Document:

Exhibit 10.2

 

	
   

  	
  

  
	
   

  	
   

  
	
   

  	
  July 22,
  2010

  

 

This
letter sets forth the agreement between CardioNet, Inc. (the “Company”)
and Randy H. Thurman, Chairman of the Board of the Company, supplementing the
terms and conditions of Mr. Thurman’s resignation as chief executive
officer of the Company, as set forth in the attached letter from Mr. Thurman
dated June 15, 2010 (the “June 15 letter”).  In particular, the parties agree as follows: (1) effective
as of July 1, 2010, Mr. Thurman shall be permitted to elect to continue
to participate in the Company’s medical, dental and other health plans on the
same general terms and conditions as were applicable immediately prior to his
resignation as chief executive officer, subject to changes in the plan’s terms
and conditions as are applicable to other plan participants from time to time,
and subject to the requirement that Mr. Thurman must pay the full premium
for the coverage elected; (2) the arrangement described in (1) shall
continue to apply for the period during which Mr. Thurman serves on the
Company’s board of directors; provided, however, that the arrangement shall (i) be
terminable by the Company in the event that the arrangement becomes
impracticable or results in adverse tax consequences to Mr. Thurman or the
Company; and (ii) terminate upon Mr. Thurman’s obtaining comparable
healthcare coverage through a successor employer; and (3) except as
otherwise provided in this letter agreement, the June 15 letter shall
continue to apply by its terms.

 

 

	
   

  	
  Sincerely
  yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Ron
  Ahrens

  
	
   

  	
  Lead
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted
  and agreed to:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Randy
  H. ThurmanExhibit
10.1

 

Griffon Corporation

712 Fifth Avenue, 18th Floor

New York, New York, 10019

 

April 27, 2010

 

Mr. Seth
L. Kaplan

c/o
Griffon Corporation

712
Fifth Avenue, 18th Floor

New
York, NY 10036

 

RE:          Offer of Employment

 

Dear
Seth:

 

On
behalf of Griffon Corporation (the “Company”), I am pleased to offer you
the position of Senior Vice-President, General Counsel and Secretary of the
Company.  During your employment as
Senior Vice-President, General Counsel and Secretary of the Company you will (i) be
responsible for, and, along with the Company’s Chief Executive Officer, have
authority over, the Company’s legal functions, and (ii) have such other
duties and responsibilities as are assigned to you by the Company’s Chief
Executive Officer or the Company’s Board of Directors (not inconsistent in any
significant respect with the duties and responsibilities typically assigned to
the general counsel of a publicly-traded corporation).  You will faithfully devote all of your business
time to the performance of such duties. 
You will report solely and directly to the Company’s Chief Executive
Officer or his designees.  Your
employment will commence on or about May 17, 2010 (the “Start Date”).

 

Compensation

 

The
base salary offered by the Company is $312,500 per annum while you are employed
by the Company, subject to increase, in the sole discretion of the Compensation
Committee of the Company’s Board of Directors (the “Committee”) upon review of
your performance by the Company’s Chief Executive Officer and the Committee on
the six-month anniversary of the Start Date. 
The Committee will also conduct periodic performance reviews thereafter,
and may increase your base salary in its sole discretion.  For each fiscal year ended during your period
of employment, you will be eligible to receive a performance based bonus as
determined by the Committee having (i) a target bonus opportunity equal to
up to fifty percent (50%) of your base salary based upon the achievement of
target performance objectives; and (ii) a maximum bonus opportunity equal
to up to one hundred percent (100%) of your base salary based upon the
achievement of superior performance objectives, in all cases as established and
certified by the Committee in accordance with the Company’s 2006 Performance
Bonus Plan or another plan or plans providing you annual award opportunities;
provided that, with respect to the partial fiscal year commencing on your Start
Date and ending September 30, 2010, your performance-based bonus will be
appropriately pro-rated based on the number of days in such fiscal year during
which you were 

 

 

employed
by the Company.  Such performance based
bonus will be paid at the time the Company pays its officers annual bonuses for
the fiscal year, but no later than 75 days after the fiscal year end.

