Document:

Exhibit 10.2

 

SABINE OIL & GAS CORPORATION 

 

SEVERANCE AND CHANGE IN CONTROL AGREEMENT

 

This Severance and Change in Control (the “Agreement”) is entered into as of January 6, 2015 (the “Effective Date”), by and between Sabine Oil & Gas Corporation (“Sabine”) and Michael Magilton (“Executive”).

 

W I T N E S S E T H:

 

WHEREAS, the Executive provides services to, and is an integral part of the management of, the Company; and

 

WHEREAS, the Executive is prepared to commit services in return for specific arrangements with respect to potential severance and change in control compensation.

 

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the Company and Executive agree as follows:

 

1.                                      Definitions. For purposes of this Agreement, the terms listed below will have the meanings specified herein:

 

(a)                                 “Accrued Payments” means (i) any unpaid Base Salary through the Date of Termination (but calculated at the rate then in effect), (ii) any incentive bonus for the calendar year ended immediately prior to the Date of Termination, to the extent yet unpaid.

 

(b)                                 “Base Salary” means the amount the Executive is entitled to receive as wages or salary on an annualized (12-month) basis, calculated as of the Date of Termination or, if greater, before any reduction not consented to by the Executive.

 

(c)                                  “Board” means the board of directors of the Company.

 

(d)                                 “Cause” shall mean: (i) the Executive’s continued failure to follow reasonable directions of the Executive’s supervisor, the Chief Executive Officer of the Company, or the Board for a period of thirty (30) days after the Company, the Executive’s supervisor, the Chief Executive Officer of the Company or the Board has provided written notice to Executive specifying such directions; provided that the foregoing failure shall not be “Cause” if Executive in good faith believes that such direction is illegal and promptly so notifies the Chief Executive Officer of the Company or the Board, (ii) intentional breaches by Executive (including breaches due to inaction) of one or more material duties of Executive or intentional failure to follow reasonable directions of the Executive’s supervisor, the Chief Executive Officer of the Company, or the Board, in any case as to which written notice has been given; provided that neither an act nor a failure to act on Executive’s part shall be considered “intentional” unless Executive has acted or failed to act with a lack of good faith and with a lack of reasonable belief that Executive’s action or failure to act was in the best interest of the Company, (iii) Executive’s conviction of, or the entering by Executive of a plea of guilty or nolo contendere to, a felony charge or a crime involving moral turpitude, (iv) Executive engaging in fraudulent activity

 

1

 

(whether or not prosecuted), (v) any misconduct by Executive that has caused or is reasonably likely to cause a material financial loss to the Company, (vi) a material violation of any provision of any agreement between Executive and the Company or an affiliate or any other agreement or code to which Executive is subject, including this Agreement and the Company’s Code of Business Conduct, (vii) receipt by Executive of any kickback, side payment, or rebate of any fee or expense paid by the Company or from any customer, vendor, or supplier of the Company, (viii) the use of illegal drugs, the persistent excessive use of alcohol, or engaging in any other activity that materially impairs Executive’s ability to perform his duties hereunder or results in conduct bringing the Company or any affiliate into substantial public disgrace or disrepute, (ix) excessive absenteeism by Executive (other than any absenteeism related to a Disability), or (x) any act of gross negligence or any dishonesty (including misreporting of financial information) by Executive to the Company or an affiliate. Determination as to whether or not Cause exists for termination of Executive’s employment will be made in good faith by the Board.

 

(e)                                  “Change in Control” means, the occurrence of one of the following occurring after the Effective Date and excluding any transactions related to or taken as a direct result of the Merger, including, but not limited to the Post-Merger Reorganization:

 

(i)                                     the consummation of an agreement to acquire or a tender offer for beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) by any “person” or “group” (within the meaning of Sections 13(d)(3) and 14(d)(2) of the Exchange Act and Treasury Regulation Section 1.409A-3(i)(5)(v)(B)) of 50% or more of either (x) the then outstanding shares of all classes of stock of the Company, including, but not limited to preferred and common shares (the “Outstanding Stock”) or (y) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”), in each case assuming all preferred shares were converted into common shares immediately prior to the transaction; provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from the Company, (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company or (D) any acquisition by any entity pursuant to a transaction that complies with clauses (A), (B) and (C) of paragraph (iii) below; or

 

(ii)                                  individuals who constitute the Incumbent Board cease for any reason to constitute at least a majority of the Board; or

 

(iii)                               consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company or an acquisition of assets of another entity (a “Business Combination”), in each case, unless, following such Business Combination, (A) the Outstanding Stock and Outstanding Company Voting Securities immediately prior to such Business Combination represent or are converted into or exchanged for securities which represent or are convertible into more than 50% of, respectively, the then outstanding shares of common stock or common equity interests and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors or other governing body, as the case

 

2

 

may be, of the entity resulting from such Business Combination (including, without limitation, an entity which as a result of such transaction owns the Company, or all or substantially all of the Company’s assets either directly or through one or more subsidiaries), (B) no person or group (excluding any employee benefit plan (or related trust) of the Company or the entity resulting from such Business Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares of common stock or common equity interests of the entity resulting from such Business Combination or the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors or other governing body of such entity to the extent that such ownership results solely from ownership of the Company that existed prior to the Business Combination, and (C) at least a majority of the members of the board of directors or similar governing body of the entity resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or

 

(iv) the complete liquidation or dissolution of the Company.

 

Notwithstanding the foregoing, with respect to any payment under this Agreement that provides for a deferral of compensation under the Nonqualified Deferred Compensation Rules and with respect to which a Change in Control would accelerate vesting or payment, “Change in Control” shall mean an event that qualifies both as a “Change in Control” as defined in this Section 1(e) as well as a “change in control event” as defined in the Nonqualified Deferred Compensation Rules.

 

(f)                                   “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

 

(g)                                  “Code” means the Internal Revenue Code of 1986, as amended, and applicable administrative guidance issued thereunder.

 

(h)                                 “Company” means (i) Sabine prior to the closing of the Post-Merger Reorganization, and (ii) New Delaware Holdco (or the same entity by a different name) following the Post-Merger Reorganization.

 

(i)                                     “Competing Business” means any person, entity, or other business concern (other than the Company or any of its Subsidiaries) that engages in the acquisition, production, exploration and development of onshore oil and natural gas properties, and of natural gas and liquids.

 

(j)                                    “Competitive Duties” means duties that are substantially similar to the duties the Executive performed (or over which the Executive had supervision) during the last twelve (12) months of the Executive’s employment with the Company (or, if the Executive is employed by the Company for less than twelve (12) months, those duties that are substantially similar to the duties the Executive had during the Executive’s employment with the Company).

 

(k)                                 “Covered Customer or Prospective Customer” means: (A) any of the Company’s or its Subsidiary’s or its affiliate’s customers or prospective customers with whom the Executive had contact (whether in person, by phone, by e-mail, or otherwise) as an employee or representative of the Company during the last twelve (12) months of the Executive’s

 

3

 

employment with the Company (or, if the Executive is employed by the Company for less than twelve (12) months, those customers or prospective customers with whom the Executive had contact during the Executive’s employment with the Company); and (B) any of the Company’s or its Subsidiary’s or its affiliate’s customers or prospective customers about whom the Executive had any Confidential Information during the last twelve (12) months of the Executive’s employment (or, if the Executive is employed by the Company for less than twelve (12) months, those customers or prospective customers about whom the Executive had any confidential information during the Executive’s employment with the Company).

