Document:

EXHIBIT 10.1

SEPARATION AGREEMENT

THIS SEPARATION AGREEMENT is entered into on November
26, 2006, between Kenexa Technology, Inc., a Pennsylvania corporation (the “Company”),
and Eliot Chack, also known as Elliot H. Clark (“Executive”).

WHEREAS, Executive has been an Executive of the
Company and its Parent and Subsidiaries (as hereinafter defined), most recently
in the position of Chief Operating Officer, a member of the Boards of Directors
of the Parent and Subsidiaries, and Secretary of the Parent and its Subsidiaries;

WHEREAS, the Company, its Parent and Subsidiaries,
and Executive, wish to end the employment relationship and Executive’s service on
their Boards of Directors and as their Secretary.

In consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

1.             End of Employment.

(a)           The Company and Executive hereby agree that the employment
of Executive with the Company and its Parent and Subsidiaries shall end on November
30, 2006 (the “Separation Date”). 
Executive also agrees that his service as a member of the Board of
Directors and as an officer of the Company, Parent and its Subsidiaries shall
end on November 30, 2006, and he hereby resigns from all such positions,
effective on the Separation Date. 
Executive shall take such actions reasonably requested by the Company in
furtherance of the foregoing to evidence the end of such employment and such
service as a director, Secretary and/or officer.

(b)           For purposes of this Agreement, “Parent” shall mean
Kenexa Corporation and “Subsidiaries” shall mean any corporation or
other entity of which the securities or other ownership interests having the
voting power to elect a majority of the board of directors or other governing
body are, at the time of determination, owned by the Company or Parent,
directly or through one of more Subsidiaries.

2.             Compensation and Benefits.  In connection with Executive’s separation
from employment with the Company and conditioned on the effectiveness and
non-revocation of the Release (as defined in Section 5 below), the Company
shall pay or cause to be paid or provided to the Executive the following
amounts and benefits:

(a)           Salary.  Executive
shall be entitled to receive his base salary (at a rate of $250,000 per annum) through
the Separation Date.  As payment of
severance under this Agreement, Executive shall be entitled to receive his base
salary (at a rate of $250,000 per annum) until November 29, 2008 (the “Payment
End Date”).  Executive shall not be
entitled to receive any amounts of base salary or severance for
any period after the Payment End Date. 
Such severance payments shall be made semi-monthly in accordance with
the Company’s current payroll practices. 
Executive acknowledges that he has no accrued unused vacation days or
paid time off days and shall not accrue any additional paid time off or
vacation pay.

(b)           Expenses.  There
will be no expense reimbursement.

(c)           Bonus.  Executive shall be entitled to receive in
accordance with the Bonus Plan dated January 27, 2006  any amounts that may be due to him pursuant to
his Bonus Plan in

 

respect of a bonus for the calendar year 2006 as if he remained
employed through December 31, 2006, payable at the same time as comparable
bonuses for such year are paid to continuing executives of the Company.

(d)           Vested
Stock Options.  As additional payment
of severance payments under this Agreement, Executive shall be entitled to have
options to purchase twenty-eight thousand three hundred thirty-three (28,333)
shares of the stock option grant dated June 24, 2005 treated as fully vested (“Vested
Options”). The Vested Options shall be subject to the terms and conditions of
the 2005 Equity Incentive Plan (“Plan”) (except the vesting provisions).
Executive shall be entitled to have any restrictive legend attached to
Executive’s shares of restricted stock and the shares underlying his Vested
Options removed beginning on March 1, 2007 . 
All other grants of stock options which have not vested as of the
Separation Date in accordance with the Plan or any other equity compensation
plan maintained by the Company and any applicable award agreement are hereby
forfeited and cancelled.

(e)           Withholding.  All amounts payable to Executive as
compensation hereunder shall be subject to all required and customary
withholding by the Company.

(f)            Insurance.  Until May 29, 2010, the Company shall, at its
expense, pay the employer portion of the premiums for group medical insurance at
the level and with the coverage in effect for Executive and his dependents
immediately prior to the Separation Date; provided, however, that if the
Company is unable to provide coverage as described in this paragraph 2(f), the
Company shall pay to Executive the amounts equal to the employer portion of
such premiums which it would have paid (and at the same times it would have
paid them) had such coverage been available.  The
foregoing shall satisfy any obligation of the Company to Executive under the provisions
of the Consolidated Omnibus Budget Reconciliation Act (“COBRA”). The Company’s
obligation hereunder with respect to the foregoing benefits shall be limited to
the extent that the Executive obtains any such benefits pursuant to a
subsequent employer’s benefit plans, in which case the Company may reduce the
coverage of any benefits it is required to provide the Executive hereunder so
long as the aggregate coverage and benefits of the combined benefit plans is no
less favorable to the Executive than the coverages and benefits required to be
provided hereunder.  This subsection (f)
shall be interpreted so as to preclude any other benefits to which the
Executive, his dependents or beneficiaries might otherwise be entitled under
any of the Company’s employee benefit plans, programs or practices following
the separation of employment of the Executive except as the Executive’s claim
as to the balance in the Company’s 401(k) Plan and as to benefits set forth
herein.

(g)           The Company shall obtain a Tail for Executive on, or
otherwise provide to Executive, D&O Insurance coverage for a period of two
(2) years after the Separation Date in an amount not less  than the current coverage.

(h)           Transition Benefits.For the period commencing on the
Separation Date and ending on November 29, 2007, the  Company will reimburse Executive for the
reasonable  cost, not in excess of $3,000
per month, of outplacement, executive office and e-mail services. In addition,
the Company will maintain Executive’s e-mail account through June 30, 2007,
with an out-of-office reply message directing Company inquiries to the
appropriate e-mail address at the Company and providing Executive’s e-mail and
phone number for personal inquiries to Executive.

(i)            Laptop. 
Kenexa hereby conveys to Executive title to the laptop computer “as is”
for the sum of $1.00

 

(j)            Company Property. 
Upon request by the Company at any time, Executive will promptly destroy
or return to the Company all property, records and files of the Company or
containing Company information in his possession, including on his laptop.

