Document:

exv10w2

Exhibit 10.2

RELOCATION POLICY

Effective April 6, 2009

1

 

CARBO

RELOCATION POLICY SUMMARY

	 	 	 
	MISCELLANEOUS RELOCATION
 ALLOWANCE

(taxable and not grossed up)

	 	One month’s salary ($10,000 maximum)
	 
	 	 
	HOME SALE OF PRIMARY RESIDENCE

(if sold through ARSI, non-taxable)

	 	The Home Sale Program is a Guaranteed Buyout though CARBO’s
Relocation Service Partner, All Relocation Services (ARSI). The
Realtor sales commission (not to exceed customary rate) and all
normal seller’s closing costs, not to include recurring costs are
paid by CARBO.

If home is appraised at a value below the employee’s original
purchase price, the difference will be taxable to the employee.
	 
	 	 
	HOME SELLING INCENTIVE

(taxable, not grossed up)

	 	If employee sells the home within 90 days, a 2% incentive will be paid
	 
	 	 
	LEASE CANCELLATION

(taxable and grossed up)

	 	Lease breakage of up to 2 months for unavoidable lease cancellation
penalties.
	 
	 	 
	HOME FINDING TRIP

EMPLOYEE AND SPOUSE

(taxable and grossed up)

	 	One trip, not to exceed 3 days. Travel, car rental, lodging, and meal
expenses will be covered.
	 
	 	 
	TEMPORARY LIVING 

(taxable and grossed up)

	 	Up to 90 days. Reimbursement for reasonable meals for the employee
and family. Lodging $3,000 maximum per month for employee and
family. Up to 30 days rental car reimbursement.
	 
	 	 
	RETURN TRIP 

(taxable and grossed up)

	 	In the event the employee relocates before member(s) of his/her
household, transportation for return trips home will be allowed every
15 days while in temporary living. Not to exceed 6 trips.
	 
	 	 
	HOME PURCHASE

(taxable and grossed up, except

origination fee and discount point)

	 	For employees who are homeowners at the time the relocation is
initiated, reimbursement of loan origination fee (1 pt.), and all
normal and customary buyer closing costs, not to include recurring
costs. General home inspection, not to exceed $500.
	 
	 	 
	RENTAL ASSISTANCE

(taxable and grossed up)

	 	One rental tour, which includes visiting rental sites, community
highlights, schools, and providing community/civic information.
	 
	 	 
	SHIPMENT OF HOUSEHOLD GOODS

(non-taxable)

	 	Full packing, full unpacking, and transporting of furniture and
personal property. If move is more than 500 miles, up to 2 vehicles
may be shipped. Reasonable and customary crating. Third Party
Services for appliance disconnect and hook-up. Shipment of household
goods to be insured by Third Party Insurance.
	 
	 	 
	STORAGE OF HOUSEHOLD GOODS

(1ST 30 days are
non-taxable; 31st
day-60th day 
taxable
and grossed-up)

	 	Storage of household goods for 60 days.
	 
	 	 
	FINAL MOVE

(1st $.24/mile, tolls,
parking, last night of lodging
 at
old location while goods in
transit, and 
lodging while in
transit
are non-taxable and not grossed up)

	 	Reasonable expenses for meals incurred by employee and family while
en route to new location. The most direct route must be taken.
Mileage will be reimbursed at the IRS rate, currently $.55/mile.

2

 

IMPORTANT NOTICE

CARBO has contracted with a professional relocation service company, All Relocation Services
(ARSI), to administer its relocation policy. Once you are authorized to receive relocation
benefits, CARBO will initiate your relocation through ARSI. ___with ARSI will be
your primary contact throughout your relocation, and will contact you to review your relocation
benefits as outlined in the CARBO policy.

Do not make any relocation-related commitments (including any real estate commitments for your home
sale or home purchase) before speaking with your ARSI Relocation Consultant.

Failure to comply with the relocation program outlined in this policy may result in reduced
benefits and possible exclusion from the program.

The contact information for your relocation consultant is:

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INTRODUCTION AND PURPOSE

Congratulations on your new assignment! CARBO wants to assist you in making a smooth transition to
your new location by providing professional assistance with your move. Benefits of the program are
based on eligibility and may include:

	 	 	 	 	 
	 

	 	EXPENSE ADMINISTRATION	 	 
	 
	 	 	 	 
	 

	 	     •       Expense Administration
	 	Page 7
	 
	 	 	 	 
	 

	 	     •       Miscellaneous Relocation Expense Allowance
	 	Page 7
	 
	 	 	 	 
	 

	 	ORIGIN SERVICES	 	 
	 
	 	 	 	 
	 

	 	     •       Marketing Assistance Program
	 	Page 8
	 
	 	 	 	 
	 

	 	     •       Independent Sale
	 	Page 10
	 
	 	 	 	 
	 

	 	     •       Home Sale Incentive
	 	Page 10
	 
	 	 	 	 
	 

	 	     •       Lease Cancellation
	 	Page 10
	 
	 	 	 	 
	 

	 	DESTINATION SERVICES	 	 
	 
	 	 	 	 
	 

	 	     •       House Finding Trip
	 	Page 10
	 
	 	 	 	 
	 

	 	     •       Temporary Living
	 	Page 11
	 
	 	 	 	 
	 

	 	     •       Return Trips
	 	Page 11
	 
	 	 	 	 
	 

	 	     •       Home Purchase
	 	Page 11
	 
	 	 	 	 
	 

	 	     •       Rental Assistance
	 	Page 12
	 
	 	 	 	 
	 

