Document:

Exhibit 10.1

 

 

SEPARATION AGREEMENT AND RELEASE

 

This
Separation Agreement and Release (“Agreement”) is made by and between SeeBeyond
Technology Corporation (the “Company”), and Thor Culverhouse (“Employee”).

 

WHEREAS,
Employee was employed by the Company as Senior Vice President, North America
Sales;

 

WHEREAS, the
Company and Employee have entered into a Employment Agreement and
Handbook Agreement (the “Confidentiality Agreement”);

 

WHEREAS,
the Company and Employee have agreed to end the employment relationship
effective March 31, 2005 (this date shall be referred to as “the
Separation Date”);

 

WHEREAS,
Employee acknowledges that he has been exposed to and is privy to confidential
information and numerous Company trade secrets including, but not limited to, those
related to the development and implementation of ICAN Suite 5.0. Employee
further acknowledges that the disclosure of said confidential information and
trade secrets could cause permanent and irreparable damage to the Company.

 

NOW
THEREFORE, in consideration of the mutual promises made herein, the Company and
Employee (collectively referred to as “the Parties”) hereby agree as follows:

 

1.             Consideration.  The
Company and employee agree as follows:

 

A.           On the Separation Date, employee was
separated from the company and received all compensation due to him, including
his final paycheck and accrued but unused vacation pay and no further payments
are due to employee for wages and or reimbursable expenses incurred prior to
the Separation Date;

B.             Employee’s benefits, including medical and
dental insurance, will remain if full force and effect up to and including September 30,
2005.  Thereafter, employee will have the
ability to elect COBRA if he so elects;

C.             Upon receipt of this signed Separation
Agreement and Release, and return of all Company property (including, but not
limited to, computers, cell phones, AMEX Cards, keys, and the like) Employee
will be entitled to receive: $200,000.00 less standard withholdings, payable as
follows: the $200,000.00 will be paid over a six (6) month period. This
six (6) month period shall be referred to as the “Severance Period”. Such
payment will be processed in the ordinary course of business, on the
established payroll dates of the Company, beginning on the first regularly
scheduled payroll period after the revocation periods set forth in Section 4
herein have expired.  The payment of the
$200,000.00 shall be treated as wages. In addition, Employee will receive a
payment in the amount of $45,981.00, representing Employee’s Q1 2005
Bonus/Commission compensation calculated in accordance with Exhibit A (“Q1
2005 Bonus/Commission Payment”).  The Q1
2005 Bonus/Commission Payment will be paid through the established payroll of
the Company on April 30, 2005;

 

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D.            Employee’s unvested stock options will be
canceled on the Separation Date pursuant to the terms and conditions set forth
in the SeeBeyond Stock Option Plan. 
Employee will have 90 days from the end of the Severance Period to
exercise any stock options (if any) that were vested and outstanding as of the
Separation Date; thereafter, all such stock options will be cancelled;

 

Throughout
the Severance Period, Employee agrees to cooperate with the Company in the
event the Company needs information and/or documentation and/or reasonable
services.

 

2.
Confidential Information.  Employee shall continue to maintain the
confidentiality of all confidential and proprietary information of the Company
including the fact of this resolution of the disputes between the parties and
shall continue to comply with the terms and conditions of the Computer Code
Agreement, Employment Agreement and Handbook Agreement between Employee and the
Company copies of which are attached and incorporated herein fully by
reference.  Employee acknowledges he has
refreshed his recollection of his obligations to SeeBeyond including but not in
any way limited to the provisions regarding his confidentiality obligations.

 

3.
Release of Claims.  Employee agrees that the foregoing
consideration represents settlement in full of all outstanding obligations owed
to Employee by the Company.  Employee, on
behalf of himself, and his respective heirs, family members, executors and
assigns, hereby fully and forever releases the Company and its respective
officers, directors, employees, investors, attorneys, shareholders,
administrators, affiliates, divisions, subsidiaries, predecessor and successor
corporations, and assigns, from, and agrees not to sue concerning, any claim, duty,
obligation or cause of action relating to any matters of any kind, whether
presently known or unknown, suspected or unsuspected, that he may possess
arising from any omissions, acts or facts that have occurred up until and
including the Effective Date of this Agreement including, without limitation,

 

(a)           any and all claims relating to or
arising from Employee’s employment relationship (including but not limited to
claims for wages and salary with the Company and the termination of that
relationship;

 

(b)           any and all claims relating to, or
arising from, Employee’s right to purchase, or actual purchase of shares of
stock of the Company, including, without limitation, any claims for fraud,
misrepresentation, breach of fiduciary duty, breach of duty under applicable
state corporate law, and securities fraud under any state or federal law;

 

(c)           any and all claims for wrongful
discharge of employment; termination in violation of public policy;
discrimination; breach of contract, both express and implied; breach of a
covenant of good faith and fair dealing, both express and implied; negligent or
intentional infliction of emotional distress; negligent or intentional
misrepresentation; negligent or intentional interference with contract or
prospective economic advantage; unfair business practices; defamation; libel;
slander; negligence; personal injury; assault; battery; invasion of privacy;
false imprisonment; and conversion;

