Document:

December 8, 2005

 

 

VIA HAND DELIVERY

 

Kevin G. Gregory

9137 Whispering Pines

Saline, MI 48176

 

	
             
 	
            Re:
 	
            Transition Agreement
 

 

This letter along with the Exhibits attached hereto sets forth the substance of the separation agreement (collectively, the “Agreement”) that ProQuest Company (the “Company”) is offering to you to aid in your employment transition.

 

	
             
 	
            1.
 	
            Separation and Transition
 

 

 (a)         Your last day of employment with the Company and your employment termination date will be December 31, 2005 unless an earlier date is mutually agreed upon by both signing parties or required under paragraph 1(d) below (the “Separation Date”).  

 

 (b)         You agreed to resign your position as Senior Vice President and CFO upon November 11, 2005 (the “Transition Date”); provided, however, you will remain a regular full-time employee from the Transition Date until the Separation Date (the “Transition Period”).  In addition, you shall resign from any other offices and positions you hold with the Company and with any affiliated entities at such times on or prior to the Separation Date as determined in the sole discretion of the CEO.  During the Transition Period, you will provide internal consulting and transition assistance (including but not limited to activities as reasonably requested to assist in an orderly transition of duties) to the Company, and work on special projects
within your area of expertise, as reasonably requested by the CEO or successor CFO, that may arise with respect to subject matters that are within the scope of your expertise.  You will be provided reasonable release time to interview with prospective employers, provided that you remain available to fulfill your duties under this Agreement.  You agree to cooperate fully, at the Company’s request, to promptly sign, execute, make and do all such deeds, acts and things as the Company may reasonably request, which may be necessary or appropriate to effectuate the 

 

Kevin G. Gregory

December 8, 2005

Page 2

 

 

termination of your employment and affiliation with the Company, its affiliated entities and their respective employee benefit plans.

 

 (c)         Subject to compliance with your obligations hereunder, you will continue to receive your current base salary and be eligible for the same benefits currently available to you (including paid vacation time accrual and participation in the Company’s group health, dental and vision insurance plans, 401(k) plan, supplemental executive retirement plan, executive deferred compensation plan) through the Separation Date notwithstanding any reduced responsibilities on the Transition Date, except that paragraph 2 below shall apply in lieu of any existing bonus arrangements for the 2005 fiscal year.  On the Separation Date, the Company will pay you all accrued salary, and all accrued and unused vacation, earned through the Separation Date.  The Company has paid fees for outplacement services with
Lee Hecht Harrison under its senior management program in Michigan and Chicago.  Since you have accepted other employment which shall commence in January 2006, outplacement assistance shall no longer be made available to you.

 

 (d)         Provided that you (i) remain employed with the Company until the Separation Date, and (ii) perform in a satisfactory and cooperative manner as described under paragraph 1(e) below, the Company agrees to retain you to provide certain consulting services to the Company in lieu of any separation benefits to which you may be entitled under the Company Separation Plan (as defined below) or any other arrangement or understanding.  Such consulting services shall be provided in accordance with the attached consulting agreement attached hereto as Exhibit C (the “Consulting Agreement”).

 

 (e)         The Company reserves the right to immediately terminate your employment if you fail to act in a satisfactory and cooperative manner at any time prior to December 31, 2005.  For purposes of this Agreement, you will be deemed not to have acted in a “satisfactory and cooperative manner” if you (1) commit any act (or refrain from taking any act) that would constitute “Cause” as defined in the ProQuest Company Separation Benefits Plan, a copy of which is attached hereto as Exhibit B (the “Separation Plan”), or (2) fail to perform any of the duties outlined in this Agreement, particularly with respect to duties outlined in paragraph 1(a) and (b) above.

 

	
             
 	
            2.
 	
