Document:

Exhibit
10.27

First
Amendment to Employment Agreement

This FIRST AMENDMENT TO
EMPLOYMENT AGREEMENT (the “First Amendment”), dated March 31, 2005, amends the
original Employment Agreement entered into by and between HemaCare Corporation
(the “Company”) and Joshua Levy, M.D. (the “Employee”) on March 31, 2000.

Agreement

All terms and conditions
of the Employment Agreement shall remain unchanged except as follows:

1.                                       Compensation

Paragraph 3.1 shall
remain the same except base salary shall be $225,000 per annum.

2.                                       Incentive
Compensation

Paragraph 3.2 shall be
deleted in its entirety and replaced with:

Employee
shall participate in a bonus program up to 30% of base salary for achieving
specific goals, determined by the Chief Executive Officer. The bonus structure
will put 100% of Employee bonus at risk. Bonuses will be paid annually in
March. Upon execution of this First Amendment, Employee shall receive a
one-time $20,000 bonus payment separate from the bonus previously described.

3.                                       Fringe
Benefits

(a)   Paragraph 3.3 shall be deleted in its
entirety and replaced with:

Employee
shall be eligible for all fringe benefits as stated in the HemaCare Corporation
Personnel Manual, as modified from time to time, except for items specifically
identified below, and those which are from time to time provided to other
employees of the Company holding senior executive positions.

(b)   Paragraph 3.3.1 shall be deleted in its
entirety and replaced with:

1.               Paid
Time Off (“PTO”): 24 days plus accrued PTO as of March 31, 2005. Vacation and
sick days are no longer provided by the Company. Frozen sick balance, available
for absences due to illness, shall also roll forward.

 1
 

2.               Health/Dental
insurance as available to all HemaCare staff in California.

3.               Long-term
disability insurance equal to two-thirds of an annual amount of $200,000,
pursuant to the terms of such insurance policy, provided that such insurance is
commercially available at reasonable terms.

4.               Term
life insurance in the amount of $1,000,000, provided that such insurance is
available on commercially reasonable terms.

5.               Participation
in the Company’s 401(k) Plan.

6.               Car
allowance at $1,000 per month.

In Witness Whereof,
the parties intending to be legally bound, have executed this First Amendment
to Employment Agreement.

	
  HemaCare Corporation

  	
  Employee:

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Judi Irving

  	
   

  	
  /s/ Joshua Levy
  4/13/05

  	
   

  
	
  Name: Judi
  Irving

  	
  Joshua Levy,
  M.D.

  
	
  Title: President
  and CEO

  	
   

  
					

 

 2Exhibit 10.1.4

Exhibit A

SCHEDULE OF PARTNERS,

ALLOCATION OF PARTNERSHIP UNITS, PERCENTAGE INTERESTS

AND THE AGREED UPON VALUE OF NON-CASH INTERCOMPANY ADVANCES

	
  Date Admitted

  	
   

  	
   

  	
   

  	
  Name and address of partners

  	
   

  	
  Value of

  non-cash

  intercompany

  advance

  	
   

  	
  Partnership

  units issued

  	
   

  	
  Approx.

  Percentage

  Interests

  	
   

  	
  Federal ID #

  	
   

  
	
  02/04/1997

  	
   

  	
  GTA
  LP, Inc. 14 North 

  Adger’s Wharf Charleston, 

  SC 29401

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  7,302,479

  	
   

  	
   

  	
   

  	
  99.31

  	
  %

  	
   

  	
  58-2290326

  	
   

  
	
  02/04/1997

  	
   

  	
  GTA
  GP, Inc. 14 North 

  Adger’s Wharf Charleston, 

  SC 29401

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  14,684

  	
   

  	
   

  	
   

  	
  0.20

  	
  %

  	
   

  	
  58-2290217

  	
   

  
	
  Total Common OP
  Units

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7,317,163

  	
   

  	
   

  	
   

  	
  100.00

  	
  %

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GTA LP, Inc. 10
  North 

  Adger’s Wharf Charleston, 

  SC 29401

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
   

  	
  800,000

  	
   

  	
   

  	
   

  	
  100

  	
  %Exhibit
10.24

 

EMPLOYMENT AGREEMENT (this “Agreement”),
dated as of September 30, 2004 (the “Effective Date”), between AMERICAN
CAPITAL ACCESS SERVICE CORPORATION, a Delaware corporation (“Service”),
ACA CAPITAL HOLDINGS, INC., a Delaware corporation (“Holdings”), ACA
FINANCIAL GUARANTY CORPORATION, a Maryland corporation (“Financial,”
and, together with Holdings and Service, the “Company”) and JOSEPH
PIMBLEY (the “Executive”).

Pursuant to that certain
Management Service Agreement, dated September 24, 1997, Service provides a
broad range of administrative and business services to Financial.  Financial is in the business of providing
financial guaranty insurance and specialized surety products.

Service desires to employ
the Executive and Financial and Holdings desire to lease from Service the
Executive’s services as an officer and employee, and the Executive desires to
accept such employment.

Accordingly, in
consideration of the premises and mutual covenants contained herein and for
other good and valuable consideration, the receipt and adequacy of which are
mutually acknowledged, the Company and the Executive agree as follows:

1.             Definitions. 
For purposes of this Agreement, the following terms shall have the
following meanings:

(a)           “Affiliate” of a Person means
a Person that directly or indirectly through one or more intermediaries
controls, is controlled by or is under common control with, the Person
specified.  Unless the context otherwise
requires, the term “control” (including the terms “controlling,” “controlled by”
and “under common control with”) means the possession, direct or indirect, of
the power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by contract, or
otherwise.

(b)           “Base Salary” means the salary
provided for in Section 4 or any increased salary granted to the
Executive pursuant to Section 4.

(c)           “Board” means the Board of
Directors of Holdings, as constituted from time to time.

(d)           “Cause” means the Executive:

(i)            is convicted of, or pleads nolo
contendere (or similar plea) to, a felony or a crime involving moral turpitude;

(ii)           performs an action or fails to take
an action that constitutes willful dishonesty, larceny, fraud or gross
negligence by the Executive in the performance of the Executive’s duties to the
Company, or makes a knowing or reckless misrepresentation (including by
omission of any material adverse information) to shareholders, directors or
officers of the

 

Company, which in the case of gross negligence only, is material and
adverse to the Company or its business or its reputation;

 

(iii)          engages in independently verified
(determined by a qualified medical or mental health professional), continuing
and unremedied for a period of at least six (6) months, substance abuse
involving drugs or alcohol;

(iv)          willfully and repeatedly fails, after
thirty (30) business days notice, to materially follow the material written
policies of the Company or lawful instructions of the Board; or

(v)           materially breaches this Agreement or
any written policy, rule or regulation adopted by the Company or any of its
Subsidiaries relating to compliance with securities laws or other laws, rules
or regulations and such breach is not cured by the Executive or waived in writing
by the Company within thirty (30) days after written notice of such breach to
the Executive.

No act, or failure to
act, on Executive’s part shall be considered “willful” unless done, or omitted
to be done, without good faith and without reasonable belief that the action or
omission was in the best interest of the Company.

