Document:

ex10-1.htm

    Exhibit
10.1

     

    Agreement

    
       

      THIS
AGREEMENT is made this 5th day
of  November, 2009 (“Effective Date”) by and between IMedicor, Inc, a
Nevada Corporation whose address is 523 Avalon Gardens Drive, Nanuet, New York
10954, USA ("IMedicor") and Direct Medical Solutions Corp, A Connecticut
Corporation  whose address is  5 Colby Way, Avon, CT 06001
(the “Direct Medical”).

    

    WITNESSETH:

     

    WHEREAS, iMedicor is a secure,
HIPAA compliant online portal that creates a virtual healthcare community
amongst physicians and other medical professionals for the purpose of real-time
Health Information Exchange. Physicians are provided with free, secure HIPPA
compliant transport accounts, similar to e-mail, that enable them to share
personal health information with other participating physicians;

    

    WHEREAS, Direct Medical
represents products and services for the medical industry that: Generate
Additional Revenue Streams; Provide Cost Savings and Streamline Workflow; Help
Patients Save Time, Money and Doctors Achieve Better Outcomes; and Assist
Physicians and Medical Practices to find ways to Enhance Patient
Satisfaction;

    

    WHEREAS, both parties are
interested in forming a strategic and marketing alliance beneficial to both
organizations.

    

    NOW, THEREFORE, for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

    

    1.
OBLIGATIONS OF THE PARTIES

    

    A.           Direct
Medical will actively market membership / enrollments into iMedicor throughout
their network Key benefits to enrolling participants will be, but not limited
to:

    

    a.           HIPAA
Compliant secure transport network for the movement of digital medical records
and images;

    b.           The
ability to create an individual community, access other communities, expand peer
collaboration and referral networking; and

    c.           Access
to educational resources as certified CME, non-CME or product specific
educational resources.

    

    B.           iMedicor
will actively promote membership in Direct Medical throughout its network the
enrollment process will consist of:

    

    a.           Direct
link from your web site to iMedicor registration page, tagging the doctor as
your lead;

    b.           Direct
link from a doctor to a registration page that will designate the doctor as your
lead;

    c.           Registration
can be by individual doctor, groups, organizations etc, all will be tagged as
your lead;

    d.           Revenue
share will be in perpetuity for as long as our contract is in place. In the
event that for any reason we cancel the contract on either part, revenue share
will continue for one year after the cancellation date. In the event that your
business files for bankruptcy or ceases to operate for any reason the revenue
share will crease immediately;

    e.           There
are no exclusive arrangements with iMedicor; and

    f.           The
term of all agreements are two years with automatic one year
renewals.

    

    C.           iMedicor
will provide complete on-line training to Direct Medical sales people in regard
to the features and functions of the iMedicor social Community Portal and
Personal Health Information Exchange. During the training process we will
identify the registration process, the identification and organization of the
lead system, identification of revenue, commission’s reports and payment
procedures.

    

    D.           IMedicor’s
revenue model is to charge Pharma or other industry related sponsors a fee per
qualified click through interaction (Deliver content, order samples, set
appointment with a rep, speak to higher authorities with technical or medical
questions). In addition, in certain instances, iMedicor generates revenue
through revenue sharing; upgrade services, special events and other means as
identified from time to time.

    

    E.           iMedicor
would ask for a mirror for any activity initiated from iMedicor through its
network that would generate revenue through Direct Medical products, services or
sponsored ships and / or marketing and sales programs introduced through Direct
Medical and its associated organizations to the iMedicor network. Revenue
sharing to be determined, but should be reflective of a mirror image of the
revenue share offered by iMedicor to Direct Medical.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    2.
COMPENSATION

     

    Every registration into iMedicor system
through the direct efforts of Direct Medical will be tagged as coming through
the Direct Medical organization. Revenue generated through that registration
will earn Direct Medical 17% of the revenue received by iMedicor though sales
Direct Medical Customers. In addition, every registration into the Direct
Medical system through the direct efforts of iMedicor will be tagged as coming
through the iMedicor organization. Revenue generated through that registration
will earn iMedicor 17% of the revenue received by Direct Medical though sales
iMedicor Customers.

    

    Direct Medical shall pay to IMedicor,
on a monthly basis (on or about the 15th
day), compensation due, if any, pursuant to this paragraph
2.  Commission shall only be paid on amounts which have actually been
collected or received by Direct Medical from IMedicor Clients during the
preceding month.  A statement reflecting the full amounts collected by
Direct Medical in connection with sales of its products and services to IMedicor
Clients, and as well as any set-offs during the preceding quarter shall
accompany Direct Medical monthly payments to IMedicor.  In addition,
Direct Medical will provide to IMedicor a quarterly statement of all monies
received in connection with such sales of its products and services to IMedicor
Clients during the preceding quarter.

    

    Direct Medical shall maintain accurate
and complete records and accounting books with regard to the commissions due
under this Agreement to IMedicor, including, without limitation, all information
needed to compute and verify the amounts payable to IMedicor
hereunder.  During the term of this Agreement, but not later than the
date that is two (2) years following the termination or expiration of the term
of this Agreement, upon reasonable advance written notice, and at IMedicor sole
cost and expense subject to the last sentence of this paragraph, IMedicor will
have the right to examine, or appoint a third party auditor to examine, those
books and records at any time during Direct Medical’s normal business hours at
the place where such books and records are normally
maintained.  Direct Medical will reasonably cooperate with IMedicor
representatives to insure compliance with the foregoing.  In the event
an examination of Direct Medical’s books and records reveals a deficiency in
payments paid to IMedicor of ten percent (10%) or more of the total amount
accounted to IMedicor during the period of the audit, Direct Medical shall pay
the underpayment and interest at rate of 6% from the date the Commission due to
IMedicor under this Agreement.

