Document:

LETTER AGREEMENT

 Exhibit 10.1 
 

 

			
		  	
		  	 1100 Winter Street, Suite 4600
 Waltham, MA 02451
 Dial: 781-663-5001
 Fax: 781-663-5100

 June 12, 2006 
 Mr. David J. Riley 
 c/o CMGI, Inc. 
 1100 Winter Street, Suite 4600 
 Waltham, MA 02451 
 Dear David: 
 Congratulations on your taking of your new role as Interim Chief Financial Officer and Treasurer of CMGI, Inc. (“CMGI” or
the “Company”). In this capacity you will continue to report to Joseph C. Lawler, President and Chief Executive Officer of CMGI. 
 This letter will serve to memorialize certain changes to your compensation arrangements with the Company. 
 Effective as of
June 9, 2006, your salary will be $8,269.23 bi-weekly, which is equivalent to an annualized base salary of $215,000. You also will be eligible to receive a bonus for fiscal year 2007 based on a target annualized bonus equal to 50% of your base
salary earned during fiscal 2007. The actual bonus payment you receive will be based on the terms and conditions of the CMGI FY2007 Executive Management Incentive Plan, which will be established in the coming months. 
 In addition, you will be granted an option to purchase 200,000 shares of CMGI common stock under CMGI’s 2004 Stock Incentive Plan or 2000 Stock Incentive Plan. This
option will be priced at the closing price of CMGI’s common stock (during normal trading hours) on the date hereof. Provided you remain employed by the Company on each vesting date, this option will vest 25% on the first anniversary of the date
of grant, and monthly thereafter, so that the option becomes fully vested and exercisable on the fourth anniversary of the date of grant. The option shall have a seven (7) year term. 
 The option shall be subject to all terms, limitations, restrictions and termination provisions set for the in the plan and in the separate option agreements (which shall
be based upon the Company’s standard form of option agreement) that shall be executed to evidence the grant of such option. 
  

			
	 Sincerely,
	  	
		
	 /s/ James J. Herb
	  	
	 James J. Herb
	  	
	 Senior Vice President, Human Resources
	  	
		
	 Agreed and accepted:
	  	
		
	 /s/ David J. Riley
	  	 June 15, 2006

	 David J. Riley
	  	DateSEVERANCE AGREEMENT

 Exhibit 10.2 
 SEVERANCE AGREEMENT AND GENERAL RELEASE 
 May 22, 2006 
 W. Kendale Southerland 
 c/o ModusLink Corporation 
 400 Galleria Parkway 
 Suite 1500 
 Atlanta, GA 30339 
 Dear Ken: 
 In connection with the termination of your employment with ModusLink Corporation (the “Company”) on May 31, 2006 (the “Termination Date”), you are eligible to receive the severance benefits
described in the “Description of Severance Benefits” attached to this letter as Attachment A if you sign and return this letter to Peter L. Gray, Executive Vice President and General Counsel of the Company, in the enclosed envelope by
June 14, 2006 (the “Deadline Date”). By signing and returning this letter agreement and not revoking your acceptance, you will be entering into a binding agreement with the Company and will be agreeing to the terms and conditions set
forth in the numbered paragraphs below, including the release of claims set forth in paragraph 2. Therefore, you are advised to consult with your attorney before signing this letter agreement and you may take up to twenty-one (21) days to do
so. If you sign this letter agreement, you may change your mind and revoke your agreement during the seven (7) day period after you have signed it by notifying Peter L. Gray of your revocation. If you do not so revoke, this letter will become a
binding agreement between you and the Company upon the expiration of the seven (7) day revocation period. 
 If you choose not to sign
and return this letter agreement by the Deadline Date, you shall not receive any severance benefits from the Company. You will, however, receive payment on the Termination Date for any wages and unused vacation time accrued through the
Termination Date. Also, regardless of signing this letter agreement, you may elect to continue receiving group medical insurance pursuant to the federal “COBRA” law, 29 U.S.C. § 1161 et seq. All premium costs shall be
paid by you on a monthly basis for as long as, and to the extent that, you remain eligible for COBRA continuation. You should consult the COBRA materials to be provided by the Company for details regarding these benefits. All other benefits,
including life insurance and long-term disability, will cease upon the Termination Date. 
 The following numbered paragraphs set forth the
terms and conditions which will apply if you timely sign and return this letter agreement and you do not revoke your acceptance during the seven (7) day revocation period: 
  

	1.	Description of Severance Benefits - The severance benefits paid to you, if you timely sign and return this letter agreement and do not revoke it within the seven
(7) day revocation period, are described in the “Description of Severance Benefits” attached as 

