Document:

SMG2014-04-178KExhibit101

Exhibit 10.1

AND RELEASE OF ALL CLAIMS
SEPARATION AGREEMENT

NOTICE: READ BEFORE YOU SIGN! 
This agreement contains a RELEASE. We advise that you consult an ATTORNEY.

THIS SEPARATION AGREEMENT AND RELEASE OF ALL CLAIMS (“Agreement”) is made and entered into by and between Lawrence Hilsheimer (Employee”) and The Scotts Company LLC (“Company”);

WHEREAS, Employee’s last day of employment with Company shall be April 14, 2014 (the “Termination Date”);

WHEREAS, Employee is covered as a Tier 1 Participant under the Company’s Executive Severance Plan, the benefits of which are non-negotiable and only available upon the Effective Date of this Agreement;

NOW THEREFORE, in exchange for and in consideration of the promises and covenants contained herein, along with other good and valuable consideration, the receipt of which is expressly acknowledged hereby, the parties agree as follows:

1.Severance Benefits.  The parties agree that Employee has been separated from service for a reason covered by the Company’s Executive Severance Plan (and that receipt of this Agreement shall serve as a “Notice of Termination” as described therein) and, thus, Employee is entitled to the benefits available under the Executive Severance Plan (and no other benefits) and only entitled to such benefits upon the Effective Date of this Agreement.  The terms of the Executive Severance Plan are hereby incorporated by reference and any inconsistency between the terms of the Executive Severance Plan and this Agreement will be resolved in favor of the terms of the Severance plan.  The Company agrees to provide Employee with the following (collectively, the “Severance Benefits”) :

(A)    Severance Pay equal to a continuation of salary, at Employee’s regular base pay as of the Termination Date (the “Severance Pay”), payable in accordance with standard Company payroll procedures for Twenty Four (24) months (the “Severance Period”).  The Severance Pay shall be subject to withholding and deductions required by federal, state, and local taxing authorities with each installment.  In the event that Employee accepts re-

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employment with Scotts during the Severance Period, Scotts’ obligation to continue making severance payments will cease as of the date re-employment begins.  The Severance Pay shall begin to be paid on the first payroll date following the Effective Date; provided, however, that if this Agreement would allow the Effective Date to occur in either of two calendar years, then the first payment of the Severance Pay shall be made on the first payroll date that occurs in the second calendar year and that is after the Effective Date.

(B)    Outplacement services from Lee Hecht Harrison as outlined in the Outplacement Summary attached.  The duration of outplacement services will be as outlined in the Outplacement Summary or until Employee accepts new employment, whichever occurs first.  

(C)    Employee shall be eligible to elect COBRA continuation benefits as to medical, dental and vision insurance benefits, and participation in the Employee Assistance Program as provided by applicable law.  At the time each payment of the Severance Pay is made pursuant to paragraph 1A, the Company shall also pay Employee an amount equal to the COBRA premium charged by the Company to terminated employees minus the premium Employee paid as an active employee for the benefits for which Employee was enrolled on the Termination Date, all calculated at the rates in effect at the Termination Date (a “Benefit Payment”).  This Benefit Payment will be made for each month starting with the month following the Termination Date for the length of the Severance Period, up to a maximum of eighteen (18) months.   This payment shall be subject to any applicable withholding and deductions required by federal, state, and local taxing authorities.

(D)    Employee will be paid a Prorated Annual Bonus Award, which is the amount Employee would have received had Employee remained employed for the entire fiscal year/performance period, but pro-rated based upon the actual base salary paid to the Employee during Employee’s period of employment during the fiscal year/performance year through the Termination Date.  The Prorated Annual Bonus Award, if any, will be paid no later than December 15 of the calendar year following the fiscal year/performance year during which Employee’s employment terminated.

(E)    The restricted stock units and related dividend equivalents granted to Employee on April 1, 2013, to the extent not previously vested, shall be vested on the Termination Date.  Such restricted stock units and related dividend equivalents will be paid to Employee in accordance with, and subject to, the terms of the agreement evidencing such award.

