Document:

Exhibit
10.1

 

SEPARATION AGREEMENT

 

This
Separation Agreement (this “Agreement”), dated June 30, 2009, is entered into
between Ronald R. Snyder (hereinafter “Snyder”) and Crocs, Inc.
(hereinafter the “Company”), hereinafter collectively referred to as the “Parties.”  As used in this Agreement, the “Company”
shall include Crocs, Inc. and any of its affiliates, subsidiaries, or
divisions.

 

RECITALS

 

A.            Snyder resigned from his position as
President and Chief Executive Officer of the Company on March 16, 2009,
but has remained since such time as a member of the Company’s board of
directors and as an employee of the Company to assist with the transition of
executive responsibilities;

 

B.            Snyder resigned as a member of the
board of directors of, and all other capacities with,  the Company effective June 30, 2009; and

 

C.            The Company agrees to accelerate the
vesting of certain unvested stock options, unvested restricted stock awards,
and unvested deferred bonus amounts held by Snyder in consideration for Snyder
entering into this Agreement, including Snyder’s agreement to release the
Company from any all claims relating to his service to the Company.

 

AGREEMENT

 

In consideration of all mutual promises contained
herein and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, it is agreed by and between Snyder and the
Company as follows:

 

1.            Accelerated
Vesting.  Effective upon the
expiration of the revocation period provided in Section 11 hereof and
subject to the condition that this Agreement is not revoked by Snyder pursuant
to such section prior to the expiration of such revocation period, the Company
agrees to accelerate the vesting of all options to purchase Company common
stock and restricted stock awards listed on Exhibit A hereto and to
accelerate the vesting of all unvested deferred bonus amounts under the Company’s
Amended and Restated 2007 Senior Executive Deferred Compensation Plan (the “2007
Plan”) set forth on Exhibit A.  
The Company agrees that all such stock options listed on Exhibit A
hereto may be exercised by Snyder until the original expiration date of such
options (i.e. 10 years from the original grant date).  All payments to Snyder as a result of the
accelerated vesting of deferred compensation under the 2007 Plan shall be made
at the time and in the form provided for in Snyder’s deferral agreement under
the 2007 Plan.

 

2.            Option
Cancellation. The vested and unvested options to purchase the Company’s
common stock listed on Exhibit B hereto shall expire pursuant to
their original terms.

 

3.             Non-Competition
and Non-Solicitation Covenants.

 

(a)          Agreement
Not to Compete.  Until December 31,
2010, Snyder will not, directly or indirectly, in any manner or capacity,
including without limitation as a proprietor, principal, agent, partner,
officer, director, investor, stockholder, employee, member of any

 

 

association, consultant or
otherwise engage or participate in any Competitive Business.  “Competitive Business” means any person,
entity or business operation (other than the Company) that designs,
manufactures, markets, distributes, or sells footwear that are the same or
similar to the footwear currently designed, manufactured, marketed, distributed
or sold by the Company in any geographic location in which the Company is then
doing business, or is then actively preparing to do business, or that engages
in any other business that is competitive with the current businesses of the
Company or with any business or market the Company is actively preparing to
enter as of the date hereof.  Ownership
(as either a proprietor, principal, investor, or stockholder in this Section 3(a))
by Snyder, as a passive investment, of less than 5%  of
the outstanding shares of capital stock of any corporation shall not constitute
a breach of this Section 3(a).  The
Parties intend and agree that this exception shall be narrowly construed.

 

(b)           Agreement Not to Hire.  Until December 31, 2010, Snyder will
not, directly or indirectly, in any manner or capacity, including without
limitation as a proprietor,  principal,
agent, partner, officer, director, investor, stockholder, employee, member of
any association, consultant, or otherwise, hire, engage, or solicit any person
who is then an employee of the Company.