            Bonus
 

 

 (a)         The Company agrees that despite your anticipated transition from active employment as Senior Vice President and CFO effective upon the Transition Date, following the effective date of this Agreement (as defined in paragraph 9(e) below), and provided you remain employed with the Company until December 31, 2005 and meet all conditions of this Agreement, you shall be eligible to receive a bonus in the Financial bonus program (the “Annual Incentive Bonus”) for fiscal year 2005 (ending December 31, 2005).  The Annual Incentive Bonus, through the Transition Date, will be paid based on the financial goals established for the Company’s Executive Committee, and from the Transition Date through the Separation Date will be based exclusively upon your effectiveness and contribution during this 

 

Kevin G. Gregory

December 8, 2005

Page 3

 

 

period as reasonably determined by the CEO.  Payment of the bonus under this paragraph 2(a), if any, shall be made to you in a lump sum in 2006 at the same time that bonus payments for fiscal year 2005 are made to other executive officers of the Company.  Notwithstanding the foregoing, in the event of your death or disability (as defined in the Company’s long-term disability program) prior to the Transition Date, a bonus under this paragraph 2(a) will be paid on a pro rata basis to the extent that the financial goals established for the Company’s Executive Committee are achieved for fiscal year 2005.

 

 (b)         In addition to the Annual Incentive Bonus, so long as you are employed by the Company on December 30, 2005 and meet all conditions of this Agreement, you will receive a supplemental bonus in the amount of $200,000 based upon your input and advice of the success of certain special strategic projects that include, without limitation, the sale and disposition of the periodical microfilm business, the electronic coursepack business and the facility located at 300 Zeeb Rd., Ann Arbor, MI (the “Supplemental Bonus”).    

 

	
             
 	
            3.
 	
            Stock Options
 

 

As part of your employment, the Company granted you certain options to buy common stock of the Company pursuant to the 2003 ProQuest Strategic Performance Plan or the Company’s 1995 Employee Stock Option Plan (collectively, your “Options”).   Except as set forth herein, all terms, conditions, and limitations applicable to these Options will remain in full force and effect pursuant to the applicable stock option agreements between you and the Company, and the applicable plan provisions under the 2003 ProQuest Strategic Performance Plan or the 1995 Employee Stock Option Plan, as applicable.  Notwithstanding the foregoing, any and all Options granted to you pursuant to the 2004 multi-year stock option grant shall be immediately forfeited.

 

	
             
 	
            4.
 	
            Professional Fee Assistance
 

 

Within ten (10) business days of the effective date of this Agreement, the Company will pay you directly an amount equal to ten thousand dollars ($10,000) for professional fees you incur pursuant to the Agreement.  The professional fee assistance will be reported by the Company as taxable income to you.  The Company shall not make a tax gross-up payment with respect to such fees.

 

 

Kevin G. Gregory

December 8, 2005

Page 4

 

 

 

     5.     Separation Benefits

 

The basic separation pay benefit that you would otherwise be entitled to without execution of this Agreement is limited to your rights under the Separation Plan.  Notwithstanding anything to the contrary in this Agreement, if your employment terminates prior to the Separation Date, the Company shall only be obligated to pay you those benefits to which you are entitled under the Separation Plan, subject to any right of offset if you have received any benefits prior to completion of your obligations under this Agreement or the Consulting Agreement.  In no event will you be eligible to receive any benefits under this Agreement or the Separation Plan if you terminate your employment without providing the Company at least two weeks advance notice.

 

	
             
 	
            6.
 	
            Other Compensation or Benefits
 

 

You acknowledge that, except as expressly provided in this Agreement, you will not earn or receive any additional compensation, severance or benefits after the Separation Date.  If you are not eligible to receive health and welfare benefits under your new employer’s benefit plans, the Company will pay you an amount equal to the costs to provide health and welfare benefits under the Company’s plans pursuant to the Consolidated Omnibus Budget Reconciliation Act (COBRA).  In no instance shall this payment extend beyond the term of the consulting arrangement attached as Exhibit C.  For avoidance of doubt, the Separation Date shall be treated as the date when you ceased employment with the Company for all purposes.  By signing this Agreement, you specifically acknowledge that the Separation Benefits payable under this Agreement are in lieu of any benefits under the Separation Plan.

 

	
             
 	
            7.
 	
