Document:

Exhibit 10.1

 

WITHOUT PREJUDICE

SUBJECT TO CONTRACT

DATED NOVEMBER
20, 2006

1-800
CONTACTS, INC.

and

GRAHAM
DAVID MULLIS

COMPROMISE
AGREEMENT

Bird & Bird

90 Fetter Lane

London

EC4A 1JP

Tel: 020 7415 6000

Fax: 020 7415 6111

Ref: WDW/ARD/CONTS.0001

 

THIS
AGREEMENT is made the        day
of November 2006

BETWEEN:

(1)                                  1-800 CONTACTS, Inc., a
Delaware Corporation of 66 E. Wadsworth Park Drive, Draper Utah 84020 (the “Company”);

and

(2)                                  Graham David Mullis
whose address is 8 Badger Way, Ewshot, Farnham, Surrey, GU10 5TE, United
Kingdom (“you/your”)

who shall together be called the “Parties”.

OPERATIVE PROVISIONS:

1                  Termination of Employment

1.1.                    You were employed under
the Contract and your Employment will terminate on 20 November 2006 (the Termination Date).  You will receive salary and benefits up to
and including the Termination Date as normal. 
After the Termination Date you will receive payment in lieu of your 10
days’ accrued but untaken pro rata holiday pay. 
The payments referred to in this Clause will be subject to your usual
PAYE Deductions.

1.2.                    You are required to conduct a handover of
your duties prior to 20 November 2006. You warrant that you will perform the
handover and any duties assigned to you diligently and co-operatively.

1.3.                    During the handover of your duties and
through the Termination Date you:

1.3.1.                     must
not attend any premises of the Company or any other Group Company without the
prior written consent of the Company;

1.3.2.                     must
not, except in accordance with the public announcements made by the Company in
relation to your termination, contact any customer supplier or business contact
of the Company (except where you have the Company’s permission to do so as part
of your efforts to find alternative work) or undertake any work on behalf of
the Company or any other Group Company without the prior written consent of the
Company;

1.3.3.                     must
not contact or have any dealings with any staff of the Company or any other
Group Company other than for purely social reasons without the Company’s prior
written consent;

1.3.4.                     must
not contact the press or other media or make any statement to them regarding
your Employment or your prospective termination;

1.3.5.                     must
not make any statement which is inconsistent with the external announcement at
Appendix 3 to any customers, suppliers and business contacts of the Company
regarding your Employment or your prospective termination without the Company’s
prior written consent;

 2
 

 

1.3.6.                     will remain subject to your
obligations of fidelity and confidentiality already in force and

1.3.7.                     shall
be deemed to have taken all holiday which accrues from 11 November 2006 up to
the Termination Date.

1.4.                    You confirm that there are no contractual
claims outstanding at the Termination Date, other than under this Clause 1.

2                  Expenses

2.1.                    You should submit your final expenses claim
to the Company within five days of Completion. You will be reimbursed, upon
prior written approval, for any expenses reasonably and necessarily incurred in
the proper performance of your duties on compliance with the Company’s expenses
policy.

3                  Payments

3.1.                    The Company will on behalf of itself and all
Protected Persons make a payment to you without admission of liability as
compensation in respect of the Specific Claims (the “Termination
Payment”) consisting of:

3.1.1.                     £155,675 pursuant to Clause 4(b)(i) of the
Contract, payable in 12 monthly instalments from 20 November 2006 to 19 October
2007 and your continued membership of the Group scheme or a similarly
designated health insurance scheme until 19 October 2007 (or the commencement
of any Work, whichever is earlier) subject to the rules of that scheme;

3.1.2.                     a prorated bonus payment relating to the 2006
STI Plan which will be equal to 21% of your STI eligible pay in 2006 (calculated
based upon no payment for the 2006 financial performance of Clearlab and payment
at target performance against the remaining three goals in the 2006 revised
goal statement provided to you separately) prorated by 11/12 (representing 11
months worked) and less the £16,695 previously paid to you for the Company’s
July Event, payable on or after 9 February 2007;

3.1.3.                     twelve equal monthly payments of £1,063.48 in
respect of contributions to the Pension Scheme pursuant to Clause 4(b)(i) of
the Contract, which shall be paid on the same basis as that which was applied
prior to the Termination Date;

3.1.4.                     £30,000 in compensation for loss of office
and the termination of the Employment due to redundancy within 14 days of the Termination
Date.  The Company will issue your form
P45 before making payment.  This payment will be paid without
deduction of income tax in accordance with section 403 of the Income Tax
(Earnings and Pensions) Act 2003.

3.2.                    The payments referred to in Clauses 3.1.1 to 3.1.2
above shall be subject to PAYE Deductions.

3.3.                    You agree that you are solely responsible for
and fully and effectively indemnify the Company and all Group Companies against
any demand for tax and employee national insurance contributions (whether
payable in the United Kingdom or elsewhere) arising out of or in connection
with any liability to pay (or deduct) tax or national insurance contributions
in respect of the payments and benefits set out in this Agreement, together
with any interest, penalties, reasonable costs, damages or

 3
 

 

expenses
which the Company or any other Group Company may incur in connection with such
a demand, provided always that you shall have an opportunity to make reasonable
representations to the HM Revenue and Customs before the Company makes payment
against any demand. This indemnity does not apply to PAYE Deductions deducted
by the Company.

4                  Pension
and Other Benefits

4.1.                    Your entitlements to any benefits not
provided for in this Agreement cease with effect from the Termination Date.

4.2.                    You will receive a statement of your
entitlements under the Pension Scheme and the available options for dealing
with those entitlements.

4.3.                    It is agreed that neither the Company nor any
other Group Company shall have any liability to you for any act, omission or
default of any of the insurers or providers of any of benefits provided to you.