3.             Confidential Information.

(a)           Obligation to Maintain Confidentiality.  Executive acknowledges that the continued
success of the Company and its Parent and Subsidiaries, depends upon the use
and protection of a large body of confidential and proprietary
information.  All of such confidential
and proprietary information existing prior hereto, now existing or to be
developed in the future will be referred to in this Agreement as “Confidential
Information.”  Confidential
Information will include all information of any sort (whether merely remembered
or embodied in a tangible or intangible form) that is (i) related to the
Company’s, Parent’s or Subsidiaries’ current or potential business and (ii) is
not generally available to the public. 
Confidential Information includes, without specific limitation, the
information, observations and data obtained by Executive during the course of
his employment by the Company, the Parent and its Subsidiaries concerning the business
and affairs of the Company, the Parent and its Subsidiaries, information
concerning acquisition opportunities in or reasonably related to the Company’s,
the Parent’s or its Subsidiaries’ business or industry of which Executive
becomes aware during such employment, the persons or entities that are current,
former or prospective suppliers or customers of any one or more of them during
Executive’s employment, as well as development, transition and transformation
plans, methodologies and methods of doing business, strategic, marketing and
expansion plans, including plans regarding planned and potential sales,
financial and business plans, pricing, employee lists and telephone numbers,
locations of sales representatives, new and existing programs and services,
prices and terms, customer service, integration processes, requirements and
costs of providing service, support and equipment.  Therefore, Executive agrees that he shall not
disclose to any unauthorized person or use for his own account any of such Confidential
Information, unless and to the extent that any Confidential Information is
required to be disclosed pursuant to any applicable law or court order.  Executive agrees to deliver to the Company
all memoranda, notes, plans, records, reports and other documents (and copies
thereof) relating to the business of the Company, the Parent or Subsidiaries
(including, without limitation, all Confidential Information) that he may then
possess or have under his control.

(b)           Ownership of Intellectual Property.  Executive agrees to make prompt and full
disclosure to the Company, the Parent or Subsidiaries, as the case may be, of
all ideas, discoveries, trade secrets, inventions, innovations, improvements,
developments, methods of doing business, processes, programs, designs,
analyses, drawings, reports, data, software, firmware, logos and all similar or
related information  (whether or not
patentable and whether or not reduced to practice) that relate to the Company’s,
Parent’s or Subsidiaries’ actual or anticipated business, research and
development, or existing or future products or services and that are conceived,
developed, acquired, contributed to, made, or reduced to practice by Executive
(either solely or jointly with others) while employed by the Company, the
Parent or Subsidiaries (collectively, “Work Product”).  Any copyrightable work falling within the
definition of Work Product shall be deemed a “work made for hire” under the
copyright laws of the United States, and ownership of all rights therein shall vest
in the Company, the Parent or Subsidiaries. 
To the extent that any Work Product is not deemed to be a “work made for
hire,” Executive hereby assigns and agrees to assign to the Company, Parent or
such Subsidiary all right, title and interest, including without limitation,
the intellectual property rights that Executive may have in and to such Work
Product.  Executive shall promptly
perform all actions reasonably requested by the Board to establish and confirm
the Company’s, Parent or such Subsidiary’s ownership (including, without
limitation, providing testimony and executing assignments, consents, powers of
attorney, and other instruments).

 

(c)           Third Party Information. Executive understands that
the Company, Parent and its Subsidiaries have received from third parties
confidential or proprietary information that is not generally available to the
public (“Third Party Information”) subject to a duty on the Company’s,
Parent’s and its Subsidiaries’ part to maintain the confidentiality of such
information and to use it only for certain limited purposes.  Without in any way limiting the provisions of
Section 3(a) above, Executive will hold Third Party Information in the
strictest confidence and will not disclose to anyone (other than personnel of
the Company, Parent or its Subsidiaries who need to know such information in
connection with their work for the Company, Parent or such Subsidiaries) or
use, such Third Party Information unless expressly authorized by a member of
the Board in writing or required to be disclosed pursuant to any applicable law
or court order, provided that prior written notice of and an opportunity to
object to such requirement has been provided in writing in accordance with
Section 7 hereof.

4.             Non-Compete, Non-Solicitation.

 (a)          Executive
acknowledges that during the course of his employment with the Company, the Parent
and Subsidiaries he became familiar with the Company’s, Parent’s and Subsidiaries’
trade secrets and with other Confidential Information concerning the Company,
the Parent, the Subsidiaries and their predecessors, that he was given access
to the Company’s, Parent’s and Subsidiaries’ customers and prospective
customers and to the Company’s, Parent’s and Subsidiaries’ goodwill with
customers and prospective customers, that he was provided with specialized
skills and training, and that his services were and are of special, unique and
extraordinary value to the Company, the Parent and the Subsidiaries. In further
consideration of the payments and benefits to him under this Separation
Agreement,  Executive agrees that, from
the date of this Agreement until November 29, 2008  (the “Noncompete Period”), he shall not
directly or indirectly own any interest in, manage, control, participate in,
consult with, render services for, or in any manner engage in any business
competing with the Employment Process Outsourcing and Human Capital Management
Software and Services businesses of the Company, the Parent or the Subsidiaries
(including, without limitation, employee surveys, pre-employment skills and
behavioral assessments, structured interviewing, talent management software
applications, HR analytics software, performance management software,
onboarding software, and exit interviewing) , as such businesses exist or were
in process during his employment by the Company, the Parent and the
Subsidiaries (collectively, the “Restricted Business”), within any geographical
area in which the Company or its Subsidiaries engage or plan to engage in such
businesses. Executive acknowledges that the Restricted Business is global in
scope. Nothing herein shall prohibit Executive from being a passive owner of
not more than 2% of the outstanding stock of any class of a corporation which
is publicly traded, so long as Executive has no active participation in the
business of such corporation.

