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EXHIBIT 10.9  

  
 

    SEPARATION AND RELEASE AGREEMENT    
  

        THIS SEPARATION AND RELEASE AGREEMENT dated as of April 25, 2001 ("this Agreement"), is entered into between Jerome H. Kern ("Executive") and On Command
Corporation (the "Company"). 

 
 

RECITALS    
  

        Executive and the Company desire to provide for termination of Executive's employment with the Company and the voluntary resolution of all issues relating to
Executive's relationship with the Company and its affiliates. 

 
 

AGREEMENT    
  

        In consideration of the mutual covenants set forth in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are
acknowledged, the parties, intending to be legally bound hereby, agree as follows: 

        1.    Termination of Employment. As of the close of business on April 27, 2001, Executive will cease to be an officer or
employee of any of the Company and any subsidiary of the Company (collectively, the "Employers") and, except as provided in this Agreement, Executive's work responsibilities and duties to any of the
foregoing will cease, all as of the date hereof. Executive will continue to serve as Chairman of the Board of Directors of the Company (the "Board") until June 1, 2001 and thereafter until a
successor is appointed by the Board (at which date Executive will resign as a member of the Board) or until Executive resigns from the Board (such date, the "Termination Date"). Until the Termination
Date, Executive will perform the duties of Chairman of the Board diligently and in good faith. 

        2.    Severance Pay and Other Consideration. Executive will receive the following severance pay and other consideration (all
payments described in this paragraph 2 will be subject to all applicable federal, state and local withholding requirements): 

        (a)  Until
the Termination Date, Executive will be (i) paid salary at the rate currently being paid to him, (ii) entitled to all employee benefits to which he
is currently entitled and (iii) entitled to the use of an office at the Company's headquarters and the services of his assistant. 

        (b)  Executive
acknowledges that no money or other consideration, other than that set forth in this paragraph 2, will be payable or owed by the Company or any of its
subsidiaries to Executive as of and after the Termination Date, other than reimbursement for travel and other expenses owed to Executive in accordance with the Company's policies provided, however,
that Executive will be entitled to expense reimbursement only to the extent that such expenses are incurred in connection with services provided to or on behalf of the Company which have been
specifically requested by the Company and approved by Carl Vogel. 

        (c)  Except
as provided in paragraph 1, effective as of the date hereof, Executive will resign from all offices, directorships and similar positions held with any of
the Employers and any of their subsidiaries and all directorships or other positions held as the representative of any of the Employers or any of their subsidiaries or affiliates in any other
corporation or other entity in which any of the Employers has an interest. 

        3.    Benefits.

        (a)  To
the extent required by COBRA, Executive and his dependents may elect 18 months (or such other term as permitted by COBRA) of COBRA continuation coverage, at
their own 

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expense, without any reimbursement or payment by the Company. The Company and Executive will accept, and will not challenge in any way, any reasonable interpretation of the COBRA rights of Executive
or eligible dependents made under the relevant plan. 

        (b)  Except
to the extent provided herein, all employment benefits provided to Executive or his dependents by any of the Employers or by virtue of Executive's employment with
any of the Employers will terminate on the Termination Date. 

        4.    Preferred Stock. Pursuant to Section 12 of the Stock Purchase and Loan Agreement (the "Purchase Agreement") dated
as of August 4, 2000, by and between the Executive and the Company, the Company has the right, under certain circumstances, to repurchase all or a portion of certain "Unvested Shares"
(as defined in the Purchase Agreement). To the extent that the Company has the right to purchase such shares under Section 12 of the Purchase Agreement as a result of the termination of
employment set forth in this Agreement, the Company waives such right to purchase any Unvested Shares. Executive also agrees that Section 24 of the Purchase Agreement is hereby amended to
provide that to the extent the Executive has the right to vote any shares of stock acquired pursuant to the Purchase Agreement as a separate class, Executive will cause the Preferred Shares (as
defined in the Purchase Agreement) to be voted in the manner as recommended by the Company's Board of Directors. 

