Document:

ex10-21

 

Exhibit 10.21

Separation Agreement and General Release

     This Separation Agreement and General Release (hereinafter “Agreement”) is
entered into by and between Advanced Switching Communications, Inc. (referred
to as “the Company”) and Larry Kraft (referred to as “Employee”), who are
collectively referred to herein as the “Parties.”

     WHEREAS, the Parties now desire and agree to forever sever their
employment relationship and to fully and finally resolve any and all existing
or potential issues, claims, causes of action, grievances and disputes without
any admission of liability or finding or admission that any of Employee’s
rights, under any statute, claim or otherwise, were in any way violated. In
consideration of the mutual promises contained herein, and other good and
valuable consideration as hereinafter recited, the receipt and adequacy of
which is hereby acknowledged, the Parties, intending to be legally bound, agree
as follows:

     1.     Employee notified the Company of his intent to resign on January 18,
2002 (the “Notification Date”) and that his resignation from the Company would
be effective on February 1, 2002 (the “Resignation Date”). From the
Notification Date through the Resignation Date, Employee agrees to provide
transitional services as they may be reasonably requested by the Company.
Employee’s employment at the Company will end on the Resignation Date.
Employee recognizes that for purposes of the continuation coverage requirements
of group health plans under the Consolidated Omnibus Budget Reconciliation Act
of 1985 (COBRA), as amended, and the group health provisions of any applicable
state or local law, a “qualifying event” occurs on Employee’s Resignation Date.

     2.     In exchange for the promises made by Employee herein and if Employee
executes and does not revoke this Agreement, the Company agrees to pay to
Employee an amount equal to Employee’s base pay (i.e., Employee’s monthly
salary) that Employee would have earned from February 2, 2002, to July 31, 2002
(the “Guaranteed Severance Period”), less all lawful deductions, which shall be
paid to Employee in accordance with the Company’s normal payroll schedule over
the period. The Company agrees to begin making the Guaranteed Severance
payments to Employee within fourteen (14) days after the “Effective Date,” as
defined in paragraph 15.

     3.     Employee agrees that on or before the Resignation Date, he will
surrender to the Company every item and every document in Employee’s possession
or control that is the Company’s property (including but not limited to keys,
records, computers, peripherals, computer files and disks, notes, memoranda,
models, inventory and equipment) or contains Company information, in whatever
form. Employee acknowledges and stipulates that all of the Company’s electronic
and telephonic communication systems, computers and other business equipment
including, but not limited to, computer systems, data bases, phone mail,
modems, e-mail, Internet access, Web sites, fax machines, techniques,
processes, formulas, mask works, source codes,

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programs, semiconductor chips, processors, memories, disc drives, tape
heads, computer terminals, keyboards, storage devices, printers and optical
character recognition devices, and any and all components, devices, techniques
or circuitry incorporated in any of the above and similar business devices
(herein collectively referred to as “Electronic Equipment” ), are the sole
property of the Company, and that any information transmitted by, received
from, or stored in such Electronic Equipment is also the Company’s property.
Employee agrees that, after his separation of employment from the Company, he
shall not, directly or indirectly, for himself or for any other person or
entity, use, access, copy, or retrieve, or attempt to use, access, copy, or
retrieve, any of the Company’s Electronic Equipment or any information on the
Company’s Electronic Equipment.

     4.     All reference requests from Employee’s prospective employers shall be
made in writing addressed to the attention of Laurie Foglesong, Director of
Human Resources. In response to such requests, the Department of Human
Resources will provide to prospective employers Employee’s dates of employment
and job title. The Department of Human Resources will not provide any
additional information to prospective employers regarding Employee’s employment
without Employee’s written consent.

     5.     The parties acknowledge that Employee’s entitlement to stock options of
the Company is governed by one or more stock option agreements (the “Option
Agreements”). The procedures and time restrictions for the exercise of vested
options are set forth in the Option Agreements. All unvested options
previously granted to Employee shall expire and terminate on the Resignation
Date.

