Document:

EXHIBIT 10.2

EXECUTION
COPY

CERIDIAN CORPORATION

Personal and Confidential

 

	
  Date:

  	
  March 8, 2007

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  To:

  	
  Douglas C. Neve

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  From:

  	
  Kathryn Marinello

  Kairus Tarapore

  	
   

  	
   

  

 

 

Subject:              Mutual
Termination Agreement

 

This
Mutual Termination Agreement (the “MTA”) will
confirm the agreement to mutually terminate the employment relationship between
Ceridian Corporation, on behalf of itself and its subsidiaries, affiliates,
directors, officers, successors, assigns, and agents (“Ceridian”)
and you.  In addition, and pursuant to Ceridian’s Corporate Governance
Policies and Guidelines, you have resigned as an officer of the Corporation
effective March 8, 2007 (the “Termination Date”).  For purposes of this Agreement, the term “Payment Date” shall mean any date
within five business days following satisfaction of the Release Conditions
(subject to paragraph 25 of this MTA). 
For purposes of this Agreement, the term “Release
Conditions” shall mean (a) your execution and delivery to
Ceridian of the Release attached as Exhibit A to this MTA (the “Release”) and (b) your
non-revocation of the Release during the fifteen calendar days following your
execution and delivery to Ceridian of the Release.

1.                                       Termination of Executive Employment Agreement

This
MTA shall constitute notice of termination of the Executive Employment
Agreement between you and Ceridian, dated March 14, 2005 (“EEA”)
pursuant to paragraphs 4.03(b) and 9.03 of the EEA.  The EEA and any other
written or verbal agreements between Ceridian and you, if any, are hereby
terminated and, except as expressly provided for in this MTA (including without
limitation, paragraphs 12 and 13 of this MTA), are of no further force or
effect; it being understood and agreed that specified provisions of the EEA
shall survive and be incorporated by reference into this MTA as provided
below.  By mutual agreement with
Ceridian, you hereby resign, effective as of the Termination Date, from your
positions as Executive Vice President and Chief Financial Officer of Ceridian,
and from all other positions you may currently hold as an officer or member of
the Board of Directors of any of Ceridian’s subsidiaries or affiliates.  You shall sign and deliver to Ceridian such
other documents as may reasonably be requested to reflect such resignations.

2.                                       Notice Payment

Pursuant to
paragraph 4.03(b) of the EEA, on the Payment Date, Ceridian will pay to you
$82,192, less applicable withholdings, such amount representing your base
salary through the 75 day notice period.

3.                                       Base Salary Payment

Pursuant
to paragraph 4.03(b) of the EEA, on the Payment Date, Ceridian shall pay to you
$850,000, less applicable withholdings, such amount representing two years’
base salary and annual perquisite cash adder, which amount includes severance,
if any, under the Ceridian Severance Plan.

4.                                       2007
Pro Rata Bonus

Pursuant
to paragraph 4.03(b) of the EEA, as soon as practicable following January 1,
2008, but in no event later than March 15, 2008, or, if earlier, upon the
occurrence of a change of control of Ceridian within the meaning of Section
409A (“Section 409A”)
of the Internal Revenue Code of 1986, as amended, Ceridian shall pay to you $106,667, less applicable withholdings, such
amount representing the “target” bonus, if any, to which you may
otherwise have become entitled under all applicable Ceridian annual bonus plans
in effect on the Termination Date had you remained continuously employed for
the full fiscal year in which the Termination Date occurred, multiplied by a
fraction, the numerator of which is the number of whole months you were
employed during the year in which the Termination Date occurs (providing credit
for the 75 day notice period referred to in paragraph 2 of this MTA) and the
denominator of which is 12.

5.                                       Outplacement

Pursuant
to paragraph 4.03(b) of the EEA, in accordance with your request and in full
satisfaction of the obligation to make arrangements for reasonable outplacement
services, on the Payment Date, Ceridian shall pay to you $20,000, less
applicable withholdings.

6.                                       Ceridian Stock Options and Restricted Stock

Options
to purchase shares of Ceridian common stock (“Stock
Options”),  shares of
Ceridian common stock subject to transfer restrictions (“Restricted
Shares”) and restricted stock units awarded to you by Ceridian
as an employee which have not yet vested (“Accelerated Equity”)
as of the Termination Date will vest in full upon the Termination Date; provided, however, that
(a) you may not exercise any Stock Options that comprise Accelerated Equity and
you may not sell or otherwise transfer any shares of Ceridian common stock that
constitute Accelerated Equity until the satisfaction of the Release Conditions
and (b) if the Release Conditions are not satisfied by March 24, 2007, you
agree to forfeit any such Accelerated Equity and return to Ceridian any amounts
realized on the sale of shares of Ceridian common stock underlying such
Accelerated Equity or any other disposition of the Accelerated Equity. 
Stock Options which are vested as of or upon the Termination Date must be
exercised within ninety (90) days of the Termination Date or they will be
forfeited.  Restricted Shares, when the restrictions are lifted, are
registered in your name at the Bank of New York.  Except as provided in
the first sentence of this paragraph 6, Ceridian will not restrict your right
to sell shares of Ceridian common stock following the Termination Date; provided, however, that you
agree not to sell shares of

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Ceridian
common stock in violation of the provisions of the federal securities laws,
including Rule 10b5-1 under the Securities Exchange Act of 1934.

7.                                       Ceridian Savings and Investment Plan (401(k))

Upon
the Termination Date, your active participation in the Ceridian Saving and
Investment Plan will cease and you will be eligible to receive benefits in
accordance with the terms and conditions of the Ceridian Savings and Investment
Plan.

8.                                       Deferred Compensation  

Upon
the Termination Date, your active participation in the Ceridian Deferred
Compensation Plan will cease.  You will be eligible to receive
distributions of vested account balances in the aggregate amount of $29,051.66
in accordance with the terms and conditions of the Ceridian Deferred
Compensation Plan, including applicable vesting and payment terms.  Unvested account balances as of the
Termination Date shall be forfeited.