	 	FINAL MOVE BENEFITS	 	 
	 
	 	 	 	 
	 

	 	     •       Transportation of Household Goods
	 	Page 12
	 
	 	 	 	 
	 

	 	     •       Storage
	 	Page 13
	 
	 	 	 	 
	 

	 	     •       Final Move Expenses
	 	Page 13
	 
	 	 	 	 
	 

	 	TAX GROSS-UP
	 	Page 13
	 
	 	 	 	 
	 

	 	 AGREEMENT FOR REPAYMENT OF RELOCATION EXPENSES
	 	Page 15

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ELIGIBILITY

Benefits provided under this policy are for all employees transferring as a result of the
headquarter move to Houston. In general, the provisions of the relocation program apply to
full-time current employees who, at the request of management, are relocated domestically.
Full-time, experienced new hires will be handled on a case-by-case basis. Employee requested
relocations are not eligible for this program.

IRS regulations require you to work (or expect you to work) in the new location for at least 39
weeks to be eligible to deduct qualified relocation expenses. Exception: if CARBO moves you again
or you are laid off, you still qualify for the deduction. In addition, the IRS requires the
distance from your old home to your new work place must be a minimum of 50 miles further than the
distance from your old home to your old work place.

PAYBACK OF RELOCATION EXPENSES

If an employee leaves the employ of CARBO by voluntary resignation, except for medical reasons, or
is terminated for gross misconduct, within one year of relocating, he/she will be required to repay
the relocation costs incurred by the company pro rata to the proportion of the one-year period
remaining at the time of leaving. See Repayment Agreement.

PROGRAM ADMINISTRATION

The policy for relocation and moving expense reimbursement will be determined and administered by
the Human Resources Department. The Company’s decisions regarding the application and
interpretation of the relocation policy are final.
The Human Resources Department will notify ARSI of all authorized relocations. The “Request for
Relocation” form must be signed and approved by the Vice President of Human Resources before a
written or verbal offer is made to an employee. Once the offer has been made to the employee, the
hiring manager is responsible for notifying Human Resources of his/her acceptance. The
notification will begin the relocation process.

IT IS THE HIRING MANAGER’S RESPONSIBILITY TO INFORM THE EMPLOYEE NOT TO LIST THEIR HOME FOR SALE
PRIOR TO NOTIFICATION OF HUMAN RESOURCES AND THEIR APPROVAL.

All relocation expenses incurred by the employee must be submitted on a relocation expense
reimbursement form provided by All Relocation Service Services.

CARBO has partnered with All Relocation Services (ARSI) as its Relocation Service Partner to
administer and implement all parts of its relocation program from initiation to completion. Once
ARSI receives proper, written authorization from Human Resources,

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ARSI will begin the initiation
process for your relocation. A Relocation Consultant will then contact you within one (1) business
day to review the approved benefits of your policy. The Relocation Consultant will be your
advocate, manage the relocation from start to finish, and monitor the process to ensure consistent
and professional service delivery.

LENDER INFORMATION

The Relocation Consultant will send a relocation package with guidelines and basic information
about the relocation process. A list of contact names and numbers, including the names and phone
numbers for approved national lenders will be included.

The package will also contain information to help you with your move such as tips for selling a
home, tips for buying a home or tips for renting a home.

EXPENSE ADMINISTRATION

Under existing Federal and State Income Tax Regulations, certain relocation expense reimbursements
are designated as taxable income. All relocation expenses should be submitted to the Relocation
Consultant before being approved by the employee’s manager. ARSI will audit all
expenditures to ensure compliance with approved policy and inclusion of proper original
receipts. ARSI will process expense reimbursements within three (3) business days of receipt.

MISCELLANEOUS RELOCATION EXPENSE ALLOWANCE

A relocation allowance equal to one month’s salary ($10,000 maximum) will be provided to help with
expenses not otherwise reimbursable under the policy. For example:

	 	•	 	Storage over 60 days
	 
	 	•	 	Carpet installation or cleaning
	 
	 	•	 	Cleaning residence
	 
	 	•	 	New window coverings
	 
	 	•	 	Drapery alterations or cleaning
	 
	 	•	 	Chimney cleaning
	 
	 	•	 	Burglar alarms
	 
	 	•	 	Lawn care
	 
	 	•	 	TV antenna installation
	 
	 	•	 	TV adjusting
	 
	 	•	 	Tuition fees lost
	 
	 	•	 	Appliance installation
	 
	 	•	 	Membership dues lost
	 
	 	•	 	Advance entertainment purchase
	 
	 	•	 	Income tax preparation assistance
	 
	 	•	 	Movement of unauthorized vehicles
	 
	 	•	 	Perishable food or firewood left behind
	 
	 	•	 	Movement of domestic pets and farm type animals
	 
	 	•	 	Unusual hobbies
	 
	 	•	 	Snow removal
	 
	 	•	 	Piano tuning

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The miscellaneous relocation allowance may be requested once your relocation has been authorized.
It applies to both homeowners and renters. Only one allowance per household will be issued.

The miscellaneous allowance is considered a supplemental payment and is subject to tax withholding.
The allowance is not qualified for the “tax gross up” calculation.

HOME SALE

Marketing Assistance Program

In order to expedite the transfer, maximize relocation benefits, and reduce overall costs to
the employee and CARBO, ARSI’s home sale assistance program should be utilized. The employee
should not list his/her home for sale until he/she has spoken to his/her Relocation Consultant
about Realtor options. Approved Realtors will be required to work with ARSI and agree to an
exclusion clause which will be explained by the Relocation Consultant.

