of your separation, were wrongful, in
breach of any obligation of the Company or in violation of any of your rights,
contractual, statutory or otherwise. Each of the Releasees is intended to be a third
party beneficiary of this General Release and Waiver of Claims.

	 	(i)	 	Release of Statutory and Common Law Claims. Such
rights include, but are not limited to, your rights under the following federal
and state statutes: the Employee Retirement Income Security Act (ERISA)
(regarding employee benefits); the Occupational Safety and Health Act (safety
matters); the Family and Medical Leave Act of 1993; the Worker Adjustment and
Retraining Act (“WARN”) (notification requirements for employers who are
curtailing or closing an operation) and common law; tort; wrongful discharge;
public policy; workers’ compensation retaliation; tortious interference with
contractual relations, misrepresentation, fraud, loss of consortium; slander,
libel, defamation, intentional or negligent infliction of emotional distress;
claims for wages, bonuses, commissions, stock-based compensation or fringe
benefits; vacation pay; sick pay; insurance reimbursement, medical expenses,
and the like.
	 
	 	(ii)	 	Release of Discrimination Claims. You understand that
various federal, state and local laws prohibit age, sex, race, disability,
benefits, pension, health and other

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	 	 	 	forms of discrimination, harassment and retaliation, and that these laws can
be enforced through the U.S. Equal Employment Opportunity Commission, the
National Labor Relations Board, the Department of Labor, and similar state
and local agencies and federal and state courts. You understand that if you
believe your treatment by the Company violated any laws, you have the right
to consult with these agencies and to file a charge with them. Instead, you
have decided voluntarily to enter into this Release Agreement, release the
claims and waive the right to recover any amounts to which you may have been
entitled under such laws, including but not limited to, any claims you may
have based on age or under the Age Discrimination in Employment Act of 1967
(ADEA; 29 U.S.C. Section 621 et. seq.) (age); the Older Workers Benefit
Protection Act (“OWBPA”) (age); Title VII of the Civil Rights Act of 1964
(race, color, religion, national origin or sex); the 1991 Civil Rights Act;
the Vocational Rehabilitation Act of 1973 (disability); The Americans with
Disabilities Act of 1990 (disability); 42 U.S.C. Section 1981, 1986 and 1988
(race); the Equal Pay Act of 1963 (prohibits pay differentials based on
sex); the Immigration Reform and Control Act of 1986; Executive Order 11246
(race, color, religion, sex or national origin); Executive Order 11141
(age); Vietnam Era Veterans Readjustment Assistance Act of 1974 (Vietnam era
veterans and disabled veterans); and California state statutes and local
laws of similar effect.
	 
	 	(iii)	 	Releasees and you do not intend to release claims (i) which
you may not release as a matter of law (including, but not limited to,
indemnification claims under applicable law); (ii) for unemployment, state
disability and/or paid family leave insurance benefits pursuant to the terms of
applicable state law; (iii) for any benefit entitlements that are vested as of
the Termination Date pursuant to the terms of a Company-sponsored benefit plan
governed by the federal law known as “ERISA”, other than the Digital Insight
Corporation Change in Control Severance Plan; (iv) for vested stock and/or
vested option shares pursuant to the written terms and conditions of your
existing stock and stock option grants and agreements existing as of the
Termination Date; (v) for outplacement services as provided in the Intuit Offer
Letter and (vi) to enforce the Company’s 280G gross-up obligations as described
in the Intuit Offer Letter. To the fullest extent permitted by law, any
dispute regarding the scope of this general release shall be determined by an
arbitrator under the procedures set forth in paragraph 4.

	2.	 	Waiver of Unknown Claims. You expressly waive any benefits of Section 1542 of the
Civil Code of the State of California (& any other laws of similar effect), which provides:

	 	(a)	 	“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW
OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE
DEBTOR.”

	3.	 	Covenant Not to Sue.

	 	(a)	 	To the fullest extent permitted by law, you agree that you will not now or at
any time in the future pursue any charge, claim, or action of any kind, nature and
character whatsoever against any of the Releasees, or cause or knowingly permit any
such charge, claim or action to be pursued, in any federal, state or municipal court,
administrative

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	 	 	 	agency, arbitral forum, or other tribunal, arising out of any of the matters covered
by paragraphs 1 and 2 above.
	 