(e)           “Change of Control” means the
occurrence of any of the following events after the Effective Date:

(i)            any Person (other than any Person
that is a stockholder of Holdings as of the Effective Date, or other than a trustee or other fiduciary holding securities under an
employee benefit plan of Holdings, or a corporation owned directly or
indirectly by the stockholders of Holdings in substantially the same
proportions as their ownerships of stock of Holdings) becomes the beneficial
owner, directly or indirectly, of securities of Holdings representing more than
fifty percent (50%) of the combined voting power of Holdings’ then outstanding
voting securities; or

(ii)           during any period of two (2)
consecutive years (not including any period prior to the Effective Date),
individuals who at the beginning of such period constitute the Board (and any
new director, whose election by Holdings’ stockholders was approved by a vote
of at least two-thirds (2/3) of the directors then still in office who
either were directors at the beginning of the period or whose election or
nomination for election was so approved), cease for any reason to constitute a
majority thereof; or

(iii)          any Person (other than any Person that
is a stockholder of Holdings as of the Effective Date, or other than a trustee or other fiduciary holding securities under an
employee benefit plan of Holdings, or a corporation owned directly or
indirectly by the stockholders of Holdings in substantially the same
proportions as their ownerships of stock of Holdings) is or becomes able to
elect a majority of the members of the Board; or

(iv)          a closing or completion, as
applicable, of (i) the sale or
disposition of all or substantially all of Holdings’ assets or (ii) a merger,
consolidation, or reorganization of Holdings with or involving any other
corporation, other than a merger,

 2
 

 

consolidation, or reorganization that would result
in the voting securities of Holdings outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) at least fifty percent (50%) of
the combined voting power of the voting securities of Holdings (or such
surviving entity) outstanding immediately after such merger, consolidation, or
reorganization.

 

However,
in no event shall a “Change of Control” be deemed to have occurred, with
respect to the Executive, if Executive is part of a purchasing group that
consummates the Change of Control transaction. 
Executive shall be deemed “part of a purchasing group” for purposes of
the preceding sentence if the Executive is an equity participant in the
purchasing Person (except for: (i) passive ownership of less than three percent
(3%) of the stock of the purchasing company; or (ii) ownership of an equity
interest in the purchasing company or group that is otherwise not significant,
as determined prior to the Change of Control by a majority of the non-employee
continuing directors of Holdings).

(f)            “Claim” means any claim,
demand, request, investigation, dispute, controversy, threat, discovery
request, or request for testimony or information.

(g)           “Common Stock” means Common
Stock, par value $0.10 per share, of Holdings.

(h)           “Constructive Termination”
means a termination by the Executive of his employment with the Company on written notice given to the Company within thirty
(30) days following the date on which he learns of the occurrence, without his
prior written consent, of any of the following events, if the Company shall
have failed to cure such event within thirty (30) days following receipt of
written notice from the Executive of a request to cure such event:

(i)            a reduction in his then current Base
Salary or in his current bonus level pursuant to the Company’s bonus plan;

(ii)           a material breach of the Company’s
obligations under this Agreement;

(iii)          the termination of, or a
reduction in, any material employee benefit or perquisite enjoyed by him (other
than as part of an across-the-board reduction applying to all
executive officers of the Company which has been approved by the Board or the
Compensation Committee thereof (the “Compensation Committee”));

(iv)          a material change in the Executive’s
positions, titles or responsibilities with the Company (other than as a
result of a promotion) as set forth in Section 3 of this Agreement,
or any action by the Company which results in a material diminution in the
authority of Executive, excluding for this purpose, changes to the individuals,
groups, positions, or divisions which report to the Executive or, if
applicable, the Executive’s removal as a member of the Board or as a member of
any board of directors of any Subsidiary of the Company.  For the avoidance of doubt, a change in the
Person to whom the Executive reports shall not be deemed a Constructive
Termination hereunder;

 3
 

 

(v)           the
relocation of the Executive’s principal office to a location outside of
Manhattan, New York without his consent;

 

(vi)          the
failure of the Company to obtain the assumption in writing of its obligation to
fully perform this Agreement by any successor to all or substantially all of
the assets of the Company within 15 days after a merger, consolidation, sale,
or similar transaction; or

(vii)         a material breach by the Company of any
or all of the representations made by the Company in Section 12(a).

(i)            “Disability” means the
Executive’s inability, due to physical or mental incapacity, to substantially
perform his duties and responsibilities under this Agreement for a period of 90
consecutive days or any 180 days out of 365 consecutive days as determined by
an approved medical doctor.  For this
purpose, an “approved medical doctor” means a medical doctor mutually selected
by the Executive and the Company.  If the
Executive and the Company cannot agree
on a medical doctor, each Party shall select a medical doctor and the two
doctors shall select a third who shall be the approved medical doctor for this
purpose.

(j)            “Parties” means the Company and the Executive.

(k)           “Person” means any
individual, corporation, partnership, limited liability company, joint venture,
trust, estate, board, committee, agency, body, employee benefit plan,
association, joint stock company, unincorporated organization or governmental
entity or any department, agency or political subdivision thereof or other
person or entity.

(l)            “Proceeding” means any
threatened or actual action, suit, or proceeding, at law or in equity, whether
civil, criminal, administrative, investigative, appellate, or other.

(m)          “Pro-Rata Annual Incentive
Award” means an amount equal to the product obtained by multiplying (i) the
Executive’s target annual incentive award set forth in Section 5 for the
year during which his employment hereunder terminates (with such award deemed to
be no less than the greater of (x) the target annual incentive award for such
year pursuant to Section 5 or (y) the actual annual incentive award of
the Executive in the prior year of employment hereunder) times (ii) a fraction,
the numerator of which is the number of days on which the Executive was
employed by the Company during such year and the denominator of which is 365.

(n)           “Subsidiary” means, with
respect to any Person, any corporation, limited liability company, partnership,
association or other business entity of which (i) if a corporation, a majority
of the total voting power of shares of stock entitled (without regard to the
occurrence of any contingency) to vote in the election of directors, managers
or trustees thereof is at the time owned or controlled, directly or indirectly,
by that Person or one or more of the other Subsidiaries of that Person or a
combination thereof, or (ii) if a limited liability company, partnership,
association or other business entity, a majority of the limited liability
company, partnership or other similar ownership interest thereof is at the time
owned or controlled, directly or indirectly, by any Person or one or more
Subsidiaries of that Person or a combination thereof.

 4
 

 

For purposes hereof, a
Person or Persons shall be deemed to have a majority ownership interest in a
limited liability company, partnership, association or other business entity if
such Person or Persons shall be allocated a majority of limited liability
company, partnership, association or other business entity gains or losses or
shall be or control any managing director or general partner of such limited
liability company, partnership, association or other business entity.

 

(o)           “Termination Date” means the
date on which the Executive’s employment hereunder terminates for any reason.

(p)           “Voting Stock” means issued
and outstanding capital stock or other securities of any class or classes
having general voting power, under
ordinary circumstances in the absence of contingencies, to elect, in the case
of a corporation, the directors of such corporation and, in the case of any
other entity, the corresponding governing Person(s).

