Document:

Exhibit 10.2

 

SEPARATION AGREEMENT AND GENERAL RELEASE

This Separation Agreement and General Release ("Agreement") is made and entered into on October 31, 2016, by and between myself, Robert E. Dries, and Healthways, Inc., its subsidiaries, and related entities (the "Company"), also sometimes collectively referred to as the "Parties."

WHEREAS, the Parties mutually agree to terminate my employment with the Company pursuant to Section VI.A. of the Employment Agreement, dated August 8, 2016, between the Parties ("Employment Agreement"); and

WHEREAS, I desire to settle and compromise all claims that I may have, or could raise, against the Company;

NOW, THEREFORE, in consideration of and reliance upon the mutual promises, covenants and payments contained herein, the Parties agree as follows:

1. General Release. In consideration for the payments and additional benefits to be paid by the Company as set forth in Section 5, I release the Company and its owners, directors, officers, employees, and agents (collectively, the "Released Parties") from all claims or causes of action of whatever nature that I now may have and that I either know about or hereafter may learn about, arising from or during my employment or resulting from the termination of my employment and existing as of the date of this Agreement.  I acknowledge and agree that I would not be entitled to the sums and benefits provided herein if not for this Agreement.

I acknowledge that this General Release includes, but is not limited to, all claims arising under federal, state, or local laws prohibiting employment discrimination and all claims growing out of any legal restrictions on the Company's right to terminate its employees, including any breach of contract, whistleblower, tort or retaliation claims. This General Release also specifically encompasses all claims of employment discrimination based on race, color, religion, creed, sex, genetic information, and national origin, as provided under Title VII of the Civil Rights Act of 1964, as amended, and 42 U.S.C. § 1981; all claims under the Employee Retirement Income Security Act (ERISA); all claims of employment discrimination under the Americans With Disabilities Act (ADA), as amended by the ADA Amendments Act of 2008 (ADAAA); all claims under the Genetic Information Nondiscrimination Act (GINA); all claims under the Fair Credit Reporting Act; all claims under the Family and Medical Leave Act (FMLA); all claims under the Tennessee Human Rights Act, T.C.A. §4-21-101, et seq. and the Tennessee Disability Act, T.C.A. §8-50-103, et seq.; and all claims under any other applicable local, state or federal laws concerning my employment, the termination of my employment and/or payment of compensation, including claims to attorneys' fees or other indemnities. I understand and agree that I am not releasing any claim that relates to: (i) my rights under this Agreement, including my right to enforce this Agreement; (ii) my right, if any, to claim government-provided unemployment benefits; (iii) any rights or claims which may arise or accrue after I sign this Agreement; and (iv) any claims which, under applicable law, cannot be released. I understand that I am releasing claims that I may not know about as of the date I sign this Agreement. That is my knowing and voluntary intent.

2. I agree that I will not serve as a representative of a class or collective action lawsuit filed against the Released Parties.  I further acknowledge that I have been paid all wages to which I am entitled from the Company for the work I have performed. I further acknowledge that I am not entitled to no other compensation, payments or benefits from the Company except as set forth in this Agreement. I understand that the General Release does not prohibit me from (a) filing a charge of discrimination with the Equal Employment Opportunity Commission (EEOC) but I hereby waive my right to recover damages from the Released Parties, including monetary remuneration or (b) reporting securities violations to the Securities and Exchange Commission (the "SEC") or recovering monetary remuneration in connection with reporting any such violations.  I acknowledge that I have no pending claims against the Released Parties and that I am not currently a debtor in bankruptcy or otherwise restricted in my ability to release a claim against the Released Parties.

3. I intend this Agreement to be binding upon myself, my estate, heirs and assignees. I understand and agree that if I breach this Agreement or if I file any lawsuit against the Released Parties challenging the validity of this Agreement or seeking any equitable relief or compensation in addition to that paid to me, the Released Parties may also bring a lawsuit or raise a claim against me asking a court to offset any award of damages to me by the amount I receive in this Agreement.

