Document:

exv10w1

 

Exhibit-10.1

SALES AGENCY AGREEMENT

This Agreement is made as of May 16, 2007, by and between MedAire Inc, having its registered office
at Level 27, AMP Centre, 50 Bridge Street, Sydney NSW 2000, Australia, in care of Baker & McKenzie,
attention Steven Glanz (the “Company”), Aviation Assistance Services Pte Ltd having its registered
office at 331 North Bridge Road, #17-00 Odeon Towers, Singapore 188720 (the “Sales Agent”) and, for
the purposes of Clauses of 7, 9 to 15 of this Agreement only, International SOS Pte Ltd having its
registered office at 331 North Bridge Road, #17-00 Odeon Towers, Singapore 188720 (“Intl.SOS”).

     1. Appointment of Sales Agent.

          (a) Appointment. Sales Agent’s Location(s)/Territory. Upon the terms and conditions of this
Agreement, the Company hereby appoints the Sales Agent as an authorized exclusive sales agent of
the Company’s products and services set out in Annex 1 attached hereto (collectively referred to as
the “Services”) in the countries listed in Annex 2 attached hereto (the “Territory”) and the Sales
Agent hereby accepts such appointment.

          (b) Performance Measures. At least 30 days prior to the end of each calendar year during the
term of this Agreement, the parties will agree upon sales targets for Sales Agent to meet for the
following year. [ * ] The Company and the Sales Agent agree that the Sales Agent shall achieve at
least [ * ] % of the agreed sales target each year.

          (c) Amendments to Annexes. The parties may by mutual agreement amend the Annexes from time
to time to add or remove the Services and/or modify the Territory.

          (d) Prohibitions on Company. During the term of this Agreement, the Company shall not engage
in the following activities directly or indirectly whether by itself or in conjunction with another
party in the Territory subject to Clauses 12, 13, and 14 of this Agreement:

(i) appoint or be represented by other or additional sales agents for the Services
except for account management booked by the Company as more fully described in Clause
1(g) below;

(ii) make sales directly of the same or functionally similar Services to customer
purchasing offices located in the Territory; and/or

(iii) market or sell Services, on a direct basis, to any customer purchasing offices
located in the Territory.

          (e) Addition, Discontinuance and Modification of Services. The Company shall give written
notice of at least 60 days to the Sales Agent in the event it wishes to introduce new services for
sale in the Territory, discontinue any of the Services and/or make changes in the design,
packaging, or pricing, of any of such Services being provided in the Territory and shall consult
with the Sales Agent regarding any issue which the Sales Agent may have or transition plan as may
be requested.

 

*Omitted and filed separately with the Commission pursuant to an application for confidential treatment

1

 

          (f) The Sales Agent and the Company will jointly promote the sale and/or marketing of the
agreed Services under the Company’s trademarks, brands, service marks and product names listed in
Annex 1 (the “MedAire Trademarks”) in the Territory.

          (g) The Sales Agent will provide account management for MedAire contracted services in
accordance with commercially standard account management practices, such as ensuring all customer
queries are efficiently and quickly answered; ensuring renewals of contracts are managed correctly;
assisting the Company with collections; and maintaining relationships, to all accounts except for
those clients who have contracts with the Company at the date of this Agreement and who are
account-managed by the Company and who have been nominated by the Company as per the list of
accounts in Annex 5. During the term of this Agreement, the Company may from time to time ask the
Sales Agent to assist in the account management of any of such excepted clients and/or relinquish
its right in the account management of any such excepted clients, whereupon the Sales Agent will
provide account management to such excepted clients, or cancel such relinquishment. In all cases,
any such changes require the Company to advise the Sales Agent in writing and such change will
become effective 7 days from the date that the Sales Agent receives the written notice.

          (h) At least 30 days before the beginning of each financial year, the Sales Agent will
declare to the Company its general and administration expense budget for that financial year.

     2. Payment and Accounts.

          (a) Invoicing of customers shall be made by the Company or in special cases, as otherwise
mutually agreed.

          (b) The Sales Agent shall be responsible to assist in the collection of Services sales debts
as mutually agreed.

          (c) The Sales Agent shall be paid commissions according to Annex 3 for its efforts in the
distribution of the Services in the Territory.

     3. MedAire Trademarks. The Sales Agent shall have the right hereunder to represent that it is
“an Authorized Sales Agent of MedAire Services”. Any other use by the Sales Agent of the MedAire
Trademarks must be in a form and format approved by the Company in advance of such usage, and in
all cases Sales Agent agrees to comply with the Company’s reasonable quality control requirements
relating to use of the MedAire Trademarks.

