Document:

exv10w4

 

EXHIBIT 10.4

SEPARATION AND RELEASE AGREEMENT

     This Separation and Release Agreement (“Agreement”) is made by and between PAR PHARMACEUTICAL
COMPANIES, INC., and PAR PHARMACEUTICAL, INC. (collectively referred to as “THE COMPANY”), and
SHANKAR HARIHARAN (“EMPLOYEE”), a specified employee of THE COMPANY. The Effective Date of this
Agreement shall be as set forth in Section 9 herein.

RECITALS

     A. For purposes of this Agreement, “THE COMPANY” means PAR PHARMACEUTICAL COMPANIES, INC., and
PAR PHARMACEUTICAL, INC., and each and any of their parent and subsidiary corporations, affiliates,
departments, divisions, and/or joint ventures.

     B. EMPLOYEE has been employed by THE COMPANY as Executive Vice President and Chief Scientific
Officer.

     C. As a result of EMPLOYEE’s separation from THE COMPANY, and to fully and finally resolve all
issues concerning EMPLOYEE’s employment relationship with THE COMPANY, THE COMPANY and EMPLOYEE
have decided to enter into this Agreement.

          For and in consideration of the mutual promises and covenants in this Agreement, the parties
agree as follows:

OPERATIVE PROVISIONS

          1. Separation of Employment. THE COMPANY and EMPLOYEE agree that EMPLOYEE shall
separate from THE COMPANY effective at the end of business on November 22, 2006 (“Separation
Date”), such separation of employment with THE COMPANY occurring pursuant to Section 3.2.5 of that
certain Employment Agreement dated as of May 28, 2004 by and between the parties (“Employment
Agreement”). All capitalized terms used herein without definition will have the same respective
meanings as provided in the Employment Agreement.

          2. Pay, Benefits and Stock Options Upon Separation.

               (a) Separation Pay. In accordance with Section 3.3.2 of the Employment Agreement,
EMPLOYEE is, on account of his separation from THE COMPANY, entitled to severance in the amount of
eight hundred forty-two thousand dollars ($842,000.00), which severance shall be payable in six (6)
installments beginning in the seventh (7th) month after the Separation Date. The first
installment shall consist of a payment of four hundred ninety one thousand one hundred sixty six
dollars and seventy cents ($491,166.70), and shall be tendered on the first payroll cycle of June
2007, and in each of the five (5) months thereafter a payment of seventy thousand one hundred sixty
six dollars and sixty six cents ($70,166.66) shall be tendered at regular payroll cycles. All
payments shall be tendered in accordance with THE

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COMPANY’s regular payroll practices. The aforementioned payments shall be subject to all
appropriate federal and state withholding and employment taxes. EMPLOYEE hereby agrees that he is
entitled to no other payment from THE COMPANY as the result of his separation or during the
aforementioned period other than as set forth herein.

               (b) Benefits/Termination. In accordance with Section 3.3.5 of the Employment
Agreement, on account of EMPLOYEE’s separation from THE COMPANY, THE COMPANY shall, for a
twenty-four (24) month period from the Separation Date, maintain in effect for EMPLOYEE coverage
under THE COMPANY’S life insurance, medical, health and accident, and disability plans and programs
in which EMPLOYEE and his family were entitled to participate immediately prior to the Separation
Date; provided, that such benefits shall immediately terminate in the event EMPLOYEE becomes
eligible for comparable benefits coverage by a subsequent employer prior to the expiration of the
twenty-four (24) month period. Following the termination of the twenty-four (24) month period, if
EMPLOYEE is not eligible for comparable benefits coverage as an employee rather than as a dependent
under another employer’s benefit program, EMPLOYEE will have the opportunity to elect continuation
coverage pursuant to COBRA and will then be responsible for the execution of the COBRA continuation
of coverage forms. EMPLOYEE will also have the opportunity at the expiration of the twenty-four
(24) month period at EMPLOYEE’s expense to convert the life insurance policy maintained by THE
COMPANY on the life of EMPLOYEE to an individual policy to be maintained by EMPLOYEE. All other
benefits and allowances, except those in which EMPLOYEE has vested rights under the terms of an
employee benefit plan or as otherwise provided herein, terminate as of the Separation Date.

               (c) Stock Options. The parties agree that, pursuant to Section 2.3 of the Employment
Agreement, EMPLOYEE has been granted options to purchase 50,000 shares of THE COMPANY’s common
stock. Of these, 37,500 options are unvested. These unvested options shall vest pursuant to
Section 3.3.6 of the Employment Agreement and subject to all limitations and restrictions
identified therein. EMPLOYEE agrees that, with the exception of those options granted pursuant to
Section 2.3 of the Employment Agreement, as identified in this Section 2(c), any other options to
purchase shares of THE COMPANY’s common stock shall expire as set forth in the 2004 Performance
Equity Plan, Amended and Restated as of May 24, 2005 and the applicable terms of the stock award
agreement(s).

               (d) Restricted Stock. The parties agree that, pursuant to Section 2.3 of the
Employment Agreement, EMPLOYEE has been granted 60,000 shares of THE COMPANY’s restricted stock.
Of these, 33,750 shares are unvested. These unvested shares shall vest pursuant to Section 3.3.6
of the Employment Agreement and subject to all limitations and restrictions identified therein.
EMPLOYEE agrees that, with the exception of those shares granted pursuant to Section 2.3 of the
Employment Agreement, as identified in this Section 2(d), any other restricted stock granted to
EMPLOYEE shall expire as set forth in the 2004 Performance Equity Plan, Amended and Restated as of
May 24, 2005 and the applicable terms of the stock award agreement(s).

               (e) Unused Vacation. THE COMPANY shall, on the Separation Date, pay EMPLOYEE for his
unused vacation days, which THE COMPANY and EMPLOYEE agree total twenty five and one-half (25.5)
days.

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               (f) In accordance with the Employment Agreement, the payments and benefits contained in Section
2(a)-(d) are contingent upon EMPLOYEE’s continued compliance with Sections 4 and 5 of the
Employment Agreement, as referenced in Sections 6 through 18 herein.

          3. Earned Salary and Expenses. EMPLOYEE acknowledges and agrees that he has been paid
in full for all work performed (except for three (3) days between November 19, 2007 and the
Separation Date), and has received reimbursement for all business expenses, and is entitled to no
further payments or bonuses from THE COMPANY whatsoever for services rendered or any other reason,
except as set forth herein. THE COMPANY agrees to pay EMPLOYEE for the three (3) days referenced
herein on the Separation Date.