     6.     Employee agrees that he is not otherwise entitled to the severance
payments from the Company described in Paragraph 2 above during the Guaranteed
Severance Period. Employee understands that by signing this Agreement, he is
electing to receive those payments under the terms set forth in this Agreement.

     7.     As of the date Employee signs this Agreement, Employee represents that
he has been paid for all hours worked through the date of his signature and has
not suffered any on-the-job injury as of the date of his signature for which he
has not already filed a claim. As a part of this Agreement, the Company agrees
that all vacation pay, commissions, or overtime pay (if applicable) that he is
owed will be paid on February 15, 2002.

     8.     Employee agrees that, in consideration of the additional severance
payments described in paragraph 2 herein, he will, and hereby does, forever and
irrevocably release and discharge the Company, and its past, present and
future, affiliates, parents, subsidiaries, divisions, predecessors, purchasers,
assigns, representatives and successors, and its and their officers, directors,
employees, independent contractors, agents, (herein collectively referred to as
the “Releasees”) from any and all claims, causes of action, damages, defenses,
promises, judgments, and liabilities, known or unknown, whatsoever which he now
has, has had, or may have, whether the same be at law, in equity, or mixed, in
any way arising from or relating to any act, occurrence, or

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transaction before the date of this Agreement, including without
limitation his employment and separation of employment from the Company and any
and all tax related liabilities that may result from this Agreement. Employee
expressly acknowledges that this General Release includes, but is not limited
to, Employee’s intent to release the Company from tort and contract claims,
wrongful discharge claims, statutory claims, compensation claims, and claims of
discrimination or harassment based on age, race, color, sex, religion,
handicap, disability, national origin, ancestry, citizenship, marital status,
retaliation or any claim under Title VII of the Civil Rights Acts of 1964 and
1991 as amended (42 U.S.C. §§ 2000e et seq.), Employee Retirement Income
Security Act (29 U.S.C. §§ 1001 et seq.), the Consolidated Omnibus Budget
Reconciliation Act of 1985 (29 U.S.C. §§ 1161 et seq.), the Americans With
Disabilities Act (42 U.S.C. §§ 12101 et seq.), the Rehabilitation Act of 1973
(29 U.S.C. §§ 701 et seq.), the Family and Medical Leave Act (29 U.S.C. §§ 2601
et seq.), the Worker Adjustment and Retraining Notification Act (29 U.S.C. §§
2101 et seq), and any other federal, state or local law prohibiting employment
discrimination or relating to the employment relationship. This release does
not include any claims that cannot be waived by law. It is agreed and
understood that this release is a GENERAL RELEASE to be construed in the
broadest possible manner consistent with applicable law.

     9.     Employee agrees not to make or file any legal claims of any kind
against the Company or any of the Releasees in any federal, state or municipal
court, administrative agency or other tribunal concerning any claim that he/she
has released in this Agreement. Employee further agrees that no legal claims
have already been made or filed by or on behalf of Employee regarding any
claims that have been released by this Agreement. Employee further agrees and
covenants not to assist or encourage others in making or filing any legal
claims of any kind in any federal, state or municipal court against the Company
or any of the Releasees. If any administrative agency or other group files a
legal claim of any kind on Employee’s behalf against the Company or any of the
Releasees concerning any claim that Employee has released in this Agreement,
Employee waives any right to monetary recovery.

     10.     Employee agrees that the additional severance payments provided for in
this Agreement shall not be construed as an admission of any wrongdoing or
liability on the part of the Company and that any such wrongdoing or liability
is expressly denied. Employee represents that he has not assigned or
transferred to any person or entity any claim against the Company and that any
such claim is not assignable or transferable. The Parties agree that this
Agreement shall be governed by Virginia law, and that the state and/or federal
courts in Virginia shall have sole and exclusive jurisdiction and venue to hear
any dispute concerning this Agreement. If any terms of the provisions of this
Agreement are found null, void or inoperative, for any reason, the remaining
provisions will remain in full force and effect. The language of all parts of
this Agreement shall in all cases be construed as a whole, according to its
fair meaning, and not strictly for or against either of the Parties.