Through an in-depth interview process, the Relocation Consultant will assist in the selection of
two qualified, experienced real estate professionals, who will be asked to complete a thorough
Broker Market Analysis (BMA) of the employee’s home. If the employee has a real estate agent that
he/she would like to utilize, who is experienced, knowledgeable of the local market, and familiar
with relocation procedures; he/she may be included in the BMA selection process with the approval
of your ARSI relocation consultant.

The two selected agents will meet with the employee to inspect his/her home, talk with him/her
about their qualifications and what they would do to market the home effectively. They will then
prepare a Broker Marketing Analysis (BMA) report reflecting their opinions of a suggested list
price and the probable sale price of the employee’s property within a 90 day marketing period. The
agent will then send a copy of the price analysis to the Relocation Consultant for review.

The Relocation Consultant will review the BMA reports and discuss them with the employee, including
suggested list prices. The employee will then select one of the agents to list his/her home and
ARSI will send the listing agent instructions, with the required “Exclusion Clause” to the selected
Realtor. The Relocation Consultant will monitor the performance of the agent throughout the
marketing period, keep the employee advised of changes in the market, and help the employee assess
his/her options if a change in strategy seems indicated.

Some properties are ineligible for CARBO’s relocation program including those with structural
defects of the roof, or foundation; well, or septic systems that fail certification; zoning or
easement disputes; building code violations, toxic or hazardous materials or substances (e.g.,
radon, asbestos, lead paint, composite board siding or UFFI); synthetic stucco siding (EIFS) or
co-op apartments.

7

 

All offers received on the home during the Marketing Assistance period must be presented to and
negotiated by ARSI. ARSI will present the terms and conditions to the employee for his/her
approval but all transactions (i.e., negotiations, counter
offers and acceptances) must be managed by ARSI for the employee to receive favorable tax
treatment. The employee should call his/her Relocation Consultant immediately upon receiving an
offer. If an offer is agreed to and accepted, the Relocation Consultant will sign the contract on
behalf of All Relocation Services. The CARBO employee will receive a Contract of Sale from ARSI
that mirrors the terms and conditions to which they agreed with the Buyer. Your ARSI Consultant is
trained in real estate and negotiations and will be your advocate throughout the negotiations and
your relocation process.

If no offer is received during the marketing assistance period, the employee shall receive a
guaranteed buyout at the employee’s original purchase price. The employee must submit their HUD-1
form to the Relocation Consultant as evidence of their original purchase price. 60 days into the
Marketing Assistance period, CARBO will order 2 independent appraisals. If the average of these
appraisals is less than the employee’s purchase price, the difference will be taxable (and not
grossed up) to the employee.

Employees are responsible for all costs and risks associated with the home up to and including the
date of closing with ARSI. These include proration for taxes, interest on the mortgage, utilities,
homeowner’s insurance, agreed upon repairs required from any inspections, and other costs
associated with ownership of the home. After the date of closing, ARSI will be responsible for
these costs.

At closing, the employee will receive the final net proceeds (the equity) in the property. Net
proceeds are defined as the sales price of the home minus liens, mortgages, appropriate prorations
and agreed to repair amounts.

CARBO covers the normal and customary closing costs associated with the sale of the employee’s
primary residence. It does not cover repairs or concessions Seller agrees to pay on behalf of the
buyer. The typical reimbursable cost as follows:

	 	•	 	Sales commission (not to exceed customary, legal rate)
	 
	 	•	 	Legal fees
	 
	 	•	 	Title and abstract expenses
	 
	 	•	 	State or local transfer taxes, revenue stamps
	 
	 	•	 	Recording and notary fees
	 
	 	•	 	Escrow or closing fees
	 
	 	•	 	Home Warranty (Maximum $400)
	 
	 	•	 	Pest Inspection if State Required
	 
	 	•	 	Tax Certificates

CARBO will not reimburse prepayment penalties required of some mortgages when selling a home.

8

 

Please note: It is the responsibility of the employee to work with ARSI to sell his or her
residence prior to receiving a Guaranteed Buyout Offer from ARSI.

INDEPENDENT SALE

Should a home be ineligible for the relocation program or should the employee elect not to
participate through ARSI, CARBO will reimburse typical costs associated with the home sale
transaction but the EMPLOYEE WILL NOT BE ELIGIBLE FOR TAX ASSISTANCE.

Reimbursable expenses include real estate commissions not to exceed 6% and legal fees (i.e., up to
$500 for documentation preparation and review) and disbursements (i.e., title search, evaluation
and certification of status). HUD statements must support requests for reimbursement.

HOME SELLLING INCENTIVE

CARBO provides a home selling incentive for those individuals who are able to sell their home
within ninety (90) days. Employees will receive 2% of the selling price of the home. The
incentive will be paid after the property is successfully closed. All offers and contracts must be
approved and negotiated in conjunction with ARSI, who will sign as Seller, once terms and
conditions meet the employee’s and CARBO’s approval. The employee must not sign, negotiate or take
any action regarding his/her home sale on his/her own, without first contacting the ARSI Relocation
Consultant.

This payment is not grossed up. 

LEASE CANCELLATION

A maximum of 2 months rent will be reimbursed for unavoidable lease cancellation penalties. In
requesting reimbursement of lease cancellation expenses, a copy of the lease and any other
documents substantiating the expenses should be attached to a relocation expense report, and then
submitted to All Relocation Services. When renting in the new location, it is advisable to have a
“transfer clause” included in your lease.