          4. Consideration.

               (a) No Disparagement. THE COMPANY agrees to refrain from any publication or any type
of communication, oral or written, of a defamatory or disparaging statement pertaining to EMPLOYEE.
Nothing in this Section shall be construed as prohibiting THE COMPANY from making any disclosures
as required by law or statute, including the release of such information as is required to be
disclosed by THE COMPANY in connection with any legal proceeding, filing with the Securities and
Exchange Commission (“SEC”) under the Securities Exchange Act of 1934, or as otherwise required by
law.

               (b) Sufficiency of Consideration/No Admission of Liability. The parties agree that
the consideration tendered to EMPLOYEE is good and sufficient consideration for this Agreement, to
the extent it imposes upon EMPLOYEE obligations in addition to those contained in the Employment
Agreement. EMPLOYEE acknowledges that neither this Agreement, nor any consideration pursuant to
this Agreement, shall be taken or construed to be an admission or concession of any kind with
respect to alleged liability or alleged wrongdoing by THE COMPANY.

          5. Indemnification and Advancement of Legal Fees.

               (a) Mandatory Indemnification. In accordance with Section 5.1 of THE COMPANY’s
Bylaws, and as more definitively set forth therein, THE COMPANY agrees to indemnify and hold
harmless, to the fullest extent now or hereafter permitted by applicable law, EMPLOYEE if he is, or
is threatened to be made, a party to or otherwise involved in any Proceeding, (as defined in the
Bylaws), by reason of the fact that EMPLOYEE is or was an Authorized Representative, (as defined in
the Bylaws), against all expenses (including attorneys’ fees and disbursements), judgments, fines
(including excise taxes and penalties) and amounts paid in settlement actually and reasonably
incurred by EMPLOYEE in connection with such Proceeding, whether the basis of EMPLOYEE’s
involvement in the Proceeding is an alleged act or omission in EMPLOYEE’s capacity as an Authorized
Representative or in another capacity while serving in such capacity or both.

               (b) Advancement of Expenses. In accordance with Section 5.2 of THE COMPANY’s Bylaws,
THE COMPANY shall promptly pay all expenses (including attorneys’ fees and disbursements) actually
and reasonably incurred by EMPLOYEE in

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defending or appearing (otherwise than as a plaintiff) in any Proceeding in advance of the
final disposition of such Proceeding upon receipt of an undertaking by or on behalf of EMPLOYEE to
repay all amounts so advanced if it shall ultimately be determined by a final, unappealable
judicial decision that EMPLOYEE is not entitled to be indemnified for such expenses under the
Bylaws or otherwise.

               (c) Permissive Indemnification and Advancement of Expenses. In accordance with
Section 5.3 of THE COMPANY’s Bylaws, THE COMPANY may, as determined by the Board in its discretion,
from time to time indemnify EMPLOYEE if he is, or is threatened to be made, a party to or otherwise
involved in any Proceeding by reason of the fact that EMPLOYEE is or was an Authorized
Representative, against all expenses (including attorneys’ fees and disbursements), judgments,
fines (including excise taxes and penalties) and amounts paid in settlement actually and reasonably
incurred by EMPLOYEE in connection with such Proceeding, whether the basis of EMPLOYEE’s
involvement in the Proceeding is an alleged act or omission in EMPLOYEE’s capacity as an Authorized
Representative or in another capacity while serving in such capacity or both. THE COMPANY may, as
determined by the Board in its discretion from time to time, pay expenses actually and reasonably
incurred by EMPLOYEE by reason of EMPLOYEE’s involvement in such a Proceeding in advance of the
final disposition of the Proceeding.

          6. No Public Statements. EMPLOYEE and THE COMPANY represent and warrant that they
will refrain from making any public statement regarding EMPLOYEE’s separation from THE COMPANY for
ninety (90) days following the Separation Date, absent written approval from the other. However,
THE COMPANY is permitted to make any disclosures regarding EMPLOYEE’s status or this agreement as
required by law or regulations, including release of such information or that is required to be
disclosed by THE COMPANY in its filings under the Securities Exchange Act of 1934 with the
Securities and Exchange Commission (“SEC”).

          7. General Release and Waiver of Claims.

               (a) Solely in connection with EMPLOYEE’s employment relationship with THE COMPANY and in
accordance with Section 3.3 of the Employment Agreement, and in consideration of the additional
promises and covenants made by THE COMPANY in this Agreement, EMPLOYEE hereby knowingly and
voluntarily compromises, settles and releases THE COMPANY from any and all past, present, or future
claims, demands, obligations, or causes of action, whether based on tort, contract, statutory or
other theories of recovery for anything that has occurred up to and including the date of
EMPLOYEE’s execution of this Agreement. The released claims include those EMPLOYEE may have or has
against THE COMPANY, or which may later accrue to or be acquired by EMPLOYEE against THE COMPANY
and its predecessors, successors in interest, assigns, parent and subsidiary organizations,
affiliates, and partners, and its past, present, and future officers, directors, shareholders,
agents, and employees, and their heirs and assigns. EMPLOYEE specifically agrees to release and
waive all claims for wrongful termination and any claim for retaliation or discrimination in
employment under federal or state law or regulation including, but not limited to, discrimination
based on age, sex, race, disability, handicap, national origin or any claims under Title VII of the
Civil Rights Act of 1964, the Age Discrimination in Employment Act
of

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1967, as amended by the Older Workers’ Benefits Protection Act (ADEA), the Americans with
Disabilities Act of 1990 (ADA), the New Jersey Law Against Discrimination (LAD), the Consolidated
Omnibus Budget Reconciliation Act (COBRA), the Employee Retirement Income Security Act (ERISA), the
Immigration Reform and Control Act (IRCA), the Fair Labor Standards Act (FLSA), the Conscientious
Employee Protection Act (CEPA), the Family Medical Leave Act (FMLA), the New Jersey Family Leave
Act (NJFLA) and the New Jersey wage and hour law. The release of claims agreed to herein
specifically excludes any claims relating to a breach of this Agreement.

          8. Covenant Not to Sue.

               (a) Each party represents and agrees that such party has not filed any lawsuits or
arbitrations against the other party, or filed or caused to be filed any charges or complaints
against the other party with any municipal, state or federal agency charged with the enforcement of
any law or any self-regulatory organization. EMPLOYEE agrees, not inconsistent with EEOC
Enforcement Guidance or Non-Waivable Employee Rights Under EEOC-Enforced Statutes dated April 11,
1997, and to the fullest extent permitted by laws, not to sue or file a charge, complaint,
grievance or demand for arbitration against THE COMPANY in any claim, arbitration, suit, action,
investigation or other proceeding of any kind which relates to any matter that involved THE
COMPANY, and that occurred up, to and including the date of EMPLOYEE’s execution of this Agreement,
unless required to do so by court order, subpoena or other directive by a court, administrative
agency, arbitration panel or legislative body, or unless required to enforce this Agreement.
Nothing in this Agreement shall prevent EMPLOYEE from (i) commencing an action or proceeding to
enforce this Agreement, or (ii) exercising EMPLOYEE’s right under the Older Workers Benefit
Protection Act of 1990 to challenge the validity of EMPLOYEE’s waiver of ADEA claims set forth in
this Agreement.