 Attachment A (the “Severance Benefits”). These Severance Benefits include all benefits due and
owing to you under the Letter Agreement between you and the Company, dated March 22, 2005. In the event that, subsequent to the Termination Date, you are rehired by the Company or hired by any of its parents, subsidiaries, and/or affiliates
(hereinafter, “Subsequent Company-related Employment”), then the Severance Benefits to which you are entitled shall be equal to the lesser of: (i) the Severance Pay set forth in Attachment A, or (ii) your weekly salary as of your
Termination Date, multiplied by the number of full weeks after the Termination Date but before the date of commencement of your Subsequent Company-related Employment. You agree that, as a condition to commencing Subsequent Company-related
Employment, you will reimburse the Company for any amounts that were paid to you as Severance Pay in excess of the amount to which you are entitled pursuant to the prior sentence. 
  

	2.	Release and Representation - In consideration of the payment of the Severance Benefits, which you acknowledge you would not otherwise be entitled to receive, you
hereby fully, forever, irrevocably and unconditionally release, remise and discharge the Company, its officers, directors, stockholders, corporate affiliates (that is, entities controlling, controlled by or under common control with the Company),
subsidiaries, parent companies, agents, insurers and employees (each in their individual and corporate capacities) (hereinafter, the “Released Parties”) from any and all claims, charges, complaints, demands, actions, causes of action,
suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses (including attorneys’ fees and costs), of every kind
and nature, whether known or unknown, which you ever had or now have through the date of this agreement, against the Released Parties, including but not limited to, all claims arising out of your employment with and/or separation from the Company,
all employment discrimination claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. §2000e et seq., the Age Discrimination in Employment Act, 29 U.S.C., §621 et seq., the Americans With Disabilities
Act of 1990, 42 U.S.C., §12101 et seq., and the Massachusetts Fair Employment Practices Act, M.G.L. c.151B, §1 et seq., all as amended, all claims arising out of the Family and Medical Leave Act, 29 U.S.C. §2601
et seq., the Fair Credit Reporting Act, 15 U.S.C. §1681 et seq., the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. §1001 et seq., the Worker Adjustment and Retraining
Notification Act, 29 U.S.C. § 2101 et seq., the Georgia Fair Employment Practices, Act, Ga. Code Ann. § 45-19-20 et seq., the Massachusetts Civil Rights Act, M.G.L. c.12 §§11H and 11I, the Massachusetts Equal Rights Act, M.G.L.
c.93 §102 and M.G.L. c.214, §1C, the Massachusetts Labor and Industries Act, M.G.L. c. 149, §1 et seq., the Massachusetts Privacy Act, M.G.L. c.214, §1B, and the Massachusetts Maternity Leave Act, M.G.L. c. 149,
§ 105(d), all as amended, or any other state or local fair employment practices, anti-discrimination, human rights, equal rights, civil rights, fair wages, payment of wages, leave, whistleblower or privacy laws, all common law claims including,
but not limited to, actions in tort, defamation and breach of contract, all claims to any non-vested ownership interest in the Company or its affiliates (including without limitation, CMGI, Inc.), contractual or otherwise, including, but not limited
to, claims to stock or stock options, and any claim or damage arising out of, or otherwise 

 occurring during, your employment with or separation from the Company (including a claim for retaliation)
under any common law theory or any federal, state or local statute or ordinance not expressly referenced above or any law of the nation of Singapore (where your resided for a portion of your employment with the Company), provided, however, that
nothing in this letter agreement prevents you from filing, cooperating with, or participating in any proceeding before the Equal Employment Opportunity Commission or a state fair employment practices agency (except that you will have waived any and
all rights to any monetary or other recovery related to any such charge or other lawsuit brought by any administrative agency or other party in any way arising out of or related to the claims you have released). The foregoing release shall not
(i) release any claims you may have under or to enforce this Agreement, or (ii) affect your rights relative to any insurer with respect to any matter not related to the Company or your employment with the Company. 
 You also represent and agree that you: (i) have been paid and/or have received all leave (paid or unpaid), compensation, wages, overtime, if
applicable, bonuses, commissions, severance pay, and/or benefits to which you may be entitled and that no other amounts and/or benefits are due to you except as provided in this agreement; (ii) have no known workplace injuries or occupational
diseases and you either have been provided or you have not been denied any leave requested under the Family and Medical Leave Act; (iii) are not eligible to receive payments or benefits under any other severance pay policy, plan, practice or
arrangement of any Released Party; and (iv) have not complained of and you are not aware of any fraudulent activity or any act(s) which would form the basis of a claim of fraudulent or illegal activity by the Company or any other Released
Party. 
  