 

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(d)           any and all claims for violation of
any federal, state or municipal statute, including, but not limited to,
Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991,
the Age Discrimination in Employment Act of 1967, the Americans with
Disabilities Act of 1990, the Fair Labor Standards Act, the Employee Retirement
Income Security Act of 1974, The Worker Adjustment and Retraining Notification
Act, Older Workers Benefit Protection Act; the California Fair Employment and
Housing Act, and Labor Code section 201, et seq.
and section 970, et seq.;

 

(e)           any and all claims for violation of
the federal, or any state, constitution;

 

(f)            any and all claims arising out of
any other laws and regulations relating to employment or employment
discrimination; and

 

(g)           any and all claims for attorneys’
fees and costs.

 

Employee
agrees that the release set forth in this section shall be and remain in
effect in all respects as a complete general release as to the matters
released.  This release does not extend
to any obligations incurred under this Agreement.

 

4.  Acknowledgment of Waiver of
Claims under ADEA. 
Employee acknowledges that he is waiving and releasing any rights he may
have under the Age Discrimination in Employment Act of 1967 (“ADEA”) and that
this waiver and release is knowing and voluntary.  Employee and Company agree that this waiver
and release does not apply to any rights or claims that may arise under ADEA
after March 31, 2005.  Employee
acknowledges that the consideration given for this waiver and Release is in
addition to anything of value to which Employee was already entitled.  Employee further acknowledges that he has
been advised by this writing that (a) he should consult with an attorney
prior to executing this Release; (b) he has at least twenty-one (21) days
within which to consider this Release; (c) he has at least seven (7) days
following the execution of this Release by the parties to revoke the Release;
and (d) this Release shall not be effective until the revocation period
has expired.  Any revocation should be in
writing and delivered by hand or sent via facsimile to Diane Erickson,
Human Resources Manager (fax: 626-408-3269) by the close of
business on the seventh day from the date that Employee signed this
Release.  Employee understands that,
although he has twenty-one (21) days to consider the Release, he may accept the
terms of the Release at any time during those twenty-one (21) days.

 

5.
Civil Code Section 1542.  Employee represents that he is
not aware of any claims against the Company other than the claims that are
released by this Agreement.  Employee
acknowledges that he has been advised by legal counsel and is familiar with the
provisions of California Civil Code Section 1542, which provides as
follows:

 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM MUST HAVE

 

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MATERIALLY
AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

 

Employee,
being aware of said code section, agrees to expressly waive any rights he may
have there under, as well as under any other statute or common law principles
of similar effect.

 

6. No
Pending or Future Lawsuits.  Employee represents that he
has no lawsuits, claims, or actions pending in his name, or on behalf of any
other person or entity, against the Company or any other person or entity
referred to herein.  Employee also
represents that he does not intend to bring any claims on his own behalf or on
behalf of any other person or entity against the Company or any other person or
entity referred to herein.

 

7.
Confidentiality.  Employee agrees to maintain in confidence the
existence of this Agreement, the contents and terms of this Agreement, and the
consideration for this Agreement (hereinafter collectively referred to as “Release
Information”).  Employee agrees to take
every precaution to prevent disclosure of any Release Information to third
parties, and agrees that there will be no publicity, directly or indirectly,
concerning any Release Information. 
Employee agrees to take every precaution to disclose Release Information
only to those attorneys, accountants, governmental entities, and family members
who have a reasonable need to know of such Release Information.  No other disclosures are permitted without
the written consent of the Company. 
Employee understands and agrees that should he breach this
confidentiality provision the Company shall be entitled to seek an injunctive
order to preclude any further breaches. Employee also agrees and understands
that this paragraph 7 and its provisions regarding confidentiality are material
to Company and its decision to enter into this agreement and a breach of these
provisions by Employee is a material breach of this agreement. As such,
Employee agrees that should such a breach occur before the payment to be made
pursuant to this agreement has been made, Employer may, at its option, not make
such payment and be relieved of any obligation to do so thereafter.  Employee understands and agrees that the
Company may file this agreement to comply with its legal obligations and
Employee authorizes the company to do without any further authorization
required.

 

8. No
Cooperation.    Employee agrees that he will not actively
counsel or assist any attorneys or their clients in the presentation or
prosecution of any disputes, differences, grievances, claims, charges, or
complaints by any third party against the Company and/or any officer, director,
employee, agent, representative, shareholder or attorney of the Company, unless
under a subpoena or other court order to do so.