HOUSE FINDING TRIP

ARSI will contact the employee directly and oversee the home search through an assigned real estate
professional. This service is designed to help the employee identify lifestyle and household
needs, and then to find and finance a home that is appropriate for the employee and his/her family.
This process will provide objective and reliable information and save the employee time and effort
as he/she undertakes the search for his/her new home.

9

 

CARBO will pay reasonable transportation (coach fare if flying), rental car, lodging, and meal
expenses for the employee and spouse (no children) to secure permanent housing in the new location.
A maximum of one (1) trip is allowed with a limit of (3) days.

TEMPORARY LIVING

Whenever possible, relocation should be scheduled so that the employee can complete the move (with
his/her family) and establish residence immediately upon arrival at the new location. If
circumstances prevent this from happening, ARSI will arrange for temporary living accommodations
for employee and his/her family. Temporary lodging for employee is up to a maximum of $3,000 per
month for a maximum of 90 days per relocation event. Reasonable meal expenses for the employee and
family will be reimbursed. The employee is required to complete a relocation expense reimbursement
form and attach original legible receipts in order to be reimbursed for the above listed expenses.
The Relocation Expense form and receipts should be sent to your ARSI Relocation Consultant.

Car rental will be reimbursed up to a maximum of 60 days. This service will be coordinated through
All Relocation Services. Mileage reimbursement will be calculated at the current IRS rate.

RETURN TRIP(S)

In the event the employee relocates before his/her household, transportation for return trips home
will be allowed every 15 days during the 90 days (maximum 6 trips). Transportation will be limited
to air travel (coach fare) or personal vehicle, if a reasonable distance. Whenever possible, trips
should be coordinated to include a weekend to reduce the time away from work. All travel will be
coordinated through ARSI.

HOME PURCHASE

In order to reduce overall costs to the employee and CARBO, ARSI’s home purchase program must
be utilized. The employee should not engage a Realtor until he/she has spoken to his/her
Relocation Consultant about Realtor options. 

If the employee is a home owner at the time the relocation is initiated, CARBO will reimburse
employee for normal closing costs on a new home which by local custom are typically paid by the
buyer. The costs include:

	 	•	 	Loan Origination Fee (1 point)
	 
	 	•	 	Mortgage Application Fee
	 
	 	•	 	Lender Processing Fee
	 
	 	•	 	Legal Fees
	 
	 	•	 	Title Search/Insurance
	 
	 	•	 	Credit Report

10

 

	 	•	 	Attorney Fee
	 
	 	•	 	Home Inspection (HR approval is required should the amount exceed $500.00)
	 
	 	•	 	Survey
	 
	 	•	 	Recording and Notary Fees
	 
	 	•	 	Appraisal Fee
	 
	 	•	 	Homeowner Association Transfer Fees

In order to receive reimbursement, the employee must submit the settlement statement or HUD-1 along
with the relocation expense report to the Relocation Consultant.

RENTAL ASSISTANCE

CARBO will provide rental assistance to employee through ARSI. The service includes visiting
rental sites, community highlights, schools, and providing community/civic information.

Once a rental property is selected and upon execution of the new leasing agreement, the employee
should request that the following clause be inserted:
“In the event the Tenant is required to move to another area as a condition of employment, Tenant
may terminate the lease without penalty upon thirty (30) days written notice to Landlord/Owner.
Tenant shall supply Landlord/Owner with written notice from his/her employer that the transfer will
occur.”

TRANSPORTATION OF HOUSEHOLD GOODS

The household goods move will be coordinated through ARSI. CARBO will pay the cost of packing,
insuring, transporting, and unpacking furniture and personal property. It shall be the
responsibility of the employee to pay the cost of shipping pets, domestic or farm animals,
disc/dish antennas, dune buggies or go carts, canoes, boats, snowmobiles and their trailers, heavy
shop machinery, firewood, bricks, cement blocks, lumber and other building supplies. Wine,
ceramics, rocks, or other collections of excessive weight are not covered. If items of this nature
are moved, a prorated cost will be calculated and charged to the employee.

Extra stop charges are not authorized by CARBO. If arrangements are made for an extra stop, the
charges for this service will be charged to the employee.

If the move is over 500 miles, CARBO will cover the costs to ship or pay mileage for up to 2
vehicles. For moves under 500 miles, the cost of mileage only will be paid for up to 2 vehicles.

11

 

STORAGE

Storage expense is only to be utilized where absolutely necessary. When storage is required, CARBO
will pay for up to 60 days.

HOUSEHOLD GOODS CLAIMS PROCESS

In the event of damage or loss, it is the employee’s responsibility to contact ARSI Household Goods
Coordinator to request a form and file a claim within 48 hours to report the damage and the claim
form must be completed and returned within 30 days. If there are difficulties resolving a claim,
the employee should contact the Relocation Consultant for assistance.

FINAL MOVE EXPENSES

Travel will be coordinated through ARSI. The employee will be reimbursed for reasonable expense
for meals incurred by the employee and his/her family while en route to the new location. The most
direct route must be taken; any deviations from this route (side trips, vacation, etc.) are not
reimbursable. The employee is required to complete a relocation expense report for the above
listed expense and return it to ARSI.

All relocation expenses and services must be completed and submitted for reimbursement (where
applicable) within 1 year of employee’s date of transfer.