 

(c)           Agreement Not to Solicit.  Until December 31, 2010, Snyder will
not, directly or indirectly, in any manner or capacity including without
limitation as a principal, agent, partner, officer, director, employee, or
consultant, solicit, request, advise, or induce any current or Potential
Customer (“Potential Customer” for purposes of this Section 3(c) means
any potential customer with whom the Company has been actively engaging in
discussions during the 12 month period immediately preceding the date hereof),
supplier, vendor or other business contact of the Company to cancel, curtail,
or otherwise change its relationship adversely to the Company, or interfere in
any manner with the relationship between the Company and any of its customers,
suppliers, vendors or other business contacts.

 

(d)           Non-Disparagement.  Snyder will not, at any time in the future,
directly or indirectly, or cause or encourage any other person to, criticize,
malign, defame or disparage in any manner or by any means (whether written or
oral, express or implied) the Company,  the business
of the Company,  or any aspect of the management,
policies, operations, practices, decisions or personnel of the Company.  The Company will ensure that the Company’s
senior executive officers and the members of its Board of Directors will not,
at any time in the future, directly or indirectly, or cause or encourage any
other person to, malign, defame or disparage in any manner or by any means
(whether written or oral, express or implied) the reputation, character or
image of Snyder.  Notwithstanding the
foregoing, nothing in this Agreement will prohibit any person from providing
truthful information required by applicable law, regulation or by legal process
(including interrogatory, subpoena, civil investigation, demand or similar
process), or by order of any court or governmental or regulatory body.

 

(e)           Acknowledgment.  Snyder hereby acknowledges that the
provisions of this Section 3 are reasonable and necessary to protect the
Company’s Confidential Information (as defined below), the goodwill of the
business of the Company and other legitimate interests of the Company and that
any violation of this Section 3 by Snyder will cause substantial and
irreparable 

 

2

 

harm to the Company to such
an extent that monetary damages alone would be an inadequate remedy therefor.

 

(f)            Blue Pencil Doctrine.  If the duration of, the scope of, or any
business activity covered by any provision of this Section 3 is determined
by a court of competent jurisdiction to be in excess of what is valid and
enforceable under applicable law, such provision shall be construed to cover
only that duration, scope or activity that is determined to be valid and
enforceable.  Snyder hereby acknowledges
that this Section 3 shall be given the construction that renders its
provisions valid and enforceable to the maximum extent, not exceeding its
express terms, possible under applicable law.

 

4.              Amounts
Owed.  The Company and Snyder
represent and warrant to each other that no amount is obligated to be paid to
or from the Company except pursuant to this Agreement.  Snyder acknowledges that Snyder has received
all wages or other compensation owed to Snyder for Snyder’s services to the
Company through the date hereof (subject only to (i) adjustments, if any,
that cannot be determined until the end of the pay period and (ii) reimbursement
of expenses incurred by Snyder during the course of his work for the Company),
that the consideration referenced in Section 1, above, is in addition to
any wages or other compensation owed to Snyder.

 

5.              General Release.

 