 

9. No
Defamation or Tortuous Interference.  Employee agrees to refrain
from any negative statements, defamation, libel or slander regarding the
company and its products and services as well as the company’s officers,
directors, employees, investors, shareholders, administrators, affiliates,
divisions, subsidiaries, predecessor and successor corporations, products, and
assigns or tortuous interference with the contracts and relationships of the
Company and its respective officers, directors, employees, investors,
shareholders, administrators, affiliates, divisions, subsidiaries, predecessor
and successor corporations, and assigns. 
All inquiries by potential future employers of Employee will be directed
to the Company’s General Counsel.  Upon

 

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inquiry,
the General Counsel shall only state the following:  Employee’s last position and dates of
employment.

 

10. Tax
Consequences. The
Company makes no representations or warranties with respect to the tax
consequences of the payment of any sums to Employee under the terms of this
Agreement.  Employee agrees and
understands that he is responsible for payment, if any, of local, state and/or
federal taxes on the sums paid hereunder by the Company and any penalties or
assessments thereon.  Employee further
agrees to indemnify and hold the Company harmless from any claims, demands,
deficiencies, penalties, assessments, executions, judgments, or recoveries by
any government agency against the Company for any amounts claimed due on
account of Employee’s failure to pay federal or state taxes or damages
sustained by the Company by reason of any such claims, including
reasonable attorneys’ fees.

 

11. No-Competition. During the Severance
Period, and for six (6) months thereafter, Employee shall not become employed
or work in any capacity with webMethods and or Tibco or any of their
affiliates, parents and/or subsidiaries. 
Employee’s failure to comply with the provisions of the preceding
sentence shall give Company the right (in addition to all other remedies
Company may have) to terminate any benefits or compensation to which Employee
may be otherwise entitled.

 

Employee
further agrees that for one (1) year, employee will not, directly or
indirectly, alone or in concert with others, solicit or induce any employee,
consultant, or independent contractor of SeeBeyond to terminate his or her
employment or relationship with SeeBeyond.

 

12. No Admission of Liability.  The Parties understand and acknowledge that
this Agreement constitutes a compromise and settlement of claims related to the
employment relationship between the parties. 
No action taken by the Parties hereto, or either of them, either
previously or in connection with this Agreement shall be deemed or construed to
be (a) an admission of the truth or falsity of any claims heretofore made
or (b) an acknowledgment or admission by either party of any fault or
liability whatsoever to the other party or to any third party.

 

13. Costs. 
The Parties shall each bear their own costs, expert fees, attorneys’
fees and other fees incurred in connection with this Agreement

 

14. Arbitration.  The
Parties agree that any and all disputes arising out of the terms of this
Agreement, including their interpretation and/or enforceability, shall be
subject to binding arbitration held in Los Angeles County, California, under
the Arbitration Rules set forth in California Code of Civil Procedure Section 1280,
et seq., including section 1283.05, (the “Rules”) and pursuant to
California law.  The Parties agree that
the prevailing party in any arbitration shall be entitled to enforce the
arbitration award in any court of competent jurisdiction.

 

15.
Authority.  The Company represents and warrants that the
undersigned has the authority to act on behalf of the Company and to bind the
Company and all who may claim through it to the

 

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terms
and conditions of this Agreement. 
Employee represents and warrants that he has the capacity to act on his
own behalf and on behalf of all who might claim through him to bind them to the
terms and conditions of this Agreement. 
Employee warrants and represents that there are no liens or claims of lien
or assignments in law or equity or otherwise of or against any of the claims or
causes of action released herein.

 

16. No
Representations.  Employee represents that he has had the
opportunity to consult with an attorney, and has carefully read and understands
the scope and effect of the provisions of this Agreement.  Neither party has relied upon any
representations or statements made by the other party hereto which are not
specifically set forth in this Agreement.

 

17.
Severability.  In the event that any provision hereof
becomes or is declared by a court of competent jurisdiction to be illegal,
unenforceable or void, this Agreement shall continue in full force and effect
without said provision.

 

18.
Entire Agreement.  This Agreement represents the entire
agreement and understanding between the Company and Employee concerning
Employee’s separation from the Company, and supersedes and replaces any and all
prior agreements and understandings concerning Employee’s relationship with the
Company and his compensation by the Company.

 

19. No
Oral Modification.  This Agreement may only be amended in writing
signed by Employee and Vice President Business and Legal Affairs and General
Counsel.

 

20.
Governing Law.  This Agreement shall be governed by the laws
of the State of California.

 

21.
Effective Date.  This Agreement is effective eight days after
it has been signed by both Parties.

 

22.
Counterparts.  This Agreement may be executed in
counterparts, and each counterpart shall have the same force and effect as an
original and shall constitute an effective, binding agreement on the part of
each of the undersigned.

 

23.
Voluntary Execution of Agreement.  This Agreement is executed
voluntarily and without any duress or undue influence on the part or behalf of
the Parties hereto, with the full intent of releasing all claims.  The Parties acknowledge that:

 

1.             They have read this Agreement;

 

2.             They have been represented in the
preparation, negotiation, and execution of this Agreement by legal counsel of
their own choice or that they have voluntarily declined to seek such counsel;

 

3.             They understand the terms and
consequences of this Agreement and of the releases it contains;

 

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4.             They are fully aware of the legal
and binding effect of this Agreement.