(b)           During the Noncompete Period, Executive shall not directly
or indirectly through another person or entity (i) induce or attempt to induce
any employee of the Company, the Parent or any Subsidiary to leave the employ
of the Company, the Parent or such Subsidiary, or in any way interfere with the
relationship between the Company, the Parent or any Subsidiary and any employee
thereof, (ii) hire any person who was an employee of the Company, the Parent or
any Subsidiary at any time during his employment by the Company, the Parent and
its Subsidiaries or (iii) induce or attempt to induce any customer, supplier,
licensee, licensor, franchisee or other business relation of the Company, the
Parent or any Subsidiary to cease doing business with the Company, the Parent
or such Subsidiary, or in any way interfere with the relationship between any
such customer, supplier, licensee or business relation and the Company, the
Parent or any Subsidiary (including, without limitation, making any negative or
disparaging statements or communications regarding the Company, the Parent or
its Subsidiaries).

(c)           If, at the time of enforcement of this paragraph 4, a
court shall hold that the duration, scope or area of the restrictions stated herein
are unreasonable under circumstances then

 

existing, the parties agree that the maximum
duration, scope or area reasonable under such circumstances shall be
substituted for the stated duration, scope or area and that the court shall be
allowed to revise the restrictions contained herein to cover the maximum
period, scope and area permitted by law. 
Executive acknowledges that the restrictions contained in this paragraph
4 are reasonable, that he has received good and valuable consideration for said
restrictions, and that he has reviewed the provisions of this Agreement with
his legal counsel.

(d)           In the event of the breach by Executive of any of the
provisions of this paragraph 4, the Company will immediately cease making any
further payments under paragraph 2(a), the Company will immediately cease
Executive’s benefits and entitlements under paragraphs 2(f) and 2(h), and all then
outstanding Vested Options not exercised on the date of Executive’s breach
shall thereupon terminate. Executive and Company acknowledge that the cessation
and termination set forth in the preceding sentence are not an  estimate of or an agreement as to the damages
that would be caused by any breach of Executive’s obligations under any
provisions of this paragraph 4. Executive further acknowledges that the Company
has agreed to provide the payments and benefits under paragraph 2 in exchange
for Executive’s agreement to the provisions of this paragraph 4. In the event
of the breach  by Executive of any of the
provisions of this paragraph 4, the Company would suffer irreparable harm, and
in addition and supplementary to other rights and remedies existing in its
favor (including, without limitation, the right to the cessation and
termination set forth in the first sentence of this paragraph 4(d) and the
right to recover damages from Executive caused by any breach by Executive of
this paragraph 4), the Company shall be entitled to specific performance and/or
injunctive or other equitable relief from a court of competent jurisdiction in order
to enforce or prevent any violations of the provisions hereof (without posting
a bond or other security).  In addition,
in the event of a breach  by Executive of
this paragraph 4, the Noncompete Period shall be tolled until such breach or
violation has been duly cured.

(e)           Nothing herein shall preclude
Executive from  providing executive
search services to companies which do not engage in the Restricted Business,
provided that Executive complies with the provisions of paragraph 3 hereof.

5.             Release.  Executive shall execute the general release
dated as of the date hereof (the “Release”) attached as Exhibit A hereto.

6.             Executive’s Representations.  Executive hereby represents and warrants to
the Company that (i) the execution, delivery and performance of this Agreement
by Executive do not and shall not conflict with, breach, violate or cause a
default under any contract, agreement, instrument, order, judgment or decree to
which Executive is a party or by which he is bound, (ii) Executive is not a
party to or bound by any employment agreement, noncompete agreement or
confidentiality agreement with any other person or entity and (iii) upon the
execution and delivery of this Agreement by the Company, this Agreement shall
be the valid and binding obligation of Executive, enforceable in accordance
with its terms.  Executive hereby
acknowledges and represents that he has consulted with independent legal
counsel regarding his rights and obligations under this Agreement and that he
fully understands the terms and conditions contained herein.

7.             Notices.  Any notice provided for in this Agreement
shall be in writing and shall be either personally delivered, sent by reputable
overnight courier service or mailed by first class mail, return receipt
requested, to the recipient at the address below indicated:

Notices to Executive:

Eliot H. Chack

21 Canal Run West

Washington
Crossing, PA 18977

 

With a copy to:

Stephen G. Console

Console Law Offices LLC

1525 Locust Street, 9th floor

Philadelphia,
PA 9102

Notices to the Company:

Kenexa Technology, Inc.

650 East Swedesford Road

Wayne, PA 19087

Attn:  Chief
Executive Officer

With
a copy to: General Counsel

or such other address or to the attention of such other person as the
recipient party shall have specified by prior written notice to the sending
party.  Any notice under this Agreement
shall be deemed to have been given when so delivered or received.

8.             Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provision of this Agreement or any action in any other
jurisdiction, but this Agreement shall be reformed, construed and enforced in
such jurisdiction as if such invalid, illegal or unenforceable provision had
never been contained herein.

9.             Complete Agreement.  This Agreement, those documents expressly
referred to herein and other documents of even date herewith, including the
Release referred to in Section 5, embody the complete agreement and
understanding among the parties and supersede and preempt any prior
understandings, agreements or representations by or among the parties, written
or oral, which may have related to the subject matter hereof in any way.

10.           Non-Disparagement. The parties
agree that they will not disparage each other orally or in writing. Any
violation of this provision shall constitute a material breach of this
Agreement. In the event of any such violation, the other party may present this
Agreement to any court of competent jurisdiction for purposes of obtaining
injunctive or other appropriate monetary relief.

11.           No Strict Construction.  The language used in this Agreement shall be
deemed to be the language chosen by the parties hereto to express their mutual
intent, and no rule of strict construction shall be applied against any party.

12.           Counterparts.  This Agreement may be executed in separate
counterparts and delivered by facsimile, each of which is deemed to be an
original and all of which taken together constitute one and the same agreement.