     4. Promotional Materials. During the term of this Agreement, the Company shall take
reasonable action to assist the Sales Agent in the Sales Agent’s efforts to promote and sell the
Services and promote the MedAire Trademarks, including the provision of reasonable quantities of
support materials such as service information and sales or brand promotional literature, and Sales
Agent shall use such materials in its promotional and sales activities under this Agreement and in
accordance with the annual budget guidelines specified in Section 5.(d). Sales Agent agrees to
represent the Services consistent with the marketing and sales materials provided by the Company
and not to make any representations or warranties that are not expressly set forth therein and
Sales Agent shall not otherwise make any misrepresentations regarding the Company or the
Services.

2

 

     5. Duties of the Sales Agent.

          (a) Marketing Activities. The Sales Agent agrees to use its reasonable efforts to promote
the Services in the Territory. The Sales Agent shall at all times during the term of this
Agreement devote itself primarily to promoting and selling the Services in the Territory,
consistent with requirements to achieve results as described in 1(b).

          (b) Compliance with Law. The Sales Agent shall comply with all laws, ordinances and
regulations applicable to the Sales Agent’s distribution of the Services.

          (c) Selling and Distribution Expenses. The Sales Agent shall pay and discharge, and the
Company shall have no obligation to pay for, any expenses or costs incurred by the Sales Agent in
connection with its selling and distribution of the Services.

          (d) Promotion and Marketing Expenses. The Sales Agent shall pay and discharge, and the
Company shall reimburse mutually agreed upon expenses or costs incurred by the Sales Agent in
connection with its promotion and marketing of the Services and the MedAire Trademarks for any
mutually agreed activities. [ * ]

          (e) Reports. Within fifteen (15) days after the end of each calendar month, the Sales Agent
shall submit a written report to the Company setting forth in reasonable detail [ * ]. The Company
reserves the right to have reasonable access to the account files maintained by Sales Agent subject
to the Company giving Sales Agent prior written notice of at least 30 days.

          (f) Standards. The Sales Agent shall adhere to reasonable quality standards mutually agreed
between the Sales Agent and the Company in terms of distribution of the Services.

          (g) The Company may request the Sales Agent to set up an operations capability on behalf of
the Company for the provision of services that may be required in the future subject to mutually
agreed terms and conditions between the Company and the Sales Agent, such terms and conditions to
be attached as an Annex to this Agreement.

          (h) The Sales Agent commits to investing in the resources required as set out in Annex 4.

          (i) From time to time, in order to facilitate the understanding by the customer of the
Company’s culture and at the request of the Company, the Sales Agent will arrange meetings between
the Company’s representatives and such customers.

 

*Omitted and filed separately with the Commission pursuant to an application for confidential treatment

3

 

          (j) The Company may request the Sales Agent to incorporate a MedAire business development
sales person on a secondment basis into the Sales Agent’s sales team subject to the costs of such
secondment being borne by the Company and the ratio of such secondments to Sales Agent’s sales
staff being not more than 1 to 4.

     6. Company Commitments

          (a) The Company will provide sales support and assistance including but not limited to
reference material, sales collateral, customer testimonials, calls by technical specialists and
calls by product specialists, relevant to the Services that will be sold by the Sales Agent in
accordance with the annual budget guidelines specified in Section 5. (d).

          (b) The Company will provide training to the Sales Agent’s staff under the Company’s
credentialized programs [ * ]. Each party will bear their own costs and expenses (including for
their respective employees) in connecting with traveling to and attending such programs. [ * ].

          (c) The Company will provide its processes, support, tools and provider’s list for the
sourcing of equipment as requested by the Sales Agent to service clients on such terms and
conditions as may be mutually agreed between the Sales Agent and the Company.

     7. Intl.SOS Commitments. In consideration of the Company appointing the Sales Agent as an
exclusive sales agent of the Services in the Territory, Intl.SOS hereby guarantees the due
performance by the Sales Agent of its duties and obligations under this Agreement and undertakes
to, in the event the Sales Agent shall fail to so perform, carry out and perform such duties and
obligations as if Intl.SOS were named as a party to such duties and obligations instead of the
Sales Agent.

     8. Non-poaching. The Company and the Sales Agent mutually agree that neither party shall
without the other’s prior written consent either during or within six months after the termination
or expiry of this Agreement directly or indirectly, engage, employ or otherwise solicit for
employment any person who during the relevant period was an employee or sub-contractor of the
other.

     9. Confidential Information and Intellectual Property

          (a) Definition. As used in this Section, “Confidential Information” means information
developed by or for each party which is not otherwise generally known in any industry in which that
party is or may become engaged and includes, but is not limited to, information developed by or for
that party, whether now owned or hereafter obtained, concerning plans, marketing and sales methods,
materials, processes, procedures, devices utilized by that party, prices, quotes, suppliers,
manufacturers, customers with whom that party deals (or organizations or other entities or persons
associated with such customers), trade secrets and other confidential information of any type,
together with all written, graphic and other materials relating to all or any part of the same.

