Document:

Separation Agreement and General Release

 Exhibit 10.1 
  
 SEPARATION AGREEMENT 
 AND 
 GENERAL RELEASE 
  
 TO: Jeffrey S. Betros 
  
 This Separation Agreement and General Release (the “Agreement”) is executed on the dates given on the signature pages by and between Sunset
Financial Resources, Inc. (“Sunset” or the “Company”) and Jeffrey S. Betros (“Executive,” “you” or “I”). 
  
 RECITALS 
  
 WHEREAS, Sunset and Executive entered into an Employment Agreement dated February 6, 2004 (“Employment Agreement”); and 
  
 WHEREAS, Executive shall resign from Sunset and all of its affiliates
as an officer and as an employee, effective August 31, 2005; and 
  
 WHEREAS, the parties agree that Executive’s separation from employment is the result of a mutual agreement between Executive and Sunset; and 
  
 WHEREAS, Executive and the Company agree to provide each other with a general release of claims as contained herein.

  
 NOW, THEREFORE, in consideration of the foregoing premises and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 I. Separation of Employment 
  
 A. Except as otherwise provided herein, Sunset and Executive hereby agree that Executive’s employment shall be separated as of August 31, 2005
(“Separation Date”) and that neither shall thereafter have any liabilities, rights, duties or obligations to the other party under or in connection with Executive’s employment with the Company, except as provided in this Agreement.

  
 B. Sunset and Executive hereby waive any rights to
prior notification of termination of Executive’s employment. 
  
 C. Executive hereby resigns, effective on the Separation Date, as an officer and employee of Sunset, and as an officer and Secretary, manager, employee or similar functionary of all entities related to Sunset. 
  
 D. Executive and Sunset agree that Executive received two stock option
grants on March 22, 2004: Executive received an ISO grant of 23,076 options at a $13 per share exercise 

  

			
	 	 	  

	 Page 1
	 	EMPLOYEES INITIALS

 
price and of those ISO options, 7,692 have vested as of the Separation Date. Executive also received an NSO grant of 1,924 at a $13 per share exercise price
and of those NSO options, 641 have vested as of the Separation Date. Therefore, Executive and Sunset agree that Executive holds 8,333 vested stock options and 16,667 unvested stock options as of the Separation Date. Pursuant to the terms of the
applicable option agreement, Executive’s unvested stock options shall be forfeited on August 31, 2005 and Executive must exercise his vested options on or before September 30, 2005 or such vested options shall be forfeited. These and all other
terms of Executive’s stock options shall be governed by the terms and conditions of the applicable stock option agreement and plan. 
  
 II. Special Compensation, Benefits and Consideration 
  
 In consideration for Executive’s release of claims, as well as his other promises contained herein, Sunset agrees to provide Executive with the
following benefits: 
  

	 	A.	Sunset agrees to pay to Executive the gross amount of $83,653.89, payable as follows: one payment in the amount of $6,730.77 shall be made on September 9, 2005. Subsequent
payments in the amount of $9,615.39 shall be paid bi-weekly beginning on September 23, 2005 and ending on December 31, 2005 (“Installment Severance Payments”). All payments made pursuant to this Paragraph shall be subject to taxes and
lawful deductions and shall be made in accordance with the Company’s normal payroll practices; and 

  

	 	B.	Provided Executive is in compliance with the terms and conditions of this Agreement, and as further consideration for Executive’s release of claims, Sunset agrees to
waive enforcement of the non-competition provision contained in Section 9(b) of the Employment Agreement; 

  

	 	C.	Sunset agrees to provide Executive with a general release of claims as detailed in Section III(C). 

  
 Executive understands and agrees that the compensation recited in this Section II constitutes the full compensation from
Sunset to Executive, and no other payments are due to Executive. The parties agree that Section 4 (Termination) of the Employment Agreement shall not apply to Executive’s separation and shall have no effect and be unenforceable as of the
Effective Date of this Agreement. 
  