 

Contingent
upon the approval of the Committee, you will receive a grant of 40,000
restricted shares of the Company’s common stock (the “Restricted Stock Award”),
as soon as administratively feasible upon your commencement of employment.  The Restricted Stock Award will be subject to
the terms of the Company’s 2006 Equity Incentive Plan.  The Restricted Stock Award will cliff vest in
full on the fourth (4th) anniversary of the date of grant, provided that you
are then still employed by the Company or, if earlier, upon your termination of
employment with the Company without “Cause” or for “Good Reason,” as such terms
are defined in the Severance Agreement between you and the Company, dated April 27,
2010, a copy of which is attached hereto as Exhibit A (the “Severance
Agreement”).  In addition,
notwithstanding the foregoing, in the event of your termination of employment
due to “Disability,” as defined in the Severance Agreement, a pro-rata portion
of the Restricted Stock Award will vest in a percentage equal to the number of
days worked by you from the grant date until your Disability termination date
over 1,460.  The award agreement for the
Restricted Stock Award shall permit you to satisfy your tax withholding obligations
by having the Company withhold a sufficient number of shares to satisfy such
obligations.  Additionally, during your
period of employment you will be eligible to receive subsequent annual grants
of restricted stock and/or other equity-based awards, in the amount, type and
frequency determined by the Committee in its sole discretion.  It is expected that senior management will
recommend to the Committee that any such subsequent annual equity grant or
grants be at the same percentage of base salary as provided to other senior
executives from time to time (currently valued at approximately 125% of base
salary).  However, the Committee (and the
Company) reserves the right to grant a higher or lower value or amount to you
in its sole discretion (regardless of the value or amount granted to other
senior executives), taking into account corporate performance, individual
performance and other relevant developments or considerations.

 

During
your employment, all your reasonable business expenses incurred in connection
with the performance of your duties shall be reimbursed by the Company, in
accordance with Company policies.  During
your employment, the Company will provide you with an automobile allowance
sufficient to cover the expenses attributable to a mid-size luxury automobile,
including, without limitation, lease cost, insurance, maintenance and
parking.  To the extent any right to
reimbursements or in-kind benefits hereunder constitutes “non-qualified
deferred compensation” for purposes of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), (i) all such reimbursements
shall be made as soon as practicable, but no later than the last day of the
taxable year following the taxable year in which the related expenses were
incurred, (ii) no such right shall be subject to liquidation or exchange
for another benefit, and (iii) no such reimbursement, expenses eligible
for reimbursement, or in-kind benefits provided in any taxable year shall in
any way affect the expenses eligible for reimbursement, or in-kind benefits to
be provided, in any other taxable year.

 

During
your employment, you will receive four (4) weeks of paid vacation per
annum, to be taken in accordance with Company policies.  In addition, the Company will use
commercially best efforts to provide you with term life insurance coverage,
commencing no later than the sixtieth (60th) day after your Start Date, with a
face amount equal to three (3) times your base salary.  The Company’s obligation to obtain such
coverage shall be subject to your submitting to a physical examination, if
required, and otherwise cooperating with the underwriting process.  Subject to the above, the Company (i) will
apply for this insurance no later than fifteen (15) days after your Start Date
and (ii) such coverage shall continue during your employment with the
Company.

 

2

 

Finally,
during your employment, you will be eligible to participate in all welfare
benefit plans and tax-qualified retirement plans of the Company as are
generally available to the Company’s other similarly situated executives in
accordance with, and subject to, the terms and provisions of such plans and
programs, including, without limitation, profit-sharing plans, savings and
similar plans, accidental death and dismemberment insurance, travel accident
insurance, hospitalization insurance, surgical insurance, major medical
insurance, dental and vision insurance, short-term and long-term disability
insurance, sick leave, holidays and any other employee benefit plans and programs
that may be sponsored by the Company from time to time.  You acknowledge and agree that, during such
time as the Severance Agreement is in effect, you are not entitled to receive
payments or benefits under any severance plan, program or arrangement of the
Company, other than the payments or benefits you may become entitled to receive
under the Severance Agreement.

