Document:

Exhibit 10.1

 

 

August 23, 2012

 

SEVERANCE AND RELEASE AGREEMENT

 

This Severance and Release Agreement (the “Agreement”) is entered into by and between David Schie (“Employee”) and Semtech Corporation (“Semtech”) regarding resolution, settlement and release of any disputes or waivable claims Employee may have arising from or concerning the terms and conditions of Employee’s employment by Semtech and any matters related to the termination of Employee’s employment.

 

CONSIDERATION, REVOCATION PERIOD AND EFFECTIVE DATE

 

1.            Consult With An Attorney.  Employee acknowledges that Employee has the opportunity, should Employee desire, to consult with an attorney of Employee’s choice prior to executing this agreement.

 

2.            Consideration Period.  Employee has twenty one (21) days from the date this Agreement was provided to Employee to consider this Agreement and, if Employee desires, to sign it and return it to Semtech at 200 Flynn Road, Camarillo CA 93012-8790, Attention: Ken Barry, Senior Vice President of Human Resources (the “Senior VP HR”).

 

3.            Revocation Period and Effective Date.  Employee also acknowledges that if Employee signs this agreement, Employee may revoke it up to seven (7) days after Employee signs it.  Employee further acknowledges that, unless Employee revokes it within the applicable seven (7) day period, the agreement will become binding, effective and irrevocable (i.e. the “Effective Date”) when the seven (7) day revocation period expires.  Employee may revoke this Agreement in the following manners, in which case Employee will not receive the consideration described in this Agreement:

 

3.1         By delivering to Semtech at the address specified above, a written notice of revocation that is received on or before the close of business (5:00 p.m. Pacific Daylight Time) on the 7th day after Employee signs this Agreement; or

 

3.2         By emailing the Senior VP of HR, Ken Barry, at kbarry@semtech.com on or before the close of business (5:00 p.m. Pacific Daylight Time) on the 7th day after Employee signs this Agreement.

 

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AGREEMENT

 

In consideration of the respective promises, releases, and commitments stated in this agreement, Employee and Semtech (collectively referred to as “the Parties”) agree as follows:

 

1.                               Release from Responsibilities/Termination.  Employee has been relieved of Employee’s responsibilities to and with Semtech and Employee’s employment with Semtech ended effective July 25, 2012 (“Termination Date”).

 

2.                               Consideration.

 

a)                               If Employee signs this agreement and it becomes effective as noted above, Semtech will pay Employee a lump sum in an amount of $145,000.05, (the “Settlement Sum”), less applicable federal and state withholdings.  Additionally, Semtech will pay for six (6) months of COBRA if Employee elects COBRA continuation coverage on the medical and/or dental and/or Vision plans in which Employee was enrolled at Employee’s Termination Date, for the months of August 2012, September 2012, October 2012, November 2012, December 2012 and January 2013.  The Settlement Sum shall be paid to Employee by payroll check within ten (10) business days following receipt by Semtech of this Agreement signed by Employee, as long as the Agreement is not revoked pursuant to the terms of the “Consideration and Revocation Period” section of this Agreement.

 

b)                              Semtech agrees that Employee may retain and keep possession of the laptop PC provided to Employee by Semtech during the course of Employee’s employment, subject to the following conditions and understandings:

 

	
i)
    	
 
    	
No later than   three (3) calendar days after this Agreement becomes effective, Employee   will, at Employee’s expense, return the laptop PC to Semtech, sent postage or   carrier expense prepaid, to 200 Flynn Road, Camarillo CA 93012-8790,   Attention: Ken Barry, Senior Vice President of Human Resources.
    
	
 
    	
 
    	
 
    
	
ii)
    	
 
    	
Employee will   not have removed or retained any Semtech confidential information, programs,   operating systems, or other data or functions of the PC from the date of the   termination of Employee’s employment with Semtech to the date of delivery of   the PC to Semtech under this Agreement. Employee may have removed and   retained any personal data or files Employee may have used or kept on the PC   prior to its return to Semtech as noted above.
    
	
 
    	
 
    	
 
    
	
iii)
    	
 
    	
Following   receipt of the laptop PC from Employee, Semtech will remove all Semtech   confidential information, Semtech provided programs, operating systems or   other Semtech provided data or functions as applicable. Upon completion of   such work by Semtech, to be completed within ten (10) calendar days of   receipt of the PC from Employee, Semtech will return the laptop PC at   Semtech’s expense, sent postage or carrier expense prepaid, to Employee sent   to such address as Employee instructs by communication with Ken Barry, Senior   Vice President of Human Resources.
    