9.                                       Benefits

a.                                          Long Term Care
Insurance

In
satisfaction of Ceridian’s obligations pursuant to paragraph 4.06(b) of the
EEA, Ceridian shall prepay all remaining premium payments under the long term
care insurance policy referenced in Section 4.06(b) of the EEA following
satisfaction of the Release Conditions.

b.                                         Personal Days Off

On
the Payment Date, Ceridian shall pay to you a lump sum payment of $30,788.46,
representing all accrued personal days off, subject to applicable withholding.

c.                                          Health and Dental
Coverage

The
health and dental coverage in which you and any dependents are currently
enrolled terminates on the last day of the month in which the Termination Date
occurs.  You will be eligible for
benefits pursuant to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) for up to eighteen months
following the Termination Date.  If you
elect COBRA benefit continuation in accordance with the immediately preceding
sentence, Ceridian will subsidize the COBRA payments until September 30, 2007
such that you will be required to pay no more for the above mentioned benefits
through September 30, 2007 than you would have been required to pay had you
continued to be an active employee of Ceridian through such period.  Your continued participation in any
healthcare plans of Ceridian in accordance with the terms hereof will run
simultaneously with, and therefore reduce, the eighteen month coverage
continuation period under COBRA.

d.                                         Life Insurance

All
of your company-paid, additional and dependent life insurance will
automatically terminate at midnight on the last day of the month in which the
Termination Date occurs.  You will be
eligible to continue life insurance at your expense in accordance with the
provisions of the applicable plan.

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e.                                          Other Insurance

Business Travel
Accident, Accidental Death and Dismemberment Insurance and short-term and
long-term disability provided by Ceridian shall terminate at midnight on the
Termination Date.

f.                                            Tax Reimbursement

The
terms and conditions of Section 7.04 of the EEA are incorporated by reference
into this MTA and shall remain in full force and effect and any capitalized
terms used in such Section 7.04 shall have the meanings ascribed to such terms
in the EEA.  In the event of a legal
dispute between you and Ceridian regarding the enforcement of Ceridian’s
obligations or the defense of your rights under Section 7.04 of the EEA, if you
ultimately prevail in any such legal dispute (following Ceridian’s exhaustion
of all permissible appeals or the expiration of any period during which to
appeal any such determination) you shall be entitled to recover from Ceridian
reasonable expenses for attorneys’ fees and disbursements incurred.

10.                                 Outstanding Obligations

You
agree that you will satisfy all outstanding obligations associated with your
employment with Ceridian, including, but not limited to, (a) return of any
Ceridian equipment, (b) completion of outstanding expense reports and
remittance of unused travel advances or travel advances employed for personal
use, and (c) payment of the balance of any personal charges on your Ceridian
credit card, no later than the tenth day following the Termination Date (or if
that day is not a business day, on the first business day thereafter).

11.                                 Pending and Threatened Litigation and Claims

Ceridian
currently is involved in litigation commenced by or on behalf of shareholders
and other third parties and is currently subject to an investigation by the
Securities and Exchange Commission (“SEC”), and
in the future may become involved in other lawsuits, arbitrations or other
dispute resolutions or be subjected to other claims (collectively, “Company Litigation”).  You may
be requested or subpoenaed to provide testimony to the SEC, or subpoenaed to
give deposition testimony or to testify at trial in Company Litigation. 
It also may be to Ceridian’s benefit to have you work with Ceridian in the
defense of Company Litigation.  Further, it is possible that you could be
named as a party-defendant in future litigation involving Ceridian.  In
view of these circumstances, you and Ceridian agree as follows:

a.                                          Cooperation

You
will make yourself reasonably available upon request to confer with Ceridian’s
senior executive officers and lawyers at mutually convenient times and places
during regular business hours for reasonable amounts of time regarding Company
Litigation.  You will also cooperate with
the SEC investigation.  Ceridian will
reimburse you for your reasonable travel expenses and costs incurred as a
result of your assistance under this Section 11(a).  In addition, Ceridian will pay you a fee of
$1,000 per day for each full business day in which you render services pursuant
to this Section 11(a), subject to reasonable pro-ration for partial business
days.

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b.                                         Indemnification
and Advancement of Expenses

Notwithstanding
your separation from Ceridian’s employment, with respect to events that
occurred during your tenure as an officer of Ceridian, you will be entitled, as
a former officer of Ceridian, to the same rights that are afforded to its
directors and senior executive officers now or in the future, to
indemnification and advancement of expenses pursuant to and as provided in the
Indemnification Agreement with you, in the Ceridian charter and bylaws and
under applicable law, and to coverage and a legal defense under any applicable
general liability and/or directors’ and officers’ liability insurance policies
maintained by Ceridian.

c.                                          Counsel

The
provisions of this paragraph c are subject to eligibility for indemnification
and advancement of expenses under paragraph b above.  Ceridian will
provide legal counsel at its expense to represent you in Company Litigation,
which legal counsel may be the same legal counsel that is representing Ceridian
at the same time (“Company Counsel”).  In
the unlikely event that a conflict or adversity develops between you and
Ceridian that would, under Rule 1.7 of the Minnesota Rules of Professional
Conduct, preclude the continued representation of you by Company Counsel in
Company Litigation, then you will have the right to withdraw from the
representation provided by Company Counsel and to select your own legal counsel
to continue to represent you in Company Litigation, in which event Ceridian will
reimburse you for the reasonable attorneys’ fees and costs that are charged by
your own legal counsel.  If such a
circumstance exists you consent to Company Counsel continuing to represent
Ceridian and other current and former officers and directors.  Notwithstanding any other provision of this
paragraph, you have the right to retain your own legal counsel, at your own
expense, to represent you in Company Litigation jointly with Company Counsel,
or to represent you in any other legal matters involving you and Ceridian.

12.                                 Confidentiality, Disclosure and Assignment

The
terms and conditions of Article V of the EEA, including without limitation,
paragraphs 5.01 and 5.02 of the EEA, are incorporated by reference into this
MTA and shall remain in full force and effect and are not altered by this MTA
and any capitalized terms used in such Article V shall have the meanings
ascribed to such terms in the EEA.  You
may retrieve and retain any information of a purely personal nature, including
your cell phone number and any purely personal data stored on any Ceridian
device; provided, however,
that such retrieval shall not interfere unreasonably with Ceridian’s
operations.

