Document:

Exhibit 10.44

 

SEPARATION AGREEMENT

 

AND GENERAL RELEASE OF ALL CLAIMS

 

This Confidential Separation Agreement and General Release of All Claims (“Separation Agreement”) is entered into by and between Shawn McCreight (“Employee”) and Guidance Software, Inc. (“Employer” or “Company”).  The term “Party” or “Parties” as used herein shall refer to Employee, Employer or both, as may be appropriate.

 

1.                                      Last Day of Employment.  Employee’s last day of employment with Employer is January 13, 2016 (“Separation Date”).

 

2.                                      Consideration.  In consideration for signing this Separation Agreement and complying with its terms, and provided Employee does not subsequently revoke this Separation Agreement within the allotted time, Employer agrees:

 

(a)                                 to pay to Employee THREE HUNDRED AND TWENTY FIVE THOUSAND DOLLARS ($325,000), representing 52 weeks of salary at Employee’s base rate of pay for each year of service, less lawful deductions, within 10 business days after Employer’s receipt of this Separation Agreement signed and dated by Employee.

 

3.                                      No Consideration Absent Execution of this Agreement.  Employee understands and agrees that Employee would not receive the consideration specified in Section 2 above, except for Employee’s execution of this Separation Agreement and the fulfillment of the promises contained herein.

 

4.                                      COBRA Benefits.  In accordance with the Company’s health plans, Employee will be eligible to exercise Employee’s rights to COBRA health insurance coverage for Employee, and, where applicable, Employee’s spouse and eligible dependents, at Employee’s expense (subject to this Section 4), upon termination of Employee’s employment.  To the extent Employee elects COBRA continuation coverage, the Company shall continue to pay the portion of Employee’s COBRA premiums for up to a maximum of twelve (12) months (February 1, 2016- January 31, 2017).  Nothing herein shall be construed as extending or delaying the start date of Employee’s COBRA coverage period. Employee will receive separate communication regarding the COBRA continuation of coverage.

 

5.                                      General Release, Claims Not Released and Related Provisions.

 

(a)                                 General Release of Claims.  Employee, individually and on behalf of Employee’s heirs, executors, administrators, representatives, attorneys, successors and assigns knowingly and voluntarily releases and forever discharges Employer, including its parent corporation, affiliates, subsidiaries, divisions, predecessors, insurers, successors and assigns, and their current and former employees, attorneys, officers, directors and agents thereof, both individually and in their business capacities, and their employee benefit plans and programs and the trustees, administrators, fiduciaries and insurers of such plans and programs (collectively, the

 

 

“Released Parties”), to the full extent permitted by law, of and from any and all claims, known and unknown, asserted and unasserted, which Employee has or may have against the Released Parties as of the date of execution of this Separation Agreement including, but not limited to, any alleged violation of:

 

·                  Title VII of the Civil Rights Act of 1964;

 

·                  The Civil Rights Act of 1991;

 

·                  Sections 1981 through 1988 of Title 42 of the United States Code, as amended;

 

·                  The Employee Retirement Income Security Act of 1974 (“ERISA”) (as modified below);

 

·                  The Immigration Reform and Control Act;

 

·                  The Americans with Disabilities Act of 1990;

 

·                  The Age Discrimination in Employment Act of 1967 (“ADEA”);

 

·                  The Workers Adjustment and Retraining Notification Act;

 

·                  The Occupational Safety and Health Act;

 

·                  The Sarbanes-Oxley Act of 2002;

 

·                  The Fair Credit Reporting Act;

 

·                  The Family and Medical Leave Act;

 

·                  The Equal Pay Act;

 

·                  California Family Rights Act — Cal. Gov’t Code § 12945.2;

 

·                  California Fair Employment and Housing Act — Cal. Gov’t Code § 12900 et seq.;

 

·                  California Equal Pay Law — Cal. Lab. Code § 1197.5;

 

·                  California Whistleblower Protection Law — Cal. Lab. Code § 1102.5;

 

·                  The California Occupational Safety and Health Act, as amended, California Labor Code § 6300 et seq., and any applicable regulations thereunder;

 

·                  Those other provisions of the California Labor Code that lawfully may be released;

 

2

 

·                  Any other federal, state or local civil or human rights law or any other federal, state or local law, regulation or ordinance;

 

·                  Any public policy, contract, tort or common law; or

 

·                  Any basis for recovering costs, fees or other expenses including attorneys’ fees incurred in these matters.

 

(b)                                 Claims Not Released.  Employee is not waiving any rights Employee may have to:  (i) Employee’s own vested accrued employee benefits under the Guidance Software, Inc. health, welfare or retirement benefits plans as of the Separation Date; (ii) benefits or rights to seek benefits under applicable workers’ compensation (except as to claims under Labor Code sections 132a and 4553) or unemployment insurance or indemnification statutes; (iii) pursue claims which by law cannot be waived by signing this Separation Agreement; (iv) enforce this Separation Agreement; or (v) challenge the validity of this Separation Agreement.

 

(c)                                  Government Agencies.  Nothing in this Separation Agreement prohibits or prevents Employee from filing a charge with or participating, testifying or assisting in any investigation, hearing, whistleblower action or other proceeding before any federal, state or local government agency (e.g., EEOC, DFEH, NLRB, SEC, etc.), nor does anything in this Separation Agreement preclude, prohibit or otherwise limit, in any way, Employee’s rights and abilities to contact, communicate with, report matters to or otherwise participate in any whistleblower program administered by any such agencies.  However, to the maximum extent permitted by law, Employee agrees that if such an administrative claim is made, Employee shall not be entitled to recover any individual monetary relief or other individual remedies.

 

(d)                                 Collective/Class Action Waiver.  If any claim is not subject to release, to the extent permitted by law, Employee waives any right or ability to be a class or collective action representative or to otherwise participate in any putative or certified class, collective or multi-party action or proceeding based on such a claim in which Employer or any of the other Released Parties identified in this Separation Agreement is a party.

