Document:

Exhibit 10.1

 

Laboratory Corporation of America

 

 

CONFIDENTIAL

 

July 2, 2008 

 

Mr. William B. Haas

1144 Pinehurst Drive

Chapel Hill, NC  27517

 

Re:  Employment Separation Agreement and General Release

 

Dear Bill:

 

I am writing on behalf of Laboratory Corporation of America Holdings and its subsidiary and affiliated companies (“LabCorp” or the “Company”) to offer you (the “Employee”) the following Employment Separation Agreement and General Release (the “Agreement”). The terms and conditions of the Agreement are as follows:

 

	
            1.0  
 	
            Termination of Employment
 

 

	
             
 	
            1.1 
 	
            Effective May 31, 2008, Employee shall resign his employment (including his resignation as an Officer of the Company) and shall perform no further services for the Company; his status as an employee and Officer of the Company shall cease on that date.   Employee and the Company further agree that the relationship created by this Separation Agreement and General Release is purely contractual and that no employer-employee relationship is intended, nor shall such be inferred from the performance of obligations under this Agreement. Employee further agrees that any payments and/or benefits payable pursuant to this Agreement are contingent upon Employee’s execution and fulfillment of his obligations under this Agreement.
 

 

	
            Mr. William B. Haas
 

July 2, 2008

Page 2

 

 

 

2.0       Separation Pay

	
             
 	
            2.1 
 	
            In consideration for the covenants, promises and agreements herein and in particular Employee’s covenants not to solicit, not to compete and not to disclose confidential information, LabCorp will pay Employee a severance in the total amount of $937,125.00, less applicable taxes and withholdings, representing a payment of 1.5 times the sum of Employee’s current base salary of $357,000.00 plus the Employee’s target MIB Bonus of $267,750.00. LabCorp will remit a payment of $468,562.50, less applicable taxes and withholdings, within 30 days following the Effective Date of this Agreement. LabCorp will remit another payment of $468,562.50, less applicable taxes and withholdings, within 30 days following the one-year anniversary of the Effective Date of this Agreement. For purposes of this Agreement, “MIB Bonus” shall mean
a payment as defined under the LabCorp Management Incentive Bonus Plan. 
 

	
             
 	
            2.2
 	
            In addition to the compensation payable under Paragraph 2.1 of the Agreement, Employee shall be eligible to receive a pro rated portion of his 2008 target MIB Bonus in the amount of $111,562.50, less applicable taxes and withholdings, in accordance with the terms of the applicable LabCorp Management Incentive Bonus Plan that is payable if, and when, the Company pays 2008 bonuses to participants under the LabCorp Management Incentive Bonus Plan.  
 

	
             
 	
            2.3
 	
            LabCorp will also pay Employee $2,500.00, which will be grossed up to cover any applicable taxes and withholdings, within 30 days after execution of this Agreement.
 

	
             
 	
            2.4
 	
            LabCorp shall not be responsible for making any payment under this Paragraph 2.0 and its sub-parts if Employee has not complied in all material respects with the terms and conditions of this Agreement. 
 

	
            3.0
 	
            Participation in the Senior Executive Transition Policy
 

	
             
 	
            3.1  
 	
            In addition to the consideration contained in Paragraph 2.0 (and the sub-parts thereto) and subject to the limitations described in Paragraph 3.2, Employee will be deemed an Eligible Senior Executive as defined in the Laboratory Corporation of America Senior Executive Transition Policy.
 

 

CONFIDENTIAL

 

 

	
            Mr. William B. Haas
 

July 2, 2008

Page 3

 

 

 

	
             
 	
            3.2
 	
            In the event Employee breaches any obligation, duty, representation or warranty contained in this Agreement, then (1) Employee’s participation in the Senior Executive Transition Policy will be terminated immediately; (2) LabCorp will have no liability, duty or obligation to Employee pertaining to the Senior Executive Transition Policy; and (3) Employee shall forfeit all rights and claims under the Senior Executive Transition Policy.
 

4.0  Continuation of Benefits  

	
             
 	
            4.1
 	
            In addition to the consideration contained in Paragraphs 2.0 and 3.0 (including the sub-parts thereto), Employee, his spouse, and his other dependent(s) may be eligible to elect continued health care coverage under the group medical and dental plans sponsored by the Company, as provided in the applicable provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), which provides generally that certain employees and their dependents may elect to continue coverage under employer-sponsored group health plans for a period of at least eighteen (18) months under certain conditions, including payment by Employee of the “Applicable Premium” as defined in Section 604 of the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. §§ 1001 et seq.
(“ERISA”). In the event Employee elects continuation of coverage under COBRA for himself and his spouse and dependents, the Company will pay the applicable premium for such coverage (medical, dental, optical and prescription coverage for spouse and dependants) for the first eighteen (18) months, thereof.
 

	
             
 	
            4.2
 	
            Employee shall be eligible for such benefits under the Company’s existing qualified plans as are provided under the circumstances (taking into account termination of employment as of the effective date) pursuant to the terms of the Plan documents governing each of these Plans. Except as otherwise provided herein or in the terms of any documents governing any employee benefit plan maintained by the Company, Employee will cease to be a participant in and will no longer have any coverage or entitlement to benefits, accruals, or contributions under any of the Company’s employee benefit plans effective upon the termination of his employment. Employee agrees that the payments made to him by the Company pursuant to this Agreement do not constitute compensation for
 

CONFIDENTIAL

 

 

	
            Mr. William B. Haas
 

July 2, 2008

Page 4

 

 

 

purposes of calculating the amount of benefits Employee may be entitled to under the terms of any pension plan or for the purposes of accruing any benefit, receiving any allocation of any contribution, or having the right to defer any income in any profit-sharing or other employee pension benefit plan, including any cash or deferred arrangement.