        5.    Releases.

        (a)  Executive,
for himself and his heirs, successors and assigns, hereby forever waives, and releases and discharges the Employers, and their respective present or former
directors, officers, shareholders, owners, managers, supervisors, employees, partners, attorneys, agents and representatives, and their respective successors, heirs and assigns (collectively, "Company
Releasees") from, any and all actions, causes of action, claims, charges, demands, losses, damages, costs, attorneys' fees, judgments, liens, indebtedness and liabilities of every kind and character,
whether known or unknown, suspected or unsuspected ("Claims"), that Executive may have or claim to have, in any way relating to or arising out of any event or act of omission or commission related to
Executive's employment or other association with any of the Employers occurring from the beginning of time through the Termination Date, except (i) any Claim based on or arising from a breach
by the Company of its obligations under this Agreement and (ii) any Claim for indemnification that Executive may have under (A) the certificate of incorporation, operating agreement or
bylaws of any of the Employers arising from his employment or performance of services as a director, officer or employee of any of them or of any entity in which any of them or any subsidiary of any
of them owns an interest or (B) paragraph 5(c) below. Without limiting the generality of the foregoing, Executive waives, and releases and discharges the Company Releasees from, the
following: 

	•
	Claims
arising under any stock option, stock bonus, stock appreciation right or other incentive plan or agreement;

	•
	Claims
arising under federal, state, or local laws prohibiting age, sex, race, disability, handicap, religion, or any other form of discrimination, such as
the Age Discrimination in Employment Act, as amended, 29 U.S.C. ' 621 et seq., the Civil Rights Act, 42 U.S.C. ' 1981, the Equal Pay Act, 29 U.S.C. '
206(d), the Americans With Disabilities Act, 42 U.S.C. ' 12101, and Title VII of the 1964 Civil Rights Act, as amended, 42 U.S.C. ' 2000e et seq.;

	•
	Claims
arising under the Fair Labor Standards Act, 29 U.S.C. ' 201 et seq.;

	•
	Claims
arising under the Employee Retirement Income Security Act, 29 U.S.C. ' 1001 et seq.; 

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	•
	Claims
arising under the National Labor Relations Act, 29 U.S.C. ' 151 et seq.;

	•
	Tort
Claims;

	•
	Express
or implied contract, quasi contract, or promissory estoppel Claims;

	•
	Retaliatory
discharge Claims;

	•
	Wrongful
discharge Claims;

	•
	All
other legal and equitable Claims regarding Executive's employment or the termination of that employment. 

        (b)  The
Company, for itself and the other Employers, hereby forever waives, and releases and discharges Executive and his heirs, successors and assigns (collectively,
"Executive Releasees" and collectively with Company Releasees, "Releasees") from, any and all Claims that any of the Employers may have or claim to have, in any way relating to or arising out of any
event or act of omission or commission occurring from the beginning of time through the Termination Date (and the Company will indemnify Executive against any such Claim against Executive by another
Employer), except any claim based on or arising from a breach by Executive of his obligations under this Agreement. 

        (c)  The
Company will indemnify and hold harmless Executive to the fullest extent permitted by applicable law, in respect of any liability, damage, cost or expense (including
reasonable attorneys' fees) incurred in connection with the defense of any claim, action, suit or proceeding ("Proceeding") to which he is a party, or threat thereof, by reason of his being or having
been an employee, officer or director of, or a consultant to, the Company or any subsidiary of the Company, or his serving or having served at the request of the Company as a director, officer,
employee or agent of another corporation or of a partnership, joint venture, trust, business organization, enterprise, or other entity, including service with respect to employee benefit plans (each,
a "Represented Entity") other than any Proceeding by or in the right of the Company, subsidiary or Represented Entity in which Executive is charged with improper personal benefit (whether or not
involving action in an official capacity) and, in a Final Determination, is adjudged liable on the basis that personal benefit was improperly received. For purposes of this paragraph 6(c),
"Final Determination" shall mean a decision or order of any court, arbitrator, governmental agency or other tribunal having jurisdiction over the Proceeding, which decision or order is final and
non-appealable. Without limiting the generality of the foregoing, the Company will pay the expenses (including reasonable attorneys' fees) of defending any such Proceeding
in advance of its final disposition, upon receipt of an undertaking by Executive to repay all amounts advanced if it should be ultimately determined that Executive is not entitled to be indemnified
under this paragraph 5(c). 