13.                                 Non-Competition/Non-Recruitment and
Non-Disparagement

The
terms and conditions of Article VI of the EEA, including without limitation
paragraphs 6.02, 6.03 and 6.04 of the EEA, are incorporated by reference into
this MTA and shall remain in full force and effect and are not altered by this
MTA and any capitalized terms used in such Article VI shall have the meanings
ascribed to such terms in the EEA.  For the avoidance of doubt, you agree
that the restrictive covenants set forth in Article VI of the EEA relating to
Non-Competition and Non-Recruitment shall apply to you until March 8, 2009.

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14.                                 No Adequate Remedy

We
each agree that it is impossible to measure in money the damages which would
accrue to either of us by reason of a failure to perform any of the obligations
under this MTA or the EEA and therefore injunctive judicial relief, in court,
is appropriate.  Therefore, if either party shall institute any action or
proceeding to enforce the provisions hereof, such party against whom such
action or proceeding is brought hereby waives the claim or defense that such
party has an adequate remedy at law.

15.                                 Successors and Assigns

This
MTA shall be binding upon and inure to the benefit of the successors and
assigns of Ceridian, whether by way of merger, consolidation, operation of law,
assignment, purchase or other acquisition.  This MTA shall not be assignable
by you.

If
you should die before all the payments required to be made to you by Ceridian
by this MTA have been made, then all remaining payments specified in such
paragraphs shall be made by Ceridian to your wife, if she is then living, or to
your estate, if she is not living.

16.                                 Governing Law

This
MTA shall be governed and construed in accordance with the laws of the State of
Minnesota, without giving effect to the conflicts of law principles thereof and
any and every legal proceeding arising out of or in connection with this MTA
shall be brought in the appropriate courts of the State of Minnesota, each of
the parties hereby consenting to the exclusive jurisdiction of said courts for
this purpose.

17.                                 Entire Agreement

This
MTA (including those sections of the EEA that are incorporated by reference
into this MTA) constitutes the entire understanding between you and Ceridian,
and supersedes all prior discussions, representations, and negotiations with
respect to the matters herein relating to your termination.  You will not be entitled to any additional
compensation or benefits from Ceridian or its subsidiaries or affiliates,
except as provided in this MTA, including with respect to those items described
in paragraphs 7, 8 and 19 of this MTA.

18.                                 Representations

You acknowledge that you are not aware of any
violations or possible violations of Ceridian’s Code of Conduct by any person
that have not been addressed and resolved. 
You are not aware of any
prior certifications provided by you with respect to any of Ceridian’s SEC
filings that are untrue in any material respect.

19.                                 Waiver of Other Payments and Benefits;
Acknowledgment

The compensation and benefits arrangements set forth in this MTA are in
lieu of any rights or claims that you may have with respect to severance or
other benefits, or any other form of remuneration from Ceridian or any of its
subsidiaries or affiliates, other than benefits under any tax-qualified
employee pension benefit plans subject to the Employee Retirement Income
Security Act of 1974, as amended (including Ceridian’s 401(k) plan), and
without

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limiting the generality of the foregoing, you hereby expressly waive
any right or claim that you may have or could assert to payment for salary,
bonuses, medical, dental or hospitalization benefits, payments under
supplemental retirement plans and incentive plans, life insurance benefits,
expenses and attorneys’ fees, except as otherwise provided in this MTA or as
mandated under applicable law.  You agree
that the payment of the amounts set forth in this MTA is in consideration of
your obligations under this MTA.  Without
limiting any other remedies available to Ceridian, Ceridian shall be entitled
to withhold any unpaid portion of payments contemplated by this MTA if you fail
to comply in any material respect with any of the material terms of this MTA;
it being understood that in the event that Ceridian withholds any payments
pursuant to this sentence and you challenge such withholding pursuant to
paragraph 16 of this MTA, Ceridian may ultimately withhold such amounts only to
the extent of any damages finally determined pursuant to paragraph 16 of this
MTA.  Ceridian acknowledges that the
amounts due to you under Ceridian’s 401(k) plan and any amounts due to you
under applicable law do not constitute consideration for the Release, and you
acknowledge that the payments and benefits contemplated by paragraphs 2 through
6 and paragraphs 9(a), (c) and (f) of this MTA do constitute consideration for
the Release.

20.          Public Statements

The
parties agree that the Executive’s termination of employment will be announced
by the statement attached hereto as Exhibit B, and no subsequent comments shall
be made to the media or through other public statements by any party hereto or
any of their respective representatives regarding your termination of
employment that are inconsistent with such statement, except as may be required
by applicable law or regulation.  Neither
Ceridian, nor its chief executive officer or directors, will make disparaging
statements, in any form, about you which any such party knows, or has reason to
believe, are false or misleading.

21.          Tax Withholding.  

Notwithstanding any other provision of this MTA, Ceridian may withhold
from any amounts payable under this MTA, or any other benefits received
pursuant hereto, such Federal, state and/or local taxes as shall be required to
be withheld under any applicable law or regulation.

22.          Notices

All notices, requests and demands given to or made pursuant hereto
shall, except as otherwise specified herein, be in writing and be delivered or
mailed to any such party at its address:

(a)  If to Cerdian:

Ceridian Corporation

3311 East Old Shakopee Road

Minneapolis, Minnesota
55425-1640

Attention:  Office of General
Counsel

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(b)
If to you:

Douglas C. Neve

10797 Purdey Road

Eden
Prairie, MN 55347

Either party may, by notice hereunder, designate a changed
address.  Any notice, if mailed properly
addressed, postage prepaid, registered or certified mail, shall be deemed
dispatched on the registered date or that stamped on the certified mail
receipt, and shall be deemed received within the second business day thereafter
or when it is actually received, whichever is sooner.

23.          Waivers.

No
failure on the part of either party to exercise, and no delay in exercising,
any right or remedy hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any right or remedy hereunder preclude any other
or further exercise thereof or the exercise of any other right or remedy
granted hereby or by any related document or by law.

24.          Modification.

No supplement,
modification, or amendment of this MTA shall be binding unless executed in
writing by both you and Ceridian.

