Document:

ex10-1.htm

 

 

Exhibit 10.1

 

David M. Cordani

President & Chief Executive Officer

 

	  	  
	  	
900 Cottage Grove Rd

	  	
Hartford, CT  06152

 

April 27, 2011

Ralph Nicoletti

[Address]

 

Dear Ralph:

On behalf of CIGNA, I am delighted to confirm our offer of employment for the position of Executive Vice President, Chief Financial Officer reporting to me.  I am confident that you will have significant impact on our overall business direction within CIGNA.  

The rewards package we are offering to you includes:

	
·  

	
Base Salary – paid bi-weekly at a pre-tax annualized rate of $550,000.  This amount will be reviewed annually, beginning with the 2012 annual process, based on your performance and the competitive marketplace for this position. 

	
·  

	
Annual Incentive – In 2011, you will be eligible to participate in the Management Incentive Plan (MIP) with a target of $550,000.  Your 2011 bonus target will be pro-rated based on your start date in 2011.  Awards range from 0 to 200% of target based on company and individual performance.  You must be an employee on the date of payment to receive your award.  Bonuses are typically paid in the first quarter of the year following the performance period and are not considered earned until the date paid.

	
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Long-Term Incentive – currently consist of two components.  During the annual grant process, subject to Board approval, you will be considered for:

	
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Stock Options – grants are typically awarded in the first quarter of each year and may vary from 0 to 200% of target based on individual performance.  Options typically vest over a 3 year period and expire no later than 10 years after grant.  The current options target for your role is $950,000.  

	
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Strategic Performance Shares (SPS) – grants are typically awarded in the first quarter of each year and may vary from 0 to 200% of target based on individual performance.  SPS awards are typically paid or vested three years after the beginning of the performance period.  Awards are not considered earned until the date paid.   The current SPS target for your role is $950,000.

Total Direct Compensation Opportunity at target: $3,000,000

 

 

  

  

  

 

April 27, 2011

Page 2

	
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Sign-On Long-Term Incentive – Contingent upon Board Committee approval, the following long-term incentive awards with an estimated present value of $2,122,345 will be awarded to you: 

	
o  

	
$177,900 paid in 2012 (2,372 Strategic Performance Units - SPUs)* paid at formula with $75 target value per unit).

   

	
o  

	
a Strategic Performance Share (SPS) award with a grant date value $555,556; shares awarded in 2013 per the plan’s formula.

	
o  

	
a Strategic Performance Share (SPS) award with a grant date value $888,889; shares awarded in 2014 per the plan’s formula.

 

	
o  

	
a Restricted Stock Grant† with a grant date value of $250,000. The Restricted Stock Grant will vest 50% on the third anniversary of the grant, 25% on the fourth anniversary and 25% on the fifth anniversary. 

	
o  

	
an option† to purchase CIGNA Corporation common stock.  The Options will have a grant date value of $250,000.  Typically, Options become exercisable (vest) over three years at the rate of one-third per year.

Pursuant to the Company and Board Committee policy, your strategic performance share, stock option and restricted stock grant awards would be issued on the first open window day following the Board Committee approval of the grants.  The sign-on long-term incentive awards will be presented to the Board Committee depending on your start date.

	
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Sign-On Cash Bonus – You will receive a sign-on cash bonus of $50,000, less applicable withholdings.  The sign-on cash bonus will be paid within your first 30 days of employment with CIGNA. You understand and agree that should your employment be terminated (voluntarily or involuntarily) for any reason other than job elimination or change of control of the Company within one year of receipt of payment, you will reimburse CIGNA an amount equal to one-hundred (100%) percent of the sign-on cash bonus payment.  Moreover, you hereby authorize CIGNA, to the maximum extent permitted by law, to recoup the sign-on cash bonus from your final MIP payment or final paycheck.  If none or only part of the sign-on cash bonus is recouped from your final MIP payment or final paycheck, you further agree to repay the balance to CIGNA within seven (7) calendar days of the date you leave CIGNA’s employ.