 

6.                                      Waiver of California Civil Code section 1542.  To effect a full and complete general release as described above, Employee expressly waives and relinquishes all rights and benefits of section 1542 of the Civil Code of the State of California, and does so understanding and acknowledging the significance and consequence of specifically waiving section 1542.  Section 1542 of the Civil Code of the State of California states as follows:

 

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

 

3

 

Thus, notwithstanding the provisions of section 1542, and to implement a full and complete release and discharge of the Released Parties, Employee expressly acknowledges this Separation Agreement is intended to include in its effect, without limitation, all claims Employee does not know or suspect to exist in Employee’s favor at the time of signing this Separation Agreement, and that this Separation Agreement contemplates the extinguishment of any such claims.  Employee warrants Employee has read this Separation Agreement, including this waiver of California Civil Code section 1542, and that Employee has consulted with or had the opportunity to consult with counsel of Employee’s choosing about this Separation Agreement and specifically about the waiver of section 1542, and that Employee understands this Separation Agreement and the section 1542 waiver, and so Employee freely and knowingly enters into this Separation Agreement.  Employee further acknowledges that Employee later may discover facts different from or in addition to those Employee now knows or believes to be true regarding the matters released or described in this Separation Agreement, and even so Employee agrees that the releases and agreements contained in this Separation Agreement shall remain effective in all respects notwithstanding any later discovery of any different or additional facts.  Employee expressly assumes any and all risk of any mistake in connection with the true facts involved in the matters, disputes or controversies released or described in this Separation Agreement or with regard to any facts now unknown to Employee relating thereto.

 

7.                                      Intentionally Deleted.

 

8.                                      Acknowledgements and Affirmations.

 

(a)                                 Employee affirms that Employee has not filed or caused to be filed any claim, complaint or action against any of the Released Parties in any forum or form, and that Employee presently is not a party to any claim, complaint or action against any of the Released Parties in any forum or form.

 

(b)                                 Employee further affirms that Employee has been paid or has received all compensation, wages, bonuses, commissions and benefits which are due and payable as of the date of execution of this Separation Agreement.

 

(c)                                  Employee also affirms that Employee has no known workplace injuries or occupational diseases and that Employee has been granted or has not been denied any leave to which Employee was entitled under the Family and Medical Leave Act, the California Family Rights Act or disability accommodation laws.

 

(d)                                 Employee further affirms that Employee has not been retaliated against for reporting any allegations of wrongdoing by Employer or any of its officers, directors or employees including, but not limited to, allegations of corporate fraud.

 

(e)                                  Employee affirms that all of Employer’s decisions regarding Employee’s pay and benefits through the date of Employee’s execution of this Separation Agreement were not discriminatory based on race, color, religion, sex, gender, gender identity,

 

4

 

gender expression, sexual orientation, marital status, national origin, ancestry, mental and physical disability, medical condition, age, pregnancy, denial of medical and family care leave, pregnancy disability leave or any other classification protected by law.

 

(f)                                   Employee affirms that as of the date Employee signs this Separation Agreement, Employee is not Medicare eligible (i.e., is not 65 years of age or older; is not suffering from end-stage renal failure; has not received Social Security Disability Insurance benefits for 24 months or longer, etc.).  Nonetheless, if the Centers for Medicare & Medicaid Services (the “CMS”) (this term includes any related agency representing Medicare’s interests) determines that Medicare has an interest in the payment to Employee under this Separation Agreement, Employee agrees to indemnify, defend and hold the Released Parties harmless from any action by the CMS relating to medical expenses of Employee.  Employee agrees to reasonably cooperate with the Released Parties upon request with respect to (i) any information needed to satisfy the reporting requirements under Section 111 of the Medicare, Medicaid, and SCHIP Extension Act of 2007, and (ii) any claim the CMS may make and for which Employee is required to indemnify the Released Parties under this Section.  Further, Employee agrees to waive any and all future actions against the Released Parties for any private cause of action for damages pursuant to 42 U.S.C. § 1395y(b)(3)(A).

 

9.                                      Limited Disclosure/Non-Disparagement.

 

(a)                                 Employee agrees that Employee will not publicize or disclose or cause or knowingly permit or authorize the publicizing or disclosure of the fact of this Separation Agreement, the contents of this Separation Agreement or of the negotiations leading up to it (hereafter collectively referred to as “Confidential Information”) to any person, firm, organization or entity of any and every type, public or private, for any reason, at any time, without the prior written consent of Employer unless otherwise compelled by operation of law.  The Parties acknowledge their intention that the provisions of this Section 9 create no liability for disclosures made: (i) prior to Employee’s execution of this Separation Agreement; (ii) by persons from public information released prior to Employee’s execution of this Separation Agreement; (iii) pursuant to Section 15 below to enforce the terms of this Separation Agreement; or (iv) as otherwise compelled by operation of law.

 

(b)                                 The foregoing notwithstanding, Employee acknowledges the confidentiality provisions of this Section 9 constitute a material inducement to Employer to enter into this Separation Agreement and represents that Employee has not directly or indirectly disclosed any Confidential Information to any third party prior to Employee’s execution of this Separation Agreement.

 

(c)                                  Employee is permitted to disclose Confidential Information to Employee’s spouse, tax advisors or attorneys with whom Employee chooses to consult regarding Employee’s consideration of this Separation Agreement.  However, each such person to whom Employee discloses Confidential Information shall be bound to the confidentiality provisions

 

5

 

hereof and any disclosure of Confidential Information by any such person so informed shall constitute a breach by Employee of Section 9(a) above.  Employee also is permitted to disclose Confidential Information to any federal, state or local government agency.

 

(d)                                 Employee shall not make any negative statements concerning, or take any action that derogates, the Company or any other Released Party, or the Company’s, or any other Released Party’s, products, services, reputation, officers, directors, employees, financial status, or operations or damages any of the Company’s or any other Released Party’s business relationships.  It is agreed that in the event of a breach of the provisions of this paragraph by Employee, it would be impractical or extremely difficult to fix actual damages to the Company.  Therefore, the Parties agree that in the event of such a breach, Employee shall pay to the Company, as liquidated damages, and not as penalty, the sum of TEN THOUSAND DOLLARS AND ZERO CENTS ($10,000.00) for each breach by Employee, which represents reasonable compensation to the Company for the loss incurred because of each such breach.