 

(l)                                     “Date of Termination” means the date of receipt of the Notice of Termination or any later date specified therein, as the case may be. For all purposes of this Agreement, the Executive’s Date of Termination shall not occur prior to the date the Executive incurs a “separation from service” within the meaning of the Nonqualified Deferred Compensation Rules.

 

(m)                             “Disability” means a physical or mental impairment of sufficient severity that the Executive is unable or, in the opinion of the Board will be unable, to continue performing the duties assigned to the Executive prior to such impairment for a period in excess of 90 days, whether or not consecutive, or the Executive’s condition entitles the Executive to disability benefits under any Company insurance or employee benefit plan in which the Executive participates.

 

(n)                                 “Good Reason” means the occurrence of any of the following events or conditions: (i) a change in the Executive’s status, title, position or responsibilities (including reporting responsibilities) which represents a substantial reduction of the status, title, position or responsibilities as in effect immediately prior thereto, the assignment to the Executive of any duties or responsibilities that are inconsistent with such status, title, position or responsibilities, or any removal of the Executive from or failure to reappoint or reelect the Executive to any of such positions, except in connection with the termination of the Executive’s services for Cause, due to the Executive’s Disability or death, or by the Executive voluntarily resignation without Good Reason, (ii) a material reduction in the Executive’s annual Base Salary, (iii) a change in the geographic location at which the Executive must perform services (without the consent of the Executive) to a location more than fifty (50) miles from the location at which the Executive normally performs such services as of the Effective Date, except for reasonably required business travel that is not materially greater than such travel requirements prior to the Effective Date, (iv) any material breach by the Company of any provision of this Agreement, or (v) any purported termination of the Executive’s employment for Cause by the Company that does not otherwise comply with the terms of this Agreement. In the case of the Executive’s allegation of Good Reason, (A) the Executive shall provide notice to the Board of the event alleged to constitute Good Reason within ninety (90) days of the occurrence of such event, and (B) the Company shall have the opportunity to remedy the alleged Good Reason event within thirty (30) days from receipt of notice of such allegation.

 

(o)                                 “Historic Bonus Amount” means the average of the Executive’s actual bonus paid by the Company, Sabine Oil & Gas LLC (“Sabine LLC”), or their respective affiliates for the three years preceding the Termination Event; provided, however, if the

 

4

 

Executive has been employed less than three full years, then the Historic Bonus Payment shall be equal to the average of any annual bonuses received by the Executive (or, if only one annual bonus has been received, the amount of that bonus) from the Company, Sabine LLC, or their respective affiliates since the Executive’s employment with the Company, Sabine LLC, or their respective affiliates began; provided, further, if the Executive has not yet received an annual bonus payment from the Company, Sabine LLC, or their respective affiliates, the Historic Bonus Amount shall be equal to the Executive’s annual base salary that is effective as of the Termination Event.

 

(p)                                 “Incumbent Board” means the portion of the Board constituted of the individuals who are members of the Board as of the Effective Date and any other individual who becomes a director of the Company after the Effective Date and whose election or appointment by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least a majority of the directors then comprising the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Incumbent Board.

 

(q)                                 “LTIP” means the Sabine Oil & Gas Corporation 2014 Long Term Incentive Plan, as may be amended from time to time.

 

(r)                                    “Merger” means the transaction to combine Forest Oil Corporation (“Forest”) with the business of Sabine LLC, pursuant to the merger agreement entered into among Forest, Sabine Investor Holdings LLC and FR XI Onshore AIV, LLC on July 9, 2014 (the “Merger Agreement”).

 

(s)                                   “Nonqualified Deferred Compensation Rules” means the limitations or requirements of section 409A of the Code and the guidance and regulations promulgated thereunder.

 

(t)                                    “Notice of Termination” means a written notice communicated by the Company (or its affiliates) or the Executive, as applicable, that (i) indicates the reason for termination of the Executive’s employment and (ii) specifies the Date of Termination.

 

(u)                                 “Post-Merger Reorganization” means the transaction, following the Merger, by which (i) Sabine forms a new wholly owned Delaware subsidiary (“New Delaware Holdco”) and New Delaware Holdco forms a wholly owned merger subsidiary (“Reincorporation Merger Sub”), and (ii) a reincorporation merger agreement is adopted providing for the merger of the Reincorporation Merger Sub with and into Sabine, with Sabine surviving the reincorporation merger as a wholly owned subsidiary of New Delaware Holdco, and Sabine common and preferred shareholders receiving corresponding shares in New Delaware Holdco in exchange for their Sabine shares.

 

(v)                                 “Pro-Rata Bonus” means a pro-rata portion of the Executive’s bonus for the calendar year in which a Termination Event occurs. All bonuses that were designed to be based upon performance criteria shall be calculated using actual performance levels at the end of

 

5

 

the performance period, but pro-rated for the number of days that the Executive was providing services to the Company during the performance period.

 

(w)                               “Protection Period” means (i) the six month period ending on the date a Change of Control occurs, and (ii) the two year period beginning on the date a Change of Control occurs.

 

(x)                                 “Restricted Area” means any geographic area (i) within five miles of any existing oil and gas lease, right, or other interest, with respect to any activity involving the purchase of oil or gas leases, the farming in of such leases, or any similar arrangement, or any other operation of the business, (ii) within 25 miles of any existing, gathering, processing, or generation facilities, with respect to any activity involving the gathering and processing business, or (iii) within 100 miles of any existing or planned storage facility, with respect to any activity involving the storage or hub business for natural gas or natural gas liquids in each case then owned by the Company or any of its Subsidiaries within the 12 months preceding the Executive’s termination of employment, which, for the avoidance of doubt, with respect to Louisiana may encompass areas in the parishes listed on Exhibit A attached hereto.

 

(y)                                 “Severance Conditions” means the Executive’s execution, non-revocation, and delivery to the Company of a full and final release of claims (the “Release”) against the Company, its subsidiaries, affiliates, and each of their predecessors, successors and assigns and past, present and future stockholders, owners, investors, officers, directors, employees, agents, attorneys and benefit plans in a form acceptable to the Company provided that the executed Release has been delivered to the Company and become irrevocable on or prior to the fifty-fifth (55th) day following the Date of Termination, provided, however, that the Release shall exclude (and not release) any claims for indemnification, claims for coverage under officer and director policies, and claims as a direct or indirect security holder of the Company (subject, in each case, to any terms, conditions and applicable limitations).

 

(z)                                  “Subsidiary” means an entity that is a direct or indirect subsidiary of the Company.

 

(aa) “Target Bonus” means the Executive’s target bonus for a given calendar year pursuant to the Company’s cash bonus program as in effect from time to time.

 

(bb) “Termination Event” means a termination of the Executive’s employment (i) as a result of the Executive’s death or Disability, (ii) by the Company or its affiliates for any reason other than for Cause, or (iii) by the Executive for Good Reason.

 

2.                                      Term of Agreement. The term of this Agreement (the “Term”) shall commence on the Effective Date and continue indefinitely until terminated pursuant to the terms of this Agreement.

