Document:

BIIB - 2013.12.31 - Ex. 10.51

Exhibit 10.51
BY HAND DELIVERY

November 5, 2013

Raymond Pawlicki
23 Marlborough Street
Boston, MA 02116

Re:      Separation Agreement

Dear Ray:

The purpose of this Separation Agreement (the “Agreement”) is to confirm the terms of your separation from Biogen Idec Inc. or one of its subsidiaries (“Biogen Idec” or the “Company”).  The consideration being offered to you as described below is conditioned on you signing and not revoking this Agreement, and complying with all of its provisions.

1.  Transition Period and Separation.  Your employment with the Company will end on December 6, 2013 (the "Separation Date").  

Provided that your employment does not end earlier through resignation or otherwise, from the date of this letter through your Separation Date (“Transition Employment Period”), you will continue working if your supervisor so requires, will continue to receive your regular base pay, subject to applicable payroll withholdings, and will continue to receive benefits for which you are eligible under the Company’s benefit plans, including the accrual of vacation days.  Upon your Separation Date, Biogen Idec will pay you all unpaid wages due through that date, including all accrued but unused vacation.  You agree that with these payments, Biogen Idec will have paid you all compensation, wages, bonuses, and/or commissions due in connection with your employment or the termination of your employment. Unless otherwise provided for in this Agreement, benefits which have vested under any other employee benefit plan of the Company on or before the Separation Date will be managed in accordance with and subject to the terms and conditions of such plans. Your last day of required work (your “Last Work Day”) is the date on which you will be required to turn in your Company property.

2.  Severance Pay and Benefits.  In exchange for the mutual promises set forth in this Agreement, including the release of claims, and pursuant to the Severance Plan for U.S. Senior Vice Presidents effective October 13, 2008, Biogen Idec agrees to provide you with the following severance pay and benefits (the “Severance Pay and Benefits”) to which you agree you would not otherwise be entitled, provided you comply with the requirements set forth below:

		
	(i)
	Conditional Severance Pay: If you sign this Agreement and return it within 21 days to Georgette Verdin at Biogen Idec, 133 Boston Post Road, Weston, MA 02493 if you deliver/mail prior to November 22, 2013, or 225 Binney Street, Floor 5, Cambridge, MA 02142 if you deliver/mail on or after November 22, 20142, and do not revoke your acceptance pursuant to Section 7 below, the Company will provide you with a lump sum payment in the amount of $5,000.00 less lawful deductions.  This sum will be paid within ten (10) business days of your Separation Date.  

		
	(ii)
	Supplemental Severance Pay and Benefits: At the conclusion of the Transition Employment Period and after the Separation Date, if you accept and do not revoke your acceptance of the Reaffirmation of Release of Claims attached to this Agreement as Exhibit A (“Reaffirmation Agreement”), you will receive from Biogen Idec additional severance benefits described below (“Supplemental Severance Pay and Benefits”). Payment of the Supplemental Severance Pay and Benefits is expressly conditioned upon: (a) your signing and not revoking the Reaffirmation Agreement within 14 days of your Separation Date, and (b) the termination of your employment.  The Supplemental Severance Pay and Benefits include:

		
	a)
	The Company will provide you with a lump sum payment in the amount of $2,990,169, less lawful deductions, payable within ten (10) business days of the Effective Date of the Reaffirmation Agreement.  This amount consists of:  (1) $952,960 which, together with the Conditional Severance Pay, represents 18 months of pay at your base salary and target bonus, (2) $237,209 which is in lieu of an annual bonus payment and (3) $1,800,000 which represents a special recognition payment.   

		
	b)
	If you currently participate in group health benefits, the Company will subsidize your current level of participation in Biogen Idec’s group medical, vision and dental insurance plans through June 30, 2015 (“COBRA Subsidy Period”), provided that you complete and timely submit your COBRA election form. During the COBRA Subsidy Period, you will be required to pay the employee portion of the premiums and the Company will pay the employer portion of the premiums at the same rate as paid on behalf of current employees, as long as you do not become eligible to participate in another medical, vision and/or dental insurance plan.  After the COBRA Subsidy Period, you may continue your group health benefits for the period permitted by law, by paying the full premiums at your sole expense.  A separate notice regarding your COBRA rights and benefits will be mailed separately by SHPS, Biogen Idec’s COBRA administrator.  Irrespective of whether you accept the offer of Conditional Severance Pay and/or Supplemental Severance Pay and Benefits, the benefit period under COBRA will commence on the Separation Date.   

		
	c)
	The Company will provide you with up to nine months of outplacement services from a recognized provider of such services selected by the Company.

		
	d)
	The Company will not contest your application for unemployment benefits with the pertinent state agency.  The Company will not make any false statements in response to any inquiries from the agency and is not responsible for the final determination made the agency.

3.  Employee Affirmations.  Biogen Idec will pay you all unpaid wages due through your Separation Date, including all accrued but unused vacation. You affirm and agree that with these payments, you have received all leave (paid or unpaid), compensation, wages, bonuses, commissions, and/or benefits to which you may be entitled and that no other leave (paid or unpaid), compensation, wages, bonuses, commissions and/or benefits are due to you, except as provided in this Agreement.  You furthermore affirm that you have no known workplace injuries or occupational diseases and have been provided and/or have not been denied any leave requested under the Family and Medical Leave Act.  You also affirm that you have not been retaliated against for reporting any allegations of wrongdoing by the Company or its officers, including without limitation, any allegations of corporate fraud.  In addition, you affirm that all decisions regarding your pay and benefits through the date of your execution of this letter agreement and general release were not discriminatory based on age, disability, race, color, sex religion, national origin or any other classification protected by law. 

You represent that, based on your current knowledge and understanding, you have complied with all laws, regulations, rules and policies pertaining to Medicare, Medicaid, or any other federal health care program while employed at Biogen.  You further affirm that either (i) you are unaware of any non-compliant conduct by Biogen or its employees; or (ii) you have provided Biogen with any and all information you have, whether based on direct or indirect information, of any wrongdoing, irregularities, improprieties or illegalities regarding the ordering or delivery of any item or performance of any service by Biogen that is reimbursable by Medicare, Medicaid, or any other federal health care program.

You acknowledge and agree that, but for providing this waiver and release, you would not be receiving the Severance Pay and Benefits described herein.  If you apply for and accept a position at Biogen Idec (in any capacity, including employee, supplemental staff, contractor, etc.) either before or within 18 months following your Separation Date, you agree to repay Biogen Idec a prorated amount of the Severance Pay and Benefits you received.  

4.  Long-Term Incentive (LTI) Awards.   You acknowledge and agree that all LTI awards that are unvested as of the Separation Date will revert to Biogen Idec on the Separation Date and you will have no further or future rights to any of those reverted LTI Awards. 