     11.     The Parties agree that this Agreement contains and comprises the
entire agreement and understanding of the Parties, that there are no additional
promises or terms

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of the Agreement among the Parties other than those contained herein, and
that this Agreement shall not be modified except in a writing signed by each of
the Parties hereto.

     This Agreement cancels and supersedes any prior employment agreements or
arrangements that Employee may have entered into with the Company or any of the
Releasees, except that the terms of paragraphs 6 and 7 of Employee’s Key
Employee Employment Agreement and the Option Agreement(s) (to the extent
applicable for vested options) entered into by Employee and Company shall
remain and continue in effect in accordance with the terms thereof.

     12.     Employee agrees that he will not disclose or cause to be disclosed any
negative, adverse or derogatory comments or information about the Company,
about any product or service provided by the Company, or about the Company’s
prospects for the future, except as required by law. Furthermore, Employee
hereby represents to the Company that he has made no such communication to any
public official, to any person associated with the media, or to any other
person or entity. Employee acknowledges that the Company relies upon this
representation in agreeing to enter into this Agreement.

     13.     Employee represents that he has read this Agreement, that he
understands all of its terms, that in executing this Agreement he does not rely
and has not relied upon any representation or statements made by any of the
Company’s agents, representatives, or attorneys with regard to the subject
matter, basis, or effect of the Agreement, and that he enters into this
Agreement voluntarily, of his own free will, without any duress and with
knowledge of its meaning and effect. Employee acknowledges that he has had a
reasonable amount of time in which to consult an attorney prior to executing
the Agreement, if he so chooses.

     14.     Employee understands that he/she has seven (7) days from the date of
his/her receipt of this Agreement, which was January 18, 2002, to sign it, and
that he/she may unilaterally waive this period at his/her election. Employee’s
signature on this Agreement constitutes an express waiver of the seven (7) day
period if affixed prior to the expiration of that period. By signing this
Agreement, Employee expressly acknowledges that his/her decision to sign this
Agreement was knowing and voluntary and of his/her own free will. The Parties
agree that any revisions or modifications to this Agreement, whether material
or immaterial, will not and did not restart this time period.

     15.     This Agreement shall become effective on the date on which the
Employee signs it and delivers it to Sherry Rhodes or Laurie Foglesong.

     16.     Employee also acknowledges that the Company may require him to provide
assistance to the Company in the investigation and/or defense of potential or
actual claims, charges or legal actions against the Company and agrees to
provide the requested assistance, which may include, but is not limited to,
interview(s), affidavit(s) and/or in person testimony. Employee acknowledges
that such requests may come during and/or after his Guaranteed Severance Period
and agrees to provide the assistance as and when required on a reasonable
basis. If Employee no longer resides in the Washington, D.C. metropolitan area
when his assistance is required and it is necessary

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that he be present in the metropolitan area to provide that assistance,
the Company will pay his reasonable travel and related expenses for such period
as his presence is required and will compensate him on a reasonable basis for
his time spent rendering such assistance.

     IN WITNESS WHEREOF, the parties have duly executed this Agreement as of
the day and year first written above.

	 	 	 
	Employee Signature/Printed Name	 	
Date
	 
	 
	/s/ Lawrence A. Kraft	 	1/24/02
	
	 	 
	Lawrence A. Kraft	 	 
	 
	 
	For: Advanced Switching Communications, Inc.	 	
Date
	 
	 
	/s/ Sherry L. Rhodes	 	1/24/02
	
	 	 
	Sherry L. Rhodes	 	 
	VP, General
Counsel
& Secretary	 	 

-5-ex10-22

 

Exhibit 10.22

February 5, 2002

Harry J. D’Andrea

26 River Falls Ct.

Potomac, MD 20854

Dear Harry:

Regretfully, the Board of Directors has elected to cease the operations of the
company. As a result, your position with the Company is being terminated,
effective April 6, 2002. Effective today, you will be placed on paid
administrative leave until that time, although you may be required to report to
work and perform work during this period depending upon the business necessity.
You will continue to be paid at your current pay rate, with benefits and
service credit through April 6, 2002, when your employment with ASC will
terminate. Pursuant to your employment agreement, you are entitled to a lump
sum payment equal to your annual base salary, less statutory withholdings, no
later than May 6, 2002.