 

c)                               For avoidance of doubt, Semtech acknowledges and confirms that Employee is not required or obligated to repay to Semtech any portion of the “Sign On Bonus” in the original

 

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amount of $75,000 as paid to Employee under and in connection with Employee’s offer of employment letter dated September 8, 2011.

 

3.            Stock Options.  If Employee has stock options or other equity awards with vesting conditions, they will have continued to vest up to and including Employee’s Termination Date.  Any stock options or other equity awards vested on or before Employee’s Termination Date may be exercised or otherwise retained for value by Employee in accordance with the terms and conditions of the stock option plan under which Employee was issued stock options or other equity awards (the “Plan”).  Nothing in this Agreement in any way supersedes, modifies, or amends any provision of Semtech’s equity award plans.  Employee’s election to exercise options or otherwise take benefit of any equity award, and all aspects and procedures governing administration of options and equity awards, will be subject to and governed by the Plan.  In the event of any inconsistency between this Agreement and the terms and conditions of the Plan, the Plan shall prevail.

 

4.            Confidential Information.  Employee agrees to continue to comply with the terms and conditions of any employee confidentiality agreement previously entered into between Employee and Semtech.  The applicable agreement(s) are listed on Exhibit A attached hereto.  Employee acknowledges that he has his own copies of these agreements, but Semtech agrees to provide copies upon request.  Request for copies is to be sent to Semtech at 200 Flynn Road, Camarillo CA 93012-8790, Attention: Ken Barry, Senior Vice President of Human Resources (the “Senior VP HR”).

 

5.            Access to Information; Return of Property.   Employee agrees to provide Semtech, or assist Semtech in retrieving, all information, records, or other materials belonging or relating to Semtech or Employee’s services with Semtech, in whatever recorded or retrievable form, which are or have been in Employee’s possession, custody or control in connection with Employee’s employment by Semtech.  Employee agrees to return all keys to Semtech files, desks, etc., in Employee’s possession, and disclose to Semtech all computer or other electronic storage system passwords, access codes, or other electronic “keys.”  Employee agrees that Employee has not removed, and will not remove from Semtech nor retain, any document, file, electronic record, or other item containing, in whole or in part, any confidential or proprietary information of Semtech of which Employee gained knowledge or to which Employee gained access during Employee’s employment.  Employee further agrees that Employee will not reveal or disclose to any party or person any of Semtech’s confidential or proprietary information, except as may otherwise be required by law in connection with any action initiated or pursued by authorized governmental authorities in connection with actions or investigations against or involving the Company. Employee agrees to continue to comply with all third party nondisclosure agreements and obligations which relate to or arise from any work or services performed by Employee while employed by Semtech, which agreements relate to proprietary or confidential information of others to which Employee had access or of which Employee became knowledgeable during Employee’s employment.

 

Additionally, Employee agrees that Employee has not removed and will not remove from Semtech nor retain under Employee’s control, directly or indirectly, in whole or in part, any software program, development tool, design aid, or any other item, asset, or property owned,

 

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licensed, or utilized by Semtech.  Employee acknowledges that Employee may be personally liable to the applicable owner for any misuse or misappropriation by Employee of any such program, tool, aid, or item, to the extent the owner claims for itself intellectual property or other rights in the item.  Employee acknowledges that Employee has returned to Semtech any and all such items which may have been previously used by Employee in any off site or remote office or work location.

 

6.            Payment of Wages Due and Reimbursement of Business Expenses.  Employee agrees that Semtech has paid all salary, wages, commissions and any and all other compensation and benefits due to Employee through Employee’s Termination Date, inclusive of accrued vacation, which has been paid for amounts accrued up to Employee’s Termination Date.  The parties agree that Employee may be entitled to reimbursement of bona fide business expenses as per the following sentences in this paragraph 6.    Except as set forth in this Agreement, Employee hereby waives all rights to any other payments from Semtech other than for reimbursement of outstanding bona fide business expenses incurred by Employee on behalf of the Company through the Termination Date. Semtech will reimburse Employee for all reasonable and bona fide business expenses incurred through the Termination Date, which expenses have been incurred in accordance with Semtech’s travel and business expense reimbursement policies, provided Employee submits appropriate expense reports detailing such expenses within thirty (30) days after the Effective Date of this Agreement.