	
            5.0  
 	
            Outplacement  
 

	
             
 	
            5.1
 	
            In addition to the consideration contained in Paragraphs 2.0, 3.0 and 4.0 (including the sub-parts thereto), LabCorp agrees to provide outplacement assistance services to Employee through Right Management Inc. for a period of either (a) eighteen (18) months; or (b) Employee’s placement in a full time position, whichever is earlier. Employee must begin use of these services within thirty (30) days of termination of employment. Failure to begin use of these services within thirty (30) days of termination will result in forfeiture of these services.
 

	
            6.0
 	
            Compromise
 

	
             
 	
            6.1
 	
            This Agreement shall never be construed as an admission by LabCorp of any liability, wrongdoing or responsibility on its part or on the part of any other person or entity described in Paragraph 7.1 of this Agreement. The Company expressly denies any such liability, wrongdoing or responsibility.
 

	
            7.0
 	
            Release
 

	
             
 	
            7.1
 	
            Employee, on behalf of himself and his heirs, assigns, transferees and representatives, hereby releases and forever discharges LabCorp, and its predecessors, successors, parents, subsidiaries, affiliates, assigns, representatives and agents, as well as all of their present and former directors, officers, employees, agents, shareholders, representatives, attorneys and insurers (collectively, the “Releasees”), from any and all claims, causes of actions, demands, damages or liability of any nature whatsoever, known or unknown, which Employee has or may have which arise out of his employment or cessation of employment with the Company, or which concern or relate in any way to any acts or omissions done or occurring prior to and including the date of this Agreement, including, but not limited to, claims arising under the Fair Labor
Standards Act, 29 U.S.C. §201 et seq.; the Equal Pay Act , 29 U.S.C. §206(a) and interpretive regulations; Title VII of the Civil Rights Act of 1964, as 
 

 

CONFIDENTIAL

 

 

	
            Mr. William B. Haas
 

July 2, 2008

Page 5

 

 

 

amended, 42 U.S.C. §2000e et seq.; 42 U.S.C. §1981 et seq.; the Americans with Disabilities Act, 42 U.S.C. §12101 et seq.; the Family and Medical Leave Act, 29 U.S.C. §2601 et seq.; the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. §1001 et seq.; the Worker Adjustment and Retraining Notification Act, 29 U.S.C. §§ 2101 et seq.; the Age Discrimination in Employment Act, as amended, 29 U.S.C. §§ 621 et seq.; any and all claims for wrongful termination and/or retaliation; claims for breach of contract, express or implied; claims for breach of the covenant of good faith and fair dealing; claims for compensation, including but not limited to wages, bonuses, or commissions except as otherwise contained herein; claims for benefits or fringe benefits, including, but not limited to, claims for
severance pay and/or termination pay, except as otherwise contained herein; claims for, or relating to stock or stock options (except that nothing in this Agreement shall prohibit Employee from exercising any vested stock options or affect Employee’s claims to vested benefits in the Company’s Employees’ Retirement Savings Plan, Deferred Compensation Plan, Employee Stock Purchase Plan, or Cash Balance Retirement Plan, in accordance with the terms of the applicable stock option agreement(s) and applicable plan documents); claims for unaccrued vacation pay; claims arising in tort, including, but not limited to, claims for invasion of privacy, intentional infliction of emotional distress and defamation; claims for quantum meruit and/or unjust enrichment; and any and all other claims arising under any other federal, state, local or foreign laws, as well as any and all other common law legal or equitable claims. 

	
             
 	
            7.2
 	
            Employee is hereby advised in accordance with the Older Workers’ Benefit Protection Act (the “OWBPA”) that:  (i) he should consult with an attorney (at his own expense) prior to executing this Agreement; (ii) he is waiving, among other things, any age discrimination claims under the Age Discrimination in Employment Act, provided, however, he is not waiving any claims that may arise after the date this Agreement is executed; (iii) he has twenty-one (21) days within which to consider the execution of this Agreement, before signing it; and (iv) for a period of seven (7) days following the execution of this Agreement, he may revoke this Agreement by delivering written notice (by the close of business on the seventh day) to the Company in accordance with Paragraph 12.8 herein. 
 

 

CONFIDENTIAL

 

 

	
            Mr. William B. Haas
 

July 2, 2008

Page 6

 

 

 

	
             
 	
            7.3  
 	
            Notwithstanding the provisions of Paragraph 7.1, said release does not apply to any and all statutory or other claims that are prohibited from waiver by Federal, State or local law. 
 

	
             
 	
            7.4
 	
            The parties agree that the Company has no prior legal obligation to make the additional payments set forth above in Paragraphs 2.0, 3.0, 4.0, and 5.0 (including the sub-parts thereto) and that it has been exchanged for the promises of Employee stated in this Agreement. It is specifically understood and agreed that the additional payments, and each of them, are good and adequate consideration to support the waivers, releases and obligations contained herein, including, without limitation, Paragraphs 7.0, 8.0, 9.0, 10.0 and 11.0 and their respective sub-parts, and that all of the payments set forth Paragraphs 2.0, 3.0, 4.0, and 5.0 (including the sub-parts thereto) are of value in addition to anything to which Employee already was entitled prior to the execution of this Agreement.
 

	
            8.0
 	
            Confidentiality
 

	
             
 	
            8.1
 	
            Employee understands and agrees that all discussions, negotiations and correspondence relating to this Agreement are strictly confidential and that this confidentiality provision is a material term of this Agreement. Accordingly, Employee agrees not to disclose to anyone (other than counsel, accountants, immediate family members) such information unless such disclosure is (i) lawfully required by any government agency; (ii) otherwise required to be disclosed by law (including legally required financial reporting) and/or by court order; or (iii) necessary in any legal proceeding in order to enforce any provision of this Agreement. 
 

	
             
 	
            8.2  
 	
            The parties acknowledge that during the course of Employee’s employment with the Company, he was given access, on a confidential basis, to Confidential Information which the Company has for years collected, developed, and/or discovered through a significant amount of effort and at great expense. The parties acknowledge that the Confidential Information of the Company is not generally known or easily obtained in the Company’s trade, industry, business, or otherwise and that maintaining the secrecy of the Confidential Information is extremely important to the Company’s ability to compete with its competitors.
 

