Document:

Exhibit 10.2

 

 

April 11, 2008

 

Mark Lustig

c/o ActivIdentity Corporation

6623 Dumbarton Circle

Fremont CA 94555

Dear Mark:

 

This letter confirms your
separation from employment with ActivIdentity Corp. (the “Company”) and
proposes an agreement between you and the Company regarding the terms of your
separation.

 

Your employment with the
Company will terminate at the close of business on May 9, 2008. During the
period from the date of this letter through May 9, 2008, you will continue
to serve as an at-will employee and you and the Company will agree upon your
schedule and responsibilities.

 

The remainder of this
letter sets forth the terms of our agreement (the “Agreement”) between
you and the Company regarding separation terms. The purpose of this Agreement
is to establish an amicable arrangement for ending your employment
relationship, including releasing the Company and related persons or entities
from any claims and permitting you to receive separation pay and related
benefits.

 

If you agree to the terms
of this Agreement, you acknowledge that you are entering into this Agreement
voluntarily. It is customary in employment separation agreements for the
departing employee to release the employer from any possible claims, even if
the employer believes, as is the case here, that no such claims exist. Neither
the Company nor you want your employment relationship to end with a dispute. By
entering into this Agreement, you understand that the Company is not admitting
in any way that it violated any legal obligation that it owed to you.

 

With those
understandings, you and the Company agree as follows:

 

1.                                       Termination of Employment

 

This confirms that your
employment with the Company ends effective on May 9, 2008 (the “Termination
Date”), or the date of the fiscal 2008, second quarterly earnings release
for ActivIdentity, whichever is later. You will remain an at-will employee
through the Termination Date. You will continue to perform your regular job
duties and other requested tasks through the Termination Date on such schedule
as you and the Company may agree. However, the Company understands that you
will be seeking alternative employment during this period. You confirm that you
will resign from any and all other positions that you hold with the Company as
an officer, director or otherwise effective on the Termination Date. You
further confirm that you

 

	
  Actividentity

  6623 Dumbarton Circle  

  Fremont, CA 94555

  	
   

  	
  Tel 510 574 0100 

  Fax 510 574 0139 info@actividentity.com

  	
   

  	
  www.actividentity.com

  

 

 

1

 

will resign from any and
all positions that you hold with any affiliate of the Company effective on the
Termination Date.

 

2.                                       Separation Pay

 

On
the later of (i) the Termination Date, or (ii) the expiration of the
revocation period set forth in Section 20 of this Agreement, the Company
will pay you $85,937, net of applicable withholding taxes. This amount includes
a pro rated bonus for fiscal 2008, which is being paid to you in lieu of any
bonus payment for which you would otherwise have been eligible.

 

3.                                       Equity Awards

 

All
equity awards that you hold to purchase or otherwise acquire shares of the
Company’s common stock pursuant to the Company’s 2004 Equity Incentive Plan
(the “Plan”) that are unvested as of the Termination Date will lapse on
that date and will no longer be exercisable. All stock options vested as of the
Termination Date (all of which are listed on Schedule A hereto) will be
extended and remain exercisable until May 9, 2009 (or above date),
pursuant to the terms of the Plan.

 

This
Section 3 is not intended to modify in any respect the rights to which you
would otherwise be entitled if you were not to agree to this Agreement or the
terms governing stock options. The above summary is set forth solely to confirm
certain information concerning stock options.

 

4.                                       Tax Treatment

 

The
Company shall undertake to make deductions, withholdings and tax reports with
respect to payments and benefits under this Agreement to the extent that it
reasonably and in good faith determines that it is required to make such
deductions, withholdings and tax reports. Payments under this Agreement shall
be in amounts net of any such deductions or withholdings. Nothing in this
Agreement shall be construed to require the Company to make any payments to
compensate you for any adverse tax effect associated with any payments or
benefits or for any deduction or withholding from any payment or benefit.

 

5.                                       Return of Property

 

You
confirm that you will return to the Company, on or before the Termination Date,
all Company property, including, without limitation, computer equipment,
software, keys and access cards, credit cards, files and any documents
(including computerized data and any copies made of any computerized data or
software) containing information concerning the Company, its business or its
business relationships (in the latter two cases, actual or prospective). You
also commit to deleting and finally purging any duplicates of files or
documents that may contain Company information from any computer or other
device that remains your property after the Termination Date. In the event that
you discover that you continue to retain any such property, you shall return it
to the Company immediately.

