Document:

Exhibit 10.23

 

 

SEPARATION AGREEMENT & RELEASE OF ALL
CLAIMS

 

                                This Separation Agreement
(hereinafter referred to as “Agreement”) is
made and entered into by and between Hossein Arjomand (hereinafter referred to
as “Employee”), and Align Technology, Inc.
(hereinafter referred to as “Company”).  In consideration of the mutual covenants and
promises herein contained and other good and valuable consideration, receipt of
which is hereby acknowledged, it is hereby agreed by and between the parties as
follows:

 

                WHEREAS,
Employee has been for a time employed by the Company;

 

                WHEREAS,
Employee and the Company have previously entered into an employment agreement
dated as of November 5, 2005 (the “Employment Agreement”);

 

                WHEREAS,
the parties have agreed that the Employment Agreement be terminated immediately
upon the execution of this Agreement and that Employee ceases to be an
executive officer of the Company;

 

WHEREAS, despite the termination of the Employment
Agreement, the parties desire for there to be a transition period (the “Transition Period”) from the date hereof until Employee’s
termination date of February 28, 2008 (the “Separation
Date”);

 

                WHEREAS,
the parties wish to permanently resolve all disputes that exist or may exist
between them in the future arising out of Employee’s employment with the
Company and the termination thereof;

 

                NOW,
THEREFORE, for and in consideration of the promises and undertakings described
below, the parties agree as follows:

 

AGREEMENT

 

1.             The Employment Agreement shall be terminated effective February 6,
2008, and Employee shall immediately cease to be an executive officer of the
Company, but shall continue during the Transition Period until the Separation
Date as an employee of the Company.

 

2.             During the Transition Period, the Company shall continue
to pay Employee his current regular salary according to the Company’s standard
payroll schedule and practices, less applicable deductions and withholdings.
Employee has no right to employment with the Company after the Separation Date,
and the Company has no obligation to employ him after the Separation Date.  During the Transition Period, Employee shall
not report to work, but shall make himself available to the Company, upon its
written request, to provide services, support, advice and cooperation
commensurate with his last position. 
Employee understands and agrees that he is not authorized to provide any
services or support for or on behalf of the Company without prior written
authorization from the Company.  Employee
shall not represent himself or otherwise hold himself out to any third party or
other person or entity as authorized to provide services, enter agreements, or
otherwise commit the Company to any action or course of action during the
Transition period without prior written authorization.  Employee acknowledges and agrees that the
continued payment of his salary during the Transition Period, as well as the
other promises 

 

 

 

and undertakings
described herein, are adequate consideration for his promises and undertakings
and release of claims set forth herein.

 

3.             Employee’s employment with the Company shall terminate
on the Separation Date, and his obligation to perform any requested services on
behalf of the Company shall cease.  On
the Separation Date, the Company shall pay Employee all salary and all accrued
but unusued vacation earned by him through the Separation Date.

 

4.             Employee agrees that prior to the execution of this
Agreement he was not entitled to receive any monetary payments or benefits from
the Company beyond the Separation Date, and that the only payments and benefits
that Employee is entitled to receive from the Company in the future are those
specified in this Agreement and/or the “Subsequent Release Agreement,”
described below, if the Agreement and Subsequent Release Agreement are not
revoked.

 

5.             Provided that Employee executes the general release
agreement attached hereto as Exhibit A (the “Subsequent
Release Agreement”), on the Separation Date,

 

(a) Employee shall be entitled to the payment of
a  gross amount equal to one year of
Employee’s last base salary, which was two hundred fifty six thousand five
hundred seventy three dollars and zero cents ($256,573.00) per year. Said
payment shall be made in a lump sum and shall be paid to Employee within ten
days of either the Separation Date or the running of the revocation period set
forth in the Subsequent Release Agreement, whichever is later. Said payments
are subject to necessary and authorized deductions, and will be mailed to
Employee’s current home address.  During
the period of said payments and/or as a result of said payments, Employee shall
not be employed by the Company, shall not be authorized to act on behalf of the
Company, and shall not represent himself to any third party as a representative,
agent or employee of the Company.

 

(b)           Beginning after the running of the
revocation period set forth in the Subsequent Release Agreement, in addition,
the Company shall pay Employee’s COBRA premiums for twelve (12) months
beginning with the premium for March 1, 2008 and ending with the premium
for February 1, 2009, or until such time as Employee obtains comparable
benefits, whichever is sooner.  Employee
expressly agrees that he shall provide notice to the Company at such time as he
receives comparable benefits, so that the COBRA coverage and payments can be
discontinued.  The Company will not
withhold taxes or other amounts from said premium payments and Employee shall
be responsible for any tax liability associated with such payments.  Employee is solely responsible for timely
electing COBRA coverage and his failure to do so will result in forfeiture of
the COBRA premiums identified in this Paragraph 1(b).

 

(c)           The Company will also pay $4,500
worth of outplacement services with Lee Hecht Harrison. The Company will not
withhold taxes or other amounts from any payments for outplacement services and
Employee shall be responsible for any tax liability associated with such
payments.

 

(d)           The consideration set forth in
Paragraphs 5(a), 5(b) and 5(c) are not payable to Employee if
Employee does not execute the Subsequent Release Agreement or elects to revoke
this Agreement as set forth in Paragraph 13, below, or otherwise, or elects to
revoke the Subsequent Release Agreement as set forth therein.

 

 

 

2

(e)           Employee understands and agrees that
the Subsequent Release Agreement is attached hereto and therefore the twenty
one (21) day review period shall begin on February 5, 2008.  Employee shall have at least twenty one (21)
days to consider the Subsequent Release Agreement, but he may not execute the
Subsequent Release Agreement prior to the Separation Date.   Notwithstanding the fact that the twenty one
(21) day review period expires prior to the Separation Date, the Company agrees
that it will not rescind the Subsequent Release Agreement until March 1,
2008.

 

6.             Employee expressly agrees that:

 

(a)           The foregoing payments set forth in
Paragraphs 2, 5(a), 5(b) and 5(c) shall constitute an accord and
satisfaction and a full and complete settlement of Employee’s claims, shall
constitute the entire amount of monetary consideration provided to Employee
under this Agreement except as provided herein, and that Employee will not seek
any further compensation for any other claimed damage, costs or attorneys’ fees
in connection with the matters encompassed in this Agreement.

 

(b)           The Company has made no
representations to Employee regarding the tax consequences of any amounts
received by Employee pursuant to this Agreement.  Employee agrees to pay any and all federal,
state, county or local taxes, which are required by law to be paid with respect
to this Agreement.  Employee agrees to
indemnify and hold the Company harmless from any claims, demands, deficiencies,
levies, assessments, executions, judgments or recoveries by any governmental
entity against the Company for any amounts claimed due on account of this
Agreement or pursuant to claims made under any federal, state, county or local
tax laws, and any costs, expenses or damages sustained by the Company by reason
of any such claims.

 

7.             Employee promises that within seven days of the
execution of this Agreement, he will return to the Company all Company
property, as well as all Company proprietary information, including, but not
limited to, any documents or other data in Employee’s possession at the time of
termination.

 

8.             Employee represents that he has not filed any complaint,
claims or actions against the Company, its affiliated companies, or their
current or former officers, agents, directors, supervisors, employees,
attorneys or representatives with any state, federal or local agency or court
and that Employee will not do so at any time hereafter, except that Employee
understands that nothing in this Agreement shall be construed to prohibit him
from filing a charge with, or participating in any investigation or proceeding
conducted by, the Equal Employment Opportunity Commission, National Labor
Relations Board, and/or any federal, state or local agency.  Notwithstanding the foregoing, Employee
hereby waives any and all rights to recover monetary damages in any charge,
complaint or lawsuit filed by him or by anyone else on his behalf.

 

9.             Employee shall refrain from communicating any
disparaging, derogatory, libelous or scandalous statements to any third party
regarding the Company, its products, services, employees, agents, or
representatives.  The Company agrees that
its Executive Officers have not and will not make any derogatory, disparaging
or negative statements about Employee.

 

 

3

10.           Employee hereby agrees that all
rights he may have under section 1542 of the California Civil Code are hereby
waived by Employee.  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 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.”

 

11.           Notwithstanding the provisions of
section 1542 of the Civil Code of the State of California, Employee without
limitation hereby irrevocably and unconditionally releases and forever
discharges the Company, and its affiliated companies, their current and former
officers, agents, directors, supervisors, employees, representatives,
successors and assigns, and all persons acting by, through, under, or in
concert with any of them from any and all charges, complaints, claims, causes
of action, debts, sums of money, controversies, agreements, promises, damages
and liabilities of any kind or nature whatsoever, both at law and equity, known
or unknown, suspected or unsuspected, arising from conduct occurring on or
before the date of this Agreement, including without limitation any claims
incidental to or arising out of Employee’s employment with the Company or the
termination thereof.  It is expressly
understood by Employee that among the various rights and claims being waived in
this release are those arising under the Age Discrimination in Employment Act
of 1967 (29 U.S.C. § 621. et seq.), including the Older Workers’ Benefit
Protection Act (29 U.S.C. § 626(f)). 
This provision is intended by the parties to be all encompassing and to
act as a full and total release of any claim, whether specifically enumerated
herein or not, that Employee might have or has had, that exists or ever has
existed on or to the date of this Agreement, except for any claims which may
not legally be released, including but not limited to claims for unemployment insurance,
workers’ compensation or indemnification under California Labor Code section
2802.  Employee acknowledges that he has
thoroughly investigated whether he has any rights to indemnification and agrees
that he is unaware of any such rights. 
All released claims, including related attorneys’ fees and costs, are
forever barred by this Agreement and without regard to whether those claims are
based on any alleged breach of a duty arising in contract or tort; any alleged
unlawful act, any other claim or cause of action; and regardless of the forum
in which it might be brought.

 

12.           This Agreement and compliance with
its terms shall not be construed as an admission by the Company of any
liability whatsoever, or as an admission by the Company of any violation of the
rights of Employee.  The Company
specifically disclaims any liability to Employee for any alleged violation of
any order, law, statute, duty or contract on the part of the Company, or its
employees or agents.