 

CONFIDENTIAL

 

 

	
            Mr. William B. Haas
 

July 2, 2008

Page 7

 

 

 

	
             
 	
            8.3
 	
            Employee agrees that for a period of seven (7) years from the date of this Agreement, Employee shall not, without the prior written consent of the Company, divulge to any third party or use for his own benefit, or for any purpose other than the exclusive benefit of the Company, any Confidential Information of the Company; provided however, that nothing herein contained shall restrict Employee’s ability to make such disclosures as such disclosures may be required by law; and further providing that nothing herein contained shall restrict Employee from divulging information that is readily available to the general public as long as such information did not become available to the general public as a direct or indirect result of Employee’s breach of this section of this Agreement.
 

	
             
 	
            8.4
 	
            The term “Confidential Information” in this agreement shall mean information that is not readily and easily available to the public or to persons in the same business, trade, or industry of the Company, and that concerns the Company’s prices, pricing methods, costs, profits, profit margins, suppliers, methods, procedures, processes or combinations or applications thereof developed in, by, or for the Company’s business, research and development projects, data, business strategies, marketing strategies, sales techniques, customer lists, customer information, or any other information concerning the Company or its business that is not readily and easily available to the public or to those persons in the same business, trade, or industry of the Company. The term “customer information” as used in this Agreement shall
mean information that is not readily and easily available to the public or to those persons in the same business, trade, or industry and that concerns the course of dealing between the Company and its customers or potential customers solicited by the Company, customer preferences, particular contracts or locations of customers, negotiations with customers, and any other information concerning customers obtained by the Company that is not readily and easily available to the public or to those in the business, trade, or industry of the Company. 
 

	
             
 	
            8.5
 	
            Employee acknowledges that all information, the disclosure of which is prohibited hereby, is of a confidential and proprietary character and of great value to the Company, and upon the execution of this Agreement (or as soon thereafter as is reasonably practicable), Employee shall forthwith
 

CONFIDENTIAL

 

 

	
            Mr. William B. Haas
 

July 2, 2008

Page 8

 

 

 

deliver up to the Company all records, memoranda, data, and documents of any description that refer to or relate in any way to such information and shall return to the Company any of its equipment and property which may then be in Employee’s possession or under Employee’s personal control. 

	
             
 	
            8.6
 	
            Employee hereby agrees that any failure to fully and completely comply with this provision shall entitle the Company to seek damages for a demonstrated breach of the confidentiality provision, to include recoupment of monies paid hereunder. Notwithstanding this paragraph, Employee may disclose the contents of Paragraph 9.0 and its sub-parts to any subsequent employer.
 

	
             
 	
            8.7
 	
            Employee further agrees that he will notify the Company in writing within five (5) calendar days of the receipt of any subpoena, court order, administrative order or other legal process requiring disclosure of information subject to Paragraphs 8.0 and sub-parts thereto. 
 

	
            9.0
 	
            Non-Solicitation/Non-Compete
 

	
             
 	
            9.1  
 	
            For a period of twenty-four (24) months following the termination of Employee’s Employment, Employee will not, without the prior written consent of the Corporation: 
 

 

	
             
 	
            9.1.1
 	
            Directly or indirectly through a subordinate, co-worker, peer, or any other person or entity contact, solicit or communicate with a customer of the Company or potential customer targeted by the Company at the time of termination of employment for the purpose of (i) offering, selling, licensing or providing the same or substantially similar clinical trials, commercial clinical or anatomical pathology testing services offered and/or provided to said customer or potential customer by the Company; or (ii) influencing said customer’s or potential customer’s decision on whether to purchase or use such clinical trials, commercial clinical testing or anatomical services offered by the Company;
 

 

	
             
 	
            9.1.2
 	
            Directly or indirectly through a subordinate, co-worker, peer, or any other person or entity contact, solicit, encourage or induce any officer, director, employee, or contractor of the Company to consult, work for or be otherwise engaged by the Employee and/or any other person, trade or business that either (i) directly competes with 
 

 

CONFIDENTIAL

 

 

	
            Mr. William B. Haas
 

July 2, 2008

Page 9

 

 

 

the Company in the same geographic markets serviced by the Company; or (ii) supplies, services, advises or consults with a person, trade or business that directly competes with the Company in the same geographic markets serviced by the Company; or

 

	
             
 	
            9.1.3
 	
            Directly or indirectly own, invest in, consult for, be employed by or otherwise engaged by any person, trade or business that either     directly competes with the Company in the same geographic markets serviced by them except that nothing in this Agreement shall prohibit Employee from holding not more than a five percent (5%) of the outstanding shares of a publicly traded company other than a company primarily engaged in commercial laboratory testing. 
 

 

	
             
 	
            9.2 
 	
            Employee acknowledges and agrees that the foregoing restrictions are necessary for the reasonable and proper protection of the Company; are reasonable in respect to subject matter, length of time, geographic scope, customer scope, and scope of activity to be restrained; and are not unduly harsh and oppressive so as to deprive Employee of his livelihood or to unduly restrict Employee’s opportunity to earn a living after termination of Employee’s employment with the Company.
 

 

	
             
 	
            9.3
 	
            Employee acknowledges and agrees that because the violation, breach, or threatened breach of Paragraph 9.0 and its sub-parts would result in immediate and irreparable injury to the Company, the Company shall be entitled, without limitation of remedy, to (a) temporary and permanent injunctive and other equitable relief restraining Employee from activities constituting a violation, breach or threatened breach of Paragraph 9.0 and its sub-parts to the fullest extent allowed by law; (b) all such other remedies available at law or in equity, including without limitation the recovery of damages, reasonable attorneys’ fees and costs; and (c) withhold any further rights, payments or benefits under this Agreement which become due and owing after the occurrence of said violation, breach or threatened breach, including, without limitation, any rights or claims under Paragraphs
2.0, 3.0, 4.0 or 5.0 and the sub-parts thereto.
 