 

 

2

 

6.                                       Confidential Information

 

You agree to comply with
the terms of your obligations under the Proprietary Information and Inventions
Agreement between you and the Company (“PIIA”), a copy of which is
attached hereto as Exhibit A.

 

7.                                       Release of Claims

 

In consideration for,
among other terms, the payments and benefits described in Section 2 and
the extension of the stock options as contemplated in Section 3, to which
you acknowledge you would otherwise not be entitled, you voluntarily release
and forever discharge the Company, its affiliated and related entities, its and
their respective predecessors, successors and assigns, its and their respective
employee benefit plans and fiduciaries of such plans, and the current and
former officers, directors, shareholders, employees, attorneys, accountants and
agents of each of the foregoing in their official and personal capacities
(collectively referred to as the “Releasees”) generally from all claims,
demands, debts, damages and liabilities of every name and nature, known or
unknown (“Claims”) that, as of the date when you sign this Agreement,
you have, ever had, now claim to have or ever claimed to have had against any
or all of the Releasees. This release includes, without limitation, all Claims:

 

·                             relating
to your employment by and your termination from employment with the Company;

 

·                             of
wrongful discharge;

 

·                             of
breach of contract;

 

·                             of
retaliation or discrimination under federal, state or local law (including,
without limitation, Claims of age discrimination or retaliation under the Age
Discrimination in Employment Act, Claims of disability discrimination or
retaliation under the Americans with Disabilities Act, and Claims of
discrimination or retaliation under Title VII of the Civil Rights Act of 1964);

 

·                             under
any other federal or state statute;

 

·                             of
defamation or other torts;

 

·                             of
violation of public policy;

 

·                             for
wages, bonuses, incentive compensation, stock, stock options, vacation pay or
any other compensation or benefits; and

 

·                             for
damages or other remedies of any sort, including, without limitation,
compensatory damages, punitive damages, injunctive relief and attorney’s fees;

 

provided,
however, that this release shall not affect (a) your
vested rights under the Company’s Section 401(k) plan, (b) any
rights or claims to indemnity under any statute, the Company’s Bylaws, or the
Company’s policies or insurance policies, or any other source, (c) any
claim that by applicable law cannot be waived by means of a private agreement
without judicial or government supervision or approval, or (d) your rights
under this Agreement.

 

8.                                       Civil Code § 1542 Waiver

 

You acknowledge that you
are familiar with Section 1542 of the California Civil Code, which reads
as follows:

 

 

3

 

California Civil Code Section 1542

 

A general release does
not extend to claims which the creditor does not know or suspect to exist in
his or her favor at the time of executing the release, which if known by him or
her must have materially affected his or her settlement with the debtor.

 

You agree that you are
releasing unknown claims and waving all rights that you may have under Section 1542
of the Civil Code of California or under any statute or common law principle of
similar effect.

 

9.                                       Non-disparagement

 

You agree that you will
not make any written or oral communications that could reasonably be considered
to be disparaging of the Company in any respect, including, but not limited to,
the Company’s business, technology, products, executives, officers, directors,
former executives and directors, consultants or agents.

 

The Company agrees that
its directors and officers will not make any written or oral communications
that could reasonably be considered to be disparaging of you.

 

These non-disparagement
obligations shall not in any way affect your obligation or the obligations of
the above-referenced persons to testify truthfully in any legal proceeding.

 

10.                                 Information Concerning Actual, Potential
or Alleged Financial Irregularities

 

You represent that you
are not aware of any actual, potential or alleged financial irregularities
concerning the Company.