5                  References
and Statements

The Parties have agreed to the
internal and external announcement at Appendix 3. The Parties agree that
subject to legal obligations or as selectively required during negotiations to
sell the ClearLab business to third parties, any other statements (made to
third parties, the business press, customers, press and employees) shall be
consistent with Appendix 3.

6                  Company Property

6.1.                    You undertake that on or before Completion
you will return to Nick Williams at the Company in good condition and without
modification all property belonging to the Company or any other Group Company
which is or has been in your possession, custody or control, except as
otherwise agreed in this Agreement.

6.2.                    To avoid doubt, the property to be returned
shall include: all confidential information, documents, books, manuals,
records, surveys, diagrams, specifications, plans, memos, reports, minutes,
correspondence, files, emails, papers, customer documentation, samples,
computer print-outs, mobile telephones, software, computers, computer discs or
any other medium for storing information, laptops, any other type of electronic
equipment, materials, credit or charge cards, keys and security access cards,
passwords and access codes of any description, and all other property of or
relating to the business or affairs of the Company or any other Group Company
or any of their officers, employees, workers, clients, customers, suppliers or
agents.

6.3.                    Your obligations under this Clause include
the return of all copies, drafts, reproductions, notes, extracts or summaries
of the items listed above howsoever made and in all existing formats.  You shall if requested by the Company confirm
your compliance with your obligations under this Clause in writing.

7                  Warranties and Undertakings

7.1.                    You warrant that there are no sums or loans
outstanding from you to the Company or any other Group Company and there is no
fact or circumstance under which any payment is due or could become due from
the Company or any other Group Company to you other than under the terms of
this Agreement.

 4
 

 

7.2.                    You warrant that you have not committed any
breach of any duty, including fiduciary duty, in relation to the Company or any
other Group Company and that as at the date of Completion you are not aware of
any such breach by any director or employee of the Company or any other Group
Company.

7.3.                    You undertake that on signing this Agreement
you will immediately tender your resignation from all directorships and other
offices which you hold with the Company and all Group Companies and on
Completion deliver to the Company a letter in the form set out in Appendix
2.  You also undertake to execute all
documents (in such form as the Company requests) and to do all such acts and
things as may be necessary to give effect to such resignation(s).

7.4.                    The Company confirms that you remain covered under
its Director’s and Officers liability insurance on the same basis as immediately
prior to the Termination Date.

8                  Restrictions

8.1.                    In consideration of a payment of £1,000 (subject
to PAYE Deductions) by the Company, you undertake to the Company that:

8.1.1.                     the obligations which
apply after the termination of employment in Clauses 5 and 6 of the Contract
will continue to have full force and effect and you undertake to comply with
them following the Termination Date;

8.1.2.                     you
will keep confidential the terms of this Agreement and the circumstances
giving rise to it, other than in confidence
to your immediate family and professional advisors and except so far as
disclosure may be required by any Court or other competent authority;

8.1.3.                     except in compliance with an Order of a Court
of competent jurisdiction you will not assist in any manner at all any person
or entity to make or continue any claim (including legal proceedings) against
any Protected Person;

8.1.4.                     you will not without the prior written
consent of the Company directly or indirectly i) do or omit to do anything; or
ii) make or cause to be made (through any act or omission) any comment or
statement concerning your Employment, its termination or otherwise; which might
reasonably be expected to have a negative or detrimental effect on the
commercial objectives of the Company or any Group Company, any business
products or services of the Company or any other Group Company or the
reputation of any Protected Person.  To
avoid doubt this restriction shall also apply to comments and statements made
in or to the press and all other media (including internet), whether or not
intended for publication or broadcast.

8.1.5.                     you continue to owe a duty of confidentiality
to the Company and you shall not after the Termination Date use or disclose or
negligently permit disclosure of any trade secret or confidential information
concerning the business, finances, dealings, transactions, affairs, or any
trade or secret process of any Protected Person which has come to your
attention during your Employment, to any person or entity save (i) as may be
required by law or by any regulatory body; or (ii) as such information may be
in the public domain (otherwise than by your default); or (iii) to your
professional advisers to the extent required to receive professional advice,
and you shall use your reasonable endeavours to prevent such use or disclosure
or (iv) to any private equity houses, VCs or brokers with whom you are required
or directed by the Company to discuss in confidence the possibility of
purchasing the Clear Lab assets;

 5
 

 

8.1.6.                     To avoid doubt and without prejudice to the
generality of this Clause 8, the following is a non-exhaustive list of matters
which are considered confidential and must be treated as such by you:

(a)           non public financial data e.g. management accounts;

(b)                                 information which has been supplied to you in
confidence during and in connection with your Employment;

(c)                                  information which has been supplied to the
Company or any other Group Company in confidence;

(d)                                 information relating to the commercial
activities of the Company or any other Group Company (regardless of its format)
specifically that relating to the development and technical aspects of the
products and services of the Company or any other Group Company;

(e)                                  information concerning all aspects of the
engagement, employment and termination of personnel;

(f)                                    information concerning any litigation
proposed, in progress or settled; and

(g)                                 information regarding the actual or proposed
sale of the Clearlab business and / or any of its assets or IPR’s, and any
connected plans, strategies, proposals, advices or other information or item(s)
which should otherwise be reasonably regarded as possessing a quality of
confidence or as having commercial value or use in relation to the business
activities of the Company or any Group Company;

8.1.7.                     the provisions of Clauses 7 and 8 of the
Contract shall no longer apply but you instead undertake that you will not in
any Relevant Capacity except with the prior written consent of the Company
(save as the beneficial owner of shares or other securities of a body corporate
whose shares are quoted on a recognized Stock Exchange and which when aggregated
with shares or securities beneficially owned by your spouse/partner and/or
children, total no more than one per cent of any single class of shares or
securities in such body corporate) do the following:

