Document:

exv10w2

Exhibit 10.2

SEVERANCE AGREEMENT AND GENERAL RELEASE

     Paul A. McCormick, for himself and his heirs, successors and assigns (“Executive”) and
Endologix, Inc., (the “Company”) hereby agree, effective May 12, 2008, to the following:

     1. Executive’s employment with the Company will be terminate on the date hereof (the
“Termination Date”).

     2. On the Termination Date Executive will be paid any base salary due and owing to him as of
the Termination Date and all earned but unused vacation accrued by him as of the Termination Date.
With respect to outstanding business expenses, if any, Executive agrees that on or before May 31,
2008, he will submit a final expense reimbursement statement reflecting any outstanding business
expenses incurred through the Termination Date, along with the appropriate receipts and necessary
supporting documentation. The Company will provide reimbursement for appropriate business expenses
pursuant to its current business policies and practices

     3. In reliance on Executive’s promises, representations, and releases in this Agreement, and
in consideration therefor, the Company will provide Executive the following:

     (a) Continued payments at his base salary for a period of six months after the
Termination Date. Such payments shall be at the base salary rate in effect on the
Termination Date less legally required withholdings and will be made on the Company’s
regularly recurring paydays for such six month period;

     (b) Continued payments for Executive’s health insurance premiums for continued health
insurance coverage for a period of six months after the Termination Date, provided that
Executive makes a timely election to continue such coverage under COBRA;

     (c) $46, 297, which is equal to 36.34% (pro-ration through May 12, 2008) of Executive’s
target bonus of $124,400; and

     (d) Continued vesting for Executive’s stock options to purchase the Company’s Common
Stock, under the Option Agreements listed on Exhibit A so long as Executive remains
a Director of the Company. The foregoing is no guarantee or commitment by the Company to
continue to recommend Executive for re-election to the Board of Directors. Executive
acknowledges that any exercise of options more than three months following the Termination
Date will not be eligible for tax treatment as incentive stock options, but rather will be
treated as non-qualified stock options, and Executive acknowledges that he in relying on his
own tax advisor with respect to any exercise of such options.

     4. The Company acknowledges that Executive will be entitled to all compensation payable to
non-employee members of the Board of Directors, commencing with the first Board meeting and the
first stockholder meeting following the Termination Date.

 

 

     5. Executive agrees to provide reasonable transition assistance to the Company’s new Chief
Executive Officer, in particular with respect to investor relation activities in the four weeks
following the Termination Date.

     6. Executive represents to the Company that he is signing this Severance Agreement and General
Release voluntarily and with a full understanding of and agreement with its terms for the purpose
of receiving additional consideration including an opportunity for salary continuation and stock
option benefits from the Company beyond that which he may be otherwise entitled.

     7. Executive hereby waives and releases all claims, known and unknown, which he has or might
otherwise have had against the Company, on behalf of itself and its subsidiaries and related
entities, past and present officers, directors, shareholders, executives, managers, supervisors,
employees, consultants, auditors, attorneys, insurers, indemnitees, successors and agents
(hereinafter collectively referred to as “Released Parties”), arising prior to the date he executes
this Agreement. This release includes, without limitation, all claims relating in any way to any
aspect of Executive’s employment, compensation, or the cessation of his employment with the
Company, under the Age Discrimination in Employment Act of 1967, the Americans with Disabilities
Act of 1990, Title VII of the Civil Rights Act of 1964, 42 U.S.C. section 1981, the Fair Labor
Standards Act, the California Fair Employment and Housing Act, California Government Code section
12900, et seq., the Unruh Civil Rights Act, California Civil Code Section 51, all
provisions of the California Labor Code, the Employee Retirement Income Security Act, 29 U.S.C.
section 1001, et seq., all as amended, any other federal, state or local law,
regulation or ordinance or public policy, contract, tort or property law theory, or any other cause
of action or claim whatsoever that arose on or before the date Executive executes this Agreement.