5.  Release of Claims. In consideration for the promises and representations of Biogen Idec as described in this Agreement, you hereby agree to forever release and discharge Biogen Idec and any of its divisions, affiliates, subsidiaries, related entities, and its and their current and former directors, officers, employees, attorneys, agents, insurers, successors and assigns, in their individual and official capacities, as well as their health, welfare and benefits plans and programs or the administrators or trustees of the plans and programs (collectively “Releasees”), from any and all claims, demands, actions, liabilities, obligations, accounts, expenses, attorneys’ fees and causes of action, of every kind and nature, in law, equity or otherwise, whether known or unknown, asserted or unasserted, which you ever had, now have, or which may hereafter accrue in connection with any event, act or occurrence arising prior to the date that you execute this Agreement, including but not limited to all matters that arise in any way out of your employment or separation from employment with Biogen Idec.  This release is to be interpreted broadly and is intended to include, without limitation, any and all claims under federal, state or local statutes, ordinances, regulations or rules, including the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 

et seq., the Family and Medical Leave Act, 29 U.S.C. § 2601 et seq., the Worker Adjustment and Retraining Notification Act (“WARN”), 29 U.S.C. § 2101 et seq., and the Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq., all as amended; all claims arising out of the Fair Credit Reporting Act, 15 U.S.C. §1681 et seq., the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. §1001 et seq., the Sarbanes-Oxley Act of 2002, the Immigration Reform and Control Act, the Equal Pay Act, Sections 1981 thorough 1988 of Title 42 if the United States Code;  the Massachusetts Fair Employment Practices Law, M.G.L. ch. 151B; the Massachusetts Wage Act, M.G.L. ch. 149, §§ 148, 150, as amended; regulations, rules, or common law for breach of contract; detrimental reliance; breach of the covenant of good faith and fair dealing; wrongful discharge; employment discrimination, harassment, or retaliation; infliction of emotional distress; negligence; defamation; fraud; and non-payment of wages or benefits.  This release shall not extend to claims for state unemployment or workers’ compensation benefits. 

Consistent with applicable discrimination laws, nothing in this release shall be deemed to prohibit you from filing a charge or complaint of employment related discrimination with the Equal Employment Opportunity Commission (“EEOC”) or equivalent state agency, or from participating in any investigation or proceeding conducted by the EEOC or equivalent state agency.  Further, nothing in this release or Agreement shall be deemed to limit Biogen Idec’s right to seek immediate dismissal of such charge or complaint on the basis that your signing of this Agreement constitutes a full release of any individual rights under federal or state discrimination laws, or Biogen Idec’s right to seek restitution or other legal remedies to the extent permitted by law of the economic benefits provided to you under this Agreement in the event that you successfully challenge the validity of this release and prevail in any claim under federal or state discrimination laws.

Notwithstanding your right to file a charge or complaint with and/or participate in any investigation or proceeding by the EEOC or equivalent state agency, to the fullest extent permitted by law, you expressly waive your right to recover any type of personal relief from Biogen Idec or any other Releasees, including monetary damages or reinstatement, in any administrative action or proceeding, whether state or federal, and whether brought by you or on your behalf by an administrative agency, related in any way to the matters released herein.
    
6.  Consideration Period.  In signing this Agreement, you acknowledge that you understand its provisions, that your agreement is knowing and voluntary, that you have been afforded an opportunity to take at least twenty-one (21) days to consider its terms and consult with or seek advice from any person of your choosing, and that you have been advised by the Company to consult with an attorney prior to executing the Agreement.  You acknowledge that, if you choose to sign this Agreement before the end of the twenty-one (21) day consideration period, you have had a fully adequate opportunity to review the Agreement.  You agree that any modifications, material or otherwise, do not restart or affect in any manner the original 21-day consideration period. 

7.  Revocation Period. You further understand that for a period of seven (7) days following your execution of this Agreement, you may revoke the Agreement, and this Agreement shall not become effective or enforceable until this seven (7) day revocation period has expired, therefore making the effective date the eighth (8th) day after this Agreement is signed by you, provided that you do not revoke this Agreement (the “Effective Date”).  Any revocation within the seven (7) day period must be personally delivered or mailed by Federal Express or Express Mail to Georgette Verdin at Biogen Idec, 133 Boston Post Road, Weston, MA 02493 if you deliver/mail prior to November 22, 2013, or 225 Binney Street, Floor 5, Cambridge, MA 02142 if you deliver/mail on or after November 22, 2013, within seven (7) days of your execution of this Agreement.  This Agreement shall not become effective or enforceable until the revocation period has expired.  If the last day of the revocation period is a Saturday, Sunday, or legal holiday in Massachusetts, then the revocation period shall not expire until the next following day which is not a Saturday, Sunday, or legal holiday.

8.  No Pending Suits.  You acknowledge and agree that you have no pending lawsuit or complaint against Biogen Idec or any of the other Releasees in any court of law.  You further waive the right to seek or receive any money damages based upon any claim that might be asserted arising out of your employment against Biogen Idec or any of the other Releasees.

9.  Return of Property.  You agree to return all property and documents of Biogen Idec in your custody and possession upon the earlier of your Separation Date or your Last Work Day.  This includes, without limitation, all Biogen Idec-related documents, both in paper and electronic form, all Biogen Idec equipment and other property such as laptop or other portable computers, lab notebooks, proprietary and/or confidential company information, cell phones, parking passes, your office and building keys and/or security cards, and your identification badge.  

10.  Confidentiality of Company Information.  You agree to abide by all common law and statutory obligations relating to the protection and non-disclosure of Biogen Idec’s trade secrets and confidential and proprietary documents and information. In addition, by accepting this Agreement, you hereby confirm that you have previously executed Biogen Idec’s Proprietary Information and Inventions and Dispute Resolution Agreement (“PII Agreement”), and incorporated herein by this reference, and you hereby reaffirm and/or agree to all obligations under the PII Agreement that survive the termination of your 

employment.  No provision of this Agreement or Reaffirmation shall be interpreted as intending to restrict or prohibit either you or Biogen Idec from providing truthful information and responses to all inquiries made by state and federal law enforcement authorities.

11.  Confidentiality of This Agreement.  Except as required by law, you agree not to disclose the existence or content of this Agreement to any person, firm or entity, except to your accountant(s), financial planner(s), attorney(s), and members of your immediate family, and to them only if they agree to keep this Agreement confidential.

12.  Breach.  In the event of your material breach of Paragraphs 9, 10, 11, 13, or 14 of this Agreement or of any provision of the PII Agreement: (a) all of Biogen Idec’s obligations under this Agreement shall cease; (b) you agree to repay Biogen Idec (i) all compensation paid to you under this Agreement other than wages and accrued vacation earned through your Separation Date, and (ii) the value of all benefits you received under this Agreement; and (c) the general release set forth in paragraph 5 remains in full force and effect.  This provision shall in no way affect Biogen Idec’s ability to recover other damages, or obtain any other form of relief, otherwise available as a result of your breach of the PII Agreement. 