(a)           Snyder Release.  For and in consideration of this Agreement,
Snyder, for himself and his respective heirs, successors and assigns, hereby
releases and discharges the Company, its successors, assigns, agents,
representatives, attorneys, principals, insurers, its past and present
directors, officers, shareholders and employees, and any and all other persons,
firms or corporations who are or might be liable through the Company, from any
right Snyder has as of the date hereof to any relief of any kind arising from
any and all claims, actions, causes of action, damages, taxes, demands, costs,
loss of service, expenses, wages, or compensation of any kind (hereinafter “Claims”)
against the Company, whether such Claims are known or unknown, arising from the
beginning of time to the date of this Agreement.  The Claims released by Snyder under this
Agreement include, but are not limited to, any and all Claims arising out of or
relating to the statements, actions or omissions of the Company; all Claims for
any alleged unlawful discrimination, harassment, retaliation or reprisal, or
other alleged unlawful practices arising under any federal, state, or local
statute, ordinance or regulation or common law, including, without limitation,
Claims under Title VII of the Civil Rights Act of 1964, the Civil Rights
Act of 1991, the Age Discrimination in Employment Act, the Americans With
Disabilities Act, 42 U.S.C. § 1981, the Employee Retirement Income Security
Act, the Equal Pay Act, the Fair Credit Reporting Act, the Fair Labor Standards
Act, the Occupational Safety and Health Act, the Colorado Wage Act, the
Colorado Anti-Discrimination Act, the Family and Medical Leave Act, the Lilly
Ledbetter Fair Pay Act of 2009, or any similar state laws or statutes; all
Claims for alleged wrongful discharge, breach of contract, breach of implied
contract, failure to keep any promise, breach of a covenant of good faith and
fair dealing, breach of fiduciary duty, estoppel, defamation, infliction of
emotional distress, fraud, misrepresentation, negligence, harassment,
retaliation or reprisal, constructive discharge, invasion of privacy,
interference with contractual or business relationships, any other wrongful
employment practices, and violation of any other  principle of common law; all Claims for
compensation of any kind, including, without limitation, salary, bonuses,
commissions, wages, stock-based compensation or stock options, vacation pay, 

 

3

 

401(k) contributions;
all Claims for back pay, front pay, reinstatement, other equitable relief,
compensatory damages, damages for alleged personal injury, liquidated damages
and punitive damages; all Claims relating to taxes imposed under Section 409A
of the Internal Revenue Code of 1986, as amended, and rules and
regulations promulgated thereunder; all Claims for attorneys’ fees, costs and
interest; and all Claims relating to Snyder’s relationship with the Company
(whether that relationship was as a member of the board of directors or as an
employee) and/or Snyder’s separation from the Company. Notwithstanding the
foregoing, Snyder shall be entitled to assert his rights for indemnification
and advancement of expenses from the Company pursuant to the Company’s
certificate of incorporation and bylaws and all indemnification agreements
entered into between the Company and Snyder, including, without limitation,
that certain Indemnification Agreement dated August 10, 2005 between the Company
and Snyder, which agreement is hereby ratified and confirmed by the Company and
shall remain in full force and effect according to its terms.

 

(b)           Company Release.  For and in consideration of this Agreement,
the Company, for itself and its successors and assigns, hereby releases and
discharges Snyder, his heirs, successors and assigns and any and all other
persons, firms or corporations who are or might be liable through Snyder, from
any right the Company has as of the date hereof to any relief of any kind
arising from any and all claims, actions, causes of action, damages, taxes,
demands, costs, of any kind (hereinafter “Company Claims”) against Snyder,
whether such Company Claims are known or unknown, arising from the beginning of
time to the date of this Agreement. 
Notwithstanding the foregoing, Company Claims do not include, and the
Company does not release or waive, on behalf of itself or its successors and
assigns, (i) any right or claim that arises against Snyder from his
actions taken after the date of this Agreement, (ii) any claim against
Snyder based on intentional misconduct, fraud, breach of fiduciary duty,
misappropriation or gross neglect, whether such claim is now known or unknown
or arises from actions that occurred before or after the date of this
Agreement, , or (iii) any right to relief the Company otherwise has under
this Agreement.

 

6.              Confidential
Information. Snyder:  (i) shall
forever keep confidential all Confidential Information (as defined below) at
any time known to him concerning the Company and/or any of its customers or
suppliers, (ii) shall not at any time in the future disclose any
Confidential Information to third parties without the Company’s prior written
permission, (iii) shall exercise reasonable care to prevent dissemination
of Confidential Information to third persons, (iv) shall return to the
Company all Company property and any documents, including without limitation,
drawings, notebooks, reports, video or audio recordings, that contain
Confidential Information and are in Snyder’s possession, and (v) shall not
at any time in the future disclose or use Confidential Information in any way
that might injure or jeopardize the operations of the Company or any of its
customers or suppliers.