4. I understand that my employment with the Company will end as of October 31, 2016 ("Separation Date").  The earliest I may execute this Agreement to memorialize the acceptance of its terms is 5:00 p.m. on the Separation Date. Any other benefit entitlements will be made according to the terms of the applicable plan/policy.

5. Provided I execute this Agreement, the Company hereby agrees and covenants to provide me with the following severance benefits, to which I would not otherwise be entitled. I acknowledge that the Company shall withhold from the severance benefits any amounts required to be withheld in federal, state or local taxes and I shall be responsible for all taxes on amounts received under this Agreement.

(a) My regular base salary, less all appropriate taxes and withholding, for a period of twelve (12) weeks following the Separation Date (the "Severance Period"). This amount shall be referred to as the Severance Payment and shall be paid in accordance with the Company's regular payroll procedures and schedule.

(b) My group health coverage will terminate as of the Separation Date, at which point I will have the option to continue group coverage through the Consolidated Omnibus Budget Reconciliation Act ("COBRA") upon timely payment of the required premiums.  I understand and agree that provided I timely elect and I am otherwise eligible for COBRA coverage, the Company will subsidize my COBRA monthly premiums for the coverage which I elect during the Severance Period such that my portion of the premium will approximate my regular employee contribution premium.  The costs of the Company's portion of any premiums during the Severance Period shall be included in my gross income to the extent the provision of such benefits is deemed to be discriminatory under section 105(h) of the Internal Revenue Code of 1986, as amended (the "Code"). If I obtain new employment during the Severance Period or otherwise become ineligible for COBRA coverage, then the Company's obligation to pay the COBRA premiums will cease.  If I continue my COBRA coverage beyond the Severance Period, then I understand that I will be responsible for the full COBRA premium payments.

6. My life insurance, Flexible Spending Account (dependent care), short-term disability, and long-term disability coverage and/or contributions (if applicable) will end on my Separation Date.  My 401(k) contributions will be withheld on regular pay earned through my Separation Date.

7. I understand and agree that I am responsible for all amounts due and payable on my Company credit card, and am obligated to pay any balances existing on and/or after my separation from employment, for which I have already received reimbursement from the Company. I agree that said amounts owed may be deducted from the Severance Payment.

8. During the Severance Period, the provisions of Section IX.B. of the Employment Agreement will continue to apply to me as if reproduced in this Agreement in its entirety, excluding the applicable time periods, which will be read as twelve (12) weeks. Section IX.B. of the Employment Agreement, as modified by this Section 8, is incorporated in this Agreement.  For the avoidance of doubt, Section IX.D does not apply to this Agreement.

9. It is understood and agreed that this Agreement is the compromise of any existing, potential, or disputed claims and the consideration paid to me is not to be construed as an admission of liability or any wrongdoing by the Released Parties, or anyone acting through or on behalf of the Released Parties. I agree not to make or publish any disparaging, defamatory, derogatory or other negative statements or comments, oral or written, about the Company or its employees, products, services, operations, business, financial condition, plans or prospects to any person or entity.  Likewise, the Company, its directors, and officers agree not to make or publish any disparaging, defamatory, derogatory or other negative statement or comments, oral or written, about me.

10. I understand that I am prohibited from disclosing any Company confidential information including but not limited to business or strategic plans, financial data, marketing programs, customer information, contracts, products and trade secrets ("Information") to any person or entity at any time without the prior written consent of the Company.  Notwithstanding the foregoing, I understand that nothing in this Agreement limits my ability to communicate with the SEC or otherwise participate in any investigation or proceeding conducted by the SEC, including providing documents or other information to the SEC.   I agree to return to the Company all Company-owned equipment including but not limited to computers, computer hardware, electronic equipment, computer information, code, data, content, software, software applications, passwords and copies of any such items or Information that I have received, developed or had access to during my employment with the Company within 24 hours of my last day worked.  I represent that I have not retained any such items or Information and I have not transferred any items or Information to any other person or entity.

11. This Agreement contains the entire agreement between the Company and myself as to the termination of my employment and save as expressly incorporated herein, no provisions of the Employment Agreement shall be in force or effect against the Parties. No change, modification, amendment or termination of any provisions of this Agreement shall be effective unless set forth in a written instrument signed by both the Company and myself.  A copy of this Agreement will be deemed as effective as the original.

