Document:

EXHIBIT 10.1

 

AGREEMENT AND GENERAL RELEASE

 

This
Agreement and General Release (this “Agreement”) is being delivered this
27th day of June 2005, by Aspen Technology, Inc. (“Aspen”
or “the Company”) to Stephen J. Doyle (“Doyle”).

 

1.             Doyle’s employment with Aspen will cease
effective as of the close of business on June 30, 2005 (the
“Termination Date”).  Doyle hereby
confirms that effective as of the close of business on the Termination Date, he
will no longer hold any positions as an officer, director or employee of Aspen,
or any of its respective parents, subsidiaries and affiliates at any level, and
he agrees to promptly execute such documents and take such actions as may be
necessary or requested by Aspen to evidence the foregoing.

 

2.             In consideration of Doyle’s execution and
failure to revoke this Agreement, Aspen shall pay to Doyle the following
amounts and provide to Doyle, or to his heirs, the following benefits
(together, the “Payments and Benefits”):

 

(a)           A lump sum
severance payment of $675,000 (which amount represents two year’s base salary
plus an amount equal to two times Doyle’s target bonus for 2005), which amount
will be payable within 5 business days following the Effective Date (as defined
in paragraph 10 below);

 

(b)           A lump sum payment
of $28,000 (which amount represents an estimate of the cost to Doyle of
obtaining health, life and disability insurance coverage for two years that is
comparable to that provided to him by Aspen prior to the Termination Date),
which amount will also be payable within 5 business days following the
Effective Date;

 

(c)           A lump sum payment
of $125,000 (which amount represents a bonus payment in recognition of Doyle’s
work on behalf of Aspen during the FTC/Audit review) which amount will also be
payable within 5 business days following the Effective Date;

 

(d)           Accelerated
vesting, effective immediately prior to the Termination Date (but subject to
revocation if the Effective Date does not occur), of each of the options to
acquire common stock of Aspen that are currently outstanding and which have an
exercise price that is under $15.00 per share, excluding however 8,144 vested
and qualified incentive stock options with a strike price of $2.98 and 55,928
vested and qualified incentive stock options with a strike price of $2.75, (the
“Specified Options”) and amendment of the terms of each Specified Option to
provide that each such Specified Option shall remain exercisable during the
period following the Effective Date until the earlier of (i) the two year
anniversary of the Termination Date and (ii) the 

 

 

expiration of such Specified Option’s
maximum term, notwithstanding the termination of Doyle’s employment;

 

(e)           A lump sum payment
of $7000 (which amount is intended to cover the cost to Doyle of obtaining
legal and accounting advice in connection with the termination of his
employment and of setting up a computer system at his home);

 

(f)            Payment by Aspen
for outplacement services to be provided to Doyle by New Directions Executive
Outplacement following the Effective Date, up to a maximum of $45,000, which
payments will be made directly to the outplacement provider.

 

(g)           Following the
termination date, Doyle shall continue to be covered by Aspen’s director and
officer liability insurance policies with respect to his service as an officer
of Aspen subject to and in accordance with the terms of such policies.

 

All amounts payable pursuant to this
paragraph 2 shall be paid net of any amounts required to be withheld by
law.  Each option to acquire common stock
of Aspen which is not a Specified Option shall be treated in accordance with
its existing terms in connection with the termination of Doyle’s
employment.  Doyle acknowledges that the
treatment of the Specified Options described in paragraph 2(d) may cause
certain of such Specified Options to cease to constitute incentive stock
options under Section 422 of the Internal Revenue Code of 1986.

 

3.             The provisions of paragraph 4 of this
Agreement shall not be construed to affect (i) Doyle’s eligibility to
receive continuation coverage in Aspen’s medical plan(s) following the
Termination Date pursuant to the provisions of the Consolidated Budget Omnibus
Reconciliation Act of 1985, provided that he timely elects such coverage, (ii) Doyle’s
rights under the AspenTech 401(k) Savings Plan to the extent that he is vested
therein as of the Termination Date,(iii) any of Doyle’s rights to defense
and indemnification, (iv) rights to workers compensation, disability
insurance benefits and life insurance benefits, (v) rights to convert insurance
policies, and (vi) claims to enforce this Agreement.