	
· 

	
Relocation - You will be eligible to receive relocation assistance provided you sign a Relocation Reimbursement Agreement. As part of the Relocation Program, CIGNA will pay for Temporary Living (up to 60 days of lodging and meals and two trips home per 30 days), shipment of household goods, closing costs on the sale of your departure home and purchase of a new home, lodging and meals for one home finding trip (up to six days), transportation, lodging and meals for you and your family for the final trip, and a supplemental allowance of $3,000 less taxes.

	
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Paid Time Off (PTO) – you will be eligible for 28 days of PTO.  PTO is prorated in your first year of employment based upon your hire date. 

	
·  

	
Executive Financial Services (EFS) – The annual EFS allowance is $6,500.  This is the total amount the company will reimburse or pay on your behalf.  EFS includes financial counseling with one of the approved firms, tax preparation and will/trust preparation charges by the accounting and legal firms of your choice.  There will be a $1,000 first year fee paid to the planner on your behalf when you initially sign with one of the approved financial planners.  This is only applicable one time and will not count toward the $6,500 annual allowance in the year it is paid.  Expenses incurred by the Company, including the one time fee paid to the planners, for any use of these services will be imputed income and reported as such on your  W-2 form for any year in which it is used.

 

_____

* The Board Committee typically approves payment of SPU awards half in cash and half in unrestricted shares for executives who do not meet CIGNA’s stock ownership guidelines. The stock ownership guideline for this position is 300% of your base salary.

  

† Restricted Stock and Options are subject to the terms and conditions contained in the CIGNA Long-Term Incentive Plan and the grant materials.

 

 

  

  

  

 

April 27, 2011

Page 3

	
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Executive Travel Services – a special travel unit is available for the purpose of arranging convenient, efficient and secure travel.

The compensation program elements described here – including annual incentive and strategic performance shares – are those of our current program and may be changed or modified by the People Resources Committee (PRC) of the Board of Directors.  As an executive of the company your compensation will be subject to any future program changes. 

Drug Test - This offer of employment is subject to your passing a standard drug test.  To satisfy this requirement, you will receive an overnight package from Kristen Gorodetzer of CIGNA's Executive Compensation Department.  

To satisfy the drug test requirement, you will need to take a photo ID and the Drug Test form (which will be mailed to your home address) to the location that is supplied in the overnight package.

If this is not a convenient location, please contact Diane Ledford at 215.761.4627 for additional site locations. If your confirmed test is positive for the presence of drugs, your employment offer will be immediately rescinded and you will not be eligible to apply for employment with any CIGNA company for the following 12 months.

If you have any questions or do not receive your Drug Test Location and Form please contact Diane Ledford.

CIGNA has a mandatory alternative dispute resolution program that includes an internal grievance process and mandatory arbitration in case of employment disputes.  The program also contains class action, collective action, and representative action waiver language.  The program applies to both employees and the Company.  Your agreement to be bound by the terms and conditions of the program is a condition of this offer of employment.  

By accepting employment with the Company, you represent and warrant that your acceptance of employment with, and/or the performance of duties for, the Company will not breach any non-compete or other restrictive covenant that you may have with any other employer or party.  Please also understand that you are not to bring another’s confidential information to CIGNA or use such information in performing any work for CIGNA without first obtaining the express written consent of that party.  

Please understand that this offer is not a contract of employment.  CIGNA employees are at-will.  This means that you can resign your employment at any time and for any reason.  It also means that CIGNA can terminate your employment at any time and for any reason, with or without cause.

You will be required to complete a legally mandated I-9 form following commencement of employment.  Details about this and other forms will be provided to you on or before your first day of employment.

As an employee of a participating company, you will be able to take full advantage of CIGNA’s benefit programs.  In addition to conventional benefit programs, such as health care, 401(k) and deferred compensation, there are additional worklife benefits available to you.  

Ralph, I am excited to have you join the CIGNA organization and be a key member of our team.