 

7.            Release of Waivable Claims.  Employee agrees that the terms and conditions of this Agreement represent settlement in full of all outstanding obligations and waivable claims that may be claimed to be owed to Employee by Semtech.  In consideration of Semtech’s payments and extension of other benefits as outlined above, Employee, on behalf of himself or herself, and Employee’s respective heirs, executors, and assigns, hereby releases Semtech and its affiliates and subsidiaries, and their respective officers, directors, employees, investors, shareholders, administrators, predecessor and successor corporations, and assigns, from, and agrees not to sue or file any administrative action or charge concerning, any waivable claim, duty, obligation or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that any of them may possess arising from any omissions, acts or facts that have occurred up until and including the Effective Date of this Agreement including, without limitation:

 

(a)          any and all waivable claims relating to or arising from Employee’s employment relationship with Semtech and the termination of that relationship, including but not limited to the following:  (i) claims that in any way relate to or arose during Employee’s employment with Semtech, or the termination of that employment, such as claims for compensation, bonuses, commissions, lost wages, vesting of stock options, relocation, moving, or temporary housing expenses, or unused sick pay; (ii) claims that in any way relate to the design or administration of any employee benefit program; (iii) claims that Employee has irrevocable or vested rights to severance or similar benefits or to post-employment health or group insurance benefits not arising by virtue of this Agreement; or (iv) any claims to attorneys’ fees or other indemnities (such as under the Civil Rights Attorneys’ Fees Act), with respect to claims Employee is releasing;

 

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(b)          any and all waivable claims relating to, or arising from, Employee’s right to purchase, or actual purchase of shares of stock of Semtech;

 

(c)          any and all waivable claims for wrongful discharge of employment; breach of contract, both express and implied; breach of a covenant of good faith and fair dealing, both express and implied; negligent or intentional infliction of emotional distress; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; and defamation;

 

(d)          any and all waivable claims for violation of the Age Discrimination of Employment Act;

 

(e)          any and all waivable claims arising out of any other federal, state or local anti-discrimination laws (including statutes, regulations, other administrative guidance, and common law doctrines), including, but not limited to, Title VII of the Civil Rights Act of 1964, the Equal Pay Act, the Americans With Disabilities Act; and the California Fair Employment and Housing Act;

 

(f)           any and all waivable claims arising out of any other federal or comparable state laws and regulations relating to employment, such as the WARN Act, which requires that advance notice be given of certain work force reductions; the Employee Retirement Income Security Act of 1974, which, among other things, protects employee benefits; the Fair Labor Standards Act of 1938, which regulates wage and hour matters; the Family and Medical Leave Act of 1993, which requires employers to provide leaves of absence under certain circumstances; and any other federal or comparable state laws and regulations relating to employment, such as veterans’ reemployment rights laws; and

 

(g)          any and all waivable claims arising out of any other laws and regulations, such as any laws providing workers’ compensation benefits, mandating leaves of absence, restricting an employer’s right to terminate employees, or otherwise regulating employment; any laws enforcing express or implied employment contracts or requiring an employer to deal with employees fairly or in good faith; any laws providing recourse for alleged wrongful discharge, tort, physical or personal injury, emotional distress, fraud, negligent misrepresentation, defamation, and similar or related claims; any law, such as California Labor Code Section 200 et seq., relating to salary, commission, compensation, benefits, and other matters; the California Workers’ Compensation Act; and any applicable California Industrial Welfare Commission order.

 

Employee agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters released.  This release does not extend to any obligations incurred under this Agreement.  Additionally, this release does not cover or result in any loss of rights under any claim that cannot be waived or released as a matter of applicable law.

 

In addition, the terms of this Agreement, including the release of claims, shall not apply to any claims that may arise after this Agreement is executed by Employee.

 

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8.            Civil Code Section 1542.  Employee acknowledge that Employee has had the opportunity to be advised by legal counsel and is familiar with the provisions of California Civil Code Section 1542, which provides as follows:

 

	
A   GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR   SUSPECT TO EXIST IN HIS 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.
    	
 
    

 

 

Being aware of this code section, Employee agrees to expressly waive any rights Employee may have under Civil Code Section 1542, as well as under any other statute or common law principles of similar effect as they pertain to the released matters as stated in paragraph 7 above.  Employee acknowledges that Employee may later discover facts different from or in addition to those facts Employee now knows or believes to be true regarding the matters released or described in this Agreement, and even so Employee agrees that the releases contained in this Agreement shall remain effective in all respects notwithstanding any later discovery of any different or additional facts.  Employee assumes any and all risk of any mistake in connection with the facts involved in the matters, disputes, or controversies released or described in this Agreement or with regard to any facts now unknown to Employee relating thereto.