        (d)  By
signing this Agreement, Executive and the Company represent to each other that such party has not filed any complaint, charge or lawsuit against any Releasee of the
other party, and has not raised any Claim with a court or other governmental authority against any such Releasee. Executive and the Company each agrees not to pursue (and the Company will cause each
other Employer not to pursue) with or before any court or governmental authority any Claim against any Releasee of the other relating to any of the matters released hereby, and further, that such
party is not entitled to any remedy or relief if he or it were to pursue any such Claim. If the release by Executive or the Company set forth in this paragraph 5 is deemed to be invalid,
unenforceable or illegal, then the court making such determination will reduce the effect of the release to the extent necessary to preserve the enforceability of the remainder of the release. 

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        6.    Authority to Release. Executive and the Company each warrants to the other that such party has not assigned or transferred
to any person or entity all or any portion of any Claim that is released, waived and discharged in this Agreement. 

        7.    Return and Protection of Employer's Property; Restrictive Covenants.

        (a)  Within
seven days after the Termination Date, Executive will return to the Company any and all property of any of the Employers in Executive's possession. 

        (b)  Executive
will not use, distribute or disclose to third parties any proprietary or confidential information, or any trade secrets of any of the Employers. 

        (c)  If
Executive breaches in any material respect any of the Executive's covenants in this paragraph 7 or any other representation, warranty, covenant or agreement
set forth in this Agreement, the Company will have no further obligation to pay any amounts pursuant to this Agreement. Such right to terminate payment will be in addition to, and not in lieu of, any
other remedy to which the Company may be entitled pursuant to this Agreement or otherwise. 

        (d)  Executive
acknowledges that the restrictive covenants set forth in this paragraph 7 are reasonable and that irreparable injury would result to the Company in the
event of any breach by Executive of the covenants, and that such covenants are an essential condition of this Agreement. If any of such
covenants is breached, the Company will be entitled, in addition to any other remedies and damages available, to injunctive relief from a court to restrain the violation of such covenants by Executive
or by any person acting for or with Executive in any capacity whatsoever. 

        (e)  If,
notwithstanding Executive's acknowledgment as to the reasonableness of the covenants set forth in this paragraph, any of such covenants is held to be unenforceable
by a court of competent jurisdiction, the parties direct that such court order the enforcement of such covenants, with such changes as the court deems reasonable, to the maximum extent permitted by
law. 

        8.    Non-Admission of Liability or Wrongdoing. By entering into this Agreement, neither Executive nor the Company
admits any impropriety, wrongdoing or liability of any kind whatsoever, and on the contrary, expressly denies the same. Executive and the Company expressly agree that this Agreement has no
precedential effect, value or impact whatsoever as to any person not a party to this Agreement. 

        9.    Confidentiality. Executive will keep the terms of this Agreement confidential, and will not in any way disclose the same
to any person for any reason whatsoever, unless (a) the disclosure is to an attorney or accountant for Executive and is necessary for the rendition of legal or tax advice by Executive's
attorney or accountant (in which event Executive will be responsible for his attorney's or accountant's compliance with the restrictions stated in this paragraph), (b) the communication or
disclosure is to Executive's spouse (in which event Executive will be responsible for his spouse's compliance with the restrictions stated in this paragraph), (c) the communication or
disclosure is compelled by law, or (d) the communication or disclosure is in accordance with the provisions of paragraph 10. 

