Document:

ex10_7.htm

Exhibit 10.7

 

Rights and Preferences of CBD Series B Preferred Shares

As amended January 27, 2015

The terms and conditions which apply to the Series B Preferred Shares (also known as “Class B Preferred Shares”) are as follows:

	
A.  

	
Rights of Holder:  Each Series B Preferred  Share confers on the holder:

(i)       in liquidation:

 

	 	
(a)  

	
the right to a preference over the holders of the Company’s ordinary shares in an amount equal to the Face Value of each such share, which equals one thousand U.S. dollars (US $1,000.00);

 

	 	
(b)  

	
the right to distribution of the Face Value pari pasu with the distribution rights of   the Company’s most senior preference shares of any other series that is outstanding or may be issued in the future.

	 	
(ii)

	
voting rights in relation to Series B Preferred matters and other matters permitted by the Company’s Constitution and in accordance with the Act;

 

	 	
(iii)

	

a right to receive dividends, if lawfully payable, on March 31, June 30, September 30 and December 31 each year at an annual rate calculated on the Face Value of  8% from the date of issuance through January 31, 2015, after which date no dividends shall accrue;

 

	 	
 

	

Dividends may be paid, at the Company’s option, in cash, ordinary shares valued at the Conversion Price in effect on the date of payment (if registered and able to be freely traded on a national U.S. exchange at the time of issuance), or additional Series B Preferred shares.

 

If dividends are not paid in accordance with the foregoing, the right to receive dividends shall be cumulative in accordance herewith;

 

	 	
(iv)

	

a right to receive the same information required to be filed by a company subject to the reporting requirements of §15(d) of the 1934 Act at the same time such information would otherwise be required to be filed with the SEC.  The holders will also receive other information reasonably requested.

 

	 	
(v)

	

a right to redemption by holder, subject to the Act for Face Value plus any accrued but unpaid dividends, upon (a) the filing by the Company for bankruptcy, administrative protection under applicable statutes or liquidation or analogous proceedings or an adjudication by a competent legal authority that the Company is insolvent or (b) consummation of a change in control transaction (including without limitation a sale, merger or disposition of substantially all of its assets) pursuant to which the Company’s shares no longer trade on a stock exchange.

 

	 	
(vi)

	

a right to convert any Series B Preferred Share to ordinary shares (Conversion Shares) at any time subject only to the Conversion Restrictions set forth below in Article D. The number of Conversion Shares to be issued upon any Series B Preferred Share conversion is calculated by dividing the Face Value plus accrued but unpaid dividends on the Conversion Date by the Conversion Price. Conversion Price means the lowest price actually paid for Company ordinary shares in the Capital Raising, as defined in the Article 4.1(c) of the DOCA (the “Offering Price”) multiplied by 1.325, it being understood that the minimum Offering Price under the DOCA is US$0.03637 per ordinary share and the actual Offering Price is US$0.03785 per ordinary share with a resulting Conversion Price of US$0.05015125 per ordinary share and in no event higher than US$0.05015125 per ordinary share. The Conversion Price shall be adjusted up or down as applicable to reflect stock consolidations or splits.

 

	
B.  

	

Company Redemption Rights.  Provided the Company has not been in default of any material obligation to a Holder, the Company shall have the right to redeem any number of Series B preference shares at any time for an amount equal to Face Value plus accrued but unpaid dividends following and during the effectiveness of the registration of the Conversion Shares.

 

  

  

  

 

	
C.  

	
Automatic Conversion upon Fundamental Change.  The Series B Preferred Shares of any holder shall automatically convert at the Conversion Price at such time as the Company consummates a change in control transaction (including without limitation a sale, merger or disposition of substantially all of its assets) pursuant to which the Company’s shares no longer trade on a stock exchange.  If Automatic Conversion is triggered by this clause, such conversion shall not take place unless holder has had at least 10 business days prior notice of the change in control transaction in which to exercise the redemption rights described in Article A.(v) above.