2.             Term of Employment.  The Company agrees to employ the Executive
under this Agreement, and the Executive accepts such employment, for the Term
of Employment.  The Term of Employment
shall commence on the Effective Date and shall end on the third anniversary thereof.  On the third
anniversary of the Effective Date, and on every successive one year
anniversary thereafter, the Term of Employment shall automatically be renewed
on the same terms and conditions set forth herein as modified from time to time
by the Parties for additional one-year periods, unless either Party gives the other Party written notice
of the election not to renew the Term of Employment at least 60 days’ prior to
any such renewal date, whereupon the Executive’s employment shall terminate on
the anniversary date under the terms of this Agreement.  For the avoidance of doubt, in no event shall
such non-renewal by the Company of the Term of Employment be deemed a
termination by the Company of the Executive’s employment hereunder.  Notwithstanding the foregoing, the Term of
Employment may be earlier terminated in accordance with the provisions set
forth in Section 8.

3.             Positions, Duties, and
Responsibilities.

(a)
During the Term of Employment, the Executive shall be employed as the Executive
Vice President — Institutional Risk Management
of each of Holdings, Service, and Financial, and shall perform such normal duties,
responsibilities, functions and authority and exercise such powers as are
incident to such offices.  The Executive, in carrying out his executive
duties under this Agreement, shall report to the Chief Executive Officer of
such companies and shall devote his best efforts and his full business
time and attention (except for permitted vacation periods and reasonable
periods of illness or other incapacity) to the business and affairs of the
Company.  The Executive shall perform his
duties and responsibilities to the Company hereunder to the best of his
abilities in a diligent, trustworthy, professional and efficient manner and
shall comply with the Company’s policies and procedures in all material
respects.

(b)           Notwithstanding anything herein to
the contrary, nothing shall preclude the Executive from (i) serving on the
boards of directors of a reasonable number of other corporations or the boards
of a reasonable number of trade associations and/or charitable organizations
(provided that in each such case the Executive shall give the Board at least 10

 5
 

 

business days’ advance written notice of the
Executive’s intention to serve on any such board and, if the Board reasonably
objects thereto, the Executive agrees not to serve on such board), (ii)
engaging in charitable activities and community affairs, including political
activities, and (iii) managing his personal investments and affairs, provided
that such activities do not materially interfere with the proper performance of
his duties and responsibilities as the Executive Vice President  — Institutional Risk Management of each of Holdings, Service, and Financial.

 

4.             Base Salary.  Commencing as of the Effective Date, the
Executive shall be paid an annualized Base Salary of $275,000 per annum, or such higher rate as the Compensation
Committee may determine from time to time (as adjusted from time to time, the “Base
Salary”). 
The Base Salary shall be payable at intervals in accordance with the
regular payroll practices of the Company applicable to senior executives but no
less frequently than monthly.  The Base
Salary shall be reviewed no less frequently than annually during the Term of
Employment for increases.  Without the
Executive’s written consent, the Base Salary shall not be decreased at any
time, or for any purpose, during the Term of Employment (including, without
limitation, for the purpose of determining benefits due under Section 9).

5.             Annual Incentive Awards.  The Executive shall be eligible for an annual
incentive bonus award from the Company in respect of each fiscal year ending
during the Term of Employment.  The
Executive’s target annual incentive bonus amount for each such year shall be an
amount equal to one hundred percent
(100%) of his annualized Base Salary for such year, and his actual bonus amount for each such year shall be determined based on
criteria determined by the Chief Executive Officer of the Company and approved
by the Compensation Committee in its sole discretion, and communicated to the
Executive no later than 30 days after the beginning of the fiscal year; provided,
however, that the Executive’s minimum annual incentive bonus award for
fiscal year 2004 shall be no less than $250,000.  The Executive shall receive his annual
incentive award payment in respect of any fiscal year no later than the 60th day
following the end of the preceding fiscal year.

6.             Other Benefits.

(a)           Employee Benefits.  During the Term of Employment, the Executive
shall be entitled to participate in all employee benefit plans, programs and
arrangements made available generally to the Company’s senior executives or to
its employees, including, without limitation or guarantee, profit-sharing,
savings (qualified and non-qualified) and other defined contribution retirement plans or programs, medical, dental, hospitalization,
vision, short-term and long-term disability and life insurance
plans or programs, accidental death and dismemberment protection, travel
accident insurance, and any other employee welfare benefit plans or programs
that may be made available by the Company from time to time, including any
plans or programs that supplement the above-listed types of plans or
programs, whether funded or unfunded; provided, however, that
nothing in this Agreement shall be construed to require the Company to
establish, maintain or retain any such plans, programs, or arrangements, except
for family medical, dental, and hospitalization insurance providing coverage,
at no cost to the Executive, which shall be required benefit plans for the
Executive.

 6
 

 

(b)           Perquisites. 
During the Term of Employment, the Executive shall be entitled to
participate in all fringe benefits and perquisites made generally available to
senior executives of the Company, in each case, at levels, and on terms and
conditions, that are commensurate with his positions and responsibilities at
the Company.  The Executive shall also
receive such additional fringe benefits and perquisites as the Compensation
Committee may, in its discretion, from time to time provide.

 

(c)           Vacation.  During the Term of Employment, the Executive
shall be entitled to vacation in accordance with the Company’s vacation
policies in effect from time to time.

7.             Reimbursement of Business and
Other Expenses.

(a)           The Executive shall be authorized to
incur reasonable business expenses in carrying out his duties and
responsibilities under this Agreement which are consistent with the Company’s
policies in effect from time to time with respect to travel, entertainment and
other business expenses, and the Company shall promptly reimburse him for all
such expenses, subject to his satisfaction of Company requirements with respect
to reporting and documentation of such expenses.

(b)           All amounts payable to the Executive
as compensation hereunder shall be subject to all required and customary withholding
by the Company.

8.             Termination of Employment.

(a)           Termination Due to Death.  In the event that the Executive’s employment hereunder is terminated due to
his death, his estate or his beneficiaries (as
the case may be) shall be entitled to the following:

(i)            payment of the Base Salary
through the date of his death and for an additional 90 days thereafter;

(ii)           a Pro-Rata Annual
Incentive Award for the year in which his death occurs, payable in a lump sum
promptly after the date of his death in due course with such payments made to
other executives of the Company following the end of the Company’s fiscal year;

(iii)          a lump-sum payment promptly after his
death in respect of all accrued but unused vacation days at his Base Salary
rate in effect on the Termination Date, payment of any other amounts earned,
accrued and owing to the Executive but not yet paid and receipt of other vested
benefits in accordance with applicable plans and programs of the Company (the “Standard
Benefit”); and

(iv)          payment of COBRA premiums for the
entire period of eligibility for the Executive’s eligible dependents and
continued participation for one year for each of the Executive’s dependents in
all other employee welfare benefit plans, programs, and arrangements in which
such dependent was participating as of the date of the Executive’s death, on
terms and conditions no less favorable than those applying on such date.

 7
 

 

(b)           Termination Due to Disability.  In the event that the Executive’s employment
hereunder is terminated due to Disability, he shall be entitled to the
following:

 

(i)            continuation of Base Salary
until commencement of long-term disability payments;

(ii)           a Pro-Rata Annual Incentive
Award for the year in which his employment terminates, payable in a lump sum in
due course with such payments made to other executives of the Company following
the end of the Company’s fiscal year;

(iii)          the Standard Benefit; and

(iv)          payment of COBRA premiums for the
entire period of eligibility for the Executive and eligible dependents and participation
for one year for the Executive and each of his dependents in all Company life
insurance coverage and in all other Company employee welfare benefit plans, programs, and arrangements.