        10.  Press Release. The Company and Executive will cooperate in the preparation of any press release or public announcement
concerning the subject matter of this Agreement and neither the Company nor the Executive will issue any press release or public announcement without the consent of the other and neither the Company
nor Executive will withhold its or his consent unreasonably. 

        11.  Entire Agreement; Modification. This Agreement sets forth the entire agreement and understanding of the parties
concerning the subject matter hereof, and supersedes all prior agreements, arrangements and understandings relative to that subject matter. No term or provision hereof may be modified or extinguished,
in whole or in part, except by a writing which is dated and signed by the parties to this Agreement. No waiver of any of the provisions or conditions of this Agreement or of any of the rights, powers
or privileges of a party will be effective or binding unless in writing and signed by 

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the party claimed to have given or consented to such waiver. No representation, promise or inducement has been made to or relied upon by or on behalf of either party concerning the subject matter
hereof which is not set forth in this Agreement. In particular, Executive will receive no salary, vacation pay, sick leave, benefit, payment, bonus, incentive compensation, stock award, performance
award or other compensation related to his employment with any of the Employers other than the consideration set forth herein, and Executive hereby agrees that he is not entitled to the same. 

        12.  Acknowledgments. Executive acknowledges that (a) Executive received from the Company a draft of this Agreement on
April 22, 2001, (b) the final version of this Agreement was reached through discussions between the Company and Executive occurring between April 22, 2001 and April 26,
2001, (c) Executive was offered a period of time (through April 26, 2001) in which to consider this Agreement, and (d) Executive has been invited and
advised to consult with an attorney regarding this Agreement before signing it. Executive voluntarily signs this Agreement, and—personally or through his
attorney—returns this executed Agreement to Greg Armstrong, On Command Corporation, 7900 East Union Avenue, Denver, Colorado 80237, the authorized representative of the Company, by
hand-delivery or certified mail, on or before April 26, 2001. By so returning this executed Agreement, Executive voluntarily waives the balance of the 21-day period
provided by the Older Worker Benefit Protection Act, 29 U.S.C. ' 626(f)(1)(F)(i), and acknowledges that the requirements of 29 U.S.C. ' 626(f)(1)(F)(i) have been fully satisfied. 

        Executive
further acknowledges that Executive may revoke this Agreement by arranging for the delivery, by hand-delivery or certified mail, to Greg Armstrong, the authorized
representative of the Company, (y) a written notice of revocation and (z) the payments provided by the Company to Executive pursuant to paragraph 2 of this Agreement (if
previously paid to Executive), within the seven-day period following the Company's receipt of the executed Agreement, as provided by the Older Worker Benefit Protection Act, 29 U.S.C. '
626(f)(1)(G). If the Company does not receive a written notice of revocation and the return of such payments provided by the Company to Executive, on a timely basis, this Agreement will take effect on
the eighth day following the Company's receipt of the executed Agreement. 

        13.  No Mistake. The parties forever waive all rights to assert that this Agreement was the result of a mistake of law or
fact. 

        14.  Notices. All notices, claims, requests, demands and other communications required hereunder will be in writing and will
be deemed to be duly given if: (a) personally delivered (including delivery by Federal Express or other nationally recognized overnight courier) or (b) sent by telecopy as follows: 

	If to the Company, to:	 	On Command Corporation

7900 East Union Avenue

Denver, Colorado 80237

Attn: President

Telecopy No.: (720) 873-3399
	

With a copy similarly

addressed:	
 	

Attn: General Counsel

Telecopy No.: (720) 873-3397
	

If to Executive:	
 	

Jerome H. Kern

31 Albion Place

Castle Rock, Colorado 80104

or
to such other address or addresses as the party to whom notice is to be given may have previously furnished to the other in writing in the manner set forth above. Notices will be deemed given and
received at the time of such personal delivery or telecopying. 