 

	
D.  

	
Conversion Restrictions.  Except in the case of automatic conversion pursuant to Article C above:

 

	
   i. 

	
no holder of a Series B Preferred Share shall request conversion of any Series B Preferred Share if the Conversion Shares issuable pursuant to such request, when aggregated with all other securities then beneficially owned by the Purchaser and its affiliates (as calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder) would result in the beneficial ownership by the Purchaser and its affiliates of more than 9.99% of the then issued and outstanding Ordinary Shares (the “Beneficial Ownership Threshold”) and the Company shall not issue Conversion Shares to any holder of Series B Preferred Shares if doing so would cause the Beneficial Ownership Threshold to be exceeded; and

 

	
   ii. 

	
no holder of a Series B Preferred Share shall request conversion of any Series B Preferred Share if the Conversion Shares issuable pursuant to such request would exceed 19.9% of the Company’s outstanding ordinary shares prior to the issuance of the Conversion Shares and thereby cause the Company to be in breach of Chapter 6 of the Act and the Company shall not issue Conversion Shares to any holder of Series B Preferred Shares if doing so would cause the Company or such holder to be in breach of Chapter 6 of the Act.

 

2EX-10.1

 Exhibit 10.1 

TRANSITION AGREEMENT 

IT IS HEREBY AGREED by and between Leidos Holdings, Inc., a Delaware corporation (the “Company”), and Mark W. Sopp
(“Executive”), for the good and sufficient consideration set forth below, as follows, effective as of January 23, 2015: 
  

	1.	Effective as of April 10, 2015 or such other date as mutually agreed by Executive and the Company (the “Transition Date”), Executive’s employment with the Company shall terminate and he shall
no longer serve as Executive Vice President and Chief Financial Officer of the Company. Executive hereby resigns from all positions with the Company and its affiliates as of the Transition Date, other than as provided in Section 4 below.

  

	2.	Through the Transition Date, the Company shall continue to pay Executive his base salary at the annual rate of $640,000 (the “Base Salary”), Executive shall be eligible to receive a cash bonus for the
Company’s fiscal year ending January 30, 2015 in accordance with applicable plan terms, and Executive shall be eligible to continue participation in the Company’s generally-applicable employee benefit plans consistent with plan terms.
As of or promptly following the Transition Date, the Company shall pay Executive all accrued and unpaid Base Salary, all accrued and unused Comprehensive Leave, and all unreimbursed business expense incurred through the Transition Date in accordance
with the policies and procedures adopted by the Company for reimbursement of such expenses. Effective as of the Transition Date, Executive shall cease active participation in the Company’s employee benefit plans and shall be entitled to elect
“COBRA” health continuation coverage in compliance with the requirements of COBRA and applicable plan terms. The parties intend that Executive shall experience a “separation from service” (within the meaning of Section 409A
of the Internal Revenue Code) as of the Transition Date. 

  

	3.	Subject to Executive executing (and not revoking) the Release of Claims attached hereto as Exhibit A (the “Release of Claims”) on the Transition Date, the Company shall provide Executive the following
payments and benefits: 

  

	 	a.	A cash payment of $11,340 (reflecting the estimated cost of “COBRA” health continuation coverage for twelve (12) months), to be paid on the first payroll date following the Release of Claims becoming
irrevocable; 

  

	 	b.	A cash payment of $50,000 to defray Executive’s expenses associated with his transition from the Company, to be paid on the first payroll date following the Release of Claims becoming irrevocable;

  

	 	c.	A cash payment of $1,650,000, to be paid on the first payroll date following the Release of Claims becoming irrevocable; and 

  

	 	d.	 A cash bonus for the fiscal year commencing January 31, 2015 (“FY 2015C”) pursuant to the Company’s Annual Incentive
Program. The right to receive such bonus is performance-based, and eligibility to receive such 

	 	
bonus is not a guarantee that Executive will receive any payment. Such payment (if any) shall be based on Executive’s individual performance, will be pro-rated based on Executive’s
employment from January 31, 2015 through the Transition Date, and shall be paid in calendar year 2016 when FY 2015C bonuses are payable to the Company’s executives generally. 