 

3.                                      Severance Benefits Not in Connection with a Change in Control.

 

(a)                                 In the event the Executive experiences a Termination Event that occurs outside of the Protection Period, then the Company shall:

 

6

 

(i)                                     pay the Executive, on the sixtieth (60th) day following the Date of Termination (or the first business day thereafter if the sixtieth day is not a business day), the Accrued Payments;

 

(ii)                                  contingent upon the Executive satisfying the Severance Conditions, pay the Executive, on the sixtieth (60th) day following the Date of Termination (or the first business day thereafter if the sixtieth day is not a business day), a lump sum payment equal to one (1) times the sum of (i) an amount equivalent to Base Salary, plus (ii) an amount equivalent to the Executive’s Historic Bonus Amount;

 

(iii)                               contingent upon the Executive satisfying the Severance Conditions, on the sixtieth (60th) day following the Date of Termination (or the first business day thereafter if the sixtieth day is not a business day), and notwithstanding anything to the contrary in the LTIP or in an individual LTIP award agreement, accelerate the vesting of all outstanding equity-based compensation awards that the Executive holds at the time of the Termination Event under the LTIP. All outstanding equity-based compensation awards that were designed to vest upon the satisfaction of performance criteria shall vest using actual levels of performance at the end of the applicable performance period;

 

(iv)                              contingent upon the Executive satisfying the Severance Conditions, provide the Executive (and his or her spouse and eligible dependents) with continued medical, dental and vision coverage until the earlier of (A) the end of the twelve (12) month period beginning on the Date of Termination, or (B) until the Executive is, or becomes, eligible for comparable coverage under the group health plans of a subsequent employer (to be provided as set forth in Section 7(a) below); and

 

(v)                                 contingent upon the Executive satisfying the Severance Conditions, for the twelve (12) month period beginning on the Date of Termination, or until Executive begins other full time employment with a new employer, whichever occurs first, Executive shall be entitled to receive outplacement services that are directly related to Executive’s termination of employment and are actually provided by an outplacement services firm, paid for or reimbursed by the Company, with a nationally prominent executive outplacement service firm selected by the Company and reasonably acceptable to Executive.

 

For purposes of clarity, the obligation of the Company to provide any portion of the payments or benefits due under Sections 3(a)(ii), (iii), (iv), or (v) of this Agreement shall be expressly conditioned on the Executive satisfying the Severance Conditions. If Executive does not fulfill the Severance Conditions then (i) the Company shall immediately cease the provision of any payments or benefits made under this Section 3, other than the Accrued Payments, and (ii) Executive shall promptly pay to the Company an amount equal to the value of any payments or benefits Executive has previously received under this Section 3, other than the Accrued Payments.

 

7

 

4.                                      Severance Benefits in Connection with a Change in Control.

 

(a)                       In the event the Executive experiences a Termination Event that occurs during the Protection Period, then the Company shall:

 

(i)                                     pay the Executive, on the sixtieth (60th) day following the Date of Termination (or on the sixtieth (60th) day following the occurrence of the Change of Control, in the case of a termination occurring during the six (6) month period ending on the Change of Control) (or the first business day thereafter if the sixtieth day is not a business day), the Accrued Payments;

 

(ii)                                  contingent upon the Executive satisfying the Severance Conditions, pay the Executive, on the sixtieth (60th) day following the Date of Termination (or on the sixtieth (60th) day following the occurrence of the Change of Control, in the case of a termination occurring during the six (6) month period ending on the Change of Control) (or the first business day thereafter if the sixtieth day is not a business day), a lump sum payment equal to one and one-half (1.5) times the sum of (i) an amount equivalent to Base Salary, plus (ii) an amount equivalent to the Executive’s Target Bonus for the calendar year in which the Termination Event occurs;

 

(iii)                               contingent upon the Executive satisfying the Severance Conditions, on the sixtieth (60th) day following the Date of Termination (or the first business day thereafter if the sixtieth day is not a business day), and notwithstanding anything to the contrary in the LTIP or in an individual LTIP award agreement, accelerate the vesting of all outstanding equity-based compensation awards that the Executive holds at the time of the Termination Event under the LTIP. All outstanding equity-based compensation awards that were designed to vest upon the satisfaction of performance criteria shall be vested using actual levels of performance at the end of the applicable performance period;

 

(iv)                              contingent upon the Executive satisfying the Severance Conditions, pay to the Executive a Pro-Rata Bonus for the calendar year of termination, no later than the date that is sixty (60) days following the end of the calendar year to which the bonus relates;

 

(v)                                 contingent upon the Executive satisfying the Severance Conditions, provide the Executive (and his or her spouse and eligible dependents) with continued medical, dental and vision coverage until the earlier of (A) the end of the twenty-four (24) month period beginning on the Date of Termination, or (B) until the Executive is, or becomes, eligible for comparable coverage under the group health plans of a subsequent employer (to be provided as set forth in Section 7(a) below); and

 

8

 

(vi) contingent upon the Executive satisfying the Severance Conditions, for the twelve (12) month period beginning on the Date of Termination, or until Executive begins other full time employment with a new employer, whichever occurs first, Executive shall be entitled to receive reasonable outplacement services as determined by the Company that are directly related to Executive’s termination of employment and are actually provided by an outplacement services firm, paid for or reimbursed by the Company, with a nationally prominent executive outplacement service firm selected by the Company and reasonably acceptable to Executive.

 

For purposes of clarity, the obligation of the Company to provide any portion of the payments or benefits due under Sections 4(a)(ii), (iii), (iv), or (v) of this Agreement shall be expressly conditioned on the Executive’s satisfying the Severance Conditions. If Executive does not fulfill the Severance Conditions then (i) the Company shall immediately cease the provision of any payments or benefits made under this Section 4, other than the Accrued Payments, and (ii) Executive shall promptly pay to the Company an amount equal to the value of any payments or benefits Executive has previously received under this Section 4, other than the Accrued Payments.

 

(b) (i)                             In the event the Executive experiences a Termination Event in connection with a termination that occurs during the six (6) month period ending on the Change in Control for which the Executive believes he is entitled to benefits in accordance with this Section 4, the Executive shall deliver to the Company a written notice setting forth a description of facts and circumstances constituting evidence that the termination of the Executive’s employment was made in anticipation of the occurrence of a Change in Control and with the intention of avoiding payments under this Agreement, no later than thirty (30) days following the occurrence of the Change in Control.

 

(ii)                                  Within 20 days following receipt of the notice described in Section 4(b)(i), the Chief Executive Officer of the Company will make a good faith determination, based on the information contained in such notice and any other information known to the Chief Executive Officer of the Company, whether the Executive’s termination was made in anticipation of the occurrence of a Change in Control and with the intention of avoiding payments under this Agreement. If the Chief Executive Officer affirmatively determines that the termination was under such circumstances (a “Sufficiency Determination”), the Executive will be eligible for and the Company shall provide benefits to the Executive in accordance with Section 4(a).

 

(iii)                               If the Chief Executive Officer of the Company instead determines that there is insufficient evidence to support a Sufficiency Determination, the Company will promptly inform the Executive of such determination.