13.  Cooperation.  You agree that you will make yourself available to Biogen Idec, upon reasonable notice, either by telephone or in person to assist Biogen Idec in any matter relating to the services performed by you during your employment with Biogen Idec.  You also agree that you will cooperate fully with Biogen Idec in the defense or prosecution of any claims or actions now in existence or which may be brought in the future or on behalf of Biogen Idec or its agents.  Your full cooperation in connection with such claims or actions shall include, but not be limited to, your being available to meet with Biogen Idec's counsel to prepare for trial or discovery or an administrative hearing and to act as a witness when requested by Biogen Idec at reasonable times designated by Biogen Idec. Nothing in this section is intended or should be construed as requiring anything other than your cooperation in providing truthful and accurate information.

14.  Non-Disparagement.  You agree not to make any statements that are, or could reasonably be interpreted to be, disparaging about, or adverse to the business interests of Biogen Idec, its directors, officers, and employees, including but not limited to, any statements that disparage any product, service, finances, capability or any other aspect of the business of Biogen Idec.  Breach of this provision shall constitute a material breach of this Agreement and cause substantial, irreparable harm to Biogen Idec, for which you acknowledge there would be no adequate remedy at law.

15.  Miscellaneous.  Except as expressly provided for herein, this Agreement supersedes any and all prior oral or written agreements and sets forth the entire agreement between Biogen Idec and you with respect to your separation from Biogen Idec, including without limitation, any severance plan or policy.  Notwithstanding anything in the foregoing sentence to the contrary, your obligations under the PII shall continue in full force and effect.  No variations or modifications may be effective unless reduced to writing and signed by both parties.  

This Agreement shall be deemed to have been made in Massachusetts and shall take effect as an instrument under seal within Massachusetts.  The validity, interpretation and performance of this Agreement, shall be governed by, and construed in accordance with, the internal laws of Massachusetts, without giving effect to conflict of law principles.  Any action, demand, claim or counterclaim arising under this Agreement shall be commenced in Massachusetts and both parties acknowledge that material witnesses and documents would be located within Massachusetts. Both you and Biogen Idec waive the right to a trial by jury with respect to any such action or proceeding.

The provisions of this Agreement are severable, and if for any reason any part hereof shall be found to be unenforceable, the remaining provisions shall be enforced in full.  This Agreement may be executed in counterparts, each of which shall be an original, but all of which together shall constitute one agreement.  Execution of a facsimile copy of this Agreement shall have the same force and effect as execution of an original, and a facsimile signature shall be deemed an original and valid signature.

It is Biogen Idec’s desire and intent to make certain that you fully understand the provisions and effects of this Agreement.  To that end, you are encouraged and given an opportunity to consult with legal counsel.  By executing this Agreement, you are acknowledging that you have been afforded sufficient time to understand the provisions and effects of this Agreement and to consult with legal counsel, that your agreements and obligations under this Agreement are made voluntarily, knowingly and without duress and that neither Biogen Idec nor its agents or representatives have made any representations inconsistent with this Agreement.

16.  No Admissions.  The parties agree that neither this Agreement nor the furnishing of the consideration for this Agreement and the release shall be deemed or construed at any time for any purpose as an admission by Releasees of any liability or wrongdoing.

Nothing in this Agreement or the Reaffirmation Agreement shall be construed to prevent you from responding truthfully and completely to any lawfully issued court order or subpoena or from communicating with a government agency.  

If the foregoing correctly sets forth our agreement, please sign, date and return the original of this Agreement to HR Operations no later than 21 days after your receipt of this Agreement.  Please keep the enclosed copy of the Agreement for your records.

Very truly yours,

/S/    KENNETH DIPIETRO

                         Kenneth DiPietro 
EVP, Human Resources    

The foregoing Separation Agreement is agreed to and accepted by me on November 5, 2013.

/S/    RAYMOND PAWLICKI    
Raymond Pawlicki

Exhibit A
REAFFIRMATION OF RELEASE OF CLAIMS

1.    This Reaffirmation of Release of Claims (“Reaffirmation”) is being executed by me upon the ending of my employment with Biogen Idec Inc. or one of its subsidiaries (“Biogen Idec” or “the Company”), pursuant to the Separation Agreement previously signed by the parties (“Separation Agreement”).  I understand that this Reaffirmation may not be signed by me until after my last day of employment with Biogen Idec and will be considered null and void if I sign it before such date.  I also understand that this Reaffirmation must be signed within 14 days of my Separation Date. 
2.    In consideration for the Supplemental Severance Pay and Benefits (as that term is defined in the Separation Agreement), I hereby reaffirm my agreement to all of the terms and conditions of that Separation Agreement, including my agreement to release any and all claims, known or unknown, against the Releasees, as that term is defined therein.  Specifically, I unconditionally, irrevocably and absolutely release and discharge Biogen Idec, and any parent and subsidiary corporations, divisions and other affiliated entities of Biogen Idec, past and present, as well as their respective past and present employees, officers, directors, agents, attorneys, successors and assigns (collectively, “Releasees”), from all claims related in any way to the transactions or occurrences between us to date to the fullest extent permitted by law including, but not limited to, any losses, liabilities, claims, demands and causes of action, known or unknown, suspected or unsuspected, arising directly or indirectly out of or in any way connected with my employment with the Company, or the conclusion of my employment.  This release is intended to have the broadest possible application and includes, but is not limited to, any tort, contract, common law, constitutional or other statutory claims, as well as alleged violations of Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Massachusetts Fair Employment Practices Law, M.G.L. ch. 151B, and the Massachusetts Wage Act, M.G.L. ch. 149, §§ 148, 150, all as amended, and all claims for attorneys’ fees, costs and expenses.  However, this release shall not apply to claims for workers’ compensation benefits, unemployment insurance benefits, or any other claims that, by statute, cannot lawfully be waived by this Agreement.
3.    I further represent that, as of the date I sign this Reaffirmation, I have not filed any lawsuits, complaints, petitions, claims or other accusatory pleadings against the Company or any of the Releasees in any court of law.  I further agree that, to the fullest extent of the law, I will not prosecute in any court, whether state or federal, any claim or demand of any type related to the matters released, it being the intention of the parties that with the execution of this Reaffirmation, the Releasees will be absolutely, unconditionally and forever discharged of and from all obligations to or on behalf of me related in any way to the matters discharged herein.  Additionally, I expressly waive my right to recover any type of personal relief from the Company, including monetary damages or reinstatement, in any administrative action or proceeding, whether state or federal, and whether brought by me or on my behalf by an administrative agency, related in any way to the matters released herein.
4.    This Reaffirmation is also intended to release and discharge any claims I may have under the Age Discrimination in Employment Act (“ADEA”) based on any transactions or occurrences between the Company and me after the execution date of the Separation Agreement and through the Effective Date of the Reaffirmation. To satisfy the requirements of the Older Workers’ Benefit Protection Act, 29 U.S.C. section 626(f), the parties agree as follows:
		
	a.
	I acknowledge that I have read and understand the terms of this Reaffirmation.