 

10.                               Return of Company Property/Information; Pre-Existing Agreements.

 

(a)                                 Within seven calendar days of Employee’s execution of this Separation Agreement, Employee will return all of Employer’s documents and property currently in Employee’s possession including, but without limitation, any and all services work, notes, reports, files, memoranda, records, cardkey passes, door and file keys, safe combinations, laptop computer, computer access codes, disks and instructional or personnel manuals, and other physical or personal property that Employee received or prepared or helped to prepare in connection with Employee’s employment with Employer (“Company Property”).

 

(b)                                 Employee acknowledges and agrees that in the course of Employee’s employment with Employer, Employee has acquired: (i) confidential information including without limitation information received by Employer from third parties, under confidential conditions; (ii) other technical, product, business, financial or development information from Employer, the use or disclosure of which reasonably might be construed to be contrary to the interest of Employer; or (iii) any other proprietary information or data, including but not limited to customer lists, which Employee may have acquired during Employee’s employment (hereafter collectively referred to as “Company Information”).  Employee understands and agrees that such Company Information was disclosed to Employee in confidence and for use only by Employer.  Employee understands and agrees that Employee: (i) will keep such Company Information confidential at all times, (ii) will not disclose or communicate Company Information to any third party, and (iii) will not make use of Company Information on Employee’s own behalf, or on behalf of any third party.  In view of the nature of Employee’s employment and the nature of Company Information Employee received during the course of Employee’s employment, Employee agrees that any unauthorized disclosure to third parties of Company Information or other violation, or threatened violation, of this Separation Agreement would cause irreparable damage to the confidential or trade secret status of Company Information and to Employer, and that, therefore, Employer, and each person constituting

 

6

 

Employer hereunder,  shall be entitled to an injunction prohibiting Employee from any such disclosure, attempted disclosure, violation or threatened violation.

 

(c)                                  The Parties acknowledge and agree that the terms and conditions set forth in the “INDEMNIFICATION AGREEMENT” effective as of December 11, 2006, and the CONFIDENTIALITY AND INVENTION ASSIGNMENT AGREEMENT effective as September 14, 2006, between Employee and Guidance Software, Inc., shall in no way be altered, modified, enhanced, diminished or amended by this Separation Agreement, and that the aforementioned agreements stand alone, operate individually, and shall be enforced separately without reference to or effect by the Separation Agreement.

 

(d)                                 The undertakings set forth in this Section 10 shall survive the termination of this Separation Agreement or other arrangements contained in this Separation Agreement.

 

(e)                                  Employee also affirms that Employee is in possession of all of Employee’s property that Employee had at Employer’s premises and that Employer is not in possession of any of Employee’s property.

 

11.                               Nonadmission of Wrongdoing.  The Parties agree that neither this Separation Agreement nor the furnishing of the consideration for this Separation Agreement shall be deemed or construed at any time for any purpose as an admission by the Released Parties of wrongdoing or evidence of any liability or unlawful conduct of any kind.

 

12.                               Job References.  Employee shall direct all individuals inquiring about Employee’s employment with Employer to Employer’s Human Resources Department, which will follow Employer’s policy by responding with only Employee’s last position and dates of employment. except that this provision shall not apply to any request from a prospective employer who provides a release signed by Plaintiff pursuant to the Fair Credit Reporting Act or any state counterpart.

 

13.                               Consideration and Revocation Periods - Notice.

 

(a)                                 Employee acknowledges that Employee already has attained the age of 40 and understands that this is a full release of all existing claims whether currently known or unknown including, but not limited to, claims for age discrimination under the Age Discrimination in Employment Act.

 

(b)                                 Employee further acknowledges that Employee has been advised to consult with an attorney of Employee’s own choosing before signing this Separation Agreement, in which Employee waives important rights, including those under the Age Discrimination in Employment Act.

 

(c)                                  By executing this Separation Agreement, Employee also acknowledges that Employee has been afforded at least 45 calendar days to consider the meaning

 

7

 

and effect of this Separation Agreement and to discuss the contents and meaning of this Separation Agreement, as well as the alternatives to signing this Separation Agreement, with an attorney of Employee’s choosing, and has done so.  Employee agrees that the 45-day consideration period began on the date this Separation Agreement first was delivered to Employee and that if Employer changes any of the terms of the offer contained in this Separation Agreement (whether the changes are material or not), the 45-day consideration period shall not be restarted but shall continue without interruption.

 

(d)                                 Employee understands that the releases contained in this Separation Agreement do not extend to any rights or claims that Employee has under the Age Discrimination in Employment Act that first arise after execution of this Separation Agreement.

 

(e)                                  If Employee signs this Separation Agreement before the 45-day consideration period expires, the seven-day revocation period (described in Section 13(f) below) immediately shall begin.  If Employee signs this Separation Agreement before the 45-day consideration period expires, Employee agrees that Employee knowingly and voluntarily has accepted the shortening of the 45-day consideration period and that Employer has not promised Employee anything or made any representations that are not contained in this Separation Agreement.  In addition, if Employee signs this Separation Agreement before the 45-day consideration period expires, Employee acknowledges and affirms that Employer has not threatened to withdraw or alter the offer contained in this Separation Agreement prior to the expiration of the 45-day consideration period.

 

(f)                                   Employee may revoke this Separation Agreement for a period of seven calendar days following the date Employee executes this Separation Agreement.  Any revocation during this period must be submitted in writing and state, “I hereby revoke my acceptance of our Separation Agreement and General Release of All Claims.”  The revocation must be personally delivered to Stephanie Urbach or her designee, or mailed to Stephanie Urbach, Guidance Software, 1055 E. Colorado Blvd., Pasadena, CA 91106 and postmarked within seven calendar days after Employee’s execution of this Separation Agreement.  The foregoing notwithstanding, this Separation Agreement shall not become effective and enforceable until the seven-day revocation period has expired.