 

11.                                 Future Cooperation

 

You agree to cooperate
reasonably with the Company and all of its affiliates (including its and their
outside counsel) in connection with the contemplation, prosecution and defense
of all phases of existing, past and future litigation about which the Company
believes you may have knowledge or information (“litigation cooperation
services”). You further agree to make yourself available at mutually
convenient times during and outside of regular business hours as reasonably
deemed necessary by the Company’s counsel. You agree to appear without the
necessity of a subpoena to testify truthfully in any legal proceedings in which
the Company calls you as a witness. For your time to provide litigation
cooperation services at the Company’s request after May 9, 2008 (with the
exception of the time that you testify, for which you will not be paid), the
Company shall pay you $150 per hour. You shall be required to submit
documentation regarding the amount of time you spend providing such litigation
cooperation services. The Company shall also reimburse you for any pre-approved
reasonable business travel expenses that you incur on the Company’s behalf as a
result of your litigation cooperation services, after receipt of appropriate
documentation consistent with the Company’s business expense reimbursement
policy.

 

 

4

 

12.                                 Suspension or Termination of Payments

 

In the event that you
fail to comply with any of your obligations under this Agreement, in addition
to any other legal or equitable remedies it may have for such breach the
Company shall have the right to terminate or suspend its payments to you under
this Agreement. The termination or suspension of such payments in the event of
such breach by you will not affect your continuing obligations under this
Agreement. Notwithstanding the foregoing, this provision shall not apply to the
extent that your breach of this Agreement consists of initiating a legal action
in which you contend that the release set forth in Section 7 is invalid,
in whole or in part, due to the provisions of 29 U.S.C. § 626(f).

 

13.                                 Legal Representation

 

This Agreement is a
legally binding document and your signature will commit you to its terms. You
acknowledge that you have been advised to discuss all aspects of this Agreement
with your attorney, that you have carefully read and fully understand all of
the provisions of this Agreement and that you are voluntarily entering into
this Agreement.

 

14.                                 Absence of Reliance

 

In signing this
Agreement, you are not relying upon any promises or representations made by
anyone at or on behalf of the Company.

 

15.                                 Enforceability

 

If any portion or
provision of this Agreement (including, without limitation, any portion or
provision of any section of this Agreement) shall to any extent be declared
illegal or unenforceable by a court of competent jurisdiction, then the
remainder of this Agreement, or the application of such portion or provision in
circumstances other than those as to which it is so declared illegal or
unenforceable, shall not be affected thereby, and each portion and provision of
this Agreement shall be valid and enforceable to the fullest extent permitted
by law.

 

16.                                 Waiver

 

No waiver of any
provision of this Agreement shall be effective unless made in writing and
signed by the waiving party. The failure of any party to require the
performance of any term or obligation of this Agreement, or the waiver by any
party of any breach of this Agreement, shall not prevent any subsequent
enforcement of such term or obligation or be deemed a waiver of any subsequent
breach.

 

17.                                 Enforcement

 

(a)           Jurisdiction. You and the
Company hereby agree that the Superior Court of the State of California,
Alameda County and the United States District Court for the Northern District
of California shall have the exclusive jurisdiction to consider any matters
related to this Agreement, including without limitation any claim for violation
of this Agreement. With respect to any such court action, you (i) submit
to the jurisdiction of such courts, (ii) consent to service of process,

 

 

5

 

and (iii) waive any
other requirement (whether imposed by statute, rule of court or otherwise)
with respect to personal jurisdiction or venue.

 

(b)           Relief.
You agree that it would be difficult to measure any harm caused to the Company
that might result from any breach by you of your promises set forth in Sections
5, 6, 7, 8, 9, 10 or 11 and that in any event money damages would be an
inadequate remedy for any such breach. Accordingly, you agree that if you
breach, or propose to breach, any portion of your obligations under Sections 5,
6, 7, 8, 9, 10 or 11, the Company shall be entitled, in addition to all other
remedies it may have, to an injunction or other appropriate equitable relief to
restrain any such breach, without showing or proving any actual damage to the
Company and without the necessity of posting a bond. In the event that the
Company prevails in any action to enforce Sections 5, 6, 7, 8, 9, 10 or 11,
then you also shall be liable to the Company for attorney’s fees and costs
incurred by the Company in enforcing such provision(s).

 

18.                                 Governing Law; Interpretation

 

This Agreement shall be
interpreted and enforced under the laws of the State of California, without
regard to conflict of law principles. In the event of any dispute, this Agreement
is intended by the parties to be construed as a whole, to be interpreted in
accordance with its fair meaning, and not to be construed strictly for or
against either you or the Company or the “drafter” of all or any portion of
this Agreement.