 III. Mutual General Release

  
 A. In return for the consideration referenced in
this Agreement, I, Jeffrey S. Betros, agree to the following: 
  
 I agree, on behalf of myself and all of my heirs or personal representatives, to release Sunset, its parent companies, subsidiaries, all affiliates of each, predecessors and successors, and all of its present or former officers, trust
managers, directors, managers, representatives, employees, agents, attorneys, employee benefit programs, and the trustees, administrators, 

  

			
	 	 	  

	 Page 2
	 	EMPLOYEES INITIALS

 
fiduciaries and insurers of such programs (collectively the “Company Released Parties”), from any and all claims for relief of any kind, whether
known to me or unknown, which in any way arise out of or relate to my employment at Sunset or any of the Company Released Parties, the separation of my employment at Sunset or any of the Company Released Parties, any agreements between Sunset or any
of the Company Released Parties and me, including but not limited to the Employment Agreement, and concerning any set of facts or events occurring at any time up to the Effective Date of this Agreement, including, but not limited to, any and all
claims of discrimination of any kind, and any contractual, tort or other common law claims. This settlement and waiver includes all such claims, whether for breach of contract, quasi-contract, implied contract, quantum meruit, unjust enrichment,
compensation, deferred compensation, equity interest, any tort claims, any and all claims under any applicable federal laws, including, but not limited to, the Age Discrimination in Employment Act, as amended, Title VII of the Civil Rights Act of
1964, as amended, the Civil Rights Act of 1991, 42 U.S.C. § 1981, the Americans with Disabilities Act, as amended, the Equal Pay Act, as amended, the Worker Adjustment and Retraining Notification Act, the Employee Retirement Income Security Act
of 1974, as amended, the Family and Medical Leave Act, as amended, the Fair Labor Standards Act, as amended, the Sarbanes-Oxley Act, or under any applicable state or local laws or ordinances or any other legal restrictions on Sunset’s rights,
including the Florida Civil Rights Act. 
  
 B. I further
agree not to file a suit of any kind against Sunset or any of the Company Released Parties relating to my employment at Sunset or any of the Company Released Parties, the separation thereof, any agreements between Sunset or any of the Company
Released Parties and me, including but not limited to the Employment Agreement, any set of facts or events occurring up to the Effective Date of this Agreement, or to participate voluntarily in any employment-related claim brought by any other party
against Sunset or any of the Company Released Parties. Even if a court rules that I may file a lawsuit against Sunset or any of the Company Released Parties arising from my employment at Sunset or any of the Company Released Parties, or the
separation thereof, or based on any other set of facts or events occurring prior to the Effective Date of this Agreement, I agree not to accept any money damages or any other relief in connection with any such lawsuit. I understand that this
Agreement and General Release effectively waives any right I might have to sue Sunset or any of the Company Released Parties for any claim arising out of my employment at Sunset or any of the Company Released Parties, the separation of my
employment, any agreements between Sunset or the Company Released Parties and me, including but not limited to the Employment Agreement, or based on any other set of facts or events occurring prior to the Effective Date of this Agreement.

  
 However, this release does not waive my rights to enforce this
Agreement. In addition, this release does not give up my rights, if any, to COBRA benefits under the Company’s standard benefit programs applicable to me. Further, this release does not waive my rights to vested 401(k) or pension monies, vested
stock options, my final paycheck, reimbursement of any outstanding business expense amounts (in accordance with Sunset’s existing reimbursement policies) or my rights to indemnification, if any, under Sunset’s declaration of trust or
bylaws. 
  

			
	 	 	  

	 Page 3
	 	EMPLOYEES INITIALS

 C. In return for the consideration referenced in this Agreement, Sunset agrees to the following:

  
 Except as set forth in the last paragraph of this Section,
Sunset agrees, on behalf of itself and all of its parent companies, subsidiaries, affiliates, predecessors and successors, to release Executive and his heirs (collectively the “Executive Released Parties”), from any and all claims for
relief of any kind, whether known to it or unknown, which in any way arise out of or relate to Executive’s employment at Sunset or any of the Company Released Parties, the separation of Executive’ s employment at Sunset or any of the
Company Released Parties, or any agreements between Sunset or any of the Company Released Parties and Executive, including but not limited to the Employment Agreement, and concerning any set of facts or events occurring at any time up to the
Effective Date of this Agreement. 
  