 

14.                               Liens and Attorneys’ Fees/Indemnification.

 

(a)                                 Employee acknowledges that Employee solely is responsible for any liens made in connection with any services performed on Employee’s behalf by any attorney or other third parties.

 

(b)                                 Employee acknowledges and agrees that Employee will indemnify the Released Parties for any and all costs any of them incur as a result of any claims made by any attorneys or other third parties to recover monies from the amounts payable to Employee under this Separation Agreement.

 

8

 

15.                               Governing Law and Interpretation.

 

(a)                                 This Separation Agreement shall be governed and conformed in accordance with the laws of the state in which Employee was employed provided, however, that parol evidence shall not be admissible to alter, vary or supplement the term of this Separation Agreement.  Should any provision of this Separation Agreement be declared illegal or unenforceable by any court of competent jurisdiction and cannot be modified to be enforceable, excluding the general release language, such provision immediately shall become null and void, leaving the remainder of this Separation Agreement in full force and effect.

 

(b)                                 Arbitration.

 

a.                                      All claims, disputes, controversies, or disagreements of any kind whatsoever (“Claims”), including any claim arising out of or in connection with Employee’s employment or the termination of Employee’s employment, that may arise between Employee and the Company, including any Claims that may arise between Employee and the Company’s officers, directors, employees, or agents in their capacity as such, shall be submitted to a confidential final and binding arbitration before the American Arbitration Association in Los Angeles, California in accordance with the National Rules for the Resolution of Employment Disputes of The American Arbitration Association then existing.

 

b. Claims covered by this arbitration provision include, but are not limited to any dispute or controversy arising out of Employee’s employment, the events leading up to Employee being offered employment, the cessation of Employee’s employment, the compensation, terms, and other conditions of Employee’s employment, or statements made or actions taken at any time regarding Employee’s employment at Company which could have been brought in a court of competent jurisdiction, including, but not limited to, claims under the Age Discrimination in Employment Act; Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act of 1990; Sections 1981 through 1988 of Title 42 of the United States Code; the National Labor Relations Act, as amended; the Fair Labor Standards Act, as amended; the federal Family and Medical Leave Act; the California Family Rights Act; the California Fair Employment and Housing Act, as amended; the California Minimum Wage Laws; The Equal Pay Law for California, as amended; the California Labor Code, as amended, including California Labor Code §§ 201 et seq., 970 et seq. and 1050 et seq.; the California Wage Orders, and any other federal, state, or local civil or human rights law, or any other local, state or federal law, regulation, or ordinance, as well as any claim based on any public policy, contract, tort, or common law or any claim for costs, fees, or other expenses, including attorneys’ fees (collectively, “Claims”).  This arbitration provision does not require arbitration of claims for workers’ compensation or unemployment insurance.  This Arbitration Agreement is intended to be construed as broadly as possible under applicable law so that all claims and defenses that could be raised before a court must instead be raised in arbitration.  In addition, notwithstanding this arbitration provision, either party may file a request with a court of competent jurisdiction pursuant to applicable provisions of the California Arbitration Act, for equitable relief, including

 

9

 

but not limited to injunctive relief, pending resolution of any dispute through the arbitration procedure set forth herein.  Nothing in this arbitration provision shall be construed as precluding Employee from filing a charge or complaint with the California Department of Fair Employment and Housing, the Equal Employment Opportunity Commission, the National Labor Relations Board, or any other similar state or federal agency seeking administrative resolution of a dispute or claim, nor shall this arbitration provision require an employee to arbitrate a wage-related claim before he or she has received a non-binding administrative hearing before the State Labor Commissioner (known as a “Berman” hearing). However, any claim that cannot be resolved administratively through such agency shall be subject to this Arbitration Agreement.

 

c. Company will pay the AAA case management and administrative fees, the court reporter fees for the arbitration hearing and the arbitrator’s fees and expenses.  Employee will not be required to pay any fees which would exceed the amount of fees Employee would be required to pay if Employee had pursued action in court. The arbitrator shall allow the parties to conduct adequate discovery to pursue any claims.  The parties have the right to be represented by an attorney of their choice.  Upon the filing of the arbitration, the parties shall stipulate that all proceedings, orders, evidence and substantive actions of the proceedings shall be protected as confidential under a protective order. The decision or award of the arbitrator shall be in writing and will include a statement of the reasons for the award and the findings and conclusions on which the award is based.  The arbitrator’s power in respect to the issuance of an award under this provision shall be limited to the issuance of such an award consistent with and according to applicable California law.

 

16.                               Amendment.  This Separation Agreement may not be modified, altered or changed except in writing and signed by both Parties wherein specific reference is made to this Separation Agreement.

 

17.                               Miscellaneous.

 

(a)                                 This Separation Agreement may be signed in counterparts, both of which shall be deemed an original, but both of which, taken together shall constitute the same instrument.  A signature made on a faxed or electronically mailed copy of the Separation Agreement or a signature transmitted by facsimile or electronic mail shall have the same effect as the original signature.

 

(b)                                 The section headings used in this Separation Agreement are intended solely for convenience of reference and shall not in any manner amplify, limit, modify or otherwise be used in the interpretation of any of the provisions hereof.

 

(c)                                  This Separation Agreement was the result of negotiations between the Parties.  In the event of vagueness, ambiguity or uncertainty, this Separation Agreement shall not be construed against the Party preparing it, but shall be construed as if both Parties prepared it jointly.

 

10

 

(d)                                 If Employee or Employer fails to enforce this Separation Agreement or to insist on performance of any term, that failure does not mean a waiver of that term or of the Separation Agreement.  The Separation Agreement remains in full force and effect anyway.

 

18.                               Entire Agreement.  This Separation Agreement sets forth the entire agreement between the Parties hereto, and fully supersedes any prior agreements or understandings between the Parties hereto, except those identified in Section 10(c), which are incorporated herein by reference.  Employee acknowledges that Employee has not relied on any representations, promises or agreements of any kind made to Employee in connection with Employee’s decision to accept this Separation Agreement, except for those set forth in this Separation Agreement.

