Document:

ex10-13.htm

Exhibit 10.13

December 15, 2011

Mark Laich

1 Longfellow Place, Apt 3812

Boston, MA 02114

Dear Mr. Laich:

 

This letter agreement (the “Separation Agreement”) will confirm the terms of your separation from employment with MEMSIC, Inc. (“MEMSIC” or “the Company”).

 

1.           Separation from Employment. Your employment with MEMSIC will terminate effective December 15, 2011 (the “Separation Date”).  You understand and acknowledge that, from and after the Separation Date, you shall have no authority and shall not represent yourself as an employee or agent of MEMSIC.  Your termination from employment will be effective as of the Separation Date regardless of whether you execute and return the Release and Waiver of Claims described in Section 2.

 

You will be paid all base salary, earned bonus and unused vacation pay, less all required local, state, federal and other employment-related taxes and deductions, accrued through the Separation Date. You will be also reimbursed for out-of-pocket company expenses incurred to the Separation Date. Your final pay check which has been calculated from December 5 through December 15, 2011 is $6,576.92, your earned bonus is $137,647.00, your accrued vacation as of December 15, 2011 is $18,269.23 and your expense reimbursement is $8,412.22. Therefore total amount of your final pay check including regular pay plus bonus and accrued vacation is $170,905.37 and is presented in check number 23625 dated December 16, 2011.

 

2.           Severance Pay.   Subject to and following your execution and non-revocation of the Release and Waiver of Claims attached hereto as Attachment A, which is incorporated herein, and in exchange for the other promises set forth in this letter, the Company agrees to pay you severance pay consisting of three (3) months continuation of your base salary, less all required local, state, federal and other employment-related taxes and deductions (the “Severance Pay”).   The Severance Pay will be paid commencing on the next regular pay day following the expiration of the revocation period described in the Release and Waiver of Claims.

3.           COBRA.   You understand your legal right, pursuant to the Consolidated Omnibus Budget Reconciliation Act (COBRA), after your Separation Date and upon timely completion of the appropriate forms, to continue at your own expense, your medical and dental insurance coverage.

 

  

  

  

 

4.         Stock Options.  You have 90,000 shares of MEMSIC stock options vested as of the Separation Date.  You may exercise the vested option shares at any time within a period of one hundred eighty (180) days after the Separation Date.

 

5.           Covenants by You.  You expressly acknowledge and agree to the following:

 

(i)        You have returned all Company property, including but not limited to your office keys, building access cards/passes, laptop computer, Company documents and files, and any other computer hardware, disks or files in your possession, custody or control, whether maintained by you at work or off-site. You further acknowledge that you have retrieved from the Company as of the Separation Date all of your personal effects;

 

(ii)        You continue to be bound by the Non-Competition and Non-Solicitation Agreement between you and the Company, dated October 28, 2008 (hereinafter “the Non-Competition Agreement”), and the Invention and Non-Disclosure Agreement between you and the Company, dated April 1, 2009 (hereinafter “the NDA”), and that the Non-Competition Agreement and the NDA continue in full force and effect;

 

(iii)       that all information relating in any way to this Separation Agreement, including the terms and amount of financial consideration provided for in this Separation Agreement, shall be held confidential by you and shall not be publicized or disclosed to any person (other than an immediate family member, legal counsel or financial advisor, provided that any such individual to whom disclosure is made agrees to be bound by these confidentiality obligations), business entity or government agency (except as mandated by law);

 

(iv)       that you will not make any statements that are professionally or personally disparaging about, or adverse to, the interests of the Company (and its officers, directors and managers) including, but not limited to, any statements that disparage any such person, product, service, finances, financial condition, capability or any other aspect of the business of the Company, and that you will not engage in any conduct which is intended to harm professionally or personally the reputation of the Company and/or its officers, directors and managers;

 

(v)        that you will not counsel or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against the Company and/or any officer, director, employee, agent, representative, shareholder or attorney of the Company, unless under a subpoena or other court order to do so; and

 

(vi)       that the breach of any of the foregoing covenants by you shall constitute a material breach of this Agreement and shall relieve the Company of any further obligations hereunder and, in addition to any other legal or equitable remedy available to the Company, shall entitle the Company to recover any Severance Pay already paid to you pursuant to Sections 2 of this letter.