 

	 	e.	Notwithstanding Section 5(a)(i) of the 2015-2017 Performance Share Award agreement for the Shares granted on April 5, 2014, Executive shall be eligible to receive, on (or as promptly as administratively
practicable following) the Determination Date as defined in the Award Agreement, a prorated portion of the Shares that would otherwise be issuable to Executive in the absence of his termination of employment without cause, based on the actual
achievement of the Performance Goals for each fiscal year during the Performance Period in which Executive remained employed. The proration factor to be applied to Executive’s target number of Shares for the fiscal year in which the termination
occurs is determined based on the ratio of: (x) the number of days elapsed from the beginning of the fiscal year to the employment termination date, over (y) the total number of days in the fiscal year. 

 

	4.	From the Transition Date through the second anniversary thereof (the “Consulting Period”), Executive shall serve as a consultant to the Company and shall provide such consulting services as reasonably
requested by the Company (the “Consulting Services”). The Company shall pay Executive at the rate of $1,000 per hour worked (the “Consulting Fee”) during the Consulting Period. During the Consulting Period,
Consulting Services also includes Executive’s cooperation with the Company in any internal investigation, any administrative, regulatory, or judicial proceeding, or any dispute with a third party, as described in paragraph 16 of this Transition
Agreement. Executive shall submit a monthly invoice detailing his hours worked during the immediately-preceding month, and the Company shall pay Executive the Consulting Fee related thereto within thirty (30) days following its receipt of each
such invoice. During the Consulting Period, the Company shall directly pay or reimburse Executive for such reasonable travel, entertainment, or other expenses as he may incur at the request of the Company. Executive shall furnish the Company with
such evidence that such expenses were incurred as the Company may from time to time require or request. The Company may terminate the Consulting Period at any time if Executive accepts a position at any entity that, in the Company’s reasonable
judgment, offers products or services competitive with those of the Company. Executive acknowledges that the Company shall have no right to direct or control his performance of Consulting Services hereunder and that he shall be treated as an
independent contractor for all purposes during the Consulting Period. As such, Executive shall not actively participate in any employee benefit plan of the Company or an affiliate and no income or other taxes shall be withheld from the Consulting
Fee (and, for the avoidance of doubt, his services during the Consulting Period shall not be credited as vesting service for purposes of any Company plan, program or arrangement). 

  
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	5.	With the exception of Section 3 (e) above, all of Executive’s equity awards shall cease vesting as of the Transition Date, any unvested awards shall be forfeited as of the Transition Date, and any vested
awards shall be treated as provided in the applicable plan document and/or award agreement. For the avoidance of doubt, the vesting of Executive’s equity awards shall not accelerate in connection with his termination of employment.

  

	6.	Executive understands that any payments or benefits paid or granted to him pursuant to Sections 3 and 4 hereof (other than accrued Base Salary and COBRA rights) represent consideration for signing this Transition
Agreement and are not salary, payments or benefits to which he was already entitled. Executive understands and agrees that he will not receive the payments and benefits specified in Sections 3 and 4 hereof (other than accrued Base Salary and COBRA
rights) unless he executes this Transition Agreement and does not revoke this Transition Agreement within the time period specified herein. Such payments and benefits shall not be considered compensation for purposes of any employee benefit plan,
program, policy or arrangement maintained or hereafter established by the Company or any of its subsidiaries or affiliates. 