 

EMPLOYEE UNDERSTANDS AND ACKNOWLEDGES THAT EMPLOYEE HAS AT LEAST 45 CALENDAR DAYS TO REVIEW THIS SEPARATION AGREEMENT PRIOR TO EXECUTION OF THIS SEPARATION AGREEMENT.  EMPLOYEE FURTHER UNDERSTANDS AND ACKNOWLEDGES THAT ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS SEPARATION AGREEMENT DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL 45 CALENDAR DAY CONSIDERATION PERIOD.

 

HAVING ELECTED TO EXECUTE THIS SEPARATION AGREEMENT, TO FULFILL THE PROMISES AND TO RECEIVE THE CONSIDERATION SET FORTH IN SECTION 2 ABOVE, EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS SEPARATION AGREEMENT INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS EMPLOYEE HAS OR MIGHT HAVE AGAINST THE RELEASED PARTIES AS OF THE DATE OF EXECUTION OF THIS SEPARATION AGREEMENT.

 

IN WITNESS WHEREOF, the Parties hereto knowingly and voluntarily executed this Separation Agreement as of the date set forth below:

 

	
Executed   on 1/15/2016
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Shawn McCreight
    
	
 
    	
SHAWN   MCCREIGHT
    

 

11

 

	
 
    	
GUIDANCE   SOFTWARE, INC.
    
	
 
    	
 
    
	
Executed   on 1/15/2016
    	
By:
    	
/s/   Barry Plaga
    
	
 
    	
 
    	
BARRY   PLAGA,
    
	
 
    	
 
    	
CHIEF   OPERATING AND FINANCIAL OFFICER
    

 

12Exhibit 10.45

 

OFFICER AND DIRECTOR SHARE PURCHASE PLAN AND ELECTION FORM

 

GUIDANCE SOFTWARE, INC.

 

Officer and Director Share Purchase Plan

 

FEBRUARY 19, 2016

 

1. Purpose. The purpose of the Plan is to provide a convenient method by which Eligible Individuals of the Company may purchase fully vested Company common stock at fair market value. This Plan is effective as of February 19, 2016.

 

2. Definitions.

 

2.1 “1934 Act” means the Securities Exchange Act of 1934, as amended. Reference to a specific section of the 1934 Act or regulation thereunder shall include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.

 

2.2 “Board” means the Board of Directors of the Company.

 

2.3 “Committee” means the Compensation Committee of the Board.

 

2.4 “Company” means Guidance Software, Inc.

 

2.5 “Director” means a nonemployee member of the Board.

 

2.6 “Eligible Individual” means an Officer or Director who has been designated by the Committee as eligible to participate in the Plan.

 

2.7 “Fair Market Value” means the last quoted per share selling price for Shares in ordinary trading on the relevant date, or if there were no sales on such date, the last quoted per share selling price for Shares in ordinary trading on the nearest day before the relevant date.

 

2.8 “Fees” means the cash retainer fees and meeting fees payable to a Director for any given fiscal quarter or fiscal year of the Company as a result of his or her service on the Board and its committees during the applicable period.

 

2.9 “Officer” means a person who is a Section 16 officer of the Company, or otherwise designated by the Committee as eligible to participate in the Plan.

 

2.10 “Participant” means an Eligible Individual who elects to participate in the Plan in accordance with Section 5.1.

 

2.11 “Plan” means this Officer and Director Share Purchase Plan, as it may be amended from time to time.

 

2.12 “Share” means a share of the Company’s common stock.

 

2.13 “Trading Day” means a day on which national stock exchanges and the Nasdaq National Market are open for trading. A Trading Day begins at the time trading begins on such day.

 

2.14 “Trading Window” means the period commencing at the opening of market on the third Trading Day following the date of public disclosure of the financial results for a particular fiscal quarter or fiscal year of the Company and continuing until the close of market on the fifteenth Trading Day prior to the close of the fiscal quarter, provided that during this period no circumstances exist that otherwise closes the Trading Window.

 

3. Administration.

 

3.1 The Plan will be interpreted and administered by the Committee, whose actions and interpretations will be final and binding.

 

3.2 The Committee, in its sole discretion, will have the power, subject to, and within the limitations of, the express provisions of the Plan:

 

 

3.2.1 To interpret and determine the meaning, validity and parameters of the terms and provisions of the Plan and to determine any question arising under, or in connection with, the administration, operation or validity of the Plan;

 

3.2.2 To determine the form and manner for Participants to make elections under the Plan and to approve forms of election to be used in conjunction with the Plan;

 

3.2.3 To determine the time or times when Eligible Individuals may elect to participate in the Plan or otherwise change such elections;

 

3.2.4 To select the Officers and Directors who will be eligible to participate in the Plan from time to time;

 

3.2.5 To make any and all determinations as it may deem necessary or appropriate for the administration of the Plan, including the number of Shares to be issued in exchange for a Participant’s aggregate deductions;

 

3.2.6 To establish, amend and revoke rules and procedures relating to the Plan (for example, but not by way of limitation, with respect to Eligible Individual elections to participate in the Plan and the delivery of Shares) as it may deem necessary or appropriate for the administration of the Plan;

 

3.2.3 To employ such brokers, counsel, agents and advisers, and to obtain such broker, legal, clerical and other services, as it may deem necessary or appropriate in carrying out the provisions of the Plan; and

 

3.2.4 To delegate all or any part of its authority and powers under the Plan to one or more officers or employees of the Company, including with respect to the day-to-day administration of the Plan.

 

4. Shares Subject to the Plan.

 

4.1 Subject to adjustment as provided in Section 4.2, the total number of Shares available for issuance under the Plan shall equal two hundred thousand (200,000). Shares granted under the Plan may be either authorized but unissued Shares or treasury Shares.

 

4.2 In the event of any extraordinary dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares, then the Committee shall, in such manner as it may deem equitable, adjust the number and class of Shares which may be delivered under the Plan. Notwithstanding the preceding, the number of Shares available for issuance under the Plan always shall be a whole number.