13.           Successors and Assigns.  This Agreement is intended to bind and inure
to the benefit of and be enforceable by Executive, the Company, Parent,
Subsidiaries and their respective heirs, successors, assigns, predecessors,
parent, holding companies, subsidiaries, affiliates and related entities, except
that Executive may not assign his rights or delegate his duties or obligations
hereunder without the prior written consent of the Company.

 

14.           Choice of Law.  All issues and questions concerning the
construction, validity, enforcement and interpretation of this Agreement and
the exhibits and schedules hereto shall be governed by, and construed in
accordance with, the laws of the Commonwealth of Pennsylvania, without giving
effect to any choice of law or conflict of law rules or provisions that would
cause the application of the laws of any jurisdiction other than the Commonwealth
of Pennsylvania.

15.           Amendment and Waiver.  The provisions of this Agreement may be
amended or waived only with the prior written consent of the Company and Executive, and no course of conduct or
course of dealing or failure or delay by any party hereto in enforcing or
exercising any of the provisions of this Agreement shall affect the validity,
binding effect or enforceability of this Agreement or be deemed to be an
implied waiver of any provision of this Agreement.

16.           Payments on Behalf of Executive.  The Company, the Parent and the Subsidiaries
shall be entitled to deduct or withhold from any amounts owing from the Company,
the Parent or any of Subsidiaries to Executive any federal, state, local or
foreign withholding taxes, excise tax, or employment taxes (“Taxes”)
imposed with respect to Executive’s compensation or other payments from the
Company, Parent or any of Subsidiaries or Executive’s ownership interest in the
Company (including, without limitation, wages, bonuses, dividends, the receipt
or exercise of equity options and/or the receipt or vesting of restricted
equity).

17.           Waiver of Jury Trial.  AS A SPECIFICALLY BARGAINED FOR INDUCEMENT
FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING THE
OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY HERETO EXPRESSLY WAIVES THE
RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING TO OR ARISING IN
ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.

18.           Executive’s Cooperation.  Executive shall reasonably cooperate with the
Company, the Parent and the Subsidiaries in any internal investigation or
administrative, regulatory or judicial proceeding as reasonably requested by
the Company (including, without limitation, Executive being available to the
Company upon reasonable notice for interviews and factual investigations,
appearing at the Company’s request to give testimony without requiring service
of a subpoena or other legal process, volunteering to the Company all pertinent
information and turning over to the Company all relevant documents which are or
may come into Executive’s possession, all at times and on schedules that are
reasonably consistent with Executive’s other permitted activities and
commitments). In the event the Company requires Executive’s cooperation in
accordance with this paragraph, the Company shall reimburse Executive for
reasonable expenses (including lodging and meals, upon submission of receipts).

19.           Arbitration.  Except with respect to disputes or claims
under paragraphs 3, 4 or 10 hereof (which may be pursued in any court of
competent jurisdiction as specified below and with respect to which each party
shall bear the cost of his or its own attorney’s fees and expenses except as
otherwise required by applicable law), each party hereto agrees to binding
arbitration with the American Arbitration Association (“AAA”) in accordance
with the AAA Employment Dispute Resolution Rules as the sole and exclusive method
for resolving any claim
or dispute (“Claim”) arising out of or relating to the rights and obligations
acknowledged and agreed to in this Agreement and the employment of Executive by
the Company, the Parent and Subsidiaries (including, without limitation,
disputes and claims regarding employment discrimination, termination and
discharge), whether such Claim arose or the facts on which such Claim is based
occurred prior to or after the execution and delivery of adoption of this
Agreement.  The parties agree that the
result of any arbitration hereunder shall be final, conclusive and binding on
all of the parties.  Nothing in this

 

paragraph shall prohibit a party hereto from
instituting litigation to enforce any such final determination .  Each party hereto irrevocably submits to the
jurisdiction of the United States District Court for the Eastern District of
Pennsylvania and any Pennsylvania state court of competent jurisdiction sitting
in Chester County, Pennsylvania, and agrees that such courts shall be the
exclusive forum with respect to disputes and claims under paragraphs 3, 4 and
10 and for the enforcement of any final arbitration determination hereunder.
Each party hereto irrevocably consents to service of process by registered mail
or personal service .

20.           Attorney’s Fees.  In connection with any action brought under
this Agreement, the prevailing party will be entitled to reasonable attorney’s
fees and costs, in addition to such legal or equitable relief that is
available.

21.           Section and Headings.  The division of this Agreement into sections
and the insertion of headings are for the convenience of reference only and
shall not affect the construction or interpretation of this Agreement.  The terms “this Agreement”, “hereof”, “hereunder”
and similar expressions refer to this Agreement and not to any particular
section or other portion hereof.  Unless
something in the subject matter or context is inconsistent therewith,
references to sections and clauses are to sections and clauses of this
Agreement.

22.           Number.  In this Agreement, words importing the
singular number only shall include the plural and vice versa, and words
importing the masculine gender shall include the feminine and neuter genders
and vice versa, and words importing persons shall include individuals,
partnerships, associations, trusts, unincorporated organizations and
corporations.

23.           Independent Advice.  The Company and the Executive acknowledge and
agree that they have each obtained independent legal advice in connection with
this Agreement and they further acknowledge and agree that they have read,
understand and agree with all of the terms hereof and that they are executing
this Agreement voluntarily and in good faith. Executive consents to the
representation of the Company, Parent and Subsidiaries by Pepper Hamilton LLP
in connection with this Agreement and any and all matters relating to
Executive, and waives any and all potential conflicts of interest relating
thereto.

24.           Copy of Agreement.  The Executive hereby acknowledges receipt of
a copy of this Agreement duly signed by the Company.

25.           Currency.  All dollar amounts set forth or referred to
in this Agreement refer to U.S. currency.

26.           Effectiveness.  Once this Agreement has been duly executed
and delivered by each party hereto, all of the provisions shall become
effective.    *   
*    *    *

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement on the date first written above.