25.          409A

If
any compensation or benefits provided by this MTA would reasonably be expected
to result in the application of Section 409A, Ceridian shall, in consultation
with you, modify this MTA in the least restrictive manner necessary in order
to, where applicable, (a) exclude such compensation from the definition of “deferred
compensation” within the meaning of such Section 409A or (b) comply with the
provisions of Section 409A and/or any rules, regulations or other regulatory
guidance issued under Section 409A.

26.          Release

You agree and
acknowledge that your receipt of each and every payment and each and every
benefit described in this MTA is conditioned upon satisfaction of the Release
Conditions.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

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  CERIDIAN CORPORATION

  	
   

  	
   

  	
  DOUGLAS C. NEVE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Gary M. Nelson

  	
   

  	
  /s/ Douglas C.
  Neve

  	
   

  
	
   

  	
  Gary M. Nelson

  	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
  Executive Vice President,

  CAO, General

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Counsel and Corporate

  Secretary

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  As of 3/8/07

  	
   

  	
  Date:

  	
  As of 3/8/07

  	
   

  	
   

  
								

 

 

Exhibit A

RELEASE

Reference is made to the Mutual Termination Agreement,
dated March 8, 2007, between Ceridian Corporation and me (the “Mutual Termination Agreement”).  I, Douglas C. Neve, on behalf of myself, and
all other persons claiming through me, in consideration of the payments under
the Mutual Termination Agreement, subject to appropriate withholding, which
includes compensation to which I would not otherwise be entitled, do, except as
specifically provided below, hereby fully and completely release and waive any
and all claims, complaints, causes of action or demands of whatever kind which
I have or may have against Ceridian Corporation, its predecessors, successors,
subsidiaries and affiliates and all past and present members of the Board of
Directors, officers, employees and agents of those persons and companies
(collectively, “Ceridian”) arising out of any
actions, conduct, decisions, behavior or events occurring up to the date of my
execution of this Release.

I understand and accept that this Release specifically
covers but is not limited to any and all claims, complaints, causes of action
or demands which I have or may have against the above-referenced released
parties relating in any way to the terms, conditions and circumstances of my
employment up to the date of my signature below, any form of employment
discrimination prohibited under any state’s human rights act, Title VII of the
Federal Civil Rights Act of 1964 and the Federal Age Discrimination in
Employment Act.  I further understand that this Release extends to but is
not limited to all claims which I may have based on statutory or common law
claims for negligence or other breach of duty, wrongful discharge, breach of
contract, breach of any express or implied promise, misrepresentation, fraud,
retaliation, breach of public policy, infliction of emotional distress,
defamation, promissory estoppel, failure to pay wages or any other theory,
whether legal or equitable. Notwithstanding the foregoing, I do not waive my
rights to (i) enforce the performance by Ceridian of its obligations under the
Mutual Termination Agreement (including, without limitation, the obligation to
make the payments and provide the benefits described in the Mutual Termination
Agreement), (ii) any pension or other employee benefits payable pursuant to the
terms of the applicable plans of Ceridian or any affiliate, which benefits
shall be paid or provided in accordance with the terms of such plans or (iii)
indemnification from Ceridian with respect to my service with Ceridian, whether
provided pursuant to Ceridian’s bylaws or otherwise.

Nothing contained herein, however, shall be construed
to prohibit me from filing a charge with the Equal Employment Opportunity
Commission, but my release includes a release of my right to file a court
action or to seek individual remedies or damages in any Equal Employment
Opportunity Commission-filed court action, and my release of these rights shall
apply with full force and effect to any proceedings arising from or relating to
such a charge.

I agree that my only remedy for any dispute I have
about the enforceability of this Release shall be to submit that dispute to
final and binding arbitration in accordance with the rules of the American
Arbitration Association.  Ceridian and I agree that I must send written
notice of any claim to Ceridian by certified mail, return receipt
requested.  Written notice to Ceridian shall be sent to its Secretary at
3311 East Old Shakopee Road, Minneapolis, MN 55425-1640.

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I understand that I may rescind this Release if I do
so in writing, delivered by certified mail, return receipt requested, to Office
of the General Counsel, Ceridian Corporation, 3311 East Old Shakopee Road,
Minneapolis, MN 55425-1640, within fifteen (15) calendar days of the date of my
signature below.  Upon the expiration of fifteen (15) calendar days from
the date indicated below, if I have not rescinded this Release, then Ceridian
Corporation shall promptly deliver to me the above-referenced payments
contemplated by the Mutual Termination Agreement, subject to appropriate
withholding, this Release being contingent upon payment of those amounts.

If sent
by mail, the rescission must be:

·              Postmarked
within the 15 calendar-day period;

·              Properly
addressed to Ceridian; and

·              Sent by certified mail, return
receipt requested.

By my signature below, I acknowledge that I fully
understand and accept the terms of this Release, and I represent and agree that
my signature is freely, voluntarily and knowingly given.  I have had 21
days in which to consider this agreement, and to the extent I execute this
agreement before the expiration of the twenty-one day period, I do so knowingly
and voluntarily and only after consulting with my attorney.  By my
signature below, I further acknowledge that I have been provided a full
opportunity to review and reflect on the terms of this Release and to seek the
advice of legal counsel of my choice, which advice I have been encouraged to
obtain.

If I do not execute this Release within 30 days after
I receive it, the offer Ceridian has made for a payment herein is null and
void.

 

	
  

  	
   

  	
  DOUGLAS C. NEVE

  
	
   

  	
   

  	
   

  	
   

  	 

	
  Date:

  	
  March 8, 2007

  	
   

  	
  /s/ Douglas C.
  Neve                   

  	
   

  	
   

  	 

							

 

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Exhibit
B

CERIDIAN ANNOUNCES DEPARTURE OF

DOUGLAS C. NEVE AS
CHIEF FINANCIAL OFFICER

MINNEAPOLIS, March [XX],
2007 — Ceridian Corporation (NYSE: CEN) today announced that it has reached a
mutual agreement with Douglas C. Neve, the Company’s Chief Financial Officer,
with respect to his departure from the Company, effective immediately.

“Doug has been a valued
member of the senior management team and we thank him for his significant
contributions to Ceridian over the past few years,” said Kathryn V. Marinello,
President and Chief Executive Officer of Ceridian.  “All of us wish Doug the best in his future
endeavors.”