 

24.
Employee agrees to return to SeeBeyond on or before the date of executing this
agreement all company property including but not limited to computer, cell
phone, credit card(s), security badge and all SeeBeyond Documents

 

25.
Employee agrees to not seek re-employment with SeeBeyond Technology, its
successors in interest, affiliates or subsidiaries.

 

IN WITNESS WHEREOF, the
Parties have executed this Agreement on the respective dates set forth below.

 

 

	
   

  	
  SEEBEYOND
  TECHNOLOGY CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated:
    April 12, 2005

  	
  By
  

  	
    /s/ MARK BROOKS

  	
   

  
	
   

  	
  Mark
  Brooks

  	
   

  
	
   

  	
  Vice
  President Business and Legal Affairs

  	
   

  
	
   

  	
  and
  General Counsel

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated:  April 12, 2005

  	
  /s/
  THOR CULVERHOUSE

  	
   

  
	
   

  	
  Thor
  Culverhouse

  	
   

  
					

 

7Exhibit 10.1

 

March 28, 2005

 

John J. Hayes

14 Craig Hill Lane

Milton, MA 02186

 

Dear John:

 

This letter agreement confirms the understanding between you and The J.
Jill Group, Inc. (the “Company”) relating to the termination of your
employment with the Company.

 

1.             Resignation and Cooperation in Transition.  You hereby resign your position as Executive
Vice President/Chief Marketing Officer and from all other offices you hold with
the Company or any of its subsidiaries or affiliates, effective as of April 15,
2005 (the “Resignation Date”).  Your
resignations shall be effective regardless of the continued effectiveness of
this letter agreement.  Thereafter
through May 17, 2005 (the “Termination Date”), you shall remain an
employee of the Company and shall make yourself available upon reasonable
request by the Company and at mutually agreeable times to assist in
transitioning your former responsibilities to the person or persons designated
by the Company to receive them on an as needed basis.  Your employment shall terminate on the
Termination Date.  From and after the
Resignation Date, your obligations to the Company and the Company’s obligations
to you shall be solely those provided for in this letter agreement.

 

2.             Severance Pay and Associated Benefits.

 

(a)  Severance Pay.  On the date seven days after execution of
this Agreement by you as set forth in Section 11(c) hereof, provided
that the seven-day revocation period has run without revocation by you, the
Company will make a one-time, lump-sum payment to you in the gross amount of
your annual base salary, i.e. $385,000.00 (the “Severance Payment”), subject to
the provisions of Section 2(l) below.

 

(b)  Salary Continuation.  After the Resignation
Date, your compensation shall continue at the current rate of $385,000 per year
through the Termination Date, and you shall be entitled to continue all
benefits provided to employees on the same basis on which you have been
receiving them through the Termination Date, subject to the provisions of Section 2(l)
below and further subject to your continuing (i) compliance with the
provisions of Sections 4, 5, 6, 7 and 12(c) of this Agreement, and (ii) fulfillment
of your responsibilities to transition your former responsibilities in
accordance with the provisions of Section 1 above.

 

(c)  Stock Options.  The Company has previously issued to you
certain stock options under the Company’s 1993 Incentive and Nonqualified Stock
Option Plan and 2001 Incentive and Non-Statutory Stock Option Plan, which are
summarized in Exhibit A.  You
have thirty (30) days from the Termination Date to exercise any such options
that vested during your employment.  You
shall forfeit any options unvested as of the Termination Date.

 

 

(d) Medical Insurance.  Your rights under the so-called COBRA statute
(which gives you the right to continue to participate in the Company’s group
medical and dental plans for a period of time at your own expense) shall become
effective as of the Termination Date. 
For an 18-month period from the Termination Date, or until you
become eligible for group medical and/or dental plans from a new employer
offering substantially equal insurance, whichever is sooner, the Company will pay the same portion of
the premium for your existing medical and/or dental insurance as it would have
paid (and you will pay the same portion of the premium for such insurance as
you would have paid) if you had continued to be employed at the Company.  You will notify the Company’s Human Resources
Department in writing within 72 hours of accepting any such reemployment with
such insurance eligibility.  Nothing
herein shall prevent the Company from making changes in its medical and dental
insurance plans, to the extent that such changes are generally applicable to
employees of the Company.

 

(e)  401(k) Plan.  Your eligibility to participate in the
Company’s 401(k) Plan terminates on the Termination Date.

 

(f) Deferred Compensation Plan.  Your right to participate in the Company’s Deferred
Compensation Plan terminates on the Termination Date.  You will be paid your vested account balance
as of the Termination Date in accordance with the terms of the Plan.

 

(g)  Executive Term Life.  Premiums on the executive term life insurance
policy maintained by the Company for your benefit are paid quarterly and have
been paid through the coverage period ending May 17, 2005.  If you wish to continue coverage under this
policy after May 17, 2005, you will need to pay the premiums for
subsequent periods in accordance with the terms of the policy.