Please feel free to call me if you would like to discuss any of these items.    

Sincerely,

 

David M. Cordani

DMC/del

 

 

  

  

  

 

 

April 27, 2011

Page 4

Please indicate your acceptance of our offer by signing below and returning a copy to me.

	
Acceptance:

	
/s/ Ralph Nicoletti

	 
	  	  	 
	
Date:

	
May 16, 2011

	 
	  	  	 
	
Start Date:

	
 June 20, 2011

	 

c:J. Murabito 

K. Gorodetzerex101.htm

Exhibit 10.1

 

 

NON-EXCLUSIVE

LICENSE AND DISTRIBUTION AGREEMENT

 

       Agreement ("Agreement") dated this 24th day of May 2011, by and between Plant Sorb LLC (d/b/a Sorbco), a [New York] limited liability company with a principal place of business at 226-10 Jamaica Ave., Floral Park, New York 11001 ("Sorbco") and Vanity Events Holding, Inc., a Delaware corporation with a principal place of business at 110 Front Street, Brookings, South Dakota 57006 ("Vanity")

 

WITNESSETH:

 

WHEREAS, Sorbco manufactures and distributes consumer products under the trade name "Sorbco,"; and

 

WHEREAS, Vanity desires to act as the non-exclusive distributor of the Sorbco Products in the Territory for a period of one year; and

 

WHEREAS, Sorbco is willing to grant Vanity the non-exclusive rights to purchase Sorbco Products in the Territory, and to market and sell products in the Territory; and

 

WHEREAS, Vanity is willing to accept such rights, on and subject to the terms of this Agreement;

 

WHEREFORE, the parties do hereby agree as follows:

 

1.Definitions. As used in this Agreement, the following terms shall have the meanings hereinafter set forth:

 

(a)           "Sorbco Products" shall mean the Plant Sorb, Tree Sorb and Plant Sorb for Poinsettias, and associated products developed by Sorbco, either by itself or together with one or more of its designees.

 

(b)           "Affiliate" shall mean a Person who controls, is controlled by or is under common control with, another Person, including a director or executive officer of such Person. The term control means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through ownership of voting securities, by contract or otherwise.

 

(c)           "Confidential Information" shall mean all information of a confidential nature in any form concerning the Sorbco Products.

 

(d)           "Extension Term" shall mean any monthly period following the Initial Term for which this Agreement and the License granted hereby shall continue in effect as provided in Section 9(a) of this Agreement.

 

(e)           "Initial Term" shall have the meaning set forth in Section 9(a) of this Agreement.

 

(f)           "License" shall mean the right granted pursuant to Section 2(a) of this Agreement.

 

(g)           "Person" shall include any individual, corporation, partnership, limited liability company, business trust, governmental body or agency, or any other entity.

 

(h)           "Term" shall mean the Initial Term and all Extension Terms.

 

(i)         "Territory" shall mean within the United States of America.

 

 

  

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 2.  Grant of License.

 

(a)Sorbco hereby grants Vanity the non-exclusive right and license (the "License") to:

 

(i) Market, sell, distribute and otherwise deal in commerce with Sorbco Products in the Territory through any media, whether presently existing or hereafter developed;

 

(ii) Use the Sorbco's trademark pursuant to the trademark license granted in Section 4 of this Agreement.

 

(b)In furtherance of the grant of the License:

 

(i) Vanity may, with the consent of Sorbco, establish a distribution network, within the Territory, and may sell, market or otherwise deal in commerce with, Sorbco Products through distributors.

 

(ii) Vanity may grant a sublicense of the Sorbco trademark to Vanity's distributors, with the consent of Sorbco, to the extent Vanity deems it necessary to enable its distributors to market, sell and otherwise deal in commerce with, the Sorbco Products.