(a)                                  for twelve months from the Termination Date,
directly or indirectly manage, control, participate in, consult with, advise,
render services for, or in any manner engage in any activity competing with the
businesses of the Company within any geographical area (i) in which the Company
manufactures, sells or offers or promotes for sale any of the Company’s
products and (ii) with which you have had material involvement during the
Relevant Period or about which activities you come into contact with
confidential information during the Employment. 
To avoid doubt, Menicon is regarded as a competitor of the Company for
these purposes and the Company will only give consent in relation to Menicon if
it successfully acquires the Clearlab business to the Company’s total
satisfaction and if the Company is totally satisfied with your involvement,
cooperation, assistance and integrity in relation to such sale; or

(b)                                 for  12
months following the Termination Date, directly or indirectly through another
entity (i) solicit, interfere with or endeavour to entice away from employment
or engagement with the Company or any other Group Company (or procure or assist
the solicitation, interference with or enticement of) any Employee, or do any
act whereby such Employee is encouraged to terminate

 6
 

 

their employment or engagement,
with the Company or any other Group Company, whether or not such person would
by reason of terminating their service with the Company or that other Group
Company commit a breach of his contract or employment or engagement or (ii)
induce or attempt to induce any customer, supplier, licensee, licensor,
franchisee or other business relation of the Company or any Group Company to
cease doing business with the Company or such Group Company or in any way
interfere with the relationship between any such customer, supplier, licensee,
licensor, franchisee or other business relation and the Company or any Group
Company (including, without limitation, making any negative statements or
communications about the Company or any Group Company) in a way that does or
may reasonably be expected to damage such relationship with the Company or any
Group Company or cause any financial loss.

For the purpose of this Clause 8.1.7:

Employee means
any employee, director, consultant or independent contractor of the Company or
any other Group Company at the Termination Date or who was such an employee,
director, consultant or independent contractor at any time in the Relevant
Period and in each case who worked, or provided services as a contractor or
consultant, in a senior executive, managerial, sales, marketing, technical or
commercial capacity or who has or had during the Relevant Period information
relating to the business of the Company or any other Group Company or contact
with any Customer, and with whom you had material dealings in the performance
of your duties during the Relevant Period;

Relevant Capacity means either alone or jointly with another or others, whether as
principal, agent, consultant, director, partner, shareholder, independent
contractor, employee or in any other capacity, whether directly or indirectly,
through any other person, firm or company, and whether for your own benefit or
that of others; and

Relevant Period
means the period of 12 months preceding the Termination Date.

9                  Settlement

9.1.                    You accept the payments to you and the
performance of the obligations set out above in full and final settlement of
the Specific Claims and all and any claims or rights of action you may have now
or may have in the future against the Company, all and any Group Companies and
any Protected Person (however arising) in connection with or arising from your
Employment and its termination, the holding and/or loss of any office, or any
other related or connected matter, including any claims arising out of or in
connection with the Stock Option Agreements and including without limitation
any claims that you may have in any jurisdiction in the world under statute, contract,
common law or European law including in particular any such claims that you are
not aware of and/or could not be aware of at Completion.

9.2.                    This Agreement shall not prevent you issuing
High Court or County Court proceedings in respect of accrued pension rights or
any personal injury of which you are not aware or could not reasonably have
been aware at Completion, but it shall prevent you issuing proceedings in
respect of such matters in an Employment Tribunal.  You warrant that as at Completion you are not
aware of any circumstances that might give rise to any personal injury claim
against any Protected Person.

 7
 

 

9.3.                    This Agreement is in particular (but without
limitation) intended to address the Specific Claims.  It is agreed that you
have notified the following possible claims to the Company:

·              Unfair dismissal;

·              Automatically unfair
dismissal;

·              Breach of contract;

·              Unlawful deductions
from wages;

·              Whistleblowing.

9.4.                    You warrant that having made all reasonable
enquiries you are not aware of any other claim or grounds for a claim against
the Company or any other Protected Person in relation to any matters (howsoever
arising) other than the Specific Claims and the claims notified by you to the
Company.

9.5.                    It is agreed that the
Compromise Agreement Conditions will be satisfied on Completion.

9.6.                    The Termination Payment and
the benefits referred to in this Agreement excluding any payment for the
Restrictions in Clause 8 above are made on condition that (i) you have not as
at Completion received any approach that may lead to Work, received or accepted
any offer of Work or commenced Work; (ii) you have not withheld or failed to
disclose any breach of the Contract (express or implied) or any material fact
concerning the performance of your duties regarding the Company or any other
Group Company; (iii) you do not initiate or continue any legal complaint,
process or claim against any Protected Person in connection with your
Employment or the matters settled by this Agreement other than to enforce the
terms of this Agreement or any agreements entered into with the Company after
the date of this Agreement; and (iv) you are not in breach of any of your
material obligations under this Agreement or any warranty given by you in this
Agreement (including without limitation Clause 8.1.5 above) and you do not in
future breach any such material obligation or warranty which is intended to
apply after the Termination Date or Completion.

9.7.                    If you breach any of the
conditions in Clause 9.6 above then the Company: (i) may terminate this
agreement forthwith; (ii) will have no obligation to pay any sums or benefits
due under this Agreement but not yet paid as at the date of the breach; and
(iii) shall be entitled to demand immediate repayment of all or any part of any
sum or benefit given to you in connection with this Agreement (whether or not
it was otherwise due under the Contract) as may be appropriate in the
circumstances.  To avoid doubt, this
Clause shall not prejudice the Company’s right to take action against you in
connection with any breach of this Agreement giving rise to any further remedy
(including but not limited to a claim in damages) or any right to claim
additional sums from you and it shall not apply where it is necessary for you
to initiate a legal process or claim against the Company in relation to the
enforcement of this Agreement or against an appropriate Protected Person in
relation to personal injury or accrued pension rights.