		
	b.
	I understand that I have been advised to consult with an attorney concerning this Reaffirmation and have received all legal advice I deem necessary concerning this Reaffirmation. 

		
	c.
	I have been given 21 days to consider whether or not to enter into this Reaffirmation, and have taken as much of this time as necessary to consider whether to enter into this Reaffirmation, and have chosen to enter into this Reaffirmation freely, knowingly and voluntarily.  

		
	d.
	For a seven day period following the execution of this Reaffirmation, I understand that I may revoke this Agreement by delivering a written revocation to HR Operations, at Biogen Idec, 133 Boston Post Road, Weston, MA 02493, within seven (7) days of my execution of this Agreement, on or before the seventh day in order to be effective.  This Reaffirmation shall not become effective and enforceable until the revocation period has expired.  I understand that the Supplemental Pay and Benefits called for in paragraph 2 of the Separation Agreement is expressly conditioned upon my signing this Reaffirmation and will not be paid before the eighth day after I sign and deliver this Reaffirmation to the Company (“the Effective Date of the Reaffirmation”).  

		
	e.
	I understand that this Agreement shall not apply to any claims for age discrimination that arise after the Effective Date of this Reaffirmation.

5.    With the sole exception of the Supplemental Severance Pay and Benefits, I acknowledge that I have received all compensation, wages and expense reimbursements owed to me by the Company through my Separation Date, including, but not limited to, all salary, bonuses and accrued but unused vacation.
6.    Entire Agreement; Integration.  I understand that this Reaffirmation and the Separation Agreement, including the provisions referenced in paragraph 10 of the Separation Agreement and expressly incorporated therein, represent the entire agreement between me and the Company with respect to the subject matter hereof, superseding all previous oral or written communications, representations, understandings or agreements relating to this subject.
Nothing in this Reaffirmation shall be construed to prevent you from responding truthfully and completely to any lawfully issued court order or subpoena or from communicating with a government agency.  

BY SIGNING BELOW, I certify that I have read and understand all of this Reaffirmation, that I have received any advice or counsel I deem necessary regarding this Reaffirmation, and that I am is entering into this Reaffirmation freely and voluntarily, intending to be bound by its terms.

Dated: November 5, 2013                By: /S/    RAYMOND PAWLICKI             
Raymond Pawlickimm02-0514_8ke101.htm

EXHIBIT 10.1

 

 

TERMINATION PROTECTION AGREEMENT

 

THIS TERMINATION PROTECTION AGREEMENT (as hereinafter amended from time to time, this “Agreement”) is made and entered into by and among Sterling Jewelers Inc., a Delaware corporation (the “Company”) and Michael W. Barnes (the “Executive”), effective as of February 1, 2014 (the “Effective Date”).

 

W I T N E S S E T H

 

WHEREAS, the Company is engaged in the business of operating a chain of retail jewelry stores in the United States;

 

WHEREAS, the parties hereto are party to that certain employment agreement dated as of September 29, 2010, as amended (the “Prior Agreement”), which Prior Agreement automatically expired in accordance with its terms effective as of  January 31, 2014;

 

WHEREAS, the Company desires to continue to employ the Executive, and the Executive desires to remain employed, as Chief Executive Officer of Signet Jewelers Limited, a Bermuda corporation (“Signet,” and, together with its subsidiaries, the “Signet Group”), which for purposes of this Agreement is an affiliate of the Company), effective as of the Effective Date, subject to the terms and provisions of this Agreement.

 

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is mutually acknowledged, the Company and the Executive (individually a “Party” and together the “Parties”), intending to be legally bound, agree as follows:

 

Agreement

 

1. Definitions

 

(a) “Annual Bonus” means an annual cash bonus award in accordance with the annual bonus plan then in effect for executive officers of Signet, as approved by the Compensation Committee or its designee.

 

(b) “Board” means the Board of Directors of Signet.

 

(c) “Business” shall mean the operation of a retail jewelry business that sells to the public jewelry, watches and associated services.

 

(d) “Cause” means  (A) fraud, embezzlement, gross insubordination or any act of moral turpitude or misconduct, in each case, on the part of the Executive; (B) conviction of or the entry of a plea of nolo contendere by the Executive for any felony; or (C) (x) a material breach by the Executive of his duties, responsibilities or obligations under this Agreement or the attached Schedule 1, or (y) the willful failure or refusal by the Executive to perform and discharge a specific lawful directive issued to Executive by the Board within a reasonable period of time, not to be less than five (5) business days, following written notice thereof to the Executive by the Company or the Board.

 

 

 

 

  

  

  

 

 

(e) “Compensation Committee” means the compensation committee of the Board.

 

(f) “Good Reason” shall mean without the Executive’s prior written consent: (A) any material reduction in his target or maximum potential annual compensation opportunities as set forth on the attached Schedule 1; (B) any diminishment in the Executive’s title, principal responsibilities or basic reporting relationships as set forth on Schedule 1; (C) any requirement that the Executive relocate his principal place of employment by more than fifty miles from Akron, Ohio; or (D) a material breach by the Company of its obligations to the Executive as set forth on Schedule 1, which breach remains uncured for thirty days following written notice thereof provided by the Executive to the Company.

 

(g) “Long Term Incentive Plan” means the long-term incentive plan then in effect, as approved by the Compensation Committee or its designee.

 

2. Termination.  The Executive’s employment with the Company shall continue until terminated by either Party at any time and for any reason on at least 90 days’ advance written notice (other than upon the Executive’s death or upon a termination for Cause, which may be effective immediately).  The provisions of this Agreement exclusively shall govern the Executive’s rights upon termination of employment with the Company and its affiliates.

 

(a) Termination By the Company For Cause or Resignation By the Executive Without Good Reason.

 

(i) If the Executive’s employment with the Company is terminated by the Company for Cause (as defined below) or by the Executive’s resignation without Good Reason (as defined below), the Executive shall be entitled to receive solely the following: (A) base salary and accrued and unused vacation through the date of termination in accordance with the Company’s normal payroll practices; and  (B) any Annual Bonus or Long Term Incentive Plan payment that has been earned by the Executive for a completed fiscal year (or with respect to a Long Term Incentive Plan payment, a completed performance cycle) ending prior to the effective date of the Executive’s date of termination but which remains unpaid as of such date (the amounts described in clauses (A) and (B) being referred to as the “Accrued Rights”).