Mr. Neve joined Ceridian
as Chief Financial Officer in 2004, and previously served as a Senior Audit
Partner with Deloitte & Touche LLP.

About Ceridian

Ceridian Corporation
(www.ceridian.com) is an information services company serving businesses and
employees in the United States, Canada and Europe. Ceridian is one of the top
human resources outsourcing companies in each of its markets, and offers a
broad range of human resource services, including payroll, benefits
administration, tax compliance, HR information systems and Employee Assistance
Program (EAP) and work-life solutions. Through its Comdata subsidiary, Ceridian
is a major payment processor and issuer of credit cards, debit cards and stored
value cards, primarily for the trucking and retail industries in the United
States.

CONTACTS:

Media Relations:

Pete Stoddart

Ceridian
Corporation

952-853-4278

Investor
Relations:

Craig Manson

Ceridian Corporation

952-853-6022Exhibit 10.1

DITECH NETWORKS, INC.

2006 EQUITY INCENTIVE PLAN

RESTRICTED STOCK AWARD AGREEMENT

Pursuant to the Notice of Grant of Award (“Grant Notice”) and
this Restricted Stock Award Agreement (“Agreement”), Ditech Networks, Inc. (the “Company”) has awarded
you (“Participant”) the right to
acquire shares of Common Stock from the Company pursuant to Section 7(a) of the
Company’s 2006 Equity Incentive Plan (the “Plan”) for
the number of shares indicated in the Grant Notice (collectively, the “Award”).  The Award is granted in exchange for past or
future services to be rendered by you to the Company or an Affiliate.  In the event additional consideration is
required by law so that the Common Stock acquired under this Agreement is
deemed fully paid and nonassessable, the Board shall determine the amount and
character of such additional consideration to be paid.  Defined terms not explicitly defined in this
Agreement but defined in the Plan shall have the same definitions as in the
Plan.

The details of your Award, in
addition to those set forth in the Grant Notice, are as follows.

1.                                      ACQUISITION
OF SHARES.  By signing the Grant Notice, you
hereby agree to acquire from the Company, and the Company hereby agrees to
issue to you, the aggregate number of shares of Common Stock specified in your
Grant Notice for the consideration set forth in Section 3 and subject to all of
the terms and conditions of the Award and the Plan.  You may not acquire less than the aggregate
number of shares specified in the Grant Notice.

2.                                      CLOSING.  Your acquisition of the shares shall be consummated as follows:

(a)                                  You will acquire the shares by delivering your
Grant Notice, executed by you in the manner required by the Company, to the Corporate Secretary of the Company, or to such other person as the Company may designate, during regular business hours, on
the date that you have executed the Grant Notice (or at such other time
and place as you and the Company may mutually agree upon in writing) (the “Closing Date”) along with any
consideration, other than your past or future services, required to be
delivered by you by law on the Closing Date and such additional documents as the Company may then require.

(b)                                  The Company will
direct the transfer agent for the Company to deliver to the Escrow Agent pursuant to the terms of Section 9 below, the
certificate or certificates evidencing the shares of Common Stock being
acquired by you.  You acknowledge and
agree that any such shares may be held in book entry form directly registered
with the transfer agent or in such other form as the Company may determine.

3.                                      CONSIDERATION.  Unless
otherwise required by law, the shares of Common Stock to be delivered to you on
the Closing Date shall be deemed paid, in whole or in part in exchange for past
and future services to be rendered to the Company or an Affiliate in the amounts and to the extent required by law.

4.                                      VESTING.

(a)                                  The shares will vest as provided in the Vesting
Schedule set forth in your Grant Notice, provided that vesting shall cease upon
the termination of your Continuous Service. Note that if a vesting date falls
on a day that is not a business day, such day shall instead fall on the last
preceding business day.  Notwithstanding
the foregoing, in the event that you are subject to the Company’s Stock Trading By Officers and Directors
policy (or any successor policy) and any shares covered by your Award vest on a
day (the “Original Vest Date”) that
does not occur during a “window period” applicable to you as determined by the
Company in accordance with such policy, then such shares shall not vest on such
Original Vest Date and shall instead vest on the earliest to occur of the
following: (i) the first day of the next “window period” applicable to you
pursuant to such policy; (ii) your Involuntary Termination Without Cause (as
defined in Section 4(b) below) after the Original Vest Date; or (iii) the day
that is sixty (60) days after the Original Vest Date.  Shares acquired by you that have vested in
accordance with the Vesting Schedule set forth in the Grant Notice and this
Section 4(a) or any other provision of the Plan are “Vested
Shares.”  Shares acquired
by you pursuant to this Agreement that are not Vested Shares are “Unvested Shares.”

(b)                                  For purposes of this Agreement, “Involuntary Termination Without Cause”
shall mean the Company’s termination of your Continuous Service unless such
termination was on account of the occurrence of any of the following: (i) your
commission of any felony or any crime involving fraud, dishonesty or moral
turpitude; (ii) your attempted commission of, or participation in, a fraud or
act of dishonesty against the Company or an Affiliate; (iii) your intentional,
material violation of any material contract or agreement between you and the
Company or an Affiliate or any statutory duty owed to the Company or an
Affiliate; (iv) your unauthorized use or disclosure of confidential information
or trade secrets of the Company or an Affiliate; or (v) your gross
misconduct.  The determination
that your Continuous Service was terminated due to an Involuntary Termination
Without Cause shall be made by the Company in its sole discretion.  Any such determination by the Company for the
purposes of this Agreement shall have no effect upon any determination of the
rights or obligations of you or the Company for any other purpose.

5.                                      RIGHT OF REACQUISITION.  The
Company shall simultaneously with the termination of your Continuous Service
automatically reacquire (the “Reacquisition Right”)
for no consideration all of the Unvested Shares, unless the  Company
agrees to waive its Reacquisition Right as to some or all of the Unvested
Shares.  Any such waiver shall be
exercised by the Company by written notice to you or your representative (with
a copy to the Escrow Agent, as defined below) within ninety (90) days after the
termination of your Continuous Service, and the Escrow Agent may then release
to you the number of Unvested Shares not being reacquired by the Company.  If the Company does not waive its reacquisition
right as to all of the Unvested Shares, then upon such termination of your
Continuous Service, the Escrow Agent shall transfer to the Company the number
of Unvested Shares the Company is reacquiring. 
The Reacquisition Right shall expire when all of the shares have become
Vested Shares.