               (b) THE COMPANY represents that it is currently not aware of any basis for any cause of action
against EMPLOYEE relative to any matter that involved THE COMPANY and that occurred up to and
including the date of THE COMPANY’s execution of this Agreement.

          9.
Consideration and Revocation Periods: Effective Date.
EMPLOYEE also understands
and acknowledges that the ADEA requires THE COMPANY to provide EMPLOYEE with at least twenty one
(21) calendar days to consider this Agreement (“Consideration Period”) prior to its execution.
EMPLOYEE also understands that he is entitled to revoke this Agreement at any time during the seven
(7) days following EMPLOYEE’s execution of this Agreement (“Revocation Period”) by notifying THE
COMPANY in writing of his revocation. This Agreement shall become effective on the day after the
seven-day Revocation Period has expired unless timely notice of EMPLOYEE’s revocation has been
delivered to THE COMPANY (the “Effective Date”).

          10. Return of Company Property. On his Separation Date, EMPLOYEE agrees to comply
with Section 4.17 of the Employment Agreement.

          11. Confidential Information. EMPLOYEE acknowledges that he will comply with the
confidentiality covenants contained in Section 4 of the
Employment Agreement.

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          12. Covenants Not to Solicit.

               (a) Covenant Not To Solicit Suppliers and Others. EMPLOYEE acknowledges that he will
comply with the nonsolicitation covenants contained in Section 4.8 of the Employment Agreement.

               (b) Covenant Not To Hire or Solicit Employees. EMPLOYEE acknowledges that he will
comply with the nonsolicitation covenants contained in Section 4.9 of the Employment Agreement.
However, this covenant shall not be applicable to hiring or offering to hire pursuant to a response
to a general advertisement by a subsequent employer with which EMPLOYEE is affiliated, so long as
these methods are not utilized to solicit or attract COMPANY employees only or to target COMPANY
employees.

          13. Covenant Not to Compete. EMPLOYEE acknowledges that he will comply with the
covenants not to compete contained in Section 4.7 of the Employment Agreement, as same is further
defined by Section 4.7.1 of said Employment Agreement.

          14. Confidentiality. EMPLOYEE agrees to keep both the existence and the terms of this
Agreement completely confidential, except that EMPLOYEE may discuss this Agreement with EMPLOYEE’s
family, attorney, accountant, or other professional person who may assist EMPLOYEE in evaluating,
reviewing, or negotiating this Agreement, and as otherwise permitted or required under applicable
law. EMPLOYEE understands and agrees that his disclosure of the terms of this Agreement contrary to
the terms set forth herein will constitute a breach of this Agreement; provided that EMPLOYEE may
disclose his covenant not to solicit set forth in Section 12 and his covenant not to compete set
forth in Section 13 to a successor employer or potential successor employer.

          15. No Disparagement. EMPLOYEE agrees to refrain from any publication or any type of
communication, oral or written, of a defamatory or disparaging statement pertaining to THE COMPANY,
its past, present and future officers, agents, directors, supervisors, employees or
representatives. Nothing in this Section shall be construed as prohibiting EMPLOYEE from making
any disclosures as required by law or statute, including the release of such information as is
required to be disclosed by EMPLOYEE in connection with any legal proceeding, or as otherwise
required by law.

          16. Technology, Products and Inventions. EMPLOYEE shall comply with Sections 4.3,
4.5, and 4.14 of the Employment Agreement with regard to Intellectual Property, research and
development, and the like, as well as copyright and property rights thereto.

          17. Disclosure of Information. EMPLOYEE represents and warrants that he is not aware
of any material non-public information concerning THE COMPANY, its business or its affiliates that
he has not disclosed to the Board of Directors of THE COMPANY prior to the date of this Agreement
or that is required to be disclosed by THE COMPANY in its filings under the Securities Exchange Act
of 1934 with the Securities and Exchange Commission (“SEC”) and that has not been so disclosed.

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          18. Cooperation. EMPLOYEE and THE COMPANY acknowledge that each will comply with his
or its respective obligations pursuant to the cooperation covenants contained Section 4.16 of the
Employment Agreement.

          19. Injunctive Relief. As set forth in Section 4.18 of the Employment Agreement,
EMPLOYEE acknowledges that his failure to abide by Sections 6 and 10 through 18 of this Agreement,
and their counterparts in the Employment Agreement (as well as any other paragraph in the
Employment Agreement which is the subject of Paragraph 4.18 therein), will result in immediate and
irreparable damage to THE COMPANY and will entitle THE COMPANY to injunctive relief from a court
having appropriate jurisdiction.

          20. Securities Exchange Act Reporting. THE COMPANY shall assist the EMPLOYEE in the
preparation and filing of his final reports for the year 2006 as an officer of THE COMPANY under
Section 16 of the Securities Exchange Act of 1934, as amended.

          21. Representation by Attorney. EMPLOYEE acknowledges that he has been given the
opportunity to be represented by independent counsel in reviewing this Agreement, and that EMPLOYEE
understands the provisions of this Agreement and knowingly and voluntarily agrees to be bound by
them.

          22. No Reliance Upon Representations. EMPLOYEE hereby represents and acknowledges
that in executing this Agreement, EMPLOYEE does not rely and has not relied upon any representation
or statement made by THE COMPANY or by any of THE COMPANY’s past or present agents,
representatives, employees or attorneys with regard to the subject matter, basis or effect of this
Agreement other than as set forth in this Agreement.

          23. Tax Advice. 

               (a) THE COMPANY makes no representations regarding the federal or state tax consequences of
the payments or benefits referred to above and provided for herein, and shall not be responsible
for any tax liability, interest or penalty including but not limited to those which may arise under
Internal Revenue Service Code Section 409A, incurred by EMPLOYEE which in any way arises out of or
is related to said payments or benefits. With the exception of the regular payroll deductions for
federal and state withholding and employment taxes, EMPLOYEE agrees that it shall be his sole
responsibility to pay any amount that may be due and owing as federal or state taxes, interest and
penalties, including but not limited to those which may arise under Internal Revenue Service Code
Section 409A, arising out of the payments or benefits provided for herein.