 

(b) Termination By the Company Without Cause, Resignation by the Executive for Good Reason or Automatic Termination Upon the Executive’s Death.

 

(i) If the Executive’s employment hereunder is terminated by the Company without Cause, if the Executive resigns for Good Reason, or if the Executive’s employment terminates automatically upon the Executive’s death, the Executive (or his beneficiary or estate) shall be entitled to receive solely the following in addition to the Accrued Rights, subject to the Executive’s continued compliance with the provisions of Sections 2 and 3

 

(A)           continued payment of Executive’s base salary as in effect immediately prior to such termination of employment (without giving effect to any reduction in base salary resulting in Executive’s resignation for Good 

 

 

 

  

2

  

 

Reason) for twelve months following the date of the Executive’s termination (paid in accordance with the Company’s normal payroll practices as in effect on the date of such termination); and

 

(B)           a lump sum amount equal to (1) the Annual Bonus the Executive would otherwise have received for the fiscal year in which the Executive’s termination of employment occurred, based on actual performance, upon a termination of employment by the Company without Cause or the Executive’s resignation for Good Reason, or (2) the amount of the Executive’s Annual Bonus for achievement at “target” level performance objectives for the fiscal year in which the Executive’s termination occurred due to the Executive’s death, in each case, payable in a lump sum during the period commencing on the 15th of April and ending on the 31st of May following the end of the applicable fiscal year of Signet; and

 

(C)           a lump sum amount equal to the sum (if applicable) of the Long Term Incentive Plan payment (or payments, if applicable) in respect of each then-ongoing performance cycle under the Long Term Incentive Plan as of the date of termination, with the amount to be paid in respect of each performance cycle calculated (1) with respect to awards that vest in whole or in part based on performance, for each completed fiscal year during a performance cycle, based on actual performance against the portion of the target allocable to such fiscal year, and, for the fiscal year in which the Executive’s termination of employment occurred, based on actual performance against the portion of the target allocable to such fiscal year, with payment prorated based on the number of calendar days that have elapsed since the beginning of such fiscal year through the date of termination (except that, if the Executive’s termination of employment occurred due to the Executive’s death, when calculating the amount to be paid for the fiscal year of termination of employment, it shall be assumed that target performance was attained), payable upon the conclusion of the applicable performance cycle in accordance with the Long Term Incentive Plan (but no later than the “short-term deferral” period under Section 409A (defined below)), and (2) with respect to awards that vest solely based on provision of services, based on the award the Executive otherwise would have received for the performance cycle, prorated based on the number of calendar days that have elapsed since the beginning of the applicable performance cycle through the date of termination, payable in accordance with the Long Term Incentive Plan; and

 

(D)           for twelve months following the date of termination, continued group medical coverage for the Executive and the Executive’s eligible dependents upon the same terms as provided to senior executive officers of the Company and at the same cost to the Executive and the same coverage levels as in effect immediately prior to such termination of employment (except to the extent such cost and coverage would have changed if the Executive had remained employed); provided, that such continued group medical coverage shall cease upon the Executive becoming employed by another employer and eligible for substantially similar coverage, as applicable, with such other employer.

 

 

 

 

  

3

  

 

 

For the avoidance of doubt, all payments under this Section 2(b) shall cease upon the Executive’s breach of the provisions of Sections 3 or 4 of this Agreement.

 

(c) Notice of Termination.  Any purported termination of employment by the Company or by the Executive (other than due to the Executive’s death) shall be communicated by written Notice of Termination to the other Party hereto in accordance with Section 10(f).

 

(d) Board/Committee Resignation.  Upon termination of the Executive’s employment for any reason, the Executive agrees to resign at the direction of the Board, as of the date of such termination and to the extent applicable, from the Board (and any committees thereof) and the Board of Directors (and any committees thereof) of any of the Company’s subsidiaries or affiliates.

 

(e) Waiver and Release; Timing of Payments.  Notwithstanding anything herein to the contrary, as a condition precedent to receiving any payments under this Section 2 (other than those amounts already accrued prior to the date of termination, including the Accrued Rights), Executive shall have executed, within twenty-one days, or if required for an effective release, forty-five days, following the Executive’s termination of employment, a waiver and release in substantially the form attached hereto as Exhibit A (the “Release”), which Release may be updated by the Company from time to time to reflect changes in law, and the seven-day revocation period of such Release shall have expired.  Subject to Section 6(b) and the execution of the Release pursuant to this Section 2(e), all payments under this Section 2 shall be payable as described above; provided, that any payments due prior to the sixtieth day after the Executive’s termination of employment shall be made on such sixtieth day.

 

3. Confidentiality; Ownership of Developments.

 

(a) During the term of the Executive’s employment with the Company or any of its subsidiaries or affiliates and for all time thereafter, the Executive shall keep secret and retain in strictest confidence and not divulge, disclose, discuss, copy or otherwise use or suffer to be used in any manner, except in connection with the Business of the Company and of any of the subsidiaries or affiliates of the Company, any trade secrets, confidential or proprietary information and documents or materials owned, developed or possessed by the Company or any of the subsidiaries or affiliates of the Company pertaining to the Business of the Company or any of the subsidiaries or affiliates of the Company; provided that such information referred to in this Section 3(a) shall not include information that is or has become generally known to the public or the jewelry trade without violation of this Section 3.

 

(b) The Executive acknowledges that all developments, including, without limitation, inventions (patentable or otherwise), discoveries, improvements, patents, trade secrets, designs, reports, computer software, flow charts and diagrams, data, documentation, writings and applications thereof (collectively, “Works”) relating to the Business or planned business of the Company or any of the subsidiaries or affiliates of the Company that, alone or jointly with others, the Executive may create, make, develop or acquire during the term of Executive’s employment with the Company or any of its subsidiaries or affiliates (collectively, the “Developments”) are works made for hire and shall remain the sole and exclusive property of the Company and its subsidiaries and affiliates and the Executive hereby assigns to the Company 

 

 

 

  

4

  

 

all of his right, title and interest in and to all such Developments.  Notwithstanding any provision of this Agreement to the contrary, “Developments” shall not include any Works that do not relate to the Business or planned business of the Company or any of the subsidiaries or affiliates of the Company.