 Except as set forth in the
last paragraph of this Section, Sunset further agrees not to file a suit of any kind against Executive or any of the Executive Released Parties relating to Executive’s employment at Sunset, the separation thereof, any agreements between Sunset
or any of the Company Released Parties and Executive, including but not limited to the Employment Agreement, or to participate voluntarily in any employment-related claim brought by any other party against Executive or any of the Executive Released
Parties. Except as set forth in the last paragraph, even if a court rules that Sunset may file a lawsuit against Executive or any of the Executive Released Parties arising from Executive’s employment at Sunset or any of the Company Released
Parties, or the separation thereof, or based on any other set of facts or events occurring prior to the Effective Date of this Agreement, Sunset agrees not to accept any money damages or any other relief in connection with any such lawsuit. Sunset
understands that this Agreement and General Release effectively waives any right it might have to sue Executive or any of the Executive Released Parties for any claim arising out of Executive’s employment at Sunset or any of the Company
Released Parties, any agreements between Sunset or the Company Released Parties and Executive, including but not limited to the Employment Agreement, or the separation of Executive’s employment, or based on any other set of facts or events
occurring prior to the Effective Date of this Agreement, except as set forth in the last paragraph of this Section. 
  
 Notwithstanding the generality of the foregoing, nothing contained herein shall release the Executive Released Parties from any claim relating to (i) a
breach by Executive of any provision of any agreement that pursuant to the Separation Agreement survives the execution thereof, including but not limited to confidentiality agreements with Sunset or any of its affiliates, (ii) Executive’s
obligations set forth herein, or (iii) Executive’s fraud, willful misconduct or gross negligence. 
  
 IV. Restrictive Covenants and Miscellaneous Provisions 
  
 A. While I understand that I have had such an obligation since I began my employment with Sunset or any of the Released Parties, I confirm that I shall not disclose any of the trade secrets or other
confidential or restricted information of Sunset or any of the Released Parties and shall not make use of such trade secrets or confidential or restricted information in any fashion at any time, including in any future employment, work, task or
business. 
  
 B. I agree to comply at all times after the
Effective Date of this Agreement with all provisions of Section 9 of the Employment Agreement, with the exception of Section 9(b), regardless of the nature of my separation, which provisions include covenants concerning the 

  

			
	 	 	  

	 Page 4
	 	EMPLOYEES INITIALS

 
non-disclosure of confidential information and a prohibition on the inducement or employment of employees, agents, or consultants of the Company. I
acknowledge and agree that Sections 9 (with the exception of Section 9(b)) and 10 of the Employment Agreement shall survive the separation of my employment, regardless of the separation reason and shall survive the execution of this Agreement.

  
 C. I understand and agree that Sunset shall have the
right to and will terminate the Installment Severance Payments and/or sue me for breach of this Agreement if I violate the provisions of Section IV(B), or otherwise fail to comply with this Agreement. I further acknowledge that but for my agreements
to comply with my obligations described in this Section and this Agreement, Sunset would not provide me with the compensation, benefits and consideration set forth in Section II. 
  
 D. The parties agree that Section 4 (Termination) of the Employment Agreement shall not apply to Executive’s
separation and shall have no effect and be unenforceable as of the Effective Date of this Agreement. 
  
 E. I warrant that I have returned to Sunset all company property in my possession, including, but not limited to, originals and copies of all
company files, work product, computer equipment, computer software, cell phones, pagers, corporate credit cards, identification cards, manuals, company documents and company keys. I further agree to cooperate and work with the President Chief
Operating Officer to ensure my compliance with this Section IV(E). 
  
 F. I understand that the short-term disability, long-term disability and life insurance coverage provided by Sunset, if any, will end on August 31, 2005. I also understand that Sunset will not pay for any business-related or other
charges incurred by me after August 31, 2005, unless such expenses are expressly approved in advance by the President and Chief Operating Officer or the Board of Directors of Sunset. I further understand that I will cease to accrue vacation time as
of August 31, 2005. Executive shall be paid for any accrued, unused vacation within fourteen (14) days after the Effective Date of this Agreement. 
  
 G. This Agreement does not constitute an admission of any kind by Sunset, but is simply an accommodation that offers certain extra benefits to
which I would not otherwise be entitled in return for my agreeing to and signing this document. 
  
 H. I agree not to voluntarily make the terms and conditions or the circumstances surrounding this Agreement known to anyone other than an attorney
and/or tax consultant from whom I receive counseling, or, if I am married, to my spouse, or except as otherwise required by law. I acknowledge that any such person must agree not to further disclose the terms of this Agreement. 
  
 I. Sunset agrees not to voluntarily make the terms and conditions or
the circumstances surrounding this Agreement known to anyone other than its attorneys and/or tax consultants from whom it receives counseling, or except as otherwise required by law or the rules of the New York Stock Exchange. 
  