 

5.                                      Excise Taxes. If the Compensation Committee of the Board determines, in its sole discretion, that Section 280G of the Code applies to any compensation payable to the Executive, then the provisions of this Section 5 shall apply. If any payments or benefits to which the Executive is entitled from the Company, any affiliate, any successor to the Company or an

 

9

 

affiliate, or any trusts established by any of the foregoing by reason of, or in connection with, any transaction that occurs after the Effective Date (collectively, the “Payments,” which shall include, without limitation, the vesting of any equity awards or other non-cash benefit or property) are, alone or in the aggregate, more likely than not, if paid or delivered to the Executive, to be subject to the tax imposed by Section 4999 of the Code or any successor provisions to that section, then the Payments (beginning with any Payment to be paid in cash hereunder), shall be either (a) reduced (but not below zero) so that the present value of such total Payments received by the Executive will be one dollar ($1.00) less than three times the Executive’s “base amount” (as defined in Section 280G(b)(3) of the Code) and so that no portion of such Payments received by the Executive shall be subject to the excise tax imposed by Section 4999 of the Code, or (b) paid in full, whichever of (a) or (b) produces the better net after tax position to the Executive (taking into account any applicable excise tax under Section 4999 of the Code and any other applicable taxes). The determination as to whether any Payments are more likely than not to be subject to taxes under Section 4999 of the Code and as to whether reduction or payment in full of the amount of the Payments provided hereunder results in the better net after tax position to the Executive shall be made by the Board and the Executive in good faith.

 

6.                                      Noncompetition and Nonsolicitation.

 

(a) In consideration of the benefits to which the Executive may be entitled under the terms of this Agreement, the confidential information relating to the Company and its business previously provided to the Executive, and the Company’s promise to provide the Executive with future confidential information during the course of the Executive’s employment with the Company (including new confidential information provided to the Executive in connection with, and as a result of, the Merger), and so as to protect such confidential information and the Company’s legitimate business interests (including the goodwill with which the Executive will be associated, and that the Executive will help build during the Executive’s employment), the Executive agrees that while employed or otherwise engaged by the Company or any of its affiliates, and thereafter for a period of twelve (12) months immediately following the termination of the Executive’s employment for whatever reason, the Executive will not, directly or indirectly:

 

(i)                                     carry on or engage in Competitive Duties (as a director, employee, consultant, contractor or otherwise) within the Restricted Area for any Competing Business;

 

(ii)                                  solicit (or assist another in soliciting) any Covered Customer or Prospective Customer for the purpose of inducing, or attempting to induce, such Covered Customer or Prospective Customer to cease or reduce its business with the Company or its Subsidiaries, or not to do business with the Company or its Subsidiaries; or

 

(iii)                               (A) encourage (or assist another in encouraging) any employee, contractor, consultant, supplier, or vendor of the Company or any of its Subsidiaries, to terminate, cease or lessen its relationship with the Company or

 

10

 

any of its Subsidiaries, or (B) on behalf of a Competing Business, engage, employ, or solicit or contact for employment or engagement (or assist another in such activity) any employee, contractor or consultant of the Company or any of its Subsidiaries or any person who was an employee, contractor, or consultant of the Company or any of its Subsidiaries at any time during the last twelve (12) months of the Executive’s employment with the Company (or, if the Executive is employed by the Company for less than twelve (12) months, those persons who were employees, contractors, or consultants of the Company or any of its Subsidiaries during the Executive’s employment with the Company).

 

(b)                                      The Executive agrees that the Company’s and its Subsidiaries’ substantial investments in its business interests, goodwill and confidential information are worthy of protection and that the Company’s and its Subsidiaries’ need for the protection afforded by this Section 6 is greater than any hardship the Executive might experience by complying with its terms. The Executive agrees that the limitations as to time, geographic area, and scope of activity to be restrained contained in this Agreement are reasonable and are not greater than necessary to protect the confidential information, good-will and other legitimate business interests of the Company.

 

(c)                                       Notwithstanding the foregoing, the above-referenced limitations in Sections 6(a)(i) and (ii) shall not apply in those portions of the Restricted Area located within the State of Oklahoma. Instead, the Executive agrees that, in addition to the limitations in Section 6(a)(iii), the restrictions on the Executive’s activities within those portions of the Restricted Area located within the State of Oklahoma shall be as follows: during the Executive’s employment or other engagement by the Company or any of its affiliates, and thereafter for a period of twelve (12) months immediately following the termination of the Executive’s employment for whatever reason, the Executive will not directly solicit the sale of goods, services, or a combination of goods and services from the established customers of the Company, the Company’s subsidiaries or the Company’s affiliates.

 

(d)                                      Although the Company and the Executive believe the limitations as to time, geographic area, and scope of activity contained in this Section 6 are reasonable and do not impose a greater restraint than necessary to protect the Company’s and its Subsidiaries’ confidential information and legitimate business interests, if this is judicially determined not to be the case, the Company and the Executive specifically agree that the limitations contained in this Agreement be reformed to the extent necessary to make this Agreement enforceable.

 

(e)                                       The Executive acknowledges that the Executive’s violation or threatened or attempted violation of the covenants contained in this Section 6 will cause irreparable harm to the Company and its Subsidiaries and that monetary damages would not be sufficient remedy for any breach of these sections. The Executive agrees that the Company and its Subsidiaries shall be entitled as a matter of right to specific performance of the covenants in this Agreement, including entry of an ex parte temporary restraining order in state or federal court, preliminary and permanent injunctive relief against activities in violation of this Section 6, or both, or other appropriate judicial remedy, writ or order, in any court of competent jurisdiction, restraining any violation or further violation of such agreements by the Executive or

 

11

 

others active on the Executive’s behalf, without any showing of irreparable harm and without any showing that the Company or its Subsidiaries do not have an adequate remedy at law.

 

(f)                                        The covenants made by the Executive in this Agreement are in addition to all other duties owed by the Executive to the Company, including, without limitation, fiduciary duties of loyalty and disclosure, which Executive acknowledges and agrees are attendant to the executive and managerial positions that the Executive has held and will hold with the Company.

 

7.                                      General Provisions.

 

(a)                                 Continuation of Medical Benefits. The Company may satisfy its obligations under Section 3(a)(iv) or Section 4(a)(iv), as applicable, in one or more of the following manners, as determined by the Company in its discretion: (1) by continuing the Executive’s coverage under the Company’s group health plans on the same terms and conditions as active employees of the Company, with the balance of any applicable premiums, as determined by the Company, being paid by the Company with income applicable to such premiums imputed to the Executive, or (2) during the period of time that the Executive would, but for the continued coverage provided pursuant to Section 3(a)(iv) or Section 4(a)(iv), as applicable, be entitled to continued group health plan coverage pursuant to COBRA, if the Executive elected such coverage and paid the applicable premiums (the “COBRA Continuation Period”), by reimbursing the Executive on a monthly basis for the cost of COBRA continuation coverage in excess of the premium amount paid by active employees of the Company for group health plan coverage, or (3) following the COBRA Continuation Period, to the extent the Executive is still entitled to continued coverage pursuant to Section 3(a)(iv) or Section 4(a)(iv), as applicable, the coverage to be continued shall be self-funded by the Company, shall be provided in the form of an individual insurance policy obtained by the Company for the Executive, or shall be provided in the form of monthly reimbursement by the Company to the Executive for the cost of obtaining such coverage (but only to the extent such cost exceeds the premium amount paid by active employees of the Company for group health plan coverage), such method under this subclause (3) to be determined by the Company in its discretion and to be provided in accordance with the provisions of Treas. Reg. § 1.409A-3(i)(1)(iv)(A), including but not limited to the requirements that (x) the benefits or reimbursements provided be determined by reference to the objective and nondiscretionary criteria set forth in the applicable group health plans, (y) the benefits or reimbursements provided during one taxable year of the Executive not affect the benefits or reimbursements to be provided in any other taxable year (provided, that a limit imposed on the amount of benefits or reimbursements that may be provided over some or all of the continuation period described in Section 3(a)(iv) or Section 4(a)(iv), as applicable, shall not in and of itself cause the arrangement described herein to fail to satisfy the requirements of Treas. Reg. § 1.409A-3(i)(1)(iv)), and (z) the right to receive benefits or reimbursements not be subject to liquidation or exchange for another benefit. If the Executive experiences a Termination Event during the six (6) month period ending on a Change of Control and it is ultimately determined that such termination was in anticipation of such Change of Control such that the Executive is entitled to benefits under Section 4 of this Agreement, the Company shall reimburse the Executive for any COBRA premiums incurred by the Executive prior to such determination to the extent such premiums are in excess of the premium amount paid by active employees in the Company’s group health plans, such reimbursement to be