9.8                     You agree that the
Termination Payment includes any sum which might have been payable in respect
of any sum which might have been payable in respect of contractual damages, the
basic award and the compensatory award and any injury to feelings award and
that if you are found to be entitled to any award or compensation in relation
to any of the Specific Claims, that it would not be just or equitable for a
Court or Employment Tribunal to grant any further award or compensation to you
in respect of any/or all of the

 8
 

 

Specific Claims and that the Tribunal or Court should set off against
any award or compensation all payments or benefits made by the Company under
this Agreement

10            Legal
Advice

10.1.            You warrant and
confirm that you have received independent legal advice as to the terms and
effect of this Agreement and in particular your ability to pursue the Specific
Claims, from a relevant independent adviser, namely Howard Hymanson   of Tarlo Lyons (the “Adviser”) who is a
solicitor of the Supreme Court, holding a current practising certificate and
whose firm has in place a contract of insurance or an indemnity provided for
numbers of a professional body covering the risk of a claim by you in respect
of any loss arising in consequence of such advice.

10.2.            You
represent and warrant that:

10.2.1.               you
have instructed the Adviser to advise whether you have or may have any claims,
including statutory claims, against the Company arising out of or in connection
with your employment or its termination;

10.2.2.               you
provided the Adviser with all available information which the Adviser required
or may have required in order to advise whether you have any such claims; and

10.2.3.               the
Adviser has advised you that on the basis of the information made available by
you, your only claims or particular complaints against the Company are the
potential claims listed in Clause 9.3 above, and that you have no other claim
of any type against the Company or any Group Company.

10.3.            The Company will pay up to
the sum of £2,000 plus VAT as a contribution towards your legal costs incurred
for advice received from the Adviser in respect of this Agreement.  Payment will be made directly to the Adviser’s
firm upon receipt by the Company of a copy invoice addressed to you and marked
payable by the Company for the appropriate amount, showing VAT separately.

10.4.            You will
procure that the Adviser completes the Adviser’s Certificate at Appendix 1 to
this Agreement.

11            Third Parties

11.1.              The Contracts (Rights of Third Parties) Act
1999 shall apply to this Agreement to the extent (but no more) as set out in
this clause.  Any Third Party shall be
entitled to enforce the benefits conferred on it by clauses 6, 7, 8, or 9 of
this Agreement.  The consent of a Third
Party shall not be required for the variation or termination of this Agreement,
even if that variation or termination affects the benefits conferred on any
Third Party.  For the purposes of this
Agreement Third Party shall mean any Group
Company or any officer, partner, employee or agent of the Company or any Group
Company.

12            Miscellaneous

12.1.              This Agreement is in substitution for all
previous agreements or arrangements relating to your employment (whether
written, oral or implied) all of which shall be deemed to have been terminated
by mutual consent as from Completion.

12.2.              You acknowledge that you have not relied on
any representation or undertaking by the Company (whether written or oral) in
entering into this Agreement, except as expressly incorporated in this
Agreement.

 9
 

 

12.3.              This Agreement and any agreement concluded in
relation to it are to be construed in accordance with and subject to English
Law.  The proposals contained in it are
made without any admission of liability.
Any dispute regarding this Agreement shall be subject to the exclusive
jurisdiction of the Courts of England and Wales.

12.4.              References in this
Agreement to any statute or
statutory provision includes a reference to that statute or statutory provision
as from time to time amended extended or re-enacted.

12.5.              This Agreement may be
executed in two or more counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same instrument.  This Agreement shall be binding upon receipt
by you and the Company of facsimile signatures.

13            Restricted Stock Agreement

13.1                           You agree that upon Completion, the
Restricted Stock Agreement dated March 27 2006 (“Stock Agreement”) will
terminate and you will have no further rights under that Stock Agreement.  In consideration for forfeiting and waiving
all of your rights under the Stock Agreement you will be granted 25,000 shares
of the Company’s common stock, par value $0.1 per share (“the Shares”).  This grant is expressly subject to each of
the following vesting restrictions set forth in this Clause 13:

13.1.1                   The Shares will vest only if you comply with
all terms of this Agreement and
co-operate to the Company’s complete satisfaction (such assessment to be made
reasonably) with its management team and advisors and any other relevant third
party in providing such reasonable assistance as the Company may request to
support any transaction or transactions to which the Company or any Group
Company is a party.

13.1.2                  The Shares will vest only upon the occurrence
of the events set forth in subparagraph 13.1.2.1 or subparagraph 13.1.2.2:

13.1.2.1                                                         one-third of the Shares will vest if the
Company enters into an agreement, arrangement, or understanding with an
Unrelated Entity pursuant to which the Company’s “flat pack” technology is
sold, licensed, or transferred to that Unrelated Entity and such transaction
closes;

one-third of the Shares will
vest if there is a Change in Control of the ClearLab Group without the Company’s
“flat pack” technology being sold, licensed, or transferred to an Unrelated
Entity;

one-third of the Shares will
vest on 20 November 2007;

or

13.1.2.2                                                         two-thirds of the Shares will vest if the
Company enters into an agreement, arrangement, or understanding with an
Unrelated Entity pursuant to which the Company’s “flat pack” technology is
sold, licensed, or transferred to that Unrelated Entity, such transaction
closes,  and
there is a Change in Control of the ClearLab Group;

one-third of the Shares will
vest on 20 November 2007.