	 	(b)	 	You further agree that you will not pursue, join, participate, encourage, or
directly or indirectly assist in the pursuit of any legal claims against the Releasees,
whether the claims are brought on your own behalf or on behalf of any other person or
entity.
	 
	 	(c)	 	Nothing herein prohibits you from: (1) providing truthful testimony in response
to a subpoena or other compulsory legal process, and/or (2) filing a charge or
complaint with a government agency such as the Equal Employment Opportunity Commission,
the National Labor Relations Board or applicable state anti-discrimination agency.

	4.	 	Arbitration of Disputes. Except for claims for injunctive relief arising out of a
breach of the Invention Assignment & Confidentiality Agreement and/or the Digital Insight
Employee Nondisclosure & Invention Assignment Agreement, you and the Company agree to submit
to mandatory binding arbitration any future disputes between you and the Company, including
any claim arising out of or relating to this Release Agreement. By signing below, you and the
Company waive any rights you and the Company may have to trial by jury of any such claims. You
agree that the American Arbitration Association will administer any such arbitration(s) under
its National Rules for the Resolution of Employment Disputes, with administrative and
arbitrator’s fees to be borne by the Company. The arbitrator shall issue a written
arbitration decision stating his or her essential findings and conclusions upon which the
award is based. A party’s right to review of the decision is limited to the grounds provided
under applicable law. The parties agree that the arbitration award shall be enforceable in
any court having jurisdiction to enforce this Release Agreement. This Release Agreement does
not extend or waive any statutes of limitations or other provisions of law that specify the
time within which a claim must be brought. Notwithstanding the foregoing, each party retains
the right to seek preliminary injunctive relief in a court of competent jurisdiction to
preserve the status quo or prevent irreparable injury before a matter can be heard in
arbitration.
	 
	5.	 	Review of Release Agreement. You may take up to twenty-one (21) days from the date
you receive this Release Agreement, to consider whether to sign this Release Agreement. By
signing below, you affirm that you were advised to consult with an attorney before signing
this Release Agreement and were given ample opportunity to do so. You understand that this
Release Agreement will not become effective until you return the original of this Release
Agreement, properly signed by you, to the Company, Attention: Jim Grenier, 2700 Coast Avenue,
Mountain View, CA 94043, and after expiration of the revocation period without revocation by
you.
	 
	6.	 	Revocation of Release Agreement. You acknowledge and understand that you may revoke
this Release Agreement by faxing a written notice of revocation to Jim Grenier at 650-944-5225
any time up to seven (7) days after you sign it. After the revocation period has passed,
however, you may no longer revoke your Release Agreement.
	 
	7.	 	Entire Agreement. This Release Agreement and the Separation Terms Agreement are the
entire agreement between you and the Company with respect to the subject matter herein and
supersede all prior negotiations and agreements, whether written or oral, relating to this
subject matter. You acknowledge that neither the Company nor its agents or attorneys, made
any promise or representation, express or implied, written or oral, not contained in this
Release Agreement to induce you to execute this Release Agreement. You acknowledge that you
have signed this Release Agreement voluntarily and without coercion, relying only on such
promises,

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	 	 	representations and warranties as are contained in this document and understand that you do
not waive any right or claim that may arise after the date this Release Agreement becomes
effective.
	 
	8.	 	Modification. By signing below, you acknowledge your understanding that this Release
Agreement may not be altered, amended, modified, or otherwise changed in any respect except by
another written agreement that specifically refers to this Release Agreement, executed by your
and the Company’s authorized representatives.
	 
	9.	 	Governing Law. This Release Agreement is governed by, and is to be interpreted
according to, the laws of the State of California.
	 
	10.	 	Savings and Severability Clause. Should any court, arbitrator or government agency
of competent jurisdiction declare or determine any of the provisions of this Release Agreement
to be illegal, invalid or unenforceable, the remaining parts, terms or provisions shall not be
affected thereby and shall remain legal, valid and enforceable. Further, if a court,
arbitrator or agency concludes that any claim under paragraph 1 above may not be released as a
matter of law, the General Release in paragraph 1 and the Waiver Of Unknown Claims in
paragraph 2 shall otherwise remain effective as to any and all other claims.
	 
	11.	 	Effective Date. The effective date of this Release Agreement shall be the eighth day
following the date this Release Agreement was signed, without having been revoked within seven
(7) days thereafter, by you.