 

(h) Group Life and Disability Insurance.  Your coverage under the group term life
insurance and disability insurance policies maintained by the Company for
employees terminates on the Termination Date. 
You will be provided with information regarding your rights, if any,
with regard to continuing your basic life insurance coverage on an individual
basis.

 

(i) Vacation Pay.  You will continue to accrue vacation benefits
through the Termination Date, at which time you will have accrued 86.15 hours
of unused vacation for which you will be paid the gross amount of $15,946.37,
subject to the provisions of Section 2(l) below.  Thereafter, you shall not accrue or be
entitled to any additional vacation benefits.

 

(j) Outplacement.  After the Resignation Date (and provided that
you have signed this Agreement and provided further that the seven-day
revocation period set forth in Section 11(c) has run unexercised by
you), the Company will make a lump-sum payment to you in the gross amount of
$7,500, subject to the provisions of Section 2(l) below, to enable you to
secure outplacement services.  In
addition, the Company has paid the service fees to allow you to continue to
access KhanQuest Limited’s executive coaching services through June 30,
2005.

 

(k) 2004 Tax Preparation Fee.  After the Resignation Date (and provided that
you have signed this Agreement and provided further that the seven-day
revocation period set forth in Section 11(c) has run unexercised by
you), the Company will make a lump-sum payment

 

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to you in the gross amount of $7,500, subject
to the provisions of Section 2(l) below, toward fees that you may incur
for the preparation of your 2004 federal and state income tax returns.

 

(l) 
Withholdings.  The Company may deduct from your Severance
Pay, Salary Continuation and Vacation Pay, and any other payments otherwise due
to you under this letter agreement, such withholding taxes and similar
governmental payments and charges as may be required.

 

(m)  No
Other Pay or Benefits.  You acknowledge that the Company has previously
paid all amounts payable to you under all other compensation or reimbursement
arrangements, if any.  From and after the
Termination Date you shall have no right to compensation or benefits, including
benefits accrual, beyond those specifically provided for in this letter
agreement.

 

3.             Release.  In return for the payments and benefits
provided to you as set forth in Sections 2 above, you agree to execute (in
accordance with the provisions of Section 11 below) the final and binding
general release and waiver of all claims (the “Release and Waiver”) in the form
attached hereto as Exhibit B to this letter agreement, said Release
and Waiver to include claims against age discrimination and all other claims
arising out of or relating to your hiring, employment, or termination of
employment.  Notwithstanding the
foregoing, the Company and you agree that the terms of this letter agreement
shall survive the Release and Waiver and that claims to enforce the terms of
this letter agreement are not discharged by said Release and Waiver.

 

4.             Return of Company Property and Retrieval of Personal
Effects.  On or before the
close of business on the Termination Date, or such later date as the Company
may agree: (i) you will return to the Company all property of the Company,
including without limitation all tangible work product and including any keys,
passwords, reference materials, books, audit or other specialized software,
Company documents and files, computers, laptops and computer disks or files, if
any, in your possession, custody or control; and (ii) you will retrieve
from the Company all of your
personal effects.

 

5.             Confidential Information.  You shall not in any manner following the
Termination Date, directly or indirectly, without the express prior written
consent of the Company, disclose or use any Confidential Information of the
Company.  “Confidential Information”
shall include all information (including by not limited to any trade secrets or
other confidential, proprietary or private matters) concerning (i) the
Company or any director, officer, employee or affiliate of the Company or (ii) in
their capacity as such, any customer, supplier or other business associate of
the Company, which information has been or is received by you from the Company
or any director, officer, employee, affiliate, customer, supplier or other
business associate of the Company prior to the Termination Date.  “Confidential Information” does not include
information that the Company has voluntarily disclosed to the public without
restriction or which has otherwise lawfully entered the public domain without
your participation or fault.  It also
does not include (i) any information that is required to be disclosed by
any law, regulation or order of any court or regulatory or administrative
commission, department or agency; or (ii) information regarding your
employment dates, position and responsibilities disclosed to potential
employers and recruiters in connection with your seeking and obtaining subsequent
employment.

 

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6.             Mutual Nondisparagement.  You agree not to take any action
or make any statement, written or oral, which disparages the Company, its
directors or officers, or its management, business or personnel practices, or
which disrupts or impairs the Company’s normal operations.  The Company and its executive officers agree
not to take any action or make any statement, written or oral, which disparages
you.  The provisions of this Section 6
shall not apply to any truthful statement required to be made by you or by the
Company or its executive officers in the ordinary course of your or their
performance of your or their duties as employees of the Company, in any legal
proceeding, required filing pursuant to the securities laws, or pursuant to any
governmental or regulatory investigation.