 

“Confidential
Information” shall include any information regarding the operations of the
Company or any of its customers or suppliers, which information is of a
special, unique, or nonpublic nature, including, but not limited to any
nonpublic information relating to the business, financial or general affairs of
the Company.  Such information shall
include, but is not limited to, nonpublic information relating to financial
statements, customer identities, potential customers, employees, suppliers,
servicing methods, equipment, programs, products, strategies and

 

4

 

information,
analyses, profit margins or other proprietary information used by the Company
in connection with the business. 
Confidential Information shall not, however, include any information
that (i) was publicly known and made generally available in the public
domain prior to the time of disclosure by the disclosing party; (ii) becomes
publicly known and made generally available after disclosure by the Company to
Snyder through no action or inaction of Snyder; (iii) is obtained by
Snyder from a third party after the date of this Agreement without a breach of
such third party’s obligations of confidentiality; (v)  is independently
developed by Snyder after the date of this Agreement without use of or
reference to Confidential Information, as shown by documents and other
competent evidence in Snyder’s possession

 

7.              Assignment
of Claims. Snyder has not assigned any claims or rights released in this
Agreement.

 

8.              Unlawful
Conduct.  By entering into this
Agreement, neither party admits that it engaged in any unlawful or improper
conduct, or that it is legally obligated to the other party in any way except
as is specifically addressed herein..

 

9.              Consideration;
Negotiation. The consideration stated herein is contractual and not merely
a recital.  The Parties hereto execute
and deliver this Agreement after being fully informed of its terms, contents
and effects.  The Parties acknowledge
that this Agreement is a negotiated agreement that both Parties have reviewed
with their attorneys, that both Parties have had a full opportunity to revise
the language of the Agreement, and that, in the event of a dispute, the
Agreement should not be construed in any way either for or against a Party
based on whether a particular Party was or was not the primary drafter of this
Agreement.

 

10.            Binding
Effect. This Agreement shall be effective, binding on the Parties, and in
full force and effect immediately following the execution of the Agreement by both
Parties, except for Snyder’s release of ADEA claims (if any), which shall be
binding and effective as of the expiration of the revocation period addressed
below.

 

11.           ADEA. Snyder acknowledges that:

 

(a)          By executing this
Agreement, Snyder waives all rights or claims, if any, that Snyder may have
against the Company under the Age Discrimination in Employment Act of 1967, 29
U.S.C. § 626, et  seq. (“ADEA”);

 

(b)          That this Agreement
has been written in a manner calculated to be understood by Snyder, and is in
fact understood by Snyder;

 

(c)          That the
aforementioned waiver reflects specifically, but is not limited to, all rights
or claims, if any, that Snyder may have against the Company arising under the
ADEA;

 

(d)          That Snyder is not
waiving rights and claims that Snyder may have under the ADEA against the
Company that may arise after the date on which this Agreement is executed;

 

5

 

(e)          That Snyder is
waiving rights and claims that Snyder may have under the ADEA, if any, only in
exchange for consideration in addition to anything of value to which Snyder is
already entitled;

 

(f)           That Snyder is
advised and has had the opportunity to consult with an attorney of Snyder’s
choice prior to executing this Agreement;

 

(g)           That Snyder has been
given a period of 21 days
from the date on which Snyder receives this Agreement, not counting the day
upon which Snyder receives the Agreement, within which to consider whether to
sign this Agreement;

 

(h)           That if Snyder
wishes to execute this Agreement prior to the expiration of the 21-day period
set forth above, Snyder may do so;

 

(i)           That Snyder has been
given a period of 7 days
following Snyder’s execution of this Agreement to revoke Snyder’s waiver of all
claims, if any, under the ADEA, and Snyder’s release of any claims under the
ADEA shall not become effective or enforceable until the revocation period has
expired without Snyder revoking Snyder’s waiver of all claims under the ADEA;
and

 

(j)           To revoke Snyder’s
waiver of all claims under the ADEA, Snyder understands that Snyder must
deliver a written, signed statement that Snyder revokes Snyder’s waiver of all
claims under the ADEA to the Company by hand or by mail within the 7 day revocation period.  The revocation must be postmarked within the
period stated above and properly addressed to the Company at the following
address:

 

Crocs, Inc.