               (b) EMPLOYEE agrees and understands that he is not relying upon THE COMPANY or its counsel for
any tax advice regarding the tax treatment of the payments made or benefits received pursuant to
this Agreement, and EMPLOYEE agrees that he is responsible for determining the tax consequences of
all such payments and benefits hereunder, including but not limited to those which may arise under
Internal Revenue Service Code Section 409A, and for paying taxes, if any, that he may owe with
respect to such payments or benefits.

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          24. Employment Agreement. The parties acknowledge and agree that all pertinent terms
of the Employment Agreement shall remain in full force and effect and are enforceable, to the
extent any such terms therein survive or govern the period after the Term of that Employment
Agreement and have not been specifically modified by this Agreement. The event of revocation of
this Separation and Release Agreement in accordance with Section 9 herein in no way affects the
validity or enforceability of the Employment Agreement; and in the event of revocation, to the
extent any pertinent terms of this Agreement reiterate or confirm the terms of the Employment
Agreement, the Employment Agreement shall govern.

          25. Entire Agreement. When read in conjunction with the Employment Agreement, this
Agreement constitutes the entire Agreement between the parties relating to EMPLOYEE’s separation
from and release of employment-related claims against THE COMPANY, and it shall not be modified
except in writing signed by the party to be bound. In the event of any conflict between this
Agreement and the Employment Agreement, this Agreement shall control.

          26. Severability. If a court finds any provision of this Agreement invalid or
unenforceable as applied to any circumstance, the remainder of this Agreement and the application
of such provision shall be interpreted so as best to effect the intent of the parties hereto. The
parties further agree to replace any such void or unenforceable provision of this Agreement with a
valid and enforceable provision that will achieve, to the extent possible, the economic, business,
or other purposes of the void or unenforceable provision.

          27. Governing Law and Jurisdiction. EMPLOYEE and THE COMPANY agree that the governing
law and jurisdiction sections of the Employment Agreement (Sections 5.6 and 5.11) apply to this
Agreement and the Employment Agreement.

          28. Survival of Terms. EMPLOYEE understands and agrees that the terms set out in this
Agreement, including the confidentiality, non-compete and non-solicitation provisions, shall
survive the signing of this Agreement and the receipt of benefits thereunder.

          29. Construction. The terms and language of this Agreement are the result of arm’s
length negotiations between both parties hereto and their attorneys. Consequently, there shall be
no presumption that any ambiguity in this Agreement should be resolved in favor of one party and
against another. Any controversy concerning the construction of this Agreement shall be decided
neutrally without regard to authorship.

          30. Copies. This Agreement may be executed in counterparts, and each counterpart,
when executed, shall have the efficacy of a signed original.

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     EMPLOYEE AGREES THAT: (1) HE HAS FULLY READ THIS AGREEMENT; (2) HE HAS TAKEN THE TIME
NECESSARY TO REVIEW COMPLETELY AND FULLY UNDERSTAND THIS AGREEMENT; AND (3) HE FULLY UNDERSTANDS
THIS AGREEMENT, ACCEPTS IT, AGREES TO IT, AND AGREES THAT IT IS FULLY BINDING UPON HIM FOR ALL
PURPOSES.

	 	 	 	 	 
	 	EMPLOYEE

 	 
	 	/s/ Shankar Harihan
 	 
	 	SHANKAR HARIHARAN 	 
	 	 	 
	 

Sworn and
subscribed before me this

29 day of November, 2006

/s/ Merrye E. Siegel

Notary Public

Merrye E. Siegel

Notary Public of State of New York

No. 4900619

Qualified in Suffolk County

Commission Expires 08-09-2009

	 	 	 	 	 
	 	PAR PHARMACEUTICAL COMPANIES, INC.

 	 
	 	/s/ Patrick G. LePore
 	 
	 	By: 	Patrick G. LePore 
	 	  	President and C.E.O. 	 
	 
	 	PAR PHARMACEUTICAL, INC.

 	 
	 	/s/ Gerard A. Martino
 	 
	 	By: 	Gerard A. Martino 
	 	  	Executive Vice President and Chief Financial Officer 	 
	 

9Exhibit 10.1 to Image Sensing Systems, Inc. Form 8-K dated December 14, 2006

EXHIBIT 10.1

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT
(“Agreement”) is made by and between Image Sensing Systems, Inc., and its subsidiaries and divisions (collectively,
“ISS”) and Kenneth Raymond Aubrey (“Aubrey”) on this date, December 12, 2006 (“Effective Date”),
effective on or about January 15, 2007, or later (in the capacity of President), and effective June 1, 2007, or later (in the
capacity of President / CEO).

 

	
             
 	
            RECITALS:
 

 

A.           ISS wishes to hire Aubrey to serve as its President / CEO, and Aubrey wishes to serve in that capacity.

B.           ISS and Aubrey have negotiated the terms of Aubrey’s employment as President / CEO and have memorialized those terms in this Agreement. 

	
             
 	
            C.
 	
            ISS and Aubrey mutually agree to the terms set forth in this Agreement.
 

AGREEMENT:

1.            Employment. Aubrey will be an at-will employee, and his employment may be terminated by either party at any time, with or without cause. Aubrey will begin to work for ISS as ISS’s President on or about January 15, 2007, or as soon thereafter as is reasonably possible in keeping with the notice period requirements of Aubrey’s employment contract with his current employer, but in no event later than  February 28, 2007. Aubrey’s first day of actual employment with ISS (sometime during the time period from January 15, 2007, to February 28, 2007) will be considered Aubrey’s “Start Date” for purposes of this Agreement. Additionally, Aubrey specifically commits and agrees to proactively use all reasonable good faith efforts to
negotiate with his present employer to reduce the notice period to the fewest number of days acceptable to his present employer. Also, Aubrey will relocate to Minnesota; and he will commence employment as ISS’s President / CEO on June 1, 2007 (after the appointment is announced at a shareholders’ meeting). The parties understand, however, that Aubrey’s transition from President to President / CEO may have to be adjusted, depending on his actual Start Date.

 

The parties understand and agree that ISS will have the right (but not the obligation) to rescind this Agreement in full should Aubrey be unable or unwilling to commence his employment with ISS on or before March 31, 2007. 

2.            Duties. Aubrey will devote his full professional time, attention and efforts to the business and affairs of ISS during his employment with ISS and Aubrey agrees that, to the best of his ability and experience, and at all times, he will conscientiously perform the duties and obligations assigned to him. 

 

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3.        Compensation. 