 

9.            Other Proceedings.

 

9.1         Employee will immediately dismiss (unless expressly prohibited by law) any lawsuit, claim, charge, grievance or complaint initiated individually by Employee against Semtech in relation to individual claims or assertions of rights in favor of Employee in any forum, including without limitation any local, state or federal agency or court, based upon events occurring prior to the date Employee signs this Agreement.

 

9.2         Employee agrees not to join or participate in any way, including but not limited to participation as a witness, in any litigation, arbitration or administrative action before any federal or state agency, filed against Semtech, unless Employee is compelled by law to do so.  Employee agrees not to provide any information or documents to any current or former Semtech employee or contractor, or their attorneys or agents, without the written consent of the Semtech VP HR.

 

9.3         Nothing in this Agreement prohibits Employee from filing a charge or complaint with, or initiating or participating in any investigation or proceeding conducted by, the Equal Employment Opportunity Commission, the Securities and Exchange Commission or a comparable state or local agency, or from assisting any other person or entity in the litigation of that other person’s or entity’s claims before any such commission or agency.  However, by signing this Agreement, to the maximum extent allowed by law Employee has waived the right to personally recover compensatory or other monetary damages from Semtech in any charge, complaint, or lawsuit filed against Semtech, and Employee has waived the right to file a lawsuit against Semtech.

 

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10.         Confidentiality.  Each party to this Agreement agrees to use its best efforts to maintain in confidence the existence of this Agreement, the contents and terms of this Agreement, and the consideration offered by Semtech for this Agreement (hereinafter collectively referred to as “Settlement Information”).  Each party to this Agreement agrees to take every reasonable precaution to prevent disclosure of any Settlement Information to third parties, and agrees that it will not publicize directly or indirectly any Settlement Information. Each party agrees to take every precaution to disclose Settlement Information only to those employees, directors, attorneys, accountants, governmental entities, and family members who have a reasonable need to know of such Settlement Information.

 

11.         Full Disclosure and Ongoing Cooperation.  Employee acknowledges that Employee has fully disclosed to the Company any information or knowledge Employee has concerning any conduct (action or inaction) involving the Company, any affiliate of the Company, or any director, officer, employee, agent or representative of the Company ,that Employee has any reason to believe or suspect may be unlawful, or in violation of any statute, regulation, or other legal requirement.  Employee agrees that, if requested, Employee will fully cooperate in effecting a smooth transition of Employee’s responsibilities to others.  Employee also agrees to make himself or herself available upon reasonable advance notice to meet with Semtech or its representative to provide any facts or other information Employee may have regarding any matter related to Employee’s duties while employed by Semtech..

 

12.         Representation Regarding Medical Condition.  Employee represents and warrants that Employee has suffered no work-related injury or injuries while employed by Semtech which are not the subject of any pending workers’ compensation claim.  Employee also represents and warrants that there is no valid basis for Employee to file any other claim or claims for workers’ compensation benefits.  The release provisions of this Agreement shall not impact Employee’s entitlement to receive any workers’ compensation benefits available to Employee in connection with any pending workers’ compensation claim.

 

13.         No Disparagement.  Each party to this Agreement agrees that the party will use its best efforts not to engage in any form of criticism, defamation, slander, or disparagement of anyone released under this Agreement.  In addition, each party to this Agreement agrees not to engage in any conduct that seeks to interfere with the contracts and relationships (e.g. customers, employees, suppliers, etc.) of the other and not to incur any expenses, obligations, or liabilities on the other’s behalf.

 

14.         Non-Solicitation.  Employee agrees that for a period of twelve months following Employee’s Termination Date, Employee shall not induce or solicit, or attempt to induce or solicit, or cause any other person, business or entity to induce or solicit, any person who at the time of such inducement or solicitation is an employee of Semtech, to perform work or services for any other person or entity other than Semtech.  Employee further agrees not to solicit, offer to employ or retain, or aid another in inducing or soliciting any then current employee of Semtech to perform work or services for any third party.

 

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15.         No Admission of Liability.  No action taken by the Parties hereto, or either of them, either previously or in connection with this Agreement will be considered (a) an admission of the truth or falsity of any claims previously made, or (b) an acknowledgment or admission by either Party of any fault or liability whatsoever to the other Party or to any third party.