          (b) Non-Disclosure and Non-use. Except as authorized in writing by the disclosing party or
disclosure in connection with this Agreement, the receiving party shall not at any time, either

 

*Omitted and filed separately with the Commission pursuant to an application for confidential treatment

4

 

during or after the term of this Agreement, disclose or use, directly or indirectly, any
Confidential Information of which the receiving party gains knowledge during or by reason of this
Agreement.

     (c) Intellectual Property.

(i) Company Materials. All intellectual property, including without limitation,
drawings, specifications, designs and other data of any nature , including
modifications, customizations, upgrades or enhancements and derivative works thereof,
developed or acquired by or on behalf of the Company and its affiliates shall remain the
property of the relevant Company or Company affiliate and the Sales Agent shall have a
non-exclusive license to use and reproduce such Company Materials for the purposes of
the performance by the Sales Agent of the Services during the term of this Agreement
only provided that the Sales Agent shall not use, reproduce, publish, modify, adapt,
expand, sell, sub-license, transfer or otherwise dispose of, any or all of such Company
Materials, for any unauthorized purposes. The Company and its respective affiliates
shall retain all rights, title and interest in and to such materials, including, without
limitation, patents, copyrights and other intellectual property rights in any ideas,
concepts, designs, inventions, and expressions embodied in such materials.

(ii) Intl.SOS Materials. All intellectual property, including without limitation,
drawings, specifications, designs and other data of any nature, including modifications,
customizations, upgrades or enhancements and derivative works thereof, developed or
acquired by or on behalf of Intl.SOS and its affiliates shall remain the property of the
relevant Intl.SOS or Intl.SOS affiliate and the Sales Agent shall have a non-exclusive
license to use and reproduce such Intl,SOS Materials for the purposes of the performance
by the Sales Agent of the Services during the term of this Agreement only provided that
the Sales Agent shall not use, reproduce, publish, modify, adapt, expand, sell,
sub-license, transfer or otherwise dispose of, any or all of such Intl.SOS Materials,
for any unauthorized purposes. Intl.SOS and its respective affiliates shall retain all
rights, title and interest in and to such materials, including, without limitation,
patents, copyrights and other intellectual property rights in any ideas, concepts,
designs, inventions, and expressions embodied in such materials.

(iii) Sales Agent Materials. All intellectual property, including without limitation,
drawings, specifications, designs and other data of any nature, including modifications,
customizations, upgrades or enhancements and derivative works thereof, developed or
acquired by or on behalf of the Sales Agent shall remain the property of the Sales
Agent, except to the extent that they include or are derivatives of Company Materials or
Intl.SOS Materials as described above, in which case, they remain Company Materials or
Intl.SOS Materials, as applicable. The Sales Agent shall retain all rights, title and
interest in and to such materials (i.e. those materials that aren’t Company Materials or
Intl.SOS Materials or derivatives thereof), including, without limitation, patents,
copyrights and other intellectual property rights in any ideas, concepts, designs,
inventions, and expressions embodied in such materials.

(iv) Joint Developments. Ownership of all drawings, specifications, designs and other
data of any nature, including modifications, customizations, upgrades or enhancements
and derivative works thereof, developed or acquired jointly by or on behalf of the
Company and Intl.SOS in connection with the Services shall be

5

 

determined by mutual agreement prior to commencement of such joint activity, but the
Sales Agent shall have a non-exclusive license to use and reproduce such Joint
Developments for the purposes of the performance by the Sales Agent of the Services only
provided that the Sales Agent shall not use, reproduce, publish, modify, adapt, expand,
sell, sub-license, transfer or otherwise dispose of, any or all of such Joint
Developments, for any unauthorized purposes. Each of the Company and Intl.SOS shall
retain such rights, title and interest in and to such materials, including, without
limitation, patents, copyrights and other intellectual property rights in any ideas,
concepts, designs, inventions, and expressions embodied in such materials, as the
parties mutually agree upon.

(v) Restrictions. Each party shall not, and it shall procure that its affiliates shall
not, without that party’s consent alter, delete, change, modify vary, reverse, assemble,
reverse compile, copy, reproduce, enhance, prepare derivative works of, distribute,
translate or otherwise tamper with that party’s materials (as respectively described in
sub-clauses 9(b) (i) to (iv) above) in any form.

(vi) Reproductions. The Sales Agent shall ensure that any and all reproductions of the
Company Material, Intl.SOS Materials and the Joint Developments shall bear the relevant
party’s assertion of ownership of intellectual property right statement as may be
reasonably requested by that relevant party.