6328 Monarch Park Place

Niwot, Colorado 80503

ATTN: General Counsel

 

12.            Remedies.  Each 
party acknowledges that it would be difficult to fully compensate the
other  party for monetary damages
resulting from any breach by the other party of the provisions hereof.  Accordingly, in the event of any actual or
threatened breach of any such provisions, the Company or Snyder, as applicable
shall, in addition to any other remedies it or he may have, be entitled to
injunctive and other equitable relief to enforce such provisions, such relief
may be granted without the necessity of proving actual monetary damages.  Each party agrees that in the event the other
party is found to have breached (or threatened to breach) any provision of this
Agreement, the breaching party will be liable to the other party for reasonable
attorneys’ fees and costs incurred in enforcing this Agreement.

 

13.            Governing Law.  All matters relating to the interpretation,
construction, application, validity and enforcement of this Agreement shall be
governed by the laws of the State of Colorado without giving effect to any
choice or conflict of law provision or rule, whether of the State of Colorado
or any other jurisdiction, that would cause the application of laws of any
jurisdiction other than the State of Colorado. 
Snyder and the Company consent to jurisdiction of the courts of the
State of Colorado and/or the federal district courts, District of Colorado, for
the purpose of 

 

6

 

resolving
all issues of law, equity, or fact, arising out of or in connection with this
Agreement.  Any action involving claims
of a breach of this Agreement shall be brought in such courts.  Each Party consents to personal jurisdiction
over such Party in the state and/or federal courts of Colorado and hereby
waives any defense of lack of personal jurisdiction.  Venue, for the purpose of all such suits in
the courts of the State of Colorado, shall be in Denver County, Colorado. In
the event of litigation between the Parties arising from or relating to this
Agreement, each Party waives any and all rights to trial by jury and consents
to the trial of the matter to the judge presiding over a court of competent
jurisdiction.

 

14.            Entire Agreement.  This Agreement contains the entire agreement
of the Parties relating to the subject matter addressed therein and supersedes
all prior agreements and understandings with respect to such subject matter,
except any written agreements related to Snyder’s common stock, restricted
stock awards and deferral agreements under the 2007 Plan, and the Parties
hereto have made no other agreements, representations or warranties relating to
the subject matter of this Agreement.

 

15.            Amendments; Waiver.  This Agreement may not be altered, amended,
or otherwise modified except by subsequent written agreement executed by both
Parties.  No term or condition of this
Agreement shall be deemed to have been waived, except by a statement in writing
signed by the Party against whom enforcement of the waiver is sought.  Any written waiver shall not be deemed a
continuing waiver unless specifically stated, shall operate only as to the
specific term or condition waived and shall not constitute a waiver of such
term or condition for the future or as to any act other than that specifically
waived.  Failure of the Company to
require strict compliance with this Agreement or to enforce or seek to enforce
this Agreement in response to a breach by Snyder does not constitute a waiver
of the Company’s right subsequently to seek enforcement as to that breach or
any other breach of this Agreement.

 

16.            Severability.  Subject to Section 3(f) hereof, to
the extent a court of competent jurisdiction deems that any portion of any
provision of this Agreement is invalid or unenforceable, the Parties agree that
such portion(s) shall be considered deleted herefrom and the remainder of
such provision and of this Agreement shall be unaffected and continue in full
force and effect.

 

17.            Counterparts. This Agreement
may be executed in counterparts and shall be fully enforceable in all regards
if executed in such manner as if it had been executed as a single
document.  Signatures obtained by
facsimile or by other electronic means shall constitute effective execution of
this Agreement.

 

[The remainder of this page is intentionally
left blank.]

 

7

 

IN WITNESS WHEREOF, the Parties have signed
this Agreement to be effective as of the date first written above.