 

12

 

provided within sixty (60) days of the Change of Control, with the remainder of any continued coverage to which the Executive is entitled under Section 4(a)(iv) to be provided in accordance with the provisions of Section 4(a)(iv). The health care continuation coverage period under COBRA or any replacement or successor provision of applicable law, shall run concurrently with the period during which the Executive continues to receive benefits pursuant to Section 4(a)(iv).

 

(b)                                 Taxes. The Company is authorized to withhold from any payments made hereunder amounts of withholding and other taxes due or potentially payable in connection therewith, and to take such other action as the Company may deem advisable to enable the Company and the Executive to satisfy obligations for the payment of withholding taxes and other tax obligations relating to any payments made under this Agreement. The Executive agrees that the Company is not providing any tax advice regarding this Agreement or the impact of any benefits of compensation that may paid pursuant to this Agreement, and that the Executive has had the opportunity to seek out personal tax and/or legal advice regarding the Agreement.

 

(c)                                  Offset. The Company may set off against, and the Executive authorizes the Company to deduct from, any payments due to the Executive, or to his estate, heirs, legal representatives, or successors, any amounts which may be due and owing to the Company or an affiliate by the Executive, whether arising under this Agreement or otherwise; provided that no such offset may be made with respect to amounts payable that are subject to the requirements of the Nonqualified Deferred Compensation Rules unless the offset would not result in a violation of the requirements of the Nonqualified Deferred Compensation Rules.

 

(d)                                 Successors. This Agreement and all rights hereunder are personal to the Executive and shall not be assignable by the Executive; provided, however, that any amounts that shall become payable under this Agreement prior to the Executive’s death shall inure to the benefit of the Executive’s heirs and other legal representatives, as the case may be. This Agreement shall bind, and inure to the benefit of, the Company and any successor to the Company pursuant to a Change of Control. The Company shall require any successor pursuant to a Change of Control to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no succession had taken place. Upon such assumption by the successor, the Company automatically shall be released from all liability hereunder. In the event a successor does not assume this Agreement, the benefits payable pursuant to Section 4 will be paid or provided immediately prior to the Change of Control.

 

(e)                                  Unfunded Obligation. All benefits due to the Executive under this Agreement are unfunded and unsecured and are payable out of the general funds of the Company.

 

(f)                                   Limitation on Rights Conferred. Neither the Agreement nor any action taken hereunder will be construed as (i) giving the Executive the right to continue in the employ or service of the Company or an affiliate; (ii) interfering in any way with the right of the Company or any affiliate to terminate the Executive’s employment or service at any time; or (iii) giving the Executive any claim to be treated uniformly with other employees.

 

13

 

(g)                                 Entire Agreement; Cancellation of Prior Agreement. This Agreement constitutes the entire agreement between the parties respecting the subject matter hereof and supersedes any prior agreements respecting severance benefits or change in control benefits.

 

(h)                                 Amendment or Waiver. No amendment to this Agreement shall be deemed valid unless in writing and signed by the parties. A waiver of any term, covenant, agreement or condition contained in this Agreement shall not be deemed a waiver of any other term, covenant, agreement or condition, and any waiver of any default in any such term, covenant, agreement or condition shall not be deemed a waiver of any later default thereof or of any other term, covenant, agreement or condition.

 

(i)                                    Severability. If any provision of the Agreement is held to be illegal or invalid for any reason, the illegality or invalidity will not affect the remaining provisions of the Agreement, but such provision will be fully severable and the Agreement will be construed and enforced as if the illegal or invalid provision had never been included herein.

 

(j)                                    Survival. The Executive’s obligations under Section 6 of this Agreement shall survive the termination for whatever reason of the Executive’s employment. The Executive’s obligations under Section 6 of this Agreement also will be binding on the Executive’s heirs, executors, assigns, and administrators and will inure to the benefit of the Company, its Subsidiaries, affiliates, successors, and assigns.

 

(k)                                 Third Party Beneficiaries. Each Subsidiary and affiliate of the Company shall be a third party beneficiary of the Executive’s obligations under the provisions of this Agreement and shall have the right to enforce this Agreement as if a party hereto.

 

(l)                                    Notices. Any notice required or permitted to be given by this Agreement shall be effective only if in writing, delivered personally or by courier or by facsimile transmission or sent by express, registered or certified mail, postage prepaid, (i) to the Executive at the last address he has filed with the Company, and (ii) to the Company at its principal executive offices, or at such other places that either party may designate by notice to the other.

 

(m)                             Application of Section 409A. To the extent that the Executive is a “specified employee” within the meaning of the Nonqualified Deferred Compensation Rules as of the Executive’s Date of Termination, no amount that constitutes a deferral of compensation which is payable on account of the Executive’s separation from service shall be paid to the Executive before the date (the “Delayed Payment Date”) which is first day of the seventh month after the Executive’s Date of Termination or, if earlier, the date of the Executive’s death following such Date of Termination. All such amounts that would, but for this Section 7(m), become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date. No interest will be paid by the Company with respect to any such delayed payments. For purposes of the Nonqualified Deferred Compensation Rules, each payment or amount due under this Agreement shall be considered a separate payment, and the Executive’s entitlement to a series of payments under this Agreement is to be treated as an entitlement to a series of separate payments.

 

14

 

(n)                                 Governing Law. All questions arising with respect to the provisions of the Agreement and payments due hereunder will be determined by application of the laws of the State of Texas, without giving effect to any conflict of law provisions thereof, except to the extent Texas law is preempted by federal law.

 

(o)                                 Word Usage. Words used in the masculine shall apply to the feminine, where applicable, and wherever the context of the Agreement dictates, the plural shall be read as the singular and the singular as the plural.

 

[Signature Page Follows]

 

15

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the Effective Date.