The Severance Benefits described herein shall be the only amounts paid by or on behalf of Company, and no interest on this amount shall be paid.  

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Employee acknowledges and agrees that the benefits described above are the benefits payable to Employee pursuant to the Executive Severance Plan and that he/she is not entitled to any other benefits under the Executive Severance Plan or any other plan or agreement.  Employee otherwise acknowledges hereby the receipt of all wages and other compensation or benefits to which Employee is entitled as a result of Employee’s employment with Company through the Termination Date.

Employee acknowledges and agrees that all Severance Benefits paid must be repaid and the payment of any future Severance Benefits, if any, will cease in the event that the Company, in its sole discretion, determines that Employee has breached any post-employment obligations owed to the Company, including but not limited to those set forth in any non-competition, non-solicitation and confidentiality provision signed by the Executive.  

2.    Release of Claims.  Employee, on behalf of Employee and Employee’s spouse, personal representatives, administrators, minor children, heirs, assigns, wards, agents, and all other persons claiming by or through Employee, does hereby forever release and discharge Company and its respective officers, directors, shareholders, agents, employees, affiliates, subsidiaries, divisions, predecessors, successors, and assigns (the “Released Parties”) from any and all charges, claims, demands, judgments, causes of action, damages, expenses, costs, and liabilities of any kind whatsoever.  Employee expressly acknowledges that the claims released by this paragraph include all rights and claims relating to Employee’s employment with Company and the termination thereof, including without limitation any claims Employee may have under the Age Discrimination in Employment Act, as amended by the Older Worker Benefit Protection Act, Title VII of the Civil Rights Act of 1964, as amended, the Equal Pay Act, the Americans with Disabilities Act, the Employee Retirement Income Security Act, the Worker Adjustment Retraining and Notification (WARN) Act, Ohio Revised Code Chapter 4112, Family and Medical Leave Act and any other federal, state, or local laws or regulations governing employment relationships.  This release specifically and without limitation includes a release and waiver of any claims for employment discrimination, wrongful discharge, breach of contract, or promissory estoppel, and extends to all claims of every nature and kind, whether known or unknown, suspected or unsuspected, presently existing or resulting from or attributable to any act or omission of the Released Parties occurring prior to the execution of this Agreement.  The release contained herein does not apply to any claim or to rights or claims first arising after the Effective Date of this Agreement, nor does it apply to any claims for unemployment compensation, workers compensation benefits, or vested benefits under ERISA.

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3.    Right to Participate in Charge.  Nothing in this agreement shall be construed to mean that Employee may not file a charge with a governmental agency, or participate in any investigation of a charge conducted by any governmental agency.  Employee nevertheless understands and agrees that because of the waiver and release, he freely provides by signing this Agreement, he cannot obtain any monetary relief or recovery from the Released Parties in any proceeding.

4.    Knowing and Voluntary Act.  Employee acknowledges and agrees that the release set forth above is a general release.  Employee, having been encouraged to and having had the opportunity to be advised by counsel, expressly waives all claims for damages which exist as of this date, but of which Employee does not now know or suspect to exist, whether through ignorance, oversight, error, negligence, or otherwise, and which, if known would materially affect Employee’s decision to enter into this Agreement.  Employee further agrees that Employee accepts the Severance Benefits as a complete compromise of matters involving disputed issues of law and fact and assumes the risk that the facts and law may be other than Employee believes.  Employee further acknowledges and agrees that all the terms of this Agreement shall be in all respects effective and not subject to termination or rescission by reason of any such differences in the facts or law, and that Employee provides this release voluntarily and with full knowledge and understanding of the terms hereof.