TAX GROSS UP

CARBO may reimburse relocation expenses as outlined in the policy. Certain expenses may be
excludable from gross income or claimed as deductions on the employee’s Federal tax return. Some
of the expenses are not excludable or deductible for tax purposes. Those to be grossed-up by CARBO
are listed below:

	 	•	 	Temporary Living
	 
	 	•	 	House Finding Trip
	 
	 	•	 	Lease Cancellation
	 
	 	•	 	Return Trips
	 
	 	•	 	Home Purchase
	 
	 	•	 	Storage (after 30 days)

Expenses which are “qualified” as Deductible/Excludable Moving Expenses by the employee include:

	 	•	 	Transportation costs of moving household goods, personal effects and car
	 
	 	•	 	In-transit storage, not to exceed 30 days
	 
	 	•	 	Some transportation expenses for moving the employee and his/her family

12

 

	 	•	 	Expenses incurred for lodging for the employee and family while en route to the new
location
	 
	 	•	 	Some home purchase costs

Expense which are “non-qualified” as Deductible Moving Expenses by the employee include:

	 	•	 	New home finding expenses
	 
	 	•	 	Some home purchase costs
	 
	 	•	 	Temporary living
	 
	 	•	 	Lease cancellation
	 
	 	•	 	In-transit storage over 30 days
	 
	 	•	 	Reimbursed home sale costs
	 
	 	•	 	Miscellaneous allowance
	 
	 	•	 	Part of final trip mileage

At the end of the calendar year, a RTR (Relocation Tax Report) will be provided to each employee.
This will show the total amount of relocation expense payments that have been included in the
employee’s income. This will guide the employee in determining deductions when filing his/her
return. If multiple moves occur in the same calendar year, a separate RTR will be provided for
each move

This document in no way shall be construed to contain tax or legal advice for recipients of
relocation benefits. It is the employee’s responsibility to assure proper withholding allowances.
Neither CARBO nor ARSI makes any representation as to legal or tax matters inherent in this
document.

13

 

AGREEMENT FOR REPAYMENT OF

RELOCATION EXPENSES

The undersigned (“Employee”) will receive relocation benefits from CARBO to assist in moving
his/her residence in connection with his/her employment by CARBO. These benefits are provided by
CARBO subject to the provisions described in the relocation policy. Employee acknowledges he/she
has received a copy of this guide and agrees to abide by its provisions.

Employee further agrees to the following terms and conditions with respect to repayment of any
relocation benefits provided during his/her employment with CARBO:

	 	1.	 	Employee understands and agrees that any relocation benefits received from CARBO
shall be used solely to defray bona fide expenses reasonably incurred by Employee when
he/she moves or transfers to a new location for purposes of employment with CARBO. These
benefits shall not be used for any other purpose.
	 
	 	2.	 	All qualified relocation expenses submitted for reimbursement by CARBO must be
accompanied by a valid receipt, invoice, or other documentation indicating the nature
and amount of the expense incurred. CARBO will not pay for any otherwise qualified
relocation expense for which supporting documentation is not submitted timely.
	 
	 	3.	 	In the event Employee receives benefits in excess of the amount he/she is
eligible to receive, Employee shall promptly repay all such amounts to CARBO. In lieu of
direct payment of such amounts, Employee hereby expressly authorizes CARBO to withhold
any excess benefit payments he/she has improperly received from any payments which are
due or shall become due to Employee from CARBO, including wages and business expense
reimbursements. If the payment of such excess relocation benefits is caused by any
intentional misrepresentation or concealment on the part of Employee, he/she shall be
subject to disciplinary action, up to and including termination of employment by CARBO,
as well as potential legal action.
	 
	 	4.	 	Employee understands and agrees that the following terms apply to their
relocation benefits provided by CARBO:

	 	(a)	 	If Employee remains a regular full-time employee of CARBO for twelve (12)
months following the Effective Date, as defined in sub-section (c) below, Employee
shall thereafter have no further obligation to repay to CARBO any relocation
benefits received.

14

 

	 	(b)	 	If Employee voluntarily terminates his/her employment with CARBO at any
time, except for medical reasons, or is terminated for gross misconduct, within
twelve (12) months following the Effective Date, Employee agrees to repay CARBO the
pro-rata portion of the relocation benefits for the remainder of the 12-month
period. Thus, 1/12th of the total relocation benefits received by
Employee will be forgiven for each month of service calculated from the Effective
Date to the date of termination. If, for example, Employee voluntarily terminates
his/her employment six months after the Effective Date, Employee shall be responsible
for repayment to CARBO of 50% of the total relocation benefits received. Employee
understands and agrees that these obligations survive beyond his/her employment with
CARBO.
	 
	 	(c)	 	“Effective Date,” for purposes of this Section, shall be defined as
either: (i) Employee’s date of hire; or (ii) the effective date of Employee’s
transfer to a new location, whichever is applicable. The first definition shall
apply to employees newly hired by CARBO who become eligible for relocation benefits.
The second definition shall apply to existing CARBO Employees who are eligible to
receive relocation benefits in connection with a transfer of residence.

	 	5.	 	If Employee voluntarily terminates his/her employment owing a balance under
Section 4, above, Employee expressly authorizes CARBO to withhold from his/her final
wage payment and/or business expense reimbursement any amount up to 1/12th of
the total relocation benefits received by Employee. Employee shall promptly pay the
total remaining balance directly to CARBO. If, following his/her termination, Employee
fails to repay to CARBO all or any portion of the relocation benefits owed under this
Agreement, CARBO reserves the right to initiate legal action to collect such payments.
In that event, Employee agrees to pay CARBO its reasonable attorneys’ fees and costs
incurred in any collection action. Employee further agrees to pay CARBO reasonable
interest (at the prime rate plus 1 %) on any unpaid balances due.
	 