 

4. Covenants Not to Solicit and Not to Compete.  The Executive agrees that Executive shall not, directly or indirectly, without the prior written consent of the Company:

 

(a) during his employment with the Company or any of its subsidiaries or affiliates and for a period of two years commencing upon termination of the Executive’s employment, solicit, entice, persuade or induce any employee, consultant, agent or independent contractor of the Company or of any of the subsidiaries or affiliates of the Company to terminate his or her employment or engagement with the Company or such subsidiary or affiliate, to become employed by any person, firm or corporation other than the Company or such subsidiary or affiliate or approach any such employee, consultant, agent or independent contractor for any of the foregoing purposes; or

 

(b) during his employment with the Company or any of its subsidiaries or affiliates and for a period of one year commencing upon termination of the Executive’s employment, the directly or indirectly own, manage, control, invest or participate in any way in, consult with or render services to or for any person or entity (other than for the Company or any of the subsidiaries or affiliates of the Company) which is primarily engaged in the retail jewelry business (“primarily” meaning having a product mix consisting of 25% or more jewelry sales per year); provided, however, that the restrictions of this Section 4(b) shall not extend to the ownership, management or control of a retail jewelry business by the Executive following the termination of employment provided that such activity is no less than five miles distant from any retail jewelry store of Signet at the time of such termination of employment; provided that notwithstanding the foregoing, the Executive shall be entitled to own up to 1% of any class of outstanding securities of any company whose common stock is listed on a national securities exchange or included for trading on the NASDAQ Stock Market.

 

5. Specific Performance.  The Executive acknowledges that the services to be rendered by the Executive are of a special, unique and extraordinary character and, in connection with such services, the Executive will have access to confidential information vital to the Business of the Company and the subsidiaries and affiliates of the Company.  By reason of this, the Executive consents and agrees that if the Executive violates any of the provisions of Sections 3 or 4 hereof, the Company and the subsidiaries and affiliates of the Company would sustain irreparable injury and that monetary damages will not provide adequate remedy to the Company and that the Company shall be entitled to have Sections 3 or 4 specifically enforced by any court having equity jurisdiction.  Nothing contained herein shall be construed as prohibiting the Company or any of the subsidiaries or affiliates of the Company from pursuing any other remedies available to it for such breach or threatened breach, including, without limitation, the recovery of damages from the Executive or cessation of payments hereunder without requirement for posting a bond.

 

6. Section 409A.

 

 

 

  

5

  

 

 

(a) The intent of the parties is that payments and benefit under this Agreement comply with or be exempt from Internal Revenue Code Section 409A and the regulations and guidance promulgated thereunder (collectively, “Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith or exempt therefrom, as applicable.  If the Executive notifies the Company that the Executive has received advice of tax counsel of a national reputation with expertise in Section 409A that any provision of this Agreement (or of any award of compensation, including equity compensation or benefits) would cause the Executive to incur any additional tax or interest under Section 409A (with specificity as to the reason therefor) or the Company independently makes such determination, the Company shall, after consulting with the Executive, reform such provision to try to comply with Section 409A through good faith modifications to the minimum extent reasonably appropriate to conform with Section 409A.  To the extent that any provision hereof is modified in order to comply with or be exempt from Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to the Executive and the Company of the applicable provision without violating the provisions of Section 409A.

 

(b) A termination of employment shall not be deemed to have occurred for purposes of this Agreement providing for the payment of any amounts or benefits that are considered nonqualified deferred compensation under Section 409A upon or following a termination of employment, unless such termination is also a “separation from service” within the meaning of Section 409A and the payment thereof prior to a “separation from service” would violate Section 409A.  For purposes of any such provision of this Agreement relating to any such payments or benefits, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.”  If the Executive is deemed on the date of termination to be a “specified employee” within the meaning of that term under Section 409A(a)(2)(B), then, notwithstanding any other provision herein, with regard to any payment or the provision of any benefit that is considered nonqualified deferred compensation under Section 409A payable on account of a “separation from service,” such payment or benefit shall not be made or provided prior to the date which is the earlier of (A) the expiration of the six-month period measured from the date of such “separation from service” of the Executive, and (B) the date of the Executive’s death (the “Delay Period”).  Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this Section 6(b) (whether they would have otherwise been payable in a single lump sum or in installments in the absence of such delay) shall be paid or reimbursed to the Executive in a lump sum on the first business day following the Delay Period, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

 

(c) (i) All expenses or other reimbursements as provided herein shall be payable in accordance with the Company’s policies in effect from time to time, but in any event shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by the Executive; (ii) no such reimbursement or expenses eligible for reimbursement in any taxable year shall in any way affect the expenses eligible for reimbursement in any other taxable year; and (iii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchanged for another benefit.

 

 

 

 

  

6

  

 

 

(d) For purposes of Section 409A, the Executive’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments.  Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within thirty days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.

 

(e) Nothing contained in this Agreement shall constitute any representation or warranty by the Company regarding compliance with Section 409A.  Subject to the above provisions of this Section 6, (i) the Company has no obligation to take any action to prevent the assessment of any additional income tax, interest or penalties under Section 409A on any person and (ii) the Company, its subsidiaries and affiliates, and each of their employees and representatives shall not have any liability to the Executive with respect thereto.

 

7. Compliance with Board Policies.

 

(a) Over the course of the five-year period that commenced on December 1, 2010, the Executive shall be required to build a holding of Shares equal to at least five times his Base Salary (the “Share Ownership Requirement”).  Until the Share Ownership Requirement has been achieved, the Executive shall be required to hold all Shares (i) received upon exercise of stock options or stock appreciation rights, as the case may be, under the Company’s equity plans (other than the minimum number of Shares required to pay the related tax) and (ii) pursuant to which the applicable restrictions have lapsed, in the case of restricted Shares granted under the Company’s equity plans (other than the minimum number of Shares required to pay the related tax).  For the avoidance of doubt, once the Share Ownership Requirement is achieved at any given Share price, such requirement shall be considered satisfied, notwithstanding any subsequent change in Share price.  The Share Ownership Requirement shall be required for so long as the Executive is the Chief Executive Officer of the Signet Group.

 

(b)            The Executive shall be subject to the written policies of the Board applicable to executives, including without limitation any Board policy relating to claw back of compensation, as they exist from time to time during the Executive’s employment with the Company.

 

8. Governing Law; Jurisdiction.

 

(a) This Agreement shall be subject to, and governed by, the laws of the State of Ohio applicable to contracts made and to be performed therein, without regard to conflict of laws principles thereof.

 

(b) Any action to enforce any of the provisions of this Agreement shall be brought in a court of the State of Ohio located in Summit County or in a Federal court located in Cleveland, Ohio.  The parties consent to the jurisdiction of such courts and to the service of process in any manner provided by Ohio law.  Each Party irrevocably waives any objection which it may now or hereafter have to the laying of the venue of any such suit, action, or proceeding brought in such court and any claim that such suit, action, or proceeding brought in such court has been brought in an inconvenient forum and agrees that service of process in 

 

 

 

  

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accordance with the foregoing sentences shall be deemed in every respect effective and valid personal service of process upon such Party.