 

CONFIDENTIAL

 

 

	
            Mr. William B. Haas
 

July 2, 2008

Page 10

 

 

 

	
             
 	
            10.0 
 	
            Return of Company Property
 

 

	
             
 	
            10.1
 	
            Employee agrees that prior to his execution of this Agreement, he will return any and all Company documents and any copies thereof, in any form whatsoever, including computer records or files, containing secret, confidential and/or proprietary information or ideas, and any other LabCorp property (including, but not limited to, any cell phones, pagers and/or computer equipment) in Employee’s possession or control.
 

	
            11.0
 	
            Duty to Cooperate and of Loyalty/Nondisparagement
 

	
             
 	
            11.1
 	
            Without limitation as to time, Employee agrees to cooperate and make all reasonable and lawful efforts to assist the Company in addressing any issues which may arise concerning any matter with which he was involved during his employment with LabCorp, including, but not limited to cooperating in any litigation arising therefrom.  LabCorp shall reimburse Employee at a fair and reasonable rate for services provided by the Employee to the Company in connection with services provided under this provision.
 

	
             
 	
            11.2
 	
            Employee will not (except as required by law) communicate to anyone, whether by word or deed, whether directly or through any intermediary, and whether expressly or by suggestion or innuendo, any statement, whether characterized as one of fact or of opinion, that is intended to cause or that reasonably would be expected to cause any person to whom it is communicated to have (1) a lowered opinion of the Company or any affiliates, including a lowered opinion of any products manufactured, sold, or used by, or any services offered or rendered by the Company or its affiliates; and/or (2) a lowered opinion of the Company’s creditworthiness or business prospects. Employee’s obligation in this regard extends to the reputation of the Company and any other person or entity described in Paragraph 7.1 of this Agreement.
 

 

CONFIDENTIAL

 

 

	
            Mr. William B. Haas
 

July 2, 2008

Page 11

 

 

 

12.0  Miscellaneous

	
             
 	
            12.1
 	
            This Agreement is binding on, and shall inure to the benefit of, the Parties hereto and their heirs, representatives, transferees, principals, executors, administrators, predecessors, successors, parents, subsidiaries, affiliates, assigns, agents, directors, officers and employees.
 

	
             
 	
            12.2
 	
            Employee acknowledges and reaffirms his obligations contained in the letter agreement dated May 24, 2004 between the Parties (attached hereto and referred to herein as “Exhibit A”). If there is any conflict between the terms of this agreement and the terms of Exhibit A, the terms of the more restrictive provision(s) benefitting the Company shall control. Employee agrees that only the considerations for signing this agreement are the terms stated in this agreement and as set forth in Exhibit A and that no other representations, promises, or assurances of any kind have been made to him by the Company, its attorneys or any other person as an inducement to sign this Agreement. Except for the terms of Exhibit A, any and all prior agreements, representations, negotiations and understandings among the Parties, oral or written, express of implied, with respect to the
subject matter hereof are hereby superseded and merged herein. 
 

 

	
             
 	
            12.3
 	
            This Agreement may not be revised or modified without the mutual written consent of the Parties.
 

 

	
             
 	
            12.4
 	
            Employee represents that he has not initiated any action or charge against the Company or any of its predecessors, successors, parents, subsidiaries, affiliates, agents, assigns, representatives or their present or former directors, officers, employees or agents with any federal, state or local court or administrative agency. If such an action or charge has been filed by Employee, or on Employee’s behalf, he will use his best efforts to cause it immediately to be withdrawn and dismissed with prejudice.
 

	
             
 	
            12.5
 	
            The Parties acknowledge and agree that they have each had sufficient time to consider this Agreement and consult with legal counsel of their choosing concerning its meaning prior to entering into this Agreement. In entering into this Agreement, no Party has relied on any representations or warranties of any other Party other than the representations or warranties expressly set forth in this Agreement. Employee acknowledges
 

 

CONFIDENTIAL

 

 

	
            Mr. William B. Haas
 

July 2, 2008

Page 12

 

 

 

that he has read this Agreement and that he possesses sufficient education and experience to fully understand the terms of this Agreement as it has been written, the legal and binding effect of this Agreement, and the exchange of benefits and payments for promises hereunder, and that he has had a full opportunity to discuss or ask questions about all such terms.

 

	
             
 	
            12.6
 	
            Except as otherwise provided in this paragraph, if any provision of this Agreement shall be determined to be invalid or unenforceable by a court of competent jurisdiction, that part shall be ineffective to the extent of such invalidity or unenforceability only, without in any way affecting the remaining parts of said provision or the remaining provisions of this Agreement; provided that, if any provision contained in this Agreement shall be adjudicated to be invalid or unenforceable because such provision is held to be excessively broad as to duration, geographic scope, activity or subject, such provision shall be deemed amended by limiting and reducing it so as to be valid and enforceable to the maximum extent compatible with the applicable laws of such jurisdiction, and such amendment only to apply with respect to the operation of such provision in the applicable
jurisdiction in which the adjudication is made. If Paragraph 7.0 or any of its sub-parts of this Agreement is deemed invalid or unenforceable, in whole or in part, by a court of competent jurisdiction, this entire Agreement shall be null and void, and any consideration paid hereunder shall be repaid immediately by Employee upon receipt of notice thereof.  
 