 

13.           Employee understands and agrees that
Employee:

 

(a)           Has had the opportunity of a full
twenty-one (21) days within which to consider this Agreement before signing it,
and that if Employee has not taken that full time period that Employee has
failed to do so knowingly and voluntarily.

 

(b)           Has carefully read and fully
understands all of the provisions of this Agreement.

 

 

4

(c)           Is, through this Agreement, releasing
the Company, its affiliated companies, and their current and former officers,
agents, directors, supervisors, employees, attorneys, representatives,
successors and assigns and all persons acting by, through, under, or in concert
with any of them, from any and all claims Employee may have against the Company
or such individuals.

 

(d)           Knowingly and voluntarily agrees to
all of the terms set forth in this Agreement and intends to be legally bound by
the same.

 

(e)           Was advised and hereby is advised in
writing to consider the terms of this Agreement and consult with an attorney of
Employee’s choice prior to signing this Agreement.

 

(f)            Has a full seven (7) days
following the execution of this Agreement to revoke this Agreement, and has
been and hereby is advised in writing that this Agreement, all of its terms,
and all of the obligations of the Company contained herein, shall not become
effective or enforceable until the revocation period has expired.

 

(g)           Understands that rights or claims
under the Age Discrimination in Employment Act of 1967 (29 U.S.C. § 621, et
seq.) that may arise after the date this Agreement is signed are not waived.

 

14.           Employee agrees not to interfere with
the Company’s relationship with current employees, suppliers, customers or
investors.  In furtherance of this
obligation, for a period of twelve (12) months following the date of Employee’s
execution of this Agreement, Employee shall not directly or indirectly, for
Employee or any other person, business or entity, solicit the services of
anyone employed by the Company during Employee’s employment.

 

15.           The parties hereto represent and
acknowledge that in executing this Agreement they do not rely and have not
relied upon any representation or statement made by any of the parties or by
any of the parties’ agents, attorneys or representatives with regard to the
subject matter or effect of this Agreement or otherwise, other than those
specifically stated in this written Agreement.

 

16.           This Agreement shall be binding upon
the parties hereto and upon their heirs, administrators, representatives,
executors, successors, and assigns, and shall inure to the benefit of said
parties and each of them and to their heirs, administrators, representatives,
executors, successors, and assigns. 
Employee expressly warrants that Employee has not transferred to any
person or entity any rights or causes of action, or claims released by this
Agreement.

 

17.           Should any provision of this
Agreement be declared or be determined by any court of competent jurisdiction
to be illegal, invalid, or unenforceable, the legality, validity and
enforceability of the remaining parts, terms or provisions shall not be
effected thereby and said illegal, unenforceable, or invalid term, part or
provision shall be deemed not to be a part of this Agreement.

 

18.           With the exception of the Proprietary
Information and Invention Assignment Agreement previously entered into between
Employee and the Company, which shall remain in full force and effect and are
unaffected by this Agreement, this Agreement sets forth the entire agreement 

 

5

between the parties
hereto and fully supersedes any and all prior agreements and understandings,
written or oral, between the parties hereto pertaining to the subject matter
hereof.  This Agreement may only be
amended or modified by a writing signed by the parties hereto.  Any waiver of any provision of this Agreement
shall not constitute a waiver of any other provision of this Agreement unless
expressly so indicated otherwise.

 

19.           This Agreement shall be interpreted
in accordance with the plain meaning of its terms and not strictly for or
against any of the parties hereto.

 

20.           This Agreement is made and entered
into in the State of California, and shall in all respects be interpreted,
enforced and governed by and under the laws of the State of California.

 

21.           Any dispute arising between Employee
and the Company pertaining to the formation, validity, interpretation, effect
or alleged breach of this Agreement or any matters released herein, will be
submitted to binding arbitration at a mutually agreeable location, or in the
absence of such, in Santa Clara County, California.  Such arbitration supplants, replaces and
waives any right that Employee or the Company may have to pursue any dispute,
claim or controversy relating to the formation, validity, interpretation,
effect or alleged breach of this Agreement in any court, agency, tribunal or
other forum, including a civil action before any jury.  The parties agree to submit any such dispute
to binding arbitration pursuant to the JAMS Employment Arbitration Rules and
Procedures as are in effect on the date of the submission.  Either Employee or the Company may initiate
arbitration hereunder by written notice to the other which shall include a
concise statement of the issue(s) to be arbitrated, along with a statement
setting forth the relief requested. Any demand for arbitration shall be filed
within one year following the act, occurrence, or non-occurrence giving rise to
the claim(s) upon which arbitration is sought or required.  Any failure to demand arbitration within this
time frame and according to these rules shall constitute a waiver of all
rights to raise any claims in any forum arising out of any dispute that was
subject to arbitration.  The decision of
the arbitrator pursuant to this Agreement shall be in writing, final, valid,
irrevocable and conclusively binding upon the parties to the dispute.  The award may be entered as a judgment in any
court of competent jurisdiction and the parties agree to stipulate to entry of
judgment.  Should either Employee or the
Company disregard this arbitration requirement and pursue an action subject
hereto in any court or other as provided herein, upon application of the
aggrieved party to a court of competent jurisdiction, the court shall order the
matter to arbitration and shall award the prevailing party in any such hearing
its reasonable costs and attorney’s fees incurred in connection therewith.

 

6

22.           This Agreement may be executed in
counterparts and each counterpart, when executed, shall have the efficacy of a
second original.  Photographic or
facsimile copies of any such signed counterparts may be used in lieu of the
original for any said purpose.

 

	
   

  	
  For Employee:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:
  February 6, 2008

  	
  /s/ Hossein
  Arjomand

  
	
   

  	
  Hossein Arjomand

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  For Align
  Technology, Inc.:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:
  February 6, 2008

  	
  By: /s/ Roger E.
  George

  
	
   

  	
  Roger E. George

  
	
   

  	
  Vice President,
  Legal and Corporate Affairs, General Counsel and Corporate Secretary

  

 

 

7

 

 

EXHIBIT A

 

EXHIBIT A

 

SUBSEQUENT RELEASE AGREEMENT

 

                                This Subsequent Release Agreement
(hereinafter referred to as “Subsequent Release
Agreement”) is made and entered into by and between Hossein Arjomand
(hereinafter referred to as “Employee”), and
Align Technology, Inc. (hereinafter referred to as “Company”).  In consideration of the mutual covenants and
promises herein contained and other good and valuable consideration, receipt of
which is hereby acknowledged, it is hereby agreed by and between the parties as
follows:

 

                WHEREAS,
Employee has been for a time employed by the Company.

 

                WHEREAS,
Employee and the Company have previously entered into an employment agreement
dated as of November 5, 2005 (the “Employment Agreement”);

 

                WHEREAS,
Employee successfully completed the Transition Period identified in the
Separation Agreement & Release of All Claims (the “Original Separation Agreement”) and his employment with the
Company shall end effective February 28, 2008 (the “Separation
Date”);

 

                WHEREAS,
the parties wish to permanently resolve all disputes that exist or may exist
between them in the future arising out of Employee’s employment with the
Company and the termination thereof;

 

                NOW,
THEREFORE, for and in consideration of the promises and undertakings described
below, the parties agree as follows:

 

AGREEMENT

 

1.             Employee’s employment with the Company shall end
effective the Separation Date and his obligation to perform any services on
behalf of the Company shall cease.  On
the Separation Date, Employee shall be entitled to no other salary, wages,
benefits or compensation of any type from the Company, provided, however, if
Employee executes and does not revoke this Subsequent Release Agreement, he
shall be entitled to those payments and benefits that are specified in
this Subsequent Release Agreement.

 

2.             On the Separation Date, the Company shall pay Employee
all salary and all accrued but unused vacation earned by him through the
Separation Date.

 

3.             Employee agrees that prior to the execution of this Subsequent
Release Agreement he was not entitled to receive any monetary payments or
benefits from the Company beyond the Separation Date, and that the only
payments and benefits that Employee is entitled to receive from the Company in
the future are those specified in this Subsequent Release Agreement.

 

4.             Provided that Employee executes Subsequent Release
Agreement and does not revoke as set forth below or otherwise, Company shall
pay to Employee:

 

 

8

 

(a) a gross amount equal to one year of Employee’s
last base salary, which was two hundred fifty six thousand five hundred seventy
three dollars and zero cents ($256,573.00) per year. Said payment shall be made
in a lump sum and shall be paid to Employee within ten days of running of the
seven (7) day revocation period described herein.  Said payments are subject to necessary and
authorized deductions, and will be mailed to Employee’s current home address.

 

(a)           Beginning after the running of the
revocation period set forth below, in addition, the Company shall pay Employee’s
COBRA premiums for twelve (12) months beginning with the premium for March 1,
2008 and ending with the premium for February 1, 2009, or until such time
as Employee obtains comparable benefits, whichever is sooner.  Employee expressly agrees that he shall
provide notice to the Company at such time as he receives comparable benefits,
so that the COBRA coverage and payments can be discontinued.  The Company will not withhold taxes or other
amounts from said premium payments and Employee shall be responsible for any
tax liability associated with such payments. 
Employee is solely responsible for timely electing COBRA coverage and
his failure to do so will result in forfeiture of the COBRA premiums identified
in this Paragraph 1(b).

 

(b)           The Company will also pay $4,500
worth of outplacement services with Lee Hecht Harrison.  The Company will not withhold taxes or other
amounts from any payments for outplacement services and Employee shall be
responsible for any tax liability associated with such payments.

 

(c)           The consideration set forth in
Paragraphs 4(a), 4(b) and 4(c) are not payable to Employee if
Employee does not execute the Subsequent Release Agreement or elects to revoke
this Subsequent Release Agreement as set forth below, or otherwise.

 

5.             Employee expressly agrees that:

 

(a)           He has been paid for all earned wages
and accrued vacation as of the date of termination, including, but not limited
to, any wages, salary, bonuses, incentive compensation, commissions, benefits,
and compensation of any type.

 

(b)           The foregoing payments set forth in
Paragraphs 4(a), 4(b) and 4(c) shall constitute an accord and
satisfaction and a full and complete settlement of Employee’s claims, shall
constitute the entire amount of monetary consideration provided to Employee
under this Subsequent Release Agreement except as provided herein, and that
Employee will not seek any further compensation for any other claimed damage,
costs or attorneys’ fees in connection with the matters encompassed in this
Subsequent Release Agreement.