 

Certain
Excise Taxes

 

In
the event of a change of control of the Company during your period of
employment, anything in this offer letter or the Severance Agreement to the
contrary notwithstanding, in the event it shall be determined that any payment,
benefit or distribution by, to or for the benefit of you, whether made under
this offer letter, the Severance Agreement or otherwise (a “Payment”) would be
subject to the excise tax imposed by Code Section 4999 or any like or
successor section thereto (the “Excise Tax”) and if the net-after tax amount
(taking into account all applicable taxes payable by you, including any Excise
Tax) that you would receive with respect to such Payments does not exceed the
net-after tax amount you would receive if the amount of such Payments was
reduced to the maximum amount which could otherwise be payable to you without
the imposition of the Excise Tax, then, to the extent necessary to eliminate
the imposition of the Excise Tax, such Payments shall be reduced in the
following order, (i) first, any future cash Payments (if any) shall be
reduced (if necessary, to zero); (ii) second, any current cash Payments
shall be reduced (if necessary, to zero); (ii) third, all non-cash
Payments (other than equity or equity derivative related payments) shall be
reduced (if necessary, to zero); and (iv) fourth, all equity or equity
derivative payments shall be reduced.

 

Restrictive
Covenants

 

Upon
your acceptance of this offer of employment, and in consideration of the
benefits provided hereunder and under the Severance Agreement, you agree to the
following restrictive covenants.

 

Confidentiality.  You
agree that at all times during your term of employment with the Company and at
all times thereafter (except as otherwise required by applicable law,
regulation or legal process) you shall hold in strictest confidence and not use
for your own benefit or the benefit of any other person, and not disclose to
any person without authorization from the Company, any Confidential
Information.  “Confidential Information”
means any and all confidential or proprietary business information of the
Company or its affiliates, including, without limitation, information relating
to the Company’s or its affiliates’ trade secrets, software and technology
architecture, networks, business methodologies, facilities, financial and
operational information, contracts, customer lists, marketing or sales prospect
lists, “know how,” and all copies, reproductions, notes, analyses,
compilations, studies, interpretations, summaries and other documents in
connection with the foregoing. 
Confidential Information does not include any information which (i) is
or becomes publicly known or available other than as a result of wrongful
disclosure by you, (ii) becomes available to you on a non-confidential
basis

 

3

 

from
a source which, to your knowledge, is not prohibited from disclosing such
Confidential Information to you, or (iii) is generally known in the
industry in which the Company or its affiliates operate and pertains to
activities or business not specific to the Company or its affiliates.  Additionally, you will deliver promptly to
the Company upon any termination of your employment, all agreements, memoranda,
notes, records, reports and other documents (and all copies thereof) relating
to the Company’s business and all other property of the Company, which you may
then possess or have under your control other than publicly available
documents.

 

Non-Solicitation of Employees.  During your period of employment and for the
eighteen (18) month period following any termination of your employment (the “Non-Solicit
Period”), you will not, for any reason, solicit, assist or encourage the
solicitation of, employ or engage the services of any person who was a
full-time employee (“Employee”) of, or independent contractor (“Independent
Contractor”) to, the Company at the date of such termination or within six (6) months
prior thereto to work for you or for any entity with which you are
affiliated.  For this purpose, the term “solicit”
will mean contacting, or providing information to others who may reasonably be
expected to contact, any Employee or Independent Contractor regarding such
Employee’s or Independent Contractor’s interest in seeking employment with an
entity other than (i) the Company or (ii) an entity affiliated with
the Company.