 

 

	
  SNYDER:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Ronald R. Snyder

  	
   

  
	
  Ronald R. Snyder

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  COMPANY:

  	
   

  
	
   

  	
   

  
	
  Crocs, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ John Duerden

  	
   

  
	
  Its:

  	
  Chief Executive Officer

  	
   

  

 

8

 

Exhibit A

 

Accelerated Stock Options and Restricted Stock Awards

 

Ron Snyder- Options and Awards with option price less
than or equal to $10.50; and Unvested Deferred Compensation as of June 30,
2009

 

Stock Option and
Restricted Award Information

 

	
  Name

  	
   

  	
  ID

  	
   

  	
  Grant

  Number

  	
   

  	
  Grant

  Date

  	
   

  	
  Plan/Type

  	
   

  	
  Shares

  	
   

  	
  Price

  	
   

  	
  Exercised/

  Released

  	
   

  	
  Vested

  	
   

  	
  Cancelled

  	
   

  	
  Unvested

  as of 6/30/2009

  	
   

  	
  Outstanding/

  Unreleased

  	
   

  	
  Exercisable/

  Releasable

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Snyder, Ronald R

  	
   

  	
  S-5677

  	
   

  	
  00000170

  	
   

  	
  2/7/2006

  	
   

  	
  2005/ISO

  	
   

  	
  9,522

  	
   

  	
  $

  	
  10.5000

  	
   

  	
  4,762

  	
   

  	
  8,134

  	
   

  	
  0

  	
   

  	
  1,388

  	
   

  	
  4,760

  	
   

  	
  3,372

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Type: ISO

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  9,522

  	
   

  	
   

  	
   

  	
  4,762

  	
   

  	
  8,134

  	
   

  	
  0

  	
   

  	
  1,388

  	
  (2)

  	
  4,760

  	
   

  	
  3,372

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Snyder, Ronald R

  	
   

  	
  S-5677

  	
   

  	
  00000019

  	
   

  	
  9/1/2004

  	
   

  	
  2004/NQ

  	
   

  	
  934,480

  	
   

  	
  $

  	
  0.5100

  	
   

  	
  934,480

  	
   

  	
  934,480

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  00001653

  	
   

  	
  1/13/2009

  	
   

  	
  2007/NQ

  	
   

  	
  317,000

  	
   

  	
  $

  	
  1.2000

  	
   

  	
  0

  	
   

  	
  132,083

  	
   

  	
  0

  	
   

  	
  184,917

  	
   

  	
  317,000

  	
   

  	
  132,083

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  00000171

  	
   

  	
  2/7/2006

  	
   

  	
  2005/NQ

  	
   

  	
  924,958

  	
   

  	
  $

  	
  10.5000

  	
   

  	
  501,019

  	
   

  	
  790,068

  	
   

  	
  0

  	
   

  	
  134,890

  	
   

  	
  423,939

  	
   

  	
  289,049

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Type: NQ

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,176,438

  	
   

  	
   

  	
   

  	
  1,435,499

  	
   

  	
  1,856,631

  	
   

  	
  0

  	
   

  	
  319,807

  	
  (2)

  	
  740,939

  	
   

  	
  421,132

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Snyder, Ronald R

  	
   

  	
  S-5677

  	
   

  	
  00000029

  	
   

  	
  9/1/2004

  	
   

  	
  2005/RSU

  	
   

  	
  467,240

  	
   

  	
  $

  	
  0.0000

  	
   

  	
  467,240

  	
   

  	
  467,240

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  00001652

  	
   

  	
  1/13/2009

  	
   

  	
  2007/RSU

  	
   

  	
  197,000

  	
   

  	
  $

  	
  0.0000

  	
   

  	
  82,083

  	
  (1)

  	
  82,083

  	
   

  	
  0

  	
   

  	
  114,917

  	
   

  	
  114,917

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Type: RSU

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  664,240

  	
   