12. This Agreement will be governed by the laws of the state of Tennessee without regard to conflicts of laws principles. Any lawsuit arising under or relating to this Agreement shall be brought in the United States District Court, Middle District of Tennessee, Nashville Division.

13. The provisions of this Agreement are severable. If a court of competent jurisdiction should rule that any provision of this Agreement is invalid, illegal, or unenforceable in any respect, the court may modify the provision to the least extent necessary to render it enforceable and such ruling shall not affect the validity and enforceability of any other provision in this Agreement

14. I have been advised to consult with an attorney before executing this Agreement.  I have thoroughly reviewed and understand the effect of this Agreement and its General Release before I have signed this.  I understand that I may have up to seven (7) calendar days from the Separation Date to consider its terms and provisions prior to signing.  I will send the signed agreement to Mary Flipse at Healthways, Inc., 701 Cool Springs Boulevard, Franklin, TN 37067.  I acknowledge that I voluntarily sign this Agreement.  Finally, I acknowledge that, in considering whether to sign this Agreement, I have not relied upon any representation or statement by anyone, either written or oral, not set forth in this document and that I have not been threatened or coerced into signing this Agreement by any official or employee of the Company and that I have read, understand and fully and voluntarily accept the terms of this Agreement.

/s/ Robert E. Dries                           October 31, 2016

Robert E. Dries    Date

HEALTHWAYS, INC.

By:  /s/ Mary S. Flipse                         October 31, 2016

Mary S. Flipse                                                                                       DateExhibit 10.3

 

SEPARATION AND GENERAL RELEASE AGREEMENT

THIS SEPARATION AND GENERAL RELEASE AGREEMENT ("Agreement") is entered into on the Effective Date described herein by and between Alfred Lumsdaine (hereinafter generally referred to as "Mr. Lumsdaine") and Healthways, Inc., and its subsidiaries, affiliates and related entities, with a principal office of 701 Cool Springs Blvd., Franklin, Tennessee 37067 ("Healthways" or "Company").

WHEREAS, Healthways and Sharecare, Inc. ("Sharecare") have entered into a purchase agreement selling a substantial number of Healthways assets to Sharecare ("Transaction");

WHEREAS Mr. Lumsdaine desires to terminate his employment and the employment agreement between Mr. Lumsdaine and the Company effective as of November 30, 2012 ("Employment Agreement") so that he may accept employment with Sharecare;

WHEREAS both the Company and Mr. Lumsdaine believe it is in their mutual best interests for the parties to terminate Mr. Lumsdaine's employment and the Employment Agreement.

NOW THEREFORE, the parties agree as follows:

(1) Termination of Employment Agreement. The Employment Agreement shall terminate by mutual agreement as of the closing date of the Transaction ("Closing").

	
(2)

	
Consideration. The parties covenant and promise to do the following:

 

(a) Mr. Lumsdaine shall remain employed by the Company until September 30, 2016. The Company will continue to provide the same pay and benefits as set forth in Paragraphs (A) and (D) of Section V of the Employment Agreement through September 30, 2016. As to the Bonus Plan described in Paragraph (B) of Section V of the Employment Agreement, Mr. Lumsdaine will be eligible to receive any bonus payments for performance towards individual objectives during the period of January 1, 2016 through June 30, 2016, and prorated bonus payments on Company's performance through September 30, 2016. Bonus payout, if any, is subject to the eligibility requirements of the Bonus Plan and approval by the Compensation Committee of the Board of Directors. Neither the Company nor Mr. Lumsdaine will terminate Mr. Lumsdaine's employment prior to September 30, 2016 unless Mr. Lumsdaine engages in conduct constituting "Cause" as defined in the Employment Agreement. No provisions of the Employment Agreement shall survive following the termination of the Employment Agreement except as specifically described in this Section (2)(a).