No
termination of the Executive’s employment for Disability shall be effective
unless the Company first gives 15 days’ written notice of such termination to
the Executive.

(c)           Termination by the Company for
Cause.

(i)            No termination of the Executive’s
employment hereunder by the Company for Cause shall be effective unless the
provisions of this Section 8(c)(i) shall have been fully complied
with.  Prior to any termination by the
Company for Cause, the Executive shall be given written notice by the Board of
the intention to terminate him, such notice (A) to state in reasonable detail
the circumstances that constitute the grounds on which the proposed termination
for Cause is based and (B) to be given no later than 180 days after the Board
first learns of such circumstances.  The
Executive shall have 15 days after receiving such notice in which to cure such
grounds, to the extent such cure is possible.

(ii)           In the event that the Executive’s
employment hereunder is terminated by the Company for Cause in accordance with Section
8(c)(i), he shall be entitled to the following:

(A)          payment of the Base Salary through the
Termination Date; and

(B)           the Standard Benefit.

(d)           Termination Without Cause;
Constructive Termination of the Executive. 
In the event that the Executive’s employment hereunder is terminated by
the Company, other than due to Disability in accordance with Section 8(b)
or for Cause in accordance with Section 8(c)(i),
or in the event of the Executive’s termination of his employment as a result of
a Constructive Termination, the Executive shall be entitled to:

(i)            payment of the Base Salary
through the Termination Date;

 8
 

 

(ii)           the Standard Benefit; and

 

(iii)          upon
execution and delivery of the General Release substantially in the form and
substance as set forth in Exhibit A attached hereto (the “General
Release”) and such General Release having become effective:

(1)           a Pro-Rata Annual Incentive
Award for the year in which the Executive was terminated, payable in a lump sum
promptly following the Termination Date;

(2)           payment of severance in an amount
equal to one year of the Executive’s annual Base Salary as of the Termination
Date, which severance payment shall be payable on a “salary continuation basis”
in regular installments in accordance with the general payroll practices of the
Company (in effect from time to time) or, at the Company’s option, in one lump
sum payment; and

(3)           payment of COBRA premiums for the
entire period of eligibility for the Executive and eligible dependents and
continued participation for the Executive and each of his dependents in all
Company life insurance coverage and all other Company welfare benefit plans,
programs, and arrangements until the earlier of (x) one year from the
Termination Date or (y) the date the Executive receives equivalent coverage and
benefits from a subsequent employer.

(e)           Voluntary Termination.  In the event that the Executive terminates
his employment with the Company on his
own initiative, other than by death, for Disability or by a Constructive
Termination, he shall have the same entitlements hereunder as provided in Section
8(c)(ii) in the case of a termination by the Company for Cause.  A voluntary termination under this Section
8(e) shall be effective upon written notice to the Company and shall not be
deemed a breach of this Agreement.

(f)            Benefit Plans.  In the event that the Executive, or any of
his dependents, is precluded from continuing full participation in any employee
benefit plan, program, or arrangement as provided in Sections 8(a)(iv), 8(b)(iv),
or 8(d)(iii)(3), the Executive shall be provided with the after-tax
economic equivalent of any benefit or coverage foregone.  For this purpose, the economic equivalent of
any benefit or coverage foregone shall be deemed to be the total cost to the
Executive or any of his dependents of obtaining such benefit or coverage by
himself on an individual basis.  Payment
of such after-tax economic equivalent shall be made quarterly in advance,
without discount.

(g)           No Mitigation; Offset.  In the event of any termination of the
Executive’s employment with the Company, the Executive shall be under no
obligation to seek other employment or otherwise mitigate the obligations of the Company under this Agreement.  The Company may offset against amounts due
the Executive under this Agreement on account of (A) any claim that the Company
or any of its shareholders or Affiliates may have against him or (B) any
remuneration or other benefit earned or received by the Executive after such
termination except as specifically
provided in Section 8(d)(iii)(3).

9.             Change of Control.  In the event that a Change of Control
occurs during the Term of Employment, then (i) all Company stock options issued
to the Executive prior to the date

 9
 

 

hereof shall thereupon become fully vested and nonforfeitable; and (ii)
the Executive shall have the continued right to exercise each outstanding
vested stock option, including, without limitation, any portion of the
Executive’s stock options vesting prior to or upon such Change of Control, to
the extent permitted by the applicable plan or, if more favorable to the
Executive, grant document.  In the event
that holders of Common Stock receive cash, securities, or other property in
respect of their Common Stock in connection with a Change of Control
transaction, the Company shall enable the Executive (if he so elects) to
exercise any stock option at a time and in a
fashion that will entitle him to receive in exchange for any shares thus
acquired, the same consideration as is received in such Change of Control
transaction by other holders of Common Stock.

 

10.           Indemnification.

(a)           The Company agrees that (i) if the
Executive is made a party, or is threatened to be made a party, to any
Proceeding by reason of the fact that he is or was a director, officer,
employee, agent, manager, consultant, or representative of the Company or is or
was serving at the request of the Company or any of its Affiliates as a
director, officer, member, employee, agent, manager, consultant, or
representative of another Person or (ii) if any Claim is made, or threatened to
be made, that arises out of or relates to the Executive’s service in any of the
foregoing capacities, then the Executive shall promptly be indemnified and held
harmless by the Company to the fullest extent legally permitted or authorized
by Holdings’ Certificate of Incorporation, Bylaws or Board resolutions, against
any and all costs, expenses, liabilities, and losses (including, without
limitation, attorney’s fees, judgments, interest, expenses of investigation,
penalties, fines, ERISA excise taxes or penalties, and amounts paid or to be
paid in settlement) incurred or suffered by the Executive in connection
therewith, and such indemnification shall continue as to the Executive even if
he has ceased to be a director, member, employee, agent, manager, consultant or
representative of the Company or other Person and shall inure to the benefit of
the Executive’s heirs, executors, and administrators.  The Company shall advance to the Executive
all costs and expenses incurred by him in connection with any such Proceeding
or Claim within 15 days after receiving written notice requesting such an
advance.  Such notice shall include an
undertaking by the Executive to repay the amount advanced if he is ultimately
determined not to be entitled to indemnification against such costs and expenses.  For the avoidance of doubt, notwithstanding
anything to the contrary contained herein, the Executive shall not be entitled
to indemnification hereunder if any Proceeding or Claim is initiated by the
Executive without the prior written consent of the Company, or if the Executive
fails timely to notify the Company of his being made (or being threatened to be
made) a party to any such Proceeding contemplated by this Section 10(a)
and the Company is materially prejudiced by the Executive’s failure to so
notify it.

(b)           Neither the failure of the Company
(including the Board, independent legal counsel, or stockholders) to have made
a determination in connection with any request for indemnification or
advancement under Section 10(a) that the Executive has satisfied any
applicable standard of conduct nor a determination by the Company (including
the Board, independent legal counsel, or stockholders) that the Executive has
not met any applicable standard of conduct, shall create a presumption that the
Executive has not met an applicable standard of conduct.

 10
 

 

(c)           During the Term of Employment and for a period of six
years thereafter, the Company shall keep in place a directors and officers’
liability insurance policy (or policies) providing comprehensive coverage to
the Executive equal to at least the greater of (i) $5,000,000 per year and
(ii) the coverage that the Company provides for any other present or former
senior executive or director of the Company.