	
  

  	
  Kenexa
  Technology, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ NOORUDDIN
  KARSAN

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   /s/  ELIOT H. CHACK

  
	
   

  	
  Eliot
  Chack, also known as Elliot Clark

  

 

 

Exhibit A

CONFIDENTIAL RELEASE AGREEMENT

1.             This Confidential
Release Agreement (the “Agreement”) is made between Eliot Chack, also known as
Elliot Clark, (the “Executive”) and Kenexa Technology, Inc. (the “Company”).

2.             In  consideration of and subject to the
performance by the Company of its obligations under the Separation Agreement,
entered into on November , 2006 (the “Separation Agreement”), the Executive on
his/her own behalf and on behalf of his/her heirs, executors, administrators,
successors and assigns hereby freely, voluntarily, and finally and forever
release, remise and discharge KENEXA TECHNOLOGY, INC.,
a Pennsylvania corporation (the “Company”), Kenexa Corporation and each of their
predecessors, successors (by merger or otherwise), holding companies,
subsidiaries, affiliates, related entities and assigns, together with, in their
capacities as such, each and every of their officers, directors, shareholders,
partners, managers, employees, agents, attorneys, and the heirs,
representatives and executors of same, (hereinafter collectively the “Releasees”)
from any and all actions and causes of action, complaints, charges, claims and
demands, suits, damages, costs, attorneys’ fees, expenses, contracts,
agreements, plans, obligations, compensation and liability whatsoever, in law
or in equity, whether the same are now known or unknown, of any nature
whatsoever, up to and including the later of the date of this Agreement and the
Separation Date (as defined in the Separation Agreement), including without
limitation, claims under the Age Discrimination in Employment Act of 1967, the
Fair Labor Standards Act, the Executive Retirement Income Security Act, Title
VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and
under any other federal, state or local law, rule or regulation for alleged
employment discrimination, and claims for wages and benefits, for wrongful
termination, constructive discharge, implied covenants of good faith and fair
dealing, breach of contract, fraud, intentional infliction of emotional
distress, invasion of privacy, defamation, violation of public policy,
retaliation, or other tort claim, as well as claims for attorney’s fees and
costs which Executive or anyone claiming by, through or under Executive in any
way might have or could have against he Releasees, including, but not limited
to, any claim which has been made or could have been made in a complaint filed
before the Equal Employment Opportunity Commission, or otherwise.

3.             In consideration of
and subject to the performance by the Employee of his obligations under the
Separation Agreement,  the Company hereby
freely, voluntarily, and finally and forever releases, remises and discharges
the Executive, and each and every of his attorneys, and his heirs,
representatives and executors of same, (hereinafter collectively the “Releasees”)
from any and all actions and causes of action, complaints, charges, claims and
demands, suits, damages, costs, attorneys’ fees, expenses, contracts,
agreements, plans, obligations, compensation and liability whatsoever, in law
or in equity, of any nature whatsoever, known up to and including the later of
the date of of this Agreement and the Separation Date.

4.             Executive and
Company agree that each will not institute or pursue or aid any legal
proceedings, either individually or as a class representative, against the
other as to any matter released herein.

5.             Executive and
Company intend that this Agreement shall not be subject to any claim of mistake
of fact, and that it expresses a full, complete and final settlement of a
liability claimed and denied, regardless of the adequacy or inadequacy of the
consideration given. Executive and Company agree that there is absolutely no
agreement or reservation related to the subject matter hereof not clearly
expressed herein, that the consideration stated herein is all that Executive,
Company and their attorneys, past and present, are ever to receive for all
claims to damages, costs, attorneys fees and other expenses, and that Executive
and Company are entering into this Agreement with the full knowledge that this
Agreement covers all possible claims that Executive and

 

Company might have against the other, whether oral or written, as of
the date hereof and as of the Separation Date.

6.             It is also
expressly understood that nothing in this Agreement is to be construed as an
admission of liability or wrongdoing by the Company or any of the Releasees.

7.             Executive further
agrees that he/she has and will maintain the terms of this Agreement and the
Separation Agreement in complete confidence and to maintain in strict
confidence Kenexa’s trade secrets and confidential and proprietary information.

8.             Executive and
Company  acknowledge  that each is hereby advised in writing to
consult with an attorney prior to signing this Agreement.

9.             Executive and
Company acknowledge that each has not filed any lawsuits, claims, charges or
complaints against the other with any local, state or federal agency or court
prior to the date of the execution hereof.

10.           Executive further
acknowledge that he/she has been offered a period of at least twenty-one (21)
days during which to review and consider this Agreement and shall have seven
(7) days after the date hereof within which to revoke this Agreement by notice
to the Company (“Revocation Period”), with this Agreement not becoming
effective until the Revocation Period has expired.  If Executive chooses to sign this Agreement
in advance of the expiration of twenty-one (21) days, Executive voluntarily
waives the balance of that period. Executive understands that the Company’s
offer is only valid for and must be accepted within twenty-one (21) days from
the date of delivery of this Agreement to Executive.  Executive understands that revocation of this
Agreement must be in writing to Kenexa’s Chief Executive Officer, at 650 East
Swedesford Road, Wayne, PA 19087.

11.           This Agreement shall
be interpreted, construed and enforced in accordance with the laws of the
Commonwealth of Pennsylvania excluding its conflicts of law rules.

12            The provisions of
this Agreement are severable and if any provision of this Agreement is held by
any court to be illegal, invalid or unenforceable, the Agreement shall be
deemed modified to the least extent possible so as to make it valid and
enforceable in a manner most closely approximating the intention of the parties
herein.

13.           This Agreement,
together with the Separation Agreement, contains the entire agreement of the
parties with respect to the subject matter hereof.  It cannot be changed orally, and it
supersedes any and all prior agreements between the parties.

14.           This Agreement shall
not become effective or enforceable until eight (8) days after the date hereof.

15.           This Agreement may
be executed in separate counterparts and delivered by facsimile, each of which
is deemed to be an original and all of which taken together constitute one and
the same agreement.