	
(b)

	
As of Closing, the Company will accelerate the vesting of outstanding and unvested equity that has been awarded to Mr. Lumsdaine by the Company and that is included on Schedule 1 incorporated herein by reference. All amounts contributed by the Company  to the Capital Accumulation Plan ("CAP") for the benefit of Mr. Lumsdaine shall vest effective July 31, 2016, and thereafter be paid out in accordance with the terms of the CAP. Mr. Lumsdaine will remain bound by the agreements and the plan(s) governing the various equity awards on Schedule 1, and nothing herein shall be construed as a waiver or amendment of the equity award agreements or plan(s).

	
(3)

	
General Release. In exchange and in consideration for the promises, obligations, and agreements as set forth in this Agreement, herein, Mr. Lumsdaine does hereby irrevocably and unconditionally release, acquit and discharge Healthways, any related or affiliated companies and all other subsidiaries, assigns, predecessors or transferees, all present and former directors, officers, insurers, employees, servants and agents of any of them (together, individually and collectively, "Released Parties"), from any and all manner of actions, charges, complaints, suits, proceedings, claims, liabilities, obligations, agreements, controversies, demands, costs, losses, debts and expenses whatsoever of any kind or nature, at law or in equity, whether known or unknown, fixed or contingent, choate or inchoate, that Mr. Lumsdaine has as of the Effective Date, or ever has had, arising out of or in any way connected with the employment of Mr. Lumsdaine by Healthways and with his separation from employment with Healthways, if applicable, including but not limited to any and all claims under the Employment Agreement or otherwise for pay, benefits, damages, or any other relief which were, might or could have been asserted in any court, before any arbitrator, or before any administrative agency, including without limitation, the Civil Rights Act of 1991; Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1866; the Americans with Disabilities Act; the Rehabilitation Act of 1973; the Age Discrimination in Employment Act; the Older Workers Benefit Protection Act; the Family and Medical Leave Act; the Employee Retirement Income Security Act of 1974; the Equal Pay Act; the Fair Labor Standards Act; the Vietnam Era Veteran's Readjustment Assistance Act; the Uniformed Service Employment and Reemployment Rights Act of 1994; the Worker  Adjustment and Retraining Notification Act; the Fair Credit Reporting Act; the Immigration Reform and Control Act of 1986; the Occupational Safety and Health Act of 1970; the Employee Polygraph Protection Act; any and all "whistle blower" employee statutes or regulations (i.e., those providing protection to an employee who raises charges of illegality, impropriety, workplace misconduct, failure to adhere to policies and procedures, etc.), any amendments to any of the foregoing, and any other federal, state, or local statute, regulation, ordinance, or common law, including without limitation any law related to discrimination (i.e., those pertaining generally to race, color, sex, age, religion, national origin, sexual orientation, worker's compensation or disability), retaliatory discharge (whether actual or constructive, and as and to the extent related to any of the foregoing), terms and conditions of employment, or termination of employment, to the full extent that such a release is allowed by law. This provision does not include the release of claims with respect to any vested benefits under a plan governed by the Employee Retirement Income Security Act or any claim related to the rights and benefits granted by the express terms of this Agreement.

	
(4)

	
Period of Time to Consider and Revoke. Mr. Lumsdaine has been encouraged by the Company to consult with his attorney before his execution of this Agreement. Mr. Lumsdaine was presented with this Agreement on July 27, 2016, and has been advised that he has twenty-one (21) days from July 27, 2016, to consider executing this Agreement; and that his decision to execute prior to the expiration of such twenty-one (21) day period was knowingly and voluntarily made. Mr. Lumsdaine further acknowledges that this Agreement has been individually negotiated and is not part of a group exit incentive or other separation package.

By signing and returning this Agreement, Mr. Lumsdaine acknowledges that he has read carefully and fully understands the terms of this Agreement, has had an opportunity to consult with his attorney prior to signing it and is signing it knowingly and voluntarily and has not been coerced or threatened into signing it or promised anything else in exchange for signing it other than as described herein.

Furthermore, Mr. Lumsdaine is aware that he has a right for a period of seven (7) days following his execution and delivery of this Agreement (the "Revocation Period"), to revoke this Agreement.  Mr. Lumsdaine's receipt, however, of the consideration contained in this Agreement is contingent on his execution and delivery of this Release Agreement and the expiration of the Revocation Period without this Agreement being revoked by Mr. Lumsdaine.