 

4.             Except for the obligations specifically
set forth in, or incorporated by reference into, this Agreement, Doyle
voluntarily, knowingly and willingly releases and forever discharges (the “Employee
Release”) the Company, its parents, subsidiaries and affiliates at any
level, together with each of their present and former directors, officers,
employees, trustees, shareholders, agents, attorneys, predecessors, successors
and assigns (collectively, the “Releasees”), from and against any and
all claims, charges, damages, lawsuits, actions, causes of action and
liabilities whatsoever, whether known or unknown, absolute or contingent,
accrued or unaccrued, which against them Doyle or his executors, administrators,
successors or 

 

 

assigns ever had, now have, or may hereafter claim to
have against any of the Releasees by reason of any matter, cause or thing
whatsoever arising on or before the date Doyle signs this Agreement, whether or
not previously asserted before any state or federal court or before any state
or federal agency or governmental entity, except as may not otherwise be
released by law.  This Employee Release
also includes, but is not limited to, any rights or claims relating in any way
to Doyle’s employment relationship with Aspen or any of the Releasees, or the
termination thereof, or arising under any statute or regulation, including
Title VII of the Civil Rights Act of 1964, the Employee Retirement Income
Security Act of 1974, the Americans with Disabilities Act of 1990, the Equal
Pay Act of 1963, the Age Discrimination in Employment Act of 1967, the Family
and Medical Leave Act of 1993, each as amended, and any other federal, state or
local statutes, including but not limited to, Chapter 151B of the Massachusetts
General Laws, or the common law, or under any policy, agreement, understanding
or promise, written or oral, formal or informal, between Doyle and the Company
or any of the Releasees.  Doyle
represents that he has not commenced or joined in any claim, charge, action or
proceeding whatsoever against the Company or any of the other Releasees,
arising out of or relating to any of the matters set forth in this Employee
Release.  Doyle further agrees that he
will not be entitled to any personal recovery in, and shall not commence or
join, any action or proceeding whatsoever against the Company or any of the
Releasees for any of the matters set forth in this Employee Release.  Doyle acknowledges that the Payments and
Benefits are in lieu of and in full satisfaction of any and all amounts that
might otherwise be payable to him or for his benefit under any contract,
agreement, plan, policy, program, practice or otherwise, past or present, of
the Company, including but not limited to, the Prior Agreements (as defined
below).  Doyle further acknowledges that,
other than Aspen’s obligations under this Agreement, following the Effective
Date, the Company shall have no further obligations to him, and that he shall
have no right to any other payments or benefits from the Company with respect
to his employment with Aspen or the termination thereof.

 

5.             Doyle represents that he has returned or
will immediately return to Aspen all Company property, including without
limitation, mailing lists, reports, files, memoranda, records and software,
credit cards, door and file keys, computer access codes or disks and
instructional manuals, and other physical or personal property which Doyle
received or prepared or helped prepare in connection with his employment with
Aspen, and he will not retain any copies, duplicates, reproductions or excerpts
thereof in any form whatsoever.

 

6.             Doyle represents that he has not, and
agrees that he will not, disclose confidential information of Aspen (which
includes any information about the Company which is not generally available),
including, but not limited to, any confidential information provided to Doyle
while serving as General Counsel of Aspen, as well as any advice given to the
Company or its employees by Doyle while serving as General Counsel or in any
other position as attorney to the Company, except in each case for such
disclosures as may be required by law or legal process (in which case Doyle
shall 

 

 

notify Aspen of such legal or judicial proceeding
immediately following his receipt of notice of such a requirement or
proceeding, and permit Aspen to seek to protect its interests and
information).  Doyle further acknowledges
and agrees that he will continue to be bound by the confidentiality obligations
assumed by him as an employee of and attorney to Aspen, including (except as
specified in Section 16) as provided in the Confidentiality and
Non-Competition Agreement with Aspen, dated as of July 29, 1996 (the “Confidentiality
Agreement”).

 

7.             From and after the Termination Date, and
with regard to matters as to which he obtained knowledge during his employment
with Aspen, Doyle agrees to reasonably cooperate, at Aspen’s reasonable
request, with the Company and any of its officers, directors, attorneys or
employees (a) in connection with the defense or prosecution of any and all
charges, complaints, claims, liabilities, obligations, promises, agreements,
demands and causes of action of any nature whatsoever, which are asserted by
any person or entity (including the Company) concerning or related to any
matter that arises out of or concerns events or occurrences during Doyle’s
employment with Aspen and (b) concerning requests for information about
the business of the Company or Doyle’s involvement and participation therein.  Doyle shall provide such cooperation
consistent with his other obligations and on reasonable notice; and such
cooperation is not intended to be unreasonably burdensome nor to interfere with
Doyle’s ability to transition into other personal or professional endeavors.
Such cooperation shall not include the provision by Doyle of consulting
services, legal advice or legal representation and shall not entitle Doyle to
additional compensation; however Doyle shall be entitled to reimbursement, upon
receipt by Aspen of suitable documentation, for reasonable and necessary travel
and other expenses which he may incur at the specific request of Aspen and as
approved in advance by Aspen in accordance with its policies and procedures
established from time to time.  Without
limiting the generality of the foregoing, Doyle shall, during the one year
period commencing on the Termination Date, provide Aspen with consulting
services, without charge, for a maximum of five days in each calendar quarter
during such period.