    

    iMedicor shall pay to Direct Medical,
on a monthly basis (on or about the 15th
day), compensation due, if any, pursuant to this paragraph
2.  Commission shall only be paid on amounts which have actually been
collected or received by iMedicor from Direct Medical Clients during the
preceding month.  A statement reflecting the full amounts collected by
iMedicor in connection with sales of its products and services to Direct Medical
Clients, and as well as any set-offs during the preceding quarter shall
accompany iMedicor monthly payments to Direct Medical.  In addition,
iMedicor will provide to Direct Medical a quarterly statement of all monies
received in connection with such sales of its products and services to Direct
Medical Clients during the preceding quarter.

    

    iMedicor shall maintain accurate and
complete records and accounting books with regard to the commissions due under
this Agreement to Direct Medical, including, without limitation, all information
needed to compute and verify the amounts payable to Direct Medical
hereunder.  During the term of this Agreement, but not later than the
date that is two (2) years following the termination or expiration of the term
of this Agreement, upon reasonable advance written notice, and at Direct Medical
sole cost and expense subject to the last sentence of this paragraph, Direct
Medical will have the right to examine, or appoint a third party auditor to
examine, those books and records at any time during iMedicor’s normal business
hours at the place where such books and records are normally
maintained.  iMedicor will reasonably cooperate with Direct Medical
representatives to insure compliance with the foregoing.  In the event
an examination of iMedicor’s books and records reveals a deficiency in payments
paid to Direct Medical of ten percent (10%) or more of the total amount
accounted to Direct Medical during the period of the audit, iMedicor shall pay
the underpayment and interest at rate of 6% from the date the Commission due to
Direct Medical under this Agreement.

     

    3.
TERM

     

    This
Agreement shall commence on the Effective Date of this Agreement and shall
remain in effect for a period of 2 years (“Initial Term”). Thereafter, this
Agreement shall be renewed automatically on an annual basis, unless one party
notifies the other of its desire to terminate this Agreement at least sixty 90
days prior to the expiration of the Initial Term or then current renewal term,
as applicable, or unless a new Agreement is signed between the Direct Medical
and IMedicor which will then invalidate this Agreement.

    

    4.
INTELLECTUAL PROPERTY

     

    Each
party shall exclusively own its respective trademarks and service marks,
copyrights, trade secrets, and patents (collectively, the "Intellectual
Property") and will not have any claim or right to the other party’s
Intellectual Property  by virtue of this Agreement or the performance
of services hereunder. Neither party will take any action or make any claim to
any Intellectual Property belonging to the other party, whether during the Term
of this Agreement or thereafter.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    5.
TERMINATION

    

    A. Termination Without
Cause.  Both parties may terminate this Agreement upon ninety
(“90”) days written notice to the other party at the address stated in this
Agreement.

    

    B.  Both parties shall have
the right to include this Agreement as an asset of their Company.

    

    C. Upon termination of this Agreement
for any reason whatsoever, both parties shall have the right to remove any
references to the other party from any of its materials and/or websites as well
as be authorized to notify their customers of said termination without penalty
and/or recourse by the other party if only if said notification contains no
disparaging or disrespectful comments concerning the other party.

    

    6.
REPRESENTATIONS AND WARRANTIES

    

    A. Each
party represents and warrants that it has the right, title, interest and
authority to enter into this Agreement and to fully perform its obligations
hereunder, and that the rights granted hereunder shall not violate the rights of
any third party. Each party represents and warrants that its conduct hereunder
shall conform to all applicable federal, state and local law and
regulation.

    

    B.  Both
parties will not have liability for any damages other than direct damages. Both
parties  DO NOT MAKE ANY WARRANTY REGARDING THE QUALITY OF ITS
SERVICES. Both parties DO NOT MAKE ANY WARRANTY THAT ALL ERRORS OR FAILURES IN
ITS WEBSITES WILL BE CORRECTED.  Both parties EXPRESSLY DISCLAIM ALL
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. BEYOND THE
WARRANTIES CONTAINED IN THIS PARAGRAPH, Both parties DO  NOT WARRANT
THAT their SITES ARE ERROR-FREE OR THAT OPERATION OF their SITES WILL BE SECURE
OR UNINTERRUPTED. THESE LIMITATIONS SHALL SURVIVE AND APPLY NOTWITHSTANDING THE
VALIDITY OF THE LIMITED REMEDIES PROVIDED FOR IN THIS AGREEMENT.

    

    7.
INDEMNITY

     

    Notwithstanding
anything to the contrary herein, Direct Medical shall indemnify, defend and hold
harmless IMedicor, its officers, directors, shareholders, employees, parent and
affiliate entities, agents and representatives, against all damages, claims,
liabilities, losses and other expenses, including without limitation, reasonable
attorney fees and costs, whether or not a lawsuit or other proceedings is filed,
that in any way arise out of or related to: (a) any claim against IMedicor
arising out of any breach of any covenants, warranties, representations and
agreements made by Direct Medical to any third party and/or (b) Direct Medical's
material breach of any provision of this Agreement; (c) the grossly negligent or
willful acts or omissions of Direct Medical; and/or (d) any claim by any party
based on Direct Medical’s Products failing to operate and/or function in any
manner so advertised by Direct Medical and/or its agents. In the event that
Direct Medical fails to promptly indemnify and defend such claims and/or pay
expenses as provided above, IMedicor shall have the right to defend itself and
Direct Medical shall reimburse IMedicor for all of its reasonable attorneys'
fees, costs and damages incurred in settling or defending such claims within
sixty (60) days of IMedicor’ request for same.