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        15.  Governing Law. This Agreement will be governed and construed in accordance with the laws of Colorado without giving
effect to rules regarding conflicts of laws.

        16.  Venue; Waiver of Jury Trial. The parties hereby irrevocably submit to the jurisdiction of, and agree that any action
pertaining to this Agreement, the interpretation or enforcement hereof or the rights or obligations of the parties hereunder will be brought only in, the courts of the State of Colorado or the federal
district court of the United States of America located in the State of Colorado. The parties consent to and grant any such court jurisdiction over the person of such parties and over the subject
matter of such dispute and agree that delivery of process or other papers in connection with any such action or proceeding in the manner provided in paragraph 14 or in such other manner as may
be permitted by law will be valid and sufficient service thereof. Each party hereby irrevocably and unconditionally waives any right that such party may have to a trial by jury in respect of any
litigation directly or indirectly arising out of or relating to this Agreement, or the transactions contemplated by this Agreement. Each party certifies and acknowledges that (i) no
representative, agent or attorney of any other party has represented, expressly or otherwise, that such party would not, in the event of litigation, seek to enforce the foregoing waiver,
(ii) each party understands and has considered the implications of this waiver, (iii) each party makes this waiver voluntarily and (iv) each party has been induced to enter into
this Agreement by, among other things, the mutual waivers and certifications in this paragraph 16.

	 	 	ON COMMAND CORPORATION
	

 	
 	

By:	
 	

/s/ Bertran Perkel

	 	 	Title:	 	Sr. V.P. & General Counsel

	 	 	Date:	 	4/26/01

	

 	
 	

/s/ Jerome H. Kern
 Jerome H. Kern
	

 	
 	

Date:	
 	

4/26/01

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SEPARATION AND RELEASE AGREEMENT

RECITALS

AGREEMENTQuickLinks
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Dear                        : 

        Effective                        ("End
Date"), your position with On Command Corporation (the "Company") will be terminated. The purpose of this letter is to offer you severance benefits on the
terms and conditions set forth in the attached Summary Plan Description for the On Command Corporation 2001 Severance Pay Plan ("SPD") and Waiver and Release Agreement. 

        Please
review the SPD carefully. If you sign the attached Waiver and Release Agreement, you will receive severance pay in the amount set forth in the Waiver and Release Agreement and you
will, in return, relinquish all legal rights to sue or bring charges against the Company. 

        THE
ATTACHED WAIVER AND RELEASE AGREEMENT HAS BINDING LEGAL EFFECT AND CAN BE ENFORCED IN COURT ONCE YOU SIGN IT. YOU ARE INVITED AND ADVISED TO CONSULT AN ATTORNEY BEFORE YOU SIGN IT. 

        Under
the Older Workers' Benefit Protection Act ("OWBPA"), you must be offered at least forty-five (45) days after your
last day of work to consider the Waiver and Release Agreement. Please feel free to take the full 45 days to consider the Waiver and Release Agreement. If you do not wish to take advantage of
the full 45-day consideration period, please sign and return the Waiver of OWBPA 45-day Waiting Period form. YOU CANNOT SIGN AND RETURN EITHER THE WAIVER AND RELEASE AGREEMENT
OR THE WAIVER OF OWBPA 45-DAY WAITING PERIOD FORM UNTIL AFTER YOUR END DATE. At the appropriate time, the documents should be returned to Kim Getman, Human Resources Department, On Command
Corporation, 7900 East Union Avenue, Denver, CO 80237. 