 

16.         Authority.  Semtech represents and warrants that the undersigned has the authority to act on behalf of Semtech and to bind Semtech and all who may claim through it to the terms and conditions of this Agreement.  Employee represents and warrants that Employee has the capacity to act on Employee’s own behalf and on behalf of all who might claim through Employee to bind them to the terms and conditions of this Agreement. Each Party warrants and represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein.

 

17.         No Representations.  Each Party acknowledges that in deciding to sign this Agreement, it has not relied upon any representations or statements that are not specifically set forth in this Agreement.

 

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

 

19.         Entire Agreement.  This Agreement represents the entire agreement and understanding between Semtech and Employee concerning Employee’s employment with and separation from Semtech, and supersedes and replaces any and all prior agreements and understandings concerning Employee’s relationship with Semtech and Employee’s compensation by Semtech, except that the terms and conditions of any agreement regarding confidentiality of company information previously entered into between Employee and Semtech shall remain in full force and effect.  The applicable agreement(s) are listed on Exhibit A attached hereto.  Employee acknowledges that he has his own copies of these agreements, but Semtech agrees to provide copies upon request.  Request for copies is to be sent to Semtech at 200 Flynn Road, Camarillo CA 93012-8790, Attention: Ken Barry, Senior Vice President of Human Resources (the “Senior VP HR”).

 

20.         No Oral Modification.  This Agreement may only be amended in writing, signed by Employee and an officer of Semtech holding a title of Senior Vice President or above.

 

21.         Governing Law/Enforcement.  This Agreement shall be governed by the laws of the State of California regardless of where the Agreement is executed by Employee or Semtech and regardless of the location at which Employee was hired or performed services as a Semtech employee.  In the event either party initiates legal action seeking enforcement of or compliance with the terms and conditions of this Agreement, the prevailing party in any such legal action will be entitled, in addition to any other rights and remedies it may have, to reimbursement for its expenses, including court costs and reasonable attorney and consultant fees.

 

22.         Effective Date.  This Agreement is effective seven days after it has been signed by both Parties, unless otherwise revoked by Employee within the seven (7) day revocation period that begins on the date Employee signs the Agreement.  This Agreement will be void, and

 

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the offer extended hereby will no longer be available, if Employee has not signed and returned this Agreement to Semtech within the time period set forth on the “Consideration and Revocation Period” section of this Agreement.

 

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

 

24.         Voluntary Execution of Agreement.  Each Party acknowledges that it has executed this Agreement voluntarily and without any duress or undue influence. Each Party further acknowledges that:

 

	
(a)
    	
 
    	
It has read this   Agreement;
    
	
 
    	
 
    	
 
    
	
(b)
    	
 
    	
It has been represented   in the preparation, negotiation, and execution of this Agreement by legal   counsel of its own choice or that it has voluntarily declined to seek such   counsel;
    
	
 
    	
 
    	
 
    
	
(c)
    	
 
    	
It understands   the terms and consequences of this Agreement and of the releases it contains;
    
	
 
    	
 
    	
 
    
	
(d)
    	
 
    	
It is fully   aware of the legal and binding effect of this Agreement.
    

 

 

	
SEMTECH CORPORATION
    	
 
    	
EMPLOYEE
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/ Randall H. Holliday
    	
 
    	
/s/ David Schie
    	
 
    
	
Randall H. Holliday
    	
 
    	
David Schie
    	
 
    
	
Secretary
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date:   September 12, 2012
    	
 
    	
Date:   September 12, 2012
    	
 
    

 

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EXHIBIT A

 

1.    INVENTION ASSIGNMENT & SECRECY AGREEMENT (“IASA”) dated February 13, 2012 per signature by Employee, inclusive of APPENDIX A to INVENTION ASSIGNMENT & SECRECY AGREEMENT

 

2.    EMPLOYEE CONFIDENTIALITY AGREEMENT AND PROPRIETARY RIGHTS AGREEMENT dated February 13, 2012, inclusive of the clarification of same (i.e. the memorialization of certain handwritten changes made by Employee to Paragraphs 11(a) and (b)) per email to Employee from Randall H. Holliday dated June 11, 2012.

 

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SEVERANCE AND GENERAL RELEASE AGREEMENT

 

This Agreement (the “Agreement”) is entered into by and among Phillip C. Rapp, Jr. (“Employee”) and Augme Technologies, Inc. and Hipcricket, Inc. (“Augme” or “Hipcricket” or “Employer” or “the Company”) to describe the terms of Employee’s separation from employment with the Company.  For the consideration described herein, Employee and the Company agree as follows:

 

1.             SEPARATION FROM EMPLOYMENT

 

Employee’s employment with the Company (in any capacity including any officer positions in the Company or any of its subsidiaries including without limitations the offices of Executive Vice President, Strategic Planning) will end effective September 20, 2012 (the “Separation Date”).  The Company will pay Employee for all services provided through the Separation Date. The Employee and Employer understand and agree that either the marking of this Agreement nor the fulfillment of any condition or obligation of this Agreement constitutes an admission of any liability or wrongdoing by either the Employee or the Employer.