	3.	Non-Disclosure, Non-Competition and Non-Solicitation - You agree to keep confidential all non-public information concerning the Company and its affiliates which
you acquired during the course of your employment with the Company and its affiliates. In addition, you agree that for twelve (12) months after the Termination Date you will not, directly or indirectly (i) engage in any business or
enterprise (whether as an owner, member, manager, partner, officer, employee, director, investor, lender, consultant, independent contractor or otherwise, except as the holder of not more than 1% percent of the combined voting power of the
outstanding stock of a publicly held company) that is competitive with the Company’s business, including, but not limited to, any business or enterprise that develops, designs, produces, markets, sells or renders any product or service
competitive with any product or service developed, designed, produced, marketed, sold or rendered by the Company or any of its subsidiaries while you were employed by the Company; or (ii) either alone or in association with others, solicit,
divert, or take away or attempt to divert or to take away, the business or patronage of any of the clients, customers or accounts, or prospective clients, customers or accounts, of the Company which were contacted, solicited or served by you while
you were employed by the Company; or (iii) either alone or in association with others (x) solicit, or permit any organizations directly or indirectly controlled by you to solicit, any employee of the Company to leave the employ of the
Company, or (y) solicit for employment, hire or 

 engage as an independent contractor, or permit any organization directly or indirectly controlled by you
to solicit for employment, hire or engage as an independent contractor, any person who is/was employed by the Company at any time during the term of my employment relationship with the Company; provided, that this clause (y) shall not apply to
the solicitation, hiring or engagement of any individual whose employment with the Company has been terminated for a period of six months or longer. 
  

	4.	Return of Company Property - You agree to return within seven (7) days of the execution of this letter agreement all Company property including, but not limited
to, keys, files, records (and copies thereof), computer hardware and software, cellular phones, pagers, or other Company-owned equipment or property, which is in your possession or control, provided, however, that you may retain your Toshiba laptop
computer (provided that all Company confidential information is removed from such device). You further agree that you have left intact and will leave intact all electronic Company documents, including but not limited to those which you developed or
help develop during your employment. You further confirm that you have cancelled all accounts for your benefit, if any, in the Company’s or its affiliates’ names, including, but not limited to, credit cards, telephone charge cards,
cellular phone and/or pager accounts and computer accounts. You hereby certify that you have not retained any confidential Company information and have not downloaded or otherwise preserved any confidential Company information.

  

	5.	Cooperation - You agree to cooperate fully with the Company and its affiliates in the defense or prosecution of any claims or actions now in existence or which may be
brought in the future (whether before or after the Termination Date) against or on behalf of the Company or its affiliates relating to events or occurrences that transpired during your employment with the Company and its affiliates. Your full
cooperation in connection with such claims or actions shall include, but not be limited to, meeting with counsel to prepare for trial, cooperating in discovery and providing affidavits and testimony as may be required or deemed necessary by the
Company. If it is necessary for you to travel in fulfilling your obligation to cooperate, the Company shall authorize reimbursement for all travel expenses, including lodging, which you incur, subject to your provision of all documentation requested
by the Company. 

  

	6.	Non-Disparagement - You understand and agree that as a condition for payment to you of the consideration herein described, you shall not make any false, disparaging or
derogatory statements to any media outlet, industry group, financial institution or current or former employee, consultant, client or customer of the Company regarding any of the Released Parties or about the Company’s business affairs and
financial condition. 

  

	7.	Amendment - This letter agreement shall be binding upon the parties and may not be modified in any manner, except by an instrument in writing of concurrent or
subsequent date signed by duly authorized representatives of the parties hereto. This letter agreement is binding upon and shall inure to the benefit of the parties and their respective agents, assigns, heirs, executors, successors and
administrators. 

	8.	Waiver of Rights - No delay or omission by the Company in exercising any right under this letter agreement shall operate as a waiver of that or any other right. A
waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion. 

  

	9.	Validity - Should any provision of this letter agreement be declared or be determined by any court of competent jurisdiction to be illegal or invalid, the validity of
the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provision shall be deemed not to be a part of this letter agreement. 

  

	10.	Confidentiality - You understand and agree that as a condition for payment to you of the consideration herein described, the terms and contents of this letter
agreement, and the contents of the negotiations and discussions resulting in this letter agreement, shall be maintained as confidential by you and your agents and representatives and shall not be disclosed except to the extent required by federal or
state law or as otherwise agreed to in writing by the Company. 

  

	11.	Nature of Agreement - You understand and agree that this letter agreement is a severance agreement and does not constitute an admission of liability or wrongdoing on
the part of the Company, or any other person. 