 

  

2

  

 

6.         Entire Agreement/Choice of Law/Enforceability.  You acknowledge and agree that, with the exception of the Release and Waiver of Claims identified in Section 2, this Separation Agreement supersedes any and all prior or contemporaneous oral and/or written agreements between you and MEMSIC, and sets forth the entire agreement between you and MEMSIC on the subject matter hereof.  No variations or modifications hereof shall be deemed valid unless reduced to writing and signed by the parties hereto.  This Separation Agreement shall be deemed to have been made in the Commonwealth of Massachusetts, shall take effect as an instrument under seal within Massachusetts, and shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, without giving effect to conflict of law principles.  The provisions of this letter are severable, and if for any reason any part hereof shall be found to be unenforceable, the remaining provisions shall be enforced in full.

 

7.         Understanding this Agreement.   Before signing this Separation Agreement, you should take whatever steps you believe are necessary to ensure that you understand what you are signing, what benefits you are receiving and what rights you are giving up.

 

(a)       By signing this Separation Agreement, you are acknowledging that you have read it carefully and understand all of its terms.

 

(b)       You understand and acknowledge that, if you do not sign this Separation Agreement and the attached Release and Waiver of Claims, you would not be receiving any Severance Pay.

 

Your signature below reflects your understanding of, and agreement to, the terms and conditions set forth above.

 

 

Very truly yours,

 

MEMSIC, Inc.

 

By:          /s/ Riselys Gorini

Riselys Gorini

Human Resources Manager

 

 

Confirmed and Agreed:

 

/s/ Mark Laich

Mark Laich

 

 

Dated: December 16, 2011

 

 

  

  

  

Attachment A to Separation Agreement

RELEASE AND WAIVER OF CLAIMS

In consideration of receipt of Severance Pay as set forth in the Separation Agreement between me and MEMSIC, Inc., I, Mark Laich on behalf of my heirs, administrators, executors, representatives, attorneys, agents, insurers and assigns, hereby fully, finally, irrevocably and unconditionally release and discharge MEMSIC, Inc., and its past and present parents, subsidiaries, and affiliates, and each of their respective directors, officers, employees, agents, representatives, attorneys, insurers, successors and assigns (hereinafter referred to separately and collectively as ("MEMSIC"), jointly and individually, from any and all claims, suits, charges, complaints, contracts, covenants, promises, debts, losses, sums of money, obligations, demands, judgments, or causes of action of any kind whatsoever, known or unknown, at law or in equity, in tort, contract, by statute, or on any other basis, for contractual, compensatory, punitive, or other damages, expenses (including attorneys' fees and costs), reimbursements, or costs of any kind, which I ever had, now have, or may have, including but not limited to any and all claims, demands, rights, and/or causes of action arising out of my employment with MEMSIC or the termination of that employment including, but not limited to, claims arising under the common law, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act, the Americans With Disabilities Act of 1990, and any other applicable federal, state, or local statute or ordinance.

Notwithstanding the foregoing, I understand that I am not releasing any rights or claims I may have (a) as a former corporate officer of MEMSIC, to indemnification rights as set forth in the applicable bylaws and Articles of Incorporation of MEMSIC, and (b) to enforce the terms of the Separation Agreement.

I further understand that nothing herein affects my right to file a charge with the U.S. Equal Employment Opportunity Commission or to assist in any governmental investigation, but that I will not be entitled to any monetary or other relief from the EEOC or from any Court as a result of litigation brought on the basis of or in connection with such charge.