 

8.             All inquiries concerning Doyle’s
employment and termination of employment from the Company and all requests for
references concerning Doyle (collectively “Inquiries”) shall be referred to the
Company’s Senior Vice President of Human Resources.  Aspen shall announce the termination of Doyle’s
employment at the time it announces the appointment of a new General Counsel
and pursuant to a press release which will contain the language with respect to
the termination of Doyle’s employment substantially similar to that which is
set forth in Schedule A hereto.

 

9.             Doyle acknowledges that he has carefully
read this Agreement and fully understands all of its terms, that he is an
attorney and that he has been advised by Aspen to have this Agreement reviewed
by legal counsel of his choice.  Doyle is
signing this Agreement voluntarily and with full knowledge of its significance
and acknowledges that he has not relied upon any representation or statement,
written or oral, not set forth in this Agreement.  Doyle further understands that he has
twenty-one (21) days from the original date of presentment of this Agreement
(set forth below) to consider 

 

 

whether or not to execute this Agreement, although he
may elect to sign it sooner, but not prior to July 1, 2005.

 

10.           Doyle shall have a period of seven (7) days
after signing this Agreement to revoke his consent thereto, which revocation
must be in writing and delivered to the undersigned, and that absent such
timely revocation this Agreement shall become irrevocable and effective
immediately upon the expiration of such seven (7) day time period (the “Effective
Date”).  Doyle understands that if he
revokes his consent within such seven (7) day period, this Agreement shall
be null and void, ab initio, and Aspen will not be
required to pay or provide the Payments and Benefits.

 

11.           The parties agree that nothing contained
in this Agreement shall constitute or be treated as an admission of liability
or wrongdoing by Doyle, the Company or any of the Releasees.

 

12.           Doyle agrees to keep confidential the
negotiations leading to this Agreement, as well as the terms hereof, except as
may be required to obtain legal or tax advice or to enforce any right or
obligation hereunder, in which case Doyle shall require his consultants and advisors
to maintain the confidentiality of such negotiations and terms.  Doyle acknowledges that he has no interest in
employment with the Company and further acknowledges that the Company has not
made any express or implied representation to him that he will be entitled to
be reemployed by the Company in the future.

 

13.           This Agreement shall be construed in
accordance with the laws of The Commonwealth of Massachusetts, without regard
to its choice of law provisions.  The
provisions of this Agreement shall be deemed severable and the invalidity,
illegality or unenforceability of any provision shall not affect or impair the
validity, legality or enforceability of the other provisions hereof.  Moreover, if any one or more of the
provisions of this Agreement shall be held to be excessively broad as to
duration, activity or subject, such provision shall be construed by limiting
and reducing them so as to be enforceable to the maximum extent allowed by
applicable law.

 

14.           This Agreement may be executed in one or
more counterparts, each of which shall be deemed to be an original and all of
which shall constitute one and the same instrument.

 

15.           For purposes of this Agreement, notices
and all other communications provided for herein shall be in writing and shall
be deemed to have been duly given when hand delivered, 24 hours after sent by
overnight courier, or upon receipt of mail by first-class, registered or
certified mail, return receipt requested, postage prepaid, addressed as
follows:

 

If
to Aspen:

Aspen
Technology, Inc.

 

 

Ten Canal Park

Cambridge, MA 02141-2201

Fax:
(617) 949-1030

Attention:  Senior Vice President, Human Resources

 

If
to Employee:

Stephen
J. Doyle

16
Ledge Hill Road

Southborough,
MA 01772

 

or to
such other address as either party may have furnished to the other in writing
in accordance herewith, except that notices of change of address shall be
effective only upon receipt.

 

16.           Except as otherwise stated herein, this
Agreement sets forth the entire agreement of the parties hereto in respect of
the subject matter contained herein and supersedes all prior agreements,
promises, covenants, arrangements, communications, representations or
warranties, whether oral or written, between the parties hereto with respect to
such subject matter, including but not limited to, the Prior Agreements.  No provision of this Agreement may be
modified or discharged unless such modification or discharge is authorized and
agreed to in writing, signed by Doyle and Aspen.   For purposes of this Agreement, “Prior
Agreements” shall include the Employment Agreement, dated as of November 26,
2002 between Doyle and Aspen, the Change in Control Agreement, dated as of August 12,
1997 between Doyle and Aspen and the offer letter from Aspen to Doyle, dated as
of July 24, 1996 (in each case as amended from time to time) but shall not
include the Confidentiality Agreement, which shall continue in effect as
modified by Schedule B to this Agreement.