  	
   

  	
   

  	
  549,323

  	
   

  	
  549,323

  	
   

  	
  0

  	
   

  	
  114,917

  	
  (2)

  	
  114,917

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  TOTALS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,850,200

  	
   

  	
   

  	
   

  	
  1,989,584

  	
   

  	
  2,414,088

  	
   

  	
  0

  	
   

  	
  436,112

  	
   

  	
  860,616

  	
   

  	
  424,504

  	
   

  

 

	
  (1)

  	
   

  	
  Includes 16,416 shares
  scheduled to vest on June 13, 2009

  
	
  (2)

  	
   

  	
  Shares subject to
  vesting acceleration

  
	
  (2)

  	
   

  	
  May be exercised
  until the original expiration date of such options (10 years from the
  original grant date).

  

 

Unvested Deferred Bonus Information

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Unvested
  Deferred Compensation as of June 30,
  2009

  	
   

  	
   

  	
   

  	
  $

  	
  933,333

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
																																												

 

9

 

Exhibit B

 

Cancelled and Forfeited Stock Options

 

Ron Snyder- Options with option price greater than
$10.50 as of June 30, 2009

 

Stock Option Information

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Exercisable/

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Grant

  	
   

  	
  Grant

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Exercised/

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Outstanding/

  	
   

  	
  Releasable

  	
   

  
	
  Name

  	
   

  	
  ID

  	
   

  	
  Number

  	
   

  	
  Date

  	
   

  	
  Plan/Type

  	
   

  	
  Shares

  	
   

  	
  Price

  	
   

  	
  Released

  	
   

  	
  Vested

  	
   

  	
  Cancelled

  	
   

  	
  Unvested

  	
   

  	
  Unreleased

  	
   

  	
  as
  of 6/30/09

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Snyder, Ronald R

  	
   

  	
  S-5677

  	
   

  	
  00000584

  	
   

  	
  1/9/2007

  	
   

  	
  2005/ISO

  	
   

  	
  13,274

  	
   

  	
  $

  	
  22.9200

  	
   

  	
  0

  	
   

  	
  8,021

  	
   

  	
  0

  	
   

  	
  5,253

  	
   

  	
  13,274

  	
   

  	
  8,021

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  00001069

  	
   

  	
  1/4/2008

  	
   

  	
  2007/ISO

  	
   

  	
  6,580

  	
   

  	
  $

  	
  32.7500

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  6,580

  	
   

  	
  6,580

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Type: ISO

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  19,854

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  8,021

  	
   

  	
  0

  	
   

  	
  11,833

  	
   

  	
  19,854

  	
   

  	
  8,021

  	
  (1)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Snyder, Ronald R

  	
   

  	
  S-5677

  	
   

  	
  00001070

  	
   

  	
  1/4/2008

  	
   

  	
  2007/NQ

  	
   

  	
  193,420

  	
   

  	
  $

  	
  32.7500

  	
   

  	
  0

  	
   

  	
  70,833

  	
   

  	
  0

  	
   

  	
  122,587

  	
   

  	
  193,420

  	
   

  	
  70,833

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  00000585

  	
   

  	
  1/9/2007

  	
   

  	
  2005/NQ

  	
   

  	
  336,726

  	
   

  	
  $

  	
  22.9200

  	
   

  	
  0

  	
   

  	
  203,439

  	
   

  	
  0

  	
   

  	
  133,287

  	
   

  	
  336,726

  	
   

  	
  203,439

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Type: NQ

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  530,146

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  274,272

  	
   

  	
  0

  	
   

  	
  255,874

  	
   

  	
  530,146

  	
   

  	
  274,272

  	
  (1)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  TOTALS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  550,000

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  282,293

  	
   

  	
  0

  	
   

  	
  267,707

  	
   

  	
  550,000

  	
   

  	
  282,293

  	
   

  

 

	
  (1)

  	
   

