Document:

Separation Agreement and Release

 
EXHIBIT 10.37

 
SEPARATION AGREEMENT AND RELEASE

 
This Separation Agreement and Release
(“Agreement”) is entered into by and between QRS Corporation, its officers, directors, employees, representatives, agents, attorneys, investors, shareholders, administrators, affiliates, predecessor and successor corporations and assigns
(the “Company”), and Candy Smith, her heirs, executors, representatives and assigns (“Employee”). 
 
WHEREAS, Employee has been employed by the Company; 
 
WHEREAS, the Employee’s employment with the Company will terminate on the date set forth herein;

 
NOW, THEREFORE, in consideration of the mutual
promises made herein, the Company and Employee (collectively referred to as the “Parties”) hereby agree as follows: 
 
1. Termination. The Company and Employee acknowledge and agree that Employee’s separation from the Company is effective July
31, 2002 (the “Termination Date”). Until the Termination Date, Employee agrees to perform such duties and responsibilities as directed by the CEO and President of the Company. The Company may immediately terminate this Agreement without
any further liability to Employee if Employee: (1) materially breaches any obligation under any confidential or proprietary information agreements with the Company or violates her fiduciary duties as an officer of the Company, (2) fails to follow in
a material respect any reasonable policies established on an employee-wide basis by the Company, (3) engages in willful misconduct having a material detrimental effect on the Company, or (4) engages in unauthorized activity creating a material
conflict of interest between Employee and the Company after notice and a reasonable opportunity to refrain from that conduct. 
 
2. Consideration. In consideration for Employee’s release of claims set forth below and other obligations under this
Agreement, the Company and Employee agree as follows: 
 

	 	(a)	 	Severance Pay in the amount of twelve (12) months of your targeted total annual compensation, totaling $337,500, less applicable withholdings, payable in three (3)
equal installments of $112,000 as follows: The first installment will be paid on August 1, 2002; the second installment will be paid on November 1, 2002; the final installment will be paid in February of 2003 during the period in which the Company
typically pays annual employee bonuses. 

 

	 	(b)	 	If Employee elects COBRA coverage, the Company will pay for the first twelve (12) months of COBRA coverage. 

 
Employee acknowledges and agrees that but for her execution of this Agreement,
she would not otherwise be entitled to the benefits described in paragraph 2(a) and 2(b) above. 
 
3. Stock Option. Employee acknowledges and agrees that any unvested stock options and/or restricted stock presently issued and outstanding will cease to vest on Termination Date. Employee agrees
that he shall have no further rights to any shares which remain unvested as of Termination Date. 
 

 
4. No Other
Payments Due. Employee acknowledges and agrees that he/she has received all salary, accrued vacation, bonuses, or other such sums due to Employee other than amounts to be paid and benefits provided pursuant to Section 2 of this Agreement. In
light of the payment by the Company of all wages due, or to become due to the Employee, the Parties further acknowledge and agree that California Labor Code section 206.5 is not applicable to the Parties hereto. That section provides in pertinent
part as follows: 
 
No employer shall require the
execution of any release of any claim or right on account of wages due, or to become due, or made as an advance on wages to be earned, unless payment of such wages has been made. 
 
5. Employee Release of Claims. In consideration for the obligations of both parties under this
Agreement, Employee hereby fully and forever releases the Company from any claim, duty, obligation or cause of action relating to any matters of any kind, whether known or unknown, suspected or unsuspected, that he/she may possess arising from any
omissions, acts or facts that have occurred up until and including the Effective Date of this Agreement including, without limitation: 
 

	 	(a)	 	any and all claims relating to or arising from Employee’s employment relationship with the Company and termination of that relationship;

 

	 	(b)	 	any and all claims relating to, or arising from, Employee’s right to purchase, or actual purchase of shares of stock of the Company; 

 

	 	(c)	 	any and all claims for wrongful discharge of employment; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both
express and implied; negligent or intentional infliction of emotional distress; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage and defamation;

 

	 	(d)	 	any and all claims for violation of any federal, state or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964, the Age
Discrimination in Employment Act of 1967, and the California Fair Employment and Housing Act; 

 

	 	(e)	 	any and all claims arising out of any other laws and regulations relating to employment or employment discrimination; and any and all claims for attorney’s fees
and costs. 