 

HAVING READ AND FULLY UNDERSTOOD THE TERMS AND
SIGNIFICANCE HEREOF AND INTENDING TO BE LEGALLY BOUND HEREBY AND ACTING
KNOWINGLY AND VOLUNTARILY AND WITHOUT DURESS, COERCION OR UNDUE INFLUENCE OF
ANY KIND, EXECUTIVE has set his/her hand and seal as of this        
day of                      ,
2006.

 

	
  

  	
   (SEAL)

  	
  Witness:

  	
   

  	
   

  
	
  Eliot
  Chack, also known as Elliot Clark

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KENEXA TECHNOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Nooruddin Karsan, Chief Executive

  OfficerExhibit 10.45

FIRST AMENDMENT

TO

REVENUE INTERESTS ASSIGNMENT AGREEMENT 

AND TO

GUARANTY

This FIRST AMENDMENT TO REVENUE
INTERESTS ASSIGNMENT AGREEMENT AND TO GUARANTY (this “Amendment”)
is dated as of November 28, 2006, and is entered into by and among King George
Holdings Luxembourg IIA S.à r.l., a Luxembourg private limited company
(together with its permitted successors and assigns, “King George”),
Acorda Therapeutics, Inc., a Delaware corporation (“Acorda”), and Paul
Royalty Fund II, L.P. (“Guarantor”).

RECITALS

A.            King
George and Acorda are parties to the Revenue Interests Assignment Agreement,
dated as of December 23, 2005 (as amended, modified or supplemented from time
to time, the “Revenue Agreement”).

B.            In
connection with the Revenue Agreement, Guarantor executed that certain
Guaranty, dated as of December 23, 2005, in favor of Acorda (as amended,
modified or supplemented from time to time, the “Guaranty”).

B.            The
parties hereto desire to amend the Revenue Agreement and the Guaranty, subject to
the terms and conditions of this Amendment.

 

 

NOW, THEREFORE, in consideration
of the agreements and provisions herein contained and for other valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties hereto do hereby agree as follows:

Section 1.  Definitions.  Any capitalized term used but not otherwise
defined herein shall have the meaning ascribed to such term in the Revenue
Agreement.

Section 2.  Amendments
to the Revenue Agreement and to the Guaranty.  Each of the Revenue Agreement and the
Guaranty is hereby amended, effective as of the date this Amendment becomes
effective in accordance with Section 5 hereof, as follows:

2.1  Amendment to Section 1.01.  The following definition appearing in Section
1.01 of the Revenue Agreement is hereby amended by deleting such definition
in its entirety and inserting the following new definition in replacement
thereof:

“Applicable
Percentage” shall mean, as of any date of determination, on a Fiscal
Year-by-Fiscal Year basis (or applicable portion thereof in the first and last
Fiscal Years under this Agreement), during the period from October 1, 2005
through and including December 31, 2015:

(a)           prior to the date that the payments
received and retained (i.e., not
refunded by PRF) by PRF under Sections 2.02(b) and 5.08 are less
than the product of (x) 2.1 times (y) the aggregate amount paid by PRF
under Section 2.03, the following:

(i)            with respect to Net Revenues of up
to and including $30,000,000, fifteen percent (15%),

(ii)           with respect to Net Revenues in
excess of $30,000,000 but less than and including $60,000,000, six percent
(6%), and

(iii)          with respect to Net Revenues in excess
of $60,000,000, one percent (1%), and

(b)
          from and after the date that the
payments received and retained (i.e., not
refunded by PRF) by PRF under Sections 2.02(b) and 5.08 are at
least as great as the product of (x) 2.1 times (y) the aggregate amount
paid by PRF under Section 2.03, one percent (1%).

2.2  Amendment to Section 2.03(a).  Sections 2.03(a)(ii) and 2.03(a)(iii)
of the Revenue Agreement are hereby amended by deleting such Sections
2.03(a)(ii) and 2.03(a)(iii) in their entirety and inserting the
following in lieu thereof:

“(ii)         an
additional $5,000,000 (the “Initial Contingent Payment”) payable within
three (3) Business Days of the Effective Date (as defined in the First
Amendment to Revenue Interests Assignment Agreement and to Guaranty);

(iii)          an
additional $5,000,000 (the “Secondary Contingent Payment”) within eleven
(11) Business Days of the earlier of (A) notification from Acorda that it has
closed its accounting books (on an unaudited basis) for the period from January
1, 2006 through and including December 31, 2006 and (B) the public reporting by
Acorda of its audited financial results for the period from January 1, 2006
through and including December 31, 2006, payable if and only if Net Revenues
during such period equal or exceed $25,000,000; and”

2.3  Amendment to Article IV.  Article IV of the Revenue Agreement is
hereby amended by deleting each reference therein to “PRF” (other than the
initial reference thereto) and substituting therefor a like reference to “King
George Holdings Luxembourg IIA S.à r.l.”

 2
 

 

 

2.4  Amendment to Section 4.06.  Section 4.06 of the Revenue Agreement
is hereby amended by deleting the text thereof and inserting in lieu thereof
the following:

“King George Holdings
Luxembourg IIA S.à r.l. and Guarantor will at all times collectively have
access to sufficient funds to satisfy their obligations under Section 2.03
and Section 8.05 as they become due.”

2.5  Amendment to Section 5.02(a).
Section 5.02(a) of the Revenue Agreement is hereby amended by changing
the phrase “proceeding, , offer” to “proceeding, offer”.

2.6  Amendment to Section 5.08(c).  Section 5.08(c) of the Revenue
Agreement is hereby amended by changing the word “received” to “receivable”.