    

    Notwithstanding
anything to the contrary herein, IMedicor shall indemnify, defend and hold
harmless Direct Medical, its officers, directors, shareholders, employees,
parent and affiliate entities, agents and representatives, against all damages,
claims, liabilities, losses and other expenses, including without limitation,
reasonable attorney fees and costs, whether or not a lawsuit or other
proceedings is filed, that in any way arise out of or related to: (a) any claim
against Direct Medical arising out of any breach of any covenants, warranties,
representations and agreements made by IMedicor to any third party and/or (b)
IMedicor material breach of any provision of this Agreement; (c) the grossly
negligent or willful acts or omissions of IMedicor; and/or (d) any claim by any
party based on IMedicor Products failing to operate and/or function in any
manner so advertised by IMedicor and/or its agents. In the event that IMedicor
fails to promptly indemnify and defend such claims and/or pay expenses as
provided above, Direct Medical shall have the right to defend itself and
IMedicor shall reimburse Direct Medical for all of its reasonable attorneys'
fees, costs and damages incurred in settling or defending such claims within
sixty (60) days of Direct Medical’ request for same.

    

    8. NO
JOINT VENTURE

     

    Nothing
in the Agreement shall be deemed to constitute, create, give effect to or
otherwise recognize a partnership, joint venture or formal business entity of
any kind; and the rights and obligations of the Parties shall be limited to
those expressly set forth herein. No Party is granted any right or authority to
assume or create any obligation or responsibility, express or implied, on behalf
of, or in the name of, another Party or to bind another in any matter or thing
whatsoever.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    9.
CONFIDENTIALITY

    

    A.
"Confidential Information" as used in this Agreement shall mean any and all
technical and non-technical information including but not limited to patent,
copyright, trade secret, and proprietary information, techniques, sketches,
drawings, models, inventions, know-how, processes, apparatus, equipment,
algorithms, software programs, software source documents, and formulae related
to the current, future, and proposed products and services of IMedicor and its
affiliates, and includes, without limitation, IMedicor and its affiliates
information concerning research, experimental work, development, design details
and specifications, engineering, financial information, procurement
requirements, purchasing, manufacturing, Direct Medical lists, business
forecasts, sales and merchandising, and marketing plans and
information.  "Confidential Information" also includes proprietary
and/or confidential information of any third party that may disclose such
information to Direct Medical in the course of IMedicor’ business. All
Confidential Information disclosed both orally and in writing by the disclosing
party ("Discloser") will be considered Confidential Information by the receiving
party ("Recipient") and subject to terms of this Agreement, even if such
information is not conspicuously designated as "Confidential" or even when
provided orally and not identified as confidential at the time of
disclosure.

    

    B. All
Confidential Information disclosed both orally and in writing by either party
will be considered Confidential Information by Direct Medical and subject to
terms of this Agreement, even if such information is not conspicuously
designated as "Confidential" or even when provided orally and not identified as
confidential at the time of disclosure.

    

    C. Direct
Medical acknowledges that Discloser has over many years devoted substantial
time, effort and resources to developing Discloser’s trade secrets and its other
confidential and proprietary information, as well as Discloser’s relationships
with Direct Medicals, suppliers, employees and others doing business with
Discloser; that such relationships, trade secrets and other information are
vital to the successful conduct of Discloser’ business in the future; that
Discloser, in the furtherance of its business, is providing Recipient with the
opportunity and support necessary to them to establish personal and professional
relationships with Direct Medicals, suppliers, employees and others having
business relationships with Discloser and is affording Recipient access to
Discloser’ trade secrets and other confidential and proprietary information;
that because of the opportunities and support so provided to Recipient and
because of Recipient's access to Discloser’ confidential information and trade
secrets, Recipient would be in a unique position to divert business from
Discloser and to commit irreparable damage to Discloser were Recipient to be
allowed to compete with Discloser or to commit any of the other acts prohibited
by this Section 9 of the Agreement; that the enforcement of the restrictive
covenants against Recipient would not impose any undue burden upon Recipient;
that none of the restrictive covenants is unreasonable as to period or
geographic area; and that the ability to enforce the restrictive covenants
against Recipient is a material inducement to the decision of Discloser to
consummate this Agreement

    

    D.
Recipient hereby agrees that it will not make use of, disseminate, or in any way
disclose any Confidential Information of Discloser to any person, firm, or
business, except to the extent necessary for negotiations, discussions, and
consultations with personnel and/or authorized representatives of Discloser, any
purpose of Discloser authorized by this Agreement and any purpose Discloser may
hereafter authorize in writing. Recipient hereby also agrees that it will use
the Confidential Information disclosed by Recipient for informational purposes
only. Recipient hereby further agrees that it shall not use the Confidential
Information of Recipient in the production and/or the providing of any products
and/or services now or in anytime in the future.

    

    E.
Recipient agrees that it shall treat all Confidential Information of Recipient
with the same degree of care as it accords to its own Confidential Information,
and Recipient represents that it exercises reasonable care to protect its own
Confidential Information.