 

	
             
 	
            12.7
 	
            Employee agrees that because he has rendered services of a special, unique, and extraordinary character, damages may not be an adequate or reasonable remedy for breach of his obligations under this Agreement. Accordingly, in the event of a breach or threatened breach by Employee of the provisions of this Agreement, the Company shall be entitled to (a) an injunction restraining Employee from violating the terms hereof, or from rendering services to any person, firm, corporation, association, or other entity to which any confidential information, trade secrets, or proprietary materials of the Company have been disclosed or are threatened to be disclosed, or for which Employee is working or rendering services, or threatens to work or render services (b) all such other remedies available at law or in equity, including without limitation the recovery of damages, reasonable
attorneys’ fees and costs, and (c) withhold any further payments under this Agreement which become due and owing after the 
 

 

CONFIDENTIAL

 

 

	
            Mr. William B. Haas
 

July 2, 2008

Page 13

 

 

 

occurrence of said violation, breach or threatened breach. Nothing herein shall be construed as prohibiting the Company from pursuing any other remedies available to it for such breach or threatened breach of this Agreement, including the right to terminate any payments to Employee pursuant to this Agreement or the recovery of damages from Employee. Employee agrees that the issuance of the injunction described in this paragraph may be without the posting of any bond or other security by the Company.

 

	
             
 	
            12.8
 	
            Such notice and any other notices required under this Agreement shall be served upon the Company via telecopier and U.S. Mail as follows:
 

If to the Company:

Laboratory Corporation of America Holdings

	
             
 	
            430 S. Spring Street
 

	
             
 	
            Burlington, NC  27215
 

	
             
 	
            Telephone No. (336) 436-4226
 

	
             
  	
            Telecopier No. (336) 436-4177
  

	
             
 	
            Attention:  General Counsel
 

 

With a copy to:

Laboratory Corporation of America Holdings

309 East Davis Street

Burlington, NC  27215

	
             
 	
            Attention:  Director of HR Compliance
 

 

If to the Employee:

William B. Haas

	
             
 	
            1144 Pinehurst Drive
 

	
             
 	
            Chapel Hill, NC  27517
 

 

	
             
 	
            12.9
 	
            The interpretation and performance of this Agreement is governed by the laws of the State of North Carolina, without reference to that jurisdiction’s choice of law provisions. 
 

 

	
             
 	
            12.10
 	
            The Effective Date of this Agreement shall be either (a) May 31, 2008 or (b) the day after expiration of the seven (7) day revocation period set forth in Paragraph 7.2 of this Agreement, whichever date is later.
 

 

CONFIDENTIAL

 

 

	
            Mr. William B. Haas
 

July 2, 2008

Page 14

 

 

 

If you agree with the foregoing, please sign below and return two (2) originals to me. You should retain one (1) original copy of this Agreement for your records.

 

Sincerely,

 

	
            /s/DAVID P. KING
 

David P. King 

President and Chief Executive Officer

 

 

Agreed to and accepted:

 

 

	
            /s/WILLIAM B. HAAS
 

	
            William B. Haas
 

 

July 8, 2008

 

CONFIDENTIAL

 

 

 

EXHIBIT A

Laboratory Corporation of America

	
             
 	
            May 24, 2004
 

 

William B. Haas

Laboratory Corporation of America Holdings

430 South Spring Street

Burlington, NC  27215

 

Dear Mr. Haas:

 

This letter is intended to memoralize your agreement, as the Executive Vice President of Laboratory Corporation of America Holdings (“the Company”), to certain duties of confidentiality, non-competition, and similar matters during your employment, and following your termination of employment, with the Company and any of its affiliates (collectively, “LabCorp”). If you sign and return this letter on or before June 11, 2004, you will satisfy the requirement of Section 2 of the Senior Executive Transition Policy for being an “Eligible Senior Executive” as defined in that Policy.

 

Defined Terms. For purposes of this letter, “Laboratory Testing” refers to the collection for testing and/or testing of specimens from human beings for the purposes of diagnosis, treatment, or care of disease or illness; monitoring or providing data for the analysis of a regimen of treatment, a therapy, or a diagnostic or therapeutic procedure; and/or detection or analysis of the presence or absence of factors, chemicals or compounds. “Clinical Trial” refers to assembling, validating, or analyzing data relating to the safety or effectiveness of a drug or medical device.

 

Receipt of Confidential Information. You acknowledge that in the course of your employment with LabCorp, you have developed and will develop an extensive knowledge of LabCorp’s business, including but not limited to business strategies, cost information, marketing information, product and service information, new products and services under development, and plans for the expansion of product and service lines (including, without limitation, plans for the acquisition or licensing of intellectual property relating to Laboratory Testing). In addition, you acknowledge that in your employment you have access to information regarding LabCorp’s business plans, sales methods, and customers on a corporate-wide basis in every market in which LabCorp conducts business. The knowledge and information referred to above will be referred to as “Confidential Information.”

 

Competition. You and the company agree that LabCorp will suffer significant and irreparable injury, for which damages at law would not be a measurable or adequate remedy, if you become employed by any corporation or entity that competes with LabCorp or if you provide services to any such corporation or entity in any other capacity that would permit you to take advantage of the Confidential Information acquired by you during the course of your employment with LabCorp (including by breaching any of the numbered covenants contained in this paragraph). Accordingly, you agree that during your employment by LabCorp and for a period of (2) years following your termination of employment, you will not,  directly or indirectly:

 

	
             
 	
            1.
 	
            Become employed by or otherwise become interested in (as owner, stockholder, partner, co-venturer, director, officer, employee, agent, consultant, or otherwise) any corporation or entity that is engaged (a) in the business of Laboratory Testing in the United States and/or Canada at a location that is within five (5) miles of any location at which one or more employees of LabCorp is regularly engaged in any aspect of the business of Laboratory Testing (including, without limitation, any regular collection site served by LabCorp; or (b) that is engaged in the business of Clinical Trials in a county in which LabCorp is engaged in the business of Clinical Trials. This paragraph shall not prevent you from holding not more than five (5) percent of the outstanding securities of any class of any publicly traded company, other than a company
primarily engaged in Laboratory Testing.
 

 

	
             
 	
            2.
 	
            Solicit sales or business from any corporation or entity that was a customer of LabCorp within the one-year time period preceding your termination of employment provided, however, that the solicitation of sales of products or services not offered by LabCorp at the time of such solicitation shall not be deemed a violation of this provision.
 

