Document:

exv10w7

 

EXHIBIT 10.7

RELEASE AGREEMENT

     This Release Agreement (“Agreement”) between Blackboard Inc. (“Blackboard”) and Andrew Harris
Rosen (“Rosen”) is made this 7th day of December, 2004.

WHEREAS, Rosen’s employment with Blackboard is subject to an Employment Agreement between Rosen and
Blackboard dated September 15, 2003 (“Employment Agreement”); and

WHEREAS, Rosen and Blackboard wish to end their employment relationship and to resolve all
outstanding matters between them amicably;

NOW THEREFORE, in consideration of the promises set forth below, the parties hereto agree as
follows:

     1. Employment: Ending Date. Rosen’s employment with Blackboard ended, effective
December 1, 2004.

     2. Release Payment. Blackboard will pay Rosen $328,580.76 and will pay directly to
Cigna the applicable COBRA premiums through December 1, 2005 (collectively, the “Payment”). The
Payment shall be in a lump sum in a check to be sent to Rosen on or before January 1, 2005. Rosen
has vested in the following options to purchase shares of Blackboard’s common stock, par value
$0.01 per share, in the amount and by the date set forth opposite each of the following grants
(collectively, the “Options”):

	 	 	 	 	 	 	 	 	 	 	 
	Option Agreement Date	 	Options	 	Strike Price	 	Expiration Date
	October 30, 1998

	 	 	91,671	 	 	$	0.13	 	 	March 1, 2005
	April 1, 2002

	 	 	7,865	 	 	$	9.66	 	 	December 31, 2006
	September 5, 2003

	 	 	1,966	 	 	$	9.66	 	 	December 1, 2009
	November 9, 2001

	 	 	94,384	 	 	$	9.34	 	 	December 1, 2009

Rosen acknowledges and agrees that the payment and Options are the only payment or compensation of
any kind to which he is entitled from Blackboard under his Employment Agreement or any other source
of obligation, including but not limited to salary, bonuses, stock and stock options (other than
the Options), benefits, commissions or reimbursement for expenses (whether submitted or
unsubmitted). In consideration for Rosen’s execution of this Agreement, Blackboard will pay him
$15,000 on or by January 1, 2005.

     3. Confidentiality. The content of this Agreement, the fact of the execution of this
Agreement and the circumstances leading to the execution of the Agreement are confidential and are
not to be disclosed except as necessary to a party’s respective accountants, attorneys, income tax
preparers or similar professionals, each of whom shall be bound by this confidentiality
requirement.

     4. Release.

     (a) Rosen hereby releases, remises and discharges Blackboard and each and every one of its
former or current directors, officers, employees, members, successors, predecessors, subsidiaries,
assigns and attorneys of and from all actions, causes of action, claims or complaints
(collectively, “Claims”) in law or equity that Rosen or his heirs, executors, administrators,
assigns, agents, representatives or attorneys ever had or now has by reason of any matter, cause or
thing whatsoever at any time up to and including the date of execution of this Agreement, including
but not limited to any Claim of discrimination, harassment, retaliation, breach of contract,
wrongful termination, interference with contractual relations, intentional infliction of emotional
distress, any alleged violation of any federal, state or local statutes, regulations or ordinances,
including but not limited to the federal and state laws known as the Civil Rights Acts of 1964 and
1991, the Americans With Disabilities Act, the Employee Retirement Income Security Act (other than
any accrued benefit(s) to which Rosen has a non-forfeitable right under any ERISA pension benefit
plan), the retaliation provisions of the Fair Labor Standards Act, the Family and Medical Leave
Act, the District of Columbia Human Rights Act, and any amendments to any of the foregoing, or any
other Claims of any kind. Furthermore, except as provided herein, Rosen shall not pursue any such
Claim in any court, agency, board, committee or forum whatsoever, and shall reimburse Blackboard
for all fees and expenses associated with Blackboard’s defense should Rosen pursue such a Claim.
However, this does not preclude Rosen from exercising his right to apply for unemployment benefits.

     (b) In consideration for Rosen’s execution of this Agreement, Blackboard, including its
officers, successors, predecessors, subsidiaries and assigns, hereby releases, remises and
discharges Rosen, and each of his heirs, executors, administrators, assigns, agents,
representatives or attorneys of and from all Claims in law or equity that Blackboard ever had or
now has by reason of any matter, cause or thing whatsoever at any time up to and including the date
of execution of this Agreement. Blackboard shall not pursue any such Claim in any court, agency,
board, committee or forum whatsoever, and shall reimburse Rosen for all fees and expenses
associated with Rosen’s defense should Blackboard pursue such a claim. Also inconsideration for
Rosen’s execution of this Agreement, Blackboard will allow him to keep his Blackboard laptop, PC
and Blackberry with current fair market values of $1,400, $800 and $299, respectively.