 

(d)           The Company shall be entitled
to deduct or withhold from any amounts owing from the Company to the Executive
any federal, state, local or foreign withholding taxes, excise tax, or
employment taxes (“Taxes”) imposed with respect to the Executive’s
compensation or other payments from the Company or the Executive’s ownership
interest in the Company (including, without limitation, wages, bonuses,
dividends, the receipt or exercise of equity options and/or the receipt or
vesting of restricted equity).  In the
event the Company elects, at the Executive’s request, to not make such
deductions or withholdings, the Executive shall indemnify the Company for any
amounts paid with respect to any such Taxes, together with any interest,
penalties and related expenses thereto.

11.           Assignability; Binding Nature.

(a)           This Agreement shall be binding upon
and inure to the benefit of the Parties and their respective successors, heirs
(in the case of the Executive), and assigns.

(b)           No rights or obligations of the
Company under this Agreement may be assigned or transferred by the Company
except that such rights or obligations may be assigned or transferred pursuant
to a merger or consolidation in which the Company is not the continuing entity,
or a sale or liquidation of all or substantially all of the assets and
business of the Company; provided, that the assignee or transferee is
the successor to all or substantially all of the assets and business of the
Company and such assignee or transferee assumes the liabilities, obligations,
and duties of the Company, as contained in this Agreement, either contractually
or as a matter of law.  In the event of
any sale of assets and business or liquidation as described in the preceding
sentence, the Company shall use its commercially reasonable efforts to cause
such assignee or transferee to expressly assume the liabilities, obligations
and duties of the Company hereunder.

(c)           No
rights or obligations of the Executive under this Agreement may be assigned or
transferred by the Executive other than his rights to compensation and
benefits, which may be transferred only by will or operation of applicable law,
except as provided in Section 18(f).

12.           Representations.

(a)           Holdings, Service and Financial,
jointly and severally, represent and warrant that:

(i)            Holdings, Service and Financial are
duly authorized to enter into this
Agreement and to perform their respective obligations hereunder and, upon the
execution and delivery of this Agreement by the Parties, this Agreement shall
be the valid and binding obligation of
Holdings, Service and Financial, enforceable against Holdings, Service and
Financial in accordance with its terms;

 11
 

 

(ii)           Holdings, Service and Financial are corporations, each
duly organized, validly existing and in good standing under the laws of the
States of Delaware and Maryland, as applicable, and each having full corporate
power and authority to conduct its business as such businesses are presently
conducted; and

 

(iii)          The execution and delivery by each
of Holdings, Service, and Financial of this Agreement and the consummation of
the transactions contemplated hereby will not result in the violation of any
law, statute, rule, regulation, order, writ, injunction, judgment, or decree of
any court or governmental authority to or by which Holdings, Service, or
Financial is bound, or of any provision of the Certificate of Incorporation or
Bylaws of Holdings, Service or Financial, and will not conflict with, or result
in a breach or violation of, any of the terms or provisions of, or constitute (with
due notice or lapse of time or both) a default under, any agreement,
instrument, or document to which Holdings, Service or Financial is a party or
by which it is bound or to which any of its properties or assets is subject,
nor result in the creation or imposition of any lien upon any of the properties
or assets of Holdings, Service or Financial.

(b)           The Executive hereby
acknowledges, represents and warrants to the Company that:

(i)            the execution, delivery and
performance of this Agreement by the Executive do not and shall not conflict
with, breach, violate or cause a default under any contract, agreement,
instrument, order, judgment or decree to which the Executive is a party or by
which he is bound;

(ii)           the Executive is not a party to or
bound by any undisclosed employment agreement, non-compete agreement or
confidentiality agreement with any other Person;

(iii)          upon the execution and delivery of
this Agreement by the Company, this Agreement shall be the valid and binding
obligation of the Executive, enforceable in accordance with its terms; and

(iv)          the Executive has had ample
opportunity to consult with independent legal counsel regarding his rights and
obligations under this Agreement, has so consulted to the extent desired by the
Executive in his sole discretion, and fully understands the terms and
conditions contained herein.

13.           Covenant Not to Compete;
Confidentiality; Intellectual Property, Inventions and Patents.

(a)           Covenant Not to Compete.

(i)            In further consideration of
the compensation to be paid to the Executive hereunder, the Executive
acknowledges that during the course of his employment with the Company he shall
become familiar with the Company’s and its Subsidiaries’ trade secrets and with
other Confidential Information concerning the Company and its Subsidiaries and
that his services shall be of special, unique and extraordinary value to the
Company, and therefore,

 12
 

 

the Executive agrees that during the
Term of Employment and for a period of twelve (12) months thereafter (the “Noncompete Period”), the
Executive shall not directly or indirectly (whether as an employee, consultant,
investor, independent contractor, or director):

 

(A)          engage, enter into or attempt to enter into, or manage, control, participate in,
consult with, render services for, or be employed by, a Restricted Business (as
defined below) that directly or indirectly competes with the Company or any of
its Subsidiaries in the United States or other jurisdictions in which the
Company or any of its Subsidiaries conducts or is developing business or has
demonstrable plans to conduct business; provided, however, that
this clause (A) shall not apply following the expiration of the Term of
Employment as a result of a notice from the Company or the Executive pursuant
to Section 2; provided, further, that nothing herein shall
prohibit the Executive from being a passive owner of not more than five percent
(5%) of the outstanding stock of any class of a corporation that is publicly
traded, so long as the Executive has no active participation in the business of
such corporation; or

(B)           (i) induce
or attempt to persuade any former or then-current employee, agent, manager,
consultant, director, customer, counterparty or other business relationship of
the Company or any of its Subsidiaries to terminate such employment or other
relationship (including, without limitation, by making any negative or
disparaging statements or communications regarding the Company or any of its
Subsidiaries) or (ii) hire any Person
who was an employee of the Company or any of its Subsidiaries within the 12
month period prior to the Termination Date.

(ii)           For
the purposes of this Section 13, a “Restricted Business” shall
mean a financial guaranty insurance, specialized surety, credit
derivative and/or structured finance business, whether existing or to be formed
and without regard to its claims-paying ability, or any other business which
the Company or any of its Subsidiaries conducts or is developing or considering
for development during the Term of Employment or on the Termination Date.

(iii)          The covenants of the Executive set
forth in this Section 13 shall be null and void and without any force or
effect upon the effective date of any liquidation or dissolution of the
Company, it being understood that a merger or consolidation of the Company
shall not be deemed to constitute a liquidation or dissolution of the Company.

(iv)          The covenants set forth above in this Section
13 shall be construed as a series of separate covenants, one for each
county in each of the states of the United States or country outside the United
States to which such restriction applies, subject, however, to the applicable
laws of such jurisdictions.

(v)           If, at the time of enforcement of
this Section 13, any arbitrator or court of competent jurisdiction shall
hold that the duration, scope or area restrictions stated herein are
unreasonable under circumstances then existing, the Parties agree that the
maximum duration, scope or area reasonable under such circumstances shall be
substituted for the stated duration, scope or area and that such arbitrator or
court shall be authorized to revise the restrictions contained herein to cover
the maximum period, scope and area permitted by

 13
 

 

applicable law.  The Executive
acknowledges that the restrictions contained in this Section 13 are
reasonable and necessary to the protection of legitimate Company interests.