 
Employee agrees that the release set
forth in the section shall be and will remain in effect in all respects as a complete and general release as to the matters released. This release does not extend to any obligations incurred under this Agreement nor does it abrogate any rights of
Employee pursuant to California Labor Code section 2802. 
 
6. Waiver of Unknown or Future Claims. Employee represents that he/she is not aware of any claim other than the claims that are released by this Agreement. Employee 
 

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acknowledges that he/she is
familiar with the provisions of California Civil Code section 1542, which provides as follows: 
 
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS/HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM/HER MUST HAVE MATERIALLY
AFFECTED HIS/HER SETTLEMENT WITH DEBTOR. 
 
Employee, being aware of such code section, agrees to waive any rights either party may have thereunder, as well as under any other statute or common law principles of similar effect. 
 
7. Nondisclosure of Confidential and Proprietary
Information. Employee agrees that he/she shall continue to maintain the confidentiality of all confidential and proprietary information of the Company as provided by the agreement regarding confidential information and ownership of inventions
(the “Confidentiality Agreement”) between the Company and the Employee. Employee agrees that at all times hereafter, in accordance with the terms of Confidentiality Agreement and applicable state and federal law, Employee shall not
divulge, furnish or make available to any party any confidential information, trade secrets, patents, patent applications, price decisions or determination, invention, customers, proprietary information or other intellectual property rights of the
Company, until after such time as such information has become publicly know otherwise than by act of collusion of Employee. Employee further agrees that for a 12-month period commencing of the Termination Date, he/she will not solicit, recruit, or
induce any employee of QRS Corporation to terminate or alter his/her employment or consulting relationship with the Company. Employee further acknowledges and agrees that he/she has returned or will have returned all the Company’s property and
confidential and proprietary information in his/her possession to the Company as of the Termination Date. 
 
8. Breach of this Agreement. Employee acknowledges that breach of the confidential and proprietary information provision contained
in Section 7 of this Agreement would cause the Company to sustain irreparable harm from such breach, and, therefore, Employee agrees that in addition to any other remedies which the Company may have for any breach of this Agreement or otherwise,
including termination of the Company’s obligations to provide Severance pay and benefits to employee as described in Section 2 of this Agreement, the Company shall be entitled to obtain equitable relief including specific performance and
injunctions, restraining Employee from committing or continuing any such violation of this Agreement. 
 
9. Authority. The Company represents and warrants that the undersigned has the authority to act on behalf of the Company and to
bind the Company and all who may claim through it to the terms and conditions of this Agreement. Employee represents and warrants that he/she has the capacity to act on his/her own behalf and on behalf of all who might claim through him to bind them
to the terms and conditions of this Agreement. Each Party warrants and 
 

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represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or
against any of the claims or causes of action released herein. 
 
10. No Representation. Each party represents that it has carefully read and understands the scope and effect of the provisions of this Agreement. Neither party has relied upon any representations or statements made by the
other party which are not specifically set forth is this Agreement. 
 
11. Costs. The Parties shall each bear their own costs, attorneys’ fees and other fees incurred in connection with this Agreement. 
 
12. Severability. In the event that any provision hereof becomes or is declared by a court of
competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full fore and effect without said provision. 
 
13. Arbitration. The Parties shall attempt, to settle all disputes arising in connection with this Agreement through good faith
consultation. In the event no agreement can be reached on such dispute within fifteen (15) days after notification in writing by either Party to the other concerning such dispute, the dispute shall be settled by binding arbitration to be conducted
in New York before the American Arbitration Associate under its National Employment Dispute Resolution Rules, or by a judge to be mutually agreed upon. The arbitration decision shall be final, conclusive and binding on both Parties and any
arbitration award or decision may be entered in any court having jurisdiction. The Parties agree that the prevailing party in any arbitration shall be entitled to injunctive relief in any court of competent jurisdiction to enforce the arbitration
award. The Parties further agree that the prevailing party in any such proceeding shall be awarded reasonable attorneys’ fees and costs. The parties hereby waive any rights they may have to trial by jury in regard to claims arising out of this
Agreement or the enforcement of this Agreement. 
 