(vii) Return of Intellectual Property. Upon the expiration or termination of this
Agreement, each party shall and shall ensure that its affiliates shall return all of the
materials that belong to or are under license from third party to the other party or the
other party’s affiliates as the case may be and, if requested by the other party or its
affiliates, shall permanently delete all such materials from that party or that party’s
affiliate’s computer systems and computer storage devices and shall certify the same to
the other party or the other party’s affiliates in writing.

10. Indemnities

     (a) Intellectual Property Indemnity, including Patent and Trademark Indemnity. Each party
will defend the other parties and their respective affiliates (the “Indemnified Parties”) at its
expense any legal proceeding brought against any or all of the Indemnified Parties based on a claim
that an intellectual property right, such as copyright or patent or trademark or trade secret, of
that party infringes upon a copyright or patent or trademark or trade secret or other intellectual
property right, provided that that party is notified promptly and given full authority, information
and assistance for such defense. That party will pay all damages, costs and expenses (including
reasonable attorneys’ fees if that party does not assume the defense hereunder) incurred by the
Indemnified Parties, but will not be responsible for any compromise made without that party’s
consent.

6

 

     (b) The Company agrees to indemnify, defend and hold Intl.SOS and the Sales Agent, and their
respective affiliates and their respective their respective insurance carriers, parents,
subsidiaries, affiliates, officers, directors, representatives, assignees, employees, volunteers,
agents, shareholders and contractors (collectively referred to as the “Intl.SOS Indemnified
Parties”) harmless from and against any and all manner of action, causes of action, suits, debts,
accounts, warranties, damages, attorney’s fees, claims and demands, liabilities of every kind and
character, (including reasonable legal fees which may be incurred by the Intl.SOS Indemnified
Parties if the Company does not assume the defense hereunder against a claim for which
indemnification is required) brought by any party against any or all of the Intl.SOS Indemnified
Parties, howsoever arising out of or pertaining to or in connection with any or all of the
Services, including but not limited to any claim grounded in product liability, such as but not
limited to defective materials or defective manufacturing, negligence, or breach of warranty or
representation, provided that such indemnity, defense and hold harmless obligations shall not
apply to the extent they relate to negligent or wrongful conduct by any Int’l SOS Indemnified Party
or to a breach of this Agreement by Sales Agent or Intl.SOS. Intl.SOS and Sales Agent agree to
indemnify, defend and hold the Company, and its affiliates and their respective insurance carriers,
parents, subsidiaries, affiliates, officers, directors, representatives, assignees, employees,
volunteers, agents, shareholders and contractors (collectively referred to as the “Company
Indemnified Parties”) harmless from and against any and all manner of action, causes of action,
suits, debts, accounts, warranties, damages, attorney’s fees, claims and demands, liabilities of
every kind and character, (including reasonable legal fees which may be incurred by the Company
Indemnified Parties if Sales Agent or Intl.SOS does not assume the defense hereunder against a
claim for which indemnification is required) brought by any party against any or all of the Company
Indemnified Parties, howsoever arising out of or pertaining to or in connection with negligent or
wrongful conduct by any Int’l SOS Indemnified Party or to a breach of this Agreement by Sales Agent
or Intl.SOS.

     11. Disclaimer. Notwithstanding anything else contained in this Agreement, save for the
confidentiality obligations in Clause 9 and the indemnity obligations in Clause 10 above, each
party shall not be liable to the other parties for loss of profits, loss of use and/or
interruptions to business, and indirect or consequential loss or damage, howsoever arising, whether
out of negligence or otherwise in connection with this Agreement.

     12. Term. This Agreement shall be valid and existing unless otherwise terminated in
accordance with this Agreement.

     13. Termination without Cause. A party may terminate this Agreement without cause by giving
the other party a prior written notice of at least 365 days, such termination to take effect on the
day immediately following the last day of such notice period, and further provided that after 180
days from delivery of notice of termination, the Agreement shall automatically become non-exclusive
and Section 1(d) shall no longer apply.

Upon such termination, the Company shall pay the following to the Sales Agent:

          (a) commissions relating to Renewals (as defined in Annex 3) for [ * ] following such
termination, and the Company shall declare and submit to the Sales Agent an account of revenues for
such period certified by a public accountant

 

*Omitted and filed separately with the Commission pursuant to an application for confidential treatment

7

 

          (b) a full reimbursement amounting to [ * ]:

     [ * ]

     14. Termination With Cause.

          (a) A party hereto shall have the right to terminate this Agreement immediately by serving
notice of termination to the other parties if:

(i) any of the other parties has become unable to pay its debts or is insolvent or goes
into liquidation or has its authorization to do business withdrawn.