Please sign this Release Agreement no earlier than your Termination Date (as defined in the
Separation Terms Agreement) and return it to Jim Grenier at the address above.

PLEASE REVIEW CAREFULLY. THIS RELEASE AGREEMENT CONTAINS A
RELEASE OF KNOWN AND UNKNOWN CLAIMS.

REVIEWED, UNDERSTOOD AND AGREED:

	 	 	 	 	 	 	 
	 

	 	Date: 
	 	 	 	 
	 	 	 	 	 	 
	Jeffrey E. Stiefler
	 	 	 	 	 	 

DO NOT SIGN PRIOR TO THE TERMINATION DATE

4exv10w1

 

Exhibit 10.1

NOTE REPURCHASE AGREEMENT

     THIS NOTE REPURCHASE AGREEMENT (this “Agreement”) to repurchase VaxGen, Inc. 51/2% Convertible
Senior Subordinated Notes Due April 1, 2010 is made as of February 4, 2008, by and between Xmark
Opportunity Fund, L.P. (“Fund L.P.”) and Xmark Opportunity Fund, Ltd. (“Fund Ltd.”, and together
with Fund L.P., the “Holders”), on the one hand, and VaxGen, Inc., a Delaware corporation
(“Company”), on the other hand.

W I T N E S S E T H:

     WHEREAS, the Holders are the owners and holders of those two certain 51/2% Convertible Senior
Subordinated Notes Due April 1, 2010 (together, the “Notes”), in the aggregate principal amount of
One Million Five Hundred Thousand Dollars ($1,500,000), issued under an Indenture, dated as of
April 5, 2005 (the “Indenture”), between the Company and U.S. Bank National Association, as trustee
(the “Trustee”);

     WHEREAS, the Notes, to date, have not matured; and

     WHEREAS, the Holders, desiring to sell the Notes, approached the Company with respect thereto,
and the Company in turn desires to repurchase the Notes.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Holders and the Company hereby agree as follows:

          1. Sale of Notes. Subject to the terms and conditions of this Agreement, the Company
agrees to purchase from the Holders, and the Holders agree to sell to the Company, the Notes at an
aggregate purchase price of Seven Hundred Fifty Thousand Dollars ($750,000), plus accrued and
unpaid interest thereon in the amount of Twenty-Eight Thousand Four Hundred Sixteen Dollars and
Sixty-Seven Cents ($28,416.67) (collectively, the “Purchase Price”). The purchase and sale of the
Notes shall take place at the offices of Cooley Godward Kronish, 3175 Hanover Street, Palo Alto,
California 94304 at 9:00 A.M. (local time), on the date hereof (which time and place are designated
as the “Closing”). At the Closing, the Holders shall deliver to the Company the Notes, duly
endorsed or accompanied by an assignment duly endorsed and in a form acceptable to the Trustee,
against payment of the Purchase Price therefor by wire transfer in the amounts and using the wire
transfer instructions as set forth on Exhibit A hereto. Upon receipt by the Holders of the
Purchase Price, the Company shall become the legal and beneficial owner of the Notes and of all
rights and interest therein or related thereto and to the monies due and to become due under the
terms of the Notes. The Holders hereby agree that upon receipt of the Purchase Price, the Notes
shall be cancelled and the Company shall have no further obligation to the Holders thereunder.

 

 

          2. Representations and Warranties of the Holders. Each of the Holders hereby
represents and warrants to the Company with respect to the Note issued to such Holder that:

               2.1 Ownership of Note. The Holder has, and at the Closing will have, good and
marketable right, title and interest (legal and beneficial) in and to the Note, free and clear of
all liens, pledges, security interests, charges, contractual obligations, claims or encumbrances of
any kind. Upon payment for the Note in accordance with this Agreement, the Holder will convey the
Note to the Company free and clear of all liens, pledges, security interests, charges, contractual
obligations, claims or encumbrances of any kind.

               2.2 Organization; Authorization. The Holder has full power and authority to enter
into this Agreement. The execution, delivery and performance by the Holder of this Agreement has
been duly authorized by all requisite action by the Holder and this Agreement constitutes a valid
and binding obligation of the Holder, enforceable against the Holder in accordance with its terms,
except as enforcement may be limited by general principles of equity and by bankruptcy, insolvency
and similar laws affecting creditors’ rights and remedies generally.