Mr. Lumsdaine must return a copy of the signed document to Mary Flipse via e-mail at Mary.Flipse@healthways.com.  Any revocation must also be delivered to Ms. Flipse.  The parties acknowledge that a copy of a signed document shall serve the same purpose as an original.

(5) Waiver.  Mr. Lumsdaine acknowledges that he is aware of his rights under the laws specifically and generally described in this Agreement and that as of the Effective Date, he waives those rights to the fullest extent that waiver is allowed by law; although the provisions of such waiver are not intended to be, nor shall the same be construed as, an indication that Mr. Lumsdaine has any legitimate causes of action under such provisions nor that Healthways has taken any actions in violation of such provisions.

(6) No Further Obligations.  Mr. Lumsdaine acknowledges that nothing in this  Agreement shall be considered or construed as an admission of liability or an admission that Healthways has violated any law, regulation or contract (express or implied).  Mr. Lumsdaine further acknowledges that the promises and payments provided hereunder also represent payment in full in satisfaction and resolution of all potential and/or disputed claims for back pay, severance pay, bonuses, equity grants/options, vacation pay (to the extent permitted by applicable law and except to the extent separately paid pursuant to company policy), compensatory, punitive, and/or liquidated damages, and damages or relief of any kind including costs, attorneys' fees, and expenses arising out of or pertaining to the unasserted claims released by this Agreement. Specifically, Mr. Lumsdaine acknowledges that he would not be entitled the payments and benefits described in Section 2 but for this Agreement.

(7) No Pending Complaints.  Mr. Lumsdaine represents and warrants that he has not filed any complaint(s) or charge(s) against Healthways with the Equal Employment Opportunity Commission or the state commission empowered to investigate claims of employment discrimination, the United States Department of Labor, the Office of Federal Contract Compliance Programs, or with any other local, state or federal agency or court, and that if any such agency or court assumes jurisdiction of any complaint(s) or charge(s) against Healthways on behalf of Mr. Lumsdaine, then Mr. Lumsdaine will request such agency or court to withdraw from the matter  and Mr. Lumsdaine will refuse any benefits derived therefrom, and the release contained in this Agreement shall apply to such claim.  This Agreement will not affect Mr. Lumsdaine's right to hereafter file a charge with or otherwise participate in an investigation or proceeding conducted   by the Equal Employment Opportunity Commission.  Mr. Lumsdaine represents and warrants that he has no knowledge of any practice engaged in by Healthways or its employees that is or was a violation in any material respect of any applicable state law or regulations or of any federal law or regulations including, but not by way of limitation, the Securities Act of 1933, as amended, and

the Securities Exchange Act of 1934, as amended, and the regulations promulgated thereunder. Mr. Lumsdaine further acknowledges that he is not personally aware of any violations of, nor has he violated, any provisions of the Business Code of Conduct.

Mr. Lumsdaine further agrees to neither institute nor in any manner voluntarily participate in, as a class member or otherwise, any civil action or arbitration against Healthways which is now pending or may hereafter be brought that concerns any matter encompassed by this Agreement.

(8)    Effective Date. This Agreement shall become effective eight (8) days following the date on which Mr. Lumsdaine executes the Agreement provided that he provides Healthways with the signed document and does not revoke it ("Effective Date").

 

 

	
July 27, 2016

	
 

	
/s/ Alfred Lumsdaine

	
Date

	
 

	
Alfred Lumsdaine

	
 

	
 

	
 

	
July 27, 2016

	
 

	
/s/ Mary Flipse

	
Date

	
 

	
Mary Flipse, Chief Legal Officer

  

 

SCHEDULE 1

Equity Schedule for Alfred Lumsdaine

 

Number of outstanding and unvested shares to be accelerated as of Closing

	
RSUs

	
 

	
142,282

	
 

	
 

	
 

	
Options

	
 

	
38,453

	
 

	
 

	
 

	
MSUs

	
 

	
75,000

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