 

Non-Solicitation of Customers/Non-Interference with Vendors.  During
your period of employment and the Non-Solicit Period, you will not, for any
reason, solicit or encourage any vendor, Customer or Prospective Customer to
cease any relationship with the Company or any of its affiliates, or service in
any way any Customer or Prospective Customer. 
For this purpose, the term “solicit” will mean contacting, or providing
information to others who may reasonably be expected to contact, any such
vendor, Customer or Prospective Customer regarding such Customer or Prospective
Customer’s interest in receiving your services or the services of any entity
with which you are affiliated or the cessation of any such relationship. The
term “Customer” will mean all persons for whom the Company maintains an active
account or file in the active records of the Company, or for whom the Company
has otherwise performed or performs any services or provided products within
the twelve (12) month period preceding your termination of employment.  The term “Prospective Customer” means those
persons and entities who have been approached by or on behalf of the Company to
become a customer or who have been entered into the internal records of the
Company as a prospective or potential customer.

 

Non-Compete.  You
expressly covenant and agree that during your period of employment and the
Non-Solicit Period, you will not directly or indirectly, own, manage, operate,
join, control, receive compensation or benefits from, or participate in the
ownership, management, operation, or control of, or be employed or be otherwise
connected in any manner with, any business which directly or indirectly
competes in any material respect with any of the businesses of the Company or
any of its affiliates, as conducted or planned by the Company or any affiliate
during your employment.

 

Non-Disparagement.  You
agree that, during your period of employment and thereafter, you will not
defame, disparage or publicly criticize the Company and/or its affiliates
and/or management to any person or entity. 
In addition, you will not speak in a negative or disparaging manner
about the Company and/or its affiliates and/or management or its business, to
the media, whether electronic, print or otherwise, without the prior written
approval of the Company.  Nothing herein,
however, will prohibit you from making truthful statements to the extent
legally compelled or otherwise required by applicable laws or governmental
regulations or judicial or regulatory proceedings.

 

4

 

Remedy for Breach.  You acknowledge and agree that the
restrictions set forth in this section (titled “Restrictive Covenants”),
including the protection of the Company’s Confidential Information and the
prohibitions against competition and solicitation, are critical and necessary
to protect the Company’s legitimate business interests; are reasonably drawn to
this end with respect to duration, scope, and otherwise; are not unduly
burdensome; are not injurious to the public interest; and are supported by
adequate consideration.  You also
acknowledge and agree that, in the event that you breach any of these
restrictions, the Company could suffer immediate, irreparable injury and will,
therefore, be entitled to seek injunctive relief, in addition to any other
damages to which it may be entitled.  In
the event of any dispute, claim or cause of action arising out of this offer
letter or the Severance Agreement, the losing party shall reimburse the
prevailing party for the costs and reasonable attorneys’ fees incurred by the
prevailing party in connection with such dispute, claim or cause of action.

 

Severability; Modification.  You acknowledge that the restrictive
covenants contained in this offer letter and in the Severance Agreement are
reasonable and valid in geographical and temporal scope and in all other
respects.  If any arbitrator or court of
competent jurisdiction determines that any such restrictive covenants, or any
part of any of them, is invalid or unenforceable, the remainder of such
covenants and parts thereof shall not thereby be affected and shall be given
full effect, without regard to the invalid portion.  If any arbitrator or court determines that
any of such covenants, or any part thereof, is invalid or unenforceable because
of the geographic or temporal scope of such provision, such arbitrator or court
shall reduce such scope to the extent necessary to make such covenants valid
and enforceable.

 

Representation

 

In
accepting this offer, you represent and warrant to the Company that your
execution of this offer letter and the performance of your obligations
hereunder and under the Severance Agreement will not breach or be in conflict
with any other agreement to which you are a party or by which you are otherwise
bound.  You further represent and warrant
that you are not currently subject to any covenants against competition or
similar covenants or any court order that could preclude or otherwise affect
the performance of your duties and obligations hereunder and under the
Severance Agreement.