2.7  Amendment to Section 5.15.  Section 5.15 of the Revenue Agreement
is hereby amended by adding the following new text at the end thereof:

“Notwithstanding any provision contained in this Section 5.15 or
otherwise within this Agreement, the proceeds of the Initial Contingent Payment
and of the Secondary Contingent Payment shall be exclusively and promptly used
by Acorda to fund expansion and maintenance of the Acorda sales force in
support of the business plan and commercialization of the Product, including
sales operation and expansion and royalty and/or other payments related to the
acquisition and supply of the Product. 
All of such proceeds shall be used exclusively to support sales and
marketing related specifically and solely to the Product.  Acorda shall not use the Initial Contingent
Payment or the Secondary Contingent Payment for any other current or future
product of Acorda except if such use is ancillary and relates to the use of
proceeds to support, or would in Acorda’s reasonable business judgment, support
the commercialization of the Product. 
Acorda shall not use the Initial Contingent Payment or the Secondary
Contingent Payment for the hiring of a Contract Sales Organization (as defined
below).  “Contract Sales Organization”
shall mean any third party sales organization retained by Acorda to provide
sales representatives to conduct an in person physician detailing program to
promote the Product, other than (i) any such organization or organizations
engaged by Acorda on or prior to November 28, 2006 (provided, that such
engagement is in effect as of November 28, 2006) or (ii) any pharmaceutical or
biopharmaceutical company with which Acorda enters into a co-promotion,
co-marketing or similar agreement relating to the Product.”

2.8  Amendment to Section
8.06(a).  Section
8.06(a) of the Revenue Agreement is hereby amended by adding the words “the
relationship between” after the phrase “deemed to constitute” appearing
therein.

2.9          Amendment to Guaranty.  The Guaranty is hereby amended, and such
amendment is hereby consented to by Acorda, by deleting the last sentence
thereof and inserting in lieu thereof the following:

“This PRF Guaranty shall
survive until the earlier to occur of (i) PRF’s payment of the Secondary
Contingent Payment to Acorda or its designee in accordance with Section
2.03(a)(iii) of the Revenue Interests Agreement, and (ii) to the extent
that the conditions requiring PRF to make the Secondary Contingent Payment in
accordance with Section 2.03(a)(iii) have not been satisfied, the
earliest date by which it shall have been determined that such conditions were
not satisfied, and no claim may be made by Acorda hereunder for PRF Obligations
after such time; provided, that any written claim for satisfaction of
PRF Obligations made and delivered to Paul Royalty Fund prior to such
expiration date shall survive thereafter with respect to such claim.”

Section 3.  Representations
and Warranties of Acorda. 
Acorda hereby represents and warrants to King George the following:

3.1  Corporate Power, Authorization; Binding
Effect.  Acorda has
all necessary power and authority to enter into, execute and deliver this
Amendment and to perform all of the obligations to be performed by it hereunder

 3
 

 

 

and to consummate the transactions contemplated
hereunder.  This Amendment has been duly
authorized, executed and delivered by Acorda and this Amendment constitutes the
valid and binding obligation of Acorda, enforceable against Acorda in
accordance with its terms, subject, as to enforcement of remedies, to
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ rights generally or general equitable principles.

3.2  No Conflict.  Neither the execution and delivery of this
Amendment nor the performance or consummation of the transactions contemplated
hereby will:  (i) contravene, conflict
with, result in a breach or violation of, constitute a default under, or
accelerate the performance provided by, in any material respects any provisions
of: (A) any law, rule, ordinance or regulation of any Governmental Authority,
or any judgment, order, writ, decree, permit or license of any Governmental
Authority, to which Acorda or any of its Subsidiaries or any of their
respective assets or properties may be subject or bound, the breach or
violation of which could reasonably be expected to result in a Material Adverse
Effect; or (B) any Material Contract or any other contract, agreement,
commitment or instrument to which Acorda or any of its Subsidiaries is a party
or by which Acorda or any of its Subsidiaries or any of their respective assets
or properties is bound or committed for which breach, nonperformance or failure
to renew could reasonably be expected to have a Material Adverse Effect; (ii)
contravene, conflict with, result in a breach or violation of, constitute a
default under, or accelerate the performance provided by, any provisions of the
certificate of incorporation or by-laws (or other organizational or
constitutional documents) of Acorda or any of its Subsidiaries; (iii) require
any notification to, filing with, or consent of, any Person or Governmental
Authority; (iv) give rise to any right of termination, cancellation or
acceleration of any right or obligation of Acorda or any of its Subsidiaries or
any other Person or to a loss of any benefit relating to the Revenue Interests
or the Assigned Interests.

Section 4.  Representations
and Warranties of King George Holdings Luxembourg IIA     S.à r.l.  King George Holdings Luxembourg IIA S.à r.l.
hereby represents and warrants to Acorda the following:

4.1  Power, Authorization; Binding Effect.  King George Holdings Luxembourg IIA S.à r.l.
has all necessary power and authority to enter into, execute and deliver this
Amendment and to perform all of the obligations to be performed by it hereunder
and to consummate the transactions contemplated hereunder.  This Amendment has been duly authorized,
executed and delivered by King George Holdings Luxembourg IIA S.à r.l. and this
Amendment constitutes the valid and binding obligation of King George Holdings
Luxembourg IIA S.à r.l., enforceable against King George Holdings Luxembourg
IIA S.à r.l. in accordance with its terms, subject, as to enforcement of
remedies, to bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors’ rights generally or general equitable principles.

4.2  No Conflict.  Neither the execution and delivery of this
Amendment nor the performance or consummation of the transactions contemplated
hereby will:  (i) contravene, conflict
with, result in a breach or violation of, constitute a default under, or
accelerate the performance provided by, in any material respects any provisions
of: (A) any law, rule or regulation of any Governmental Authority, or any
judgment, order, writ, decree, permit or license of any Governmental Authority,
to which King George Holdings Luxembourg IIA S.à r.l. or any of its assets or
properties may be subject or bound; or (B) any contract, agreement, commitment
or instrument to which King George Holdings Luxembourg IIA S.à r.l. is a party
or by which King George Holdings Luxembourg IIA S.à r.l. or any of its assets
or properties is bound or committed; (ii) contravene, conflict with, result in
a breach or violation of, constitute a default under, or accelerate the
performance provided by, any provisions of the organizational or constitutional
documents of King George Holdings Luxembourg IIA S.à r.l.; or (iii) require any
notification to, filing with, or consent of, any Person or Governmental
Authority.