  

	12.	Acknowledgments - You acknowledge and understand that you shall not be entitled to any payments or benefits from the Company other than those expressly set forth in
this letter agreement. You further acknowledge that you have been given at least twenty-one (21) days to consider this letter agreement, including Attachment A, and that the Company advised you to consult with an attorney of your own choosing
prior to signing this letter agreement. You understand that you may revoke this letter agreement for a period of seven (7) days after you sign this letter agreement by notifying Peter L. Gray of your revocation, and the letter agreement shall
not be effective or enforceable until the expiration of this seven (7) day revocation period. You understand and agree that by entering into this letter agreement, you are waiving any and all rights or claims you might have under the Age
Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act, and that you have received consideration beyond that to which you were previously entitled. 

	13.	Voluntary Assent - You affirm that no other promises or agreements of any kind have been made to or with you by any person or entity whatsoever to cause you to
sign this letter agreement, and that you fully understand the meaning and intent of this letter agreement. You state and represent that you have had an opportunity to fully discuss and review the terms of this letter agreement with an attorney. You
further state and represent that you have carefully read this letter agreement, including Attachment A, understand the contents herein, freely and voluntarily assent to all of the terms and conditions hereof, and sign your name of your own free act.

  

	14.	Applicable Law - This agreement shall be interpreted and construed by the laws of the Commonwealth of Massachusetts, without regard to conflict of laws
provisions. You hereby irrevocably submit to and acknowledge and recognize the jurisdiction of the courts of the Commonwealth of Massachusetts, or if appropriate, a federal court located in Massachusetts (which courts, for purposes of this letter
agreement, are the only courts of competent jurisdiction), over any suit, action or other proceeding arising out of, under or in connection with this letter agreement or the subject matter hereof. 

  

	15.	Entire Agreement - This letter agreement, including Attachment A, contains and constitutes the entire understanding and agreement between the parties hereto
with respect to your severance benefits and the settlement of claims against the Company and its affiliates and cancels all previous oral and written negotiations, agreements, commitments, writings in connection therewith. Nothing in this paragraph,
however, shall modify, cancel or supercede your obligations set forth in paragraph 4. 

 If you have any questions about the
matters covered in this letter agreement, please call Peter L. Gray at 781-663-5024. 
  

			
	Very truly yours,
	
	ModusLink Corporation
		
	By:	 	 /s/ James J. Herb

		 	James J. Herb
		 	Senior Vice President, Human Resources

 I hereby agree to the terms and conditions set forth above, and in the Description of
Severance Benefits attached hereto as Attachment A. I have been given at least twenty-one (21) days to consider this letter agreement and I have chosen to execute this letter agreement on the date below. I intend that this letter agreement,
including Attachment A, when signed by me, is a binding agreement between me and the Company if I do not revoke my acceptance within the seven (7) day revocation period. 
  

					
	 /s/ W. Kendale Southerland
	 	Date	 	 6/14/06

	W. Kendale Southerland	 		 	

 To be returned in the enclosed envelope by June 14, 2006 

 ATTACHMENT A 
 DESCRIPTION OF SEVERANCE BENEFITS 
 The Company will pay you your base salary of $27,083.33 per month, less
all applicable state and federal taxes as severance pay (the “Severance Pay”) for the 12 months following the Termination Date. This Severance Pay will be paid in accordance with the Company’s regular payroll practices beginning the
first payroll date following the date of execution of this letter agreement and expiration of the seven (7) day revocation period. 
 In light of the
fact that you were on an expatriate assignment in Singapore until 2005, the Company agrees to provide you with tax equalization for taxes due in 2006 or 2007 relating to periods during which you were working in Singapore. Tax equalization is
designed to ensure that no additional tax liability or benefit as a result of having an assignment outside the U.S. is effected. Specifically, the Company will provide you assistance to ensure compliance with U.S. expatriate tax laws for the
indicated periods, as well as the tax laws of the host country. The Company, through its tax consultant, will provide reasonable tax preparation assistance to ensure compliance with U.S. tax laws as well as the laws of Singapore. You are responsible
to pay any tax liability incurred. Interest or penalties imposed by tax authorities as a result of improper reporting or delays in providing necessary documents by you to our tax consultant will be your responsibility. 
 If you make a timely election of COBRA continuation coverage, the Company will also pay your premium, for medical insurance only, for the first one month of your COBRA
continuation period. Thereafter, all premium costs shall be paid by you on a monthly basis for as long as, and to the extent that, you remain eligible for COBRA continuation. You should consult the COBRA materials to be provided by the Company for
details regarding these benefits. 
 From and after the date of this letter, you shall be entitled to six-months of outplacement service, in an amount not to
exceed $5,000 in the aggregate. James Herb will provide to you the name of an outplacement firm with whom the Company has a relationship and preferential pricing. You may choose to use this outplacement firm, or another of your choice. You may
choose to commence the six-months of outplacement service at any time during the six month period following the Termination Date, but prior to accepting employment with any other party.

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