  

	7.	Except as specifically provided herein, Executive knowingly and voluntarily (for himself, his family, and his heirs, executors, administrators and assigns) releases and forever discharges the Company and its
subsidiaries and affiliates and all present and former directors, managers, officers, agents, representatives, employees, successors and assigns of the Company and its subsidiaries and affiliates and the Company’s direct or indirect owners
(collectively, the “Released Parties”) from any and all claims, suits, controversies, actions, causes of action, cross-claims, counter-claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages,
other damages, claims for costs and attorneys’ fees, or liabilities of any nature whatsoever in law and in equity, both past and present (through the date this Transition Agreement becomes effective and enforceable) and whether known or
unknown, suspected, or claimed against the Company or any of the Released Parties which Executive or any of his heirs, family members, executors, administrators or assigns, may have, which arise out of or are connected with his employment with, or
his separation or termination from, the Company (including, but not limited to, any allegation, claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in
Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the Worker Adjustment Retraining
and Notification Act; the Employee Retirement Income Security Act of 1974; the Fair Labor Standards Act; or their state or local counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state, or
federal law, regulation or ordinance; or under any public policy, contract or tort, or under common law; or arising under any policies, practices or procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction of
emotional distress, defamation; or any claim for costs, fees, or other expenses, including attorneys’ fees incurred in these matters) (all of the foregoing collectively referred to herein as the “Claims”); except that he does
not waive or release (a) his right to enforce this Agreement, (b) claims for vested benefits under the Company’s 401(k) plan and other broad-based employee benefit plans, or (c) any rights he may have to indemnification by the
Company pursuant to the Company’s governing documents. 

  
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	8.	Executive represents that he has made no assignment or transfer of any right, claim, demand, cause of action, or other matter covered by this Agreement. 

 

	9.	Executive agrees that this Transition Agreement does not waive or release any rights or claims that he may have under the Age Discrimination in Employment Act of 1967 which arise after the date he executes this
Transition Agreement. Executive acknowledges and agrees that his separation from employment with the Company in compliance with the terms hereof shall not serve as the basis for any claim or action (including, without limitation, any claim under the
Age Discrimination in Employment Act of 1967). 

  

	10.	In signing this Transition Agreement, Executive acknowledges and intends that it shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied. He expressly consents that this
Transition Agreement shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected Claims, if any, as well as those relating to any other Claims hereinabove
mentioned or implied. Executive acknowledges and agrees that this waiver is an essential and material term of this Transition Agreement and that without such waiver the Company would not have agreed to the terms hereof. Executive further agrees that
in the event he should bring a Claim seeking damages against the Company, or in the event he should seek to recover against the Company in any Claim brought by a governmental agency on his behalf, this Transition Agreement shall serve as a complete
defense to such Claims to the extent released hereunder. Executive further agrees that he is not aware of any pending charge or complaint of the type described in Section 7 as of the execution of this Transition Agreement. 

 

	11.	Executive agrees that neither this Transition Agreement, nor the furnishing of the consideration for this Transition Agreement, shall be deemed or construed at any time to be an admission by the Company, any Released
Party or himself of any improper or unlawful conduct. 

  

	12.	For a period of two years following the Transition Date, Executive agrees that he shall not, directly or indirectly, on behalf of himself or any other person or entity other than the Company, offer to provide services
that would cause him to use, disclose, or access confidential or proprietary Company information. 

  

	13.	If any restriction or provision set forth in Section 12 hereof is found by any court of competent jurisdiction to be unenforceable because it is excessively broad, extends for too long a period of time, or covers
too great a range of activities or too broad a geographic area, the parties agree that such restriction or provision shall be construed and interpreted to extend only over the maximum period of time, range of activities, or geographic area which is
found by such court to be enforceable. 

  

	14.	 The parties acknowledge and agree that restrictions contained in Section 12 hereof are necessary for the protection of the business and goodwill
of the Company and are 

  
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considered by Executive to be reasonable for such purpose. Executive agrees that any breach of Section 12 may cause the Company substantial and irrevocable damage that is difficult to
measure. Therefore, if there is any such breach or threatened breach, Executive agrees that the Company, in addition to such other remedies which may be available, shall have the right to seek an injunction from a court restraining such a breach or
threatened breach and the right to specific performance of the provisions of this Agreement and Executive hereby waives the adequacy of a remedy at law as a defense to such relief. 