Section 5.  Condition
Precedent.  This
Amendment and the amendments set forth in Section 2 hereof shall be effective
as of the date of this Amendment (the “Effective Date”) upon each party
hereto having executed an original counterpart of this Amendment and delivering
(including by way of facsimile transmission) the same to the other party
hereto.

Section
6.  General Confirmations.

6.1  Continuing Effect.  Except as specifically provided herein, the
Revenue Agreement and the other Transaction Documents shall remain in full
force and effect in accordance with their respective terms and are hereby
ratified and confirmed in all respects.

 4
 

 

 

6.2  No Waiver.  This Amendment is limited as specified and
the execution, delivery and effectiveness of this Amendment shall not operate
as a modification, acceptance or waiver of any provision of the Revenue
Agreement and the other Transaction Documents, except as specifically set forth
herein.

6.3  References.  From and after the Effective Date, (i) all
references in the Revenue Agreement to “this Agreement”, “hereto”, “hereof”, “hereunder”
or words of like import referring to the Revenue Agreement shall mean the
Revenue Agreement as amended hereby and (ii) all references in the Revenue
Agreement, the other Transaction Documents or any other agreement, instrument
or document executed and delivered in connection therewith to “Revenue
Agreement”, “thereto”, “thereof”, “thereunder” or words of like import
referring to the Revenue Agreement shall mean the Revenue Agreement as amended
hereby.

Section
7.  Miscellaneous.

7.1  Governing Law; Jurisdiction.  This Amendment shall be governed by, and
construed, interpreted and enforced in accordance with, the laws of the state
of New York, without giving effect to the principles of conflicts of law
thereof.  Any legal action or proceeding
with respect to this Amendment may be brought in any state or federal court of
competent jurisdiction in the state, county and city of New York.  By execution and delivery of this Amendment,
each party hereto hereby irrevocably consents to and accepts, for itself and in
respect of its property, generally and unconditionally the non-exclusive
jurisdiction of such courts.  Each party
hereto hereby further irrevocably waives any objection, including any objection
to the laying of venue or based on the grounds of forum
non conveniens, which it may now or hereafter have to the bringing
of any action or proceeding in such jurisdiction in respect of this Amendment.

7.2  Severability.  If any provision of this Amendment is held to
be invalid or unenforceable, the remaining provisions shall nevertheless be
given full force and effect unless the invalid provisions are of such essential
importance to this Amendment that it is to be reasonably assumed that the
parties would not have entered into this Agreement without the invalid
provisions. In such event, the parties shall substitute such invalid provisions
with valid ones, which in their economic effect come so close to the invalid
provisions that it can be reasonably assumed that the parties would have
entered into this Amendment also with those substituted provisions.

7.3  Counterparts.  This Amendment may be executed in two or more
counterparts, each of which shall be an original, but all of which together
shall constitute one and the same instrument. 
Any counterpart may be executed by facsimile or pdf signature and such
facsimile or pdf signature shall be deemed an original.

7.4  Headings.  Section headings in this Amendment are
included herein for convenience of reference only and shall not constitute a
part of this Amendment for any other purpose.

7.5  Amendments.  No provision of this Amendment may be
amended, modified, supplemented or waived except in accordance with Section
8.09(a) of the Revenue Agreement.

7.6  Expenses.  Notwithstanding Section 8.14 of the
Revenue Agreement, the maximum amount of costs and expenses of King George
(inclusive of legal fees) incurred in connection with the preparation, execution
and delivery (but not the enforcement) of this Amendment for which Acorda shall
be responsible for reimbursing King George shall be $50,000.

7.7  Notices.  Pursuant to Section 8.03 of the
Revenue Agreement, Acorda is hereby notified that from and after the date of
this Amendment, until further notified by King George in accordance with such Section
8.03, all notices to King George under the Revenue Agreement and the other
Transaction Documents shall be addressed as follows:

King George Holdings Luxembourg IIA S.à r.l.

c/o Paul Capital Partners

140 East 45th Street, 44th Floor

New York, NY 10017

Attention:  Lionel Leventhal, Partner

 5
 

 

 

Facsimile No.:  (646) 264-1101

Email:  lleventhal@paulcap.com

with a copy to:

Paul Royalty Fund II, L.P.

50 California Street, Suite 3000

San Francisco, CA 94111

Attention:  Chief Financial Officer

Facsimile No.:  (415) 283-4301

7.8  Binding Effect; Assignment.  This Amendment shall be binding upon and
inure to the benefit of each party hereto and their respective successors and
permitted assigns, subject to the provisions of Section 8.04 of the
Revenue Agreement.

[SIGNATURE PAGE FOLLOWS]

 6
 

 

 

IN WITNESS WHEREOF, the parties
hereto have caused this Amendment to be executed by their respective officers
thereunto duly authorized, as of the date first above written.

 

	
  Acorda:

  	
  ACORDA THERAPEUTICS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Ron Cohen

  
	
   

  	
   

  	
   

  	
  Name: Ron Cohen

  
	
   

  	
   

  	
   

  	
  Title: President and CEO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  King George:

  	
  KING GEORGE HOLDINGS LUXEMBOURG IIA S.À R.L.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  Paul Capital Management, LLC,

  
	
   

  	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Lionel Leventhal

  
	
   

  	
   

  	
   

  	
  Name: Lionel Leventhal

  
	
   

  	
   

  	
   

  	
  Title: Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Guarantor:

  	
  PAUL ROYALTY FUND II, L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  Paul Capital Royalty Management, LLC

  
	
   

  	
   

  	
   

  	
  Its: General Partner 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  Paul Capital Advisors, LLC

  Its: Manager 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Lionel Leventhal

  
	
   

  	
   

  	
   

  	
  Name: Lionel Leventhal

  
	
   

  	
   

  	
   

  	
  Title: Manager

  
	
   

  	
   

  	
   

  	
   

  

 

 7

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