 

(c)           The Company has made no
representations to Employee regarding the tax consequences of any amounts
received by Employee pursuant to this Subsequent Release Agreement.  Employee agrees to pay any and all federal,
state, county or local taxes, which are required by law to be paid with respect
to this Subsequent Release Agreement. 
Employee agrees to indemnify and hold the Company harmless from any
claims, demands, deficiencies, levies, assessments, executions, judgments or
recoveries by any governmental entity against the Company for any amounts
claimed due on account of this Subsequent Release Agreement or 

 

 

9

pursuant to claims made
under any federal, state, county or local tax laws, and any costs, expenses or
damages sustained by the Company by reason of any such claims.

 

6.             Employee represents that he has not filed any complaint,
claims or actions against the Company, its affiliated companies, or their
current or former officers, agents, directors, supervisors, employees,
attorneys or representatives with any state, federal or local agency or court
and that Employee will not do so at any time hereafter, except that Employee
understands that nothing in this Subsequent Release Agreement shall be
construed to prohibit him from filing a charge with, or participating in any
investigation or proceeding conducted by, the Equal Employment Opportunity
Commission, National Labor Relations Board, and/or any federal, state or local
agency.  Notwithstanding the foregoing,
Employee hereby waives any and all rights to recover monetary damages in any
charge, complaint or lawsuit filed by him or by anyone else on his behalf.

 

7.             Employee shall refrain from communicating any
disparaging, derogatory, libelous or scandalous statements to any third party
regarding the Company, its products, services, employees, agents, or
representatives.  The Company agrees that
its Executive Officers have not and will not make any derogatory, disparaging
or negative statements about Employee.

 

8.             Employee hereby agrees that all rights he may have under
section 1542 of the California Civil Code are hereby waived by Employee.  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 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.”

 

9.             Notwithstanding the provisions of section 1542 of the
Civil Code of the State of California, Employee without limitation hereby
irrevocably and unconditionally releases and forever discharges the Company,
and its affiliated companies, their current and former officers, agents, directors,
supervisors, employees, representatives, successors and assigns, and all
persons acting by, through, under, or in concert with any of them from any and
all charges, complaints, claims, causes of action, debts, sums of money,
controversies, agreements, promises, damages and liabilities of any kind or
nature whatsoever, both at law and equity, known or unknown, suspected or
unsuspected, arising from conduct occurring on or before the date of this
Subsequent Release Agreement, including without limitation any claims
incidental to or arising out of Employee’s employment with the Company or the
termination thereof.  It is expressly
understood by Employee that among the various rights and claims being waived in
this release are those arising under the Age Discrimination in Employment Act
of 1967 (29 U.S.C. § 621. et seq.), including the Older Workers’ Benefit
Protection Act (29 U.S.C. § 626(f)). 
This provision is intended by the parties to be all encompassing and to
act as a full and total release of any claim, whether specifically enumerated
herein or not, that Employee might have or has had, that exists or ever has
existed on or to the date of this Subsequent Release Agreement, except for any
claims which may not legally be released, including but not limited to claims
for unemployment insurance, workers’ compensation or indemnification under
California Labor Code section 2802. 
Employee acknowledges that he has thoroughly investigated whether he has
any rights to 

 

 

 

10

indemnification and
agrees that he is unaware of any such rights. 
All released claims, including related attorneys’ fees and costs, are
forever barred by this Subsequent Release Agreement and without regard to
whether those claims are based on any alleged breach of a duty arising in
contract or tort; any alleged unlawful act, any other claim or cause of action;
and regardless of the forum in which it might be brought.

 

10.           This Subsequent Release Agreement and
compliance with its terms shall not be construed as an admission by the Company
of any liability whatsoever, or as an admission by the Company of any violation
of the rights of Employee.  The Company
specifically disclaims any liability to Employee for any alleged violation of
any order, law, statute, duty or contract on the part of the Company, or its
employees or agents.

 

11.           Employee understands and agrees that
Employee:

 

(a)           Has had the opportunity of a full
twenty-one (21) days within which to consider this Subsequent Release Agreement
before signing it, and that if Employee has not taken that full time period
that Employee has failed to do so knowingly and voluntarily.

 

(b)           Has carefully read and fully
understands all of the provisions of this Subsequent Release Agreement.

 

(c)           Is, through this Subsequent Release
Agreement, releasing the Company, its affiliated companies, and their current
and former officers, agents, directors, supervisors, employees, attorneys,
representatives, successors and assigns and all persons acting by, through,
under, or in concert with any of them, from any and all claims Employee may
have against the Company or such individuals.

 

(d)           Knowingly and voluntarily agrees to
all of the terms set forth in this Subsequent Release Agreement and intends to
be legally bound by the same.

 

(e)           Was advised and hereby is advised in
writing to consider the terms of this Subsequent Release Agreement and consult
with an attorney of Employee’s choice prior to signing this Subsequent Release
Agreement.

 

(f)            Has a full seven (7) days
following the execution of this Subsequent Release Agreement to revoke this
Subsequent Release Agreement, and has been and hereby is advised in writing
that this Subsequent Release Agreement, all of its terms, and all of the
obligations of the Company contained herein, shall not become effective or
enforceable until the revocation period has expired.

 

(g)           Understands that rights or claims
under the Age Discrimination in Employment Act of 1967 (29 U.S.C. § 621, et
seq.) that may arise after the date this Subsequent Release Agreement is signed
are not waived.

 

12.           Employee shall not execute this
Subsequent Release Agreement prior to the Separation Date.

 

 

 

11

13.           Employee agrees not to interfere with
the Company’s relationship with current employees, suppliers, customers or
investors.  In furtherance of this
obligation, for a period of twelve (12) months following the date of Employee’s
execution of this Subsequent Release Agreement, Employee shall not directly or
indirectly, for Employee or any other person, business or entity, solicit the
services of anyone employed by the Company during Employee’s employment.

 

14.           The parties hereto represent and
acknowledge that in executing this Subsequent Release Agreement they do not
rely and have not relied upon any representation or statement made by any of
the parties or by any of the parties’ agents, attorneys or representatives with
regard to the subject matter or effect of this Subsequent Release Agreement or
otherwise, other than those specifically stated in this written Agreement.

 

15.           This Subsequent Release Agreement
shall be binding upon the parties hereto and upon their heirs, administrators,
representatives, executors, successors, and assigns, and shall inure to the
benefit of said parties and each of them and to their heirs, administrators,
representatives, executors, successors, and assigns.  Employee expressly warrants that Employee has
not transferred to any person or entity any rights or causes of action, or
claims released by this Subsequent Release Agreement.

 

16.           Should any provision of this
Subsequent Release Agreement be declared or be determined by any court of
competent jurisdiction to be illegal, invalid, or unenforceable, the legality,
validity and enforceability of the remaining parts, terms or provisions shall
not be effected thereby and said illegal, unenforceable, or invalid term, part
or provision shall be deemed not to be a part of this Subsequent Release
Agreement.

 

17.           With the exception of the Proprietary
Information and Invention Assignment Agreement previously entered into between
Employee and the Company, which shall remain in full force and effect and are
unaffected by this Subsequent Release Agreement, this Subsequent Release Agreement
sets forth the entire agreement between the parties hereto and fully supersedes
any and all prior agreements and understandings, written or oral, between the
parties hereto pertaining to the subject matter hereof.  This Subsequent Release Agreement may only be
amended or modified by a writing signed by the parties hereto.  Any waiver of any provision of this
Subsequent Release Agreement shall not constitute a waiver of any other
provision of this Subsequent Release Agreement unless expressly so indicated
otherwise.

 

18.           This Subsequent Release Agreement
shall be interpreted in accordance with the plain meaning of its terms and not
strictly for or against any of the parties hereto.

 

19.           This Subsequent Release Agreement is
made and entered into in the State of California, and shall in all respects be
interpreted, enforced and governed by and under the laws of the State of
California.

 

20.           Any dispute arising between Employee
and the Company pertaining to the formation, validity, interpretation, effect
or alleged breach of this Subsequent Release Agreement or any matters released
herein, will be submitted to binding arbitration at a mutually agreeable
location, or in the absence of such, in Santa Clara County, California.  Such arbitration supplants, replaces 

 

 

12

 

and waives any right that
Employee or the Company may have to pursue any dispute, claim or controversy
relating to the formation, validity, interpretation, effect or alleged breach
of this Subsequent Release Agreement in any court, agency, tribunal or other
forum, including a civil action before any jury.  The parties agree to submit any such dispute
to binding arbitration pursuant to the JAMS Employment Arbitration Rules and
Procedures as are in effect on the date of the submission.  Either Employee or the Company may initiate
arbitration hereunder by written notice to the other which shall include a
concise statement of the issue(s) to be arbitrated, along with a statement
setting forth the relief requested. Any demand for arbitration shall be filed
within one year following the act, occurrence, or non-occurrence giving rise to
the claim(s) upon which arbitration is sought or required.  Any failure to demand arbitration within this
time frame and according to these rules shall constitute a waiver of all
rights to raise any claims in any forum arising out of any dispute that was
subject to arbitration.  The decision of
the arbitrator pursuant to this Subsequent Release Agreement shall be in
writing, final, valid, irrevocable and conclusively binding upon the parties to
the dispute.  The award may be entered as
a judgment in any court of competent jurisdiction and the parties agree to
stipulate to entry of judgment.  Should
either Employee or the Company disregard this arbitration requirement and
pursue an action subject hereto in any court or other as provided herein, upon
application of the aggrieved party to a court of competent jurisdiction, the
court shall order the matter to arbitration and shall award the prevailing
party in any such hearing its reasonable costs and attorney’s fees incurred in
connection therewith.

 

21.           This Subsequent Release Agreement may
be executed in counterparts and each counterpart, when executed, shall have the
efficacy of a second original. 
Photographic or facsimile copies of any such signed counterparts may be
used in lieu of the original for any said purpose.