 

	
             
 	
            3.
 	
            Employ or retain, or arrange to have any other person or entity employ or retain, any person who shall have been employed or retained by LabCorp as a director or officer at any time during the one-year time period preceding the termination of your employment.
 

 

	
             
 	
            4.
 	
            Attempt to influence any director or officer of LabCorp to terminate or modify his or her employment arrangement with LabCorp.
 

 

You agree that the foregoing restrictions are necessary for the reasonable and proper protection of the Company; are reasonable in respect to subject matter, length of time, geographic scope, customer scope, and scope of activity to be restrained; and are not unduly harsh and oppressive so as to deprive you of a livelihood or to unduly restrict your opportunity to earn a living after termination of your employment with the Company.

 

Confidentiality. During the term of your employment with LabCorp and thereafter, except as require by or pursuant to law, you shall not, without the written consent of the Board or a person authorized thereby, disclose to any person, other than an employee of LabCorp or a person to whom disclosure is reasonably necessary or appropriate in connection with the performance by you of your duties as a Senior Executive of LabCorp, any Confidential Information or Business Information obtained by you while in the employ of LabCorp. The term “Business Information” means any information pertaining to LabCorp’s conduct of its Laboratory Testing and/or Clinical Trial business that is not readily and easily available to the public or to those in LabCorp’s industry, including, without limitation, LabCorp’s prices, pricing methods, costs, profits, profit
margins, suppliers, procedures, processes, research and development projects, data, goals, activities, business strategies, marketing techniques, the identities or addresses of LabCorp’s employees, the functions of LabCorp’s employees, and any customer-related information.

 

Property. During the term of this Agreement, you shall not make, copy, maintain, distribute, divulge the contents of, or remove from LabCorp’s offices or premises any documents, records, or similar materials containing Confidential Information or Business Information unless necessary or appropriate in accordance with your duties and responsibilities as [President OR Executive Vice President]. Upon termination of your employment with LabCorp, you shall leave with or immediately return to LabCorp all originals and copies of the foregoing LabCorp property then in your possession, whether prepared by you or by others.

 

Duty of Loyalty/Nondisparagement. During the terms of your employment and for a period of five years following your termination of employment, you will not (except as required by or pursuant to law) communicate to anyone, whether by word or deed, whether directly or through any intermediary, and whether expressly or by suggestion or innuendo, any statement, whether characterized as one of fact or of opinion, that is intended to cause or that reasonably would be expected to cause any person to whom it is communicated to have (1) a lowered opinion of the company or any affiliate, including a lowered opinion of any products manufactured, sold, or used by, or any services offered or rendered by the Company or any affiliate; and/or (2) a lowered opinion of the creditworthiness or business prospects of the company or any affiliate.

 

Interpretation and Enforcement. You and the Company agree that this letter will be interpreted and construed under the laws of North Carolina (exclusive of any laws relating to choice of law in the event of conflicts of law and of any principle causing ambiguities to be construed against the drafter), and that the covenants contained in the Competition portion of this letter will be construed and interpreted so as to permit their enforcement to the maximum extent permitted there under (including, to the extent necessary, by treating each provision of this letter as severable and separately enforceable, and/or by reforming any such separate provisions to the minimum extent necessary to permit enforcement of such covenants to the fullest extent permitted). You consent to the exclusive jurisdiction of the courts of North Carolina over any action or proceeding relating
to the validity and/or construction of this letter, and agree that you will not bring or remove any such action or proceeding other than in or to a court established by the State of North Carolina.

 

If this Agreement is acceptable to you, please sign and date this letter where indicated below.

 

	
             
 	
            Laboratory Corporation of America Holdings
 

 

	
             
 	
            By:/s/THOMAS MACMAHON
 

 

Accepted:

 

	
            /s/WILLIAM B. HAAS
 	
            6/11/04
 

William B. Haas

Executive Vice Presidentform8k_042509exh1057.htm

    EXHIBIT
10.57

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    PROMISSORY
NOTE

    

    
      	
              Principal

              $800,000.00

            	
              Loan
      Date

              04-20-2009

            	
              Maturity

              04-20-2010

            	
              Loan
      No.

            	
              Call/Coll

                            422

            	
              Account

            	
              Officer

              086

            	
              Initials

            
	
              References
      in the boxes above are for Lender's use only and do not limit the
      applicability of this document to any particular loan or
item.

              Any
      item above containing "* * *" has been omitted due to text length
      limitations.

            

    

    

    
      
        	
                Borrower:

              	
                AMERICAN
      CONSUMERS INC DBA SHOP RITE

                55
      HANNAH WAY

                ROSSVILLE,
      GA  30741

              	
                Lender:

              	
                GATEWAY
      BANK & TRUST

                Main

                5102
      Alabama Hwy

                Ringgold,
      GA  30736

                (706)
      965-5500

              

      

    

    
      

    

    

    
      	
              Principal
      Amount:   $800,000.00

            	
              Date
      of Note:  April 20, 2009

            

    

    

    PROMISE TO PAY. AMERICAN
CONSUMERS, INC. DBA SHOP RITE ("Borrower") promises to pay to GATEWAY BANK &
TRUST ("Lender"), or order, in lawful money of the United States of America, the
principal amount of Eight Hundred Thousand & 00/100 Dollars ($800,000.00) or
so much as may be outstanding, together with interest on the unpaid principal
balance of each advance. Interest shall be calculated from the date of each
advance until repayment of each advance.

    

    PAYMENT.  Borrower
will pay this loan in one payment of all outstanding principal plus all accrued
unpaid interest on April 20, 2010.  In addition, Borrower will pay
regular monthly payments of all accrued unpaid interest due as of each payment
date, beginning May 20, 2009, with all subsequent interest payments to be due on
the same day of each month after that. Unless otherwise agreed or required by
applicable law, payments will be applied first to any accrued unpaid interest;
then to principal; then to any unpaid collection costs; and then to any late
charges. Borrower will pay Lender at Lender's address shown above or at such
other place as Lender may designate in writing.