 

2.             ACCRUED VACATION, EXPENSE REIMBURSEMENT

 

2.1           Payment for Paid Time Off.  With the next regularly-scheduled payroll after the Separation Date, the Company shall pay Employee for any earned but unused paid time of 208.74 hours which totals $22,579.41 less lawful withholdings and deductions.

 

2.2           Reimbursement for Expenses Incurred.  The Company shall reimburse Employee for reasonable and necessary business expenses incurred before the Separation Date to the extent such expenses are reimbursable under the Company’s normal expense reimbursement policies and procedures, and provided that receipts or other acceptable documentation for such expenses are submitted in accordance with standard Company policy.

 

3.             SEVERANCE PAY AND SEVERANCE BENEFITS

 

3.1           Severance Pay.  The Company agrees to pay Employee an amount equal to twelve (12) months of his regular base salary (totaling $225,000) as severance pay (the “Severance Payment”).  The Severance Payment shall be subject to withholding and deduction for payroll taxes and other deductions as are required by federal and state law.  The Severance Payment shall be paid in equal installments in conjunction with the Company’s regular payroll beginning after the Effective Date.

 

4.             STOCK OPTIONS

 

4.1           Stock Options. Employer and Employee agree that as of the Separation Date, Employee has fully-vested (i) 347,222 non-qualified options exercisable at $1.30; (ii) 41,667 qualified options exercisable at $3.00; and (iii) 15,000 qualified options exercisable at $2.15.  This will serve as your reference that you may for up to three months from the Separation Date under Section 9.2 (a) of the attached Augme 2010 Incentive Stock Option Plan exercise a total of 403,889 options and cause the issuance of these amount of underlying common shares of Augme to be issued free from restrictions to you.  Additionally, Employee is providing a copy of

 

 

the Employee with the respective stock option agreement dated August 12, 2010, January 4, 2011, December 29, 2011.

 

4.2           Incentive Stock Option Plan. To the extent that the Options are exercisable, Employee acknowledges that the Options must be exercised in accordance with the terms of the Company’s Incentive Stock Option Plan (“ISO”).

 

4.3           Forfeiture of Stock Options. Employee further agrees that, to the extent that Employee has been granted options to purchase common stock of the Company in addition to the foregoing Options, Employee’s rights with respect to any such additional options have not yet vested and will not vest, Employee will have no rights with respect to such additional options.

 

5.             GROUP MEDICAL BENEFITS COVERAGE/STOCK/OTHER BENEFITS

 

After the Separation Date, Employee and/or his dependents shall be eligible to elect a temporary extension of group health plan coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as subsequently amended (“COBRA”).  After the Separation Date, Employee’s rights and obligations with respect to all other benefits plans, including any stock rights, stock options, 401(k), disability and life insurance, shall be governed by the terms of all applicable plans and laws.

 

6.             FULL PAYMENT

 

Employee agrees that, with the payment of his final pay through the Separation Date, the Company has paid Employee all compensation arising out of Employee’s employment, including, but not limited to, base pay, bonus, commission, and any other compensation.

 

7.             RESIGNATION

 

Effective as of the Separation Date, Employee will be deemed to have resigned as the Executive Vice President, Strategic Planning of the Company. Furthermore, on the Separation Date, Employee will deliver to the Company an executed resignation letter, in substantially the form attached hereto as Exhibit A. The contents of the resignation latter shall form the substance of the Company’s 8-K filing with respect to the Employee’s departure.