	•	 	Our records indicate that your vacation balance as of your termination
date will be 145.58 hours. Subject to confirmation of this balance,
you will be paid $13,088.21 for your accrued and unused vacation
hours. Your vacation pay will be included with your final payroll
check. This payment will be contingent on your return of any company
property in your possession.
	 
	•	 	Your current medical, dental and vision coverage will end April 30,
2002. You will be eligible under COBRA to elect an extension of your
medical coverage for up to two months (May and June 2002). Effective
July 1, 2002, you will no longer be eligible to continue this benefit
under COBRA due to the fact that ASC will no longer maintain a group
health insurance plan. Enclosed, please find additional benefit
information, including contact information for health insurance
providers who can review options available to you for converting to an
individual medical plan.
	 
	•	 	Your Employer-Sponsored Group Life Insurance, Voluntary Life
Insurance, Short and Long Term Disability will cease as of April 30,
2002. You will have the option to convert the employer paid portion
of the Life insurance to an individual Whole Life policy with the
Guardian. If you currently participate in the Optional Life Plan
(Employee Paid), you will have the option to “port” the plan to a term
life policy at discounted rates through The Guardian. There are no
continuation options for Short Term or Long Term Disability.

 

	•	 	The Flexible Spending Account program will cease as of April 6, 2002.
Your last spending account payroll deduction will be processed in your
April 15, 2002 paycheck. You will only be eligible to claim expenses
that you incurred prior to April 6, 2002. Participants should submit
claims no later than 90 days following their termination date.
	 
	•	 	If you are a participant in the company’s 401(k) plan, you will need
to decide the appropriate disposition of any 401(k) funds you may
have. You will receive information directly from Cigna concerning
401(k) plan rollover procedures. Your 401(k) payroll deduction will
cease as of your termination date, unless you notify Laurie Foglesong
in Human Resources that you would like to change your election or
discontinue your participation sooner.
	 
	•	 	Enclosed you will find a Personnel Option Status statement which
provides a detailed summary of the status of each of your stock
options. You must exercise any vested, unexercised options under the
1998 Nonqualified Stock Option Plan, the Second 1998 Nonqualified
Stock Option Plan and/or the 1999 Nonqualified Stock Option Plan by
April 6, 2002 or you will forfeit these options. You must exercise
any vested, unexercised options under the 2000 Stock Incentive Plan by
July 5, 2002. Please contact Laurie Foglesong in Human Resources if
you wish to exercise your options. All unvested options will be
forfeited upon your termination date.
	 
	•	 	You are required to return all Company property currently in your
possession. We request that you return these items to your department
head before you leave today. Remote office employees should schedule
a mutually agreeable time with Laurie Foglesong in Human Resources to
return these items.
	 
	•	 	The Company will cancel your American Express corporate card, if
applicable, effective February 5, 2002. You are responsible for any
outstanding balance on your American Express corporate card. If have
any outstanding business-related expenses, please submit a final
expense report to Cindy Poling. Upon receipt of this information,
Advanced Switching Communications will be able to process your final
expense reimbursement.

Please feel free to contact Laurie Foglesong in Human Resources at
703.288.8145, if you have any questions or concerns with any of the
above-mentioned items.

Again, we regret that it has become necessary to cease operations. Thank you
for your service to ASC, and we wish you every success in your future
endeavors.

Sincerely,

/s/ Sherry Rhodes

Sherry Rhodes

Vice President, General Counsel

	 	 	 
	Enclosure:	 	
ASC Employee Benefit Information

Contact information for Unemployment and other related Agencies

Personnel Option Status Statement

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