 2
 

6.                                      CAPITALIZATION CHANGES.  The
number of shares of Common Stock subject to your Award and referenced in your Grant Notice may be
adjusted from time to time for changes in capitalization pursuant to Section
11(a) of the Plan.

7.                                      CERTAIN CORPORATE TRANSACTIONS.  In the event of a Corporate Transaction as
defined in the Plan, the Reacquisition Right may be assigned by the Company to
the successor of the Company (or such successor’s parent corporation), if any,
in connection with such transaction.  To
the extent the Reacquisition Right remains in effect following such
transaction, it shall apply to the new capital stock or other property received
in exchange for the Common Stock in consummation of the transaction, but only
to the extent the Common Stock was at the time covered by such right.

8.                                      SECURITIES LAW COMPLIANCE.  You may
not be issued any Common Stock under your Award unless the shares of Common
Stock are either (i) then registered under the Securities Act of 1933, as
amended (the “Securities Act”), or (ii) the
Company has determined that such issuance would be exempt from the registration
requirements of the Securities Act.  Your
Award must also comply with other applicable laws and regulations governing the
Award, and you shall not receive such Common Stock if the Company determines
that such receipt would not be in material compliance with such laws and
regulations.

9.                                      ESCROW OF UNVESTED COMMON STOCK.  As security for your faithful
performance of the terms of this Agreement and to insure the availability for
delivery of your Common Stock upon execution of the Reacquisition Right
provided in Section 5, above, you agree to the following “Joint Escrow” and “Joint
Escrow Instructions,” and you and the Company hereby authorize and direct the
Corporate Secretary of the Company or the Corporate Secretary’s designee (“Escrow Agent”) to hold the documents
delivered to Escrow Agent pursuant to the terms of this Agreement and of your
Grant Notice, in accordance with the
following Joint Escrow Instructions:

(a)                                  In
the event you cease your Continuous Service, the Company shall pursuant to the
Reacquisition Right, automatically reacquire for no consideration all Unvested
Shares, as of the date of such termination, unless the Company elects to waive
such right as to some or all of the Unvested Shares.  If the Company (or its assignee) elects to
waive the Reacquisition Right, the Company or its assignee will give you and
Escrow Agent a written notice specifying the number of shares of stock not to
be reacquired. You and the Company hereby irrevocably authorize and direct
Escrow Agent to close the transaction contemplated by such notice as soon as
practicable following the date of termination of service in accordance with the
terms of this Agreement and the notice of waiver, if any.

(b)                                  Vested
Shares shall be delivered to you upon your request given in the manner provided
in Section 19 for providing notice.

(c)                                  At
any closing involving the transfer or delivery of some or all of the property
subject to the Grant Notice and this Agreement, Escrow Agent is directed
(i) to date any stock assignments necessary for the transfer in question,
(ii) to fill in the number of shares being transferred, and (iii) to
deliver same, together with the certificate, if any, evidencing the shares of
Common Stock to be transferred, to you or the Company, as applicable.

 3
 

(d)                                  You
irrevocably authorize the Company to deposit with Escrow Agent the
certificates, if any, evidencing shares of Common Stock to be held by Escrow
Agent hereunder and any additions and substitutions to said shares as specified
in this Agreement.  You do hereby
irrevocably constitute and appoint Escrow Agent as your attorney-in-fact and
agent for the term of this escrow to execute with respect to such securities
and other property all documents of assignment and/or transfer and all stock
certificates necessary or appropriate to make all securities negotiable and
complete any transaction herein contemplated.

(e)                                  This
escrow shall terminate upon the expiration or application in full of the
Reacquisition Right, whichever occurs first, and the completion of the tasks
contemplated by these Joint Escrow Instructions.

(f)                                    If
at the time of termination of this escrow, Escrow Agent should have in its
possession any documents, securities, or other property belonging to you,
Escrow Agent shall deliver all of same to you and shall be discharged of all
further obligations hereunder.

(g)                                 Except
as otherwise provided in these Joint Escrow Instructions, Escrow Agent’s duties
hereunder may be altered, amended, modified, or revoked only by a writing
signed by all of the parties hereto.

(h)                                 Escrow
Agent shall be obligated only for the performance of such duties as are
specifically set forth herein and may rely and shall be protected in relying or
refraining from acting on any instrument reasonably believed by Escrow Agent to
be genuine and to have been signed or presented by the proper party or parties
or their assignees.  Escrow Agent shall
not be personally liable for any act Escrow Agent may do or omit to do
hereunder as Escrow Agent or as attorney-in-fact for you while acting in good
faith and any act done or omitted by Escrow Agent pursuant to the advice of
Escrow Agent’s own attorneys shall be conclusive evidence of such good faith.

(i)                                    Escrow
Agent is hereby expressly authorized to disregard any and all warnings given by
any of the parties hereto or by any other person or corporation, excepting only
orders or process of courts of law, and is hereby expressly authorized to
comply with and obey orders, judgments, or decrees of any court.  In case Escrow Agent obeys or complies with
any such order, judgment, or decree of any court, Escrow Agent shall not be
liable to any of the parties hereto or to any other person, firm, or
corporation by reason of such compliance, notwithstanding any such order,
judgment, or decree being subsequently reversed, modified, annulled, set aside,
vacated, or found to have been entered without jurisdiction.

(j)                                    Escrow
Agent shall not be liable in any respect on account of the identity, authority,
or rights of the parties executing or delivering or purporting to execute or
deliver this Agreement or any documents or papers deposited or called for
hereunder.

(k)                                Escrow
Agent shall not be liable for the outlawing of any rights under any statute of
limitations with respect to these Joint Escrow Instructions or any documents
deposited with Escrow Agent.

(l)                                    Escrow
Agent’s responsibilities as Escrow Agent hereunder shall terminate if Escrow
Agent shall cease to be the Secretary of the Company or if Escrow Agent

 4
 

shall resign by written notice to each party.  In the event of any such termination, the
Company may appoint any officer or assistant officer of the Company or other
person who in the future assumes the position of Secretary for the Company as
successor Escrow Agent and you hereby confirm the appointment of such successor
or successors as your attorney-in-fact and agent to the full extent of such
successor Escrow Agent’s appointment.