     8. The release in this Agreement includes, but is not limited to, claims arising under
federal, state or local law for age, race, sex or other forms of employment discrimination and
retaliation. In accordance with the Older Workers Benefit Protection Act, Executive hereby
knowingly and voluntarily waives and releases all rights and claims, known or unknown, arising
under the Age Discrimination in Employment Act of 1967, as amended, which he might otherwise have
had against Released Parties. Executive is hereby advised that he should consult with an attorney
before signing this Agreement, that nothing herein is intended to waive any claim based on events
or actions occurring after this Agreement is entered, and that he has twenty one (21) calendar days
after the receipt of this Agreement in which to consider and accept this Agreement by signing and
returning this Agreement to Frank Brown. In addition, Executive has a period of seven days
following his execution of this Agreement in which he may revoke the Agreement. If Executive does
not advise the Company by a writing received by Mr. Brown within such seven day period of
Executive’s intent to revoke the Agreement, the Agreement will become effective and enforceable
upon the expiration of the seven days.

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     9. It is further understood and agreed that as a condition of this Agreement, Executive
expressly waives all rights under Section 1542 of the Civil Code of the State of California. Such
Section reads as follows:

“A general release does not extend to claims which the creditor does
not know or suspect to exist in his favor at the time of
executing the release, which if known by him must have materially
affected his settlement with the debtor.”

Notwithstanding Section 1542, and for the purpose of implementing a full and complete release and
discharge of the Released Parties, Executive expressly acknowledges that this Severance Agreement
and General Release is intended to include and does include in its effect, without limitation, all
claims which Executive does not know or suspect to exist in his favor against the Released Parties
at the time of execution hereof, and that this Agreement expressly contemplates the extinguishment
of all such claims.

     10. This Severance Agreement and General Release shall not be construed as an admission by the
Company of any improper, wrongful, or unlawful actions, or any other wrongdoing against Executive,
and the Company specifically disclaims any liability to or wrongful acts against Executive on the
part of itself and Released Parties.

     11. No provision of this Agreement shall be construed against any party or his/its counsel
because that party or his/its counsel drafted the provision in question. This Agreement will be
interpreted in accordance with the laws of the State of California.

     12. This Agreement may be modified only by written agreement signed by both parties.

     13. In the event any provision of this Agreement is void or unenforceable, the remaining
provisions shall continue in full force and effect.

     14. This Severance Agreement and General Release contains the entire agreement between the
parties regarding the subject matter hereof, and supersedes any and all prior and contemporaneous
oral and written agreements, INCLUDING WITHOUT LIMITATION ANY SEVERANCE BENEFITS EXECUTIVE MIGHT
CLAIM UNDER HIS EMPLOYMENT AGREEMENT WITH THE COMPANY DATED OCTOBER 18, 2002, or other severance
policies of the Company.

     15. Any controversy or claim arising out of or relating to this Agreement shall be settled by
arbitration in Orange County, California, in accordance with the Rules of the American Arbitration
Association and applying California law, and judgment upon the award rendered by a single
arbitrator may be entered in any court having jurisdiction.

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     16. In the event of any action for the breach of or to enforce the provisions of this Agreement,
the prevailing party shall be entitled to recover from the unsuccessful party reasonable attorneys’
fees, costs, disbursements and other expenses in such amounts as may be awarded by a court of
competent jurisdiction.

	 	 	 	 	 	 	 
	 

	 	 	 	Endologix, Inc.	 	 
	 
	 	 	 	 	 	 
	/s/ Paul McCormick
 

Paul A. McCormick

	 	 
	 	/s/ Frank Brown
  

Frank D. Brown, Chairman of the Board
	 	 
	 
	 	 	 	 	 	 
	Dated: May 12, 2008

	 	 	 	Dated: May 12, 2008	 	 

4exv10w1

Exhibit 10.1

CONSULTING AGREEMENT

     THIS CONSULTING AGREEMENT (“Agreement”) is made and entered into by and between the
undersigned Neenah Enterprises, Inc. and its related entities (“Company”) and the undersigned, Gary
LaChey, as an individual (“Consultant” or “LaChey”).