I acknowledge and represent that I have been advised of my right, before signing this Release, to consult with an attorney of my choosing about this Release and in particular about the waiver of any rights I might have.  I further acknowledge that I have been given the opportunity of no less than forty-five (45) days to consider signing this Release and, if I execute the Release at any time prior to the end of the forty-five (45) day period, such execution was a knowing and voluntary waiver of any rights I had to consider this Release for at least forty-five (45) days, and was due to my belief that I had ample time in which to consider and understand this Release and in which to review this Release with an attorney.

 

 

This Release and Waiver of Claims will become effective seven (7) days after it is signed.  I understand that I have the right to revoke this Release within seven (7) days after it is signed by delivering written notice to:

 

MEMSIC, Inc.

Human Resources Manager

One Tech Drive

Suite 325

Andover, Massachusetts 01810

  

  

  

I understand that the Severance Pay set forth in the Separation Agreement will not be paid or provided until after this seven (7) day period has expired without revocation.  My acceptance of such Severance Pay will constitute an admission that I did not revoke the Release during the seven (7) day revocation period.  I further expressly acknowledge and agree that, but for my execution and agreement to this Release and Waiver of Claims, I would not be receiving the Severance Pay described in the Separation Agreement. 

I acknowledge that I have received a list of the job titles and ages of all individuals selected for termination and another list of the ages of all individuals in the same organizational unit who were not selected for termination (Exhibits 1 and 2).

I acknowledge and agree that, in executing this Release, and except as specifically set forth in this Release, I am giving up any claims I might have against MEMSIC, including but not limited to claims arising pursuant to the above-recited laws, knowingly and willingly and in order to receive the consideration recited in this Release, to which I would otherwise not be entitled.

If any word, phrase or provision of this Release is found to be invalid, I acknowledge and agree that the remainder of this Release shall be in full force and effect.

READ CAREFULLY BEFORE SIGNING. THIS RELEASE AND WAIVER OF CLAIMS INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS ARISING OR EXISTING AS OF THE DATE OF THIS RELEASE.

 

 

I, Mark Laich, have knowingly and voluntarily signed this RELEASE OF CLAIMS on this 16 day of  December, 2011.

 

/s/ Mark Laich

EMPLOYEE SIGNATURE

  

-2-

  

Exhibit 1

Job Titles and Ages of Individuals in Sales and Marketing Group

Selected for Termination on 12- 15 -2011

 

	
1.  Field Application Engineer, North America

	
Age 49

	
2.  Vice President of Worldwide Sales and Marketing

	
Age 50

  

-3-

  

Exhibit 2

Ages of Individuals in Sales and Marketing Group

Not Selected for Termination on 12-15-11

 

	
1.  Director of Sales, North America

	
Age 49

	
2.  Customer Service Representative

	
Age 39

	
3.  Automotive Business Development Manager

	
Age 48

	
4.  Director of Application Engineer

	
Age 40

	
5.  Senior Application Engineer

	
Age 41

 

 

 

-4-NLS Exhibit 10.45 20111231

EXHIBIT 10.45

FOURTH AMENDMENT OF CREDIT AGREEMENT
This FOURTH AMENDMENT OF CREDIT AGREEMENT (this "Agreement") dated as of March 12, 2012, is by and between NAUTILUS, INC., a Washington corporation ("Borrower"), and BANK OF THE WEST ("Lender").
A.    Lender and Borrower are parties to that certain Credit Agreement dated as of March 8, 2010 (as amended, the "Credit Agreement"), pursuant to which Lender extends to Borrower a $15,000,000 revolving line of credit with a $10,000,000 sublimit for letters of credit.  The Credit Agreement was amended by that certain First Amendment of Credit Agreement dated as of August 13, 2010, that certain Second Amendment of Credit Agreement dated as of September 13, 2010, and that certain Third Amendment of Credit Agreement dated as of June 30, 2011. 
B.    Borrower has requested that Lender extend the Revolving Credit Facility Maturity Date to December 31, 2012.  Lender is willing to agree to such requests, subject to the terms set forth herein.
NOW, THEREFORE, in consideration of the promises herein contained, and each intending to be legally bound hereby, the parties agree as follows:
		
	Section 1.
	Definitions.  