    

    VARIABLE INTEREST
RATE.  The interest rate on this Note is subject to change from
time to time based on changes in an independent index which is the Wall Street
Journal Prime Rate (the "Index").  The Index is not necessarily the
lowest rate charged by Lender on its loans.  If the Index becomes
unavailable during the term of this loan, Lender may designate a substitute
index after notifying Borrower.  Lender will tell Borrower the current
Index rate upon Borrower's request.  The interest rate change will not
occur more often than each month.  Borrower understands that Lender
may make loans based on other rates as well.  The Index currently is 3.250% per
annum.  The interest rate to be applied to the unpaid principal
balance of this Note will be calculated as described in the “INTEREST
CALCULATION METHOD” paragraph using a rate equal to the Index, adjusted if
necessary for any minimum and maximum rate limitations described below,
resulting in an initial annual rate of simple interest, based on a year of 360
days, of 6.000%.  NOTICE: Under no circumstances will the interest
rate on this Note be less than 6.000% per annum or more than the maximum rate
allowed by applicable law.

    

    INTEREST CALCULTION
METHOD.  Interest on this Note is computed on a 365/360 basis;
that is, by applying the ratio of the interest rate over a year of 360 days,
multiplied by the outstanding principal balance, multiplied by the actual number
of days the principal balance is outstanding.  All interest payable
under this Note is computed using this method.

    

    PREPAYMENT; MINIMUM INTEREST
CHARGE. In any event, even upon full prepayment of this Note, Borrower
understands that Lender is entitled to a minimum interest charge of $
10.00.  Other than Borrower's obligation to pay any minimum interest
charge, Borrower may pay without penalty all or a portion of the amount owed
earlier than it is due.  Early payments will not, unless agreed to by
Lender in writing, relieve Borrower of Borrower's obligation to continue to make
payments of accrued unpaid interest.  Rather, early payments will
reduce the principal balance due. Borrower agrees not to send Lender payments
marked "paid in full", "without recourse", or similar language.  If
Borrower sends such a payment, Lender may accept it without losing any of
Lender's rights under this Note, and Borrower will remain obligated to pay any
further amount owed to Lender.  All written communications concerning
disputed amounts, including any check or other payment instrument that indicates
that the payment constitutes "payment in full" of the amount owed or that is
tendered with other conditions or limitations or as full satisfaction of a
disputed amount must be mailed or delivered to: GATEWAY BANK & TRUST, Main,
5102 Alabama Hwy, Ringgold, GA 30736.

    

    LATE CHARGE.  If a
payment is 10 days or more late, Borrower will be charged $25.00, regardless of
any partial payments Lender has received.

    

    INTEREST AFTER
DEFAULT.  Upon default, including failure to pay upon final
maturity, the total sum due under this Note will continue to accrue interest at
the interest rate under this Note.  However, in no event will the
interest rate exceed the maximum

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    interest
rate limitations under applicable law.

    

    DEFAULT.  Each of
the following shall constitute an event of default ("Event of Default") under
this Note:

    

    Payment
Default. Borrower fails to make any payment when due
under this Note.

    

    Other
Defaults. Borrower fails to comply with or to
perform any other term, obligation, covenant or condition contained in this
Note or in any of the related documents or to comply with or to perform any
term, obligation, covenant or condition contained in any other
agreement between Lender and Borrower.

    

    Default in Favor of Third
Parties. Borrower or any Grantor
defaults under any loan, extension of credit, security agreement,
purchase or sales agreement, or any other agreement, in favor of any other
creditor or person that may materially affect any of Borrower's property or
Borrower's ability to repay this Note or perform Borrower's obligations
under this Note or
any of the related documents.

    

    False Statements. Any
warranty, representation or statement made or furnished to Lender by Borrower or
on Borrower's behalf under this Note or the related documents is false or
misleading in any material respect, either now or at the time made or furnished
or becomes false or misleading at any time thereafter.

    

    Insolvency. The dissolution or
termination of Borrower's existence as a going business, the insolvency of
Borrower, the appointment of a receiver for any part of Borrower's property, any
assignment for the benefit of creditors, any type of creditor workout, or the
commencement of any proceeding under any bankruptcy or insolvency laws by or
against Borrower.

    

    Creditor or Forfeiture
Proceedings. 
Commencement of foreclosure or forfeiture proceedings, whether by judicial
proceeding, self-help, repossession or any other method,
by any creditor of Borrower or by any governmental agency against any
collateral securing the loan.  This
includes a garnishment of any of Borrower's accounts,
including deposit accounts, with Lender.  However, this
Event of Default shall not apply if there is a good faith dispute by
Borrower as to the validity or reasonableness of
the claim which is the basis of the creditor or forfeiture
proceeding and
if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety
bond for the creditor or forfeiture proceeding, in an amount
determined by Lender, in its sole discretion, as being an adequate
reserve or bond for the dispute.

    

    Events Affecting Guarantor.
Any of the preceding events occurs with respect to any Guarantor of any of the
indebtedness or any Guarantor dies or becomes incompetent, or revokes or
disputes the validity of, or liability under, any guaranty of the indebtedness
evidenced by this Note.

    

    Change In
Ownership. Any change in ownership of twenty-five
percent (25%) or more of the common stock of Borrower.

    

    Adverse Change. A
material adverse change occurs in
Borrower's financial condition, or Lender believes the prospect of payment
or performance of this Note is impaired.

    

    Insecurity. Lender in good faith believes itself insecure.

    

    LENDER'S
RIGHTS.  Upon default, Lender may declare the entire unpaid
principal balance under this Note and all accrued unpaid interest immediately
due, and then Borrower will pay that amount.