(ii) any of the other parties shall have failed to fulfill its obligations under this
Agreement and also have failed to correct such failure within fourteen (14) days after
receipt of written notice.

          (b) In the event of a breach of the performance measures referred to in Clause 1(b) above
which fails to be rectified by the Sales Agent within 60 days after written notification by the
Company to the Sales Agent, or in the event that the parties fail to agree upon the next year’s
sales target for the Sales Agent as required under Section 1(b) above, the Company shall have the
right within the next 6 weeks to terminate this Agreement forthwith.

          (c) Upon the termination of this Agreement under this Clause 14, the Company shall pay to the
Sales Agent the following:

(i) commissions relating to Renewals (as defined in Annex 3) for [ * ] following such
termination, and the Company shall declare and submit to the Sales Agent an account of
revenues for such period certified by a public accountant

(ii) a full reimbursement amounting to [ * ]:

     [ * ]

     15. Additional Consequences of Termination. Following termination of this Agreement whether
with or without cause, the following consequences shall follow:

          (a) Each party shall return to the respective other parties on the last day of termination of
this Agreement or at the request of such other party destroy, all forms and documents, including
the electronic form thereof, held by it bearing the name of such other party, or any of the
trademarks, or any other materials of or in relation to such other party, including but not limited
to Confidential Information, as such other party may reasonably require at the expense of such
other party.

          (b) The Sales Agent shall be entitled to receive [ * ].

          (c) Any termination of this Agreement shall not affect the rights or liabilities of the
parties hereto accrued.

 

*Omitted and filed separately with the Commission pursuant to an application for confidential treatment

8

 

          (d) Clauses 8 to 11 and 14 to 15 shall survive any termination or expiration of this
Agreement.

16. General.

          (a) Non-waiver of Rights. Forbearance, neglect of failure by the parties hereto to enforce
any one of the provisions of this Agreement or to insist upon strict compliance shall not be
construed as a waiver of any rights or privileges. A waiver of a past act or circumstance shall not
constitute or be a course of conduct or waiver of any subsequent action or circumstance. This term
of this Agreement may be waived only by a written instrument signed by the parties hereto. Any
waiver shall be effective only in the instance and for the purpose for which it is given.

          (b) Force Majeure. Each party shall be excused from delay or non-performance of any aspect
of this Agreement and each party shall have no claim for damage if and to the extent such delay or
failure is caused by occurrences beyond the control of that party including, but not limited to,
market conditions; acts of God; war, acts of terrorism, riots and civil disturbances; expropriation
or confiscation of facilities or compliance with any order or request of governmental authority;
strikes, labor or employment difficulties whether direct or indirect; or any cause whatsoever which
is not within the reasonable control of that party. That party shall immediately notify the other
parties of the existence of any such force majeure condition and the anticipated extent of the
delay or non-delivery.

          (c) Arbitration and Jurisdiction. Any dispute arising out of or in connection with this
Agreement, including any question regarding its existence, validity or termination, shall be
referred to and finally resolved by arbitration in New South Wales, Australia in accordance with
the New South Wales Commercial Arbitration Act 1984 and any amendments thereto for the time being
in force which rules are deemed to be incorporated by reference to this clause and the parties
hereto agree to submit to the exclusive jurisdiction of the Courts of New South Wales, Australia.
Each party which is a non-resident of Australia appoints the following as its agent for the service
of process pursuant to this Agreement:

9

 

For the Company:

Level 27, AMP Centre

50 Bridge Street

Sydney NSW 2000, Australia

C/o Baker & McKenzie

Attention Steven Glanz

For the Sales Agent:

International SOS (Australasia) Pty Ltd

Level 5, Challis House, 4 Martin Place

Sydney, NSW 2001

Attention: Group Managing Director

For Intl.SOS:

International SOS (Australasia) Pty Ltd

Level 5, Challis House, 4 Martin Place

Sydney, NSW 2001

Attention: Group Managing Director

          (d) Governing Law. This Agreement shall be governed by the laws of New South Wales,
Australia.

          (e) Notices. All notices and communications relating to this Agreement shall be in writing
(including facsimile) and sent to the addresses mentioned below:

If to the Company:

Level 27, AMP Centre

50 Bridge Street

Sydney NSW 2000, Australia

c/o Baker & McKenzie

Attention Steven Glanz

If to the Sales Agent:

International SOS (Australasia) Pty Ltd

Level 5, Challis House, 4 Martin Place

Sydney, NSW 2001

Attention: Group Managing Director

If to Intl.SOS:

331 North Bridge Road #17-00 Odeon Towers

Singapore 188720

Fax: 65 6339 6185

Attention: Group Managing Director

10

 

          (f) Alterations. The parties may make alterations or additions to this Agreement as they, in
their discretion, may mutually agree in writing.