5.    Revocation Period.  Employee specifically acknowledges and understands that this Agreement is intended to release and discharge any claims of Employee under the Age Discrimination in Employment Act, as amended by the Older Worker Benefit Protection Act (OWBPA).  Under the OWBPA, Employee has 21 calendar days in which to consider this Agreement and Employee will have 7 calendar days after signing this Agreement in which to revoke Employee’s acceptance of this Agreement.  However, pursuant to paragraph 19, below, Employee may sign this Agreement at any time after the Termination Date provided that this Agreement is signed and the 7 calendar day period for revocation has passed (without revocation) no later than the 60th day after the Termination Date.  To revoke, Employee must deliver written notice of revocation to Company’s Human Resources Department at 14111 Scottslawn Rd; Marysville, Ohio 43041, Attention: Denise Stump.  This Agreement will not be effective or enforceable unless it is signed in accordance with Paragraph 19 and is not revoked before the revocation period has expired.  The Effective Date is the day after the last day of the revocation period following Employee’s execution of this Agreement.  

6.    Non-disparagement.  Employee agrees that Employee will not make any statement to any third party that Employee could reasonably foresee would cause harm to the personal or professional reputation of the 

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Released Parties.  The Company will instruct its CEO, Senior Executive Staff, and Human Resource Executives not to make any statement to any third party that he/she could reasonably foresee would cause harm to the personal or professional reputation of Employee.  For example, if asked about the reason for Employee's departure, the parties agree that a permissible response would be:  Employee's departure was not related to any disagreement relating to the Company's operations, policies, practices or financial reporting.

7.    No Admission of Liability.  Neither this Agreement, nor any term contained herein, may be construed as, or may be used as, an admission on the part of either party of any fault, wrongdoing, or liability whatsoever.

8.    Survivorship.  Should Employee die or become totally disabled following the Termination Date but before the payments due Employee under Paragraph 1 above have been made, any remaining payments shall be made to Employee (or Employee’s designated beneficiary, as applicable).  

9.    Return of Property.  Employee agrees to return all Company property remaining in Employee’s possession or control, including without limitation any and all equipment, documents, credit cards, hardware, software, source code, data, keys or access cards, files, or records on or before the Termination Date.

10.    Confidentiality.  This Agreement is and shall remain confidential.  Employee agrees not to, at any time, disclose the terms of this Agreement, in whole or in part, including the existence and amount of the Severance Benefits, to any individual or entity without the prior written consent of Company or unless required by law.  Employee may, however, disclose the terms of this Agreement to Employee’s attorney, tax advisor, and immediate family, provided that any such persons agree in advance to be bound by this confidentiality provision.  Employee further acknowledges and agrees that any confidentiality, nondisclosure, noncompetition, and nonsolicitation obligations to Company under any prior agreement, are not being released hereby and will specifically survive the termination of Employee’s employment and this Agreement.  Employee expressly agrees to keep and maintain Company confidential information confidential, and not to use or disclose such information, directly or indirectly, without the prior written consent of Company or unless required by law.  Employee agrees that the provisions of this paragraph are material terms of this Agreement.

11.    Cooperation with Litigation.  Employee will cooperate fully with Company in its defense of any lawsuit filed over matters that occurred during the tenure of Employee’s employment with Company, and Employee agrees to provide full and accurate information with respect to same.  Employee further agrees not to assist any party in maintaining any lawsuit against any of 

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the Released Parties, and will not provide any information to anyone concerning any of the Released Parties, unless compelled to do so by valid subpoena or other court order, and in such case only after first notifying Company sufficiently in advance of such subpoena or court order to reasonably allow Company an opportunity to object to same. 

12.    Cooperation with Governmental Investigations.  Employee will cooperate fully with Company in any investigation, audit, or inquiry conducted by or on behalf of any federal, state, or local governmental agencies regarding the Company, including, but not limited to, providing truthful information to the Company and making herself/himself available to the Company upon reasonable notice for purposes of being interviewed or otherwise providing assistance to the Company.  Employee further agrees to notify the Company through the Director of Litigation, David Faure, at 14111 Scottslawn Road, Marysville, Ohio 43041 should he/she be contacted by a governmental agency regarding a governmental investigation, audit or inquiry regarding the Company.

13.    Choice of Law.  The validity, construction and interpretation of this Agreement shall be governed by the laws of the State of Ohio.    