14. Entire Agreement. This Agreement represents the entire agreement and understanding between the Company and Employee concerning Employee’s separation from the Company and supersedes and replaces any and all prior
agreements and understandings concerning Employee’s relationship with the Company and his/her compensation by the Company other than the Confidentiality Agreement described above in Section 7. 
 
15. No Oral Modification. This Agreement may only be
amended in writing signed by Employee and the Company. 
 
16. Governing Law. This Agreement shall be governed by the laws of the State of California without reference to its conflict of laws provisions. 
 
17. Effective Date. This Agreement shall be effective on the eighth day after it has been signed by
the Employee and the Employee has not revoked the Agreement as provided in Section 21 herein below. 
 
18. Counterparts. This Agreement may be executed in counterparts, and each counterpart shall have the same force and effect as an
original and shall constitute an effective, binding agreement on the part of each of the undersigned. 
 

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19.
Assignment. This Agreement may not be assigned by Employee or the Company without prior written consent of the other party. Notwithstanding the foregoing, this Agreement may be assigned by the Company to a corporation controlling, controlled
by or under common control with the Company without consent of the Employee. 
 
20. Acknowledgement of Waiver of Claims under ADEA. Employee acknowledges that he/she is waiving and releasing any rights he/she may have under the Age Discrimination in Employment Act of 1967
(“ADEA”) and that this waiver and release is knowing and voluntary. Employee further acknowledges that he/she has been advised by this writing that (a) he/she should consult with an attorney prior to executing this Agreement; (b) he/she
has up to twenty-one (21) days within which to consider this Agreement; (c) he/she has seven (7) days following the execution of this Agreement to revoke the Agreement (the “Revocation period”); and (d) this Agreement shall not be
effective until the Revocation Period has expired. Notice of revocation shall be made in writing by delivery to the Chief Executive Officer of the Company within the seven day period provided for herein. 
 
21. Voluntary Execution of Agreement. Employee agrees
that he/she is executing this Agreement voluntarily and without any duress or undue influence, with the full intent of releasing all claims. Employee acknowledges that: 
 
He/she has read this Agreement; 
 
He/she has been advised by this writing to consult with legal counsel of his/her own choice or has
voluntarily declined to seek such counsel; 
 
He/she understands the terms and consequences of this Agreement and of the releases it contains; and 
 
He/she is fully aware of the legal and binding effect of this Agreement. 
 
IN WITNESS WHEREOF, the parties have executed this Agreement on the respective dates set forth below.

 

	 QRS CORPORATION
	 	 	 	 
	
	 By:
	 	 /s/    FRED RUFFIN for
LEONARD R. STEIN

	 	 	 	 	 	 /s/    CANDY SMITH

	 	 	 Leonard R Stein
 S.V.P., General Counsel & Secretary
	 	 	 	 	 	 Candy Smith

	
	 Dated:
	 	 7/3/02

	 	 	 	 Dated:
	 	 7/3/02

 

5Agreement, dated January 28, 2003

 
EXHIBIT 10.38

AGREEMENT 
 
THIS AGREEMENT, (this “Agreement”) is dated as of the 28th day of January 2003, by and between QRS Corporation, a Delaware corporation (the “Company”) and Peter R. Johnson (“Mr. Johnson”).

 
RECITALS 
 
WHEREAS, simultaneously with the execution of this Agreement,
Mr. Johnson is resigning from the Board of Directors of the Company (the “Board”); 
 
WHEREAS, unless earlier removed, Mr. Johnson’s current term as a director would have expired at the 2003 Annual Meeting of the Company’s stockholders. 
 