 

7.             Covenant Not to Sue/Encourage Third Party Action.  Except as otherwise provided in this Section 7,
you represent and warrant that you have never commenced or filed, and covenant
and agree never to commence, file, aid, solicit or in any way prosecute or
cause to be commenced or prosecuted against the Releasees (as defined in the
Release and Waiver) the bringing of any legal proceeding or the making of any
legal claim against the Company by any state or federal agency or by any
applicant for employment, employee or former employee of the Company (“third
party action”), and further you shall not reveal any information about the
Company to be used for, and shall not testify in, any third party action except
as required to do so by properly issued subpoena and then only after giving the
Company a reasonable opportunity to review any such subpoena and oppose the
giving of any such testimony. 
Notwithstanding the foregoing, the Company and you agree that this
letter agreement will not affect the rights and responsibilities of the U.S.
Equal Employment Opportunity Commission (“EEOC”) to enforce the Age
Discrimination in Employment Act of 1967, as amended, and other laws, and
further agree that this letter agreement will not be used to justify
interfering with your right to participate in an investigation or proceeding
conducted by the EEOC.  You represent and
warrant that you knowingly and voluntarily waive all rights or claims arising
prior to your execution of this letter agreement that you may have against the
Releasees, or any of them, to receive any payment, benefit or remedial relief
as a consequence of any charge filed with the EEOC and/or of any litigation
concerning any facts alleged in any such charge.

 

8.             Remedies. 
You acknowledge and agree that your obligations arising under
Sections 4, 5, 6 and 7 above are of the essence to this letter agreement and
that your material breach of any of these obligations will terminate the
Company’s obligations to you under Section 2 of this letter
agreement.  Should you commit a material
breach of any such obligations, you shall further be required to pay back to
the Company the full value of any benefit that you have derived under Sections
2(a), (d), (j) and (k) above.  You
further acknowledge and affirm that money damages cannot adequately compensate
the Company for any material breach by you of Sections 4, 5, 6 and 7 of this
letter agreement and that the Company is entitled to equitable relief in any
Massachusetts court of competent jurisdiction to prevent or otherwise restrain
any actual or threatened breach of the provisions of said Sections and/or
compel specific performance of, or other compliance with, the terms thereof.

 

9.             Non-Assignment.  You warrant and represent to the Company that
you have not heretofore assigned or transferred or attempted to assign or
transfer to any person any claim or matter recited in the Release and Waiver or
any part or portion thereof, and agree to indemnify and hold harmless the
Releasees from and against any claim, demand, damage, debt, liability, account,
reckoning, obligation, cost, expense (including the payment of attorney’s fees
and costs

 

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actually incurred
whether or not litigation be commenced), lien, action and cause of action,
based on, in connection with, or arising out of any such assignment or transfer
or attempted assignment or transfer.

 

10.           Indemnification.  Nothing contained in this letter agreement or
the Release and Waiver shall be construed to limit or eliminate your rights to
whatever indemnification, if any, you are entitled to in your capacity as an
employee of the Company pursuant to the Company’s By-Laws, Certificate of Incorporation,
insurance policies, or as a matter of law.

 

11.          Representations and Recitals.  You represent that:

 

(a)  The Company has advised you to consult with an
attorney of your choosing concerning the rights waived in this letter
agreement.  You have carefully read and
fully understand this letter agreement, and are voluntarily entering into this
letter agreement and providing the Release and Waiver attached hereto as Exhibit B.

 

(b)  You understand that you have 21 days to review this
letter agreement and the Release and Waiver prior to their execution.  If at any time prior to the end of the 21 day
period, you execute this letter agreement and the Release and Waiver, you
acknowledge that such early execution is a knowing and voluntary waiver of your
right to consider this letter agreement and the Release and Waiver for at least
21 days and is due to your belief that you have had ample time in which to
consider and understand this letter agreement and the Release and Waiver and in
which to review this letter agreement and the Release and Waiver with an
attorney.

 

(c)  You understand that, for a period of seven days after
you have executed this letter agreement and the Release and Waiver, you may
revoke the agreement and the Release and Waiver by giving notice in writing of
such revocation to the Company, c/o Chairman of the Board of Directors at the
Company’s headquarters, with a copy to David R. Pierson, Foley Hoag LLP, 155
Seaport Blvd., Boston, Massachusetts 02210. 
If at any time after the end of the seven-day period you accept any of
the payments or benefits provided by the Company as described in Section 2
of this letter agreement, such acceptance will constitute an admission by you
that you did not revoke this letter agreement or the Release and Waiver during
the revocation period and will further constitute an admission by you that this
letter agreement and the Release and Waiver have become effective and
enforceable.

 

(d)  You understand the effect of the Release and Waiver
and that you give up any rights you may have, in particular but without
limitation, under the Federal Age Discrimination in Employment Act and the
Massachusetts Law Against Discrimination (Mass. Gen. Laws ch. 151B§1 et  seq.).

 

(e)  You understand that you are receiving benefits pursuant
to this letter agreement that you would not otherwise be entitled to if you did
not enter into this letter agreement.