	 	6.	 	Nothing in this Agreement is intended to create any contract of continued
employment by CARBO or to modify the at-will nature of Employee’s employment.
	 
	 	 	 	I have read, understand and agree to comply with the terms of this Agreement.

	 	 	 	 	 	 	 
	 

Signature

	 	 
	 	 

Date
	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 

Employee Name

	 	 	 	 	 	 

Relocation benefits will not be processed without a signed

Employee Reimbursement Agreement

15exv10w1

Exhibit 10.1

Charles Elliott (C.E.) Andrews

CONFIDENTIAL AGREEMENT AND RELEASE

     SLM Corporation and its subsidiaries, predecessors, and affiliates (collectively “SLM”) and I
have reached the following confidential understanding and agreement. In exchange for the Special
Payments and other consideration listed below, I promise to comply fully with the terms of this
Confidential Agreement and Release (“Agreement and Release”). In exchange for my promises, SLM
agrees to provide me with the benefits listed below, certain of which I am not otherwise entitled.

     (1) Special Payments and Benefits:

     (a) Unless I have revoked this Agreement and Release pursuant to Section (8) below, SLM
will pay me severance pay in the following manner: a total amount of $2,500,000, less
withholding taxes and other deductions required by law, paid in a lump-sum payment. Such
severance payment will be made in a lump sum no earlier than the eighth calendar day and no
later than the twenty-first calendar day after my signature on this Agreement and Release.

     (b) Unless I have revoked this Agreement and Release pursuant to Section (8) below, SLM
will pay me an additional payment of $500,000 in lieu of a 2008 bonus, less withholding
taxes and other deductions required by law. Such additional payment will be made in a lump
sum no earlier than the eighth calendar day and no later than the twenty-first calendar day
after my signature on this Agreement and Release.

     (c) Medical/Dental/Vision Continuation: My current medical, dental and vision coverage
will continue through the end of the month of my termination. The first day of the month
following my Termination Date, on October 1, 2008, I will have the right to continue my
current medical, dental and vision coverage through COBRA for up to 12 months. If I
properly elect COBRA continuation coverage, SLM will pay directly to the insurance carrier
the employer portion of the total cost of my medical, dental and vision insurance premiums
for the 12-month period of October 1, 2008 through September 30, 2009.

     (d) Benefit Programs: I waive future coverage and benefits under all SLM disability
programs, but this Agreement and Release does not affect my eligibility for other Company
medical, dental, life insurance, retirement, and benefit plans or the contract pension
benefits I have accrued through my termination date under my Employment Agreement of
February 24, 2003. Whether I sign this Agreement and Release or not, I understand that my
rights and continued participation in those plans will be governed by their terms, and that
I generally will become ineligible for them shortly after my termination, after which I may
be able to purchase continued coverage under certain of such plans. I understand that
except for the benefits that may be due under 401(k), pension, supplemental pension,
supplemental retirement benefit as identified in my Employment Agreement, and other deferred
compensation plans to which I may be entitled under SLM’s standard employee benefit plans,
that I will not receive any other wage, vacation, or other similar payments from SLM or any
of the entities discussed in Section (2).

     (e) For SLM equity vesting purposes, SLM deems my termination a job abolishment.

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     (f) Subject to any earlier payment provisions set forth above, and except for the
benefits and payments described in 1(c) (medical/dental/vision continuation) and
1(d)(benefit programs), all payments or reimbursements described in this Section 1 shall be
paid to me on or before March 15, 2009.

     (2) Release: In consideration of the Special Payments and Benefits described above, I agree
to release SLM, and all of its subsidiaries, affiliates, predecessors, successors, and all related
companies, and all of its former and current officers, employees, directors, and benefits plan
trustees of any of them (collectively “Released Parties”) from all actions, charges, claims,
demands, damages or liabilities of any kind or character whatsoever, known or unknown, which I now
have or may have had through the date I sign this Agreement and Release. For example, I am
releasing all common law contract, tort, or other claims I might have, as well as all claims I
might have under the Age Discrimination in Employment Act (ADEA), the WARN Act, Title VII of the
Civil Rights Act of 1964, Sections 1981 and 1983 of the Civil Rights Act of 1866, the Americans
with Disabilities Act (ADA), the Employee Retirement Income Security Act of 1974 (ERISA),
individual relief under the Sarbanes-Oxley Act of 2002, Virginians with Disabilities Act, Virginia
Human Rights Act, Virginia Labor and Employment Code Section 40.1 et. seq., and any other federal,
state or local laws, to the extent permissible by private agreement and consistent with applicable
law. I further waive any right to payment of attorneys’ fees, which I may have incurred. It is
understood and agreed that by entering into this Agreement and Release, SLM does not admit any
violation of law, or any of my rights, and has entered into this Agreement and Release solely in
the interest of resolving finally all claims and issues relating to my employment and separation.

     The parties expressly agree however, that nothing in this Release shall preclude my
participation as a member of a class in any suit or regulatory action brought against the Released
Parties arising out of or relating to any alleged securities violations or diminution in the value
of SLM securities.

     SLM agrees that the release under this paragraph 2 shall not cover and I reserve and do not
waive my rights, directly or indirectly to seek further indemnification and/or contribution under
the By-Laws of SLM. SLM hereby reaffirms that I am entitled to indemnification after termination of
my employment, for actions taken in my capacity as an officer of SLM Corporation or applicable SLM
Corporation subsidiaries under the bylaws of the applicable subsidiary or SLM (subject to the
provisions of the By-Laws, which limit indemnity in certain circumstances).