    

    F.
Recipient hereby agrees that it shall disclose Confidential Information of
Discloser only to those of its officer(s), manager(s), and/or employee(s) who
need to know such information and certifies that such officer(s), manager(s),
and/or employee(s) have previously agreed, either as a condition of employment
or in order to obtain the Confidential Information, to be bound by terms and
conditions substantially similar to those of this Agreement.

    

    G.
Recipient will immediately give notice to Recipient of any unauthorized use or
disclosure of the Confidential Information. Recipient agrees to assist Recipient
in remedying any such unauthorized use or disclosure of the Confidential
Information.

    

    H. Upon
the request of Discloser and/or termination of this Agreement, the Recipient
will promptly return all confidential information furnished hereunder and all
copies thereof.

    

    I.
Remedies. In the event of a breach or a threatened breach of any of the
Provisions and/or Covenants set forth in this Section 9 of the Agreement above
(the ''Covenants''), Discloser will, in addition to the remedies provided by
law, have:

     

    (a) the
right and remedy to have the Covenants specifically enforced by any court having
equity jurisdiction, it being acknowledged and agreed that any material breach
of any of the Covenants will cause irreparable injury to Discloser and that
money damages will not provide an adequate remedy to Discloser; and

    

    (b) the
right and remedy to require a person to account for and pay over to Discloser
all compensation, profits, moneys, accruals, increments or other benefits
(collectively the ''Benefits'') derived or received by Recipient as a result of
any transactions constituting a breach of any of the Covenants, and Recipient
hereby agrees to account for and pay over the Benefits to
Discloser.

    

    J. The
obligations of the parties set forth in this paragraph 9 of this Agreement shall
survive the termination of this Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    10.
PUBLICITY

     

    The
Parties agree that all publicity and public announcements concerning the
formation and existence of this Agreement shall be jointly planned and
coordinated by and among the Parties. Neither party shall disclose any of the
specific terms of this Agreement to any third party without the prior written
consent of the other party, which consent shall not be withheld unreasonably.
Notwithstanding the foregoing, any party may disclose information concerning
this Agreement as required by the rules, orders, regulations, subpoenas or
directives of a court, government or governmental agency, after giving prior
notice to the other party.

    

    11.
EFFECT OF TERMINATION

     

    Upon
termination or expiration of this Agreement, all rights granted to the Direct
Medical and IMedicor shall forthwith revert to the granting party.

    

    12. FORCE
MAJEURE

     

    Neither
party will be liable for, or will be considered to be in breach of or default
under this Agreement on account of, any delay or failure to perform as required
by this Agreement as a result of any causes or conditions that are beyond such
Party's reasonable control and that such Party is unable to overcome through the
exercise of commercially reasonable diligence. If any force majeure event
occurs, the affected Party will give prompt written notice to the other Party
and will use commercially reasonable efforts to minimize the impact of the
event.

    

    13.
NOTICES

    

    A. Any
notice required to be given pursuant to this Agreement shall be in writing and
mailed by certified or registered mail, return receipt requested or delivered by
a national overnight express service.

    

    For
IMedicor:

    Fred Zolla, CEO

    IMedicor, Inc.

    523 Avalon Gardens Drive

    Nanuet, New York 10954

    United States of America

    

    For the
Direct Medical:

    

                                                  
 Marian Bartosiewicz, President

    Direct Medical Solutions
Corp,

    5 Colby Way

    Avon, CT 06001

     
 

    

    B. Either
party may change the address to which notice or payment is to be sent by written
notice to the other party pursuant to the provisions of this
paragraph.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    14.
JURISDICTION DISPUTES

    

    A. This
Agreement shall be governed by the internal laws State of New York.

    

    B. All
disputes hereunder shall be resolved in the applicable state or federal courts
in County of Rockland in the State of New York. The parties consent to the
jurisdiction of such courts, agree to accept service of process by mail, and
waive any jurisdictional or venue defenses otherwise available.

    

    15.
AGREEMENT BINDING ON SUCCESSORS

     

    This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto, their heirs, administrators, successors and assigns.

    

    16.
WAIVER

     

    No waiver
by either party of any default shall be deemed as a waiver of any prior or
subsequent default of the same or other provisions of this
Agreement.

    

    17.
SEVERABILITY

     

    If any
provision hereof is held invalid or unenforceable by a court of competent
jurisdiction, such invalidity shall not affect the validity or operation of any
other provision and such invalid provision shall be deemed to be severed from
the Agreement.

    

    18.
ASSIGNABILITY

     

    The
license granted hereunder is specific to the Direct Medical and may not be
assigned by any act of the Direct Medical or by operation of law unless with the
written consent of IMedicor.

     

    19.
INTEGRATION

     

    This
Agreement constitutes the entire understanding of the parties, and revokes and
supersedes all prior Agreements between the parties and is intended as a final
expression of their Agreement. It shall not be modified or amended except in a
writing signed by the parties hereto and specifically referring to this
Agreement. This Agreement shall take precedence over any other documents which
may be in conflict therewith.

    

    IN
WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have
each executed this agreement on the day indicated.

     

    
      
        	
                Direct
      Medical Solutions Corp

              	 
      	
                IMedicor,
      Inc.