 

 10

 

13.1.2.3                   for purposes of this Clause 13, a “Change in
Control” means the occurrence of any of the following: (i) the sale of all or
substantially all of the assets of the ClearLab Group, to an Unrelated Entity;
(ii) the sale of all of the outstanding voting securities of an entity holding
all or substantially all of the assets of the ClearLab Group, to an Unrelated
Entity; or (iii) the merger or consolidation of the ClearLab Group, into an
Unrelated Entity;

13.1.2.4                   for purposes of this Clause 13, the “ClearLab
Group” means each of the following entities collectively: (i) ClearLab
International Pte Ltd, a wholly-owned subsidiary of the Company organized in
Singapore; (ii) ClearLab Europe Ltd., a wholly-owned subsidiary of the Company
organized in the United Kingdom; and (iii) ClearLab UK Limited, a wholly-owned
subsidiary of the company organized in the United Kingdom.

13.1.2.5                   for purposes of this Clause 13, an “Unrelated
Entity” shall mean an entity, 50% or more of which is not owned, directly or
indirectly, by the Company, any subsidiary, the existing stockholders of the
Company in approximately the same proportion as before the transaction, or any
employee benefit plan sponsored or maintained by the Company or any subsidiary
(including any trustee of such plan acting as trustee) provided, however, that
no entity shall be an Unrelated Entity if Jonathan C. Coon (including any “person”
controlled by Jonathan C. Coon (as defined in Rule 12b-2 under the Securities
Exchange Act of 1934, as amended)) owns more than 10% of such entity.

13.2                           If neither Clause 13.1.2.1 nor Clause 13.1.2.2
has been satisfied by December 31, 2007, then none of the Shares shall vest
under any circumstances other than for the one-third that will vest on November
20, 2007 as set out in either Clause 13.1.2.1 or 13.1.2.2.

13.3                           To the extent required by law, the par value of
$0.1 per Share shall be paid by you to the Company in cash or by check.

13.4                           You agree to execute a Restricted Stock Agreement
which the Company shall provide to you, which shall be in substantially the
same form as the Restricted Stock Agreement dated March 27, 2006 between you
and the Company and which shall document the understanding set forth above.

14                                    Completion

14.1               The “without prejudice and subject to contract” nature
of this Agreement shall cease, and the Agreement shall become an open and
binding document on Completion. Should this not occur by 5.30 pm on Monday 20
November 2006, this offer shall lapse.

15                                    Definitions

15.1               In this Agreement the following terms have
the following meanings:

	
  Board

  	
   

  	
  means the Board of Directors of the Company or any
  other Group Company, as appropriate;

  
	
   

  	
   

  	
   

  
	
  Contract

  	
   

  	
  means the contract under which you were employed by
  the Company and/or any other Group Company, evidenced (in whole or

  

 

 11
 

 

 

	
  

  	
   

  	
   in part) by
  the Agreement dated 1 December 2002 (as amended);

  
	
   

  	
   

  	
   

  
	
  Completion

  	
   

  	
  occurs when the Company or its representative
  receives both this Agreement properly executed by, or on behalf of, you and
  the Adviser’s Certificate executed by the Adviser;

  
	
   

  	
   

  	
   

  
	
  Compromise Agreement

  	
   

  	
  means the conditions regulating compromise
  agreements in connection with the Specific Claims, including in particular
  those contained in:

  
	
  Conditions

  	
   

  	
   

  
	
   

  	
   

  	
  1)

  	
  Section 203(3) Employment Rights Act 1996;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2)

  	
  Section 77(4A) Sex Discrimination Act 1975;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3)

  	
  Section 72(4A) Race Relations Act 1976;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4)

  	
  Section 288 Trade Unions and Labour Relations
  (Consolidation) Act 1992;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5)

  	
  Schedule 3A Disability Discrimination Act 1995;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6)

  	
  Regulation 35 Working Time Regulations 1998;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7)

  	
  Part 1, Schedule 4 Employment Equality (Religion Or
  Belief) Regulations 2003;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8)

  	
  Part 1, Schedule 4 Employment Equality (Sexual
  Orientation) Regulations 2003;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9)

  	
  Section 49 National Minimum Wage Act 1998;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10)

  	
  Regulation 41 Transnational Information and
  Consultation of Employees Regulations 1999;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  11)

  	
  Regulation 40 Information and Consultation of
  Employees Regulations 2004;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  12)

  	
  Part 1 Schedule 5 Employment Equality (Age)
  Regulations 2006,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  as such legislation has been or is amended, extended
  or re-enacted from time to time;

  
	
   

  	
   

  	
   

  
	
  Employment

  	
   

  	
  means your employment with the Company and/or any
  other Group Company;

  
	
   

  	
   

  	
   

  
	
  Group Company / Group Companies

  	
   

  	
  means the Company, any subsidiary of the Company,
  any holding company of the Company and any subsidiary of each such holding
  company from time to time. A “subsidiary” or “holding company” is to be
  construed in accordance with sections 736 and 736A of the Companies Act 1985
  as repealed and re-enacted, or as modified by all other statutes or
  subordinate legislation concerning companies;

  
	
   

  	
   

  	
   

  
	
  PAYE Deductions

  	
   

  	
  means deductions made to comply with Part 11 Income
  Tax (Earnings and Pensions) Act 2003 and any obligations to deduct employee
  National Insurance contributions together with any other

  

 

 12
 

 

 

	
  

  	
   

  	
  deductions which the Company is required by law to
  make;

  
	
   

  	
   

  	
   

  
	
  Pension Scheme

  	
   

  	
  Means your personal pension with Skandia UK;

  
	
   

  	
   

  	
   

  
	
  Protected Person

  	
   

  	
  means the Company, any Group Company and their
  respective shareholders, officers, employees, workers and agents;

  
	
   

  	
   

  	
   

  
	
  Specific Claims

  	
   

  	
  means any allegation or claim against the Company,
  any Group Company or any other Protected Person in connection with any of the
  following:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1)

  	
  unfair dismissal (including automatic unfair
  dismissal);