    

    ATTORNEYS' FEES;
EXPENSES.  Lender may hire or pay someone else to help collect
this Note if Borrower does not pay.  Borrower will pay Lender that
amount.  This includes, subject to any limits under applicable law,
Lender's costs of collection, including court costs and fifteen percent (15%) of
the principal plus accrued interest as attorneys' fees, if any sums owing under
this Note are collected by or through an attorney at law, whether or not there
is a lawsuit, and legal expenses for bankruptcy proceedings (including efforts
to modify or vacate any automatic stay or injunction), and
appeals.  If not prohibited by applicable law, Borrower also will pay
any court costs, in addition to all other sums provided by law.

    

    GOVERNING LAW.  This
Note will be governed by federal law applicable to Lender and, to the extent not
preempted by federal law, the laws of the State of Georgia without regard to its
conflicts of law provisions.  This Note has been accepted by Lender in
the State of Georgia.

    

    <PAGE>

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                PROMISSORY
      NOTE

                (Continued)

              
	
                Page
      2

              

      

    

    
      

    

    

    DISHONORED ITEM
FEE.  Borrower will pay a fee to Lender of $ 15.00 or five
percent (5%) of the face amount of the check, whichever is greater, if Borrower
makes a payment on Borrower's loan and the check or preauthorized charge with
which Borrower pays is later dishonored.

    

    RIGHT OF SETOFF.  To
the extent permitted by applicable law, Lender reserves a right of setoff in all
Borrower's accounts with Lender (whether checking, savings, or some other
account).  This includes all accounts Borrower holds jointly with
someone else and all accounts Borrower may open in the
future.  However, this does not include any IRA or Keogh accounts, or
any trust accounts for which setoff would be prohibited by
law.  Borrower authorizes Lender, to the extent permitted by
applicable law, to charge or setoff all sums owing on the indebtedness against
any and all such accounts, and, at Lender's option, to administratively freeze
all such accounts to allow Lender to protect Lender's charge and setoff rights
provided in this paragraph.

    

    COLLATERAL.  Borrower
acknowledges this Note is secured by UCC ON ALL BUSINESS ASSETS, INCLUDED BUT
NOT LIMITED TO: ACCOUNTS, A/R, CASH FLOW, INVENTORY, FURNITURE, FIXTURES,
EQUIPMENT, REFRIGERATORS, FREEZERS, MACHINERY, COMPUTERS, REGISTERS, LEASEHOLD
IMPROVEMENTS, AND CD#22021108 WITH APPROXIMATE BALANCE OF
$300,000.00.

    

    LINE OF CREDIT. This Note
evidences a revolving line of credit. Advances under this Note may be requested
either orally or in writing by Borrower or as provided in this paragraph. Lender
may, but need not, require that all oral requests be confirmed in writing. All
communications, instructions, or directions by telephone or otherwise to Lender
are to be directed to Lender’s office shown above. The following person or
persons are authorized to request advances and authorize payments under the line
of credit until Lender receives from Borrower, at Lender’s address shown above,
written notice of revocation of such authority: MICHAEL A. RICHARDSON, President of
AMERICAN CONSUMERS, INC. DBA SHOP RITE; and PAUL R. COOK, Chief Financial
Officer of AMERICAN CONSUMERS, INC. DBA SHOP RITE. Borrower agrees to be
liable for all sums either: (A) advanced in accordance with the instructions of
an authorized person or (B) credited to any of Borrower’s accounts with Lender.
The unpaid principal balance owing on this Note at any time may be evidenced by
endorsements on this Note or by Lender’s internal records, including daily
computer print-outs.

    

    PRIOR NOTE. UCC #146-2007-414
RECORDED ON 05/08/07 IN THE WALKER COUNTY CLERKS OFFICE.

    

    SUCCESSOR
INTERESTS.  The terms of this Note shall be binding upon
Borrower, and upon Borrower's heirs, personal representatives, successors and
assigns, and shall inure to the benefit of Lender and its successors and
assigns.

    

    NOTIFY US OF INACCURATE INFORMATION
WE REPORT TO CONSUMER REPORTING AGENCIES. Please notify us if we
report any inaccurate information about your account(s) to a consumer reporting
agency. Your written notice describing the specific inaccuracy(ies) should be
sent to us at the following address: GATEWAY BANK & TRUST P.O. BOX 129
RINGGOLD, GA 30736.

    

    GENERAL
PROVISIONS.  If any part of this Note cannot be enforced, this
fact will not affect the rest of the Note.  Lender may delay or forgo
enforcing any of its rights or remedies under this Note without losing
them.  Borrower and any other person who signs, guarantees or endorses
this Note, to the extent allowed by law, waive presentment, demand for payment,
and notice of dishonor.  Upon any change in the terms of this Note,
and unless otherwise expressly stated in writing, no party who signs this
Note,  whether as maker,  guarantor, accommodation maker or
endorser, shall be released from liability.  All such parties waive
any right to require Lender to take action against any other party who signs
this Note as provided in O.C.G.A.  Section 10-7-24 and agree that
Lender may renew or extend (repeatedly and for any length of time) this loan or
release any party or guarantor or collateral; or impair, fail to realize upon or
perfect Lender's security interest in the collateral; and take any other action
deemed necessary by Lender without the consent of or notice to
anyone.  All such parties also agree that Lender may modify this loan
without the consent of or notice to anyone other than the party with whom the
modification is made.  The obligations under this Note are joint and
several.

    

    THIS
NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL
CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO
LAW.

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    BORROWER:

    

    
      	
              AMERICAN
      CONSUMERS INC DBA SHOP RITE

            	 
      
	
               

              By: /s/ Michael A.
      Richardson      (Seal)

            	
               

              By: /s/ Paul R.
      Cook                                                                                 (Seal)

            
	
              MICHAEL A.
      RICHARDSON,  President   of

              AMERICAN CONSUMERS INC DBA
      SHOP RITE

            	
              PAUL R.
      COOK,  Chief  Financial  Officer  of

              AMERICAN CONSUMERS INC DBA
      SHOP RITE

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