14.    Execution in Parts.  This Agreement may be executed in multiple counterparts, each of which shall constitute an original, and all of which shall constitute a single Agreement.

15.    No Waiver of Terms.  Failure to insist upon strict compliance with any of the terms, covenants, or conditions of this Agreement shall not be deemed a waiver of any such term, covenant, or condition, nor shall any failure at any one time or more times be deemed a waiver or relinquishment at any other time or times of any right under this Agreement.

16.    Modifications.  No modification or amendment of this Agreement shall be effective unless the same is in a writing duly executed by all the parties hereto.

17.    Assignment.  Company may assign, in whole or in part, its rights and obligations under this Agreement, and the rights of Company hereunder shall inure to the benefit of, and the obligations of Company hereunder shall be binding upon, its successors and assigns.  Employee’s rights and obligations hereunder may not be assigned.

18.    Entire Agreement.  Except as otherwise set forth herein, this Agreement sets forth the entire Agreement between Company and Employee and supersedes and replaces any and all prior or contemporaneous representations or agreements, whether oral or written, relating to the subject matter hereof.

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19.    Method of Acceptance.  To accept, Employee must sign the Agreement.  Once Employee has accepted the Agreement, Employee shall deliver a signed and dated copy hereof to Tasha Potts in Company’s Human Resources Department, 14111 Scottslawn Road, Marysville, Ohio 43041. This Agreement cannot be accepted until after the Termination Date and will not be effective if signed by Employee prior to the Termination Date.  To be effective, this Agreement must be signed by Employee after the Termination Date and the 7 calendar day period for revocation must expire (without revocation) no later than the 60th day following the Termination Date.  Employee’s failure to deliver a signed and irrevocable Agreement in a timely manner will excuse Company from timely payment.

IN WITNESS WHEREOF, EACH OF THE UNDERSIGNED, HAVING RECEIVED ALL THE ADVICE DEEMED NECESSARY, AND HAVING CAREFULLY READ AND UNDERSTOOD THIS AGREEMENT, DOES HEREBY SIGN AND ACCEPT THIS AGREEMENT AS OF THE DATE SET FORTH BELOW.

	
			
	April 17, 2014
	 
	/s/ Lawrence Hilsheimer

	Date
	 
	Lawrence Hilsheimer

	 
	 
	 

	April 15, 2014
	 
	THE SCOTTS COMPANY LLC

	Date
	 
	By:  /s/ Denise S. Stump

	 
	 
	Its:  Executive Vice President, Global HR    

    
            

    

            

            

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InitialsAmendmentNo1toMasterRepurchaseAgreement

AMENDMENT NO. 1 TO 

MASTER REPURCHASE AGREEMENT

This Amendment No. 1 (this “Amendment”), dated as of April 15, 2014, amends that certain Master Repurchase Agreement, dated as of March 3, 2014 (the “Agreement”), among HLSS Mortgage Master Trust, as seller (the “Seller”), Barclays Bank PLC, as purchaser and agent (the “Purchaser”), and Home Loan Servicing Solutions, LTD., as guarantor (the “Guarantor”). Capitalized terms used herein but not otherwise defined shall have the meanings given to such terms in the Agreement.   