 

19.                                 Entire Agreement

 

This Agreement
constitutes the entire agreement between you and the Company. This Agreement
supersedes any previous agreements or understandings between you and the
Company regarding your employment and the terms of separation, except the PIIA,
which remains in full force and effect.

 

20.                                 Time for Consideration; Effective Date

 

You have the opportunity
to consider this Agreement for twenty-one days before signing it. To accept
this Agreement, you must return a signed original of this Agreement so that it
is received by the undersigned at or before the expiration of this twenty-one
day period. If you sign this Agreement within less than twenty-one days of the
date of its delivery to you, you acknowledge by signing this Agreement that
such decision was entirely voluntary and that you had the opportunity to
consider this Agreement for the entire twenty-one day period. For the period of
seven days from the date when this Agreement becomes fully executed, you have
the right to revoke this Agreement by written notice to the undersigned. For
such a revocation to be effective, it must be delivered so that it is received
by the undersigned at or before the expiration of the seven-day revocation
period. This Agreement shall not become effective or enforceable during the
revocation period. This Agreement shall become effective on the first business
day following the expiration of the revocation period.

 

 

6

 

21.                                 Counterparts

 

This Agreement may be
executed in any number of counterparts, each of which when so executed and
delivered shall be taken to be an original, but all of which together shall
constitute one and the same document. Copies, including facsimiles, shall be
valid as originals.

 

Please indicate your
agreement to the terms of this Agreement by signing and returning to me the
original of this letter within the time period set forth above.

 

Very truly yours,

ACTIVIDENTITY CORP.

 

	
  By: 

  	
  /s/ Grant Evans

  	
   

  	
   

  	
  4/15/08

  	
   

  
	
   

  	
  Grant Evans

  Chief Executive Officer

  	
   

  	
  Date

  	
   

  
							

 

	
  Enclosures:

  	
  (Exhibit A) PIIA

  
	
   

  	
  (Schedule A) Schedule
  of Options

  

 

You are advised to
consult with an attorney before signing this Agreement. The foregoing is agreed
to and accepted by:

 

	
   /s/ Mark
  Lustig

  	
   

  	
   

  	
  4/27/08

  	
   

  
	
   Mark Lustig

  	
   

  	
   

  	
  Date

  	
   

  
						

 

 

7

 

SCHEDULE A

 

VESTED
OPTIONS AS OF MAY 9, 2008

 

	
  Grant Date

  	
   

  	
  Exercise Price

  	
   

  	
  No . Shares Vested at
  May 9, 2008

  
	
  February 6, 2006

  	
   

  	
  $3.49

  	
   

  	
  98,735

  

 

*          *          *

 

 

8Exhibit 10.3

 

SEVERANCE
AGREEMENT AND RELEASE

 

Re: Thomas Jahn and ActivIdentity Corporation

 

I,
Thomas Jahn (“Executive”) acknowledge that I have resigned my
employment with ActivIdentity Corporation and its affiliates and subsidiaries
(collectively, the “Company”) effective on April 11, 2008 (the “Resignation Date”). This Severance Agreement and Release
(the “Release”) is in consideration of the commitments
made by the parties released hereby, all of which commitments are set forth in
this document.

 

Subject
to the effectiveness of this Release pursuant to Section 9, the Company
agrees for the benefit of Executive:

 

1.         To pay a total of $400,000 as follows (the “Severance Pay”):  (i) $
110,000 in a single lump sum two business days after the effectiveness of this
Release, (ii) $145,000 in a single lump sum payable six months and one day
after the Resignation Date (the “Distribution Date”), and (iii) $145,000 payable ratably over the six
months following the Distribution Date, payable in accordance with the Company’s
normal payroll practices; provided that the second and third payments shall be
paid earlier upon Executive’s death.