 

9. Miscellaneous.

 

(a) Entire Agreement/Amendments.  This Agreement contains the entire understanding of the parties with respect to the subject matter hereto and supersedes any and all prior agreements (whether written or oral) between the Parties with respect thereto, including, without limitation, the Prior Agreement.  There are no restrictions, agreements, promises, warranties, covenants or undertakings between the parties with respect to the subject matter herein other than those expressly set forth herein.  This Agreement may not be altered, modified, or amended except by written instrument signed by the parties hereto.

 

(b) No Waiver.  The failure of a Party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver of such Party’s rights or deprive such Party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

 

(c) Severability.  The provisions of this Agreement are severable and the invalidity, illegality or unenforceability of any one or more provisions shall not affect the validity, legality or enforceability of any other provision.  In the event that a court of competent jurisdiction shall determine that any provision of this Agreement or the application thereof is unenforceable in whole or in part because of the duration or scope thereof, the parties hereto agree that said court in making such determination shall have the power to reduce the duration and scope of such provision to the extent necessary to make it enforceable, and that the Agreement in its reduced form shall be valid and enforceable to the full extent permitted by law.

 

(d) Assignment.  This Agreement and all of the Executive’s rights and duties hereunder shall not be assignable or delegable by the Executive.  Any purported assignment or delegation by the Executive in violation of the foregoing shall be null and void ab initio and of no force and effect.  This Agreement may be assigned by the Company to a person or entity which is an affiliate of the Company or a successor in interest to substantially all of the business operations of the Company.  Upon such assignment, the rights and obligations of the Company hereunder shall become the rights and obligations of such affiliate or successor person or entity.

 

(e) Successors; Binding Agreement.  This Agreement shall inure to the benefit of and be binding upon personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  In the event of the Executive’s death, all amounts payable hereunder to the Executive that are then unpaid, shall be paid to the Executive’s beneficiary designated by him in writing to the Company or, in the absence of such designation, to his estate.

 

(f) Notice.  For the purpose of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand or overnight courier or three days after it has been mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below in this Agreement, or to such other address as either 

 

 

 

  

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Party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.

 

If to the Company:

 

Sterling Jewelers Inc.

375 Ghent Road

Akron, Ohio 44333

Fax: (330) 668-5191

Attn:  Chief Financial Officer

 

with copies to:

 

Signet Jewelers Limited

110 Cannon Street

London, EC4N 6EU

Fax:  44(207) 621-0835

Attn:  Mark A. Jenkins

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, NY  10153-0119

Fax:  (212) 310-8007

Attn:  Amy M. Rubin

If to the Executive:

 

To his last address set forth on the payroll records of the Company

(g) Cooperation.  The Executive shall provide the Executive’s reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events occurring during the Executive’s employment hereunder.

 

(h) Withholding Taxes.  The Company may withhold from any amounts payable under this Agreement such Federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation.

 

(i) Survival.  The provisions of Sections 3, 4, 5, 8 and 9 of this Agreement  shall survive the expiration or termination of this Agreement and the Executive’s employment hereunder, irrespective of the reason for any termination

 

(j) Counterparts.  This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

 

 

[signatures on following page]

 

  

  

  

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the last date written below.

 

	 	STERLING JEWELERS INC.	 
	 	 	 	 
	
 

	
By: 

	/s/ Lynn Dennison	 
	 	Name: 	Lynn Dennison	 
	 	Title: 	Senior Vice President and General Counsel 	 
	 	Date: 	January 31, 2014	 

 

	 	EXECUTIVE	 
	 	 	 	 
	 	 /s/ Michael W. Barnes	 
	 	Michael W. Barnes	 
	 	Date: 	January 31, 2014	 
	 	 	 	 

 

 

 

 

 

 

 

 

[SIGNATURE PAGE TO BARNES TERMINATION PROTECTION AGREEMENT]

  

  

  

SCHEDULE 1

 

EMPLOYMENT TERMS, DUTIES AND ENTITLEMENTS

 

Capitalized terms used but not defined herein shall have the meaning ascribed to such terms in the Termination Protection Agreement, dated as of January 31, 2014, by and among Sterling Jewelers Inc. (the “Company”) and Michael W. Barnes (the “Executive”) to which this Schedule 1 is attached (the “Agreement”).

 

	
Position

	
Chief Executive Officer of the Signet Group

	 	  
	
Reporting Line

	
Executive shall report through the Chairman of the Board to the Board.

	 	  
	
Duties

	
Executive shall have such duties and authority, consistent with his position, as may be assigned from time to time by the Board.

 

For so long as the Executive serves as the Chief Executive Officer of the Signet Group during the term of the Executive’s employment with the Company or any of its subsidiaries or affiliates, the Executive shall, subject to the provisions of the Bylaws of Signet, also serve as a member of the Board and shall, if requested by the Company, also serve as a member of the board of directors of any of Signet’s or the Company’s subsidiaries without additional compensation.

 

Executive shall devote his full business time and best efforts to the performance of his duties and will not engage in any other business, profession or occupation for compensation or otherwise which would directly or indirectly conflict or interfere with the rendition of such services, without the prior written consent of the Board; provided Executive may (i) serve on any board of directors or trustees of any charitable or educational  organization or engage in other charitable, civic and professional activities, and (ii) subject to the prior approval of the Board, in its sole discretion, Executive may accept appointment to any board of directors of any business entity; provided in each case, and in the aggregate, that such activities do not conflict or interfere with the performance of the Executive’s duties or breach the terms of Section 3 or 4 of the Agreement.

	 	  
	
Annual Base Salary

	
Annual rate of $1,054,000, subject to annual review by the Compensation Committee, with changes, if any, to become effective on April 1 of the year following such annual review.

 

Base Salary shall not be reduced unless there is a comparable reduction in the base salaries of other named executive officers of Signet.

	
Annual Bonus

	
Target Bonus: 130% of Base Salary upon achievement of performance objectives at target for the applicable fiscal year of Signet.

 

Annual Bonus may be less than or greater than Target Bonus, based upon achievement of performance objectives against target levels, up to 260% of Base Salary.

 

Annual Bonus, if any, is payable in a lump sum during the period commencing on the 15th of April and ending on the 31st of May following the end of the applicable fiscal year of Signet.

 

	
Long Term Incentive Plan

	
Annual consideration for long-term awards (as determined in the Compensation Committee’s sole discretion) made in accordance with the terms of the Long Term Incentive Plan.

 

 

 

 

  

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Employee Benefits

	
Eligible for all Company health, life and disability insurance and other welfare, and retirement, savings, deferred compensation and fringe employee benefit plans, as in effect from time to time, on the same basis as those benefits are generally made available to senior executives of the Company.