	
             
 	
            (a)
 	
            Salary. As of Aubrey’s Start Date (per Paragraph 1, above):  Aubrey’s base salary will be $175,000 per year, less all required withholdings and deductions, payable in accordance with ISS’s standard payroll procedures. As of June 1, 2007, or the date that Aubrey otherwise transitions from President to President / CEO, whichever is later:  Aubrey’s base salary shall be $200,000. 
 

 

Aubrey’s performance will be evaluated by the Board on an annual basis. 

 

	
             
 	
            (b)
 	
            Incentive Plan. Within the first 30 days of his employment with ISS, ISS will provide Aubrey with an incentive plan, the content of which is currently being formulated and which may be adjusted from year to year. When completed (and, subsequently, whenever amended), that Incentive Plan will be incorporated into this Agreement by reference. The parties further understand and agree that the 2007 incentive plan will need to be pro-rated, depending on Aubrey’s actual Start Date.
 

 

	
             
 	
            (c)
 	
            Stock Options Grant. At the time Aubrey begins his employment on or about January 15, 2007, he will be awarded a stock option grant of 50,000 shares under ISS’s stock option plan. Such options will vest at the rate of 25% at each of the four anniversaries following Aubrey’s date of hire. Pursuant to ISS’s stock option plan, such options may be exercised within six years after the date of the grant (on or about January 15, 2007). Also pursuant to ISS’s stock option plan, vested options must be exercised within 90 days of termination from employment, for whatever reason. Unvested options will vest immediately upon a Change in Control and must be exercised within 90 days.
 

 

For purposes of this Agreement, “Change In Control” shall mean any of the following:  (i) a public announcement that any person has acquired or has the right to acquire beneficial ownership of fifty-one percent (51%) or more of the then outstanding shares of common stock of the Corporation and, for this purpose, the terms “person” and “beneficial ownership” shall have the meanings provided in Section 13(d) of the Securities and Exchange Act; (ii) the commencement of or public announcement of an intention to make a tender or exchange offer for fifty-one percent (51%) or more of the then outstanding shares of the common stock of the Corporation; (iii) a sale of all or substantially all of the assets of the Corporation; or (iv) the Board of Directors of the Corporation, in its sole and absolute discretion, determines that there has been a sufficient change in the
stock ownership of the Corporation to constitute a change in control of the Corporation.

 

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            (d)
 	
Employee
Benefits. Aubrey will be entitled to insurance and other benefits in accordance with ISS’s standard
and executive benefits in effect from time to time. These benefits include several elections that must be made by Aubrey.
Planbooks, Summary Plan Descriptions, and Plan Legal Documents containing formal descriptions of all available benefits will be
provided to Aubrey. ISS is entitled to change, modify, or discontinue such benefits at its sole discretion.
 

 

	
             
 	
            (e)
 	
            Vacation. Aubrey is entitled to up to 3 weeks of vacation each year.
 

 

4.           Reimbursement of Reasonable Travel and Business Expenses. ISS will, in accordance with its policies in effect from time to time, reimburse Aubrey for all reasonable business expenses incurred by Aubrey in connection with the performance of his duties under this Agreement, upon submission of the necessary documentation required pursuant to ISS’s standard policies and record keeping procedures. Aubrey also agrees that he will adhere to ISS’s current travel policy.

5.            Reimbursement for Reasonable Relocation Expenses. ISS will reimburse Aubrey for reasonable relocation expenses associated with the actual cost of transportation of his personal belongings to Minnesota, up to $15,000 (with the ability to exceed this amount by up to 20% by agreement with ISS). Similarly, during the 90-day period following Aubrey’s commencement of employment with ISS, ISS will reimburse Aubrey for his travel, accommodation and other associated expenses to Minnesota (after that, Aubrey is expected to have relocated to Minnesota). Such travel, accommodation and other associated expenses will be reimbursed in accordance with ISS’s current travel policy.

6.            Confidentiality, Noncompetition and Invention Assignment. Aubrey expressly agrees to the terms set forth in Appendix A, which the parties understand and acknowledge to be vital part of this Agreement. 

	
             
 	
            7.
 	
            Severance upon Termination of Employment.
 

	
             
 	
            (a)
 	
            Voluntary Termination. Should Aubrey terminate his employment for any reason, ISS shall pay Aubrey all earned and unpaid amounts due to him for salary through the termination date and a pro-rata portion of any incentive pay to which, at ISS’s discretion, Aubrey would have been paid, had he remained in ISS’s employ.
 

 

	
             
 	
            (b)
 	
            Termination by ISS “With Cause.”  Should ISS terminate Aubrey’s employment for any of the following reasons, Aubrey shall not be entitled to any severance:
 

 

	
             
 	
            (i)
 	
            Conviction of, or a plea of “guilty” or “no contest” to, a felony under the laws of the United States or any state thereof or conviction of, or a plea of “guilty” or “no contest” to, any act involving moral turpitude;
 

 

	
             
 	
            (ii)
 	
            Breach of fiduciary duty involving personal profit;
 

 

3 

	
             
 	
            (iii)
 	
            Willful and material misconduct in the performance of duties assigned to Aubrey;
 

 

	
             
 	
            (iv)
 	
            Consistent failure to perform the reasonable stated duties assigned to Aubrey under this Agreement; or
 

 

	
             
 	
            (v)
 	
            Illegal or unethical business practices, including but not limited to the commission of fraud, misappropriation or embezzlement in connection with ISS’s business.
 

 

Aubrey shall have thirty (30) days to cure any alleged breach, failure, or misconduct under Subsections (iii) and (iv), above, after ISS provides Aubrey written notice of the actions or omissions constituting such breach, failure, or misconduct.

 

	
             
 	
            (c)
 	
            Termination by ISS “Without Cause.”  Should ISS terminate Aubrey’s employment for any reason other than (1) those reasons set forth in subparagraph (b) above, or (2) because of Aubrey’s inability to perform his duties because of death or disability, Aubrey shall be entitled to severance in the form described below, which includes continuation of his base salary, without eligibility for bonus, upon entry into a release agreement provided by ISS (in a form substantially similar to that set forth at Appendix B to this Agreement), for the period of time described below:
 

 

If Aubrey is terminated without
cause within the first year of his employment (and upon his execution of a release agreement substantially similar to that set
forth at Appendix B), Aubrey will be entitled to the benefits described in the preceding paragraph for the following
periods of time:

 

	
            Termination Date

 
 	
            Months of Salary Continuation
 
	
            January 15 – February 15, 2007 
 	
            24 months
 
	
            February 16 – March 15, 2007 
 	
            23 months
 
	
            March 16 – April 15, 2007 
 	
            22 months
 
	
            April 16 – May 15, 2007
 	
            21 months
 
	
            May 16 – June 15, 2007 
 	
            20 months
 
	
            June 16 – July 15, 2007 
 	
            19 months
 
	
            July 16 – August 15, 2007 
 	
            18 months
 
	
            August 16 – September 15, 2007 
 	
            17 months
 
	
            September 16 – October 15, 2007 
 	
            16 months
 
	
            October 16 – November 15, 2007 
 	
            15 months
 
	
            November 16 – December 15, 2007 
 	
            14 months
 
	
            December 16, 2007 – January 15, 2008 
 	
            13 months
 

 

If Aubrey is terminated without
cause after January 15, 2008 (and upon his execution of a release agreement substantially similar to that set forth at
Appendix B), Aubrey will be entitled to 12 months of salary continuation.