 

The Company will also:

 

(i)        if Executive elects
COBRA continuation coverage and provided that
Executive and Executive’s beneficiaries remain eligible for COBRA continuation
coverage, the Company shall continue to pay for medical and dental insurance
premiums for coverage of Executive and Executive’s beneficiaries to the same
extent as if Executive remained employed until the earlier of (x) October 10,
2009 or (y) the date that Executive is eligible to receive such benefits
through a new employer;

 

(ii)       extend the exercise
period of Executive’s options granted under the 2004 Equity Incentive Plan (the
“Plan”), to the extent vested as of the
Resignation Date, so that all such vested options remain exercisable until April 10,
2009; the unvested portions of Executive’s options granted under the Plan will
terminate as of the Resignation Date in accordance with the Plan;

 

(iii)      accelerate vesting on
Executive’s outstanding unvested restricted stock units, which represent the
right to acquire a total of 35,641 shares of common stock;

 

(iv)      reimburse Executive for
outstanding unpaid business expenses, subject to documentation in accordance
with the Company’s customary policy; and

 

(v)       pay Executive on the
Resignation Date for all accrued and unused vacation as of the Resignation
Date.

 

2.         The Company shall undertake to make deductions, withholdings
and tax reports with respect to payments and benefits under this Release to the
extent that it reasonably and in good faith determines that it is required to
make such deductions, withholdings and tax reports. Payments under this Release
shall be in amounts net of any such deductions or withholdings.

 

 

1

 

Nothing in this Release
shall be construed to require the Company to make any payments to compensate
the Executive for any adverse tax effect associated with any payments or
benefits or for any deduction or withholding from any payment or benefit.

 

3.         Executive agrees the Company has paid him any and all
salary, other wages and vacation pay he is owed, if any; he acknowledges that
no such further payments or amounts are owed or will be owed with the exception
of (a) the payments referred to in Section 1 above, and (b) any
properly authorized business expenses incurred in reasonable amounts and
supported by documentary evidence that have not been reimbursed to Executive as
the result of any reimbursement requests submitted to the Company prior to the
Resignation Date.

 

4.         Except for the provisions of Section 1 of this Release
and in consideration for the payments and benefits described in Section 1,
to which the Executive acknowledges the Executive would not otherwise be
entitled, the Executive for himself and his heirs, agents, assigns, executors,
successors and each of them, voluntarily releases and forever discharges the
Company, its affiliated and released entities, its and their respective
predecessors, successors and assigns, its and their respective employee benefit
plans and fiduciaries of such plans, and the current and former officers,
directors, shareholders, employees, attorneys, accountant and agents of each of
the foregoing in their official and personal capacities (collectively referred
to as the “Releasees”)
generally from all claims, demands, debts, damage and liabilities of
every name and nature, known or unknown (“Claims”) that, as of the date
when the Executive signs this Release, the Executive ever had, now claims to
have or ever claimed to have had against any or all of the Releasees.

 

This Release includes, without limitation, all Claims: relating to the
Executive’s employment with the Company and the termination of the Executive’s
employment; of wrongful discharge; of breach of contract, including without
limitation, claims under the Executive’s November 27, 2007 Employment
Agreement; of retaliation or discrimination under federal, state or local law,
including, but not limited to, Claims of discrimination or retaliation under
Title VII of the Civil Rights Act of 1964, Claims of disability discrimination
or retaliation under the Americans with Disabilities Act, Claims of
discrimination or retaliation under the California Fair Employment and Housing
Act; Claims under the Older Worker Benefit Protection Act; Claims under other
federal or state statutes; of defamation or other torts; of violation of public
policy; for wages, bonuses, incentive compensation, stock, stock options,
vacation pay or any other compensation or benefit; and for damages or other
remedies of any sort, including, without limitation, compensatory damages,
punitive damages, injunctive relief and attorney’s fees. Notwithstanding the
foregoing, the Executive does not release (a) any rights that cannot be
waived, including, without limitation, his right to indemnity pursuant to
California Labor Code Section 2802; (b) his right to indemnity
pursuant to the Company’s by-laws and Delaware corporation law; and (c) his
rights as a stockholder of the Company.