 

 3.  Purchase and Sale of Sorbco Products.

 

(a) Vanity shall place purchase orders for Sorbco Products with Sorbco as they receive such orders. Sorbco will drop ship in accordance with Vanity's instructions and with product costs attached as Exhibit A to this Agreement. Sorbco shall use its reasonable commercial efforts to deliver Sorbco Products in accordance with the delivery instructions provided by Vanity by the delivery date set forth in the purchase order, and Sorbco shall promptly notify Vanity if it is unable to meet the delivery schedule set forth in Vanity's purchase order.

 

(b) All prices for Sorbco Products are FOB Floral Park, NY. Sorbco shall ship Sorbco Products in accordance with any commercially reasonable delivery and shipment terms requested by Vanity.

 

(c) Sorbco's prices and fees do not include shipping and handling costs or other fees or costs which Sorbco may be required to pay upon the delivery of the Sorbco Products.

 

(d) Sorbco shall invoice Vanity on the first of each month for all purchase orders placed for Sorbco Products. Any such invoice shall include any such additional costs incurred by Sorbco as set forth under Section 3(c)hereunder.

 

(e) Vanity shall pay any invoice provided by Sorbco in U.S. dollars, as directed by Sorbco, no later than 10 days after receipt of such invoice.

 

(f) Notwithstanding Vanity's use of its standard form of purchase order for ordering or scheduling delivery of Sorbco Products or Sorbco's use of its standard form of acceptance of a purchase order, the terms and conditions of this Agreement shall control as to a particular order unless otherwise agreed to in writing by the parties. Nothing in any such form shall be deemed or construed as amending or modifying the terms of this Agreement and, in the event of any conflict between this Agreement and any purchase or delivery order issued pursuant to this Agreement, the terms of this Agreement shall control.

 

 

 

 

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4.  Trademarks.

 

 

(a) Sorbco Products shall be marketed, distributed, sold or delivered by Vanity and its distributors and dealers only under such trade names, trademarks and trade dress as shall be designated by Sorbco.

 

(b) In connection with the use of the Sorbco name and trademark pursuant to Section 4(a) of this Agreement, Vanity shall display the trademarks only in advertising, promotional material or product label that bear the Sorbcos name and trademarks in such form and style and with such notice of registration, as may be approved by Sorbco. Sorbco will be deemed to have approved any proposed ad­vertising, promotional material or product name or label if Vanity submits specimens thereof to Sorbco for review together with complete particulars about the proposed use thereof, and Vanity provides any additional information reasonably requested by Sorbco concerning such proposed use, and Sorbco does not notify Vanity of its disapproval within ten (10) days after Vanity submits such material to Sorbco (extended as necessary to permit Sorbco the same length of time to evaluate any such additional information requested by Sorbco).

 

5.  Confidentiality.

 

(a)Vanity agrees that it will not, during or after the Term, develop, use or disclose,

 

for its own account or for, with or on behalf of others, whether as a work for hire or otherwise, any Confidential Information, subject to Section 11(e) of this Agreement.

 

(b)Information or material shall not be considered to be confidential and subject to  the restrictions contained in Section 5(a) of this Agreement if Vanity can demonstrate by documentary evidence that such information or material:

 

(i) Was in the lawful possession of Vanity without any confidentiality restrictions;

 

(ii) Is or became public knowledge other than as a result of a violation of an obligation of confidentiality;

 

(iii) Was furnished to Vanity by a Person who either (x) was not under an obligation of confidentiality to Sorbco or (y) did not, directly or indirectly, acquire or obtain such information or material from a Person who was under an obligation of confidentiality to Sorbco

 

(c)In the event that any Confidential Information is required to be produced by Vanity pursuant to legal process, Vanity shall give Sorbco notice of such legal process within a

reasonable time, but not later than ten (10) business days prior to the date such disclosure is to be made, unless Vanity has received less notice, in which event Vanity shall immediately notify Sorbco. Sorbco shall have the right to object to any such disclosure, and if Sorbco objects (at Awearable's cost and expense) in a timely manner so that Vanity is not subject to penalties for failure to make such disclosure, Vanity shall not make any disclosure until there has been a court determination on Awearable's objections.