          (g) Severability. If any provision of this Agreement is held by a court of competent
jurisdiction to be invalid, void, or unenforceable, the remaining provisions nevertheless shall
continue in full force and effect.

          (h) Headings. The section headings of this Agreement are for reference purposes only and are
to be given no effect in the construction or interpretation of this Agreement.

          (i) Counterparts. This Agreement may be executed in counterparts, each of which shall be an
original and all of which shall together constitute one and the same instrument.

          (j) No Assignment. This Agreement may not be transferred or assigned in whole or in part by
any of the parties without the prior written consent of the other parties, which may be withheld or
granted in a party’s sole discretion. Upon thirty (30) days prior written notice to the Company,
the Sales Agent and/or Intl.SOS may transfer or assign its rights, duties and obligations under
this Agreement to any of its parent, subsidiary or other affiliated corporation.

          (k) Independent Contractor Status. The relationship of the parties as between the Company and
the Sales Agent/Intl.SOS shall be that of principal and sales agent under this Agreement, and all
work and duties to be performed by Intl.SOS, the Sales Agent and the Company as contemplated by
this Agreement shall be performed by them each as an independent contractor. Neither Sales Agent
nor Intl.SOS shall have the right or authority to bind or obligate the Company in anyway without
the Company’s prior written consent.

          (l) Entire Agreement. This Agreement sets forth the full and complete agreement of the
parties hereto in respect of the subject matter hereof and merges all prior discussions and
correspondence between them relating thereto.

IN WITNESS THEREOF, the parties hereto have caused this Agreement to be executed by their
authorized officers.

	 	 	 	 	 
	 	 	 
	Signed for and on behalf of MedAire Inc:	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	Signed for and on behalf of International SOS Pte Ltd:	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	Signed for and on behalf of Aviation Assistance Services Pte Ltd	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 

11

 

	*	 	Annexes 1 — 5 (pages 12 — 21) omitted and filed separately with the Commission pursuant to an
application for confidential treatment.

 

	*	 	Omitted and filed separately with the Commission pursuant to
an application for confidential treatment

12ex10-15.htm

    Exhibit
      10.15

    

    CONFIDENTIAL
      SEPARATION AGREEMENT

    AND
      GENERAL RELEASE

    

    

    This
      CONFIDENTIAL SEPARATION AGREEMENT AND GENERAL RELEASE
(the
      “Agreement”) dated as of July 3, 2007, is entered into by and
      between BAY NATIONAL BANK, a Maryland corporation (the
“Company”), and RICHARD C. SPRINGER
      (“Springer”).  The Company and Springer may be
      individually referred to hereinafter as a “Party” or together as the
“Parties.”

    

    WHEREAS,  Springer
      and the Company entered into an Employment Agreement (“EA”) dated June 1,
      2006.

    

    WHEREAS,
      Springer has
      given notice to Company that pursuant to section 3.2.2(b) of the EA that he
      is
      terminating his employment with the Company.

    

    WHEREAS, each
      of
      the Parties desires to enter into an agreement that sets forth the terms of
      Springer’s separation of employment and a mutual release of claims.

    

    NOW,
      THEREFORE, in
      consideration of the mutual promises and agreements contained herein, the
      adequacy and sufficiency of which are hereby acknowledged, each of the Parties
      hereby agrees as follows:

    

    
      	
              1.  

            	
              Springer’s
                employment with the Company will terminate as of the close of business
                on
                July 20, 2007 (the “Termination Date”).  Each of the Parties
                acknowledges and agrees that Springer (a) will be paid his Base Salary
                as
                defined in section 4.1(a) of the EA through the Termination Date,
                (b) as
                provided for in section 4.3 of the EA will be reimbursed for all
                expenses
                incurred by him in connection with his employment with the
                Company;

            

    

    

    
      	
              2.  

            	
              (a)           Springer
                and the Company acknowledge that on or about July 9, 2007, the Company
                will cause Bay National Corporation transfer to Springer  3300
                shares of stock in Bay National Corporation described in section
                4.3(b)(iii) of the June 1, 2006 Employment
                Agreement.