     WHEREAS, LaChey will be retiring as the Chief Financial Officer of the Company in May of 2008;
and

     WHEREAS, the Company desires thereafter to retain the services of LaChey for a period of time
as a consultant in order to provide transitional assistance to the Company regarding
responsibilities previously performed by LaChey in his role of Chief Financial Officer and to
further provide consultative efforts to the Company for the purposes of furthering and developing
the business; and

     WHEREAS, LaChey is desirous of entering into such an arrangement,

     NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein, the
parties mutually agree as follows:

     1. PERFORMANCE BY CONSULTANT:

     A. AVAILABILITY: Consultant agrees to provide consultative services to the Company during
the term of this Agreement. The specific schedule of availability and the compensation
arrangements associated with same are outlined in 2. below (Compensation).

     B. REPORTING: The Consultant shall report directly to the president of the Company, Robert
Ostendorf or his designee.

     2. COMPENSATION:

     The Consultant will be paid $10,000 per month during the term of this Agreement in addition to
any supplemental daily fees as defined below.

     In exchange for this payment of $120,000, the Consultant agrees to provide ten (10) days of
consultative onsite services to the Company per month of this Agreement. If the Consultant is
required to spend more than ten (10) days in any one month in order to provide consultative
services, the Consultant shall be paid for each supplemental additional day the sum of $1,500.

     The Company will additionally reimburse the Consultant for all necessary expenses associated
with the performance of his duties including lodging, meals and travel if same is required to
provide said services.

     The Consultant agrees to provide the Company with a reasonable itemization including receipts
if requested to substantiate all business related expenses.

     3. TAXES:

	 	(a)	 	Income Taxes. Consultant shall pay all taxes and fees (including
penalties and interest) imposed by any Federal, Provincial, State or local government
on account of the receipt of income by Consultant for Services rendered under this
Agreement. Company shall, as required by law, provide Consultant with IRS Form 1099
(US).
	 
	 	(b)	 	Insurance and Indemnification. The Company hereby agrees to ensure and
to indemnify and hold harmless the Consultant from any and all claims and causes of
action arising out of the performance of his duties for the Company as a Consultant to
the same extent that it ensures and indemnifies its officers and directors.

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	 	(c)	 	Use of Automobile. The Company agrees to allow the Consultant to
continue to use the corporate vehicle that had been assigned to him during the course
of his prior employment with the Company for the period of this Consulting Agreement.
Additionally, the Company agrees to continue to provide applicable auto insurance
coverages during the term of this Agreement as was provided during the course of
Consultant’s employment with the Company. Company shall be responsible for all regular
maintenance associated with the use of this automobile.

     The Consultant shall be provided authorization to continue to use the Company gas
credit card to provide payment for automobile expenses including fuel.

     The Company further agrees that at option of the Consultant it shall, upon expiration
of the Consulting Agreement, transfer title to the corporate vehicle that has been assigned
to him to utilize during the term of the Consulting Agreement consistent with the Corporate
policy that applies to transferring such vehicles to executives.

     4. TERM OF AGREEMENT:

     The term of this Agreement shall be for one (1) year commencing upon May 15, 2008 and expiring
May 15, 2009.

     5. REASONABLE EFFORTS:

     Consultant shall perform Services and consultative efforts in compliance with all applicable
laws and regulations and further shall make every reasonable effort to perform Services hereunder
in a prompt, competent and diligent manner consistent with Company’s standards.

     6. PROPRIETARY RIGHTS:

     Consultant agrees that all information, discoveries, inventions, improvements, strategies or
overall business plan concepts arising from the services Consultant provides herein under this
Agreement, shall be the sole property of the Company.