        FURTHER,
AFTER YOU SIGN THE WAIVER AND RELEASE AGREEMENT, YOU WILL HAVE A SEVEN (7) DAY GRACE PERIOD WITHIN WHICH YOU MAY REVOKE YOUR SIGNATURE TO THE AGREEMENT BY GIVING
WRITTEN NOTICE, AND THE AGREEMENT WILL NOT BE EFFECTIVE OR ENFORCEABLE UNTIL THE SEVEN (7) DAY REVOCATION PERIOD HAS EXPIRED. YOU WILL NOT RECEIVE ANY SEVERANCE PAY UNTIL ALL APPLICABLE WAITING
PERIODS HAVE ELAPSED. 

        IF
THE COMPANY DOES NOT RECEIVE THE FULLY-EXECUTED WAIVER AND RELEASE AGREEMENT ON OR BEFORE THE FORTY-NINTH (49TH) DAY AFTER YOUR END DATE, THIS SEVERANCE OFFER WILL BE
REVOKED AND ALL TERMS AND CONDITIONS SET FORTH IN THE AGREEMENT WILL BE NULL AND VOID. 

        If
you choose not to sign the Waiver and Release Agreement, please be assured that the Company will not engage in retaliation of any kind,
by reason of your decision not to sign, or to revoke your acceptance. Of course, the Company reserves its right to defend itself to the fullest against any lawsuit, claim or charge that you may bring
in the future, and to assert any available counterclaims against you as permitted by law. 

        To
acknowledge your receipt of this letter, the attached SPD, and the Waiver and Release Agreement, please sign the Employee's Acknowledgment in the space provided, enter the date, and
return a copy of this letter to Kim Getman, Human Resources Department, On Command Corporation, 7900 East Union Avenue, Denver, CO 80237. 

        If
you have any questions regarding this letter, please contact me at 720/873-3403. 

	 	 	ON COMMAND CORPORATION
	

 	
 	

Kim Getman

Corporate Human Resources Manager

 
 
 

EMPLOYEE'S ACKNOWLEDGMENT    
  

        I have read and I understand this letter, and I acknowledge receipt of a Summary Plan Description for the On Command Corporation 2001 Severance Pay Plan, dated
May 18, 2001 and a Waiver and Release Agreement. 

	Employee Signature:	 	        
	 	Date Received:	 	        

	 	 	 	 	Date Signed:	 	 
	 	 	 	 	 	 	

 
 

WAIVER AND RELEASE AGREEMENT    
  

        I,                        , do freely and voluntarily enter into
this Waiver and Release Agreement ("Agreement"), intending to be legally bound according to the terms set
forth below. 

        I
acknowledge that On Command Corporation ("Employer") has agreed to pay me the sum of                        Dollars
($                        ), less applicable tax withholding, in exchange for my
agreements set forth below in this Agreement. I acknowledge that this sum represents an additional payment to me, over and above all compensation (including salary, wages, bonuses, or benefits) to
which I am entitled due to my employment. 

        For
this valuable consideration, I hereby agree and state as follows: 

	1.
	I,
individually and on behalf of my successors, heirs and assigns, release, waive and discharge Employer and any of its parents, subsidiaries, or otherwise affiliated corporations,
partnerships or business enterprises, and their respective present and former directors, shareholders, employees, and assigns (hereinafter "Released Parties"), from any and all causes of action,
claims, charges, demands, losses, damages, costs, attorneys' fees and liabilities of any kind that I may have or claim to have, in any way relating or arising out of any act of commission or omission
from the beginning of time through the date of my execution of this Agreement. This release includes, but is not limited to:

	a.
	Claims
under federal, state, or local laws prohibiting age, sex, race, national origin, disability, religion, retaliation, or any other form of discrimination, such as the Age
Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, Civil Rights Act of 1991, 42 U.S.C. §1981, §1985, §1986 and the Americans with
Disabilities Act.

	b.
	Intentional
infliction of emotional distress and other tort claims;

	c.
	Breach
of express or implied contract claims;

	d.
	Promissory
estoppel claims;

	e.
	Retaliatory
discharge claims;

	f.
	Wrongful
discharge claims;

	g.
	Breach
of the express or implied covenant of good faith and fair dealing;

	h.
	Constructive
discharge; and

	i.
	Other
legal and equitable claims relating to my original offer of employment, my employment, and the termination of my employment. 