 

(vi)          In the event of the breach or a
threatened breach by the Executive of any of the provisions of this Section
13, the Executive acknowledges and agrees that the Company would suffer
irreparable harm, and thus, in addition and supplementary to other rights and
remedies existing in its favor, the Company shall be entitled to seek and
obtain specific performance and/or injunctive or other equitable relief in
order to enforce or prevent any violations of the provisions hereof (without
posting a bond or other security).  In
addition, in the event of a breach or violation by Executive of this Section
13, the Noncompete Period shall be automatically extended by the amount of
time between the initial occurrence of the breach or violation and when such
breach or violation has been duly cured.

(b)           Confidentiality.

(i)            The Executive acknowledges
that he will develop and be exposed to non-public information that is or will
be proprietary to the Company and its Subsidiaries, including, but not limited
to, customer lists, marketing plans, pricing data, product development plans,
and other intangible information, and that the non-public information and data
(including trade secrets) obtained by him while employed by the Company
concerning the business or affairs of the Company and its Subsidiaries (“Confidential
Information”) are the property of the Company and/or one or more of its
Subsidiaries.  The Executive agrees to use such information only in
connection with the performances of his duties hereunder, to forever maintain
such information in confidence and not to disclose to any Person or use
for his own purposes any Confidential Information or any confidential or
proprietary information of other Persons in the possession of the Company (“Third
Party Information”) without the prior written consent of the Board, unless
and to the extent that the Confidential Information or Third Party Information
becomes generally known to and available for use by the public or in the
Company’s industry other than, in each case, as a result of the Executive’s
acts or omissions; provided, however, that the Executive may disclose
such information when required to by law or subpoena from a court, government
agency or legislative body; provided  further, however,
that the Executive shall immediately notify the Company of his receipt of any
request or demand (whether through legal process or otherwise) that he provide
such disclosure, and thereafter the Executive shall cooperate fully with any
Company efforts to resist, restrict or modify any such request or demand.  The Executive shall deliver to the
Company at the Termination Date, or at any other time the Company may request,
all memoranda, notes, plans, records, reports, computer files, disks and tapes,
printouts and software and other documents and data (and all copies thereof)
embodying or relating to Third Party Information, Confidential Information,
Work Product (as defined below) or the business of the Company or any of its Subsidiaries
which he may then possess or have under his control.

(ii)           The Executive shall be prohibited in
the course performing his duties for the Company from using or disclosing any
confidential information or trade secrets that the Executive may have learned
through any prior employment.

(c)           Intellectual Property, Inventions
and Patents.  The Executive
acknowledges that all discoveries, concepts, ideas, inventions, innovations,
improvements,

 14
 

 

developments, methods, designs, analyses, drawings, reports, patent
applications, copyrightable work and mask work (whether or not including any
confidential information) and all registrations or applications related
thereto, all other proprietary information and all similar or related
information (whether or not patentable) which relate to the Company’s or any of
its Subsidiaries’ actual or anticipated business, research and development or
existing or future products or services and which are conceived, developed or
made by the Executive (whether alone or jointly with others) while employed by
the Company, whether before or after the date of this Agreement (“Work
Product”), belong to the Company and/or one or more of its
Subsidiaries.  The Executive shall
promptly disclose such Work Product to the Board and, at the Company’s expense,
perform all actions reasonably requested by the Board (whether during or after
the Term of Employment) to establish and confirm such ownership (including,
without limitation, assignments, consents, powers of attorney and other
instruments).  The Executive acknowledges
that all Work Product shall be deemed to constitute “works made for hire” under
the U.S. Copyright Act of 1976, as amended.

 

14.           Executive’s Cooperation.  During the Term of Employment and thereafter,
the Executive shall cooperate with the Company in any internal investigation,
any administrative, regulatory or judicial proceeding or any dispute with a
third party as reasonably requested by the Company (including, without
limitation, the Executive being available to the Company upon reasonable notice
for interviews and factual investigations, appearing at the Company’s request
to give testimony without requiring service of a subpoena or other legal
process, volunteering to the Company all pertinent information and turning over
to the Company all relevant documents which are or may come into the Executive’s
possession, all at times and on schedules that are reasonably consistent with
Executive’s other permitted activities and commitments).  In the event the Company requires the Executive’s
cooperation in accordance with this Section 14, the Company shall
reimburse the Executive solely for reasonable travel expenses (including
lodging and meals) upon submission of receipts. 
Notwithstanding anything to the contrary contained herein, upon
termination of the Term of Employment hereunder, the Executive shall, if
applicable, automatically be deemed to have resigned as a director of the Board
and of any board of directors (or similar governing body) of any Subsidiary of
the Company.

15.           Resolution of Disputes.  Except as specifically contemplated in this
Agreement, any Claim arising out of or relating to this Agreement, the
Executive’s employment with the Company, or the termination of such employment
shall be resolved by binding confidential arbitration, to be held in New
York, New York, in accordance with the Commercial Arbitration Rules of the
American Arbitration Association. 
Judgment upon the award rendered by the arbitrator may be entered by any
Party in any court having jurisdiction thereof.  During the resolution of any dispute under
this Section 15, each Party shall bear the cost of its own attorneys’
fees and expenses.  If the Executive
prevails in the arbitration, then the Company shall promptly pay all reasonable
costs and expenses, including, without limitation, reasonable attorneys’ fees,
incurred by the Executive or his beneficiaries in resolving any such
Claim.  If the Company prevails in the
arbitration, then the arbitrator shall determine the allocation of the costs
and expenses of the arbitration, including the arbitrator’s fee and both
Parties’ attorneys’ fees and expenses, based upon the extent to which each
Party prevailed in the arbitration.  In
the event that any relief which is awarded is non-monetary, then such
costs and expenses shall be allocated in any manner as may be determined by the
arbitrator.

 15
 

 

16.           Notices.  Any
notice, consent, demand, request, or other communication given to a Person in
connection with this Agreement shall be in writing and shall be deemed to have
been given to such Person (a) when delivered personally to such Person,
or (b) provided that a written acknowledgment of receipt is obtained, two days
after being sent by prepaid certified or registered mail, or by a nationally
recognized overnight courier, to the address specified below for such Person
(or to such other address as such Person shall have specified by 10 days’
advance notice given in accordance with this Section 16), or (c) in the
case of the Company only, on the first
business day after it is sent by facsimile to the facsimile number set forth
for the Company (or to such other facsimile number as the Company shall have
specified by 10 days’ advance notice given in accordance with this Section
16), with a confirmatory copy sent by certified or registered mail or by
overnight courier to the Company in accordance with this Section 16.

 

If to
the Company, to:

American Capital Access Service Corporation

140 Broadway

New York, NY 10005 

Attention: General Counsel 

Telephone: (212) 375-2000 

Facsimile: (212) 375-2100

If to the Executive, to:

The Executive’s principal residence as shown in the
records of the Company,

with a copy to:

the Executive at the Company’s address.

If to a beneficiary of the Executive, to:

The address most recently specified by the
Executive or beneficiary through notice given in accordance with this Section
16.

17.           Guarantee of Obligations.  Financial and Holdings are each a beneficiary
of the services provided by Executive and hereby irrevocably and
unconditionally guarantee the performance of all obligations of Service
hereunder.