     7. ENTIRE AGREEMENT:

     This Agreement sets forth the entire agreement between the parties hereto with respect to the
consulting relationship. This Agreement may not be changed orally, but only by an agreement in
writing signed by the parties hereto.

     8. GOVERNING LAW:

     This Agreement shall be governed for all purposes by the laws of the State of Wisconsin. If
any provision of this Agreement is declared void, such provision shall be deemed severed from this
Agreement which shall otherwise remain in full force and effect. Proper venue for any actions
arising out of the breach of this Agreement shall be in a court of competent jurisdiction within
Outagamie County, State of Wisconsin.

     9. AGREEMENT:

     The Consultant, by his signature hereto, confirms the following:

	 	(a)	 	the Consultant has an employer identification number and/or social security number.
	 
	 	(b)	 	the Consultant by this Agreement will operate under a contract to perform specific
services for specific amounts of money under which Consultant controls the means of the
performance of services work.
	 
	 	(c)	 	the Consultant will receive compensation for work or services performed under this
contract.

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	 	(d)	 	the Consultant agrees that whether or not he makes a profit or loss to perform
the work outlined is
entirely his responsibility.

     10. RENEWAL:

     This Agreement upon its expiration may be renewed upon terms mutually agreeable to the parties
providing same is reduced to writing and signed by the parties hereto.

     11. CONFIDENTIALITY:

     During the course of providing services, it is possible that the Consultant will obtain
information that is considered to be confidential and proprietary information of the Company. Such
information may include, but is not limited to, compositions, specifications, formula, designs,
manufacturing processes, programs, systems, products, patent applications, marketing, business and
other commercial information. Consultant agrees to maintain as confidential all confidential
information received or obtained as a result of the services provided for a period of five (5)
years from the date on which the Consultant’s services are terminated. At no time shall such
confidential information be disclosed to any third party without the prior written consent of the
Company.

     12. NON-COMPETITION:

     The Consultant hereby agrees that during the term of his Consultant relationship and for a
period of one (1) year upon the cessation of said relationship, the Consultant shall not directly
or indirectly, work as an employee or a consultant on behalf of a competitor of the Company, in a
capacity wherein he would provide any comparable consultative services to the competitor that he
provided to the Company during the period of the Consultant relationship.

     This provision relating to non-competition is not designed to prevent the Consultant from
becoming employed or providing services to a competitor so long as said employment or consultative
effort does not result in the Consultant providing the same or similar services to the competitor
that he provided to the Company during the period of his Consultant relationship with the Company.

     Furthermore, this restriction on employment is limited geographically only to those
competitors who are compete within the continental United States and who have competed during the
period of the consulting agreement or during the three (3) year period prior to the execution of
this Agreement.

     13. TERMINATION OF THE AGREEMENT PRIOR TO 5/15/09:

     Notwithstanding any provisions to the contrary herein, this Agreement may be terminated prior
to its expiration date of 5/15/09 based upon any of the following:

	 	(a)	 	This Agreement may be terminated by mutual agreement at any time prior to its expiration
date providing the parties agree to do so in writing.
	 
	 	(b)	 	Either party may terminate this Agreement prior to its expiration date by providing a
written ninety (90) day notice of same. In the event such notice is given by either party, then
the Company shall nevertheless remain obligated to pay the Consultant all payments due but only
through the ninety (90) day notice period. Likewise, the Consultant shall be responsible to
fulfill his normal duties during this ninety (90) day notice period.

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the 15th day of May,
2008.

	 	 	 	 	 
	Neenah Enterprises, Inc.	 	 
	 
	 	 	 	 
	By

	 	/s/ Robert Ostendorf
 

	 	 
	 

	 	Robert Ostendorf	 	 
	 

	 	President	 	 
	 
	 	 	 	 
	Consultant	 	 
	 
	 	 	 	 
	/s/ Gary LaChey	 	 
	 	 	 
	Name: Gary LaChey	 	 

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