 

	
   

  	
   

  	
  For Employee:

  
	
   

  	
  Dated:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Hossein Arjomand

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For Align
  Technology, Inc.:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated:

  	
  By:

  	
   

  

 

 

13EXHIBIT 10.30

 

EMPLOYMENT AGREEMENT

 

                                                THIS AGREEMENT
(the “Agreement”) is dated as of this 12th day of February, 2007 (the “Effective
Date”), between DST Technologies, Inc., a Missouri corporation (“Company”)
and Thomas Abraham (“Employee”).

 

                                                In consideration
of the promises and mutual covenants contained herein and intending to be
legally bound hereby, the parties agree as follows:

 

                                                1.                                      EMPLOYMENT.  This Agreement is effective as of the
Effective Date.  Employee expressly
consents to be bound by the provisions of this Agreement for the benefit of
Company and of any subsidiary or affiliate of the Company or DST Systems, Inc.
(“DST”) to whose employ Employee may be transferred, without the necessity that
this Agreement be resigned at the time of such transfer.  Employee shall serve as Group Chief
Executive-DST International  and have the
duties, authority and responsibilities as Company or DST International may from
time to time prescribe or request.  From
time to time, Company or DST International and Employee may mutually agree that
Employee shall serve in a role other than as set forth above.  Employee further agrees that while employed
by Company, he will devote substantially all
of his working time and efforts to the business of the Company, DST International
and their respective affiliates.  Except
as otherwise provided in this Agreement, Employee acknowledges and agrees that
Employee has no rights to separation pay.

 

                                                2.                                      TERM.  Employee’s employment shall continue under
the terms of this Agreement until the earlier of (i) February 1, 2010  or (ii) Employee’s employment with
Company is terminated in accordance with Paragraph 4 of this Agreement.

 

                                                3.                                      COMPENSATION
AND BENEFITS.

 

3.1                Compensation.  During the period of Employee’s employment
hereunder, Company shall pay Employee for the performance of his duties under
this Agreement an annual base salary Three Hundred Thousand and no/100’s
dollars ($300,000) payable in accordance with Company’s policies and subject to
normal withholdings and to adjustment from time to time as agreed by the
parties (the “Base Salary”).

 

3.2                Incentive
Plan.  Employee shall be
eligible to participate in a DST annual incentive award program (“Program”)
beginning, on a prorata basis,
with the 2007 performance year of any such applicable Program, and under such
terms, as determined from time to time by the DST Board of Directors (“DST
Board”) or the Compensation Committee or other appropriate committee of the DST
Board (the “DST Compensation Committee”). 
Payment to Employee of an annual bonus (“Annual Incentive”) may depend
on achievement of DST International, DST or other goals as the DST Compensation
Committee determines, including without limitation a combination of DST
International, DST or other goals. 
Subject to the terms of the Program, 
Employee’s Threshold, Target and Maximum opportunity levels shall be the
following percentages of Base Salary as of the beginning of each year:

 

	
  Threshold

  	
   

  	
  Target

  	
   

  	
  Maximum

  	
   

  
	
  50%

  	
   

  	
  100%

  	
   

  	
  150%

  	
   

  

 

 

1

 

Any payout upon goal achievement may consist of any combination of
cash, deferred cash or other award components selected by the DST Compensation
Committee.  Employee understands that the
Company’s board, the DST Board or the DST Compensation Committee may change,
revoke or terminate a Program or Employee’s participation therein at any time;
provided that, while the Program is in effect, Employee’s Threshold, Target and
Maximum Annual Incentive percentages will not be reduced below the percentages
shown above.  The terms of Employee’s
participation in a Program are established by the Company’s board, the DST
Board, or the DST Compensation Committee and not by this Agreement.  The actual amount of any Annual Incentive
earned will be based upon meeting specific corporate or business unit goals set
in accordance with the Program.

 

                                                                                                3.3                               Employee
Benefits.

 

3.3.1           Equity Plan Participation.
Employee shall be entitled to participate in the DST Systems, Inc. 2005
Equity Incentive Plan (the “2005 Plan”) in accordance with the terms thereof,
at a level consistent with DST’s practice regarding awards to senior executive
officers excluding benefits unique to DST contracts with the Chief Executive
Officer and Chief Operating Officer and taking into account Exhibit B
hereto (Expatriate Assignment
Detail). Awards under the 2005 Plan are granted in the discretion of the DST
Board or DST Compensation Committee or other appropriate committee of the DST
Board. It is understood that Employee will not be granted an equity award for
any period prior to 2010, except that DST management will propose to the DST
Compensation Committee at its first regularly scheduled meeting after the
Effective Date an initial grant of 45,000 shares of restricted DST common stock
to vest January 31, 2010, subject to the terms and conditions set forth in
Exhibit A to this Agreement.

 

3.3.2           Incentive, Savings and Retirement Plans.  In addition to Base Salary and an Annual
Incentive, Employee shall be entitled to participate during his employment
hereunder in all incentive, savings and retirement plans, practices, policies
and programs, whether or not qualified under Section 401(a) of the
Internal Revenue Code of 1986, as amended (the 
“Code”), that are from time to time applicable to other senior
executives of DST in accordance with their terms as in effect from time to
time.

 

3.3.3           Welfare Benefits.  During his employment, Employee and/or his
family, as the case may be, shall be eligible for participation in and shall
receive all benefits under welfare benefit plans, practices, policies and
programs provided by DST (including medical, prescription, dental, disability,
salary continuance, employee life, dependent life, accidental death and travel
accident insurance plans and programs) generally applicable to other senior
executives of DST in accordance with their terms (including limitations on
eligibility) as in effect from  time to
time. DST reserves the right to change, revoke or terminate any welfare benefit
plan, practice, policy or program at any time.

 

3.3.4           Fringe Benefits.  During his employment, Employee shall be
entitled to fringe benefits applicable to othersenior executives of DST
excluding benefits unique to DST contracts with the Chief Executive Officer and
Chief Operating Officer and taking into account Exhibit B hereto (Expatriate Benefits).

 

3.3.5           Vacation.  During his employment, Employee shall be
entitled to paid vacation time in accordance with  DST International plans, practices, policies,
and programs, but in no event shall such vacation time be less than four weeks
per calendar year.

 

 

2

 

3.3.6           Expenses.  During his employment, Employee shall be
entitled to receive prompt reimbursement for all ordinary and necessary
business expenses incurred by Employee, upon the receipt by Company of an
accounting in accordance with Company practices, policies and procedures.

 

3.3.7           The
DST Systems, Inc. Expatriate Assignment Program shall apply to Employee’s
assignment to work in the U.K.  The
assignment detail set forth in Exhibit B shall govern the assignment.  .

 

                                                4.                                      TERMINATION.

 

                                                                                                4.1                               Death.  Employee’s employment under this Agreement
shall terminate upon Employee’s death and Employee’s estate (or his
beneficiary, as may be appropriate) shall be entitled to receive (i) an
amount equal to all Base Salary earned and accrued to the date of Employee’s
death, to the extent theretofore unpaid; and (ii) any other benefits
payable upon death under any applicable employee benefit plan in which Employee participated at the date of his
death.  Except as provided under this
Agreement or under any applicable employee benefit plan, all other obligations
of Company under this Agreement shall terminate as of the date of Employee’s
death during employment.

 

                                                                                                4.2                               Disability.  If Company determines that Employee is unable
to perform his duties under this Agreement because of his “disability” as
defined by or determined in accordance with the Rules and Procedures of
the DST Compensation Committee, Company may terminate Employee’s
employment.  Such termination shall be
effective as of the date determined by Company pursuant to Company procedures,
and Employee shall be entitled to receive (i) an amount
equal to all Base Salary earned and accrued to the date of termination, to the
extent theretofore unpaid; and (ii) any other benefits payable upon such
disability under any applicable employee benefit plan in which Employee participated at the time of termination.  Except as provided under this Agreement or
under any applicable employee benefit plan, all other obligations of Company
under this Agreement shall terminate as of the date of such termination.

 

                                                                                                4.3                               Voluntary.  Employee’s employment under this Agreement
shall terminate upon Employee’s voluntary termination of employment.  Company shall have no further obligations
under this Agreement, except Employee shall be entitled to receive (i) within
30 days after the date of termination, an amount equal to all Base Salary
earned and accrued to the date of termination, to the extent theretofore
unpaid, and (ii) such other benefits to which Employee is entitled under
any employee benefit plan in which Employee participated at the time of
termination.  Except as provided under
this Agreement or under any applicable employee benefit plan, all other
obligations of Company under this Agreement shall terminate as of the date of
such termination.

 

                                                                                                4.4                               For Cause by Company.  Company may
terminate this Agreement and Employee’s employment “for cause” immediately upon
notice to Executive.  For purposes of
this Agreement, termination “for cause” shall mean termination based upon any
one or more of the following:

 

(a)                                 Any
material breach of this Agreement by Empolyee which is not, or cannot be, cured
(in each case in the sole judgment of the DST Board) within thirty (30) days
after written notice of such breach to Employee;

 

(b)                                 Employee’s
dishonesty involving Company, DST International or any other DST affiliate;

 

 

3

 

(c)                                  Gross
negligence or willful misconduct in the performance of Employee’s duties as
determined in good faith by the DST Board;

 

(d)                                 Willful
failure by Employee to follow reasonable instructions of the DST Board or any
officer to whom Employee reports concerning the operations or business of
Company, DST International or any other DST affiliate;

 

(e)                                  Employee’s
fraud or criminal activity; or

 

(f)                                   Embezzlement
or misappropriation by Employee.