            Return of Company Property
 

 

On the Separation Date or as earlier requested by the Company, you agree to return to the Company all documents that you have had in your possession acquired during the course of your employment (and all copies thereof) and other Company property which you have had in your possession at any time, including, but not limited to, Company files, notes, drawings, records, plans, forecasts, reports, studies, analyses, proposals, agreements, financial information, research and development information, sales and marketing information, operational and personnel information, specifications, code, software, databases, computer-recorded information, tangible property and equipment (including, but not limited to, computers, facsimile machines, mobile telephones, servers, but excluding your Company laptop and its related peripheral equipment and software), credit cards, entry cards, identification
badges and keys; and any materials of any kind which contain or embody any proprietary or confidential information of the Company (and all reproductions thereof in whole or in part).  If you have used any personal computer, server, or e-mail system to receive, store, review, prepare or transmit any Company confidential or proprietary data, materials or information, you agree to provide the Company with a computer-useable copy of such information and then permanently delete and expunge such Company confidential or proprietary information from those systems and your Company laptop,  as part of your 

 

Kevin G. Gregory

December 8, 2005

Page 5

 

 

compliance with the terms of this paragraph.  You will not be entitled to any Separation Benefits under this Agreement unless and until you comply fully with the terms set forth in this paragraph.

 

	
             
 	
            8.
 	
            Gregory’s Release of Claims
 

 

In exchange for employment through the Separation Date and the Separation Benefits provided under paragraph 5 of this Agreement, you hereby release, acquit and forever discharge the Company and its subsidiaries and affiliates, and each of their respective officers, directors, associates, agents, employees, attorneys, shareholders, successors, assigns and affiliates, past present and future (collectively, the “Releasees”), of and from any and all claims, liabilities, demands, causes of action, costs, expenses, attorneys fees, damages, indemnities and obligations of every kind and nature, in law, equity, or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed, arising out of or in anyway related to agreements, events, acts or conduct at any time prior to and including date you sign this Agreement.  This general release includes, but is not limited
to: (1) all claims arising out of or in any way related to your employment with the Company, or the termination of that employment; (2) all claims related to your compensation or benefits from the Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, separation pay, severance pay, fringe  benefits, stock, stock options, or any other ownership interests in the Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (4) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967, as
amended (“ADEA”) and applicable state law.  Notwithstanding the foregoing, this release of claims does not include a release of any claims you may have under this Agreement, or for workers’ compensation or unemployment insurance benefits.

 

	
             
 	
            9.
 	
            Gregory’s ADEA Release and Waiver
 

 

You acknowledge that you knowingly and voluntarily waive and release any rights you may have under ADEA, and that the consideration given for the waiver and release in the preceding paragraph hereof is in addition to anything of value to which you were already entitled.  You further acknowledge that you have been advised by this writing, as required by the ADEA, that: (a) your waiver and release do not apply to any rights or claims that may arise after the date you sign this Agreement; (b) you should consult with an attorney prior to signing this Agreement (although you may choose voluntarily not to do so); (c) you have twenty-one (21) days to consider this Agreement (although you may choose voluntarily to execute this Agreement earlier); (d) you have seven (7) days following the date you sign this Agreement to revoke the Agreement by providing written notice of such revocation to the
Company’s General Counsel; and (e) this Agreement will not be effective until the date upon which the 

 

Kevin G. Gregory

December 8, 2005

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revocation period has expired, which will be the eighth day after this Agreement is signed by you.

 

 

Kevin G. Gregory

December 8, 2005

Page 7

 

 

 

     10.          Indemnification

 

The Company will indemnify you for all actions within the authorized course and scope of your employment with the Company (for the entire length of your employment with the Company) to the fullest extent permitted the Company’s by-laws as in effect on the signing of this Agreement.

 

	
             
 	
            11.
 	
            Covenant Not to Sue
 

 

You hereby represent and warrant that you have not filed any complaints, claims, grievances or actions against the Company, its parent, subsidiary and affiliated entities, and the shareholders, directors, officers, employees, agents and representatives of each, in any state, federal or local court or agency and covenant not to file any claims (other than claims for workers’ compensation benefits, claims for unemployment insurance benefits, claims arising out of this Agreement or other claims not subject to waiver by law) at any time hereafter.  

 

	
             
 	
            12.
 	
            Separation Date Release
 

 

As part of this Agreement and in consideration of the Separation Benefits, you agree to execute the Separation Date Release, on or within twenty-one (21) days after the Separation Date, and to allow such Release to become effective.  The Separation Date Release shall not be signed before the Separation Date.  The Company’s obligation to provide the Separation Benefits under paragraph 5 of this Agreement are subject to, and conditioned upon, your timely execution and effectiveness of the Separation Date Release, which is separate from and in addition to the release of claims set forth in paragraph 8.