     SLM acknowledges that the SLM’s Board of Directors passed a resolution on March 20, 2008
pertaining to the advancement of legal expenses for certain officers including me. I acknowledge
that I previously signed an undertaking relating to certain litigation matters and this
Confidential Agreement and Release. I hereby agree to repay such legal fees and expenses advanced
on my behalf by SLM and incurred by me in relation to (i) the consolidated class action styled
Robert H. Burch v. SLM Corp., Albert L. Lord, Charles Elliott (C.E.) Andrews and Robert S. Autor
(S.D.N.Y., 08-CV-01029); (ii) the putative class actions relating to SLM’s 401(k) Plans (currently
styled as Slaymon v. SLM Corporation et al. (S.D.N.Y., 08-CV-4334), Cordero v. SLM Corporation et
al. (S.D.N.Y., 08-CV-7285), and Patel v. SLM Corporation et al. (S.D.N.Y. 08-CV-7846)); and (iii)
any related investigation or other proceeding that may subsequently be initiated by the SEC or
other governmental or regulatory agencies as well as any shareholder or other private party
litigation filed prior to the date hereof or subsequently in connection with related matters
(collectively, the “Matters”), if it should ultimately be determined that the undersigned is not
entitled to indemnification under SLM’s bylaws, or otherwise.

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The foregoing undertaking shall cover each request for advancement of expenses submitted on or
after the date hereof by the undersigned with respect to the Matters and shall supersede any
undertaking made by the undersigned prior to the date hereof.

     (3) Covenant Not To Sue: Except as set forth in the proviso in Section 2 and otherwise set
forth as follows, I agree not to sue the Released Parties with respect to any claims, demands,
liabilities or obligations released by this Agreement and Release. The Parties agree, however, that
nothing contained in this covenant not to sue or elsewhere in this Agreement and Release shall:

     (a) prevent me from challenging, under the Older Workers Benefits Protection Act (29
U.S.C. § 626), the knowing and voluntary nature of my release of any age claims in this
Agreement and Release before a court, the Equal Employment Opportunity Commission (“EEOC”),
or any other federal, state, or local agency;

     (b) prevent me from enforcing any future claims or rights that arise under the Age
Discrimination in Employment Act (“ADEA”) after I have signed this Agreement and Release.

     (c) prohibit or restrict me from: (i) making any disclosure of information required by
law; (ii) filing a charge, testifying in, providing information to, or assisting in an
investigation or proceeding brought by any governmental or regulatory body or official; or
(iii) from testifying, participating in or otherwise assisting in a proceeding relating to
an alleged violation of any federal or state employment law or any federal law relating to
fraud or any rule or regulation of the Securities and Exchange Commission or any
self-regulatory organization.

     Except with respect to the proviso in Section 2 regarding alleged securities violations and
notwithstanding anything to the contrary in this paragraph, I hereby waive and release any right to
receive any personal relief (for example, money) as a result of any investigation or proceeding of
the U.S. Department of Labor, EEOC, or any federal, state, or local government agency or court.
Further, with my waiver and release of claims in this Agreement and Release, I specifically assign
to the Released Parties my right to any recovery arising from any such investigation or proceeding.

     (4) Additional Representations and Promises: I further acknowledge and agree that:

     (a) I agree to return all SLM and Released Parties’ property in my possession or
control to them, except that I may keep my cell phone, blackberry, and computer after a
mirror image of the data on such items are made for litigation purposes.

     (b) I hereby represent and warrant that I have not reported any illegal conduct or
activities to any supervisor, manager, department head, human resources representative,
director, officer, agent or any other representative of SLM, any member of the legal or
compliance departments, or to the Code of Business Conduct hotline and have no knowledge of
any such illegal conduct or activities relating to my duties at SLM.

     (c) If I breach any provisions of this Agreement and Release, I agree that I will pay
for all reasonable costs incurred by SLM or any entities or individuals covered by this
Agreement and Release, including reasonable attorneys’ fees, in defending against my claim
and seeking to uphold my release.

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     (d) I promise to keep the terms of this Agreement and Release completely confidential
except as may be required or permitted by statute, regulation or court order.
Notwithstanding the foregoing, I may disclose such information to my immediate family and
professional representatives, so long as they are informed and agree to be bound by this
confidentiality clause. This Agreement and Release shall not be offered or received in
evidence in any action or proceeding in any court, arbitration, administrative agency or
other tribunal for any purpose whatsoever other than to carry out or enforce the provisions
of this Agreement.

     (e) I further promise not to disparage SLM, its business practices, products and
services, or any other entity or person covered by this Agreement and Release.

     (f) I understand that SLM in the future may change employee benefits or pay. I
understand that my job may be refilled.

     (g) I have not suffered any job-related wrongs or injuries, such as any type of
discrimination, for which I might still be entitled to compensation or relief in the future.
I have properly reported all hours that I have worked and I have been paid all wages,
overtime, commissions, compensation, benefits, and other amounts that SLM or any Released
Party should have paid me in the past.

     (h) I intentionally am releasing claims that I do not know I might have and that, with
hindsight, I might regret having released. I have not assigned or given away any of the
claims that I am releasing.

     (i) If SLM or I successfully assert that any provision in this Agreement and Release
is void, the rest of the Agreement and Release shall remain valid and enforceable unless the
other party to this Agreement and Release elects to cancel it.