(m)                              If
Escrow Agent reasonably requires other or further instruments in connection
with these Joint Escrow Instructions or obligations in respect hereto, the
necessary parties hereto shall join in furnishing such instruments.

(n)                                 It
is understood and agreed that should any dispute arise with respect to the
delivery and/or ownership or right of possession of the securities, Escrow
Agent is authorized and directed to retain in its possession without liability
to anyone all or any part of said securities until such dispute shall have been
settled either by mutual written agreement of the parties concerned or by a
final order, decree, or judgment of a court of competent jurisdiction after the
time for appeal has expired and no appeal has been perfected, but Escrow Agent
shall be under no duty whatsoever to institute or defend any such proceedings.

(o)                                  By
signing this Agreement below Escrow Agent becomes a party hereto only for the
purpose of said Joint Escrow Instructions in this Section 9; Escrow Agent does
not become a party to any other rights and obligations of this Agreement apart
from those in this Section 9.

(p)                                  Escrow
Agent shall be entitled to employ such legal counsel and other experts as
Escrow Agent may deem necessary properly to advise Escrow Agent in connection
with Escrow Agent’s obligations hereunder. 
Escrow Agent may rely upon the advice of such counsel, and may pay such
counsel reasonable compensation therefor. 
The Company shall be responsible for all fees generated by such legal
counsel in connection with Escrow Agent’s obligations hereunder.

(q)                                  These
Joint Escrow Instructions set forth in this Section 9 shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
permitted assigns.  It is understood and
agreed that references to “Escrow Agent” or “Escrow Agent’s” herein refer to
the original Escrow Agent and to any and all successor Escrow Agents.  It is understood and agreed that the Company
may at any time or from time to time assign its rights under the Agreement and
these Joint Escrow Instructions in whole or in part.

10.                               EXECUTION OF DOCUMENTS.  You hereby acknowledge and agree that the
manner selected by the Company by which you indicate your consent to your Grant
Notice is also deemed to be your execution of your Grant Notice and of this
Agreement.  You further agree that such
manner of indicating consent may be relied upon as your signature for
establishing your execution of any documents to be executed in the future in
connection with your Award.

11.                               IRREVOCABLE POWER OF ATTORNEY.  You constitute and appoint the Company’s
Secretary as attorney-in-fact and agent to transfer said Common Stock on the
books of the Company with full power of substitution in the premises, and to
execute with respect to 

 5
 

such securities and other property all documents of
assignment and/or transfer and all stock certificates necessary or appropriate
to make all securities negotiable and complete any transaction herein
contemplated.  This is a special power of
attorney coupled with an interest (specifically, the Company’s underlying
security interest in retaining the shares of Common Stock in the event you do
not perform the requisite services for the Company), and is irrevocable and
shall survive your death or legal incapacity. 
This power of attorney is limited to the matters specified in this
Agreement.

12.                               RIGHTS AS STOCKHOLDER.  Subject to the provisions of this Agreement,
you shall have the right to exercise all rights and privileges of a stockholder
of the Company with respect to the shares deposited  in the Joint Escrow. 
You shall be deemed to be the holder of the shares for purposes of
receiving any dividends that may be paid with respect to such shares and for
purposes of exercising any voting rights relating to such shares, even if some
or all of the shares are Unvested Shares.

13.                               TRANSFER RESTRICTIONS.  In addition to any other limitation on
transfer created by applicable securities laws, you shall not sell, assign,
hypothecate, donate, encumber, or otherwise dispose of any interest in the
Common Stock while such shares of Common Stock are Unvested Shares or continue
to be held in the Joint Escrow; provided, however,
that an interest in such shares may be transferred pursuant to a qualified domestic relations order as defined in the
Internal Revenue Code of 1986, as amended (the “Code”)
or Title I of the Employee Retirement Income Security Act.  After any Common Stock has been released from
the Joint Escrow, you shall not sell, assign, hypothecate, donate, encumber, or
otherwise dispose of any interest in the Common Stock except in compliance with
the provisions herein and applicable securities laws.  Notwithstanding the foregoing, by delivering
written notice to the Company, in a form satisfactory to the Company, you may
designate a third party who, in the event of your death, shall thereafter be
entitled to receive any distribution of Common Stock pursuant to this
Agreement.

14.                               NON-TRANSFERABILITY OF THE AWARD.  Your Award (except for Vested Shares issued
pursuant thereto) is not transferable except by will or by the laws of descent
and distribution.  In the event of the
termination of your Continuous Service prior to the Closing Date, the closing
contemplated in this Agreement shall not occur.

15.                               RESTRICTIVE LEGENDS.  The Common Stock issued under your Award
shall be endorsed with appropriate legends, if any, as determined by the
Company.

16.                               AWARD NOT A SERVICE CONTRACT.  Your Award is not an employment or service contract, and
nothing in your Award shall be
deemed to create in any way whatsoever any obligation on your part to continue
in the service of the Company or any Affiliate, or on the part of the
Company or any Affiliate to continue such service.  In addition, nothing in your Award shall obligate the Company or any
Affiliate, their respective stockholders,
boards of directors, or employees to continue any relationship that you might
have as an Employee or Consultant of the Company or any Affiliate.

17.                               WITHHOLDING OBLIGATIONS.  At
the time your Award is granted, or
at any time thereafter as requested by the Company, you hereby authorize withholding from any
amounts

 6
 

payable
to you, or otherwise agree to make adequate provision in cash for, any sums
required to satisfy the federal, state, local and foreign tax withholding
obligations of the Company or any Affiliate, if any, which arise in connection with your Award.  In the Company’s sole discretion, the Company may elect, and you hereby authorize the Company, to withhold Vested Shares in such amounts as
the Company determines are necessary
to satisfy your obligation pursuant to the preceding sentence. Unless the tax
withholding obligations of the Company and/or any Affiliate are satisfied, the
Company shall have no obligation to deliver to you any Common Stock.