 

                                                                                                4.5                               Other Than for
Cause by Company.  Company may
terminate Employee’s employment under this Agreement at any time without Cause
by giving written Notice of Termination to Employee. If Company terminates
Employee’s employment without Cause, Company
shall have the obligations set forth in this Paragraph 4.5 for twenty-four (24)
months following such termination (the “Period”); provided, however, that
notwithstanding any other provision of this Agreement, the obligations in this
Paragraph shall not apply unless Employee executes a general release in favor
of Company, its affiliates and subsidiaries.  During the Period, Company shall continue to pay to Employee
a monthly amount equal to one-twelfth (1/12th) of the annual Base
Salary at the rate in effect immediately prior to such termination without
Cause, which amount shall be separation pay and may be on regular payroll
dates.   If, upon termination without
Cause, Employee elects continued group medical coverage for himself and his
eligible dependents pursuant to COBRA, Company shall pay for such continued
coverage for the lesser of the COBRA continuation period or the duration of the
Period, with the same deductible and out-of-pocket expenses as apply to active
employees (and their eligible dependents) from time to time during the COBRA
continuation coverage period, and (2) monthly reimburse Employee for the
cost of premiums for health plan benefits comparable to such benefit plans
provided to Employee at the time of termination of active employment for the
period beginning on the expiration of COBRA continuation coverage and ending on
the last day of the Period.  Upon termination without Cause, if
Employee had participated in DST’s officer life insurance program, Company
shall monthly reimburse Employee for the cost of premiums for comparable life
insurance benefits ending on the last day of the Period.  Notwithstanding
the foregoing, any life, health or other reimbursement obligation set forth in
this subparagraph shall lapse as of the date comparable coverage in connection
with other employment is made available to Employee regardless of whether Employee
participates in such alternate coverage program.  The Company shall reimburse Employee for any
state and local taxes due with respect to amounts paid hereunder for COBRA
continuation coverage or for the cost of health or life insurance. The terms
and conditions of this subparagraph shall continue until the end of the Period  notwithstanding the death or disability of
Employee during the Period.  For
avoidance of doubt, neither termination of employment for disability nor
assignment or deemed assignment of this Agreement to a subsidiary or affiliate
of Company or DST shall be treated as a termination without cause.   Employee shall receive, on the payment due
date as provided in the DST Annual Incentive Program, any Annual Incentive
earned for the performance year in which Employee’s employment terminated;
provided, however, that (i) such award shall be prorated to reflect only the portion of such performance
year that precedes Employee’s termination, (ii) the portion of the prorated award that would otherwise have
been deferred under the DST Annual Incentive Program shall be paid in cash and
shall not be deferred, and (iii) the amount payable shall be separation
pay and may be paid in installments on regular payroll dates over the
Period.  Notwithstanding the receipt
during the Period of separation pay as provided herein and the benefits 

 

4

 

that are generally available to executive employees of DST during the
Period, (a) Employee shall not be entitled to accrue or receive such
benefits during the Period except as set forth herein, and (b) any
contributions and benefits under applicable plans with respect to the year of
termination shall be based solely upon compensation paid to Employee for
periods prior to termination.  In the
year of termination, Employee shall be entitled to participate in any qualified
plan made available to Company employees only if the Employee meets all
requirements of such plans for participation in such year.

 

                                                                                                4.6                               Employee’s
Duties Upon Termination.  Upon
termination of this Agreement by Company or Employee for any reason, Employee
shall immediately return to Company all Proprietary Information (as defined in
Paragraph 6) which exists in tangible form and shall sign such written resignations
from all positions as an officer, director or member of any committee or board
of Company, DST International, DST or DST subsidiary or affiliate as may be
requested by Company, DST International, DST or DST subsidiary or affiliate and
such other documents and papers relating to Employee’s employment, benefits and
benefit plans as any such entity  may
reasonably request.

 

                                                5.                                      CONTINUATION OF
EMPLOYMENT UPON CHANGE IN CONTROL.

 

                                                                                                5.1                               Continuation Of
Employment.  Subject to
the terms and conditions of this Paragraph 5, in the event of a Change in
Control of DST (as defined in Paragraph 5.4) at any time during Employee’s
employment hereunder, Employee will remain in the employ of the Company for a
period of an additional three years from the date of such Change in Control of
DST (the “Control Change Date”).  In the
event of a Change in Control of DST, subject to the terms and conditions of
this Paragraph 5, Company shall, for the three-year period (the “Three-Year
Period”) immediately following the Control Change Date, continue to employ
Employee at not less than the executive capacity Employee held immediately
prior to the Change in Control of DST. 
During the Three-Year Period, Company shall continue to pay Employee
salary on the same basis, at the same intervals, and at a rate not less than
that, paid to Employee at the Control Change Date.

 

                                                                                                5.2                               Benefits.  During the Three-Year Period, Employee shall
be entitled to participate, on the basis of his Employee position, in each of
the following plans (together, the “Specified Benefits”) in existence, and in
accordance with the terms thereof, at the Control Change Date:

 

(a)                                 any incentive
compensation plan;

 

(b)                                 any benefit
plan, and trust fund associated therewith, related to (i) life, health,
dental, disability, or accidental death and dismemberment insurance, (ii) profit
sharing, thrift or deferred savings (including deferred compensation, such as
under Sec. 401(k) plans), (iii) retirement or pension benefits, (iv) ERISA
excess benefits, and (v) tax favored employee stock ownership (such as
under ESOP, TRASOP, TCESO or PAYSOP programs); and

 

(c)                                  any other
benefit plans hereafter made generally available to employees at Employee’s
level or to the employees of Company generally.

 

In addition, the change in control provisions of the agreements and
plans governing options, restricted shares, deferred cash and other equity or
incentive awards granted to Employee under the 2005 Plan or any other award
plan of DST or its affiliates shall govern whether any such outstanding awards
become 

 

5

 

exercisable or payable or vest in connection with a change in control,
as defined in the applicable agreement or plan.

 

                                                                                                5.3                               Payment.  With respect to any plan or agreement under
which Employee would be entitled at the Control Change Date to receive
Specified Benefits as a general obligation of Company which has not been
separately funded by DST or Company (including specifically, but not limited
to, those referred to under Paragraphs 5.2(a) and 5.2(b)(iv) above),
Employee shall receive within five (5) days after such date full payment
in cash of all amounts to which he is then entitled thereunder.

 

                                                                                                5.4                               Change in
Control of DST.  For
purposes of this Agreement, a “Change in Control” shall be deemed to have
occurred if:

 

(a)                                 the Incumbent
Directors cease for any reason to constitute at least seventy-five percent
(75%) of the directors of DST then serving;

 

(b)                                 any “person”
(as such term is used in Sections 13(d) and 14(d)(2) of the
Securities Exchange Act of 1934 (the “Exchange Act”)) other than DST or any
majority-owned subsidiary of DST, or an employee benefit plan of DST or of any
majority-owned subsidiary of DST shall have become the “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act) directly or indirectly, of
securities of DST representing twenty percent (20%) or more (calculated in
accordance with Rule 13d-3) of the combined voting power of DST’s then
outstanding Voting Securities; provided,
however, that a person’s becoming such a beneficial owner shall not constitute
a Change in Control if such person is party to an agreement that limits the
ability of such person and its affiliates (as defined in Rule 12b-2 under
the Exchange Act) to obtain and exercise control over the management and
policies of DST;

 

(c)                                  a
Reorganization Transaction is consummated, other than a Reorganization
Transaction which results in the Voting Securities of DST outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into Voting Securities of the surviving
entity) at least sixty percent (60%) of the total voting power represented by
the Voting Securities of such surviving entity outstanding immediately after
the Reorganization Transaction, if the voting rights of each Voting Security
relative to the other Voting Securities were not altered in the Reorganization
Transaction; or

 

(d)                                 the
stockholders of DST approve a plan of complete liquidation of DST, other than
in connection with a Reorganization Transaction.

 

                                                Notwithstanding
the occurrence of any of the foregoing events, a Change in Control shall not
occur with respect to Employee if, in advance of such event, Employee agrees in
writing that such event shall not constitute a Change in Control.

 

                                                For purposes of
this definition, the following terms have the meaning set forth below:

 

                                                                                                (a)                                 “Incumbent
Directors” means (i) an individual who was a member of the DST Board on May 10,
2005 (effective date of the 2005 Plan); or (ii) an individual whose
election, or nomination for election by DST’s stockholders, was approved by a
vote 

 

6

 

of at least seventy-five percent (75%) of the members of the DST Board
then still in office who were members of the DST Board on such effective date;
or (iii) individuals whose election, or nomination for election by DST’s
stockholders, was approved by a vote of at least seventy-five percent (75%) of
the members of the DST Board then still in office who were elected in the
manner described in (i) or (ii) above; provided that no director whose election was in connection
with a proposed transaction which, if consummated, would be a Change in Control
shall be an Incumbent Director.

 

                                                                                                (b)                                 “Related Party”
means (i) a majority-owned subsidiary of DST; or (ii) an employee or
group of employees of DST or of any majority-owned subsidiary of DST; or (iii) an
employee benefit plan of DST or of any majority-owned subsidiary of DST; or (iv) a
corporation owned directly or indirectly by the stockholders of DST in
substantially the same proportion as their ownership of the voting power of
Voting Securities of DST.

 

                                                                                                (c)                                  “Reorganization
Transaction” means a merger, reorganization, consolidation, or similar
transaction or a sale of all or substantially all of DST’s assets other than
any such sale which would result in a Related Party owning or acquiring more
than fifty percent (50%) of the assets owned by DST immediately prior to the
sale.

 

                                                                                                (4)                                 “Voting
Securities” of a corporation means securities of such corporation that are
entitled to vote generally in the election of directors, but not including any
other class of securities of such corporation that may have voting power by
reason of the occurrence of a contingency.

 

                                                                                                5.5                               Termination
After Control Change Date. 
Notwithstanding any other provision of this Paragraph 5, at any time
after the Control Change Date, Company may, with approval of the DST Board,
terminate the employment of Employee (the “Termination”), but within five (5) days
of the Termination it shall pay to Employee his full Base Salary through the
Termination, to the extent not theretofore paid, plus a lump sum amount (the “Special
Severance Payment”) equal to the product of his annual Base Salary multiplied by
the number of years and any portion thereof remaining in the Three-Year Period
or, if the balance of the Three-Year Period after Termination is less than one
year, for a period of one year from the Control Change Date (the “Extended
Period”).  Specified Benefits to which
Employee was entitled immediately prior to Termination shall continue until the
end of the Three-Year Period or, if applicable, the Extended Period; provided
that:  (a) if any plan pursuant to
which Specified Benefits are provided immediately prior to Termination would
not permit continued participation by Employee after Termination, then DST
shall pay to Employee within five (5) days after Termination a lump sum
payment equal to the amount of Specified Benefits Employee would have received
if Employee had been fully vested and had been a continuing participant in such
plan to the end of the Three-Year Period or, if applicable, the Extended Period
(with the amount for health insurance coverage calculated as provided in
Paragraph 4.5 except basing the calculation on the Three-Year Period or, if
applicable, the Extended Period); (b) if Employee obtains new employment
following Termination, then following any waiting period applicable to
participation in any plan of the new employer, Employee shall continue to be
entitled to receive benefits pursuant to this sentence only to the extent such
benefits would exceed those available to Employee under comparable plans of the
Employee’s new employer (but Employee shall not be required to repay any amounts
then already received by him), and (c) Employee shall receive in a lump
sum the aggregate amount of the annual incentives that Employee would have
received if target goals had been met 

 

7

 

for each year of the Three-Year Period or, if applicable, the Extended
Period (prorated for the final
performance year if the Three-Year Period or the Extended Period, as the case
may be, ends partially through such performance year and with the deferred
portion to be paid in cash, all as set forth in Paragraph 4.5).