4 

ISS and Aubrey have the ability, however, at any time, to terminate this Agreement by mutual written agreement, with or without the severance benefit.

 

	
             
 	
            8.
 	
            Miscellaneous.
 

	
             
 	
            (a)
 	
            Notices. Any and all notices permitted or required to be given under this Agreement must be in writing. Notices will be deemed given (1) when personally received or when sent by facsimile transmission (to the receiving party’s facsimile number), (2) on the first business day after having been sent by commercial overnight courier with written verification of receipt, or (3) on the third business day after having been sent by registered or certified mail from a location on the United States mainland, return receipt requested, postage prepaid, whichever occurs first, at the address set forth below or at any new address, notice of which will have been given in accordance with this Paragraph:
 

	
             
 	
            If to ISS:  
 	
            Jim Murdakes
 

	
             
 	
            1600 University Ave. W., Suite 500
 

	
             
 	
            St. Paul, MN 55104
 

	
             
 	
            (or other address as is notified in writing from time
 

to time by ISS to Aubrey by return receipt  requested, postage prepaid post)

 

	
             
 	
            If to Aubrey:  
 	
            Ken Aubrey
 

	
             
 	
            Nymphenburgerstrasse 19
 

	
             
 	
            Munich, Germany 80335
 

(or other address as is notified in writing from time to time by Aubrey to ISS by return receipt requested, postage prepaid post)

 

	
             
 	
            (b)
 	
            Amendments. This Agreement may not be changed or modified in whole or in part except by a writing signed by ISS and Aubrey.
 

	
             
 	
            (c)
 	
            Governing Law. This Agreement will be governed by and interpreted according to the laws of the State of Minnesota. 
 

	
             
 	
            (d)
 	
            No Waiver. The failure of either party to insist on strict compliance with any of the terms of this Agreement in any instance or instances will not be deemed to be a waiver of any term of this Agreement or of that party’s right to require strict compliance with the terms of this Agreement in any other instance.
 

 

5 

	
             
 	
            (e)
 	
            Severability. Aubrey and ISS recognize that the limitations contained in this Agreement are reasonably and properly required for the adequate protection of the interests of ISS. If for any reason a court of competent jurisdiction or binding arbitration proceeding finds any provision of this Agreement, or the application of any part of this Agreement, to be unenforceable, the remaining provisions of this Agreement will be interpreted so as best to reasonably effect the intent of the parties. The parties further agree that the court or arbitrator shall replace any such invalid or unenforceable provisions with valid and enforceable provisions designed to achieve, to the extent possible, the business purposes and intent of such unenforceable provisions.
 

	
             
 	
            (j)
 	
            Entire Agreement. This Agreement (including its Appendices), which consists of two (2) identical originals (except that they are numbered respectively “Original # 1” and “Original # 2”), constitutes the entire understanding and agreement of the parties hereto with respect to the subject matter of this Agreement and supersedes all prior and contemporaneous agreements or understandings, inducements or conditions, express or implied, written or oral, between the parties with respect to the subject matter of this Agreement. 
 

This Agreement is made and effective as of the Effective Date above.

Image Sensing Systems, Inc. 

	By:    	/s/   James Murdakes 	    	/s/   Kenneth Raymond Aubrey 
	Its:    	President/CEO 	    	Kenneth Raymond Aubrey 

6 

APPENDIX A  

TO THE EMPLOYMENT AGREEMENT BETWEEN 

IMAGE SENSING SYSTEMS, INC., AND KENNETH AUBREY

CONFIDENTIALITY, NONCOMPETITION AND 

INVENTION ASSIGNMENT AGREEMENT

This CONFIDENTIALITY, NONCOMPETITION, AND INVENTION ASSIGNMENT AGREEMENT (“Agreement”) between Image Sensing Systems, Inc. (“ISS”), and Kenneth Raymond Aubrey (“Employee”) is signed and dated on 12 December, 2006. 

As an express condition of Employee’s employment with ISS, for his/her receipt of ISS benefits, and other valuable consideration, and in exchange for other premises and mutual promises contained in this Agreement, ISS and Employee agree as follows:

	
             
 	
            1.
 	
            Confidential and Proprietary Information.
 

 

 (a)                 Employee understands and agrees that, during the course of his/her employment with ISS, he/she will receive proprietary, confidential, and trade secret information – all of which has special value to and constitutes a unique asset of ISS (collectively referred to in this Agreement as “Confidential & Proprietary Information”). Employee agrees that he/she will not disclose such Confidential & Proprietary Information during the period of his/her employment or after the termination of his/her employment for any reason whatsoever and that he/she will not use or share the same with any person, firm, or corporation without first obtaining ISS’s written consent.

 

 (b)                 For these purposes, “Confidential and Proprietary Information” includes, but is not limited to, confidential information relating to ISS’s business, products and services, customers, or vendors; trade secrets, data, specifications, developments, inventions, patents, patent materials, copyrightable subject matter and ideas, processes, know-how, designs, computer systems, and research activity; marketing and sales strategies, marketing and product plans, information, pricing strategies, and techniques; long and short term business plans; existing and prospective client, vendor, and employee lists, contacts, and information; financial and personnel information; any information and/or applications relating to ISS’s internal
information systems; and any other information concerning the business of ISS which is not disclosed to the general public or known in the industry, except for disclosure necessary in the course of Employee’s duties or with the express written consent of ISS. All Confidential and Proprietary Information, including all copies, notes regarding, correspondence and/or electronic communications regarding, and replications of such Confidential and Proprietary Information will remain the sole property of ISS and must be returned to ISS immediately upon termination of Employee’s employment.