 

(d)The provisions of this Section 5 shall survive any termination of this Agreement.

 

6.   Representations and Warranties.

 

(a) Each of Sorbco and Vanity represents and warrants that it has the full corporate power an authority to enter into and perform its obligations under this Agreement, that the execution, delivery and performance of this Agreement will not be in violation of any other agreement, commitment or understanding to which it is a party and that this Agreement constitutes the valid and binding agreement of such party enforceable in accordance with its terms.

 

(b) Sorbco has the right to grant the License to Vanity.

 

7.   LIMITATION OF LIABILITY.

 

 

(a) EXCEPT FOR THE OBLIGATIONS OF SORBCO AND VANITY WITH RESPECT TO CLAIMS BASED ON THE INFRINGEMENT AS PROVIDED IN SECTION 6 OF THIS AGREEMENT, NEITHER SORBCO NOR VANITY MAKES ANY REPRESENTATION OR WARRANTY, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE AS TO THE PERFORMANCE OF ANY SORBCOS PRODUCT, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, ALL OF WHICH ARE EXPRESSLY DISCLAIMED BY EACH PARTY AND WAIVED BY THE OTHER PARTY.

 

(b) IN NO EVENT SHALL EITHER SORBCO, VANITY OR THEIR RESPECTIVE AGENTS, SUBCONTRACTORS OR EMPLOYEES OR OF THEIR RESPECTIVE LICENSORS OR SUPPLIERS BE LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, PUNITIVE OR SPECIAL DAMAGES, INCLUDING LOSS OF PROFITS, REVENUE OR DATA OR COST OF SUBSTITUTE GOODS INCURRED BY THE OTHER PARTY OR ANY THIRD PARTY, WHETHER IN AN ACTION IN CONTRACT, BREACH OF WARRANTY OR TORT (INCLUDING NEGLIGENCE AND PRODUCT LIABILITY), EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, RESULTING FROM ANY BREACH OF THIS AGREEMENT BY SORBCO OR VANITY. THE FOREGOING LIMITATIONS SHALL APPLY REGARDLESS OF THE ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.

 

 

  

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8.   Term and Termination.

 

 

(a)This Agreement shall have an initial term (the "Initial Term") commencing on the

date of this Agreement and ending on May 31, 2011, and shall continue on a month-to-month basis thereafter unless terminated by either party on not less than thirty (30) days' notice prior to the end of the initial term or any month-to-month extension. Each monthly extension is referred to as an "Extension Term."

 

(b)Either party may terminate this Agreement by written notice to the other party if any of the following shall occur:

 

(i) If the other party fails or becomes unable to observe or perform any of its material obligations under this Agreement and such default or inability is not cured within twenty (20) days after notice of the same.

 

(ii) If the other party makes an assignment for the benefit of creditors; is adjudicated bankrupt or insolvent; petitions or applies to any tribunal for the appointment of a trustee or receiver for such party for any substantial part of its assets; commences any proceedings seeking to take advantage of any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect; consents to or approves or, by any conduct or action acquiesces in or to any such petition or application filed, or any such proceedings commenced against it by any other person; or failing to remove an order entered appointing any such trustee or receiver or approving the petition in any such proceedings or decreeing its dissolution or liquidation within ninety (90) days after such order is entered.

 

(c)Within thirty (30) days after termination of this Agreement, Vanity shall make all payments due Sorbco pursuant to this Agreement which are unpaid on the date of termination.

 

9.  Independent Contractors. In all matters relating to this Agreement, Sorbco and Vanity shall act as independent contractors, neither shall be the employee, joint venturer, partner or agent of the other, and each shall assume any and all liability for its own acts.

 

10.  Force Majeure.

 

(a) No party shall be liable for the failure to perform its obligations (other than the payment of money) pursuant to this Agreement when such failure is due to an excusable event, as hereinafter defined. Upon the happening of an excusable event, the party affected by the excusable event shall notify the other party and the affected party's obligations shall be deferred until a reasonable period of time subsequent to the excusable event.