 

                                                                                                5.6                               Resignation
After Control Change Date.  In
the event of a Change in Control of DST, thereafter, upon “good reason” (as
defined below) Employee may, at any time during the Three-Year Period or the
Extended Period, in his sole discretion, on not less than thirty (30) days’
written notice to the Secretary of DST given within ninety (90) days of the
date the good reason arose and effective at the end of such notice period,
resign his employment with DST (the “Resignation”).  Within five (5) days of such a
Resignation, Company shall pay to Employee his full Base Salary through the
effective date of such Resignation, to the extent not theretofore paid, plus a
lump sum amount equal to the Special Severance Payment (computed as provided in
Paragraph 5.5, except that for purposes of such computation all references to “Termination”
shall be deemed to be references to “Resignation”).  Upon Resignation of Employee, Specified
Benefits to which Employee was entitled immediately prior to Resignation shall
continue or be reimbursed on the same terms and conditions as provided in
Paragraph 5.5 in the case of Termination (including equivalent payments
provided for therein).  For purposes of
this Agreement, Employee shall have “good reason” if there occurs without his
consent (a) a reduction in the character of the duties assigned to
Employee or in Employee’s level of work responsibility or conditions; (b) a
reduction in Employee’s Base Salary as in effect immediately prior to the
Control Change Date or as the same may have been increased thereafter; (c) a
failure by Company or its successor to (i) either continue any of the
plans of the type referred to in Paragraph 5.2 which shall have been in effect
at the Control Change Date (including those providing for Specified Benefits)
and Employee’s participation therein on at least the basis in effect
immediately prior to the Control Change Date or provide other plans under which
at least equivalent compensation and benefits are available and in which
Employee continues to participate on a basis at least equivalent to his
participation in such plans in effect immediately prior to the Control Change
Date (provided, however, that Employee shall not have good reason if
participation in any such plan is immaterial or benefits to Employee from
participation in such plans are not reduced by more than ten percent (10%) in
the aggregate); or (ii) make the payment required under Paragraph 5.3; (d) the
relocation of the principal executive offices of DST International or its
successor to a location outside the metropolitan area of London, England or
requiring Employee to be based anywhere other than the London metropolitan
area, except for required travel on Company’s business to an extent substantially
consistent with Employee’s obligations immediately prior to the Control Change
Date; or (e) any breach by Company of this Agreement to the extent not
previously specified.

 

                                                                                                5.7                               Termination For
Cause After Control Change Date.  Notwithstanding any other provision of this
Paragraph 5, at any time after the Control Change Date, Employee may be
terminated by Company “for cause” without notice and without any payment
hereunder only if such termination is for an act of dishonesty by Employee
constituting felony under the laws of the State of Missouri which resulted or
was intended to result in gain or personal enrichment of Employee at Company’s
expense.

 

                                                                                                5.8                               Mitigation And
Expenses.

 

                                                                                                                                                5.8.1                     Other
Employment.  After the
Control Change Date, Employee shall not be required to mitigate the amount of
any payment provided for in this Agreement by seeking other employment or
otherwise, and, except as expressly set forth herein, no such other employment,
if obtained, or compensation or benefits payable in connection therewith shall
reduce any amounts or benefits to which Employee is entitled hereunder.

 

 

8

 

                                                                                                                                                5.8.2                     Expenses.  If any dispute should arise under this
Agreement after the Control Change Date involving an effort by Employee to
protect, enforce or secure rights or benefits claimed by Employee hereunder,
Company shall pay (promptly upon demand by Employee accompanied by reasonable
evidence of incurrence) all reasonable expenses (including attorneys’ fees)
incurred by Employee in connection with such dispute, without regard to whether
Employee prevails in such dispute except that Employee shall repay Company any
amounts so received if a court having jurisdiction shall make a final,
nonappealable determination that Employee acted frivolously or in bad faith by
such dispute.  To assure Employee that
adequate funds will be made available to discharge Company’s obligations set
forth in the preceding sentence, DST has established a trust and, upon the
occurrence of a Change in Control, shall promptly deliver to the trustee of
such trust to hold in accordance with the terms and conditions thereof that sum
which the DST Board shall have determined is reasonably sufficient for such
purpose.

 

                                                                                                5.9                               Successors in
Interest.  The rights
and obligations of Employee and Company under this Paragraph 5 shall inure to
the benefit of and be binding in each and every respect upon the direct and
indirect successors and assigns of Company and Employee, regardless of the
manner in which such successors or assigns shall succeed to the interest of
Company or Employee hereunder, and this Paragraph 5 shall not be terminated by
the voluntary or involuntary dissolution of Company or DST or any merger or
consolidation or acquisition involving Company or DST, or upon any transfer of
all or substantially all of Company’s or DST’s assets, or terminated otherwise
than in accordance with its terms.  In
the event of any such merger or consolidation or transfer of assets, the
provisions of this Paragraph 5 shall be binding upon and shall inure to the
benefit of the surviving corporation or the corporation or other person to
which such assets shall be transferred.

 

                                                                                                5.10                        Prevailing
Provisions.  On and
after the Control Change Date, the provisions of this Paragraph 5 shall control
and take precedence over any other provisions of this Agreement which are in
conflict with or address the same or a similar subject matter as the provisions
of this Paragraph 5.

 

                                                                                                5.11                        Gross Up
Provision.

 

                                                                                                                                                5.11.1              If at any time
or from time to time, it shall be determined by tax counsel mutually agreeable
to Company and Employee that any payment or other benefit to Employee on or
after the Control Change Date, whether payable pursuant to the terms of this
Agreement or any other plan, agreement or arrangement with DST, its successors
or any person whose actions result in a Change of Control of Company (“Potential
Parachute Payment”), is or will become subject to the excise tax imposed by Section 4999
of the Code or any similar tax (“Excise Taxes”), then Company shall, subject to
the limitations below, pay or cause to be paid a tax gross-up payment (“Gross-Up
Payment”) with respect to all such Excise Taxes and other taxes on the Gross-Up
Payment.  The Gross-Up Payment shall be
an amount equal to the product of (a) the amount of the Excise Taxes
multiplied by (b) a fraction (the “Gross-Up Multiple”), the numerator or
which is one (1.0), and the denominator of which is one (1.0) minus the lesser
of (i) the sum, expressed as a decimal fraction, of the effective marginal
rates of any taxes and any Excise Taxes applicable to the Gross-Up Payment or (ii) .80,
it being intended that the Gross-Up Multiple shall in no event exceed five
(5.0).  If different rates of tax are
applicable to various portions of a Gross-Up Payment, the weighted average of
such rates shall be used.  Excise Taxes
and other penalties under Section 409A of the Code shall not be “any
similar tax” for purposes of this Agreement.

 

 

9

 

                                                                                                                                                5.11.2              To the extent
possible, any payments or other benefits to Employee pursuant to this Agreement
shall be allocated as consideration for Employee’s entry into the covenants
made by him in Paragraph 6.

 

                                                                                                                                                5.11.3              Notwithstanding
any other provisions of this Paragraph 5, if the aggregate After-Tax Amount (as
defined below) of the Potential Parachute Payments and Gross-Up Payment that,
but for this limitation, would be payable to Employee, does not exceed 120% of
After-Tax Floor Amount (as defined below), then no Gross-Up Payment shall be
made to Employee and the aggregate amount of Potential Parachute Payments
payable to Employee shall be reduced (but not below the Floor Amount) to the
largest amount which would both (a) not cause any Excise Tax to be payable
by Employee and (b) not cause any Potential Parachute Payments to become
nondeductible by Company by reason of Section 280G of the Code (or any
successor provision).  For purposes of
the preceding sentence, Employee shall be deemed to be subject to the highest
effective after-tax marginal rate of taxes.

 

                                                For purposes of
this Agreement:

 

                                                                                                                                                                                                (a)                                 “After-Tax
Amount” means the portion of a specified amount that would remain after payment
of all taxes paid or payable by Employee in respect of such specified amount;
and

 

                                                                                                                                                                                                (b)                                 “Floor Amount”
means the greatest pre-tax amount of Potential Parachute Payments that could be
paid to Employee without causing Employee to become liable for any Excise Taxes
in connection therewith; and

 

                                                                                                                                                                                                (c)                                  “After-Tax
Floor Amount” means the After-Tax Amount of the Floor Amount.

 

                                                                                                                                                5.11.4              If for any
reason tax counsel mutually agreeable to Company and Employee later determine
that the amount of Excise Taxes payable by Employee is greater than the amount
initially determined pursuant to the above provisions of this Paragraph 5.11,
then Company shall, subject to Paragraphs 5.11.5 and 5.11.6, pay Employee,
within thirty (30) days of such determination, or pay to the IRS as required by
applicable law, an amount (which shall also be deemed a Gross-Up Payment) equal
to the product of (a) the sum of (i) such additional Excise Taxes and
(ii) any interest, penalties, expenses or other costs incurred by Employee
as a result of having taken a position in accordance with a determination made pursuant
to Paragraph 5.11.5 multiplied by (b) the Gross-Up Multiple.

 

                                                                                                                                                5.11.5              Employee shall
immediately notify Company in writing (an “Employee’s Notice”) of any claim by
the IRS or other taxing authority (an “IRS Claim”) that, if successful, would
require the payment by Employee of Excise Taxes in respect of Potential
Parachute Payments in an amount in excess of the amount of such Excise Taxes
determined in accordance with Paragraph 5.11. 
Employee’s Notice shall fully inform Company of all particulars of the
IRS Claim and the date on which such IRS Claim is due to be paid.