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                By: /s/ Marian
      Bartosiewicz

              	 
      	
                 By:
      /s/ Fred
    Zolla

              
	
                     
      Marian Bartosiewicz, President

              	
                 

              	
                       
      Fred Zolla, CEOex10-1.htm

Exhibit 10.1

 

 

NOTICE

 

This Release and Termination of Employment Agreement (“Agreement”) is a very important legal document, and you should consult with an attorney before signing it.

 

By signing this Agreement, you are agreeing to release Carpenter Technology Corporation (and certain other individuals/entities named as “Released Parties” within this Agreement) from all liability to you.  You have twenty-one (21) days from the date of distribution of these materials to consider whether to sign this
document or, if later, until your termination date on page 2 of this Agreement.  If you decide to sign it, you will then have an additional seven (7) days following the date of your signature to revoke this Agreement, and this Agreement shall not become effective or enforceable until this seven (7) day revocation period expires.  You may not sign this Agreement before the last day of your employment with Carpenter Technology Corporation.  In
order to notify Carpenter of intent to revoke, you must provide written notice, via certified mail, to the Director - Total Rewards & People Strategy, Carpenter Technology Corporation, 101 West Bern Street, Reading, Pennsylvania, 19601.

 

 

 

 

RELEASE AND TERMINATION OF EMPLOYMENT AGREEMENT

This Release and Termination of Employment Agreement (“Agreement”) between T. Kathleen Hanley (the “Employee”) and Carpenter Technology Corporation (“Carpenter”), provides for the mutually satisfactory terms and conditions of the Employee’s termination
of employment with Carpenter effective October 30, 2009 (the “Termination Date”)

 

In consideration of the mutual promises and commitments made herein, and INTENDING TO BE LEGALLY BOUND hereby, the Employee and Carpenter agree that in return for the payments and benefits described in Sections 1-4 of the Agreement,
which exceed that to which the Employee is otherwise entitled, the Employee agrees that these benefits represent adequate compensation for this Agreement to release and forever discharge all “Released Parties” including Carpenter from any and all manner of claims as stated in Section 11.  These benefits are contingent upon fulfillment of the “Special Separation Conditions” in Section
5 and the Employee’s acceptance of all other terms of this Agreement summarized below.

 

	
v
	
Employee agrees to protect Carpenter’s confidential and proprietary business information (Section 8)

	
v
	
Employee agrees to return all Carpenter property and remove personal property (Section 9)

	
v
	
Employee agrees to this Agreement’s confidentiality and to avoid negative characterizations (Section 10)

	
v
	
Employee agrees where permitted by law to reimburse Carpenter’s defense costs, if Employee files suit (Section 12)

	
v
	
Employee further agrees that she will cooperate fully with Carpenter and its counsel with respect to any matter  in which the Employee was in any way involved during her employment (Section 13)

	
v
	
Employee agrees that if she violates or challenges the enforceability of this Agreement, no further payments, rights or benefits under Sections 1-4 hereof will be due to her (Section 14)

	
v
	
Employee agrees that the written terms of this Agreement are the complete understanding between the parties superseding any prior agreements or understandings (Section 16)

	
v
	
Employee agrees the balance of this Agreement will remain in force even if any provision is invalidated by a court (Section 19)

 

 

-2-

 

 

	
v
	
Employee agrees to governing state law (Section 20) and recognizes required tax withholding (Section 21)

Whether the Employee accepts the terms of this Agreement or not, the Employee will receive the benefits described in Sections 6 and 7 subject to the terms of the applicable plan documents.

 

 

-3-

 

 

Consideration (Benefits contingent upon this Agreement)

	
  
	
1.
	
The Employee will receive severance payments in the form of continuation of her base salary for a period of twelve (12) months (the “Severance Period”), less applicable withholding and payroll taxes, payable monthly.  The severance payments described above will be paid from Carpenter’s general assets and the Severance Period will commence within one month of the Employee’s satisfaction
of the Special Separation Conditions described in Section 5 below.  For avoidance of doubt, the severance payments made under this Section 1 are intended to be exempt from Section 409A of the Internal Revenue Code as payments made pursuant to a “separation pay plan” under Treas. Reg. § 1.409A-1(b)(9)(iii).

 

	
  
	
2.
	
For the duration of the Severance Period, Carpenter will waive the applicable premium otherwise payable for COBRA continuation coverage for the Employee (and, to the extent covered by Carpenter’s group health plan immediately prior to the Termination Date, the Employee’s eligible dependents).

 

	
  
	
3.
	
The 4,000 restricted shares granted to Employee on January 8, 2007 will vest upon the satisfaction of the Special Separation Conditions described in Section 5 below and will be released from transfer restrictions as scheduled in the ordinary course, notwithstanding the Employee’s termination of employment.

 

	
  
	
4.
	
Carpenter will also pay up to $20,000 for the Employee to participate in an outplacement employment program of Carpenter’s choosing following satisfaction of the Special Separation Conditions described below in Section 5.

 

	
  
	
5.
	
The special separation benefits described in Sections 1-4 above are conditioned upon (a) the return of this signed Agreement (signed only on or after the Employee’s last day of employment) within 22 days following its delivery to Employee and (b) the expiration of the seven day revocation period without the Employee’s revocation of this Agreement
(“Special Separation Conditions”).  No special separation benefits will commence prior to the satisfaction of these Special Separation Conditions.

 

Benefits to which the Employee is otherwise entitled

 

	
  
	
6.
	