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2)

  	
  pay in lieu of notice or damages for termination of
  employment without notice;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3)

  	
  any redundancy payment whether statutory or enhanced;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4)

  	
  any breach of contract including, but not limited
  to, any claim in respect of any share options or any other bonus or
  commission schemes you participated in during your Employment;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5)

  	
  any unlawful deductions from “wages” (as defined by
  section 27 Employment Rights Act 1996) including unpaid holiday pay and/or
  unpaid sick pay, maternity pay (statutory or otherwise), bonus or commission;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6)

  	
  unlawful race discrimination, victimisation or
  harassment under the Race Relations Act 1976;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7)

  	
  unlawful sex discrimination, victimisation or
  harassment under the Sex Discrimination Act 1975;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8)

  	
  any other rights arising under Parts VI, VII and
  VIII Employment Rights Act 1996, including but not limited to suspension from
  work, time off work, adoption leave, paternity leave and flexible working;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9)

  	
  unlawful disability discrimination or victimisation
  under the Disability Discrimination Act 1995;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10)

  	
  any claims under the Employment Equality (Religion
  or Belief) Regulations 2003;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  11)

  	
  any claims under the Employment Equality (Sexual
  Orientation) Regulations 2003;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  12)

  	
  any claims under the Employment Equality (Age)
  Regulations 2006;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  13)

  	
  any claim regarding less favourable treatment or
  detriment under the Part-time Workers (Prevention of Less Favourable

  

 

 13
 

 

 

	
  

  	
   

  	
   

  	
  Treatment) Regulations 2000 or the Fixed-Term
  Employees (Regulations) 2002;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  14)

  	
  any claim for equal pay under the Equal Pay Act
  1970;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  15)

  	
  breaches of the Working Time Regulations 1998;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  16)

  	
  breaches of the National Minimum Wage Act 1998;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  17)

  	
  protected disclosures and/or any claim arising under
  Part IV A Employment Rights Act 1996;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  18)

  	
  any act constituting a detriment in employment under
  Part V Employment Rights Act 1996;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  19)

  	
  any liability arising in relation to statutory
  minimum procedures under the Employment Act 2002 and/or the Employment Act
  2002 (Dispute Resolution Regulations) 2004;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  20)

  	
  any failure to consult trade unions or employee
  representatives in relation to the transfer of an undertaking;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  21)

  	
  any claims under the Information and Consultation of
  Employees Regulations 2004;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  22)

  	
  any claim relating to time off or detriment in
  relation to European Works Councils arising under the Transnational
  Information and Consultation of Employees Regulations 1999;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  23)

  	
  any other claim arising under or by virtue of the
  Employment Rights Act 1996 or the Employment Relations Act 1998;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  24)

  	
  claims under the Trade Union and Labour Relations
  (Consolidation) Act 1992;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  25)

  	
  claims under the European Public Limited-Liability
  Company Regulations 2004;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  26)

  	
  tort or breach of statutory duty;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  27)

  	
  any other claims at common law.

  
	
   

  	
   

  	
   

  
	
  Stock Option Agreements

  	
   

  	
  means the Stock Option Agreements entered into
  between you and the Company and dated 1 December 2002 and 13 February 2004
  and the Restricted Stock Agreement entered into between you and the Company
  and dated 27 March 2006;

  
	
   

  	
   

  	
   

  
	
  Work

  	
   

  	
  means any employment, contract for services and/or
  any activity undertaken by you with a view to financial reward for a
  competitor of the Company or any Group Company or in a business that competes
  or intends to compete with the Company or any Group Company.

  

 

 

 14
 

 

 

	
  Signed

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For and on behalf of
  the Company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signed

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Graham David Mullis

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated

  	
   

  	
   

  	
   

  
					

 

 15
 

 

APPENDIX 1

 

Certificate of Relevant Independent
Adviser

Graham David
Mullis (the Employee)

We refer to this Agreement between our client (the
Employee) and the Company. We now warrant and confirm that:

1.               our client has received
independent legal advice from [Howard Hymanson of Tarlo Lyons] (the Adviser) as to the terms and effect of
the Agreement in accordance with the Compromise Agreement Conditions (as
defined) and in particular the
effect of the Agreement on his
ability to pursue his rights before an Employment Tribunal;

2.               the Adviser has advised
the Employee in respect of all of the claims and prospective proceedings that
he has or may have against the Company, all Group Companies and any other
Protected Person (as defined in this Agreement) out of or in connection with
the Employment or its termination;

3.               the Adviser is a
Solicitor of the Supreme Court holding a current practising certificate and
that there is in place professional indemnity or insurance cover in respect of
the risk of a claim by the Employee in respect of loss arising in consequence
of the advice given by the Adviser;

4.               we are not employed by
or acting in this matter for the Company or any other Group Company (as
defined); and

5.               with effect from the
date of this letter, the Compromise Agreement Conditions (as defined) are
satisfied.

Signed:

Name of Adviser: Howard
Hymasnon

Firm: Tarlo Lyons

Address: 33 Watchmaker Court,
EC1M 4DB

Date:

 16
 

 

APPENDIX 2

Resignation Letter

[If an officer of multiple companies]

STRICTLY PRIVATE & CONFIDENTIAL

The Board of Directors

[Company Name]

[Company Address]

[Date]

Dear Sirs

Resignation from Directorships and Other Offices

I write to confirm my resignation, with immediate effect from the date
of this letter, from all directorships and other offices which I hold [within
the [NAME] group of companies], including (without limitation) the following:

[Insert Company Name]

[Insert Group Companies]

and I instruct and irrevocably authorise you, as my agent, to convey
and effect such resignations to each of the relevant companies, by sending a
copy of this letter to the respective Boards of Directors.

I further confirm that I have no cause of action against the Company or
any Group Companies (as defined in
Clause [15] of my Compromise Agreement dated [date]) and hereby waive all and
any such claims against it or them, arising from or connected with the above
resignation[s].