 

	15.	Executive and the Company agree that during Executive’s employment and for a period of five years after the Transition Date, neither Executive nor the Company will make, publish or communicate at any time to any
person or entity, any Disparaging (defined below) remarks, comments or statements concerning the other (or, in the case of the Company, any of its directors, managers, officers, affiliates or employees). The previous sentence shall not apply,
however, in the case of any truthful remarks, comments or statements which are made (a) in testimony pursuant to a court order, subpoena, or legal process, (b) in discussions with any regulator or government agency, (c) to a court,
mediator or arbitrator in connection with any litigation or dispute between Executive and the Company, or (d) privately, including, without limitation, in the course of the Company’s supervision or review of Executive’s job
performance. “Disparaging” remarks, comments or statements are those that impugn the character, honesty, integrity, morality, business acumen or abilities of the individual or entity being discussed or that would adversely effect in any
manner the conduct of the business or the business reputation of such individual or entity. 

  

	16.	Executive agrees to reasonably cooperate with the Company in any internal investigation, any administrative, regulatory, or judicial proceeding or any dispute with a third party. he understands and agrees that his
cooperation may include, but not be limited to, making himself available to the Company upon reasonable notice for interviews and factual investigations; appearing at the Company’s request to give testimony without requiring service of a
subpoena or other legal process; volunteering to the Company pertinent information; and turning over to the Company all relevant documents which are or may come into his possession all at times and on schedules that are reasonably consistent with
his other permitted activities and commitments. Executive understands that in the event the Company asks for his cooperation in accordance with this provision for any investigation or proceeding that is not related to misconduct of Executive, the
Company shall reimburse, or cause to be reimbursed, in accordance with Company policy, the reasonable expenses Executive incurs in connection therewith. 

  

	17.	Executive waives all rights under Section 1542 of the California Civil Code, which section has been fully explained to him by his legal counsel and which he fully understands, and any other similar provision or the
law of any other state or jurisdiction. Section 1542 provides as follows:  

 A general release does not extend
to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.  

  
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	18.	Notwithstanding anything in this Transition Agreement to the contrary, this Transition Agreement shall not relinquish, diminish, or in any way affect any rights or claims arising out of any breach by Executive, the
Company or any Released Party of this Transition Agreement after the date hereof. 

  

	19.	Amounts payable hereunder are subject to all tax and other legally-required withholdings. 

  

	20.	No right to receive payments and benefits under this Agreement shall be subject to set off, offset, anticipation, commutation, alienation, assignment, encumbrance, charge, pledge or hypothecation or to execution,
attachment, levy, or similar process or assignment by operation of law. 

  

	21.	It is further understood and agreed that this Transition Agreement shall be binding upon and will inure to the benefit of Executive’s spouse, heirs, successors, agents, employees, representatives, executors and
administrators and shall be binding upon and will inure to the benefit of the individual and/or collective successors and assigns of the Released Parties and their successors, assigns, agents and/or representatives 

 

	22.	This Agreement represents the entire understanding and agreement between the parties as to the subject matter hereof and supersedes all prior agreements, arrangements and understandings between them concerning the
subject matter hereof, and any subsequent written agreements shall be construed to change, amend, alter, repeal or invalidate this Agreement, only to the extent that this Agreement is specifically identified in and made subject to such other written
agreements and is executed by both parties hereto; provided, however, that this Agreement does not supersede the Recoupment Policy and Non-Solicitation Acknowledgment and Agreement and Intellectual Property Agreement between Executive and the
Company, both of which shall remain in full force and effect pursuant to its terms. 

  

	23.	Any dispute, claim or controversy of any kind or nature, including but not limited to the issue of arbitrability, arising out of or relating to this Transition Agreement, the Release of Claims, or the breach thereof, or
any disputes which may arise in the future, shall be settlement in a final and binding arbitration. 

  

	24.	This Transition Agreement shall be construed in accordance with and governed for all purposes by the laws of the Commonwealth of Virginia. 