18.           Insurance.  The Company may, at its discretion, apply for
and procure in its own name and for its own benefit life and/or disability
insurance on the Executive in any amount or amounts considered advisable.  The Executive agrees to cooperate in any
medical or other examination, supply any information and execute and deliver
any applications or other instruments in writing as may be reasonably necessary
to obtain and constitute such insurance.

 16
 

 

19.           Miscellaneous.

 

(a)           Entire
Agreement.  This Agreement, including
Exhibit A hereto, represents the entire understanding and agreement
between the Parties concerning the subject matter hereof and, as of the
Effective Date, supersedes and terminates all prior agreements, understandings,
discussions, negotiations, and undertakings, whether written or oral, between
the Parties with respect thereto.

(b)           Severability.  In the event that any provision or portion of
this Agreement shall be determined to be invalid or unenforceable for any
reason, in whole or in part, the remaining provisions of this Agreement shall
be unaffected thereby and shall remain in full force and effect to the fullest
extent permitted by law so as to achieve the purposes of this Agreement.

(c)           Amendment or Waiver.  No provision in this Agreement may be amended
unless such amendment is set forth in a writing signed by the Parties.  No waiver by either Party of any breach of
any condition or provision contained in this Agreement shall be deemed a waiver
of any similar or dissimilar condition or provision at the same or any prior or
subsequent time.  To be effective, any
waiver must be set forth in a writing signed by the waiving Party.

(d)           Headings.  The headings of the Sections contained in
this Agreement are for convenience only and shall not be deemed to control or
affect the meaning or construction of any provision of this Agreement.

(e)           Beneficiaries/ References.  The Executive shall be entitled, to the
extent permitted under any applicable law, to select and change a beneficiary
or beneficiaries to receive any compensation or benefit hereunder following the
Executive’s death by giving the Company written notice thereof.  In the event of the Executive’s death or a
judicial determination of his incompetence, reference in this Agreement to the
Executive shall be deemed, where appropriate, to refer to his beneficiary,
estate, or other legal representative.

(f)            Survivorship.  Except as otherwise set forth in this
Agreement, the respective rights and obligations of the Parties hereunder shall
survive the Termination Date.

(g)           Governing Law/ Jurisdiction.  This Agreement shall be governed, construed,
performed, and enforced in accordance with the laws of the State of New York, without giving
effect to any choice of law or conflict of law rules or provisions (whether of
the State of New York or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of New York.  In furtherance of the foregoing, the internal
law of the State of New York shall control the interpretation and construction
of this Agreement (and all exhibits hereto), even though under that
jurisdiction’s choice of law or conflict of law analysis, the substantive law
of some other jurisdiction would ordinarily apply.

(h)           Counterparts.  This Agreement
may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which, when taken together, shall constitute one and the
same instrument.

 17
 

 

(i)            No
Strict Construction.  The language
used in this Agreement shall be deemed to be the language chosen by the Parties
to express their mutual intent, and no rule of strict construction shall be
applied against any Party.

 

(k)           Consent to Jurisdiction.  EACH OF THE PARTIES IRREVOCABLY SUBMITS TO
THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES DISTRICT COURT
LOCATED IN NEW YORK CITY, NEW YORK, FOR THE PURPOSES OF ANY SUIT, ACTION OR
OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT, ANY RELATED AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY OR THEREBY.  EACH OF
THE PARTIES FURTHER AGREES THAT SERVICE OF ANY PROCESS, SUMMONS, NOTICE OR
DOCUMENT BY U.S. REGISTERED MAIL TO SUCH PARTY’S RESPECTIVE ADDRESS SET FORTH
ABOVE SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY ACTION, SUIT OR PROCEEDING
IN THE STATE OF NEW YORK WITH RESPECT TO ANY MATTERS TO WHICH IT HAS SUBMITTED
TO JURISDICTION IN THIS PARAGRAPH 18(L). 
EACH OF THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION
TO THE LAYING OF VENUE OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS
AGREEMENT, ANY RELATED DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY AND
THEREBY IN ANY UNITED STATES DISTRICT COURT LOCATED IN NEW YORK CITY, NEW YORK,
AND HEREBY AND THEREBY FURTHER IRREVOCABLY AND UNCONDITIONALLY WAIVES AND
AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION, SUIT OR
PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

(l)            Waiver of Jury Trial.  AS A SPECIFICALLY BARGAINED FOR INDUCEMENT
FOR EACH OF THE PARTIES TO ENTER INTO THIS AGREEMENT, EACH PARTY EXPRESSLY
WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING TO OR
ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.

 18

 

SIGNATURE
PAGE TO

EMPLOYMENT AGREEMENT

 

IN WITNESS WHEREOF, the
undersigned have executed this Agreement as of the date first set forth above.

 

 

	
   

  	
   

  	
  AMERICAN CAPITAL ACCESS SERVICE CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ ALAN S. ROSEMAN

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ACA CAPITAL HOLDINGS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ ALAN S. ROSEMAN

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ACA FINANCIAL GUARANTY CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ ALAN S. ROSEMAN

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Joseph
  Pimbley

  
	
   

  	
   

  	
  JOSEPH PIMBLEY

  

 

Exhibit A

GENERAL RELEASE

I, JOSEPH PIMBLEY, in
consideration of and subject to the performance by AMERICAN CAPITAL ACCESS
SERVICE CORPORATION, a Delaware corporation (“Service”), ACA CAPITAL
HOLDINGS, INC., a Delaware corporation (“Holdings”), ACA FINANCIAL
GUARANTY CORPORATION, a Maryland corporation (“Financial,” and, together
with Holdings, Service and each of their respective subsidiaries, the “Company”),
of their respective obligations under the Employment Agreement, dated as of
September 30, 2004 (the “Agreement”), do hereby release and forever
discharge as of the date hereof the Company and its affiliates and all present
and former directors, officers, employees, agents, representatives, attorneys,
successors and assigns of the Company and its affiliates and the Company’s
direct or indirect owners (collectively, the “Released Parties”) to the
extent provided below.

1.                                       I
understand that any payments or benefits paid or granted to me under Section
8(d)(iii) of the Agreement represent, in part, consideration for signing this
General Release and are not salary, wages or benefits to which I was already
entitled.  I understand and agree that I
will not receive the payments and benefits specified in Section 8(d)(iii) of
the Agreement unless I execute and effectuate this General Release.  Such payments and benefits will not be
considered compensation for purposes of any employee benefit plan, program,
policy or arrangement maintained or hereafter established by the Company or its
affiliates.  I also acknowledge and
represent that I have received all payments and benefits that I am entitled to
receive (as of the date hereof) by virtue of any employment by the Company.