18.                               TAX CONSEQUENCES.   You agree to review
with your own tax advisors the federal, state, local and foreign tax
consequences of this investment and the transactions contemplated by this
Agreement.  You shall rely solely on such
advisors and not on any statements or representations of the Company or any of
its agents.  You understand that you (and
not the Company) shall be responsible for your own tax liability that may arise
as a result of this investment or the transactions contemplated by this Agreement.  You understand that Section 83 of the Code
taxes as ordinary income to you the fair market value of the shares of Common
Stock as of the date any restrictions on the shares lapse (that is, as of the
date on which part or all of the shares vest). 
In this context, “restriction” includes the right of the Company to
reacquire the shares pursuant to its Reacquisition Right.  You understand that you may elect to be taxed
on the fair market value of the shares at the time the shares are acquired
rather than when and as the Company’s Reacquisition Right expires by filing an
election under Section 83(b) of the Code with the Internal Revenue Service
within thirty (30) days after the date you acquire the shares pursuant to your
Award.  YOU ACKNOWLEDGE THAT IT IS YOUR
SOLE RESPONSIBILITY, AND NOT THE COMPANY’S, TO FILE A TIMELY ELECTION UNDER
CODE SECTION 83(b), EVEN IF YOU REQUEST THE COMPANY OR ITS REPRESENTATIVES TO
MAKE THE FILING ON YOUR BEHALF.  You
further acknowledge that you are aware that should you file an election under
Section 83(b) of the Code and then subsequently forfeit the shares, you will
not be able to report as a loss the value of any shares forfeited and will not
get a refund of any of the tax paid.

19.                               NOTICES.  Any notice or request
required or permitted hereunder shall be given in writing to each of the other
parties hereto and shall be deemed effectively given on the earlier of (i) the
date of personal delivery, including delivery by express courier, or (ii) the
date that is five (5) days after deposit in the United States mail (whether or
not actually received by the addressee), by registered or certified mail with
postage and fees prepaid, addressed at the following addresses, or at such
other address(es) as a party may designate by ten (10) days’ advance written
notice to each of the other parties hereto:

	
  COMPANY:

  	
  Ditech Networks, Inc.

  
	
   

  	
  Attn: General Counsel

  
	
   

  	
  825 E. Middlefield Road

  
	
   

  	
  Mountain View, CA 94043

  
	
   

  	
   

  
	
  PARTICIPANT:

  	
  Your address as on file with the Company

  
	
   

  	
  at the time notice is given

  
	
   

  	
   

  
	
  ESCROW
  AGENT:

  	
  Ditech Networks, Inc.

  
	
   

  	
  Attn: Corporate Secretary

  
	
   

  	
  825 E. Middlefield Road

  
	
   

  	
  Mountain View, CA 94043

  

 

 7
 

20.                               HEADINGS.  The headings of the Sections in this
Agreement are inserted for convenience only and shall not be deemed to
constitute a part of this Agreement or to affect the meaning of this Agreement.

21.                               MISCELLANEOUS.

(a)                                  The
rights and obligations of the Company under your Award shall be transferable by
the Company to any one or more persons or entities, and all covenants and
agreements hereunder shall inure to the benefit of, and be enforceable by, the
Company’s successors and assigns.

(b)                                  You
agree upon request to execute any further documents or instruments necessary or
desirable in the sole determination of the Company to carry out the purposes or
intent of your Award.

(c)                                  You
acknowledge and agree that you have reviewed your Award in its entirety, have
had an opportunity to obtain the advice of counsel prior to executing and
accepting your Award and fully understand all provisions of your Award.

(d)                                  This
Agreement shall be subject to all applicable laws, rules, and regulations, and
to such approvals by any governmental agencies or national securities exchanges
as may be required.

(e)                                  All
obligations of the Company under the Plan and this Agreement shall be binding
on any successor to the Company, whether the existence of such successor is the
result of a direct or indirect purchase, merger, consolidation, or otherwise,
of all or substantially all of the business and/or assets of the Company.

22.                               GOVERNING PLAN DOCUMENT.  Your Award is subject to all the provisions of the Plan,
the provisions of which are hereby made a part of your Award, and is further subject to all interpretations,
amendments, rules and regulations which may from time to time be promulgated
and adopted pursuant to the Plan.  In the
event of any conflict between the provisions of your Award and those of the Plan, the provisions of the
Plan shall control.

23.                               COMPLETE AGREEMENT.  You
hereby acknowledge that as of the date of grant of your Award, the Grant
Notice, this Agreement, and the Plan set forth the entire understanding between
you and the Company regarding the acquisition of Common Stock pursuant to this
Award, and supersede all prior oral and written agreements on this subject with
the exception of stock awards previously granted and delivered to you under the
Plan.

24.                               EFFECT ON OTHER
EMPLOYEE BENEFIT PLANS.  The value of the Award subject to this
Agreement shall not be included as compensation, earnings, salaries, or other
similar terms used when calculating benefits under any employee benefit plan
(other than the Plan) sponsored by the Company or any Affiliate except as such
plan otherwise expressly provides.

 8
 

The Company expressly
reserves its rights to amend, modify, or terminate any or all of the employee
benefit plans of the Company or any Affiliate.

25.                               CHOICE OF LAW. 
The interpretation, performance and enforcement of this Agreement shall
be governed by the law of the state of California  without regard to such state’s conflicts of laws rules.

26.                               SEVERABILITY. 
If all or any part of this Agreement or the Plan is declared by any
court or governmental authority to be unlawful or invalid, such unlawfulness or
invalidity shall not invalidate any portion of this Agreement or the Plan not
declared to be unlawful or invalid. Any Section of this Agreement (or part of
such a Section) so declared to be unlawful or invalid shall, if possible, be
construed in a manner which will give effect to the terms of such Section or
part of a Section to the fullest extent possible while remaining lawful and
valid.

27.                               OTHER DOCUMENTS.  You
hereby acknowledge receipt or the right to receive a document providing the
information required by Rule 428(b)(1) promulgated under the Securities
Act.  In addition, you acknowledge
receipt of the Company’s Insider Trading Policy.

* * * * *

This
Restricted Stock Award Agreement shall be deemed to be signed by the Company
and the Participant upon the signing by the Participant of the Restricted Stock
Grant Notice to which it is attached.

 9

DITECH NETWORKS, INC.

2006 EQUITY INCENTIVE PLAN

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