               2.3 No Consent Required. No consent, authorization, approval, order, license,
certificate or permit or act of or from, or declaration or filing with, any foreign, federal,
state, local or other governmental authority or regulatory body or any court or other tribunal or
any party to any contract, agreement, instrument, lease or license to which the Holder is a party,
is required for the execution, delivery or performance by the Holder of this Agreement or any of
the other agreements, instruments and documents being or to be executed and delivered hereunder or
in connection herewith or for the consummation of the transactions contemplated hereby.

               2.4 Disclosure of Information. The Holder has received all the information it
considers necessary or appropriate to determine whether to sell the Note to the Company pursuant to
this Agreement. The Holder acknowledges (i) the Company has not made any representation or
warranty, express or implied, except as set forth herein, regarding any aspect of the sale and
purchase of the Note, the operation or financial condition of the Company or the value of the Note,
(ii) that it is not relying upon the Company in making its decision to sell the Note to the Company
pursuant to this Agreement and (iii) that the Company is relying upon the truth of the
representations and warranties in this Section 2 in connection with the purchase of the Note
hereunder.

               2.5 Tax Consequences. The Holder has had an opportunity to review the federal, state
and local tax consequences of the sale of the Note to the Company and the transactions contemplated
by this Agreement with its own tax advisors. The Holder is relying solely on such advisors and not
on any statements or representations of the Company.

               2.6 No Conflict. Neither the execution and delivery of this Agreement or the
consummation of any of the transactions contemplated hereby nor compliance with or fulfillment of
the terms, conditions and provisions hereof or thereof will conflict with, result in a breach of
the terms, conditions or provisions of, or constitute a default (with or without notice or lapse of
time, or both), or an event creating rights of acceleration, termination or cancellation or a loss
of rights under (i) any material note, instrument, agreement, mortgage, lease, license, franchise,
permit or other authorization, right, restriction or obligation to which the Holder is a
party or by which the Holder or any of its properties is bound, (ii) any judgment or decree
applicable to, or affecting, the Holder or (iii) any statute, law or rule to which the Holder is
subject.

-2-

 

               2.7 No Solicitation. The Holder has made no general solicitation in connection with
the sale of the Note, acknowledges that it independently approached the Company regarding the
transactions contemplated hereby and that the Company did not initiate or attempt to initiate the
transactions contemplated hereby.

          3. Representations and Warranties of the Company. The Company hereby represents and
warrants to the Holders that:

               3.1 Organization; Authorization. The Company has full power and authority to enter
into this Agreement. The execution, delivery and performance by the Company of this Agreement has
been duly authorized by all requisite action by the Company and this Agreement constitutes a valid
and binding obligation of the Company, enforceable against the Company in accordance with its
terms, except as enforcement may be limited by general principles of equity and by bankruptcy,
insolvency and similar laws affecting creditors’ rights and remedies generally.

               3.2 No Consent Required. No consent, authorization, approval, order, license,
certificate or permit or act of or from, or declaration or filing with, any foreign, federal,
state, local or other governmental authority or regulatory body or any court or other tribunal or
any party to any contract, agreement, instrument, lease or license to which the Company is a party,
is required for the execution, delivery or performance by the Company of this Agreement or any of
the other agreements, instruments and documents being or to be executed and delivered hereunder or
in connection herewith or for the consummation of the transactions contemplated hereby.

               3.3 No Conflict. Neither the execution and delivery of this Agreement or the
consummation of any of the transactions contemplated hereby nor compliance with or fulfillment of
the terms, conditions and provisions hereof or thereof will conflict with, result in a breach of
the terms, conditions or provisions of, or constitute a default (with or without notice or lapse of
time, or both), or an event creating rights of acceleration, termination or cancellation or a loss
of rights under (i) any material note, instrument, agreement, mortgage, lease, license, franchise,
permit or other authorization, right, restriction or obligation to which the Company is a party or
by which the Company or any of its properties is bound, (ii) any judgment or decree applicable to,
or affecting, the Company or (iii) any statute, law or rule to which the Company is subject.

               3.4 No Litigation. There is no action, suit, proceeding, judgment, claim or
investigation pending or, to the knowledge of the Company, threatened against the Company which
could reasonably be expected in any manner to challenge or seek to prevent, enjoin, alter or
materially delay any of the transactions contemplated by this Agreement.