 

5

 

12.           Miscellaneous.

 

(a)  Successors and Assigns.  This letter agreement shall be binding upon
and inure to the benefit of the respective legal representatives, heirs,
successors, assigns, and present and former employees and agents of the parties
hereto to the extent permitted by law.

 

(b) 
Attorneys Fees.  Each
party shall bear his or its own attorney’s fees and expenses.

 

(c)  Challenge
to Validity of Agreement.  After the revocation period of seven days
described in Section 11(c) of this letter agreement has expired, this
letter agreement and the Release and Waiver shall be forever binding.  You acknowledge that you may hereafter
discover facts not now known to you relating to your hire, employment or
cessation of employment, and agree that this letter agreement and the Release
and Waiver shall remain in effect notwithstanding any such discovery of any
such facts.  You shall not bring a
proceeding to challenge the validity of this letter agreement and the Release
and Waiver.  Should you do so
notwithstanding this Section 12, you will first be required to pay back to
the Company all remuneration received pursuant to Section 2 hereof.

 

(d)  Governing Law.  This letter agreement shall be interpreted in
accordance with the substantive laws of Massachusetts and without regard to any
conflict of laws provisions.

 

(e)  Complete Agreement; Modification.  This letter agreement recites the full terms
of the understanding between us, and supersedes any prior oral or written
understanding except the Agreement to Protect Corporate Property, effective as
of December 10, 2004, between the Company and you, which shall remain in
effect in accordance with its terms. 
This Agreement may be modified only in a writing signed by both parties.

 

6

 

(f)  Execution.  This letter agreement may be executed in one
or more counterparts, each of which when so executed shall be deemed to be an
original, and all such counterparts together shall constitute but one and the
same instrument.

 

* * * * * *

 

Please note that you have 21 days to accept
the offer set forth herein, and may revoke your acceptance within 7 days of
signing as set forth in Section 11(c) above, in which case this
letter agreement (other than provisions 1, 4 and 5(b)) shall be void.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Gordon R. Cooke

  	
   

  
	
   

  	
   

  	
  Duly Authorized

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Agreed, accepted and signed this 14th
  day

  of April, 2005 under seal:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ John J. Hayes

  	
   

  	
   

  
	
  John J. Hayes

  	
   

  
					

 

7

 

EXHIBIT A

 

	
  EMPLOYEE

  	
   

  	
  OPTION

  TYPE

  	
   

  	
  GRANT

  DATE

  	
   

  	
  SHARES

  GRANTED

  	
   

  	
  STRIKE

  PRICE

  	
   

  	
  VESTED

  @ 03/26/05

  	
   

  	
  EXERCISED

  	
   

  	
  VESTED

  BALANCE

  	
   

  	
  NOT VESTED

  @ 03/26/05

  	
   

  	
  FULLY

  VESTED

  	
   

  	
  TERM

  DATE

  	
   

  
	
  J. Hayes

  	
   

  	
  ISO

  	
   

  	
  5/16/1996

  	
   

  	
  157,500

  	
   

  	
  $

  	
  1.889

  	
   

  	
  157,500

  	
   

  	
  157,500

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  5/16/2001

  	
   

  	
  5/16/2003

  	
   

  
	
   

  	
   

  	
  ISO

  	
   

  	
  6/25/1997

  	
   

  	
  49,657

  	
   

  	
  $

  	
  4.667

  	
   

  	
  49,657

  	
   

  	
  49,657

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  6/25/2002

  	
   

  	
  6/25/2004

  	
   

  
	
   

  	
   

  	
  NQO

  	
   

  	
  6/25/1997

  	
   

  	
  29,092

  	
   

  	
  $

  	
  4.667

  	
   

  	
  29,092

  	
   

  	
  29,092

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  6/25/2002

  	
   

  	
  6/25/2004

  	
   

  
	
   

  	
   

  	
  NQO

  	
   

  	
  10/23/2000

  	
   

  	
  105,000

  	
   

  	
  $

  	
  7.625

  	
   

  	
  105,000

  	
   

  	
  0

  	
   

  	
  105,000

  	
   

  	
  0

  	
   

  	
  4/23/2002

  	
   

  	
  10/23/2007

  	
   

  
	
   

  	
   

  	
  ISO

  	
   

  	
  9/25/2001

  	
   

  	
  25,500

  	
   

  	
  $

  	
  7.150

  	
   

  	
  25,500

  	
   

  	
  0

  	
   

  	
  25,500

  	
   

  	
  0

  	
   

  	
  9/25/2004

  	
   

  	
  9/25/2011

  	
   

  
	
   

  	
   

  	
  NQO

  	
   

  	
  9/25/2001

  	
   

  	
  34,500

  	
   

  	
  $

  	
  7.150

  	
   

  	
  34,500

  	
   

  	
  0

  	
   

  	
  34,500

  	
   

  	
  0

  	
   

  	
  9/25/2004

  	
   

  	
  9/25/2011

  	
   

  
	
   

  	
   

  	
  ISO

  	
   