 

 

	
 
    	
SABINE OIL & GAS   CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Sambrooks
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
David Sambrooks
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
Date:
    	
January 6, 2015
    
	
 
    	
 
    	
 
    
	
 
    	
EXECUTIVE
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Michael Magilton
    
	
 
    	
Michael Magilton
    

 

16

 

Exhibit A

 

Restricted Parishes in Louisiana

 

	
Acadia
    	
Allen
    	
Ascension
    	
Assumption
    
	
 
    	
 
    	
 
    	
 
    
	
Avoyelles
    	
Beauregard
    	
Bienville
    	
Bossier
    
	
 
    	
 
    	
 
    	
 
    
	
Caddo
    	
Calcasieu
    	
Caldwell
    	
Cameron
    
	
 
    	
 
    	
 
    	
 
    
	
Catahoula
    	
Claiborne
    	
Concordia
    	
De Soto
    
	
 
    	
 
    	
 
    	
 
    
	
East Baton Rouge
    	
East Carroll
    	
East Feliciana
    	
Evangeline
    
	
 
    	
 
    	
 
    	
 
    
	
Franklin
    	
Grant
    	
Iberia
    	
Iberville
    
	
 
    	
 
    	
 
    	
 
    
	
Jackson
    	
Jefferson
    	
Jefferson Davis
    	
La Salle
    
	
 
    	
 
    	
 
    	
 
    
	
Lafayette
    	
Lafourche
    	
Lincoln
    	
Livingston
    
	
 
    	
 
    	
 
    	
 
    
	
Madison
    	
Morehouse
    	
Natchitoches
    	
Orleans
    
	
 
    	
 
    	
 
    	
 
    
	
Ouachita
    	
Plaquemines
    	
Pointe Coupee
    	
Rapides
    
	
 
    	
 
    	
 
    	
 
    
	
Red River
    	
Richland
    	
Sabine
    	
St. Bernard
    
	
 
    	
 
    	
 
    	
 
    
	
St. Charles
    	
St. Helena
    	
St. James
    	
St. John the Baptist
    
	
 
    	
 
    	
 
    	
 
    
	
St. Landry
    	
St. Martin
    	
St. Mary
    	
St. Tammany
    
	
 
    	
 
    	
 
    	
 
    
	
Tangipahoa
    	
Tensas
    	
Terrebonne
    	
Union
    
	
 
    	
 
    	
 
    	
 
    
	
Vermilion
    	
Vernon
    	
Washington
    	
Webster
    
	
 
    	
 
    	
 
    	
 
    
	
West Baton Rouge
    	
West Carroll
    	
West Feliciana
    	
Winn
    

 

17PODD EX10.1_2015.01.07.8K

Exhibit 10.1

January 6, 2015

Peter Devlin
65 Walnut Ave
Andover, MA 01810
    
Dear Peter: 

The purpose of this letter agreement (the “Agreement”) is to set forth the terms of your separation from Insulet Corporation (“Insulet” or the “Company”).1 The Transitional Pay and Benefits described below are contingent on your agreement to and compliance with the terms of this Agreement, including your signing and not revoking of this Agreement.  This Agreement will become effective and enforceable on the eighth day after you sign it, provided it is not revoked before that time (the “Effective Date”).

		
	1.
	Transition Role.   The Company will continue to employ you on an at-will basis.  On a mutually agreed upon date, you will resign as an officer of the Company (including as a Section 16 officer) and from any other director or officer positions you hold with any of the Company’s subsidiaries or entities affiliated with the Company.  Effective your resignation date and continuing until April 3, 2015 (the “Transitional Employment Period”), you shall be in a “Transition Role.”  During the Transitional Employment Period, you shall be working a fulltime assignment focusing on strategic business development efforts. During the Transitional Employment Period, you shall receive the following Transition Pay and Benefits: (i) continuation of your base bi-weekly salary of twelve thousand two hundred thirty dollars seventy seven cents ($12,230.77), subject to all ordinary payroll taxes and withholdings, in accordance with Insulet’s payroll policies and procedures; and (ii) continuation of your participation in Insulet’s employee insurance benefits programs, but only to the extent that you currently participate in such programs and remain eligible under any applicable plan document(s).  Vesting of any outstanding stock options or restricted stock units previously granted to you by the Company will continue on account of your employment during the Transitional Employment Period and will cease as of the Separation Date.

You specifically acknowledge that the opportunities to remain employed on an at will basis during the Transitional Employment Period and to receive associated Transition Pay and Benefits are being provided as part of the separation of your employment and are in consideration of your agreements, including the release of claims, included in this Agreement.  It is further understood and agreed that no other benefits or payments of any kind are owed to you other than as set forth in this Section 1.

		
	2.
	Separation of Employment.  Your employment with the Company shall terminate on April 3, 2015, unless you resign on an earlier date or the Company ends the employment relationship due to your material breach of this agreement “provided, however, that before taking any such action to end your employment, the Company will provide you with written notice detailing the alleged material breach and ten business days to cure the breach.  For purposes of this Agreement the actual last date of your employment whether it is April 3, 2015 or an earlier date shall be referred to the “Separation Date”.  For purposes of clarity, unless you resign on an earlier date or the Company ends the employment relationship due solely to a material breach of this Agreement, this agreement will be enforceable by the parties hereto in accordance with its terms.  You acknowledge that from and after the Separation Date, you have no authority to, and shall not, represent yourself as an employee or agent of the Company. 

On the Separation Date, the Company shall pay your final accrued but unpaid base salary and any accrued but unused vacation based on your employment through the Separation Date.  You shall be entitled to be reimbursed 

1 Except for the obligations set forth in Sections 2 and 3 of this Agreement which shall solely be the obligations of Insulet Corporation, whenever the terms “Insulet” or “the Company” are otherwise used in this Agreement, they shall be deemed to include Insulet Corporation and any related entities (including, without limitation, any divisions, affiliates, parents or subsidiaries of Insulet Corporation), and its and their respective current and former officers, directors, employees, agents, successors and assigns.

for reasonable business expenses incurred prior to the Separation Date in connection with your employment subject to the Company’s policies and procedures with respect to expense reimbursement.

		
	3.
	Severance Pay and Other Economic Benefits.  Provided you enter into and comply with this Agreement and in exchange for the mutual covenants set forth in this Agreement, the Company will provide the following:

		
	(i)
	The Company will pay you salary continuation in the amount of one year of your base salary of three hundred eighteen dollars ($318,000), less applicable deductions and withholdings (“Severance Pay”), payable in substantially equal installments in accordance with the Company’s payroll practice over twelve (12) months, beginning on the first payroll date that occurs after the Separation Date.  As used herein, Severance Period means the period from April 4, 2015 to April 2, 2016.

		
	(ii)
	Upon your making a timely COBRA election, the Company will pay the standard employer portion of your medical and dental insurance premiums until the earlier of (i) the last day of the Severance Period, (ii) the date you become eligible for health insurance through another employer, and (iii) the date you otherwise become ineligible for COBRA (the “Severance Benefits”), provided that you timely pay your regular employee contribution toward your medical and dental insurance premiums as required by the Company or its COBRA administrator.  The Company’s obligations under this subsection are contingent on you making a timely COBRA election.  Additionally, the Company shall only be required to continue and contribute to your medical and dental insurance under this subsection to the same extent that such insurance is provided to persons employed by the Company.  

		
	(iii)
	You will be eligible for 2014 bonus which shall be calculated as follows: 70% of your 2014 bonus will be paid at the level established by the Company’s Board of Directors based upon the Company’s overall achievement of the quantitative Company goals for 2014; 30% of your 2014 bonus will be paid at 84% of the target for your individual Executive Goals for 2014. Payment will be made in Q1 consistent with standard payment practices. In addition payment of a pro-rata 2015 bonus in the amount of thirty nine thousand seven hundred fifty dollars ($39,750) less state and federal income and welfare taxes and any other mandatory deductions under applicable laws (the “2015 Bonus”), payable in substantially equal installments in accordance with the Company’s payroll practice over twelve (12) months, beginning on the first payroll date that occurs after the Separation Date. 

		
	(iv)
	Reimburse you up to a maximum of Fifteen Thousand Dollars ($15,000) for documented expenses incurred for professional outplacement services.