 

	
             
 	
            13.
 	
            Nondisparagement
 

 

During your employment with the Company and continuing after the Separation Date, you agree not to defame, disparage or criticize the Company, its affiliates, its shareholders, directors, officers, employees, or business or employment practices at any time.  Likewise, during your employment with the Company and continuing after the Separation Date, the Company (through its officers, directors or employees) agrees not to defame, disparage or criticize you.  In the event that the Company receives any inquiry regarding your employment, the Company shall only communicate such information as you and the Company have agreed to.  Notwithstanding the foregoing, both you and the Company will respond accurately and fully to any question, inquiry or request for information when required by legal process.

 

	
             
 	
            14.
 	
            Post Employment Obligations
 

 

You reaffirm that your post-employment obligations, including but not limited to the obligation to not disclose confidential information, solicit the Company’s customers or employees or compete with the Company, under any agreement or arrangement you signed with the Company (the “Nondisclosure, Nonsolicitation and Noncompetition Agreement”) 

 

Kevin G. Gregory

December 8, 2005

Page 8

 

 

survive the signing of this Agreement and your termination of employment, and further acknowledge and confirm your continuing obligations thereunder.

 

	
             
 	
            15.
 	
            Breach of Agreements
 

 

You acknowledge and agree that if the Company determines, in good faith that there is irreparable harm as a result and that you have breached any of your obligations under this Agreement or any of your post employment obligations under the Nondisclosure, Nonsolicitation and Noncompetition Agreement, the Company may immediately cease payment of Separation Benefits.  This Agreement in all other respects, including, but not limited to, the release provisions hereunder, shall remain in full force and effect. This cessation of Separation Benefits shall be in addition to, and not as an alternative to, any other remedies in law or in equity available to the Company, including the right to seek specific performance or an injunction.

 

	
             
 	
            16.
 	
            Dispute Resolution
 

 

Any and all disputes, claims, and causes of action that may arise from or relate to this Agreement or its enforcement, performance, breach, or interpretation, shall be resolved solely and exclusively by final, binding and confidential arbitration under the then-existing arbitration rules governing the resolution of employment disputes.  The place for holding any arbitration proceeding shall be mutually agreed to by the parties.  Notwithstanding the foregoing, any awards or orders in such arbitrations may be entered and enforced as judgments in the federal and state courts.

 

	
             
 	
            17.
 	
            Cooperation
 

 

You agree to cooperate with the Company in the truthful and honest prosecution and/or defense of any claim or investigation or inquiry by a governmental authority (including the Securities Exchange Commission and Internal Revenue Service) in which the Releasees may have an interest (subject to reasonable limitations concerning time and place), which may include without limitation (if following the Separation Date, for reasonable compensation for the time actually expended in such endeavors at the Company’s prior and specific request and, in any case, subject to the payment of reasonable expense incurred by you at the Company’s prior and specific request) making yourself available to participate in any proceedings or investigation involving any of the Releasees, allowing yourself to be interviewed by representative of the Company, appearing for depositions and testimony without
requiring a subpoena, and producing and/or providing documents or names of other persons with relevant information, all without a claim of privilege against the Releasees.

 

	
             
 	
            18.
 	
            Miscellaneous
 

 

This Agreement, including Exhibit A hereto constitutes the complete, final and exclusive embodiment of the entire agreement between you and the Company with regard to 

 

Kevin G. Gregory

December 8, 2005

Page 9

 

 

this subject matter.  It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises, warranties or representations.  You agree that neither this Agreement nor performance hereunder constitutes an admission by the Company of any violation of any federal, state or local law, regulation, common law, of any breach of any contract or any other wrongdoing of any type.  This Agreement may not be modified or amended except in a writing signed by both you and the CEO.  This Agreement shall bind the heirs, personal representatives, successors and assigns of both you and the Company, and inure to the  benefit of both you and the Company, their heirs, successors and assigns.  If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination will not
affect any other provision of this Agreement and the provision in question shall be modified by the court so as to be rendered enforceable in a manner consistent with the intent of the parties insofar as possible.  All payments to you shall be made in accordance with the Company’s normal payroll procedures and shall be less all appropriate deductions, such as social security, federal and state income tax withholding, medical, life insurance and other similar items.  This Agreement shall be deemed to have been entered into and shall be construed and enforced in accordance with the laws of the State of Michigan as applied to contracts made and to be performed entirely within Michigan.  Any ambiguity in this Agreement shall not be construed against either party as the drafter.  Any waiver of a breach of this Agreement shall be in writing and shall not be deemed to be a waiver of any successive breach.