Any vested but unexercised stock options held by the Employee will have the exercise period adjusted as required under the applicable stock plan on the basis of a separation without special category (e.g. cause, disability or retirement).  It is the Employee’s responsibility to review the terms of the Employee’s stock plan and agreement to assure that the Employee does not lose the ability to exercise
any options.  The Employee may receive a certificate with the adjusted exercise dates by contacting Equiserve at 1-800-670-6644 following separation of employment.

 

 

-4-

 

 

	
  
	
7.
	
The Employee will be entitled to receive all earned compensation (including accrued but unpaid time off) and benefits otherwise due the Employee upon termination of employment as required by law and in accordance with the terms of the benefit plans or other agreements between Carpenter and the Employee.  Notwithstanding the foregoing, the Employee will not be entitled to any benefits under the Severance Pay
Plan for Salaried Employees of Carpenter Technology Corporation (“Severance Plan”) or an Increased Pension resulting from a Termination Due to Job Elimination under the GRP and the Employee hereby releases any claim for such benefits under the Severance Plan and the GRP.

 

General Terms of this Agreement

 

	
  
	
8.
	
Confidential/Proprietary Information:  The Employee agrees that the Employee will not at any time disclose to any person or entity, any of Carpenter’s confidential or proprietary business information, which includes, but is not limited to, its personnel policies, practices, technologies, processes, trade secrets, customer lists, financial
information, cost data and other proprietary information and agreements.  The Employee specifically agrees that all information disclosed to the Employee regarding the handling of human resource matters is deemed confidential and proprietary to Carpenter, provided that this sentence will not (subject to Section 17 below) prohibit (a) the Employee from working in the field of human resources generally, or (b) the application of her knowledge of human resources best practices acquired prior to her employment
by Carpenter.  The Employee shall also promptly return to Carpenter any documents and photographs (and copies thereof), in whatever form (including electronic) containing any such confidential or proprietary information.

 

	
  
	
9.
	
Carpenter & Personal Property:  The Employee agrees to promptly return to Carpenter any of Carpenter’s property provided to Employee, or within Employee’s possession or control including, but not limited to, the Employee’s Carpenter Identification card and any motor vehicle decals, credit card(s), computer hardware/software,
mobile communication devices, Library and other Carpenter-owned books, files (electronic or paper), keys, tools, etc.  It is the Employee’s responsibility to arrange with Asset Protection Services (“APS”) and/or the Human Resources Manager to remove any personal items from Carpenter property and deliver any Carpenter property to APS.   Any property or personal items not claimed within fourteen (14) days of the date of termination above will be destroyed or discarded.

 

	
  
	
10.
	
Confidentiality of Agreement & Nondisparagement:  The Employee agrees that the terms, conditions, amounts and facts of this Agreement are and shall at all times remain confidential.  The Employee further warrants and represents that  from the time the Employee received this Agreement (or any prior drafts) through the Employee’s
signing of this Agreement, the Employee has not breached the confidentiality of this Agreement.  Finally, the Employee agrees that henceforth the Employee will not disclose or permit to be disclosed the terms of this Agreement to any person or entity, including but not limited to, any past, present or future employees of Carpenter, except to the extent that such disclosure may be required by law.  The Employee may disclose this Agreement to the Employee’s immediate family, attorney and
tax advisors, who acknowledge and agree to maintain the confidentiality of this Agreement.  The Employee will not make or cause to be made any untrue statement to anyone suggesting or implying any wrongful, illegal, or unethical conduct by any Released Person, nor will the Employee disparage any Released Person or otherwise take any action that could reasonably be expected to adversely affect the personal or professional reputation of any Released Person.  Carpenter has the right to seek any
and all legal or equitable remedies to which it is entitled by reason of a breach of this Section 10.

 

 

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11.
	
Release of Claims:  In return for the promises herein, as to Sections 1-4, which exceed that to which the Employee is otherwise entitled under Carpenter’s policies and benefit plans, the Employee (on behalf of herself), the Employee’s representatives, successors, heirs, and assigns do hereby completely release and forever discharge
Carpenter and the other “Released Parties” (as defined below), from any and all manner of claims, known or unknown, asserted or unasserted, matured or not matured, which Employee may have against any of the Released Parties, arising at any time up to and including the date that the Employee signs this Agreement, including without limitation all claims related to the Employee’s employment with Carpenter or the separation of that employment to the fullest extent permitted by law.  This
release specifically includes, but is not limited to, any and all claims under (a) the common law, including, but not limited to, theories for wrongful discharge, breach of contract (whether expressed or implied) or duty, defamation, tort, or violation of public policy; (b) any policies, practices or procedures of Carpenter, and  benefits under any employee benefit plans sponsored by Carpenter; (c) any federal or state constitution, and any federal, state or local statute, ordinance, or executive order,
including, but not limited to, claims for discrimination on the basis of race, religion, sex, national origin, mental or physical disability, age, or any other protected status or characteristic.  The laws under which the Employee is releasing claims include, without limitation, the following: (1) Title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e, et.seq.), (2) the Age Discrimination in Employment Act (29 U.S.C. 621, et.seq.),
as amended by the Older Workers Benefit Protection Act (29 U.S.C. §626, et. seq.), (3) the Americans with Disabilities Act (42 U.S.C. §12101, et. seq.), (4) the Employee Retirement Income Security Act (29 U.S.C. §1001, et. seq.), (5) the Family and Medical Leave Act of 1993, 29 U.S.C. § 2601 et.
seq., (6) the Fair Credit Reporting Act, 15 U.S.C. § 1681 et. seq. (7) the Worker Adjustment and Retraining Notification Act, 29 U.S.C. § 2101 et. seq., (8) the Genetic Information Non-Discrimination Act of 2008, P.L. 110-343; (9) the Pennsylvania Human Relations Act (43 P.S. §951, et. seq.) and
any other applicable statute, law, ordinance, regulation or executive order (whether state, federal or local) governing the employment relationship.