	2.
	I
hereby warrant and represent that I have not filed or caused to be filed any charge or claim against any Released Party with any administrative agency, court of law or other
tribunal. I agree not to pursue or bring before any federal, state or other governmental authority or court any claim, complaint, or charge against any of the Released Parties, relating to any of the
matters 

2

 

released
hereby, and further, I agree that I am not entitled to any remedy or relief if I were to pursue any such claim, complaint or charge. 

	3.
	I
acknowledge that to the extent that I have been granted options to purchase Employer's stock, the vesting of such options will not accelerate as a result of the termination of my
employment and any options that were vested on the last day of my employment will terminate                         months
after the last day of my employment. 

	4.	 	I acknowledge that my last day of employment with Employer was	.	 	Initial:
	

 	
 	

 	

 [Fill In Date]	
 	

 Employer
	

 	
 	

 	

 	
 	

 Employee

	5.
	I
hereby declare that this Agreement constitutes the entire and final agreement between me and the Released Parties, superseding any and all prior agreements, and that the Released
Parties have not made any promise or offered any other agreement, except those expressed in this document, to induce or persuade me to enter into this Agreement.

	6.
	I
hereby acknowledge that I am forty (40) years of age or over.

	7.
	BY
SIGNING THIS AGREEMENT, I ACKNOWLEDGE THAT EMPLOYER HAS ADVISED ME TO DISCUSS THIS WAIVER AND RELEASE AGREEMENT WITH AN ATTORNEY BEFORE SIGNING THIS AGREEMENT. I acknowledge and
agree that the Released Parties are not responsible for any of my costs, expenses, and attorney's fees, if any, incurred in connection with any claim or the review and signing of this Agreement.

	8.
	I
acknowledge and state that I have been given a period of at least forty-five (45) days in which to consider the terms of this Agreement.

	9.
	I
UNDERSTAND THAT I HAVE THE RIGHT TO REVOKE THIS AGREEMENT AT ANY TIME WITHIN SEVEN (7) DAYS AFTER SIGNING IT, BY PROVIDING  WRITTEN NOTICE TO KIM
GETMAN, HUMAN RESOURCES DEPARTMENT, ON COMMAND CORPORATION, 7900 EAST UNION AVENUE, DENVER, CO 80237, AND THIS AGREEMENT IS NOT
EFFECTIVE OR ENFORCEABLE UNTIL THE SEVEN (7) DAY REVOCATION PERIOD HAS EXPIRED.

	10.
	I
acknowledge that, pursuant to the Age Discrimination in Employment Act, I have had at least forty-five (45) days to consider the information provided by Employer
in Exhibit A attached to this Agreement which:

	a.
	identifies
all employees, by age and job title, to whom this severance arrangement has been offered; and

	b.
	identifies
all employees, by age and job title, who were eligible for this severance arrangement. 

	11.
	I
acknowledge that the Summary Plan Description for the On Command Corporation 2001 Severance Pay Plan, a copy of which has been provided to me, describes the individuals covered by
the severance arrangement, the eligibility requirements for the severance arrangement, and the time limits applicable to the severance arrangement.

	12.
	I
acknowledge that my Agreement Regarding Proprietary Information and Inventions and my Confidentiality Agreement remain in effect. Further, I agree not to disclose confidential and
proprietary information of any Released Party to any third party, except in response to a valid Order of a court or other governmental body of the United States, and only after providing 

3

 

Released
Parties notice and an opportunity to respond to such third parties regarding such disclosure. Confidential and proprietary information includes, but is not limited to, identity of customers,
vendors and suppliers, marketing methods, prices and business strategies, intellectual property, system designs, computer software, compensation and benefits of employees and other items of
employment. 