 

Kevin, if this Agreement is acceptable to you, PLEASE SIGN BELOW AND RETURN THE ORIGINAL TO ME ON OR BEFORE TWENTY-ONE (21) DAYS FROM THE DATE YOU RECEIVE THIS AGREEMENT.  The offer of Separation Benefits contained in this Agreement will automatically lapse and expire if we do not receive the fully executed Agreement from you by the aforementioned date.  You should provide me with the original signed copy of the Separation Date Release (Exhibit A) on or within twenty-one (21) days after the date your employment with the Company terminates.

 

I wish you all the best in your future endeavors.

 

Sincerely,

 

Alan Aldworth

Chairman and Chief Executive Officer, ProQuest Company

 

BY SIGNING THIS AGREEMENT BELOW, I ACKNOWLEDGE THAT I HAVE CAREFULLY READ AND FULLY UNDERSTAND ALL OF THE PROVISIONS OF THIS AGREEMENT AND VOLUNTARILY ENTER INTO THIS AGREEMENT.

AGREED AND ACCEPTED:

 

 

	
             
 	
            /s/ Kevin G. Gregory
 	
            /s/ Alan Aldworth
 

 

 

Kevin G. Gregory

December 8, 2005

Page 10

 

 

 

Kevin G. Gregory                                          
                         Date

 

 

 

EXHIBIT A

 

SEPARATION DATE RELEASE

 

(TO BE EXECUTED ON OR WITHIN 21-DAYS AFTER THE SEPARATION DATE)

 

In exchange for the Separation Benefits and the other consideration being provided to me under that certain transition agreement  between me and the Company which I signed on December 8, 2005 (the “Agreement”), I hereby release, acquit and forever discharge the Company, and each of its officers, directors, agents, employees, attorneys, shareholders, predecessors, successors, parents, subsidiaries, assigns and affiliates, of and from any and all claims, liabilities, causes of action, and obligations of every kind and nature, in law, equity, or otherwise, known and unknown, arising out of or in any way related to agreements, events, acts or conduct at any time prior to and including the date I sign this Separation Date Release (the “Release”).  This release of claims includes, but is not limited to: (a) all such claims and demands directly or indirectly arising out of or in any way
connected with my employment with the Company or the termination of that employment; (b) all claims or demands related to salary, bonuses, commissions, stock, stock options, or any other ownership interests in the Company, vacation pay, fringe benefits, expense reimbursements, severance pay, or any other form of compensation; (c) all claims pursuant to any federal, state or local law, statute, or cause of action of any jurisdiction, including, but not limited to, the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), tort law, contract law, wrongful discharge, discrimination, harassment, fraud, defamation, emotional distress, and breach of the implied covenant of good faith and fair dealing.  Notwithstanding the foregoing, nothing in this paragraph shall be construed in any way to release any claims I may have under the Agreement or for
workers’ compensation or unemployment insurance benefits. 

 

I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under ADEA, and that the consideration given for the waiver and release herein is in addition to anything of value to which I was already entitled.  I further acknowledge that I have been advised by this writing, as required by the ADEA, that: (a) my waiver and release do not apply to any rights or claims that may arise after the date you sign this Release; (b) I have been advised hereby that I have the right to consult with an attorney prior to executing this Release; (c) I have been given twenty-one (21) days to consider this Release (although I may choose to voluntarily execute it earlier); (d) I have seven (7) days following the execution of this Release to revoke my agreement to it; and (e) this Release will not be effective until the date upon which the revocation period has expired, which will be the eighth
day after this Release is signed by me (the “Separation Date Release Effective Date”).