            

    

    

    

    (b)           In
      addition to the payment contemplated by Section 2(a)  hereof, the
      Company shall pay 100% of the premiums in respect of Springer’s group medical,
      dental and vision insurances for the month of July, 2007.  Each of the
      Parties acknowledges and agrees that in the event Springer thereafter elects
      to
      continue to receive the benefits of any of such group policies in the manner
      and
      to the extent permitted by applicable law (i.e., the Consolidated Omnibus
      Budget Reconciliation Act of 1985 (“COBRA”), Springer shall be obligated
      to pay 100% of the cost of such continued coverage, under the same terms and
      conditions as are applicable to the Company’s active employees in accordance
      with, and subject to the limitations and requirements of, COBRA.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    

    
      	
              3

            	
              In
                exchange for the consideration and covenants herein stated, the Company
                releases Springer from any and all obligations, including but not
                limited
                to all non-competition, non-solicitation of customers and non-solicitation
                of employees provisions outlined in the June 1, 2006 Employment Agreement
                and he may begin employment at any time after the signing of this
                Agreement.   The Company further releases and discharges
                Springer from any and all causes of action, known and unknown, of
                any kind
                or nature, including any rights or claims arising out of Springer’s
                employment, up to the date of this Agreement and
                Release.

            

    

    

    
      	
              4.

            	
              In
                exchange for the consideration and covenants herein
                stated,  Springer agrees and executes this GENERAL RELEASE for
                himself and on behalf of his heirs, executors, administrators, attorneys,
                and assigns, and hereby releases and discharges the Company, its
                corporate
                parent, affiliates and subsidiaries, officers, directors, stockholders,
                and employees, from any and all causes of action, known or unknown,
                claims
                or liabilities of any kind which have been or could be asserted against
                the Company, including but not limited to such causes of action arising
                out of or in any way relating to Springer's employment (or his departure
                there from), claims for alleged breach of contract, wrongful discharge,
                or
                any rights or claims arising out of Title VII of the Civil Rights Act
                of 1964, as amended, the Americans with Disabilities Act, or any
                other
                federal, state or municipal statute or ordinance relating to employment
                and discrimination in employment.  Springer expressly waives his
                right to recover in his own right upon filing, any lawsuits, claims,
                grievances, complaints or charges with any Court, or any State and
                federal
                and local agency, concerning or relating to any dispute arising out
                of his
                employment relationship with the Company, alleged breaches of employment,
                covenants or contracts, abusive or wrongful and constructive discharge,
                unlawful employment discrimination, breaches of the Age Discrimination
                in
                Employment Act, or otherwise relating to Springer’s employment or
                separation from that employment with the Company; however, Springer
                does
                not waive any rights or claims to enforce this
                Agreement.

            

    

    

    
      	
              5.

            	
              Springer
                (a) represents, warrants and covenants to the Company that he has
                not and
                will not at any time in the future, in any way, disparage, discredit,
                defame or belittle the Company, and (b) acknowledges and agrees that
                he
                has no present or future right to employment with the
                Company.

            

    

    

    
      	
              6.

            	
              Company
                (a) represents, warrants and covenants to Springer that it has not
                and
                will not at any time in the future, in any way, disparage, discredit,
                defame or belittle Springer.

            

    

    

    
      	
              7.

            	
              (a)

            	
              Springer
                agrees that he will not, for himself or any other person or entity,
                directly or indirectly, divulge, communicate or in any way make use
                of,
                any of the Company’s confidential, sensitive or proprietary information
                acquired in the performance of his services therefor (“Confidential
                Information”) without the prior written consent of a duly authorized
                representative of the Company.  Confidential Information means
                data and information relating to the business of the Company and
                any
                parent and/or affiliate of the Company which has been disclosed to
                Springer or of which Springer became aware as a consequence of or
                through
                his relationship with the Company and which has value to the Company
                and
                is not generally known to its
                competitors.

            

    

     

    
 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (b)           Springer
      represents that he has not disclosed any Confidential Information to any person,
      other than to employees and in the ordinary course of Company’s
      business.  Springer will advise the Company of each circumstance of
      which he is aware reflecting or involving his disclosure, or his witness to
      any
      disclosure, of Confidential Information to any person (other than officers
      of
      the Company) including but not limited to disclosures to any governmental agency
      representative, and including such disclosures as may be required by law, by
      subpoena, or by other legal compulsion.  Springer will notify the
      Company immediately if he is served with a request for information, subpoena
      or
      other legal process to compel him to disclose any Confidential Information
      or
      about his employment and termination.

     

    
      	
              (c)

            	
              Springer
                represents that he has no information that would support or establish
                a
                claim against himself and/or the Company for any violation of any
                federal,
                state or local regulations, criminal or civil
                laws.