 

 (c)                 Employee acknowledges that ISS’s Confidential and Proprietary Information constitutes a unique and valuable asset of ISS and represents a substantial investment of time and expense by ISS, and that any disclosure or use of such knowledge or information other than for the sole benefit of ISS would be wrongful and would cause irreparable harm to ISS. 

 

 (d)                 The foregoing obligations of confidentiality do not apply to any knowledge or information that is now published or which subsequently becomes generally publicly known in the form in which it was obtained from ISS, other than as a direct or indirect result of the breach of this Agreement by Employee.

 

2.          Return of Company Property. Upon termination of employment with ISS for whatever reason, or at any other time at the request of ISS, Employee will deliver to a designated Company representative all records, documents, hardware, software, and all other Company property and all copies of such Company property in Employee’s possession. Employee acknowledges and agrees that all such materials are the sole property of ISS and that he/she will certify in writing to ISS at the time of delivery that he/she has complied with this obligation.

 

3.           Noncompetition Covenant. ISS and Employee agree that, due to Employee’s position with ISS, Employee will have access to ISS’s Confidential and Proprietary Information and has developed and will continue to develop certain goodwill and relationships on behalf of ISS. Employee acknowledges that ISS will only release its Confidential and Proprietary Information, and will only permit Employee to continue to generate this goodwill and these relationships, upon the receipt of assurances that Employee will not use the information, goodwill, or relationships to ISS’s disadvantage and, accordingly, agrees to the following provisions:

 

(a)          Agreement Not to Compete. During the term of his/her employment with ISS, and for a period of twelve (12) months after the termination of such employment for any reason, Employee will not, directly or indirectly, serve as an employee, agent, consultant, director, stockholder or owner, or render services to any Conflicting Organization. Employee also will not direct any other individual or business enterprise to engage in such competition with ISS. For the purposes of this Agreement, “Conflicting Organization” shall be defined as video detection hardware and software for traffic management application, including, but not limited to, intersection control, highway monitoring, tunnel monitoring, and incident
management. Specific companies considered “Conflicting Organization(s)” include, but are not limited to, Citilog, Traficon, Iteris, Quixote, or other similar companies who enter this marketplace or who have express plans to enter this marketplace.

 

(b)          Nonsolicitation of Customers or Suppliers. During the term of his/her employment with ISS, and for a period of twelve (12) months after the termination of such employment for any reason, Employee agrees that he/she will not, directly or indirectly, divert, solicit, approach, contact, call upon, accept business from, or sell or render services to any client/customer or prospective client/customer of ISS who was solicited or serviced directly by Employee at any time during the twelve (12) months prior to his/her termination from employment, or where he/she supervised, directly or indirectly, in whole or in part, the solicitation or service activities related to such clients or prospects during the same twelve-month
period. Employee also will not, directly or indirectly, aid or assist any other person, firm, or corporation in doing what he/she himself cannot do under the terms of this Agreement. Employee will not in any way interfere or attempt to interfere with ISS’s relationships with any of its actual or potential customers, suppliers, or subcontractors.

 

2

(c)          Nonsolicitation of Employees. Employee recognizes that ISS’s work force constitutes an important and vital aspect of its business. During the term of his/her employment with ISS, and for a period of twelve (12) months after the termination of such employment for any reason, Employee will not, directly or indirectly, hire, solicit, employ, or attempt to employ, any employee or director of ISS, or otherwise directly or indirectly interfere with or disrupt relationships, contractual or otherwise, between ISS and any of its employees, directors, or consultants.

(d)          Acknowledgment. Employee agrees that the restrictions and agreements contained in this Agreement (and particularly in this Paragraph 3) are reasonable and necessary to protect the legitimate interests of ISS, and that any violation of this Agreement will cause substantial and irreparable harm to ISS that would not be quantifiable and for which no adequate remedy would exist at law. Employee further acknowledges that he/she has had the opportunity to request that legal counsel review this Agreement and, having exhausted such right, agrees to the terms herein without reservation. Accordingly, Employee authorizes the issuance of injunctive relief by any court of appropriate jurisdiction, without the requirement of posting bond, for any violation of this Agreement, and
agrees that ISS shall be entitled to the recovery of reasonable attorneys’ fees incurred in the enforcement of this Agreement.

4.           Assignment of Inventions. Employee agrees to promptly disclose to ISS inventions, ideas, processes, writings, designs, developments and improvements, whether or not protectable under the applicable patent, trademark or copyright statutes, which Employee makes, conceives, reduces to practice, or learns during his/her employment by ISS, either alone or jointly with others, relating to any business in which ISS is or may be concerned (“Inventions”). Such disclosures will be made by Employee to ISS in a written report, setting forth in detail the structures, procedures and methodology employed and the results achieved.

 (a)         To the extent that any Invention qualifies as “work made for hire” as defined in 17 U.S.C. § 101 (1976), as amended, such Invention will be the exclusive property of ISS. Moreover, Employee agrees to treat every work or idea created or acquired by or on behalf of Employee for ISS as a “work made for hire.”  It is the intent of both Employee and ISS that ISS have unrestricted ownership in all of such works and to any derivative works thereof, without further compensation of any kind to Employee or to those with whom Employee may work. 

 (b)         Consistent with and to the extent permitted by law, Employee hereby assigns and agrees to assign to ISS all rights in and to these Inventions, including, but not limited to, applications for United States and foreign patents and resulting patents and to further cooperate with ISS in maintaining, obtaining, and protecting such proprietary rights. Employee shall execute all applications, assignments and other papers necessary to enable ISS to obtain full protection and title to such matter and inventions, and Employee hereby waives any claim of moral right that Employee may have in or in connection with any such work.

 (c)         Employee
further acknowledges that he/she received notice from ISS that his/her obligation to assign rights in and to any Inventions does
not apply to an Invention for which no equipment, supplies, facility or trade secret information of ISS was used and which was
developed entirely on Employee’s own time, and (1) which does not relate (A) directly to the business of ISS or (B) to
ISS’s actual or demonstrably anticipated research or development, or (2) which does not result from any work performed by
Employee for ISS.

3 

 (d)         Employee has attached a complete list of all existing patentable or non-patentable inventions, original works of authorship, derivative works, trade secrets, trademarks, copyrights, service marks, discoveries, patents, technology, algorithms, computer software, application programming interfaces, protocols, formulas, compositions, ideas, designs, processes, techniques, know-how, data, and all improvements thereto to which Employee claims ownership as of the date of this Agreement and which Employee desires to clarify are not subject to this Agreement (“Excluded Inventions”). If no such list is attached to this Agreement, Employee represents that he/she has no such Excluded inventions at the time of signing this Agreement.