WHEREAS, the parties hereto desire to amend the Agreement as described below;
WHEREAS, this Amendment is not effective until the execution and delivery of this Amendment by the parties hereto;
NOW, THEREFORE, pursuant to the provisions of the Agreement concerning modification and amendment thereof, and in consideration of the amendments, agreements and other provisions herein contained and of certain other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged by the parties hereto, it is hereby agreed between the Seller, the Guarantor and the Purchaser as follows:
Section 1.Amendment.
1    (a)    Section 14(g)(ii) of the Agreement is hereby amended by deleting clauses (A), (B) and (C) in their entirety and replacing them with the following:
(A)    as of the close of business on the last Business Day of any calendar month, beginning in March 2014, the Guarantor shall satisfy the Liquidity Requirement;
(B)    as of the close of business on the last Business Day of any calendar month, beginning in March 2014, the Guarantor or Servicer shall satisfy the Adjusted Tangible Equity Requirement; and
(C)    as of the close of business on the last Business Day of any calendar month, the average net income of the Guarantor or Servicer, determined in accordance with GAAP, for any two consecutive fiscal quarters shall be $1.00 or greater.
Section 2.    Effect of Amendment.  Except as expressly amended and modified by this Amendment, all provisions of the Agreement shall remain in full force and effect and all such provisions shall apply equally to the terms and conditions set forth herein.  After this Amendment becomes effective, all references in the Agreement (or in any other document relating to the Mortgage Loans) to “this Agreement,” “hereof,” “herein” or words of similar effect referring to such Agreement shall be deemed to be references to such Agreement as amended by this Amendment.  This Amendment shall not be deemed to expressly or impliedly waive, amend or supplement any provision of the Agreement other than as set forth herein.

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Section 3.    Successors and Assigns.  This Amendment shall be binding upon the parties hereto and their respective successors and assigns.
Section 4.    Section Headings.  The various headings and sub-headings of this Amendment are inserted for convenience only and shall not affect the meaning or interpretation of this Amendment or the Agreement or any provision hereof or thereof. 
Section 5.    Representations.  In order to induce the Purchaser to execute and deliver this Amendment, the Seller hereby represents to Purchaser that as of the date hereof (i) it is in full compliance with all of the terms and conditions of the Program Documents and remains bound by the terms thereof and (ii) no Default or Event of Default has occurred and is continuing under the Program Documents.
Section 6.    GOVERNING LAW.  THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS EXCEPT SECTIONS 5-1401 AND 5-1402 OF NEW YORK GENERAL OBLIGATIONS LAW, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
Section 7.    Counterparts.  This Amendment may be executed in one or more counterparts and by the different parties hereto on separate counterparts, including without limitation counterparts transmitted by facsimile, each of which, when so executed, shall be deemed to be an original and such counterparts, together, shall constitute one and the same agreement. 
Section 8.    Trustee Limitation of Liability.  It is expressly understood and agreed by the parties hereto that (a) this Amendment is executed and delivered by Wilmington Savings Fund Society, FSB, d/b/a Christiana Trust, not individually or personally but solely as the trustee for the Seller, in the exercise of the powers and authority conferred and vested in it, (b) the representations, undertakings and agreements herein or in any other agreement related hereto, as applicable, made on the part of the Seller are made and intended not as personal representations, undertakings and agreements by Wilmington Savings Fund Society, FSB, d/b/a Christiana Trust but are made and intended for the purpose of binding only the Seller, (c) nothing herein contained or in any other agreement related hereto shall be construed as creating any liability on Wilmington Savings Fund Society, FSB, d/b/a Christiana Trust, individually or personally, to perform any covenant either expressed or implied contained herein or therein, as applicable, all such liability, if any, being expressly waived by the parties who are signatories to this Amendment and any other related agreement and by any person claiming by, through or under such parties and (d) under no circumstances shall Wilmington Savings Fund Society, FSB, d/b/a Christiana Trust be personally liable for the payment of any indebtedness or expenses of the Seller or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Seller under this Amendment and any other agreement related hereto.

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IN WITNESS WHEREOF, each undersigned party has caused this Amendment No. 1 to the Master Repurchase Agreement to be duly executed by one of its officers thereunto duly authorized as of the date and year first above written.
HLSS MORTGAGE MASTER TRUST, as Seller

By: Wilmington Savings Fund Society, FSB, d/b/a Christiana Trust, not in its individual capacity but solely as trustee of Seller

By:                            
Name:  
Title:  

HOME LOAN SERVICING SOLUTIONS, LTD., as Guarantor

By:                            
Name:
Title:

BARCLAYS BANK PLC, as Purchaser and Agent

By:                            
Name:
Title:

Amendment No. 1 to HLSS/Barclays Master Repurchase Agreement

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