 

                                                                                                Company shall
direct the Employee as to whether to pay all or part of the IRS Claim or to
contest the IRS Claim or to pursue a claim for a refund (a “Refund Claim”) of
all or any portion of such Excise Taxes, other taxes, interest or penalties as
may be specified by Company in a written notice to Employee.  If Company directs Employee to pay all or
part of the IRS Claim, the amount of such payment 

 

10

 

shall also be deemed a Gross-Up Payment, which Company shall pay to the
Employee or the IRS, as appropriate.  The
Employee shall cooperate fully with Company in good faith to contest such IRS
Claim or pursue such Refund Claim (including appeals) and shall permit DST to
participate in any proceedings relating to such IRS Claim or Refund Claim.

 

                                                                                                Company shall
control all proceedings in connection with such IRS Claim or Refund Claim (as
applicable) and in its discretion may cause Employee to pursue or forego any
and all administrative appeals, proceedings, hearings and conferences with the
Internal Revenue Service or other taxing authority.

 

                                                                                                Company shall
pay directly all legal, accounting and other costs and expenses (including
additional interest and penalties) incurred by Company or Employee in
connection with any IRS Claim or Refund Claim, as applicable, and shall
indemnify Employee, on an after-tax basis, for any Excise Tax or income tax,
including related interest and penalties, imposed as a result of such payment
of costs or expenses.

 

                                                                                                                                                5.11.6              If Employee
receives any refund with respect to Excise Taxes, Employee shall (subject to
Company’s complying with any applicable requirements of Paragraph 5.11.5)
promptly pay Company the amount of such refund (together with any interest paid
or credited thereon after taxes applicable thereto).  Any contest of a denial of refund shall be
controlled by Paragraph 5.11.5.

 

                                                6.                                      NON-DISCLOSURE,
INVENTION OWNERSHIP, NON-SOLICITATION AND NON-COMPETITION.  Only for purposes of this Paragraph 6, “Company”
shall mean Company, DST International, DST and their respective affiliates,
including without limitation joint ventures.

 

                                                                                                6.1                               Ownership and
Confidentiality of Proprietary Information.

 

                                                                                                                                                6.1.1       Definition
of Proprietary Information. 
All information and know how, whether or not in writing or other
tangible or electronic form, concerning the business or financial affairs of
Company, including but not limited to all (i) inventions, discoveries,
improvements and trade secrets, (ii) products and services and all plans,
service levels, specifications and concepts for products and services, (iii) business
plans, business and systems processes, methods, techniques, specifications and
formulas, (iv) research and development projects and data, (v) financial
and marketing data and information, (vi) information about customers and
prospective customers, including contractual terms, customer specifications and
the identity of and relationships with customer employees, (vii) names and
other data relating to Company employees, consultants, suppliers and
prospective employees, consultants and suppliers, (viii) computer data,
reports, computer programs, source codes, object codes, manuals, tapes,
listings, specifications, test results, programming sequences, application
programming interfaces, screen designs and formats and user interfaces,
algorithms, flow charts, program formats, user documentation and operating
processes, and (ix) trade names, copyrights and other intellectual
property rights, whether developed or invented by Employee or others, and
whether patentable, copyrightable or not, shall be “Proprietary Information.”

 

                                                                                                                                                6.1.2       Ownership
of Proprietary Information. 
All Proprietary Information and all files, databases, letters,
memoranda, reports, records, data, sketches, drawings, research notebooks,
program listings or other written, photographic or other material containing
Proprietary Information, whether created by Employee or others, and whether in
tangible, intangible, written or electronic form, shall be and are the
exclusive property of the Company to be used by Employee only in the
performance of 

 

11

 

Employee’s duties for the Company. 
All Proprietary Information and all records or copies thereof and all
tangible property of the Company in the custody or possession of Employee shall
be delivered to the Company upon the earlier of (i) a request by Company
or (ii) the termination of Employee’s employment.

 

                                                                                                                                                6.1.3                     Nondisclosure.  Employee shall not, either during or after
Employee’s employment by Company, disclose any Proprietary Information to
others outside Company, or use the same for any purpose without prior written
approval by the President of DST other than to discharge Employee’s duties
assigned by Company, unless and to the extent that any Proprietary Information
becomes generally known to and available for use by the public other than as a
result of the Employee’s acts or omissions or that any Proprietary Information
is required to be disclosed by valid court order and Employee has given Company
prompt notice of the order in advance of the disclosure.

 

                                                                                                6.2                               Invention
Non-Disclosure and Ownership.

 

                                                                                                                                                6.2.1       Disclosure
of Developments to Company. 
Employee shall make full and prompt disclosure to the Company of all
inventions, designs, processes, improvements, discoveries, methods, computer
hardware and software and other works of authorship, whether or not fully
integrated, debugged or documented and whether patentable, copyrightable or
not, which are created, made, conceived or reduced to practice by Employee or
under Employee’s direction or jointly with others during Employee’s employment
by the Company and related in any way to the business of Company, whether or
not during normal working hours or on the premises of the Company during
Employee’s employment by the Company (all of which are collectively referred to
as “Developments”).  All of the
Developments shall be deemed to be Proprietary Information.

 

                                                                                                                                                6.2.2                     Assignment
of Developments.  All
Developments will be the property of Company, and to the extent necessary
Employee hereby assigns to the Company (or any person or entity designated by
the Company) all Employee’s right, title and interest in and to all such
Developments and all related trademarks, patents, patent applications,
copyrights and copyright applications. 
In the event this Agreement shall be construed in accordance with the
laws of any state which precludes a requirement in an agreement to assign
certain classes of inventions made by an employee (“Non-Assignable Inventions”),
this Paragraph 6.2.2 shall not apply to any Non-Assignable Invention which,
pursuant to a final binding enforceable order of a court of competent
jurisdiction, or pursuant to an agreement of Company, falls within such
classes.  However, with respect to any
Non-Assignable Invention, Employee hereby grants to Company a perpetual,
royalty-free, non-exclusive license to make, use and sub-license such
Non-Assignable Invention, and to create derivative works therefrom, in
connection with the conduct of Company’s business.

 

                                                                                                                                                6.2.3                     Further
Assurances.  Employee
agrees to cooperate fully with Company, both during and after Employee’s
employment with Company, with respect to the procurement, maintenance and
enforcement of trademarks, copyrights and patents (in the United States and
foreign countries) relating to Developments. 
Employee agrees to sign all papers, including, without limitation,
trademark applications, copyright applications, patent applications,
declarations, oaths, formal assignments, assignments of priority rights and
powers of attorney, which Company may deem necessary or desirable in order to
protect its rights and interests in any Development.

 

                                                                                                6.3                               Company’s Right
to Notify Subsequent Employers.  The Company may do all necessary things, and
take all necessary action, in Company’s discretion, to protect its rights under
this 

 

12

 

Agreement, including without limitation notifying any subsequent
employer, partner or business associate of Employee of the existence of (and
furnishing to any such person) the provisions of this Paragraph 6.

 

                                                                                                6.4                               Other
Agreements.  Employee
hereby represents that Employee is not bound by the terms of any agreement with
any previous employer or other party to refrain from using or disclosing any
trade secret or confidential proprietary information in the course of Employee’s
employment with Company or to refrain from competing directly or indirectly
with the business of such previous employer or any other party.  Employee further represents that Employee’s
performance of all terms of any agreement between Employee and Company and as
an employee of Company or Group Chief Executive-DST International does not and
will not breach any agreement to keep in confidence proprietary information,
knowledge or data acquired by Employee in confidence or in trust prior to
Employee’s employment with Company. 
Employee agrees not to disclose to Company or induce Company to use any
confidential proprietary information or material belonging to any previous
employers or others.

 

                                                                                                6.5                               Non-Solicitation and Non-Competition.

 

                                                                                                                                                6.5.1                     Employee
covenants and agrees that during the Restrictive Period (as defined below)
Employee will not:

 

                                                                                                                                                                                                (a)                                 directly or
indirectly employ or seek to employ any person employed at that time by Company
or otherwise encourage or entice any such person to leave such employment.

 

                                                                                                                                                                                                (b)                                 become employed
by, enter into a consulting arrangement with or otherwise agree to perform
personal services for a Competitor (as defined below);

 

                                                                                                                                                                                                (c)                                  acquire an
ownership interest in a Competitor, other than not more than a 2% equity
interest in a publicly-traded Competitor; or

 

                                                                                                                                                                                                (d)                                 solicit any
customers or vendors of Company on behalf of or for the benefit of a
Competitor.

 

                                                                                                                                                6.5.2                     “Restrictive
Period” means at a minimum the period of Employee’s employment.  It also includes twenty-four (24) months from
termination of employment if Employee is receiving separation pay under
Paragraph 4.5.  Finally, it includes any
period following termination of employment during which unvested awards
received by Employee from Company or DST continue to vest.

 

                                                                                                                                                6.5.3                     “Competitor”
means, unless the DST Board determines otherwise, any person, entity or
organization that sells goods or services in the geographic area described
below, which goods or services are the same or similar to (or may be used as a
substitute for) those sold by a business that (i) is being conducted by
Company in the geographic area at the time in question and (ii) was being
conducted by Company in the geographic area on the date of Employee’s
termination of employment.

 

                                                                                                                                                6.5.4                     The “geographic
area” referred to in this Paragraph 6 shall mean the United States and any
other country in which Company has, at the termination of Employee’s
employment, offices or operations which accounted for 1% or more of the annual
revenues of DST or any of its subsidiaries or joint ventures during the time in
question.

 

 

13

 

                                                                                                6.6                               Security
Clearances.  The Company
may obtain contracts with the United States of America or agencies or
instrumentalities thereof or other governmental agencies or business firms
under the terms of which Company and its employees will be required to comply
with certain security regulations imposed by the United States Government or an
agency thereof or other governmental agencies or business firms.  In the event Company obtains any such contracts
and if under the terms of such contracts it is necessary for Employee to obtain
security clearances and abide by certain security regulations, Employee agrees
to promptly and diligently apply for any necessary security clearances, to
comply with any and all such regulations, and to make every reasonable effort
to maintain Employee’s continued qualifications for all security clearances
appropriate or necessary to the performance of duties properly assigned to
Employee pursuant hereto.