            

    

     

    
      	
              (d)

            	
              On
                or before the Termination Date, Springer will return all property
                of the
                Company including, but not limited to, all Confidential Information,
                without retaining any paper or electronic copies of such
                records

            

    

    

    
      	
              (e)

            	
              Springer
                acknowledges that the Confidential Information constitutes a valuable
                asset of the Company, embodying substantial business and creative
                efforts,
                and that any disclosure by him of Confidential Information will result
                in
                irreparable injury to the Company.  In the event of such
                disclosure or threatened disclosure, Springer consents to the grant
                by any
                court of equitable relief, including specific performance, a restraining
                order and/or an injunction, in favor of the Company, without prejudice
                to
                any and all other rights or remedies to which the Company may be
                entitled.  Springer also agrees that he will not disclose the
                existence or terms of this Agreement to any third parties with the
                exception of  accountants, attorneys and spouse, or as may be
                required to comply with legal process. Springer acknowledges and
                agrees
                that this requirement of confidentiality is a material inducement
                to the
                Company to enter into this
                Agreement.

            

    

    

    
      	
              8.

            	
              Nothing
                in this Agreement is intended to or shall be construed as an admission
                by
                the Company that it violated any law, interfered with any right,
                breached
                any obligation or otherwise engaged in any improper or illegal conduct
                with respect to Springer or otherwise, the Company expressly denying
                any
                such illegal or wrongful conduct.

            

    

    

    
      	
              9.

            	
              This
                Agreement embodies the entire agreement and understanding of the
                Parties
                with regard to the matters described herein and supersedes any and
                all
                prior or contemporaneous agreements and understandings, oral or written,
                between the Parties.

            

    

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
 

    
      	
              10.

            	
              If
                any part, term or provision of this Agreement is declared by any
                court or
                agency of competent jurisdiction in a judgment or order to be illegal,
                void, unenforceable or invalid, such provision shall have no effect
                upon
                and shall not impair the legality, enforceability or validity of,
                any
                other provision of this Agreement; provided, however, that
                upon any finding by such court of competent jurisdiction that a release
                or
                waiver of claims or rights is illegal, void, unenforceable or invalid,
                Springer agrees to execute a release, waiver and/or covenant that
                is
                legal, valid and enforceable.

            

    

    

    
      	
              11.

            	
              This
                Agreement shall be construed and interpreted in accordance with the
                law of
                the State of Maryland, without regard to the conflicts of law principles
                thereof.  Each of the Parties hereby consents to exclusive
                personal jurisdiction and venue in the Circuit Court of Baltimore
                County,
                State of Maryland.

            

    

    

    
      	
              12.

            	
              Springer
                further states that he has carefully read the foregoing, has had
                sufficient opportunity to review and deliberate the foregoing with
                counsel
                of his own choosing, knows and understands its contents, and signs
                the
                same as his free and independent act.  Pursuant to the Older
                Worker Benefit Protection Act, amending the Age Discrimination in
                Employment Act, Springer specifically represents and
                acknowledges:

            

    

     

    
      	
              (a)  

            	
              Springer
                has carefully read this Separation Agreement and General Release,
                has had
                sufficient opportunity to review and deliberate the foregoing documents
                with counsel of his own choosing, understands their contents, knowingly
                and voluntarily waives and releases the claims described in the General
                Release,

            

    

     

    
      	
              (b)  

            	
              Springer
                agrees that the consideration given for the releases contained in
                the
                General Release are in addition to anything of value to which Springer
                already was entitled,

            

    

     

    
      	
              (c)  

            	
              Springer
                was advised to consult with an attorney. He has had up to twenty-one
                (21)
                days from receipt of this Agreement and General Release to consider
                and
                accept, these terms, and he has seven (7) following his execution
                of this
                Agreement and General Release to revoke any acceptance of this Agreement
                and General Release, and

            

    

     

    
      	
              (d)  

            	
              Springer
                must revoke his acceptance within the seven-day period by delivering
                a
                written notice of his intent to revoke acceptance to Hugh W. Mohler,
                at
                2328 W. Joppa Road- #325, Lutherville, MD
                21093.

            

    

     

    This
      Separation Agreement and General Release shall not be effective and enforceable
      until the seven-day revocation period has expired.  If the Company
      does not receive written notice of Springer’s revocation, the entire Agreement
      and General Release will become binding and irrevocable.

     

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    EACH
      OF
      THE PARTIES STATES THAT THEY HAVE READ THE FOREGOING AGREEMENT, THAT THEY
      UNDERSTAND EACH OF ITS TERMS AND THAT THEY INTEND TO BE BOUND
      THERETO.

    

    BAY
      NATIONAL BANK

    

    

    

    
      	
              BY:  /s/
                Hugh W. Mohler

            	
              /s/
                Richard C. Springer

            
	
                     HUGH
                W. MOHLER, PRESIDENT

            	
               RICHARD
                C. SPRINGER

            
	
                     2328
                W. Joppa Road - #325

            	
              13342
                Pipes Lane

            
	
                     Lutherville,
                MD 21093

            	
              Sykesville,
                MD 21784

            
	
                     410-494-2580

            	
              410-442-2968

            

    

    

     

     

     

     

     

     

     

    5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]