  	
  6/3/2002

  	
   

  	
  4,500

  	
   

  	
  $

  	
  21.000

  	
   

  	
  3,000

  	
   

  	
  0

  	
   

  	
  3,000

  	
   

  	
  1,500

  	
   

  	
  6/3/2005

  	
   

  	
  6/3/2012

  	
   

  
	
   

  	
   

  	
  NQO

  	
   

  	
  6/3/2002

  	
   

  	
  145,500

  	
   

  	
  $

  	
  21.000

  	
   

  	
  97,000

  	
   

  	
  0

  	
   

  	
  97,000

  	
   

  	
  48,500

  	
   

  	
  6/3/2005

  	
   

  	
  6/3/2012

  	
   

  
	
   

  	
   

  	
  NQO

  	
   

  	
  6/6/2003

  	
   

  	
  25,000

  	
   

  	
  $

  	
  16.680

  	
   

  	
  8,333

  	
   

  	
  0

  	
   

  	
  8,333

  	
   

  	
  16,667

  	
   

  	
  6/6/2006

  	
   

  	
  6/6/2013

  	
   

  
	
   

  	
   

  	
  ISO

  	
   

  	
  2/25/2004

  	
   

  	
  13,000

  	
   

  	
  $

  	
  15.510

  	
   

  	
  4,333

  	
   

  	
  0

  	
   

  	
  4,333

  	
   

  	
  8,667

  	
   

  	
  2/25/2007

  	
   

  	
  2/25/2014

  	
   

  
	
   

  	
   

  	
  NQO

  	
   

  	
  2/25/2004

  	
   

  	
  12,000

  	
   

  	
  $

  	
  15.510

  	
   

  	
  4,000

  	
   

  	
  0

  	
   

  	
  4,000

  	
   

  	
  8,000

  	
   

  	
  2/25/2007

  	
   

  	
  2/25/2014

  	
   

  
	
   

  	
   

  	
  NQO

  	
   

  	
  12/10/2004

  	
   

  	
  25,000

  	
   

  	
  $

  	
  16.990

  	
   

  	
  25,000

  	
   

  	
  0

  	
   

  	
  25,000

  	
   

  	
  0

  	
   

  	
  12/10/2004

  	
   

  	
  12/10/2014

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  626,249

  	
   

  	
   

  	
   

  	
  542,915

  	
   

  	
  236,249

  	
   

  	
  306,666

  	
   

  	
  83,334

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT
B

 

GENERAL
RELEASE AND WAIVER OF ALL CLAIMS

(INCLUDING AGE DISCRIMINATION IN EMPLOYMENT ACT CLAIMS)

 

In consideration of the payment, benefits and
other agreements set forth in the letter agreement dated March 28, 2005
between The J. Jill Group, Inc. (“the Company”) and John J. Hayes (“Hayes”)
(to which this General Release and Waiver Of All Claims is attached), Hayes,
for himself and for his heirs, executors, estates, agents, representatives,
attorneys, insurers, successors and assigns (collectively, the “Releasors”),
hereby voluntarily releases and forever discharges (i) the Company and its
subsidiaries (direct and indirect), affiliates, related companies, divisions,
and predecessor and successor companies, (ii) each of its and their
present and former officers, directors and employees, and (iii) in their
capacities as such, each of the Company’s and its subsidiaries’ (direct and
indirect), affiliates’, related companies’, divisions’, and predecessor and
successor companies’ present and former shareholders, agents, representatives,
attorneys, insurers, heirs, successors and assigns (collectively, the “Releasees”)
from all actions, causes of action, suits, debts, sums of money, accounts,
covenants, contracts, agreements, promises, damages, judgments, demands and
claims which the Releasors ever had, or now have, or hereafter can, shall or
may have, for, upon or by reason of any matter or cause whatsoever arising from
the beginning of the world to the date of the execution of this Release,
whether known or unknown, in law or equity, whether statutory or common law,
whether federal, state, local or otherwise, including but not limited to claims
arising out of or in any way related to Hayes’s employment by the Company
(including his hiring), or the termination of that employment, whether as a
contractor or employee, or any related matters (including but not limited to
claims, if any, arising under the Age Discrimination in Employment Act of 1967,
as amended, the Civil Rights Act of 1866, Title VII of the Civil Rights Act of
1964, as amended, the Civil Rights Act of 1991, as amended, the Americans With
Disabilities Act of 1990, as amended, the Family and Medical Leave Act of 1993,
the Immigration Reform and Control Act of 1986, the Massachusetts Law Against
Discrimination (Mass. Gen. Laws ch. 151B§1 et  seq.), the
Massachusetts Payment of Wages Act, the Massachusetts Civil and Equal Rights
Acts, and federal or Massachusetts laws, statutes and regulations, including
common or constitutional law).

 

Signed and sealed this 14th
day of April, 2005.

 

	
   

  	
  /s/ John J. Hayes

  	
   

  
	
   

  	
  John J. Hayes

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