 

The Agreement along with separate letters pursuant to paragraph 2(b), if any, and this executed Release (collectively, the “Agreements”), constitutes the complete, final and exclusive embodiment of the entire agreement between me and the Company with regard to this subject matter.  I have executed this Release without reliance on any promise or representation, written or oral, other than those expressly contained in the Agreements. This Release is deemed 

 

 

 

 

 

incorporated into the Agreement, as a material part thereof and, specifically, subject to the terms and conditions of paragraphs 11 through 17 of the Agreement.

 

ACCEPTED AND AGREED:

 

 

	
             
 	
            /s/ Kevin G. Gregory
 	
            /s/ Alan Aldworth
 

Kevin G. Gregory

 

 

 

 

 

 

 

EXHIBIT B

PROQUEST COMPANY SEPARATION BENEFITS PLAN

 

 

 

 

 

 

 

EXHIBIT C

CONSULTING AGREEMENTCONSULTANT AGREEMENT

 

AGREEMENT, made this 8th day of December, 2005 by and between ProQuest Company ("ProQuest"), with a place of business at 777 Eisenhower Parkway, Ann Arbor, MI 48106, and Kevin Gregory ("Consultant"), who resides at 9137 Whispering Pines, Saline, MI 48176.

 

WHEREAS, ProQuest desires that Consultant be available to provide certain financial, tax and accounting services (the “Services”) as reasonably requested by ProQuest; and

 

	
             
 	
            WHEREAS, Consultant has the ability to perform such services;
 

 

NOW THEREFORE, in consideration of the foregoing and the terms hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

 

1.    Services To Be Provided.  Subject to the terms and conditions hereof, Consultant agrees to provide to ProQuest up to forty (40) hours of Services; provided, however, in no event shall Consultant be required to provide more than five hours per week or 10 hours per month for such Services.  

 

2.    Competitive Services Retained by ProQuest.  Nothing herein shall be deemed to preclude ProQuest from retaining the services of other persons or entities undertaking the same or similar services as those undertaken by Consultant or from independently developing or acquiring materials or programs that are similar to, or competitive with, the Services.

 

3.    Fees and Expenses.  No later than the first of each month, ProQuest shall pay Consultant a monthly retainer equal to Twenty-two Thousand Nine Hundred and Sixteen Dollars ($22,916) plus an amount equal to 1.45 percent of such retainer amount for the Services.  The retainer paid by ProQuest shall be non-refundable and earned by Consultant with the passage of time as an inducement to remain available as a Consultant to ProQuest during the course of this Consulting Agreement.  Consultant agrees to provide Services as reasonably requested by the Company during the term of this Agreement and to perform such Services as reasonably requested in good faith.  Such Services shall include consulting and other assistance that may arise with respect to subject matters that are within the scope of the expertise
of the Consultant as former CFO of ProQuest.  In addition to the monthly retainer, Consultant shall invoice ProQuest monthly for travel expenses related to travel authorized by ProQuest and all other expenses incurred hereunder as authorized by ProQuest.  If Consultant elects not to provide such Services that are reasonably requested by ProQuest during any one month period, then only to the extent Consultant fails to provide such Services ProQuest may elect to demand a repayment.  Failure by Consultant to provide such Services during any month shall not relieve ProQuest from its obligations to pay Consultant his monthly retainer for the remaining term of this Agreement.

 

4.    Invoices and Payment.  Consultant shall include with all invoices it delivers to ProQuest for payment copies of all receipts for expenses charged to ProQuest in connection with the Services to be provided.  

5.    Termination.  This Agreement shall commence January 1, 2006 and shall terminate on December 31, 2006; provided, however, if Consultant fails to timely sign the Separation Date Release (as defined in the letter agreement between Consultant and ProQuest of even date herewith) or subsequently revokes such Separation Date Release, then this Agreement 

 

	
             
 	
            - 1 -
 

 

 

shall immediately terminate with no further obligations from either party. The following paragraphs shall survive the termination of this Agreement:  2, 6 through 16.

 

6.    Work Product.  Consultant agrees that all materials developed, generated or produced by Consultant resulting from the provision of Services, including but not limited to information, documentation, flow charts, diagrams, reports, writings, both internal and external, and data ("Work Product") shall be the sole and exclusive property of ProQuest.  Consultant shall have no proprietary interest in the Work Product.  Consultant agrees that the Work Product is a work specially ordered and commissioned for use as contribution to a collective work and is a work made for hire and any materials produced, directly or indirectly, by Consultant resulting from the provision of Services, shall be the property of ProQuest.