 

                                                                                                6.7                               Remedies.  Employee agrees that the restrictions
contained in this Paragraph 6 are necessary for protection of the business of
Company and that unauthorized disclosure of any of the Proprietary Information
or other violation of this Paragraph 6 would cause irreparable injury to
Company not adequately remediable in damages. 
Employee agrees that any breach of his obligations under this Paragraph
6 shall, in addition to any other relief to which Company may be entitled,
entitle Company to temporary, preliminary and final injunctive relief against
further breach of such obligations, without the posting of any bond. The
existence of any claim or cause of action on the part of Employee against
Company, its successors or assigns, whether arising an agreement between Employee
and Company or otherwise, shall in no way constitute a defense to the
enforcement of these provisions. The Restrictive Period shall be extended in an
amount which equals the time period during which Employee is in violation of
any of the provisions hereof.

 

                                                7.                                      CODE SECTION 409A.  In the event any payment or provision of a
benefit hereunder would trigger excise tax, interest or other penalties under
Internal Revenue Code Section 409A (“409A Penalties”) (a) if
postponement of such payment or provision would avoid 409A Penalties, such
payment or provision will be postponed and made the earliest date it can be
made without triggering 409A Penalties, and (b) if postponement of such
payment or provision would not avoid 409A Penalties, the parties agree to amend
the Agreement to provide an alternative benefit of substantially equivalent
value that would not be subject to 409A Penalties.

 

                                                8.                                      NOTICES.  All notices and other communications provided
for herein that one party intends to give to the other party shall be in
writing and shall be considered given when mailed or couriered, return receipt
requested, or personally delivered, either to the party or at the addresses set
forth below (or to such other address as a party shall designate by notice
hereunder):

 

	
   

  	
  If to Company:

  	
   

  
	
   

  	
  Thomas McDonnell,
  President

  	
   

  
	
   

  	
  DST Technologies

  	
   

  
	
   

  	
  333 W. 11th , 5th
  Floor

  	
   

  
	
   

  	
  Kansas City, MO 64105

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  cc:

  	
   

  
	
   

  	
  Randall D. Young

  	
   

  
	
   

  	
  General Counsel

  	
   

  
	
   

  	
  DST Systems, Inc.

  	
   

  
	
   

  	
  333 W. 11th, 5th Floor

  	
   

  
	
   

  	
  Kansas City, MO 64105

  	
   

  

 

 

14

 

	
   

  	
  If to Employee:

  	
   

  
	
   

  	
  20 Langford Place

  	
   

  
	
   

  	
  St. John’s Wood

  	
   

  
	
   

  	
  London, UK NW80LL

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

                                                9.                                      AMENDMENTS.  This Agreement may be amended, modified or
superseded only by a written instrument executed by both of the parties hereto.

 

                                                10.                               BINDING
EFFECT.  This Agreement shall inure to
the benefit of and shall be binding upon Company and Employee and (other than
the provisions of Paragraph 6) on their respective heirs, executors, personal
representatives, successors and permitted assigns.

 

                                                11.                               ASSIGNABILITY.  This Agreement shall not be assigned, in
whole or in part, by either party, without the prior written consent of the
other party; provided, however, that this Agreement shall be deemed assigned,
with no consent required, to any Company, DST International or DST subsidiary
or affiliate to whose employ Employee may be transferred.

 

                                                12.                               GOVERNING
LAW.  This Agreement shall be governed by
the laws of the State of Missouri without regard to its conflicts of law
principles.

 

                                                13.                               ENTIRE
AGREEMENT.  This Agreement contains the
entire Agreement between the parties relative to its subject matter,
superseding all prior agreements or understandings of the parties relating
hereto.

 

                                                14.                               WAIVER.  Any term or provision of this Agreement may
be waived in writing at any time by the party entitled to the benefit thereof.
The failure of either party at any time to require performance of any provision
of this Agreement shall not affect such party’s right at a later time to
enforce such provision. No consent or waiver by either party to any default or
to any breach of a condition or term in this Agreement shall be deemed or
construed to be a consent or waiver to any other breach or default.

 

                                                15.                               INVALIDITY OF
PORTION OF AGREEMENT.  If any provision
of this Agreement or the application thereof to either party shall be invalid
or unenforceable to any extent, the remainder of this Agreement shall not be
affected thereby and shall be enforceable to the fullest extent of the law.

 

                                                16.                               SIGNING
BONUS.  Company shall pay Employee a
one-time signing bonus of Five Hundred Thousand and no/100’s Dollars ($500,000)
for commencing employment.  If within
twenty-four (24) months of the Effective Date (“Signing Bonus Period”), Company
shall terminate Employee for Cause or Employee shall notify Company that he
will voluntarily terminate employment, Employee shall reimburse Company for a prorata portion of the signing bonus based
on the number of days remaining in the Signing Bonus Period after the date of termination
without Cause or Employee’s notice.

 

                                                17.                               SURVIVAL.  The parties acknowledge and agree that their
obligations under Paragraphs 4 through 17 of this Agreement survive the
termination of this Agreement and continue after the termination of the employment
relationship between Employee and Company; provided, however, that for
obligations set forth in any of such Paragraphs that are limited in time, the
time limitations shall apply.

 

 

15

 

                                                IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement
on the date stated above and effective as stated herein.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Thomas Abraham

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name: 

  	
  Thomas Abraham

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  DST TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Thomas McDonnell

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Thomas McDonnell

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  President

  

 

16

 

EXHIBIT A

RESTRICTED STOCK TERMS AND CONDITIONS

 

1.                                      Restriction Period.  Subject to the early lapsing and forfeiture
provisions set forth below, the restrictions shall lapse January 31, 2010.

 

2.                                      Early Lapsing of Restrictions

 

                                                ·                                          The restrictions shall lapse earlier upon

 

                                                                                                ·                                          Employee’s disability (as defined in Committee rules)

                                                                                                ·                                          Employee’s death

                                                                                                ·                                          a termination without cause of Employee’s employment on the date of and
in connection with a business unit divesture (which is a transaction resulting
in a group of employees being terminated).

 

                                                ·                                          If Employee reaches age 59 1/2 and retires, or if Employee’s employment
is terminated without cause as part of a reduction in force (which is a
termination of employment of at least ten individuals under a single plan of
reduction), the restrictions will lapse for a pro-rated number of shares (“Eligible
Shares”), based upon the number of months during the restriction period that
Employee worked prior to such retirement or termination of employment

 

                                                ·                                          In the event of a Change in Control, as defined in the 2005 Equity
Incentive Plan as in effect on the Grant Date or as thereafter amended, the
restrictions will lapse on the Eligible Shares (as defined above); subsequent
to a Change in Control, the restrictions will lapse on the remaining shares on
the earlier of (a) the date that Employee is terminated without cause or
resigns for good cause, or (b) the end of the restriction period.

 

3.                                      Forfeiture of Shares.  Except as provided above, the shares shall be
forfeited to the Company without the payment of consideration upon termination
of employment (including forfeiture of non-Eligible Shares upon retirement).

 

4.                                      Restrictions. 
Prior to the release of restrictions, the shares of restricted stock may
not be sold, exchanged, transferred, pledged, hypothecated, or otherwise
disposed of by Employee (except that Employee may gift such shares to a spouse,
child, step-child, grandchild, parent or sibling, or legal dependent of
Employee or to a trust of which the beneficiary or beneficiaries of the corpus
and the income shall be either such a person or Employee, provided that the
restricted stock so given shall remain subject to the restrictions, obligations
and conditions described in the award agreement).

 

5.                                      Award Agreement.  The grant of shares is subject to Employee’s
execution of an award agreement, which shall contain such non-compete,
non-disclosure and non-solicitation provisions and remedies for violation as
are determined by the General Counsel.

 

17

 

EXHIBIT B

EXPATRIATE ASSIGNMENT DETAIL

 

	
  Salary:

  	
   

  	
  Quarterly
  adjustments to salary be made at the end of each quarter to Base Salary for
  all pay periods ending in the subsequent quarter based on the U.S.
  dollars/pounds conversion ration of the last day of the quarter.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Housing/Utility

  Allowance:

  	
   

  	
  U.S.
  $240,000 per year. Company to review this allowance annually. Adjustments may
  be made based on U.S. dollars/pounds conversion. If housing in place as of
  the Effective Date becomes unavailable, or the rent rises substantially,
  Employee and Company may renegotiate the allowance in good faith or make
  other arrangements.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Education:

  	
   

  	
  Company
  to pay the American School in London for tuition costs for Employee’s three
  children.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Home
  Leave:

  	
   

  	
  Company
  to reimburse Employee for one business class trip per annum for 5 people from
  London to New York City and, for such trip, for transportation expenses
  between the airports in London and New York and Employee residences in those
  cities.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  US
  Property:

  	
   

  	
  Company
  to reimburse Employee for renter’s insurance for reasonable coverage of
  possessions kept in London residence.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Company
  to reimburse Employee for property oversight/storage of personal goods in New
  York.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tax
  Preparation:

  	
   

  	
  Company
  to pay PricewaterhouseCoopers to prepare Employee’s state and federal income
  tax returns. In the event PricewaterhouseCoopers declines to prepare the
  return, Company will arrange for tax preparation with a Big 4 accounting
  firm.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Goods
  and Services

  Allowance:

  	
   

  	
  Employee to receive a Goods and Services
  Allowance to cover the difference in the cost of goods and services between
  the U.S. and the U.K.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The
  initial Goods and Services allowance, based on a family of five, will be
  $5,499 per month. The Efficient Purchaser Index provided by Organizational
  Resource Counselors is used to determine the monthly amount that is allocated
  or not allocated due to a favorable exchange rate or market. The ORC index
  compares costs in the home country to costs in the assignment location.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The
  Goods and Services allowance will be reviewed annually. If, upon review, the
  allowance is a difference of 5% or greater (either up or down), Company will
  notify Employeee of the change in allowance. This review may result in the
  increase of the allowance or the ceasing of the allowance depending upon the
  cost-of-living index.

  

 

18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]