 

Notwithstanding the foregoing, it is understood and agreed that the Employee is not waiving (1) claims under any state workers’ compensation law for a work related injury or illness that was incurred during or arises out of employment with Carpenter or (2) ordinary benefit claims under Carpenter sponsored pension, life, disability and
health plans to which the Employee is otherwise entitled.

 

 

-6-

 

 

As used herein, the “Released Parties” shall mean Carpenter; its past and present direct and indirect parents, subsidiaries, business units, affiliates, and the like; all of the foregoing entities’ successors, assigns, and legal representatives; and all of the foregoing
entities’/persons’ past and present directors, officers, attorneys, employees, benefit plans (including each such plan’s administrators, fiduciaries, insurers, trustees, and related parties), and legal representatives; any person/entity claimed to be jointly or severally liable with any of the foregoing persons/entities; and any person/entity who at any time has acted by, through, under, or in concert with any of the foregoing persons/entities with respect to the Employee.

 

	
  
	
12.
	
Assumption of Legal Fees:  The Employee affirms that the Employee has not filed any complaint against any Released Party with any local, state or federal court.  The Employee affirms that the Employee not filed any claim, charge or complaint with the United States Equal Employment Opportunity Commission (“EEOC”) or any state
or local agency authorized to investigate charges or complaints of unlawful employment discrimination (together, “Agency”).  The Employee understand that nothing in this Agreement prevents the Employee from filing a charge or complaint of unlawful employment discrimination with any Agency or assisting in or cooperating with an investigation of a charge or complaint of unlawful employment discrimination by an Agency, provided however
that, the Employee acknowledges that the Employee may not recover any monetary benefits in connection with any such claim, charge, complaint or proceeding and disclaim entitlement to any such relief.  Furthermore, if any Agency or court has now assumed or later assumes jurisdiction of any claim, charge or complaint on the Employees behalf against any one or all of the Released Parties, the Employee will disclaim entitlement to any relief.  The Employee agrees that the Employee will
not file suit in any court pleading any claims barred or released by this Agreement.  Nor will the Employee accept any relief with respect to such claims obtained on the Employee’s behalf by any person or entity.  Employee further agrees that he will not in any way assist any current or former Carpenter employee in making any claim against any of the Released Parties.  If the Employee files suit pleading any claims found to be barred or released by this Agreement, the Employee
shall to the extent permitted by law pay Carpenter’s or any of the other applicable Released Parties’ attorneys’ fees and costs in defending against such released claims.

 

	
  
	
13.
	
Cooperation.  Employee agrees to cooperate with or otherwise assist Carpenter, its affiliates and their counsel upon request in connection with any matter relating to her service to Carpenter (including, without limitation, legal claims, investigations, regulatory matters and other proceedings).  Employee’s assistance in connection
with such matters shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of Carpenter.  Employee will render such assistance in a timely manner on reasonable notice from Carpenter, provided that Carpenter will attempt to schedule and limit the need for Employee’s assistance so as not to unduly interfere with her personal and other professional obligations.  Employee understands that in any legal action,
investigation, or regulatory proceeding, Carpenter expects him to provide only accurate and truthful information or testimony.  Carpenter shall reimburse Employee within 30 days for all reasonable expenses, including travel expenses, that she necessarily incurs in connection with this Section 13 (subject to presentment of suitable invoices).  For time spent after the Severance Period fulfilling her obligations under this section, Employee will be compensated at a rate of $250 per hour, excluding
for this purpose the first two (2) hours spent in any calendar month.

 

 

-7-

 

 

	
  
	
14.
	
Challenge.  If the Employee violates or challenges the enforceability of this Agreement, no further payments, rights or benefits under Sections 1-4 hereof will be due to Employee.

 

	
  
	
15.
	
No Admission of Liability.  This Agreement is not to be construed as an admission of any violation of any federal, state or local statute, ordinance or regulation by Carpenter, or of any violation of any duty owed by Carpenter to the Employee.  Carpenter specifically denies any such violations.

 

	
  
	
16.
	
Integration Clause:  This is the complete and final agreement between the parties, and it fully supersedes any and all prior agreements or understandings between the parties hereto (including, without limitation, the Employee’s offer letter dated December 8, 2006).  The Employee agrees that there is absolutely no agreement or
reservation not clearly expressed herein, that the sums of money stated herein are all that the Employee is ever to receive for all claims to damages, costs, attorneys’ fees and other expenses, and that the execution hereof is with the full knowledge that this Agreement covers all possible claims.  In addition, the Employee acknowledges that neither Carpenter nor any of its employees, agents, representatives or attorneys have made any representations concerning the terms of this Agreement other
than those contained herein.

 

	
  
	
17.
	