 

Eligible for reimbursement of reasonable business expenses incurred the Executive during employment in the performance of the Executive’s duties, in accordance with Company policies and subject to timely submission of reimbursement requests.

 

	
Vacation

	
5 weeks paid vacation per year, subject to the Company’s vacation policies applicable to senior executives, as in effect from time to time.

 

	
Director and Officer Insurance

	
The Company shall keep in force for the Executive coverage under a directors and officers liability insurance policy, such coverage to be at a level no less than that maintained for substantially all of the executive officers of the Company or Signet (during the period the Executive is an executive officer of Signet) and substantially all of the members of the Board of Directors Signet (during any period the Executive is a member of the Board of Directors of Signet).

 

	
Executive Representations

	
Executive represents and warrants to the Company that the performance by Executive of the duties set forth on the Agreement and this Schedule 1 shall not constitute a breach of, or otherwise contravene, the terms of any employment agreement or other agreement or policy to which the Executive is a party or otherwise bound.

 

 

 

  

2

  

EXHIBIT A

 

RELEASE

 

 

This RELEASE (“Release”) dated as of ___________, 20__ between Sterling Jewelers Inc., a Delaware corporation (the “Company”), and Michael W. Barnes (the “Executive”).

 

WHEREAS, the Company and the Executive previously entered into that certain termination protection agreement dated January 31, 2014 (the “Agreement”); and

 

WHEREAS, the Executive's employment with the Company has terminated effective ______ __, 20__ (“Termination Date”);

 

NOW, THEREFORE, in consideration of the premises and mutual agreements contained herein and in the Agreement, the Company and the Executive agree as follows:

 

1. Capitalized terms not defined herein shall have the meaning as defined under the Agreement.

 

2. In consideration of the Executive’s release under Paragraph 3 hereof, the Company shall pay to the Executive or provide benefits to the Executive as set forth in Section 7, as applicable, of the Agreement, which is attached hereto and made a part hereof.

 

3.The Executive, on his own behalf and on behalf of his heirs, estate and beneficiaries, does hereby release the Company, and in such capacities, any of its subsidiaries or affiliates, and each past or present officer, director, agent, employee, shareholder, and insurer of any such entities, from any and all claims made, to be made, or which might have been made of whatever nature, whether known or unknown, from the beginning of time, including those that arose as a consequence of his employment with the Company, or arising out of the severance of such employment relationship, or arising out of any act committed or omitted during or after the existence of such employment relationship, all up through and including the date on which this Release is executed, including, without limitation, any tort and/or contract claims, common law or statutory claims, claims under any local, state or federal wage and hour law, wage collection law or labor relations law, claims under any common law or other statute, claims of age, race, sex, sexual orientation, religious, disability, national origin, ancestry, citizenship, retaliation or any other claim of employment discrimination, including under Title VII of the Civil Rights Acts of 1964 and 1991, as amended (42 U.S.C. §§ 2000e et seq.), Age Discrimination in Employment Act, as amended (29 U.S.C. §§ 621, et seq.); the Americans with Disabilities Act (42 U.S.C. §§ 12101 et seq.), the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), the Family and Medical Leave Act (29 U.S.C. §§ 2601 et seq.), the Fair Labor Standards Act (29 U.S.C. §§ 201 et seq.), the Employee Retirement Income Security Act of 1974 (29 U.S.C. §§ 1001 et seq.) and any other law (including any state or local law or ordinance) prohibiting employment discrimination or relating to employment, retaliation in employment, termination of employment, wages, benefits or otherwise.  If any arbitrator or court rules that such waiver of rights to file, or have filed on his behalf, any administrative or judicial charges or complaints is ineffective, the Executive agrees not to seek or accept any money damages or any other relief upon the filing of any such administrative or judicial charges or complaints.  The Executive relinquishes any right to future employment with the Company and the Company shall have the right to refuse to re-employ the Executive, in each case without liability of the Executive or the Company.  The Executive acknowledges and agrees that even though claims and facts in addition to those now known or believed by him to exist may subsequently be discovered, it is his intention to fully settle and release all claims he may have 

 

 

  

1

  

 

 

against the Company and the persons and entities described above, whether known, unknown or suspected.

 

4. The Company and the Executive acknowledge and agree that the release contained in Paragraph 3 does not, and shall not be construed to, release or limit the scope of any existing obligation of the Company and/or any of its subsidiaries or affiliates (i) to indemnify the Executive for his acts as an officer or director of Company in accordance with the Certificate of Incorporation and all agreements thereunder, (ii) to pay any amounts or benefits pursuant to Paragraph 2 of this Release or any Accrued Rights (as defined in the Agreement) to which the Executive is entitled under the Agreement, or (iii) with respect to the Executive’s rights as a shareholder of the Company, Signet or any of their subsidiaries.

 

5.Executive acknowledges that pursuant to the Release set forth in Paragraph 3 above, Executive is waiving and releasing any rights he may have under the Age Discrimination in Employment Act of 1967 (“ADEA”) and that Executive’s waiver and release of such rights is knowing and voluntary.  Executive acknowledges that the consideration given for the ADEA waiver and release under this Release is in addition to anything of value to which Employee was already entitled.

 

(a)Executive further acknowledges that he has been advised by this writing that:

 

(i)Executive should consult with an attorney prior to executing this Release and has had an opportunity to do so;

 

(ii)Executive has up to twenty-one (21) days within which to consider this ADEA waiver and release; 

 

(iii)Executive has seven (7) days following Executive’s execution of this Release to revoke this ADEA waiver and release, but only by providing written notice of such revocation to the Company in accordance with the “Notice” provision in Section 15(f) of the Agreement;

 

(iv)the ADEA waiver and release shall not be effective until the seven (7) day revocation period has expired; and

 

(v)the twenty-one (21) day period set forth above shall run from the date Executive receives this Release.  The Parties agree that any modifications made to this Release prior to its execution shall not restart, or otherwise affect, this twenty-one day (21) period.

 

(b)           It is the intention of the parties in executing this Release that this Release shall be effective as a full and final accord and satisfaction and release of and from all liabilities, disputes, claims and matters covered under this Release, known or unknown, suspected or unsuspected.

 

6.   This Release shall become effective on the first (1st) day following the day that this Release becomes irrevocable under Paragraph 5.  All payments due to the Executive shall be payable in accordance with the terms of the Agreement.

 

 

[remainder of page intentionally blank]

 

 

  

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IN WITNESS WHEREOF, the parties have executed this Release on the date first above written.

 

 

 

	 	STERLING JEWELERS INC.	 
	 	 	 	 
	 	
By: 

	 	 
	 	Name: 	 	 
	 	Title: 	 	 

	 	MICHAEL W. BARNES	 
	 	 	 	 
	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGE TO RELEASE]

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