 

8.             GENERAL RELEASE OF CLAIMS

 

8.1           Release.  In consideration of the Company’s provision of severance pay and other benefits, employee hereby releases the Company, any Company-sponsored employee benefit plan in which employee participates, and any of their employees, agents, officers, directors, shareholders, insurers, successors and assigns (and their respective marital communities), from all claims, demands, actions or causes of action of any kind or nature whatsoever which employee may now have or may ever have had against any of them, whether such claims are known or unknown including claims under local, state, federal or common law

 

 

with respect to any of the following: (a) breach of contract; (b) harassment, discrimination, retaliation, or constructive or wrongful discharge; (c) lost wages, lost employee benefits, physical and personal injury, stress, mental distress, or impaired reputation; (d) claims arising under the Age Discrimination in Employment Act, Title VII of the Civil Rights Act, the Equal Pay Act, Americans with Disabilities Act, Family and Medical Leave Act, the Workers Adjustment and Retraining Notification Act, the Older Workers Benefits Protection Act, or any other federal, state or local laws or regulations governing the employer-employee relationship or prohibiting employment discrimination; (e) attorneys’ fees; and (f) any other claim arising from or relating to employee’s employment with the Company and/or employee’s separation from employment.  Employee acknowledges that he may hereafter discover facts different from or in addition to those which employee now believes to be true with respect to such claims; nevertheless, employee agrees that the release shall be and remain effective in all respects.  This release shall not prohibit Employee from filing an administrative charge with the Equal Employment Opportunity Commission but shall constitute a release and waiver of any claim or right to monetary damages or relief in such a charge or claim.

 

8.2           No Action on Released Claims.  Employee agrees not to sue or pursue any court or administrative action against the Company, or any of its employees, agents, officers, directors or shareholders, regarding any claims released herein or otherwise arising from Employee’s employment with the Company or Employee’s separation from employment, except with respect to any breach by the Company of its obligations under this Agreement.  If any government agency brings any claim or conducts any investigation against Employer, nothing in this Agreement forbids Employee from cooperating in such proceedings or providing truthful testimony, but by this Agreement, Employee waives and agrees to relinquish any damages or other individual relief that may be awarded as a result of any such proceedings.

 

8.3           Terms.  Attached hereto as Exhibit B is a list which identifies: (a) the group of individuals who are being discharged for reasons unrelated to job performance and because their positions are redundant of positions held by others (the “Group”); (b) the ages and job titles of the employees within such Group; and (c) the ages of all persons within the same organizational unit as Employee who are not part of the Group.

 

9.             REVIEW AND REVOCATION PERIOD; EFFECTIVE DATE

 

Employee has been given 21 days to review this Agreement (the “Review Period”) beginning with the date that it is first provided to him.  Employee is encouraged to consult an attorney to review its terms.  In the event that Employee signs this Agreement before expiration of this 21-day period, she waives all remaining time to consider this Agreement.  By signing this Agreement, Employee acknowledges that (a) the Company has advised Employee to consult with counsel, and (b) Employee has either consulted an attorney or has voluntarily elected not to do so.  After signing the Agreement, Employee may revoke this Agreement by providing written notice of the decision to revoke the Agreement to the Company at the following address: 4400 Carillon Point, Kirkland, WA 98033 (Attn: Kimberly Cunningham) within seven days after the date Employee signed this Agreement.  This Agreement will become effective on the first day after the seven-day revocation period expires (the “Effective Date”).

 

 

10.          RETURN OF COMPANY PROPERTY

 

On or before the Separation Date, and as a condition of receiving Severance Payment and other benefits, Employee shall return to the Company all Company-owned communication devices, equipment and property and any documents, files or records of any nature, or any copy thereof that belong to the Company. Employee agrees that he will not, for any purpose, attempt to access or use any Company computer or computer system and will disclose to the Company all passwords necessary to enable the Company to access all information, which is password-protected on any of its computer equipment or on its computer network or system.

 

11.          CONFIDENTIALITY/NONDISPARAGEMENT

 

Employee agrees to protect and maintain the confidentiality of all information in his possession related to the Company, including information about is finances, technology, employees, sales or prospective sales, customers and all other information not publicly not publicly known or available.  Employee agrees to abide by and reaffirms his obligations with respect to confidentiality and non-solicitation and other protections. Employee agrees that he will not disparage or criticize the Company, its Board of Directors, management, products or services and will not otherwise do or say anything that could interfere in any way with the Company’s Board of Directors and its corporate officers, speaking on behalf of the Company, shall not disparage Employee.

 

12.          COVENANT NOT TO COMPETE

 

Employee agrees that for twelve months after the Separation Date, he will not, directly or indirectly, enter into the employment of, render services to, or acquire any interest whatsoever, whether as a sole proprietor, partner, associate, shareholder, officer, director, consultant, trustee, lessor, creditor, or otherwise, in any business trade or occupation in competition with business of Employer. Employee agrees that damages for breach of this covenant will be difficult to determine and therefore consent that this provision may be enforced by temporary or permanent injunction, without the necessity of a bond. Such injunctive relief shall in addition to and not in place of any remedies at law. Employee agrees that the provisions of this paragraph are reasonable. However, should any court ever find that any provision within this paragraph is unreasonable, either in period of time, geographical area, or otherwise, then in that event Employee agrees that this paragraph shall be interpreted and enforced to the maximum extent which the court deems reasonable.