 

(b) An "excusable event" shall include, without limitation, acts of God, strikes, lockouts or other acts of industrial disturbance, acts of public enemies, death or incapacitating illness affecting key personnel, orders of any kind of federal, state, provincial or local government or government subdivision or officials or civil or military authorities, insurrections, war, civil uprisings, riots, fire, hurricanes, tornados, storms, floods, washouts, blackouts or other power failure, droughts, restraints of governments and individuals, civil disturbances, explosions, breakages or accidents to machinery, transmission pipes or cables, partial or entire failure of utilities or communications networks, or any other cause or event not reasonably within the control of the party claiming the inability to perform.

 

11.  Notices. All notices provided for in this Agreement shall be in writing signed by the party giving such notice, and delivered personally or sent by overnight courier, mail or messenger against receipt thereof or sent by registered or certified mail (air mail if overseas), return receipt requested. Notices shall be deemed to have been received on the date of delivery or attempted delivery; provided that notice by telecopier shall only be deemed given if receipt is acknowledged or if confirmation of the telecopy is sent in another manner provided in this Section 11. Any party may, by like notice, change the address, person or telecopier number to which notice shall be sent.

 

 

  

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12.   Miscellaneous.

 

(a) This Agreement constitutes the entire agreement between the parties relating to the subject matter hereof, superseding any and all prior or contemporaneous oral and prior written agreements, understandings and letters of intent. This Agreement may not be modified or amended nor may any right be waived except by a writing which expressly refers to this Agreement, states that it is a modification, amendment or waiver and is signed by all parties with respect to a modification or amendment or the party granting the waiver with respect to a waiver. It is acknowledged by the parties to this Agreement that this Agreement is intended to be, and is, the complete and exclusive statement of the agreement with respect to its subject matter. Any waiver shall be limited to the express terms thereof and shall not be construed as a waiver of any other provisions or the same provisions at any other time or under any other circumstances. No delay or failure by any party to exercise any right under this Agreement, and no partial or single exercise of that right, shall constitute a waiver of that or any other rights.

 

(b) This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed wholly within such state

without regard to principles of conflicts of law. Each of the parties hereby (i) irrevocably consents and

agrees that any legal or equitable action or proceeding arising under or in connection with this Agreement shall be brought exclusively in any federal or state court in New York, New York, Borough of Manhattan, (ii) by execution and delivery of this Agreement, irrevocably submits to and accepts, with respect to his or its properties and assets, generally and unconditionally, the jurisdiction of the aforesaid court and (iii) agrees that any action against such party may be commenced by service of process by any method set forth in Section 11 of this Agreement other than by telecopier.

 

(c) This Agreement shall be binding upon, and inure to the benefit of, the parties hereto, and their respective successors and assigns; provided, however, that neither party may assign this Agreement or its rights or obligations under this Agreement without the prior written consent of the other party; except that Sorbco may assign this agreement in connection with a merger or a sale of substantially all of its business.

 

(d) In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision.

 

(e) Each party shall, without payment of any additional consideration by any other party, at any time on or after the execution of this Agreement take such further action and execute such other and further documents and instruments as the other party may request in order to provide the other party with the benefits of this Agreement.

 

This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same document.

 

 

  

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IN WITNESS THEREOF, the undersigned have hereunto set their hands and seals the day and date first above written.

 

	 	
PLANT SORB LLC

	 
	 	 	 	 
	
 

	
By: 

	/s/ Charles Rick 	 
	 	 	Name: Charles Rick 	 
	 	 	
Title: Managing Member

	 
	 	 	 	 

 

	 	
VANITY EVENTS HOLDING, INC.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Lloyd Lapidus 	 
	 	 	
Name: Lloyd Lapidus

	 
	 	 	
Title: Interim Chief Executive Officer

	 
	 	 	 	 

 

 

 

 

 

6

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