 

	25.	Whenever possible, each provision of this Transition Agreement shall be interpreted in, such manner as to be effective and valid under applicable law, but if any provision of this Transition Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this Transition Agreement
shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein. 

  
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 BY SIGNING THIS TRANSITION AGREEMENT, I REPRESENT AND AGREE THAT: 

 

	 	1.	I HAVE READ IT CAREFULLY; 

  

	 	2.	I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF
1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED; 

  

	 	3.	I VOLUNTARILY CONSENT TO EVERYTHING IN IT; 

  

	 	4.	I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL READING AND CONSIDERATION I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION; 

 

	 	5.	I HAVE HAD AT LEAST 21 DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE SUBSTANTIALLY IN ITS FINAL FORM ON JANUARY 23, 2015 TO CONSIDER THIS TRANSITION AGREEMENT; 

 

	 	6.	I UNDERSTAND THAT I HAVE SEVEN DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED; 

 

	 	7.	I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND 

 

	 	8.	I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME. 

 

							
	DATE: January 23, 2015						 /s/ Mark W. Sopp

							Mark W. Sopp
				
	 /s/ Sarah K. Allen
						
	For Leidos Holdings, Inc.						

  
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 Exhibit A 

RELEASE OF CLAIMS 
  

	1.	This Release of Claims (“Release”) is entered into by and between Mark W. Sopp (“Executive”) and Leidos Holdings, Inc. (hereinafter the “Company”). Executive and the
Company have previously entered into a Transition Agreement dated as of January 23, 2015 (“Transition Agreement”). In consideration of the promises made herein and the consideration due Executive under the Employment Agreement,
this Release is entered into between the parties as of the Transition Date (as defined in the Transition Agreement). 

  

	2.	In consideration for the payments under Section 3 of the Transition Agreement, except as specifically provided herein, Executive knowingly and voluntarily (for himself, his family, and his heirs, executors,
administrators and assigns) releases and forever discharges the Company and its subsidiaries and affiliates and all present and former directors, managers, officers, agents, representatives, employees, successors and assigns of the Company and its
subsidiaries and affiliates and the Company’s direct or indirect owners (collectively, the “Released Parties”) from any and all claims, suits, controversies, actions, causes of action, cross-claims, counter-claims, demands,
debts, compensatory damages, liquidated damages, punitive or exemplary damages, other damages, claims for costs and attorneys’ fees, or liabilities of any nature whatsoever in law and in equity, both past and present (through the date this
Release becomes effective and enforceable) and whether known or unknown, suspected, or claimed against the Company or any of the Released Parties which Executive or any of his heirs, family members, executors, administrators or assigns, may have,
which arise out of or are connected with his employment with, or his separation or termination from, the Company (including, but not limited to, any allegation, claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as
amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990; the Family
and Medical Leave Act of 1993; the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; the Fair Labor Standards Act; or their state or local counterparts; or under any other federal, state or local
civil or human rights law, or under any other local, state, or federal law, regulation or ordinance; or under any public policy, contract or tort, or under common law; or arising under any policies, practices or procedures of the Company; or any
claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation; or any claim for costs, fees, or other expenses, including attorneys’ fees incurred in these matters) (all of the foregoing collectively referred to
herein as the “Claims”); except that he does not waive or release (a) his right to enforce the Transition Agreement, (b) claims for vested benefits under the Company’s 401(k) plan and other broad-based employee
benefit plans, or (c) any rights he may have to indemnification by the Company pursuant to the Company’s governing documents. 

  
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	3.	Executive agrees that this Release does not waive or release any rights or claims that he may have under the Age Discrimination in Employment Act of 1967 which arise after the date he executes this Release. Executive
acknowledges and agrees that his separation from employment with the Company shall not serve as the basis for any claim or action (including, without limitation, any claim under the Age Discrimination in Employment Act of 1967). 