 

13.          NO ADMISSION

 

Employee understands and acknowledges that neither the Severance Payment and other benefits offered nor the execution and delivery of this Agreement by the Company constitutes an admission by the Company to (i) any breach of an agreement with Employee (ii) any violation of a federal, state or local statute, regulation or ordinance, or (iii) any other wrongdoing.

 

 

14.          COOPERATION/CONFIDENTIALITY OF AGREEMENT

 

Employee agrees to cooperate with the Company with respect to all matters arising during or related to his employment.  Employee will keep the terms including the amount of this Agreement completely confidential and will not disclose, directly or indirectly, any information concerning this Agreement to any person other than his attorneys, accountants, tax advisors, immediate family, or as otherwise required by law.  Employee further agrees that if he provides any information regarding the terms including the amount of this Agreement to his attorneys, accountants, tax advisors or immediate family, he will inform them that they must keep such information including the terms and amount completely confidential.

 

15.          INFORMED AND VOLUNTARY AGREEMENT

 

Employee declares that Employee has read and fully understands the terms of this Agreement, and its significance and consequence.  Employee understands and acknowledges that, except as specifically reserved herein, in exchange for the Severance Payment and other benefits, Employee is waiving and giving up every possible claim arising out of employment with the Company and/or the termination of that employment.

 

16.          GOVERNING LAW/SEVERABILITY/ENTIRE AGREEMENT

 

The parties acknowledge that this Agreement shall be interpreted under and enforced by and consistent with the laws of the State of New York.  The provisions of this Agreement are severable, and if any part of it is found to be unlawful or unenforceable, the other provisions of this Agreement shall remain fully valid and enforceable to the maximum extent consistent with applicable law.  This is the entire Agreement between Employee and the Company.  The Company has not made any promises to Employee other than those included within this Agreement.  This Agreement may be signed in counterparts.  Facsimile signatures are to be given the same force and effect as original signatures.

 

17.          COMPLETE AGREEMENT

 

This Agreement represents and contains the entire understanding between the Employee and Employer in connection with the subject matter of this Agreement.  The Employee and Employer expressly acknowledge and recognize that there are no oral agreements, understandings or representations in connection with the subject matter of this agreement between the parties other than those contained in this Agreement and any such prior agreements or understandings are specifically terminated.  This Agreement shall be binding upon and shall inure to the benefit of the executors, administrators, personal representatives, heirs, and/or successors and assigns of the parties.

 

 

PLEASE READ CAREFULLY.  THIS AGREEMENT CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN EMPLOYMENT CLAIMS.

 

	
EMPLOYEE
    	
 
    	
AUGME   TECHNOLOGIES, INC.
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/   Phillip C. Rapp, Jr.
    	
 
    	
By
    	
/s/   Robert F. Hussey
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Printed   Name:
    	
Phillip   C. Rapp, Jr.
    	
 
    	
Title
    	
Chief   Executive Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
September   20, 2012
    	
 
    	
Date:
    	
September   20, 2012
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
HIPCRICKET, INC.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By
    	
/s/   Robert F. Hussey
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Title
    	
Chief   Executive Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Date:
    	
September   20, 2012
    

 

Enclosures:

 

Augme 2010 Incentive Stock Option Plan

August 12, 2010 Stock Option Agreement

January 4, 2011 Stock Option Agreement

December 29, 2011 Stock Option Agreement

 

 

EXHIBIT A

 

Form of Resignation letter

 

[SEE ATTACHED DOCUMENT]

 

 

September 19, 2012

 

Mr. Robert F. Hussey

Chief Executive Officer

Augme Technologies, Inc.

350 7th Avenue, 2nd Floor

New York, NY 10001

 

Dear Bob,

 

I hereby acknowledge a separation from service as the Executive Vice President, Strategic Planning of Augme Technologies, Inc., and its wholly-owned subsidiary Hipcricket, Inc. (collectively the “Company”) effective immediately. My resignation is not because of a disagreement with the Company on any matters relating to the Company’s operations, policies or practices.

 

	
With   Regards,
    	
 
    
	
 
    	
 
    
	
/s/   Phillip C. Rapp, Jr.
    	
 
    
	
Phillip   C. Rapp, Jr.

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