Yours faithfully

[Name]

 17
 

 

APPENDIX 3

Agreed Internal and External Announcement

External Annoucement:

Release Date:  20
November 2006

“1-800
CONTACTS, with the assistance of its investment banking advisor, Sonenshine
Partners, has completed the first round of its strategic review of ClearLab. In
the last 90 days, the Company has met with numerous third parties who have
expressed interest in AquaSoft Singles and other technology developed by
ClearLab. Based on these discussions, the Company is now committed to a
separation of ClearLab from its U.S. retail business and expects to announce
terms by the end of March 2007.

The
Company has also completed over the last several months an extensive review of
ClearLab’s manufacturing operations. Subject to any consultation that may be
necessary under United Kingdom law, the Company is evaluating a consolidation
of ClearLab’s manufacturing, research and development operations which are
currently carried out in the Singapore and United Kingdom manufacturing
facilities.

As
part of this potential consolidation, ClearLab’s UK-based President, Graham
Mullis, will not remain with the business. Mr. Mullis will depart from the
Company this month, and Darren Hall, the current head of ClearLab’s Singapore
operations will be promoted to Managing Director of ClearLab to assume his
responsibilities.

 18Exhibit
10.2

AGREEMENT
AND GENERAL RELEASE

This Agreement and General Release (the “Agreement”)
is made and entered into by and between Robert Main, his heirs, executors,
administrators and assigns (collectively “Main”), and 1-800 CONTACTS, INC. (“1-800
CONTACTS”).

RECITALS

a.             The
parties have decided to end Main’s employment with 1-800 CONTACTS, effective November
30, 2006, on the terms and conditions described in this Agreement;

b.             Main
and 1-800 CONTACTS desire to settle fully and finally all differences between
them, if any, including but not limited to, any differences in any way related
to or arising out of Main’s employment with 1-800 CONTACTS or the termination
of his employment; and

c.             Main
has agreed to certain obligations in exchange for consideration provided under
this Agreement.

COVENANTS

In
consideration of the mutual promises in this Agreement, it is agreed as
follows:

1.               Severance Payments.  After
10 days following his execution of this Agreement, Main will begin receiving as
severance the equivalent of one year’s salary of $210,000.00, less applicable
withholding.  Severance payments will be
made over a 12 month period corresponding to the intervals of 1-800 CONTACTS’
regular payroll.

2.               Bonus.  On or about
March 2007, Main will receive a bonus payment that will be calculated and paid
in accordance with an assessment of Main’s 2006 performance and 1-800 CONTACTS’
2006 performance.  The bonus amount
otherwise payable shall be prorated by 11/12 (representing 11 months worked in
2006).

3.               Health Benefits.  For
a period of twelve months following termination of Main’s employment, 1-800 CONTACTS
shall pay the regular employer and employee portion of Main’s health insurance premium
assuming he elects continuation coverage under the Consolidated Omnibus Budget
Reconciliation Act (COBRA) and remains eligible under it and does not become
covered under a new employer’s health plan.

4.               Relocation expenses. 
1-800 CONTACTS will reimburse Main up to a maximum of $50,000.00 for
reasonable, actual, and properly documented relocation expenses, provided that if
he moves as a result of new employment, he makes reasonable efforts to have his
new employer pay for his relocation expenses, in which event 1-800 CONTACTS
will reimburse him for relocation expenses not otherwise covered by the new
employer, if any.

 1
 

 

5.               Transitional Cooperation.  For a period of twelve months
following his execution of this Agreement, Main agrees to assist and cooperate
in the transition and reassignment of his former duties and responsibilities to
others.  Main will make himself available
upon request to answer questions and provide information and guidance in this
transitional process.  During this period
and thereafter, Main will also make himself available and cooperate in any
legal proceeding that may relate to his duties or employment at 1-800 CONTACTS
and to testify if requested by 1-800 CONTACTS.

6.               Non-Disparagement/Non-Interference.  Main agrees that he will not make
any disparaging remarks about 1-800 CONTACTS or its employees to any persons
whatsoever, and that he will refrain from casting any aspersions as to the
quality of their work, products, services, competence, ethics or
management.  Main further agrees not to
directly or indirectly interfere or undermine 1-800 CONTACTS’ reputation or relationships
with 1-800 CONTACTS’ employees, contractors, vendors, customers or prospects or
to discourage anyone from doing business or affiliating with 1-800 CONTACTS.

7.               Restricted Shares.  Main
understands and agrees that other than the 3,000 shares of 1-800 CONTACTS’
restricted stock that previously vested, he has no right, entitlement or
interest in any stock or other form of ownership in 1-800 CONTACTS now or in
the future, and that any existing or potential rights that he has or may have
under the Restricted Stock Agreement dated March 27, 2006 are superseded and
canceled by this Agreement and are null and void.

8.               Expenses.  Main agrees
to submit his final expense claim to 1-800 CONTACTS within five (5) days of
executing this Agreement.

9.               General Release.  As a material inducement to 1-800 CONTACTS
to enter into this Agreement, Main, on behalf of his heirs, executors,
administrators and assigns, irrevocably and unconditionally releases, acquits
and forever discharges 1-800 CONTACTS, its officers, directors, owners,
partners, agents, predecessors, successors, affiliates, subsidiaries, parent
companies, insurers and current and former employees from any and all charges,
complaints, claims, liabilities and obligations of any nature whatsoever,
including but not limited to, rights or claims arising out of contract, express
or implied, any covenant of good faith and fair dealing, any tort, Title VII of
the Civil Rights Act of 1964, as amended, the 1991 Civil Rights Act, the
Americans With Disabilities Act, the Fair Labor Standards Act, the Family and
Medical Leave Act, the Employee Retirement Income Security Act of 1974, or any
other federal, state or other governmental statute, regulation or ordinance,
any rights or claims for wages, vacation, overtime, commissions, bonuses,
stock, stock options, entitlements or benefits, which Main now has, or claims
to have, or which he at any time hereinafter may have or claim to have, whether
known or unknown as of the date that this Agreement is fully executed.