2.                                       Except
with respect to obligations to me under my Employment Agreement that expressly
survive the termination of my employment with the Company, I knowingly and
voluntarily (for myself, my heirs, executors, administrators and assigns)
release and forever discharge the Company and the other Released Parties from
any and all claims, suits, controversies, actions, causes of action, cross-claims,
counter-claims, demands, debts, compensatory damages, liquidated damages,
punitive or exemplary damages, other damages, claims for costs and attorneys’
fees, or liabilities of any nature whatsoever, in law and in equity, both past
and present (through the date this General Release becomes effective and
enforceable) and whether known or unknown, suspected, or claimed, against the
Company or any of the Released Parties which I, my spouse, or any of my heirs,
executors, administrators or assigns, may have, which arise out of or are
connected with my employment with, or my separation or termination from, the
Company (including, but not limited to, any allegation, claim or violation
arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil
Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as
amended (including the Older Workers Benefit Protection Act); the Equal Pay Act
of 1963, as amended; the Americans with Disabilities Act of 1990; the Family
and Medical Leave Act of 1993; the Worker Adjustment Retraining and
Notification Act; the Employee Retirement Income Security Act of 1974; any
applicable Executive Order Programs; the Fair Labor Standards Act; or their
state or local counterparts; or under any other federal, state or local civil
or human

   
 

 

rights law, or under any
other local, state, or federal law, regulation or ordinance; or under any
public policy, contract or tort, or under common law; or arising under any
policies, practices or procedures of the Company; or any claim for wrongful
discharge, breach of contract, infliction of emotional distress, defamation; or
any claim for costs, fees, or other expenses, including attorneys’ fees
incurred in these matters) (collectively, the “Claims”).

 

3.                                       I
represent that I have made no assignment or transfer of any right, claim,
demand, cause of action, or other matter covered by Section 2 above.

4.                                       In
signing this General Release, I acknowledge and intend that it shall be
effective as a bar to each and every one of the Claims hereinabove mentioned or
implied.  I expressly consent that this
General Release shall be given full force and effect according to each and all
of its express terms and provisions, including those relating to unknown and
unsuspected Claims (notwithstanding any state statute that expressly limits the
effectiveness of a general release of unknown, unsuspected and unanticipated
Claims), if any, as well as those relating to any other Claims hereinabove
mentioned or implied.  I acknowledge and
agree that this waiver is an essential and material term of this General
Release and that without such waiver the Company would not have agreed to the
terms of the Agreement.  I further agree
that in the event I should bring a Claim seeking damages against the Company,
or in the event I should seek to recover against the Company in any Claim
brought by a governmental agency on my behalf, this General Release shall serve
as a complete defense to such Claims as to my rights and entitlements.  I further agree that I am not aware of any
pending charge or complaint of the type described in Section 2 as of the
execution of this General Release.

5.                                       I
agree that neither this General Release, nor the furnishing of the
consideration for this General Release, shall be deemed or construed at any
time to be an admission by the Company, any Released Party or myself of any
improper or unlawful conduct.

6.                                       I
agree that I will (i) forfeit all amounts payable by the Company pursuant to
the Agreement and (ii) to the maximum extent permitted by applicable law,
immediately return to the Company all amounts paid by the Company pursuant to Section 8(d)(iii),
in each case, if I challenge the validity of this General Release.  I also agree that if I violate this General
Release by suing the Company or the other Released Parties, I will pay all
costs and expenses of defending against the suit incurred by the Released
Parties, including reasonable attorneys’ fees, and return all payments received
by me pursuant to the Agreement.

7.                                       I
agree that this General Release is confidential and agree not to disclose any
information regarding the terms of this General Release, except to my immediate
family and any tax, legal or other counsel I have consulted regarding the meaning
or effect hereof or as required by law, and I will instruct each of the
foregoing not to disclose the same to anyone.

8.                                       Any
non-disclosure provision in this General Release does not prohibit or
restrict me (or my attorney) from responding to any inquiry about this General
Release or its underlying

 21
 

 

facts and circumstances
by the Securities and Exchange Commission (SEC), the National Association of
Securities Dealers, Inc. (NASD), any other self-regulatory organization
or governmental entity.

 

9.                                       I
agree to reasonably cooperate with the Company in any internal investigation,
any administrative, regulatory, or judicial proceeding or any dispute with a
third party. I understand and agree that my cooperation may include, but not be
limited to, making myself available to the Company upon reasonable notice for
interviews and factual investigations; appearing at the Company’s request to
give testimony without requiring service of a subpoena or other legal process;
volunteering to the Company pertinent information; and turning over to the
Company all relevant documents which are or may come into my possession all at
times and on schedules that are reasonably consistent with my other permitted
activities and commitments.  I understand
that in the event the Company asks for my cooperation in accordance with this
provision, the Company will reimburse me solely for reasonable travel expenses,
(including lodging and meals), upon my submission of receipts.

10.                                 I
agree not to disparage the Company, its past and present investors, officers,
directors or employees or its affiliates and to keep all confidential and
proprietary information about the past or present business affairs of the
Company and its affiliates confidential unless a prior written release from the
Company is obtained.  I further represent
that as of the date hereof, I have returned to the Company any and all
property, tangible or intangible, relating to its business, which I possessed
or had control over at any time (including, but not limited to, company-provided
credit cards, building or office access cards, keys, computer equipment,
manuals, files, documents, records, software, customer data base and other
data) and that I have not retained any copies, compilations, extracts,
excerpts, summaries or other notes of any such manuals, files, documents,
records, software, customer data base or other data.

11.                                 Notwithstanding
anything in this General Release to the contrary, this General Release shall
not relinquish, diminish, or in any way affect any rights or claims arising out
of any breach by the Company or by any Released Party of the Agreement after
the date hereof.

12.                                 Whenever
possible, each provision of this General Release shall be interpreted in, such
manner as to be effective and valid under applicable law, but if any provision
of this General Release is held to be invalid, illegal or unenforceable in any
respect under any applicable law or rule in any jurisdiction, such invalidity,
illegality or unenforceability shall not affect any other provision or any
other jurisdiction, but this General Release shall be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable
provision had never been contained herein.

BY
SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT:

1.                                       I
HAVE READ IT CAREFULLY;

 22
 

 

2.                                       I
UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS,
INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT
ACT OF 1967, AS AMENDED;

 

3.                                       I
VOLUNTARILY CONSENT TO EVERYTHING IN IT;

4.                                       I
HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT, I HAVE HAD
THE OPPORTUNITY TO SO CONSULT, AND HAVE AVAILED MYSELF OF SUCH ADVICE TO THE
EXTENT I HAVE DEEMED NECESSARY TO MAKE A VOLUNTARY AND INFORMED CHOICE TO EXECUTE
THIS AGREEMENT;

5.                                       I
HAVE HAD AT LEAST [21][/][45] DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE
SUBSTANTIALLY IN ITS FINAL FORM ON __________
___, 20___ TO CONSIDER
IT AND THE CHANGES MADE SINCE THE __________
___, 20___ VERSION OF
THIS RELEASE ARE NOT MATERIAL AND WILL NOT RESTART ANY REQUIRED CONSIDERATION
PERIOD;  [This section is only required if the Executive is over the age of
40.  The 45 day period is required if at
least one other person is being terminated at the same time for the same reason,
i.e., a reduction in force.]

6.                                       I
UNDERSTAND THAT I HAVE SEVEN DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE
IT, SUCH REVOCATION TO BE RECEIVED IN WRITING BY THE COMPANY BY THE END OF THE
SEVENTH DAY AFTER THE DATE HEREOF, AND THAT THIS RELEASE SHALL NOT BECOME
EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED;  [This
section is only required if the Executive is over the age of 40.]

7.                                       I
HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE
OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND

8.                                       I
AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED,
CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED
REPRESENTATIVE OF THE COMPANY AND BY ME.

	
   NAME:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   DATE:

  	
   

  	
   

  	
   

  	
   

  

 

 23

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