			
	 	 	  

	 Page 5
	 	EMPLOYEES INITIALS

 J. I agree not to make any statements that disparage the reputation of Sunset or any of the
Released Parties, or their services. I further agree not to apply for or accept employment with Sunset at any time in the future. I further agree not to take any action to interfere with or damage the Company’s relationship with its vendors,
lenders, brokers and/or clients. I agree that any breach or violation of this non-disparagement and non-interference provision shall entitle Sunset to terminate this Agreement, the Installment Severance Payments and/or sue me on this Agreement for
the immediate recovery of any damages caused by such breach. 
  
 K. Sunset agrees not to make any statements that disparage the reputation of Executive. Sunset agrees that any breach or violation of this non-disparagement provision shall entitle Executive to sue Sunset on this Agreement for the
immediate recovery of any damages caused by such breach. 
  
 L. The payments identified in Section II above are gross amounts and will be subject to taxes and lawful deductions, if any. 
  
 M. I acknowledge that in the course of my employment with the Company, I have gained knowledge and experience and/or was a witness to events and
circumstances that may arise in the Company’s defense or prosecution of subsequent proceedings. I agree to cooperate fully with the Company, including without limitation providing truthful testimony, and to appear upon the Company’s
reasonable request as a witness and/or consultant in defending or prosecuting claims of all kinds, including but not limited to any litigation, administrative actions or arbitrations, at the Company’s expense. 
  
 N. The venue for the litigation of any dispute arising out of this
Agreement shall be a court of competent jurisdiction in Duval County, Florida. If either party files a lawsuit in state court arising out of this Agreement, the other party may remove the lawsuit to federal court to the extent jurisdiction exists.
Florida law shall govern the interpretation and enforcement of this Agreement. 
  
 O. I am entering into this Agreement freely and voluntarily. I have carefully read and understand all of the provisions of this Agreement. I understand that it sets forth the entire agreement between me and the
Company and I represent that no other statements, promises, or commitments of any kind, written or oral, have been made to me by the Company, or any of its agents, to cause me to accept it. I acknowledge that I have been advised to consult legal
counsel concerning this Agreement prior to signing the Agreement, and that I have had sufficient opportunity to do so. I understand that I may have up to twenty-one (21) days from the date of this letter to consider this Agreement. I understand that
if I sign this Agreement, I will then have seven (7) days to cancel it if I so choose. I may cancel this Agreement by delivering a written notice of cancellation to the Board of Directors, Sunset Financial Resources, Inc., 10245 Centurion Parkway,
Suite 305, Jacksonville, Florida 32256. However, if I elect to cancel this Agreement, I understand I will not be entitled to any of the benefits, compensation, or other consideration referenced in this Agreement. I realize this Agreement is not
effective or enforceable until the seven-day period expires without revocation. I understand that this Agreement will not become effective until the eighth day after I sign the Agreement without revocation (the “Effective Date”). I
understand that Sunset will have no duty to pay me or provide me with the compensation and benefits listed in Section II until the Effective Date of this Agreement. 
  

			
	 	 	  

	 Page 6
	 	EMPLOYEES INITIALS

 I acknowledge acceptance of this Agreement by my signature below: 
  

			
	 /s/ Jeffrey S. Betros

	  	 9/7/05

	Jeffrey S. Betros	  	Date

  
 Agreed to and accepted on behalf of
Sunset Financial Resources, Inc.: 
  

			
	 By:
	 	 /s/ George O. Deehan

	 Name:
	 	George O. Deehan
	 Title:
	 	President
	 Date:
	 	9/08/05

  

			
	 	 	  

	 Page 7
	 	EMPLOYEES INITIALSEmployment Offer Letter Agreement

 Exhibit 10.1 
  
 September 8, 2005  
  
 Mr. Harold L. Covert 
  
 Dear Hal: 
  
 On behalf of Openwave Systems Inc.
(the “Company”), we are pleased to confirm to you in writing the offer that we previously discussed with you to serve as Executive Vice President and Chief Financial Officer, with duties and responsibilities established by Dave
Peterschmidt that are commensurate with that position. Your position will be located in our Redwood City, California headquarters. The terms of the offer are set forth below, as supplemented by the employment terms set forth in the Company’s
standard form of Executive Change of Control Severance Agreement, Confidentiality and Invention Assignment Agreement (“Confidentiality Agreement”), and Indemnification Agreement for Executive Officers and Directors, copies of which are
attached to this letter, and referred to, collectively with this letter, as the “Executive Offer Documents”. Except as otherwise set forth below, these terms shall be effective as of September 12, 2005 (“Effective Date”). We
anticipate that you will begin employment with Openwave on September 12, 2005 and that you will officially assume the position of Chief Financial Officer effective October 1, 2005. 
  