10.         Waiver of
Unknown Claims.  Main expressly waives the benefits
of any rule or law that provides, in sum or substance, that a release does not
extend to claims which the party does not know or suspect to exist in his favor
at the time of executing the release, which if known by

 2
 

 

him, would have
materially affected his settlement with the other party.  Main expressly waives and releases all such
claims.

11.         Release of
Age Discrimination Claims. 
Main understands that he is releasing any and all claims or causes of
action he has or may have under state and federal law concerning age
discrimination, including but not limited to, the Age Discrimination in
Employment Act of 1967, 29 U.S.C. Section 621 et seq.  He further acknowledges that he has been
advised that this release does not apply to any age-based claims arising
after the date of this Agreement and that he should seek the advice of his own
independent attorney.  He further
acknowledges that he has been given 21 days in which to review and
consider this release before entering into it, that if he executes it sooner
than this time, he does so voluntarily, and that he has 7 days after
signing it to revoke this Agreement by giving written notice to 1-800 CONTACTS.

12.         Return of
Company Property.  On or before the date he signs
this Agreement, Main shall deliver to 1-800 CONTACTS any and all of 1-800
CONTACTS’ documents, computer information and other property and all property
in his possession purchased with 1-800 CONTACTS funds.  By signing below, Main warrants that he will
not retain any 1-800 CONTACTS property or documents (or copies or other
reproductions or duplications thereof), either for his own use or the use of
any third parties, and that he has not provided to any third parties any of 1-800
CONTACTS property, documents or reproductions thereof.  Notwithstanding the foregoing, Main shall be
allowed to keep his 1-800 CONTACTS’ issued laptop and Blackberry.  However, Main must first submit the laptop
and Blackberry to 1-800 CONTACTS to allow 1-800 CONTACTS to replace and/or
scrub the laptop’s hard drive and replace the Blackberry Sim card prior to
allowing Main to keep these items.

13.         Agreement
Confidential.  Main represents that he will keep
the terms, amount and fact of this Agreement confidential.  Specifically, Main agrees that he will not
disclose the existence of this Agreement or any of its terms to anyone, except
to his legal counsel or immediate family members and unless required by law or
as may be necessary for preparation of his income tax returns.

14.         No Additional Compensation Owed.  Main acknowledges
and agrees that the severance payments and other compensation provided under
this Agreement constitute separate consideration to which Main is not otherwise
entitled absent this Agreement.  Main
further acknowledges and agrees that except as expressly contained in this
Agreement, 1-800 CONTACTS does not owe Main any additional compensation,
payments or benefits of any kind.

15.         Proprietary Information, Confidentiality,
Non-Solicitation, Non-Competition and other Post-Employment Obligations.  Main
acknowledges and agrees that all of the post-employment provisions of
the Employment Agreement between Main and 1-800 CONTACTS dated March 28,
2006 continue to apply in full force and effect and that he will continue to
abide by them according to their terms.

 3
 

 

16.         Injunctive Relief and Damages.  In the
event it becomes necessary for 1-800 CONTACTS to enforce this Agreement, Main
agrees that it may obtain an injunction barring him from further activity in
violation of this Agreement.  He also
agrees that in addition to injunctive relief, 1-800 CONTACTS may recover all
damages, lost profits, forfeiture of the compensation paid under the terms of
this Agreement, costs, expenses and attorney’s fees incurred as a result of his
violation of this Agreement.

17.         Severability and Enforcement To
Agreement’s Fullest Extent.  Main agrees that if a
court were to determine that this Agreement or any provision or part of it
would be enforceable only if modified, such a determination would not affect
the remainder of the Agreement which would continue to be binding. Likewise,
any modification that a court deemed necessary to make an offending provision
enforceable would be treated as binding on the parties and as if it had been
originally set forth in this Agreement. 
The parties authorize the court to modify any such unenforceable
provision whether by rewriting it, deleting any or all of it, adding additional
language, or making such other modifications as the court deems warranted to
carry out the intent of the parties as reflected in this Agreement to the
maximum extent permitted by law.

18.         No Admission
of Liability.  This Agreement shall not in any
way be construed as an admission by 1-800 CONTACTS that it has acted wrongfully
with respect to Main or any other person, and 1-800 CONTACTS specifically
disclaims any liability to or wrongful acts against Main or any other person,
on the part of itself, its employees or its agents.

19.         Utah
Agreement.  This Agreement shall be subject to
and governed by the laws of the State of Utah. 
The parties agree that any dispute, claim or controversy arising out of
or relating to the interpretation, validity or enforcement of this Agreement shall
be brought in a court of competent jurisdiction in Salt Lake City.  In the event of any litigation arising under
this Agreement, the parties agree that the prevailing party shall be entitled
to reasonable attorneys’ fees and costs.

20.         Entire
Agreement.  The terms and conditions contained
herein constitute the entire agreement between the parties and supersede all
previous communications, either oral or written, between the parties with
respect to the subject matter of this Agreement, and no agreement or
understanding varying or extending the terms of this Agreement shall be binding
upon either party unless in writing signed by or on behalf of such party.

 4
 

 

21.         Main represents and acknowledges
that he has read the foregoing Agreement, fully understands its content and
effect, and without duress or coercion, knowingly and voluntarily agrees to its
terms.

	
  

  	
   

  	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  	
  Robert Main

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  1-800 CONTACTS, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its 

  	
   

  	
   

  

 

 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]