 
		
	4.
	Continued Medical Insurance after the Severance Period.  After the expiration of the Severance Period, you will have the right to continue your medical and dental insurance solely at your own cost pursuant to the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) to the extent you and your qualified beneficiaries remain eligible.  The “qualifying event” under COBRA shall be the Separation Date.   

		
	5.
	Acknowledgements.  You acknowledge and agree that your entitlement to the Severance Pay and Severance Benefits is subject to and conditioned upon your execution, nonrevocation and compliance with this Agreement.  You further acknowledge that the Severance Pay and Severance Benefits provided herein are in lieu of and intended by both parties to supersede any other right to severance pay or benefits including without limitation the severance pay and benefits set forth in the Insulet Amended and Restated Executive Severance Plan, as amended (hereinafter the “Executive Severance Plan”), a copy of which is attached hereto as Exhibit A.  You further acknowledge and agree that except as set forth herein in this Agreement (see Section 7(i) below), this Agreement supersedes the Executive Severance Plan.  The Severance Pay and Severance Benefits are not intended to, and shall not be construed to, constitute a severance plan, and shall confer no benefit on anyone other than the parties hereto. You further acknowledge that except for (i) the specific financial consideration set forth in this Agreement, (ii) earned but unpaid regular wages earned through the Separation Date, (iii) accrued but unused vacation (which shall be paid to you in accordance with applicable law), you are not now and shall not in the future be entitled to any other compensation or benefit including, without limitation, other wages, commissions, bonuses, incentives, vacation pay, holiday pay, stock options or other equity, or any other form of compensation or benefit. 

 

		
	6.
	Unemployment Benefits. You may seek unemployment benefits as a result of the termination of your employment from the Company, and nothing in this Agreement impairs that right.  Decisions regarding eligibility for and amounts of unemployment benefits are made by the applicable state unemployment agency, not by the Company.  The Company agrees to provide any and all requested or necessary documents to enable you to seek unemployment benefits, and further agrees that it will not take a position that would interfere with your ability to obtain unemployment benefits as a result of the separation of your employment from the Company.  Nothing in this Section shall be construed to require the Company to make untruthful statements to a state agency in connection with any claim for unemployment benefits.   

		
	7.
	Confidentiality and Other Obligations.  You expressly acknowledge and agree to the following:

		
	(i)
	That the provisions of Sections 4 and 9 of the Executive Severance Plan, and your obligations pursuant to Section 5 of the Executive Severance Plan, are incorporated herein by reference.

		
	(ii)
	That you will promptly return to the Company all the Company documents, electronic, hardcopy otherwise (and any copies) and other Company property, on or before the Separation or promptly upon an earlier request by the Company. 

		
	(iii)
	That you will abide by the terms of the Employee Non-Disclosure and Developments Agreement and the Non-Competition and Non-Solicitation Agreement both of which are attached hereto as Exhibit B, the terms of which are hereby incorporated into this Agreement by reference, and that you otherwise will keep all confidential information and trade secrets of the Company confidential.  

		
	(iv)
	That you will abide by any and all common law and/or statutory obligations relating to protection and non-disclosure of the Company’s trade secrets and/or confidential and proprietary documents and information.

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

		
	(vi)
	During your employment and after the termination of your employment you agree not to make or cause to be made, directly or indirectly, any statement to any person disparaging the Company or any of its stockholders, directors, officers or employees or commenting unfavorable or falsely on the character, business judgment, services, products, business practices or business reputation of the Company or any of its stockholder, directors, officers or employees.  For its part, the Company shall instruct its CEO, General Counsel, Chief Financial Officer, Executive Vice President Human Relations, Chief Operating Officer, Vice President Sales, Vice President, Marketing, and Board of Directors to not make any statements that are professionally or personally disparaging about, or adverse to, your interests, including, but not limited to, any statements that disparage you, and shall further instruct said officers and directors to not engage in any conduct that could reasonably be expected to harm professionally or personally your reputation.

		
	(vii)
	To the extent that any of your obligations under Sections 4 and 5 of the Executive Severance Plan exceed those set forth in Exhibit B, then the provisions of the Executive Severance Plan shall prevail. 

If a court of competent jurisdiction finally determines that you have materially breached any covenant in this Section 7, the breach shall relieve the Company of any further obligations under this Agreement and, in addition to any other legal or equitable remedy available to the Company, shall entitle the Company to end your employment if you are still employed, and/or to stop providing and/or recover any Severance Pay and Severance Benefits payable or paid to you (or on your behalf) pursuant to Section 3 of this Agreement

		
	7.
	Cooperation.  During the Severance Period, you will make yourself available to Insulet, upon reasonable notice, either by telephone or, if Insulet believes necessary, in person to assist Insulet in any matter relating to the services performed by you during your employment with Insulet including, but not limited to, transitioning your duties to others at Insulet, and ensuring that all documentation is recorded fully and completely.  Such cooperation shall not be a service relationship for purposes of any of your outstanding equity. 

		
	8.
	Release of Claims.  You hereby acknowledge and agree that by signing this Agreement, you are waiving your right to assert any Claim (as defined below) against the Company arising from acts or omissions that occurred on or before the date you sign this Agreement.  Please note the definition of the Company contained in footnote 1 of this Agreement.

Your waiver and release is intended to bar any form of legal claim, lawsuit, charge, complaint or any other form of action (jointly referred to as “Claims”) against the Company seeking money or any other form of relief, including but not limited to equitable relief (whether declaratory, injunctive or otherwise), damages or any other form of monetary recovery (including but not limited to back pay, front pay, compensatory damages, emotional distress damages, punitive damages, attorneys’ fees and any other costs).  You understand that there could be unknown or unanticipated Claims resulting from your employment with the Company and the termination of your employment, and you agree that such Claims are included in this waiver and release.

Without limiting the generality of the previous paragraph, you specifically waive and release the Company from any Claims arising from or related to your employment relationship with the Company or the termination of your employment, including without limitation: 

		
	(i)
	Claims under any statute, ordinance, regulation, executive order, common law, constitution and/or other source of law of any state, country and/or locality (collectively and individually referred to as “Law”), including but not limited to the United States, the Commonwealth of Massachusetts and any other state or locality where you worked for the Company;

		
	(ii)
	Claims under any Law concerning discrimination, harassment or fair employment practices, including but not limited to Massachusetts General Laws Chapter 151B, Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e et seq.), 42 U.S.C. § 1981, the Age Discrimination in Employment Act (29 U.S.C. § 621 et seq.) and the Americans with Disabilities Act (42 U.S.C. § 12101 et seq.), each as they may have been amended through the Effective Date; 

		
	(iii)
	Claims under any Law relating to wages, hours, whistleblowing, leaves of absences or any other terms and conditions of employment, including but not  limited to the Family and Medical Leave Act of 1993 (29 U.S.C. § 2601 et seq.), the Massachusetts Payment of Wages Law (Massachusetts General Laws Chapter 149, §§  148, 150), Massachusetts General Laws Chapter 149 in its entirety, and Massachusetts General Laws Chapter 151 in its entirety (including but not limited to the minimum wage and overtime provisions), each as they may have been amended through the Effective Date.   You specifically acknowledge that you are waiving any Claims for unpaid wages under these and other Laws;  

		
	(iv)
	Claims under any local, state or federal common law theory; 

		
	(v)
	Claims arising under the Company’s policies or benefit plans; and

		
	(vi)
	Claims arising under any other Law or constitution.