	13.
	I
represent and warrant that I have returned all documents and equipment relating to my employment with Employer, including without limitation, all files, training materials, policies
and procedures, notebooks, handbooks, customer lists, mailing lists, account information, credit cards, phone cards, cellular phones, automobiles, computers and all other tangible or intangible
property belonging to Employer, and relating to my employment. I further warrant and represent that I have not retained copies of such property.

	14.
	I
agree to cooperate fully with the Released Parties concerning any business or legal matters about which I had knowledge during my employment.

	15.
	I
agree that this Agreement is a compromise of claims and charges and/or potential claims and charges which may be in dispute, and that this Agreement does not constitute an admission
of liability or an admission against interest of any Released Party.

	16.
	In
the event I violate or otherwise breach this Agreement, I shall be subject to legal and injunctive relief and shall be liable for the reasonable costs and expenses (including
attorneys' fees) incurred by the Released Parties in connection with enforcement of this Agreement.

	17.
	This
Agreement shall be governed by the laws of the State of Colorado without effect to conflicts of law principles.

	18.
	THIS AGREEMENT BECOMES NULL AND VOID AND OF NO FURTHER FORCE OR EFFECT IF EMPLOYER DOES NOT RECEIVE THE EXECUTED AGREEMENT ON OR BEFORE THE FORTY-NINTH
(49TH) DAY AFTER MY END DATE AS SET BY EMPLOYER.

        IN WITNESS WHEREOF, I have placed my signature
this            of                        , 2002. 

	 	 	 	 	EMPLOYEE
	

 	
 	

 	
 	

	Witness	 	 	 	 	 	 
	 	 	
	 	 	 	 
	

STATE OF	
 	

 	
 	

 	
 	

 
	 	 	
	 	)	 	 
	 	 	 	 	)ss:	 	 
	COUNTY OF	 	 	 	)	 	 
	 	 	
	 	 	 	 

        On
this            day of                        , 2002, before me,
                        , the undersigned, personally
appeared                        , known to me (or satisfactorily proven) to be the
person whose name is subscribed to the within instrument and acknowledged that he/she executed the same for the purposes therein contained. 

4

 

        IN
WITNESS WHEREOF, I hereunto set my hand and official seal. 

	 	 	
 Notary Public
	

[SEAL]	
 	

My commission expires:	
 	

 
	 	 	 	 	

	

	

Date Received:	
 	

 	
 	

 	
 	

 
	 	 	
	 	
 Human Resources
	Date Approved:	 	 	 	 	 	 
	 	 	
	 	
 Human Resources

5

 
 
 

EXHIBIT A    
  

6

 
 

WAIVER OF OWBPA 45 DAY WAITING PERIOD    
  

        I acknowledge that on or about                        , my
Employer gave me a Waiver and Release Agreement as part of the On Command Corporation 2001 Severance Pay Plan
and advised me to consult an attorney before I signed it and further advised me that I had forty-five (45) days from my End Date to consider that Agreement. 

        Although
forty-five (45) days from my End Date have not passed, I have considered the Agreement, and: 

	have consulted an attorney.	 	OR	 	although advised to, have decided not to have an attorney review the Agreement.

[Circle one of the above]

        Therefore,
I waive any remaining portion of the forty-five (45) day review period and request that the seven (7) day revocation period during which I may revoke
my acceptance of the Agreement, begin. I UNDERSTAND THAT I MAY NOT WAIVE THE SEVEN (7) DAY REVOCATION PERIOD. I further authorize the Employer to release to me the severance payment less
applicable tax withholdings upon the expiration of the seven (7) day revocation period. 

	
	 	
 Date

NOTE:    This Waiver cannot be executed prior to your End Date! 

QuickLinks

EMPLOYEE'S ACKNOWLEDGMENT

WAIVER AND RELEASE AGREEMENT

EXHIBIT A

WAIVER OF OWBPA 45 DAY WAITING PERIOD

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