 

7.    Ownership.  To the extent that the Work Product or any portion thereof is not considered a work made for hire by a court of competent jurisdiction, Consultant hereby assigns to ProQuest the ownership of copyright in such materials, without the necessity of any further consideration, and the ProQuest shall be entitled to obtain and hold in its own name all copyrights in respect of such materials.  If and to the extent Consultant may, under applicable law or otherwise, be entitled to claim any ownership interest in the Work Product, Consultant hereby transfers, grants, conveys, assigns, and relinquishes exclusively to the ProQuest all of Consultant's right, title, and interest in and to such materials in perpetuity or for the longest period otherwise permitted by law.  Consultant shall perform any
acts that may be deemed necessary or desirable by ProQuest, in its sole discretion, to further evidence transfer of ownership of the Work Product to the ProQuest to the fullest extent possible, including but not limited to, the making of further written assignments in a form determined by the ProQuest.

 

8.    License.  To the extent that any preexisting rights are embodied or reflected in the Work Product which Consultant does not own but only has the right to license to ProQuest, Consultant hereby grants to the ProQuest the irrevocable, perpetual, non-exclusive, worldwide, royalty-free right and license to (i) use, execute, reproduce, display, perform, distribute copies of, and prepare derivative works based upon such preexisting rights and any derivative works thereof and (ii) authorize others to do any or all of the foregoing.

 

9.    Proprietary Information.  Consultant acknowledges that in the course of performing the Services, Consultant has been or may be given access to proprietary and confidential information of ProQuest, (collectively, "Proprietary Information") which includes without limitation: (a) any data or information that is competitively sensitive material, and not generally known to the public, including, but not limited to, product planning information, marketing strategies, plans, finance, operations, customer relationships, customer profiles, sales estimates, business plans, and internal performance results relating to the past, present or future business activities of contractor, its parent corporation, its subsidiaries and affiliated companies and the customers, clients and suppliers of any of the
foregoing; (b) any scientific or technical information design, process, procedure, formula, or improvement that is commercially valuable and secret in the sense that its confidentiality affords ProQuest a competitive advantage over its competitors;  (c) all confidential or proprietary concepts, documentation, reports, data, specifications, computer software, source code, object code, flow charts, data, databases, inventions, information know-how, show-how and trade secrets, whether or not patentable, or copyrightable;  (d) Work Product and inventions; and (e) all documents, inventions, substances, engineering and laboratory notebooks, drawings, diagrams, specifications, bills or material, equipment, prototypes and models, and any other tangible manifestation of the foregoing which now exist or come into the control or possession of Consultant.  Consultant agrees to hold in the strictest confidence, and to use all reasonable means and care to safeguard, the Proprietary Information and
to prevent the unauthorized use 

 

	
             
 	
            - 2 -
 

 

 

or disclosure thereof.  Either during or after Consultant's engagement with ProQuest, Consultant will not disclose to anyone outside of ProQuest, nor use in other than ProQuest's business, except with the prior written permission of an officer of ProQuest any Proprietary Information or proprietary thing that is received in confidence by ProQuest or for ProQuest from any other person or entity.  Any copies or reproductions of the Proprietary Information shall bear the patent, copyright, trademark or proprietary notices contained in the original.  Upon the request of the ProQuest or the completion or termination of Services, but in any event upon termination of this Agreement, Consultant shall surrender to ProQuest all memoranda, notes, records, drawings, manuals, computer software, and other documents or materials (and all copies of same) pertaining to or including the Proprietary Information.  Upon the
return of such materials, Consultant agrees to certify, in writing, that all of the foregoing materials have been returned to the ProQuest.  Consultant also agrees to abide by the terms and conditions of software license, non-disclosure and confidentiality agreements entered into by the ProQuest with third parties ("Third Party Agreements"), and such third parties shall be third party beneficiaries of this Agreement.  Irrespective of the above, ProQuest hereby agrees that it shall not be entitled to own, license or utilize any of Consultant's proprietary technologies either directly or indirectly, without the written consent of Consultant.