 

Arbitration

 

You
agree that any disputes arising under this offer letter, the Severance
Agreement or in connection with the terms of your employment with the Company
will be resolved by binding arbitration to be held in New York, New York in
accordance with the rules and procedures of the American Arbitration
Association then in effect; provided, however, that the Company may bring an
action in any court of law or equity to specifically enforce any
confidentiality, non-compete, non-interference, non-disparagement or non-solicitation
covenant.  Judgment upon any award
rendered by the arbitrators may be entered in any court having
jurisdiction.  The fees charged by the
American Arbitration Association in connection with commencing the arbitration
will be borne equally by you and the Company.

 

Withholding/Taxes

 

You
will be solely responsible for any applicable federal, state, local or other
taxes, resulting from any taxable income paid to you hereunder or otherwise by
the Company, including without limitation any taxes imposed under Code Section 409A
or Code Section 4999. 
Notwithstanding the foregoing, the Company shall be entitled to withhold
from any payments made to you hereunder, and to 

 

5

 

report
to appropriate federal, state and local taxing authorities, all amounts
required to be withheld or reported.

 

Employment
At-Will

 

This
offer letter is not meant to constitute a contract of employment for a specific
term.  Employment with the Company is at-will.  This means that, if
you accept this offer, both you and the Company will retain the right to
terminate your employment at any time, with or without notice or cause, except
as otherwise expressly provided in the Severance Agreement.  To enable us
to appropriately transition your work, however, we do ask that you provide us
one month’s notice if you decide to resign.

 

Governing
Law

 

This
offer letter shall be governed by and construed in accordance the laws of the
State of New York without reference to its principles of conflicts of law.

 

Assignability;
Binding Nature

 

This
offer letter shall be binding upon and inure to the benefit of the parties and
their respective successors, heirs (if applicable) and assigns. No rights or
obligations of the parties under this offer letter may be assigned without the
consent of both parties, except by will or the laws of descent and
distribution.

 

Entire
Agreement

 

Except
to the extent otherwise provided herein, this offer letter, together with the
Severance Agreement, contains the entire understanding and agreement between
the parties concerning the subject matter hereof and supersedes any prior
agreements, whether written or oral, between the parties concerning the subject
matter hereof.  Unless otherwise
expressly determined by the Company’s Board of Directors or the Committee in
its sole discretion after the Start Date, so long as the Severance Agreement is
in effect, payments and benefits provided under this offer letter and under the
Severance Agreement are in lieu of any payments or other benefits under any
severance program or policy of the Company to which you would otherwise be
entitled.

 

Amendment
or Waiver

 

No
provision in this offer letter may be amended unless such amendment is agreed
to in writing and signed by both you and an authorized officer of the Company.
No waiver by either party of any breach by the other party of any condition or
provision contained in this offer letter to be performed by such other party
shall be deemed a waiver of a similar or dissimilar condition or provision at
the same or any prior or subsequent time. Any waiver must be in writing and
signed by the party to be charged with the waiver.

 

Survival

 

The
respective rights and obligations of the parties hereunder shall survive the
termination of this offer letter, and the termination of your employment with
the Company for any reason, to the extent 

 

6

 

necessary
to enforce the rights and obligations of the parties following any such
termination as set forth in this offer letter.

 

*              *              *              *              *              *              *              *              *              *

 

This
offer letter is contingent upon a satisfactory background check and receipt by
the Company of this offer letter countersigned by you.  Please return the signed offer letter to the
Company in the enclosed self-addressed envelope no later than the Start Date.

 

If
you have any questions or concerns please do not hesitate to contact me.  We look forward to welcoming you to the
Griffon Corporation team.

 

7

 

	
   

  	
  Yours
  very truly,

  
	
   

  	
   

  
	
   

  	
  GRIFFON
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Ronald J. Kramer

  
	
   

  	
   

  	
  Name:

  	
  Ronald
  J. Kramer

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Seth L. Kaplan

  
	
   

  	
   

  	
  Seth
  L. Kaplan

  
	
   

  	
   

  	
  Date:
  April 27, 2010

  

 

 

Enclosures

 

8

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