 

	4.	In signing this Release, Executive acknowledges and intends that it shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied. He expressly consents that this Release shall be
given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected Claims, if any, as well as those relating to any other Claims hereinabove mentioned or implied. Executive
acknowledges and agrees that this waiver is an essential and material term of this Release and that without such waiver the Company would not have agreed to the terms hereof. Executive further agrees that in the event he should bring a Claim seeking
damages against the Company, or in the event he should seek to recover against the Company in any Claim brought by a governmental agency on his behalf, this Release shall serve as a complete defense to such Claims to the extent released hereunder.
Executive further agrees that he is not aware of any pending charge or complaint of the type described in Section 2 as of the execution of this Release. 

  

	5.	Executive agrees that neither this Release, nor the furnishing of the consideration for this Release, shall be deemed or construed at any time to be an admission by the Company, any Released Party or himself of any
improper or unlawful conduct. 

  

	6.	For the avoidance of doubt, the Company’s and Executive’s covenants in the Transition Agreement shall continue in effect in accordance with their terms. 

 

	7.	It is further understood and agreed that this Release shall be binding upon and will inure to the benefit of Executive’s spouse, heirs, successors, assigns, agents, employees, representatives, executors and
administrators and shall be binding upon and will inure to the benefit of the individual and/or collective successors and assigns of the Released Parties and their successors, assigns, agents and/or representatives. 

 

	8.	This Release is not intended to interfere with Executive’s exercise of any protected, nonwaivable right, including Executive’s right to file a charge with, participate in an investigation by, or provide
truthful information to the Equal Employment Opportunity Commission or other government agency. By entering into this Release, however, Executive acknowledges that the consideration set forth herein is in full satisfaction and is inclusive of
any and all amounts, including but not limited to attorneys’ fees, to which Executive might be entitled or which may be claimed by Executive or on Executive’s behalf against the Released Parties and Executive is forever discharging
the Released Parties from any liability to Employee for any acts or omissions occurring on or before the date of Employee’s signing of this Release. 

  
 9 

	9.	Executive waives all rights under Section 1542 of the California Civil Code, which section has been fully explained to him by his legal counsel and which he fully understands, and any other similar provision or the
law of any other state or jurisdiction. Section 1542 provides as follows:  

 A general release does not extend
to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.  

 

	10.	Executive acknowledges that he has provided the Company with written notice of any and all concerns regarding suspected ethical and compliance issues or violations on the part of the Company or any related person or
entity, including but not limited to any issues regarding the Company’s Standards of Business Ethics and Code of Conduct and any Company policy or standard operating procedure. 

 

	11.	Executive agrees that he will not seek future employment with, nor need to be considered for any future openings with the Company, any division thereof, or any subsidiary or related corporation or entity.

  

	12.	Whenever possible, each provision of this Release shall be interpreted in, such manner as to be effective and valid under applicable law, but if any provision of this Release is held to be invalid, illegal or
unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this Release shall be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein. 

  

	13.	This Release shall be construed in accordance with and governed for all purposes by the laws of the Commonwealth of Virginia. 

[Signature Page Follows] 

  
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 BY SIGNING THIS RELEASE, I REPRESENT AND AGREE THAT: 

 

	 	1.	I HAVE READ IT CAREFULLY; 

  

	 	2.	I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF
1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED; 

  

	 	3.	I VOLUNTARILY CONSENT TO EVERYTHING IN IT; 

  

	 	4.	I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL READING AND CONSIDERATION I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION; 

 

	 	5.	I HAVE HAD AT LEAST 21 DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE SUBSTANTIALLY IN ITS FINAL FORM ON JANUARY 23, 2015 TO CONSIDER THIS RELEASE; 

 

	 	6.	I UNDERSTAND THAT I HAVE SEVEN DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED; 

 

	 	7.	I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND 

 

	 	8.	I AGREE THAT THE PROVISIONS OF THIS RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME. 

 

							
	 DATE:
		  
				  

							Mark W. Sopp

  
 11

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