 

5. Election to Purchase Shares.

 

5.1 Elections.

 

(i) Each Eligible Individual’s decision to participate in the Plan shall be entirely voluntary. An Eligible Individual may become a Participant in the Plan by enrolling or re-enrolling in the Plan during a Trading Window, provided that the Participant does not otherwise possess material non-public information concerning the Company (within the meaning of the 1934 Act) at the time of his or her election. In order to enroll, an Eligible Individual must complete, sign and submit to the Company an election form, in such form as the Committee will determine in its sole discretion.

 

(ii) On his or her election form, each Eligible Individual must authorize payroll deductions or, in the case of Directors, deductions from Fees for the purposes of purchasing fully vested Shares. Any deductions for this Plan will occur after normal and appropriate withholding for all Federal and State taxes and after voluntary withholdings for participation in other Company benefit plans. With respect to Officers, the payroll deductions may not reduce the individual’s compensation below an amount equal to two (2) times the federal or applicable state minimum wage, whichever is higher, required to be paid each pay period. Payroll deductions for a Participant who is an Officer will commence with the first full payroll period immediately following the date the Participant submits a properly completed election form to the Company. Deductions from Fees for a Participant who is a

 

 

Director will commence on the first day on which the foregone Fees would have been paid to the Director and will apply only to Fees earned and paid after the date the Participant submits a properly completed election form to the Company.

 

5.2 Duration of Elections. An Eligible Individual’s election form will remain in effect unless amended or terminated as provided in Section 5.3.

 

5.3 Amendment or Termination of Elections.

 

(i) A Participant may terminate his or her participation in the Plan at any time during a Trading Window by providing notice of termination to the Company in a manner and pursuant to such procedures as the Committee may determine from time to time. A Participant’s election to terminate participation shall be effective as soon as administratively practicable following the Company’s receipt of the Participant’s notice of termination, provided that the Participant has certified that his or her decision to terminate participation is made in good faith and in full compliance with both the letter and spirit of all federal and state securities laws.

 

(ii) A Participant may increase or decrease the rate of his or her payroll deductions or Fee deductions, as applicable, by submitting a new election form to the Company at any time during a Trading Window, provided that the Participant does not otherwise possess material non-public information concerning the Company (within the meaning of the 1934 Act) at the time of his or her new election. Notwithstanding the foregoing, a Participant may not decrease the rate of his or her deductions below 1% of his or her compensation or Fees, as applicable. Provided that a Participant has properly submitted a completed election form, the change in payroll or Fee deduction rate will be effective as soon as administratively practicable following the date the Company receives the Participant’s new election form and will apply only to compensation or Fees earned after such date.

 

6. Purchase and Delivery of Shares.

 

6.1 On, or as soon as administratively practicable following, the last payroll date of each month or, in the case of Directors, each date on which Fees would otherwise be paid, each Participant’s aggregate deductions for the applicable period will be converted into fully vested Shares based on the Fair Market Value of a Share on such date. No fractional Shares will be purchased. Any payroll or Fee deductions which are not sufficient to purchase a full Share will be paid to the Participant in cash.

 

6.2 Shares paid out to a Participant under the Plan will be delivered electronically to the Participant’s broker as indicated in the Participant’s election form or, if not specified, to the Participant’s broker(s) of record as listed in the Company’s records at the time of delivery.

 

7. Amendment or Termination of the Plan. The Committee may, at any time and for any reason, amend or terminate the Plan without regard to whether the amendment or termination may adversely affect any Participant. Without limiting the generality of the foregoing, such amendment or termination may be effective immediately notwithstanding that (i) elections have been made and are then in effect and (ii) deductions have been withheld but not yet applied to the purchase of Shares, in which case such deductions will be paid to the Participant in cash as soon as administratively practicable. No amendment or modification will require the consent of any Participants.

 

8. No Guarantee of Future Service. Neither the establishment or maintenance of the Plan, the purchase of Shares, nor any action of the Company or the Committee, will be held or construed to confer upon any Officer any right to be continued as an employee of the Company nor, upon dismissal, any right or interest in any specific assets of the Company other than as provided in the Plan. The Company expressly reserves the right to discharge any Officer at any time, with or without cause.

 

9. Tax Reporting. The participant will be responsible for reporting and paying any and all federal, state, or any other tax liabilities that arise from selling or otherwise disposing of the Shares. At any time, the Company may, but will not be obligated to, withhold from the Participant’s compensation the amount necessary for the Company to meet applicable withholding obligations, including any withholding required to make available to the Company any tax deductions or benefits attributable to the issuance, sale or disposition of Shares by the Participant.

 

 

10. Choice of Law. All questions concerning the construction, validity, and interpretation of the Plan will be governed by the law of the State of Delaware, exclusive of the conflict of laws provisions thereof.

 

11. Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

 

12. Requirements of Law. The Company shall not be required to issue any certificate or certificates for Shares hereunder prior to fulfillment of all the following conditions: (a) the admission of such Shares to listing on all stock exchanges on which such class of stock is then listed; (b) the completion of any registration or other qualification of such Shares under any U.S. state or federal law or under the rulings or regulations of the Securities and Exchange Commission or any other governmental regulatory body, which the Committee shall, in its absolute discretion, deem necessary or advisable; and (c) the obtaining of any approval or other clearance from any U.S. state or federal governmental agency, which the Committee shall, in its absolute discretion, determine to be necessary or advisable.

 

13. Section 409A.The Plan is intended to comply with the requirements of Section 409A of the Internal Revenue Code and shall be interpreted consistent with this intent so as to avoid the imputation of any tax, penalty or interest pursuant to Section 409A of the Code.  Shares shall be paid to a Participant no later than two and one half months following the year in which the cash compensation or Fees were earned.

 

14. Headings. The headings in the Plan are for convenience only and will not be deemed to constitute a part hereof nor to affect the meaning hereto.

 

 

GUIDANCE SOFTWARE, INC.