WHEREAS the Company previously granted to Mr. Johnson the
following non-qualified stock options (the “Options”) pursuant to the Company’s 1993 Stock Option/Stock Issuance Plan (as amended and restated through March 1, 2000, the “Plan”): 
 

	 Date of Grant

	 	 Number of Shares

	 	 Exercise Price per Share

	 07/22/1994
	 	 7,500
	 	 $  6.913333

	 05/22/1995
	 	 7,500
	 	 $12.750000

	 05/24/1996
	 	 7,500
	 	 $24.375000

	 05/30/1997
	 	 7,500
	 	 $25.166667

	 05/05/1998
	 	 7,500
	 	 $30.583333

	 09/27/2000
	 	 50,000
	 	 $15.313000

	 01/02/2001
	 	 20,000
	 	 $  12.75000

	 07/26/2001
	 	 10,000
	 	 $15.850000

	 01/02/2002
	 	 20,000
	 	 $13.600000

 
WHEREAS,
pursuant to the terms of the Plan and the stock option agreements dated as of the date of each grant, respectively (collectively, the “Option Agreements”), the vesting of the Options will terminate as of the date hereof; and 
 
WHEREAS, the Company granted Mr. Johnson a Common Stock
Purchase Warrant dated February 9, 2001, No. W-1 (the “Common Stock Purchase Warrant”) under which Mr. Johnson may, subject to the terms and conditions set forth therein, acquire from QRS up to 111,524 fully paid and nonassessible shares
of common stock at a purchase price per share equal to $11.0625 according to the vesting schedule set forth in the Common Stock Purchase Warrant; and 
 
WHEREAS, in connection with Mr. Johnson’s resignation and retirement as a member of the Board, Mr. Johnson and the Company desire to
amend the terms of the Option Agreements to provide for accelerated vesting of certain of the Options, and the extension of the termination date for such options: 
 
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows: 
 

 
AGREEMENT

 
1. Notwithstanding anything to the contrary set
forth in the Plan or in any of the Option Agreements, the vesting of Mr. Johnson’s option to purchase an aggregate of 50,000 shares of Common Stock of the Company, pursuant to the Options dated January 2, 2001, July 26, 2001 and January 2, 2002
(collectively, the “Accelerated Options”), shall be accelerated such that he shall be entitled to exercise such Accelerated Options for that number of shares that would have been vested if he had continued to serve on the Board until March
31, 2004. For the sake of clarity, effective upon the execution of this Agreement (a) Mr. Johnson shall be entitled to purchase up to 127,082 shares of the Common Stock granted pursuant to the Accelerated Options, and (b) the option to purchase the
remaining 10,418 unvested shares shall immediately terminate. 
 
2. Notwithstanding anything to the contrary in the Plan or the Option Agreements, unless previously exercised, the Accelerated Options shall terminate, and Mr. Johnson shall have no further right to exercise the Accelerated Options
at any time after June 30, 2004. 
 
3. Nothing in
this Agreement shall affect, amend or modify in any respect the Common Stock Purchase Warrant. 
 
4. Except as otherwise set forth herein, the terms of the Option Agreements shall survive the execution and delivery of this Agreement. 
 
5. As part of this Agreement, QRS Corporation has agreed: 
 

	 	-	 	To pay Mr. Johnson for Board and Committee fees and expenses due and owing to Mr. Johnson, and Mr. Johnson has declined Board fees for the first calendar quarter of
2003; 

 

	 	-	 	That Mr. Johnson will not be a signatory on the 2002 From 10K; and 

 

	 	-	 	That director indemnification provided by the company will remain in force covering the period of Mr. Johnson’s Board services in accordance the terms of his
written Indemnification Agreement with the Company and the Company’s Bylaws. 

 
6. Effective upon the full execution of this Agreement, Mr. Johnson hereby resigns from the Board. 
 
7. This Agreement shall be construed in accordance with, and governed in all respects by, the laws of the State of California, as applied
to agreements entered into, and to be performed entirely in such state, between residents of such state. 
 
[Signature Page Follows] 
 

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

	 QRS CORPORATION

	
	 By:
	 	 /s/    Elizabeth Fetter

	 	 	 Elizabeth Fetter
 President and CEO

 

	 
	
	 /s/    Peter R. Johnson

	 Peter R. Johnson

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