 

 

     5. Non-Disparagement. Rosen will refrain from making any derogatory or defamatory
remarks or comments that may disparage Blackboard, or any officer, employee or agent of Blackboard.
Blackboard will refrain from making any derogatory or
defamatory remarks or comments that may disparage Rosen.

     6. Arbitration of Disputes. Any dispute between the parties regarding this
Agreement, their employment relationship, or the termination thereof which Rosen and Blackboard are
unable to settle between themselves shall be resolved by final and binding arbitration conducted in
the District of Columbia. The arbitration, by one arbitrator, shall be conducted by JAMS/Endispute
pursuant to its rules governing employment disputes. Judgment upon the arbitration award may be
entered in any court having competent jurisdiction in the District of Columbia, and both parties
agree to exclusive jurisdiction therein.

     7. Knowing and Voluntary Agreement. Rosen acknowledges that he has read carefully
this entire Agreement and affirms that he is executing this Agreement knowingly and voluntarily.

     8. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the District of Columbia.

     9. Severability. If any portion of this Agreement is void or deemed unenforceable
for any reason, the unenforceable portion shall be deemed severed from the remaining portions of
this Agreement which shall otherwise remain in full force and effect.

     10. Entire Agreement. This Agreement constitutes the entire agreement between
Blackboard and Rosen and supersedes any and all prior agreements or understandings, express or
implied, except Paragraphs 12 (Non-competition), 13 (Confidentiality and Non-Disclosure) and 14
(Assignment and Disclosure of Inventions) of the Employment Agreement, attached hereto as Exhibit
A, and the stock option agreements executed by Rosen, dated October 30, 1998; November 9, 2001;
April 1, 2002; September 5, 2003; and June 18, 2004, attached hereto as Exhibits B-F, which shall
remain in full force and effect. In addition, Rosen remains subject to fiduciary duties imposed by
law. Rosen acknowledges that in executing this Agreement, Rosen does not rely upon any
representation or statement by any representative of Blackboard concerning the subject matter of
this Agreement that is not contained herein.

     11. No Admission. Neither party is admitting liability or wrongdoing by executing this
Agreement.

Blackboard Inc.

	 	 	 	 	 	 	 	 	 
	/s/ Andrew Harris Rosen

	 	 	 	By:
	 	/s/ Matthew Small	 	 
	 

	 	 	 	 	 	 	 	 
	Andrew Harris Rosen

	 	 
	 	 	 	Matthew Small, General Counsel
	 	 
	Date: December 7, 2004

	 	 	 	 	 	Date: December 7, 2004exv10w8

 

EXHIBIT 10.8

Summary of Approved 2004 and 2005 Compensation

     On February 23, 2005, per the recommendations of the Compensation Committee, the Board of Directors of Blackboard Inc. (the “Board”) took the following actions:

Base Salary of Named Executive Officers

     The
Board approved increases to the annual base salary of the following executive
officers, effective as of April 1, 2005:

	 	 	 	 	 
	Name and Position	 	 	 	Annual Base Salary
	Michael L. Chasen

	 	 	 	 
	Chief executive officer, president
	 	 	 	$335,000
	Matthew L. Pittinsky
	 	 	 	 
	Chairman of the board of directors
	 	 	 	$245,000
	Peter Q. Repetti
	 	 	 	 
	Chief financial officer
	 	 	 	$245,000
	Matthew H. Small
	 	 	 	 
	Senior vice president for legal, general counsel
	 	 	 	$195,000
	 
	 	 	 	 
	 
	 	 	 	 

On-Target Bonus

     The Board approved the on-target bonus levels of the executive officers for fiscal 2005 set
forth in the table below, the payment of which will be based on company performance measures and
individual or team performance measures to be established by the Compensation Committee. The
portion of the bonus payment attributable to company performance will vary depending on the
officer, and the balance is attributed to individual or team performance. If company performance
exceeds target, to the extent that an officer’s bonus is based on company performance, such
officer’s bonus amount will be appropriately increased in accordance with the guidelines
established by the Compensation Committee. Conversely, if company performance is below target, the
portion of each executive’s bonus based on company performance will be decreased accordingly.

	 	 	 
	 	 	On-Target Bonus
	Michael L. Chasen

	 	70% of Base Salary
	Matthew L. Pittinsky

	 	50% of Base Salary
	Peter Q. Repetti

	 	50% of Base Salary
	Matthew H. Small

	 	50% of Base Salary

2004 Bonus

     The Board authorized the payment of the following bonus amounts in respect to the year ended December 31, 2004:

	 	 	 
	 	 	2004 Bonus Amount
	Michael L. Chasen

	 	$205,000
	Matthew L. Pittinsky

	 	$163,750
	Peter Q. Repetti

	 	$155,500
	Matthew H. Small

	 	$116,875
	Todd E. Gibby

	 	$95,000

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