 

OFFICER AND DIRECTOR SHARE PURCHASE PLAN

 

ELECTION FORM TO PURCHASE

SHARES THROUGH PAYROLL DEDUCTIONS

 

Complete this form if you wish to participate in the Officer and Director Share Purchase Plan (the “Plan”). The Plan allows you to purchase shares of Guidance Software, Inc. (“GUIDANCE”) common stock pursuant to the terms of the Plan.

 

Plan Overview

 

In order to provide you with a convenient method of purchasing GUIDANCE shares, GUIDANCE now permits you to elect to purchase fully-vested shares through payroll deduction or, if you are a nonemployee member of GUIDANCE’ Board of Directors, through deduction from your quarterly cash retainer fees. If you choose to purchase shares by enrolling in the Plan, your election will remain in effect and you will continue to purchase shares at fair market value until such time as you terminate or change your election, you terminate your employment or service with GUIDANCE, you are otherwise no longer eligible to participate in the Plan or Guidance decides to terminate the Plan. You may terminate your participation in the Plan at any time during an open “Trading Window” (as defined in the Plan), provided that you certify that your decision to terminate your participation was made in good faith and in full compliance with both the letter and spirit of all federal and state securities laws. You may change your election to increase or decrease your deduction rate at any time during an open Trading Window, but only if you do not otherwise possess material non-public information concerning GUIDANCE at the time you change your election. Note, however, that you may not decrease the rate of your deductions below 1% of your compensation or fees, as applicable.

 

Elections

 

No later than the beginning of each open “Trading Window,” you will be notified if you are eligible to participate in the Plan. You may submit your Election Form at any time during which the Trading Window is open. On the Election Form, you will indicate either the percentage or amount that you would like deducted from your compensation or fees, as applicable, for the purpose of purchasing shares.

 

However, if you are an officer of GUIDANCE, please note that, in accordance with applicable employment law requirements, GUIDANCE must pay you an amount at least equal to two (2) times the federal or applicable state minimum wage, whichever is higher, required to be paid each pay period. As a result, you will not be permitted to reduce your compensation below this amount.

 

In addition, if you are an officer of GUIDANCE, the percentage or amount that you select will be applied to your compensation only after GUIDANCE has deducted from your compensation the normal and appropriate withholding for all Federal and State taxes and any voluntary withholdings for participation in other Company benefit plans. For example, if your gross compensation per pay period is $10,000 but you receive only $6,000 after applicable required and voluntary withholdings, the percentage or amount that you select below will apply only to the $6,000 that remain and would ordinarily be paid to you. In this example, if you elect to reduce your cash compensation by 10% in order to purchase GUIDANCE shares under the Plan, your after-tax cash compensation will be reduced by $600 (10% of 6,000).

 

Please note that, if you are an officer of GUIDANCE, your election will be effective with the first full payroll period immediately following the date you submit a properly completed election form to GUIDANCE. If you are a nonemployee member of GUIDANCE’ Board of Directors, your election will apply only to fees earned and paid after the date you submit a properly completed election form to GUIDANCE and deductions will commence on the first day on which the foregone fees would have been paid to you.

 

Your election (including the rate or amount of payroll or fee deduction) will remain in effect until you terminate or change your election, terminate your relationship with GUIDANCE, you are otherwise no longer are eligible to participate in the Plan or Guidance decides to terminate the Plan. You may change your election to increase or decrease your deduction rate only during an open “Trading Window,” but only if you do not otherwise possess material non-public information concerning GUIDANCE at the time you

 

 

change your election. Trading Windows will typically occur approximately every 3 months, but they may happen less frequently, for example, due to a blackout period. As a result, please note that your election may remain in effect for a period of time that is longer than three (3) months.

 

Purchase of Shares

 

If you are an officer of GUIDANCE, your aggregate deductions for the payroll period will be converted into fully vested GUIDANCE shares on, or as soon as administratively practicable following, each payroll date. If you are a nonemployee member of GUIDANCE’ Board of Directors, your aggregate deductions for the applicable period will be converted into fully vested GUIDANCE shares on, or as soon as administratively practicable following, each date on which fees would otherwise be paid. The number of shares that you will receive will be based on the fair market value of an GUIDANCE share on the applicable date (as determined in accordance with the terms of the Plan).

 

The shares will not be considered a “purchase” that is subject to liability under Section 16 of the Securities Exchange Act of 1934, as amended (“Section 16”), but will be subject to Section 16 reporting. This means that you can participate in the Plan even though you may be regularly selling shares under a 10b5-1 plan in connection with the exercise of your stock options or vesting of any restricted stock or restricted stock unit awards. A Form 4 must be filed in connection with each purchase under the Plan.

 

If you would like to enroll in the Plan, please print:

 

Name:                                                                       (the “Participant”)

Social Security No.:

 

Important—Deadline for Completion and Submission of Election Form: You may elect to purchase GUIDANCE shares through payroll or fee deduction by completing and submitting this Election Form during an open “Trading Window.” If you submit the Election Form at any other time, your election will be null and void. If you choose not to participate in the Plan, you will be paid your compensation in cash in accordance with GUIDANCE’ normal payroll practices.

 

ELECTION

 

For Directors:

 

	
o
    	
I hereby elect to receive shares of GUIDANCE common   stock in lieu of the percentage or the amount of the quarterly cash retainer   fees that otherwise would be payable to me, as indicated below, with any   remainder to be paid in cash:
    
	
 
    	
 
    
	
 
    	
            %   of quarterly retainer fees (Choose any whole percentage from 1% to 100%)
    
	
 
    	
 
    
	
 
    	
$            (Insert a dollar amount)
    

 

For Officers:

 

	
o
    	
I hereby elect to receive shares of GUIDANCE common   stock in lieu of the percentage or the amount of compensation payable to me   on each payroll date, as indicated below, with any remainder to be paid in   cash:
    
	
 
    	
 
    
	
 
    	
            %   of cash compensation payable on each payroll date (Choose any whole   percentage from 1% to 100%)*
    
	
 
    	
 
    
	
 
    	
$            (Insert a dollar amount)*
    

 

	
*
    	
Please note that, notwithstanding your election above, the   Company must pay you an amount equal to two (2) times the federal or   applicable state minimum wage, whichever is higher, required to be paid each   pay period. As a result, your payroll deductions will not reduce your   compensation below this amount. 
    