     (j) If I initially did not think any representation I am making in this Agreement and
Release was true, or if I initially was uncomfortable making it, I resolved all my concerns
before signing this Agreement and Release. I have carefully read this Agreement and Release,
I fully understand what it means, I am entering into it knowingly and voluntarily, and all
my representations in it are true. SLM would not have signed this Agreement and Release but
for my promises and representations.

     (5) Arbitration of Disputes: Except with respect to the proviso in Section 2 concerning
securities litigation, SLM and I agree to resolve any disputes we may have with each other through
final and binding arbitration. For example, I am agreeing to arbitrate any dispute about the
validity of this Agreement and Release or any discrimination claim, which means that an Arbitrator
and not a court of law will decide issues of arbitrability and of liability with respect to any
claim I may bring; provided, however, that either party may pursue a temporary restraining order
and/or preliminary injunctive relief, with expedited discovery where necessary, in a court of
competent jurisdiction to protect common law or contractual trade secret or confidential
information rights and to enforce the post-employment restrictions in Section 6. I also agree to
resolve through final and binding arbitration any disputes I have with SLM, its affiliates, or any
current or former officers, employees or directors who elects to arbitrate those disputes under
this subsection. Arbitrations shall be conducted by JAMS (also known as Judicial Arbitration &
Mediation Services) in accordance with its employment dispute resolution rules. This agreement to
arbitrate does not apply to government agency proceedings, but
does apply to any lawsuit I might bring, including but not limited to any lawsuit

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related to a
government agency proceeding. By agreeing to this Agreement and Release, I understand that I am
waiving my right to a jury trial.

     (6) Confidentiality: Except as required or permitted by statute, regulation, subpoena, or
court order, or pursuant to written consent given by SLM’s General Counsel, I agree not to disclose
to anyone else any of the information or materials which are proprietary or trade secrets of SLM or
are otherwise confidential. In addition, in consideration of the Special Payments and Benefits
described above, I hereby acknowledge that I previously signed a February 23, 2003 Employment
Agreement (“ Employment Agreement”) and that I continue to be bound by Sections 10, 15, 25, and 26
of the Employment Agreement.

     (7) Review Period: I hereby acknowledge (a) that I initially received a copy of the original
draft of this Agreement and Release on or before September 30, 2008 and amended Agreement and
Release on October 1, 2008; (b) that I was offered a period of 45 days to review and consider it;
(c) that I understand I could use as much of the 45 day period as I wish prior to signing; and (d)
that I was strongly encouraged to consult with an attorney in writing before signing this Agreement
and Release, and understood whether or not to do so was my decision.

     (8) Revocation of Claims: I understand that I may revoke the waiver of the Age Discrimination
in Employment Act (ADEA) claims made in this Agreement and Release within seven (7) days of my
signing. My waiver and release of claims under ADEA shall not be effective or enforceable and I
will not receive 70% of the Special Payments described in Section (1) above. Revocation of claims
can be made by delivering a written notice of revocation to Joni Reich, Senior Vice President,
Administration, SLM Corporation, 12061 Bluemont Way, MDC V5102, Reston, VA 20190.

     (9) I acknowledge that I have read and understand all of the provisions of this Agreement and
Release. This Agreement and Release represents the entire agreement between the Parties concerning
the subject matter hereof and shall not be altered, amended, modified, or otherwise changed except
by a writing executed by both Parties. I understand and agree that this Agreement and Release, if
not timely revoked pursuant to Section (8), is final and binding when executed by me. I sign this
document freely, knowingly and voluntarily. I acknowledge that I have not relied upon any
representation or statement, written or oral, not set forth in this Agreement and Release. If any
provision of this Agreement and Release is held by a court of competent jurisdiction or by an
arbitrator to be contrary to law, the remainder of that provision and the remaining provisions of
this Agreement and Release will remain in full force and effect to the maximum extent permitted by
applicable law. This Agreement shall be construed under the laws of the Commonwealth of Virginia.

     (10) In addition, in consideration of the Special Payments and Benefits described above, I
further agree to cooperate with SLM, its affiliates, and its legal counsel in any legal proceedings
currently pending or brought in the future against SLM, as may be reasonably requested by SLM,
including, but not limited to: (1) participation as a witness; (2) drafting, producing, and
reviewing documents; (3) assisting with interviews; and (4) contacting SLM. This includes, but is
not limited to, providing the aforementioned assistance in Burch v. SLM Corporation et al.,
Rodriguez v. SLM Corporation et al., Chae v. SLM Corporation et al., 401(k) stock drop cases
(Slaymon v. SLM Corporation et al., Cordero v. SLM Corporation et al., and Patel v. SLM Corporation
et al.), and
Matters as defined in Section 2. In the event I am requested, with reasonable notice, to
travel as part of this litigation cooperation, SLM agrees to pay my reasonable out of pocket
expenses.

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Before you sign this Agreement and Release, please take it home, read through each section and
carefully consider it. SLM recommends that you discuss it with your personal attorney (any
personal attorney fees are not covered under the terms of this agreement). You have up to 45 days
to consider this Agreement and Release. You may not make any changes to the terms of this
Agreement and Release. Except as otherwise provided herein, by signing this Agreement and Release,
you will be waiving any claims whether known or unknown.

	 	 	 	 	 
	/s/
C. E. Andrews

	 	October 2, 2008 

	 	 
	C. E. Andrews

	 	

Date
	 	 
	 
	/s/
Joni Reich
	 	October 8, 2008	 	 
	Joni Reich

	 	 

Date
	 	 
	Senior Vice President, Administration
	 	 	 	 
	SLM Corporation
	 	 	 	 

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