  	
  Options will expire
  pursuant to original terms if unexercised

  

 

10Exhibit 10.1

 

DESCRIPTION
OF THE MATERIAL TERMS OF

THE
AMENDED AND RESTATED VERTRO 2009 BONUS PROGRAM

 

The Amended and Restated
Vertro 2009 Bonus Program (the “Bonus Program”) provides for the payment of
cash bonuses to employees of Vertro, Inc. (the “Company”) and its
subsidiaries, including the Company’s currently employed named executive
officers (the “NEOs,” as named in the Company’s 2009 proxy statement and
anticipated to be named in the 2010 proxy statement). On March 12, 2009,
the Company sold its Media Division and substantially decreased the Company’s
size and operations.  In view of this
change, the Program was amended.  The
amended program, as detailed below, is based on operations for the last two
quarters of 2009.

 

The Bonus Program for
NEOs is predicated on meeting or exceeding a Financial Performance Goal (the “FPG”)
based on an Adjusted EBITDA target. 
Adjusted EBITDA is defined as EBITDA (earnings before interest, income
taxes, depreciation, and amortization) plus non-cash compensation expense plus
or minus certain identified revenues or expenses that are not expected to recur
or be representative of future ongoing operation of the business.

 

Each NEO has been
assigned an amended target bonus range that consists of a Threshold Target
Bonus (the “Threshold Target Bonus”) and a Maximum Target Bonus (the “Maximum
Target Bonus”) (the amount represented by the Threshold Target Bonus and the
Maximum Target Bonus is hereinafter referred to as the “Bonus”).  Payment of any Bonus is conditioned upon meeting
or exceeding the FPG.  In addition, NEOs
may receive a Bonus in excess of the Threshold Target Bonus up to the amount of
their Maximum Target Bonus based on over-achievement of the FPG.

 

The following table sets
forth the target bonus amounts for which an NEO is eligible under the Bonus
Program:

 

	
  Executive

  Officer

  	
   

  	
  Position

  	
   

  	
  Threshold Target

  Bonus

  	
   

  	
  Maximum Target

  Bonus

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Peter
  Corrao

  	
   

  	
  President and CEO

  	
   

  	
  $

  	
  32,000

  	
   

  	
  $

  	
  160,000

  	
   

  
	
  John
  Pisaris

  	
   

  	
  General Counsel

  	
   

  	
  $

  	
  16,750

  	
   

  	
  $

  	
  83,750

  	
   

  
	
  Robert
  Roe

  	
   

  	
  SVP/GM Direct

  	
   

  	
  $

  	
  14,396

  	
   

  	
  $

  	
  71,980

  	
   

  
	
  Mike
  Cutler

  	
   

  	
  CFO

  	
   

  	
  $

  	
  11,813

  	
   

  	
  $

  	
  59,063

  	
   

  

 

Bonus payouts, if any, to
NEOs will be made on an annual basis. In the event of a change of control, the
adjusted EBITDA objectives will be deemed to be met for the NEOs and Messrs. Corrao,
Pisaris and Cutler would receive a bonus equal to 80%, 50%, and 50% of their
respective annual base salaries will paid upon consummation of the change of
control.

 

Except for certain
executives, or as provided in a contract to the contrary, a participant’s right
to any bonus under the Bonus Program will cease upon termination of employment
for any reason, whether voluntary or involuntary. For NEOs with employment
contracts containing provisions for termination for “good reason” or
termination by the Company “without cause,” upon separation of employment for
either of those reasons, the executive will receive an amount equal to their
target bonus, pro-rated for the amount of time employed by the Company in
fiscal 2009, increased or decreased pursuant to actual performance versus
targeted performance in the Bonus Program measured as of the end of the
calendar month preceding the termination date. Any such pro-rata bonus will be
paid as soon as administratively possible following termination, and in any event,
no later than March 15, 2010.

 

The Company reserves the
right to amend or cancel the Bonus Program for any reason in its sole
discretion.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]