-3-

 

          4. Securities Act; Transfer Restrictions. The Company hereby acknowledges
that the (i) securities are not registered pursuant to the Securities Act of 1933, as amended,
and (ii) the Notes and the common stock underlying the Notes may only may be disposed of in
compliance with Federal and State securities laws.

          5. Miscellaneous.

               5.1 Governing Law. This Agreement shall be governed by and construed under the laws
of the State of New York, without regard to its choice of law provisions. The parties hereto
hereby agree that any action brought under this Agreement or related to the transactions
contemplated hereby shall be brought in a Federal or State court located in the County of San
Francisco in the State of California.

               5.2 Counterparts. This Agreement may be executed in two or more counterparts and by
facsimile or electronic signature, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

               5.3 Publicity. The Holders will use reasonable commercial efforts to keep the terms
and existence of this transaction confidential, provided that the Holder may share the details of
this transaction in confidence with its attorneys, investors and financial and tax advisors, and
may advise other potential purchasers of the Notes that the Notes have been repurchased by the
Company. The Holders shall not be prohibited from referring communications with any other party
regarding the transactions contemplated hereby to the Company.

               5.4 Titles and Subtitles. The titles and subtitles used in this Agreement are used
for convenience only and are not to be considered in construing or interpreting this Agreement.

               5.5 Notices. All notices and other communications given or made pursuant hereto shall
be in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be
notified, (ii) when sent by confirmed facsimile if sent during the normal business hours of the
recipient; if not, then on the next business day, (iii) five (5) days after having been sent by
registered or certified mail, return receipt requested, postage prepaid or (iv) one (1) day after
deposit with a nationally-recognized overnight courier, specifying next-day delivery, with written
verification of receipt. All communications shall be sent to the respective parties at the
addresses set forth on the signature pages attached hereto (or at such other addresses as shall be
specified by notice given in accordance with this Section 5.5).

               5.6 Amendment and Waivers. Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written consent of Holders and
the Company.

               5.7 Further Assurances. Each party hereby agrees to execute any additional documents
and take any additional actions as may be reasonably necessary to carry out the terms of this
Agreement.

-4-

 

               5.8 Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision shall be excluded from this Agreement and the
balance of this Agreement shall be interpreted as if such provision were so excluded and shall be
enforceable in accordance with its terms.

               5.9 Entire Agreement. This Agreement and the documents referred to herein constitute
the entire agreement among the parties and no party shall be liable or bound to any other party in
any manner by any warranties, representations or covenants except as specifically set forth herein
or therein.

-5-

 

     IN WITNESS WHEREOF, the Holders and the Company have executed this Agreement effective as of
the date and year first above written.

	 	 	 
	XMARK OPPORTUNITY FUND, L.P.
	By:

	 	XMARK OPPORTUNITY GP, LLC, its General Partner
	By:

	 	XMARK OPPORTUNITY PARTNERS, LLC, its Sole Member
	By:

	 	XMARK CAPITAL PARTNERS, LLC, its Managing Member

	 	 	 	 	 
	By: 

Name:

	 	/s/ Mitchell D. Kaye
 

Mitchell D. Kaye
	 	 
	Title:

	 	Chief Executive Officer	 	 

	 	 	 
	XMARK OPPORTUNITY FUND, LTD.
	By:

	 	XMARK OPPORTUNITY MANAGER, LLC, its Investment Manager
	By:

	 	XMARK OPPORTUNITY PARTNERS, LLC, its Sole Member
	By:

	 	XMARK CAPITAL PARTNERS, LLC, its Managing Member

	 	 	 	 	 
	By: 

Name:

	 	/s/ Mitchell D. Kaye
 

Mitchell D. Kaye
	 	 
	Title:

	 	Chief Executive Officer	 	 

Address for notices:

Xmark Capital Partners, LLC

90 Grove Street

Suite 201

Ridgefield, CT 06877

VAXGEN, INC.

	 	 	 	 	 
	By: 

Name:

	 	/s/ James P. Panek
 

James P. Panek
	 	 
	Title:

	 	President and Chief Executive Officer	 	 

Address for notices:

VaxGen, Inc.

349 Oyster Point Boulevard

South San Francisco, CA 94080

-6-

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