 

 

DELIVERY INSTRUCTIONS

Please deliver all shares to:

 

	
Account Number:
    	
 
    	
 
    
	
Broker Name:
    	
 
    	
 
    
	
Broker   Contact (Phone Number):
    	
 
    	
 
    
				

 

TAXATION

 

For Directors

 

The fair market value of the shares you purchase will be taxable to you as ordinary income. The amount of income you will recognize on the receipt of the shares will be the same amount you would recognize if your fees had been paid to you in cash. As with cash payments of your retainer fees, GUIDANCE will report the income to you on a Form 1099. However, in accordance with current law, because you are not an employee of GUIDANCE, GUIDANCE will not withhold from your income to cover your tax liability.

 

If you are a taxpayer in countries other than the United States, you may be subject to additional tax obligations.

 

For Officers

 

Your payroll deductions are made on an after-tax basis. This means that the percentage or amount that you selected above will be applied to your compensation only after GUIDANCE has deducted from your compensation the normal and appropriate withholding for all Federal and State taxes and any voluntary withholdings for participation in other Company benefit plans. As a result, you will have already been taxed on the compensation that you use for the purpose of purchasing shares. Consequently, in accordance with current law, GUIDANCE will have no further tax reporting or withholding obligations with respect to the amount of your compensation used to purchase shares.

 

If you are a taxpayer in countries other than the United States, you may be subject to additional tax obligations.

 

NO REVOCATION OF ELECTION

 

After you submit your Election Form, your election will remain in effect until you terminate or change your election, you terminate your employment or service with the Company, you are otherwise no longer eligible to participate in the Plan or Guidance decides to terminate the Plan. You may terminate your participation in the Plan at any time during a Trading Window (as defined in the Plan) , provided that you certify that your decision to terminate your participation in the Plan was made in good faith. You may change your election at any time during a Trading Window, but only if you do not otherwise possess material non-public information concerning GUIDANCE at the time you change your election. Generally, Trading Windows will typically occur approximately every three (3) months, but they may happen less frequently. This means that your election may remain in effect for a period of time that is longer than three (3) months.

 

DELIVERY

 

Shares paid out pursuant to this election will be electronically delivered to your broker as listed above or, if none is listed, your broker of record as listed in GUIDANCE’s records at the time of delivery. Payout will be in the form of whole shares of GUIDANCE common stock with the balance in cash. Delivery will be made as soon as administratively practicable following, each payroll date or, if you are a nonemployee member of GUIDANCE’ Board of Directors, each date on which your fees would otherwise be paid.

 

 

PARTICIPANT SIGNATURE

 

I understand that my decision to elect to receive shares in lieu of any compensation, retainer and/or meeting fees payable to me will remain in effect until such time as I terminate or change my election, I terminate my employment or service with GUIDANCE, I am otherwise no longer eligible to participate in the Plan or Guidance decides to terminate the Plan . If I am a director, I understand that I will recognize ordinary income on the fully-vested shares, which will be reported to me on the appropriate form.

 

I understand that the Compensation Committee shall have the discretion to make all determinations and decisions regarding this election. To the extent the Committee determines that this election does not comply with applicable laws, now or in the future, this election shall be null and void. In such an event, any compensation or fees subject to this election will be paid in cash when they otherwise become due and owing.

 

	
 
    	
 
    
	
PARTICIPANT
    	
 
    
	
 
    	
 
    
	
Signed:
    	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
Agreed to and accepted:
    	
 
    
	
 
    	
 
    
	
GUIDANCE   SOFTWARE, INC.
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    	
Date:
    	
 
    
	
Title:
    	
 
    	
 
    	
 
    	
 
    
						

 

 

POWER OF ATTORNEY

 

Know all by these presents, that the undersigned hereby constitutes and appoints each of Alfredo Gomez, Joel Ginsberg and Rasmus van Der Colff, or either of them signing singly, and with full power of substitution, the undersigned’s true and lawful attorney-in-fact to:

 

(1)                                 prepare, execute in the undersigned’s name and on the undersigned’s behalf, and submit to the U.S. Securities and Exchange Commission (the “SEC”) a Form ID, including amendments thereto, and any other documents necessary or appropriate to obtain codes and passwords enabling the undersigned to make electronic filings with the SEC of reports required by Section 16(a) of the Securities Exchange Act of 1934 or any rule or regulation of the SEC;

 

(2)                                 execute for and on behalf of the undersigned, in the undersigned’s capacity as an officer and/or director of GUIDANCE Corporation (the “Company”), Forms 3, 4, and 5 in accordance with Section 16(a) of the Securities Exchange Act of 1934 and the rules thereunder;

 

(3)                                 do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute any such Form 3, 4, or 5, complete and execute any amendment or amendments thereto, and timely file such form with the SEC and any stock exchange or similar authority; and

 

(4)                                 take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact’s discretion.

 

The undersigned hereby grants to each such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact’s substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted.  The undersigned acknowledges that the foregoing attorneys-in-fact, in serving in such capacity at the request of the undersigned, are not assuming, nor is the Company assuming, any of the undersigned’s responsibilities to comply with Section 16 of the Securities Exchange Act of 1934.

 

This Power of Attorney shall remain in full force and effect until the undersigned is no longer required to file Forms 3, 4, and 5 with respect to the undersigned’s holdings of and transactions in securities issued by the Company, unless earlier revoked by the undersigned in a signed writing delivered to the foregoing attorneys-in-fact.

 

IN WITNESS WHEREOF, the undersigned has caused this Power of Attorney to be executed as of this       day of         , 2016.

 

	
 
    	
 
    
	
 
    	
Signature
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Print Name

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00254-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00254-of-00352.parquet"}]]