Capitalized terms not specifically defined herein shall have the same meanings as set forth in the Credit Agreement.
		
	Section 2.
	Representations and Warranties.

To induce Lender to enter into this Agreement, Borrower hereby represents and warrants unto Lender as follows:
1.Authority.  The execution, delivery, and performance hereof are within the powers of Borrower, have been duly authorized, and are not in contravention of law or the terms of the articles of incorporation or bylaws of Borrower, or of any indenture, agreement, or undertaking to which Borrower is a party or by which it is bound.  The officer of Borrower executing this Agreement is duly and properly in office and fully authorized to execute the same.
2.Enforceability.  This Agreement, when executed and delivered by Borrower, will be the legal, valid, and binding agreement of Borrower, enforceable in accordance with its terms except to the extent that the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, or other similar laws and except as the principles of equity may affect the remedy of specific performance.
3.No Consent.  No consent or approval of any trustee, issuer or holder of any indebtedness or obligation of Borrower, and no consent, permission, authorization, order or license of any governmental authorities is necessary in connection with the execution and delivery of this Agreement, or any instrument or agreement required hereunder, or any transaction contemplated hereby.
4.Financial Information Accuracy.  Subject to any limitations stated therein, all balance sheets, earnings statements, and other financial data of Borrower that have been furnished to Lender to induce it to enter into this Agreement or otherwise in connection herewith, fairly represent the financial condition of Borrower as of the dates and for the periods for which same are furnished, and all other information, reports and papers, and data furnished to Lender are accurate and correct in all material respects and complete and do not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein not misleading in light of the circumstances under which they were made.  It is understood that projections and forecasts are subject to uncertainties and 

EXHIBIT 10.45

contingencies, many of which are beyond the control of Borrower, and that no assurance can be given that such projections and forecasts will actually be realized, and that actual results may differ from the projected results set forth therein by a material amount.
5.Other Representations and Warranties.  The representations and warranties made in the Loan Documents continue to be true and correct in all material respects as if made on the date of this Agreement (other than the representations and warranties which were stated to relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date).
6.No Default.  No default exists as of the date of this Agreement under the Loan Documents and no event which would constitute a default upon the giving of notice or mere passage of time currently exists under the Loan Documents.
7.No Default With Other Lenders.  No event of default exists as of the date of this Agreement under any loan or credit agreement between Borrower and any lender other than Lender and no event which would constitute an event of default under such an agreement upon the giving of notice or mere passage of time currently exists.
Section 3.Amendment to Credit Agreement.  Section 3.14 of the Credit Agreement is hereby amended by deleting it in its entirety and replacing it with the following:  
"Section 3.14    Maturity Date of the Revolving Credit Facility.  On the earlier of (a) December 31, 2012, or (b) acceleration of the Obligations following an Event of Default, if any, under this Agreement, Lender's commitment to extend credit (including Letters of Credit) to Borrower pursuant to the Revolving Credit Facility shall terminate.  The earlier of the dates specified in the preceding sentence of this Agreement is referred to in this Agreement as the "Revolving Credit Facility Maturity Date."  On the Revolving Credit Facility Maturity Date, Borrower shall be obligated to pay Lender the entire balance of principal, accrued interest and Unused Commitment Fee owed pursuant to the Note, this Agreement, and the other Loan Documents (including Letter of Credit Documents) (together with any fees and costs owed thereunder or hereunder)."

		
	Section 4.
	Costs.

Borrower shall reimburse Lender for all expenses reasonably incurred by Lender in connection with Lender's banking relationship with Borrower, including, but not limited to (a) recording costs, title insurance costs, collateral appraisal costs, and collateral examination and inspection costs; (b) reasonable fees and expenses of legal counsel for Lender with respect to the preparation, negotiation, closing, administration, amendment, modification, and enforcement of the Credit Agreement, this Agreement, and the transactions evidenced hereby and thereby; (c) costs and expenses related to the preservation, protection, or disposition of Lender's collateral (or Lender's security interests or liens therein); or (d) other costs or expenses incurred by Lender in accordance with applicable law, rules, policies, and regulations.
		