This Section 9 shall not release the Company from any obligation expressly set forth in this Agreement.  or preclude you from pursuing any claims to enforce this Agreement.  In addition, nothing in this Agreement operates as a waiver of or otherwise impacts your (x) vested benefits under the Company’s 401(k) plan, (y) vested equity under the Company’s stock plan(s), and (z) any rights to indemnification, whether pursuant to insurance policy including directors and officers insurance, contract, the Company’s articles of incorporation, by-laws, and/or charter, or applicable law. You acknowledge and agree that, but for providing this waiver and release, you would not be receiving the Severance Pay and/or Severance Benefits provided for in this Agreement.

The Company hereby releases and forever discharges you generally from all known, or reasonably susceptible of being known, claims, demands, debts, damages and liabilities of every name and nature that, as of the date when the Company signs this Agreement, the Company has, ever had, now claims to have or ever claimed to have had against you (“Company Claims”).  This release includes, without implication of limitation, the complete waiver and release of all Company Claims arising in connection with your employment with and/or service as an officer and/or director of the Company and its subsidiaries or affiliates, and/or separation from employment with and/or service as an officer and/or director of the Company, provided, however, that notwithstanding the foregoing, the Company does not release you from any civil claims based on any acts and/or omissions that satisfy the elements of a criminal offense or claims arising out of any deliberate misconduct that resulted in injury to the Company (provided that the Company hereby represents that it knows of no such claims) nor does the Company release you with respect to any clawback of your compensation to the extent required by the Sarbanes-Oxley Act (“SOX”), the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) or any other applicable law.   

		
	9.
	OWBPA.  Because you are at least forty (40) years of age, you have specific rights under the federal Age Discrimination in Employment Act (“ADEA”) and Older Workers Benefits Protection Act (“OWBPA”), which prohibit discrimination on the basis of age.  The release in Section 9 is intended to release any Claim you may have against the Company alleging discrimination on the basis of age under the ADEA, OWBPA and other Laws.  Notwithstanding anything to the contrary in this Agreement, the release in Section 9 does not cover rights or Claims under the ADEA that arise from acts or omissions that occur after the date you sign this Agreement. 

        
It is the Company’s desire and intent to make certain that you fully understand the provisions and effects of this Agreement.  To that end, the Company hereby advises you in writing to consult with legal counsel prior to signing this Agreement for the purpose of reviewing the terms of this Agreement.  Also, because you are at least age 40, and consistent with the provisions of the OWBPA, the Company is providing you with twenty-one (21) days to consider and accept the terms of this Agreement by signing below and returning it to Insulet, c/o Kathleen Hayes at Insulet, 600 Technology Park Drive, Suite 200, Billerica, MA 01821.  In addition, you may rescind your assent to this Agreement if, within seven (7) days after you sign this Agreement, you deliver a notice of rescission to Kathleen Hayes at the Company.  To be effective, such rescission must be hand delivered or postmarked within the seven (7) day period and sent by certified mail, return receipt requested, to Kathleen Hayes at the Company at the above referenced address. 

Further, consistent with federal laws prohibiting discrimination (the “Federal Discrimination Laws”), nothing in this Agreement shall be deemed to prohibit you from challenging the validity of the release set forth in Section 9 under the Federal Discrimination Laws or from filing a charge or complaint of employment related discrimination with the Equal Employment Opportunity Commission (“EEOC”), or from participating in any investigation or proceeding conducted by the EEOC.  However, this Agreement does prohibit you from seeking or receiving monetary damages or other individual-specific relief in connection with any such charge or complaint of employment-related discrimination.  Further, nothing in this Agreement shall be deemed to limit the Company’s right to seek immediate dismissal of such charge or complaint on the basis that your signing of this Agreement constitutes a full release of any individual rights under the Federal Discrimination Laws, or the Company’s right to seek restitution or other legal remedies to the extent permitted by law of the economic benefits provided to you under this Agreement in the event that you successfully challenge the validity of this release and prevail in any claim under the Federal Discrimination Laws.
 
		
	10.
	 Miscellaneous Provisions.  

		
	(i)
	Except as otherwise expressly provided in this Agreement this Agreement supersedes any and all other prior oral and/or written agreements, and sets forth the entire agreement between you and the Company.  No variations or modifications hereof shall be deemed valid unless reduced to writing and signed by the parties hereto.  

		
	(ii)
	This Agreement shall be deemed to have been made in the Commonwealth of Massachusetts, shall take effect as an instrument under seal, and shall be governed by the law of the Commonwealth of Massachusetts, without giving effect to conflict of law principles.   

		
	(iii)
	You agree that any action, demand, claim or counterclaim relating to the terms and provisions of this Agreement, or to its breach, shall be commenced in Massachusetts in a court of competent jurisdiction, and you further acknowledge that venue for such actions shall lie exclusively in Massachusetts and that material witnesses and documents would be located in Massachusetts.  You also agree that a court in Massachusetts will have personal jurisdiction over you, and you waive any right to raise a defense of lack of personal jurisdiction by such a court.

		
	(iv)
	Both parties agree that any action, demand, claim or counterclaim arising out of this Agreement shall be resolved by a judge alone, and both parties hereby waive and forever renounce the right to a trial before a civil jury.  

		
	(v)
	If your release of Claims pursuant to Section 9 is found to be unenforceable in whole or part (except for your release of federal age discrimination Claims, which shall not be subject to this sentence), the Company will have the option, in its sole discretion, to enforce the portions of the Agreement found not to be unenforceable.  In the event that any other provision of this Agreement is determined to be unenforceable in whole or part (including your release of federal age discrimination Claims), the remainder of the Agreement shall be enforced in full.

		
	(vi)
	The parties intend that all payments and benefits provided for in this Agreement will be administered in accordance with Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”).  To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A, the provision shall be read in such a manner so that all payments hereunder either comply with Section 409A or are exempt from Section 409A.  All expenses eligible for reimbursement hereunder shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred. 

 
		
	(vii)
	This Agreement shall inure to the benefit of and be binding upon the Company and you, and its and your respective successors, executors, administrators, heirs and permitted assigns.  In the event of your death after the Separation Date but prior to the provision by the Company of all of the Severance Pay and Other Economic Benefits described in Section 3 of this Agreement, the Company shall continue to provide such severance pay and Severance Benefits to your beneficiary designated in writing to the Company prior to your death (or to your estate, if you fail to make such designation).

By executing this Agreement, you are acknowledging that you have been afforded sufficient time to understand the terms and effects of this Agreement and to consult with legal counsel, that your agreements and obligations hereunder are made voluntarily, knowingly and without duress, and that neither the Company nor its agents or representatives have made any representations inconsistent with the provisions of this Agreement.  

If you wish to accept this Agreement, please sign, date and return the enclosed copy of this Agreement within twenty-one (21) days to Kathleen Hayes at Insulet, 600 Technology Park Drive, Billerica, MA 01821.  

	
				
	 
	 
	 
	Yours very truly,

	 
	 
	 
	 

	 
	 
	 
	Insulet Corporation

	 
	 
	 
	 

	 
	 
	By:
	/s/ Patrick J. Sullivan

	 
	 
	 
	Patrick J. Sullivan

	 
	 
	 
	President & Chief Executive Officer

	 
	 
	 
	 

	 
	/s/ Peter Devlin
	 
	 

	 
	Peter Devlin
	 
	 

	 
	 
	 
	 

	Dated:
	January 6, 2015

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}]]