 

10.  Irreparable Harm.  Consultant acknowledges that use or disclosure of any Proprietary Information in a manner inconsistent with this Agreement or breach of Third Party Agreements will give rise to irreparable injury to ProQuest or such third parties inadequately compensable in damages. Accordingly, in addition to any other legal remedies which may be available, at law or in equity, ProQuest or such third parties shall be entitled to equitable or injunctive relief against the breach or threatened breach of such unauthorized use or disclosure or breach or threatened breach of Third Party Agreements.

 

11.  Solicitation of Personnel and Similar Service.  During the term of this Agreement, Consultant agrees not to recruit, solicit, employ or utilize, for Consultant or others, the employees of the ProQuest or any of ProQuest's consultants or subcontractors.

 

12.  Independent Contractors.  It is expressly agreed that ProQuest and Consultant are acting hereunder as independent contractors and under no circumstances shall any employees of one party be deemed the employees of the other for any purpose.  Consultant shall not be considered or deemed to be an agent, employee, joint venturer, or partner of ProQuest. Consultant shall have no authority to contract for or bind the ProQuest in any manner and shall not represent itself as an agent of the ProQuest or as otherwise authorized to act for or on behalf of the ProQuest.  Consultant Personnel shall have no status as employee or any right to any benefits that the ProQuest grants its employees. ProQuest shall not be responsible for payment of workers' compensation, disability benefits and unemployment insurance or for
withholding and paying employment taxes for Consultant Personnel, but such responsibility shall be that of Consultant.  

 

13.  Publicity and Use of Trademarks.  Consultant shall not use the name, logo, trademarks, trade names or any facsimile thereof of ProQuest in publicity releases, promotional material, advertising, marketing or business generating efforts without securing the prior written consent of ProQuest.  The parties agree that Consultant may disclose the existence, parties, terms and conditions and other matters relating to this Agreement, and may file copies of this Agreement with public agencies, to the extent necessary to comply with applicable law, including without limitation, the rules and regulations of the Securities and Exchange Commission and to the extent necessary in connection with review by lending institutions, subject to appropriate confidentiality restrictions.

 

 

	
             
 	
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14.  Dispute Resolution.  Any and all disputes, claims, and causes of action that may arise from or relate to this Agreement or its enforcement, performance, breach, or interpretation, shall be resolved solely and exclusively by final, binding and confidential arbitration under the then-existing arbitration rules governing the resolution of employment disputes.  The place for holding any arbitration proceeding shall be mutually agreed to by the parties.  Notwithstanding the foregoing, any awards or orders in such arbitrations may be entered and enforced as judgments in the federal and state courts.

 

15.   Attorneys Fees.  In the event Consultant receives an award from the arbitration proceedings pursuant to paragraph 14 above due to ProQuest’s breach of this Agreement, then ProQuest shall pay Consultant an amount equal to the reasonable attorneys fees and expensed incurred by Consultant as a result of such proceeding.

 

16.  Miscellaneous.               This Agreement constitutes the complete, final and exclusive embodiment of the entire agreement between you and the Company with regard to this subject matter.  It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises, warranties or representations.  You agree that neither this Agreement nor performance hereunder constitutes an admission by the Company of any violation of any federal, state or local law, regulation, common law, of any breach of any contract or any other wrongdoing of any type.  This Agreement may not be modified or amended except in a writing
signed by both you and the CEO.  This Agreement shall bind the heirs, personal representatives, successors and assigns of both you and the Company, and inure to the benefit of both you and the Company, their heirs, successors and assigns.  If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other provision of this Agreement and the provision in question shall be modified by the court so as to be rendered enforceable in a manner consistent with the intent of the parties insofar as possible.  This Agreement shall be deemed to have been entered into and shall be construed and enforced in accordance with the laws of the State of Michigan as applied to contracts made and to be performed entirely within Michigan.  Any ambiguity in this Agreement shall not be construed against either party as the drafter.  Any waiver of a breach of this Agreement shall be in writing and shall not be deemed to be a waiver
of any successive breach.

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

 

	
            Kevin Gregory
 	
            ProQuest Company
 

 

	
            _____________________________
 	
            By:  ____________________________
 

Signature

	
             
 	
            Name:  _________________________
 

 

	
             
 	
            Title:  ___________________________
 

 

 

 

	
             
 	
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