 

In consideration for, among other terms, Executive’s release of Claims
pursuant to this Section 4, the Company voluntarily releases and forever
discharges Executive generally from all claims that, as of the date when the
Company signs this Agreement, the Company has, ever had, now claims to have or
ever claimed to have had against Executive which relate to good faith acts or
omissions by Executive during the course of Executive’s employment with the
Company undertaken or not undertaken in the reasonable belief that such acts or
omissions were in the best

 

 

2

 

interest of the Company,
including, without limitation, all claims relating to Executive’s employment by
the Company.

 

The Executive and the
Company acknowledge that they are familiar with Section 1542 of the
California Civil Code, which reads as follows:

 

California Civil Code Section 1542

 

“A
general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release,
which if known by him or her must have materially affected his or her
settlement with the debtor.”

 

The Executive and the
Company both agree that they are releasing unknown claims and waiving all
rights that either of them may have under Section 1542 of the Civil Code
of California or under any statute or common law principle of similar effect.

 

5.         Executive agrees that he will not make any written or oral
communications that could reasonably be considered to be disparaging of the
Company in any respect, including, but not limited to, the Company’s business,
technology, products, executives, officers, directors, former executives,
consultants or agents. The Company agrees that its directors and officers will
not make any written or oral communications that could reasonably be considered
to be disparaging of Executive. These non-disparagement obligations shall not
in any way affect Executive’s obligation or the obligations of the
above-referenced persons to testify truthfully in any legal proceeding.

 

6.         Executive agrees that the Executive shall cooperate and from
time to time, on reasonable advance notice from the Company, make himself
available on a limited basis and subject to any obligations or duties of
Executive to a new employer, to assist the Company with respect to general
matters involving the transition of a new chief executive officer, strategic
transactions upon which the Executive worked during his employment or any legal
proceedings that are based on or directly related to events or transactions
occurring during Executive’s employment by the Company that reasonably require
his personal testimony or involvement. The Company shall reimburse Executive
for his out-of-pocket expenses relating to his compliance with his obligations
set forth herein.

 

7.         This Release was either negotiated for Executive by a
representative of his own choosing or he, after having had a reasonable
opportunity to obtain a representative of his own choosing, elected to
represent himself in such negotiations. Both the Company and Executive are
voluntarily agreeing to this Release. It is agreed that the payments under this
Release are not an admission of any liability or obligation.

 

8.         Executive expressly states that he has read this Release and
understands all of its terms, that the preceding paragraphs recite the sole
consideration for this Release, and that this Release constitutes the entire
agreement with respect to any matters referred to in it. This Release supersedes
any and all other agreements between Executive and the Company regarding
Executive’s employment and the terms of separation, except the Proprietary
Information and Inventions Agreement, a copy of which is attached hereto as Exhibit A,
which remains in full force and effect. This Release may only be amended in
writing signed by Executive and an

 

 

3

 

officer of the Company,
and it is executed voluntarily and with full knowledge of its significance.

 

9.         Executive has the opportunity to consider this Agreement for
twenty-one days before signing it. To accept this Agreement, Executive must
return a signed original of this Agreement so that it is received by the
undersigned at or before the expiration of this twenty-one day period. If
Executive signs this Agreement within less than twenty-one days of the date of
its delivery to Executive, Executive acknowledges by signing this Agreement
that such decision was entirely voluntary and that Executive had the opportunity
to consider this Agreement for the entire twenty-one day period. For the period
of seven days from the date when this Agreement becomes fully executed,
Executive has the right to revoke this Agreement by written notice to the
undersigned. For such a revocation to be effective, it must be delivered so
that it is received by the undersigned at or before the expiration of the
seven-day revocation period. This Agreement shall not become effective or
enforceable during the revocation period. This Agreement shall become effective
on the first business day following the expiration of the revocation period.

 

10.       This Release will be interpreted pursuant
to the laws of the State of California, without regard to conflict of law
principles.

 

	
   

  	
   

  	
  Thomas Jahn

  
	
  Dated:

  	
  4/30/2008

  	
   

  	
  /s/ Thomas Jahn

  	
   

  
					

 

	
   

  	
   

  	
  ActivIdentity
  Corporation

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
  4/30/2008

  	
   

  	
  By:

  	
  /s/ Grant Evans

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Grant Evans

  
	
   

  	
   

  	
   

  	
  Title: Chief Executive
  Officer

  
						

 

 

4

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