 1. Cash Compensation. 
  
 Your monthly base salary will be $29,166.66 per month or $350,000 on an annualized basis. In addition, you will receive a sign-on bonus equal to $150,000; provided,
however, that you agree to pay back a pro-rated portion of the sign-on bonus should you voluntarily terminate your employment prior to the twelve (12) month anniversary of the Effective Date. 
  
 You shall be eligible for a semi-annual incentive cash award from the Company under the
Company’s Corporate Incentive Plan (“CIP”), based upon a target for each semi-annual period which shall be one hundred percent (100%) of your base salary actually earned for the six month performance period (i.e., $175,000 based upon
your initial base salary). This amount will be pro-rated for your initial semi-annual period. Under the terms of the CIP for calendar year 2005, your actual annual incentive cash award may be below, at, or above target (up to a maximum of 150% of
your target, as pro-rated if applicable) and shall be determined based upon the Company’s achievement level against selected financial and performance objectives. The terms of the CIP, including the financial and performance objectives for the
Company, shall be established for each performance period by the Compensation Committee in consultation with the Board of Directors of the Company.  

 Mr. Harold L. Covert 
 Page 2

  
 2. Equity Awards. 
  
 Subject to the approval of the Compensation Committee, you will be granted (a) an option to
purchase three hundred thousand (300,000) shares of Company common stock (the “Option”) and (b) a restricted stock purchase right for one hundred thousand (100,000) shares of Company common stock (the “Restricted Stock Award”).
The Option shall have an exercise price equal to the fair market value of the Company common stock on the date of grant (which shall be determined in the discretion of the Compensation Committee) and shall vest over a four year period, with twenty
five percent (25%) of the shares subject to the Option vesting on the first anniversary of the Effective Date, and an additional one forty-eighth (1/48th) of the shares subject to the Option vesting each calendar month thereafter on the same day of such subsequent calendar month. The Restricted Stock Award shall vest over four years in four equal
installments of 25,000 shares each on the first four anniversaries of the Effective Date. All vesting for the Option and the Restricted Stock Award shall be contingent upon your continued employment with the Company on the applicable vesting date.
Except as otherwise expressly set forth in this letter agreement, the Option and the Restricted Stock Award will be granted under and subject to the terms of the Company’s standard form of non-qualified stock option agreement and restricted
stock purchase agreement. 
  
 You should be aware that you will incur federal and
state income taxes as a result of your receipt of or vesting in the Restricted Stock Award, with the timing of such income contingent upon whether you timely make an election under Section 83(b) of the Internal Revenue Code of 1986, as amended (an
“83(b) election”). It is entirely your choice whether you make an 83(b) election and you should consult with your own tax and financial advisors in that regard. The Company will not provide you with any assistance in paying your taxes on
the Restricted Stock Award, regardless of whether or not you make an 83(b) election. If your employment is terminated other than for Cause and not under circumstances that would trigger the application of your Executive Change of Control Severance
Agreement, you shall be entitled to the severance and benefits described in the Openwave Executive Severance Policy. 
  
 3. Additional Terms. 
  
 You should be aware that your employment with the Company is for no specified period and constitutes “at will” employment. As a result, you are free to resign at any time, for any reason or for no reason.
Similarly, the Company is free to conclude its employment relationship with you at any time, with or without cause, for any reason or no reason. 
  
 The terms of this offer letter may only be changed by written agreement, although the Company may from time to time, in its sole discretion, adjust the salaries and
benefits paid to you and its other employees. This offer letter will be governed by the internal laws of the State of California. 

 Mr. Harold L. Covert 
 Page 3

  
 Please review the terms of this letter and the Executive Offer Documents to
make sure they are consistent with your understanding. Should you have any questions with regard to any of the items indicated above or the terms of the Executive Offer Documents, please contact Tim Burch, the Company’s Senior Vice President,
Human Resources. Kindly indicate your agreement with the terms contained in this offer letter and the Executive Offer Documents by signing and returning the original signed offer letter and the Executive Offer Documents as appropriate so that they
are received by Mr. Burch no later than September 15, 2005. 
  

	
	
	 /s/ David Peterschmidt

	David Peterschmidt
	President & CEO

  

			
	Agreed and Accepted:	 	 
		
	 /s/ Harold L. Covert

	 	 September 12, 2005

	Harold L. Covert	 	Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]