 

IN
WITNESS WHEREOF, Doyle and Aspen have hereunder caused this Agreement to be
duly executed as an agreement under seal and delivered in their names and on
their behalf.

 

Date of original
presentment:  June 27, 2005

 

 

	
  Stephen
  J. Doyle

  	
   

  	
  Aspen
  Technology, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Agreed:

  	
  /s/ Stephen J. Doyle

  	
   

  	
  By:

  	
       /s/
  Mark Fusco

  	
   

  
	
   

  	
  Title:

  	
     President &
  CEO

  	
   

  
	
  Date of signing:

  	
  July 1, 2005EXHIBIT 10.1

 

AMENDMENT
TO EMPLOYMENT AGREEMENT

 

EFFECTIVE DATE:  May 25, 2005

 

PARTIES AND ADDRESSES:

 

	
  August Technology Corporation

  	
   

  	
  (“Company”)

  
	
  4900 West 78th Street

  	
   

  	
   

  
	
  Bloomington, MN 55435

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Scott Gabbard

  	
   

  	
  (“Employee”)

  
	
  19820 Doonbey Circle

  	
   

  	
   

  
	
  Prior Lake, MN 55372

  	
   

  	
   

  

 

WHEREAS, Company and Employee are parties to
an existing Employment Agreement (attached) signed by the parties on July 11,
2002 (hereinafter referred to as “Employment Agreement”); and

 

WHEREAS, Company and Employee desire to amend
certain portions of the Employment Agreement.

 

NOW, THEREFORE, Company and Employee agree
that, effective as of May 25, 2005, the following Amendment shall be made a
part of the Employment Agreement:

 

1.                                      The final paragraph of Paragraph 8 of the
Employment Agreement shall be deleted          in its       entirety and replaced with the following:

 

Upon
Employee’s resignation or termination under this Paragraph 8 for any reason,
August Technology shall pay Employee his/her Base Salary through the Employee’s
last date of employment, and any accrued and unused vacation or other paid time
off through the Employee’s last date of employment.  Employee’s entitlement to any vested pension,
profit sharing or other benefits shall be governed by applicable plan
documents.  In the event Employee’s
employment is terminated either by Employee or August Technology under
Paragraph 8 (b), August Technology may elect, in its sole discretion, to pay
Employee his/her salary for the thirty (30) day notice period in lieu of
Employee’s continued performance of duties during the notice period.  In the event Employee is terminated by August
Technology in accordance with Paragraph 8 (b), August Technology shall, in
addition to the above, pay Employee a severance at his/her then current Base
Salary rate, less withholdings, for the time period as set forth in Exhibit A
as “Severance Period,” to be paid as follows:

 

•                  Six months of
Base Salary to be paid in a lump sum on the first regularly scheduled payday
following the six-month anniversary of Employee’s termination date.

 

1

 

•                  Six months of
Base Salary according to the normal payroll schedule beginning with the first
regularly scheduled payday following the six-month anniversary of Employee’s
termination date and ending six months later on or immediately after the
12-month anniversary of Employee’s termination date, but in no event shall
payment be for less than the full amount totaling six full months of Base
Salary.

 

Additionally, in the event
Employee is terminated by August Technology in accordance with Paragraph 8 (b),
August Technology shall, if the Employee elects to continue group health or
other group benefits as allowed by COBRA, make the COBRA payments for a
twelve-month period beginning with the monthly COBRA premium due on the first
of the month following the six-month anniversary of Employee’s termination
date.  Employee shall not be entitled to
any further or other payments or benefits of any kind upon the Employee’s
termination or resignation under this Paragraph 8, except as provided under the
Separation Agreement and Release.  In the
event Employee is entitled to Change in Control benefits as set forth in
Paragraph 9, Employee shall not be entitled to any severance or notice rights
under this Paragraph 8.

 

In
the event Employee dies before all payments under this Agreement have been
made, the remaining payments shall be made to Employee’s spouse, Jo E. Gabbard,
or if she is no longer living, then to Employee’s estate.

 

This Amendment shall be attached to and be a
part of the Employment Agreement between August Technology Corporation and
Scott Gabbard signed by the parties on July 11, 2002.

 

Except as set forth herein, the Employment
Agreement shall remain in full force without modification.

 

In consideration of the mutual covenants
contained herein, the parties have executed this Amendment effective as of the
date and year above written.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  AUGUST TECHNOLOGY
  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  /s/ Susan
  Peattie

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Susan Peattie

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Director, Human Resources

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  EMPLOYEE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  /s/ Scott
  Gabbard

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Scott Gabbard

  	
   

  

 

2

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