 (e)         Employee further agrees that prior to separation from employment with ISS for any reason, he/she will disclose to ISS, in a written report, all Inventions, the rights to which he/she has agreed to assign to ISS under (a) and (b) above, and which he/she has not previously disclosed.

 (f)          In the event of any dispute concerning whether an Invention made or conceived by Employee is the property of ISS, such Invention will be presumed to be the property of ISS, and Employee will bear the burden of establishing otherwise in any arbitration, litigation, or similar proceeding.

5.           Injunctive Relief. Because the Confidential and Proprietary Information described above and the products derived therefrom are unique, peculiar and of great value to ISS, ISS shall be entitled to injunctive relief to restrain Employee from violating or threatening to violate any provisions contained herein. The parties also agree that, because of the unique nature of their relationship and the information and products to which Employee has been exposed through this relationship, ISS shall be entitled to an injunction to be issued by any Court of competent jurisdiction enjoining and restraining Employee from committing any violation of this Agreement, and Employee hereby consents to the issuance of such injunction. Proceedings may be initiated against
Employee or Employee’s legal representatives or assigns. ISS shall be entitled to its reasonable costs and attorneys’ fees incurred in enforcing this provision.

	
             
 	
            6.
 	
            Miscellaneous.
 

(a)         At-will Employment. Nothing in this Agreement creates any rights of employment. Employee is, and remains, an “at-will” employee. 

 (b)         Severability. It is further agreed and understood by the parties that if any part, term or provision of this Agreement should be unenforceable, invalid, or illegal under any applicable law or rule, the offending term or provision will be struck and the remaining provisions of the Agreement will not be affected or impaired thereby. 

 (c)         Assignability. The terms, conditions, and covenants of this Agreement shall be assignable to the successors and assigns of ISS. 

4 

 (d)         Waiver. Failure of ISS at any time to enforce any provision of this Agreement shall not be interpreted as a waiver of any provision of ISS’s rights under this Agreement.

 (e)         Entire Agreement. This Agreement contains the entire understanding between the parties hereto with respect to the subject matter hereof and supersedes any prior understandings, agreements or representations, written or oral, relating to such subject matter. 

 (f)          Modification, Amendment, Waiver or Termination. No provision of this Agreement may be modified, amended, waived or terminated except by an instrument in writing signed by the parties to this Agreement. No delay or waiver, express or implied, by ISS of any right or any breach by Employee shall constitute a waiver of any other right or breach by Employee.

 (g)         Governing Law. This Agreement will be governed by and interpreted according to the substantive laws of the State of Minnesota without regard to such state’s conflicts law. 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date memorialized in the first paragraph.

 

	 	Image Sensing Systems, Inc. 
	 
	By:    	/s/   Kenneth Raymond Aubrey 	    	By:    	/s/   James Murdakes 

	    	   	    	Its:    	President/CEO 

5 

APPENDIX B 

TO THE EMPLOYMENT AGREEMENT BETWEEN 

IMAGE SENSING SYSTEMS, INC., AND KENNETH AUBREY

 

WHEREAS, the parties entered into an Employment Agreement which became effective in January 2007; and

 

WHEREAS, in order to receive certain severance payments and related benefits under Paragraph 7 of that Employment Agreement, the parties agreed that Aubrey would be required to sign a release of claims at the time of the event contemplated by that Paragraph; and

 

WHEREAS, the parties have agreed to a form of release substantially similar to that set forth in this Appendix B; and

 

WHEREAS, under the terms of this Appendix B, Aubrey agrees to release all claims – whether known or unknown – that he may have against ISS, or any of its respective officers, directors, members, managers, employees or agents, parents or affiliates, through the date of his signature on this Appendix B; 

 

NOW, THEREFORE, it is mutually agreed by and between the parties for good and valuable consideration as follows:

 

A.         Aubrey affirms that he is signing this Appendix B on or after the termination of his employment, as described in Paragraph 7 of the Agreement.

 

B.         Aubrey, for good and valuable consideration, does hereby fully and completely release and waive any and all claims, complaints, causes of action, demands, suits, and damages, of any kind or character, which he has or may have against ISS, or any of its respective officers, directors, members, managers, employees or agents, parents or affiliates arising out of any acts, omissions, conduct, decisions, behavior, or events occurring up through the date of his signature on this Appendix B.

 

Aubrey understands that he is giving up any and all claims (whether now known or unknown) that he may have including (without limitation) claims relating to his employment with ISS, and the cessation of his employment with ISS, including, but not limited to, any claims arising under or based upon the Minnesota Human Rights Act; Title VII of the Civil Rights Act of 1964, as amended; the Americans With Disabilities Act (“ADA”); the Family & Medical Leave Act (“FMLA”); the Age Discrimination in Employment Act (“ADEA”); or any other federal, state, or local statute, ordinance, or law. Aubrey also understands that he is giving up all other claims, including those grounded in contract or tort theories, including but not limited to breach of contract; tortious interference with contractual relations; promissory estoppel; breach of manuals or other policies;
assault; battery; fraud; false imprisonment; invasion of privacy; intentional or negligent misrepresentation; defamation, including libel, slander, defamation and self-publication defamation; intentional or negligent infliction of emotional distress; sexual harassment; or any other theory.

 

Aubrey further understands that he is releasing, and does hereby release, any claims for damages, by charge or otherwise, whether brought by him or on his behalf by any other party, governmental or otherwise, and agrees not to institute any claims for damages via administrative or legal proceedings against ISS, or any of its respective officers, directors, members, managers, employees or agents, parents or affiliates. Aubrey understands that, while he retains his right to bring an administrative charge with the Equal Employment Opportunity Commission or the Minnesota Department of Human Rights, he waives and releases any and all rights to money damages or other legal relief awarded by any governmental agency related to any charge or claim. 

 

C.          Aubrey understands that he has the right to seek legal counsel before entering into this Appendix B and that he has 21 days from the date of his termination to execute this Appendix B. 

 

D.         Aubrey understands that he may revoke this release (Appendix B) (1) with respect to potential age-related claims within the seven-day period following the date he signs it and (2) with respect to potential claims under the Minnesota Human Rights Act within the fifteen-day period following the date he signs it. Aubrey also understands that, if he does revoke this release (Appendix B), he gives up any right to the consideration provided to him the benefits described in Paragraph 7 of the Employment Agreement.

 

E.          Aubrey acknowledges that he has read this Appendix B, that he understands it, and that he enters into Appendix B voluntarily.

 

 

	
            Dated:   
 	
               
 	
               
 	
            By:   
 	
               
 
	
             
 	
               
 	
               
 	
               
 	
            Kenneth Aubrey
 

 

 

 

 

2

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