	Section 5.
	Acknowledgment of Existing Security Interests.

Borrower hereby reaffirms and acknowledges the validity of the Security Agreement, the accuracy of the information contained in the Security Agreement, and the grant of the security interests in favor of Lender in the collateral described therein.  Borrower further agrees and acknowledges that the interests provided by the Security Agreement secure repayment of all of the Obligations.  Furthermore, Borrower acknowledges and agrees that the security interests created in the collateral described in the Security Agreement are in full force and effect and not subject to avoidance or defense.
		
	Section 6.
	Agreement Enforceable.

EXHIBIT 10.45

Borrower hereby acknowledges and agrees that except as amended previously or herein, each Loan Document is and shall remain valid and enforceable in accordance with its terms.  Borrower agrees that Borrower has no defenses, setoffs, counterclaims, or claims for recoupment against the indebtedness and obligations represented by the Credit Agreement, the Note, or any other Loan Document.
		
	Section 7.
	General.

1.Recitals.  The recitals included on the first page of this document are hereby incorporated as part of this Agreement.
2.Voluntary and Entire Agreement.  This Agreement and the Loan Documents set forth the entire agreement among Lender and Borrower with respect to the Credit Agreement.  No oral promise or agreement of any kind or nature, other than those that have been reduced to writing and set forth in this Agreement or in the Loan Documents, has been made between or among Lender and Borrower.  Borrower acknowledges that Borrower has been (or has had the opportunity to be) represented by legal counsel in connection with the negotiation and execution of this Agreement and that Borrower voluntarily executed this Agreement.
3.Construction and Conflict With Other Agreements.  In the event of any conflict between the terms of this Agreement and the terms of any other agreements or instruments referred to in this Agreement, the terms of this Agreement shall control.
4.Waiver of Jury Trial.  EACH PARTY HERETO HEREBY WAIVES ITS RIGHT TO TRIAL BY JURY OF ANY CLAIMS SUCH PARTY HAS OR HEREAFTER MAY HAVE AGAINST ANY OTHER PARTY HERETO (INCLUDING CROSS-CLAIMS AND COUNTERCLAIMS), WHETHER ANY SUCH CLAIM ARISES OUT OF CONTRACT, TORT, OR OTHERWISE AND WHETHER ANY SUCH CLAIM ARISES BEFORE OR AFTER THE DATE OF THIS AGREEMENT.
5.Attorney Fees.  In any action to interpret or enforce any provision of this Agreement, the prevailing party shall be entitled to recover from the other party such sums as the court may determine reasonable as attorney fees, including such fees in any appellate proceeding, proceeding under the bankruptcy code, or receivership, in addition to all other sums provided by law.
6.Binding Effect.  This Agreement shall inure to the benefit of, and shall be binding upon, the respective successors and permitted assigns of the parties hereto.
7.Severability.  If any term, condition, or provision of this Agreement, or any other document or instrument referred to in this Agreement, is held invalid for any reason, such offending term, condition, or provision shall be stricken therefrom, and the remainder of this Agreement shall not be affected thereby.
8.Applicable Law.  This Agreement and any other instruments or agreements required or contemplated under this Agreement shall be governed by, and construed under, the laws of the state of Washington, without regard to principles of conflicts of law.
9.Counterparts.  This Agreement may be executed in any number of the counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument.
10.Statutory Notice.  UNDER WASHINGTON LAW, ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE.
[Remainder of page intentionally blank.]
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.

EXHIBIT 10.45

	
		
	BORROWER:
NAUTILUS, INC.

By: /s/ Bruce M. Cazenave
Bruce M. Cazenave, CEO
	LENDER:
BANK OF THE WEST

By: /s/ Sean Edwards
Sean Edwards, Vice President

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