Restrictive Covenants:  The Employee acknowledges that restrictive covenants contained in Section 10 of the Restricted Stock Unit Award Agreement dated July 29, 2009 (the “Restrictive Covenants”) survive the termination of her employment with Carpenter.  The
Employee acknowledges that those Restrictive Covenants are reasonable and necessary to protect the legitimate interests of the Company, that she received adequate consideration in exchange for agreeing to those restrictions and that she will abide by those restrictions.  For avoidance of doubt, however, the parties agree that the Restrictive Covenants will not prohibit the Employee from accepting employment with an original equipment manufacturer (“OEM”) or with a supplier to a competitor
of Carpenter, provider that such OEM or supplier does not itself also compete with Carpenter.  The Employee acknowledges and agrees that the entities in competition with Carpenter include, without limitation, those entities listed on the attached Exhibit A.  During the eighteen (18) month period following the Termination Date, the Employee agrees to (a) disclose the existence and terms of
the Restrictive Covenants to any person for whom she intends to perform services, and (b) disclose to Carpenter the identity of any such proposed service recipient.  The disclosures described in the preceding sentence will, in each case, be made at least three business days prior to the commencement of services.

 

 

-8-

 

 

	
  
	
18.
	
Termination of All Service.  Employee hereby confirms that, in addition to ceasing her service as an employee of the Company on the Termination Date, her service to the Company and any affiliated entity in any capacity has also terminated as of the Termination Date.

 

	
  
	
19.
	
Severability Clause:  Carpenter and the Employee agree that should any provisions of this Agreement be declared or determined by any court to be illegal or invalid, the validity of the remaining parts, terms, or provisions shall not be affected thereby and said illegal or invalid part, term, or provision shall be deemed not to be part of this
Agreement.

 

	
  
	
20.
	
Governing Law:  This Agreement is made and entered into in the Commonwealth of Pennsylvania, and shall in all respects be interpreted, enforced and governed under the laws of said Commonwealth, to the extent such laws are not preempted by applicable federal law.  The language of all parts of this Agreement shall in all cases be construed
according to its fair meaning, and not strictly for or against any of the parties.

 

	
  
	
21.
	
Tax Withholding:  All payments hereunder shall be subject to all applicable federal, state and local withholdings.

 

	
  
	
22.
	
Counterparts and Facsimiles.  This Agreement may be executed, including execution by facsimile or electronic signature, in multiple counterparts, each of which shall be deemed an original, and all of which together shall be deemed to be one and the same instrument.

 

 

-9-

 

           

THE EMPLOYEE ACKNOWLEDGES AND STATES THE FOLLOWING BY HER INITIALS AND SIGNATURE BELOW:

 

v      THAT THE EMPLOYEE HAS CAREFULLY READ AND UNDERSTANDS ALL THE PROVISIONS OF THIS AGREEMENT.

 

v      THAT THE EMPLOYEE KNOWS AND UNDERSTANDS THAT, BY ACCEPTING BENEFITS UNDER THIS AGREEMENT AND SIGNING THIS RELEASE, THE EMPLOYEE IS GIVING UP ANY RIGHT TO BRING A CLAIM AGAINST THE “RELEASED
PARTIES,” EITHER INDIVIDUALLY OR COLLECTIVELY, INCLUDING BUT NOT LIMITED TO CARPENTER.

 

v      THAT THE EMPLOYEE ALSO UNDERSTANDS THAT THE EMPLOYEE WOULD NOT RECEIVE BENEFITS UNDER THIS AGREEMENT, IF THE EMPLOYEE DID NOT KNOWINGLY AND VOLUNTARILY ENTER INTO THIS RELEASE.

 

v      THAT THE EMPLOYEE IS SIGNING THIS RELEASE COMPLETELY WILLINGLY AND VOLUNTARILY AND THERE IS NO MEDICAL OR OTHER CONDITION THAT WOULD PREVENT THE EMPLOYEE FROM DOING SO.

 

v      THAT CARPENTER HAS NOT SUBJECTED THE EMPLOYEE TO ANY COERCION OR DURESS AND HAS DONE NOTHING TO FORCE THE EMPLOYEE TO SIGN THIS RELEASE.  IF THE EMPLOYEE ASSERTS OTHERWISE IN THE
FUTURE, THE EMPLOYEE ADMITS THIS WILL NOT THEN BE TRUTHFUL.

 

Employee agrees to all five statements above with initials        /s/ TKH       

 

Employee must sign this Agreement on or after the last day of employment with Carpenter.  The Employee’s signature before that date will invalidate the terms of this Agreement.

 

	 	 	 	 	 	 
	 	 	 	 	 	 
	 	/s/ Charlene Williams	 	 	
/s/ T. Kathleen Hanley
	 
	 	Witness	 	T. Kathleen Hanley	 
	 	 	 	 	 	 
	 	 	 	Dated:	November 6, 2009	 
	 	 	 	 	 	 
	 	 	 	Carpenter Technology Corporation	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	
/s/ Diane Gibble
	 	
By: 
	/s/ K. Douglas Ralph	 
	 	Witness	 	 	
K. Douglas Ralph
	 
	 	 	 	 	Senior Vice President &	 
	 	 	 	 	
Chief Financial Officer
	 

 

 

-10-

 

 

EXHIBIT A

AK Steel Holding Corp.

Steel Dynamics, Inc.

Voestalpine AG

Reliance Steel & Aluminum Co.

Schmolz + Bickenbach AG

Glorial Material Technology Corp.

Precision Castparts Corp.

Universal Stainless & Alloy Products, Inc.

Allegheny Technologies, Inc.

Parker-Hannifin Corporation

Ladish Co.

Sandvik AB

Titanium Metals Corp

Kennametal Inc.

Timken Company

Daido Steel Co., Ltd.

RTI International Metals, Inc.

Haynes International Inc.

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