Document:

exv10w55

     EXHIBIT 10.55

December 16, 2009

Dear Mr. Silcock:

As we have discussed, the purpose and intent of this letter agreement is to mutually resolve all
issues surrounding your employment by KB HOME and its affiliates (the “Company”), and to confirm
your separation from employment with the Company in all capacities effective December 14, 2009.

Salary and Benefits Continuation: Contingent upon your execution of this Agreement, and in
exchange for the promises and agreements made by you in this Agreement, the Company will provide
you with the following benefits:

Salary Continuation: The Company shall pay to you the total gross amount of Three
Hundred Thousand Dollars and No Cents ($300,000.00) as salary continuation (the “Salary
Continuation Payment”) as described in this paragraph. The Salary Continuation Payment
shall be paid to you in bi-monthly installments, less withholding of federal, state, and
local taxes, Social Security and any other required deductions, for a period of six (6)
months, commencing on the first regularly scheduled pay period after expiration of the
review and /or revocation periods that are described below (the “Term”). You shall not be
eligible for, or be entitled to, any payments or benefits of employment other than those
specifically identified in this Agreement.

Benefit Coverage: The Company will also continue your medical, dental and vision
benefit coverages during the Term. Unless you choose to discontinue these coverages at an
earlier date as discussed below, your coverage will end on the last day of the month in
which the Term ends. Regular payroll deductions will be deducted from your Salary
Continuation Payment installments to pay the employee-portion of your premiums to continue
your elected insurance coverages. If you choose to discontinue any of the foregoing
benefits during the Term, you must do so within thirty-one (31) days of your final day of
employment with the Company.

Within three (3) weeks of the end of the Term, you will receive information regarding your
group health continuation rights under the Consolidated Omnibus Budget Reconciliation Act
(COBRA). COBRA is a Federal Law that provides an opportunity to temporarily continue the
same group benefits after your group coverage has terminated. If you have any questions
regarding your COBRA eligibility, please contact Conexis at (xxx) xxx-xxxx.

Should you be a participant in the company 401(k) plan, you may receive a distribution of
your vested account balance and/or rollover your balance, subject to the terms of the plan.
Please contact Fidelity Investments at (xxx) xxx-xxxx to discuss your options. No 401(k)
contributions will be made from your salary continuation pay.

FY2009 Bonus Payment: The Company shall pay to you the total gross amount of Two Hundred
Thousand Dollars and No Cents ($200,000.00) as a bonus (the “Bonus”) as
described in this paragraph and as further set forth in your original Company Offer Letter
(as defined below). The Bonus shall be paid to you in a lump sum, less withholding of
federal, state, and local taxes, Social Security and any other required deductions. The

 

 

Mr. Raymond P. Silcock

December 16, 2009

Page 2

Bonus payment will be made at a time consistent with all other incentive recipients in the
Company, currently expected on or before February 5, 2010 (but in no event later than March
15, 2010).

Vacation: According to the Company records, as of December 14, 2009 you have
accrued 21.32 unused vacation hours and 16 unused personal hours. You acknowledge that on
December 14, 2009 you received a check in the amount of $33,842.36 (less applicable taxes
and other required deductions), which represents regular salary compensation through and
including that date and compensation for any and all vacation and personal days due to you.

Cell Phone: You may keep your Company TREO if you so desire, once it has been reset
to operate only as a cellular telephone. Should you elect to keep your Company TREO, you
will have until the close of business on December 21, 2009 to convert the assigned telephone
number to a personal account. If you have not converted the telephone number assigned to
your Company TREO to a personal account on or before December 21, 2009, that telephone
account and number will be cancelled by the Company.

Receipt of Acceptance: You acknowledge having been advised that you are entitled to a
period of 21 days to review and consider this Agreement before signing it, and that you have until
the close of business on January 6, 2010 to accept the terms of this letter. You may use as much
of this 21-day period as you wish and may sign and return this letter at any time prior to the
expiration of the 21-day period. You are advised to consider this Agreement carefully and to
consult with those in whom you have confidence, including legal counsel and financial advisors if
you so desire before signing this letter and whether or not to do so is your decision. You further
acknowledge receiving sufficient time and opportunity for this purpose. If you do not accept this
Agreement by delivering a signed original of this letter to Tom Norton prior to the end of such
21-day period, no later than the close of business on January 6, 2010, the terms of the offer
contained in this Agreement shall be deemed withdrawn.

Revocation: You may revoke this Agreement within seven (7) days after you sign it.
Revocation can be made by delivering a written notice of revocation to Tom Norton, Senior Vice
President, Human Resources, at 10990 Wilshire Blvd., Los Angeles, CA 90024. For such revocation to
be effective, written notice must be actually received by Mr. Norton no later than the close of
business on the seventh calendar day after you sign this letter. If you revoke this Agreement, it
shall not be effective or enforceable and you will not receive the payments or benefits described
in this Agreement.

General Release And Related Provisions: You recognize and agree that the benefits
described in this Agreement are greater than and are provided in place of, any benefits that you
would have received upon separation from employment with the Company had you not chosen to enter
into this Agreement.

In consideration of the benefits, payments and promises specified in this Agreement, and for other
good and valuable consideration, the receipt and adequacy of which you hereby acknowledged, you, on
your own behalf, and on behalf of your heirs, assigns, executors, administrators, and agents, past
and present (collectively, the “Your Affiliates”), hereby fully and without limitation release,
covenant not to sue, and forever discharge the Company and its subsidiaries, divisions, affiliates,
trustees, directors, officers, agents, attorneys, insurers, employees, stockholders, members,
representatives, assigns and successors, past and present, (the “Company Releasees”), both
individually and collectively, of and from any and all rights, claims, demands, liabilities,
actions and causes of action whether in law or in equity suits, damages, losses, workers’

 

 

Mr. Raymond P. Silcock

December 16, 2009

Page 3

compensation claims, attorneys’ fees, costs, and expenses, of whatever nature whatsoever, known or
unknown, fixed or contingent, suspected or unsuspected (“Claims”), that you or the Your Affiliates
now have, or may ever have, against the Company or any of the Company Releasees that arise out of,
or are in any way related to: (i) your employment by the Company or any of the Company Releasees;
(ii) the conclusion of your employment with the Company or any of the Company Releasees; and (iii)
any transactions, occurrences, acts or omissions by the Company or any of the Company Releasees
occurring prior to the date you execute this Agreement.

Without limiting the generality of the foregoing, you acknowledge and agree that the general
release contained in this Agreement applies to: any and all Claims you or Your Affiliates now have,
or may ever have, against the Company and any of the Company Releasees that arise out of or are in
any way related to Section 1981 of the Civil Rights Act of 1966, Title VII of the Civil Rights Act
of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Family
and Medical Leave Act of 1993, the California Fair Employment and Housing Act, the California
Family Rights Act; any Claim under any other federal, state or local law or regulation; any Claim
for severance pay, bonus or incentive pay, sick leave, holiday pay, vacation pay, life insurance,
health or medical insurance or any other fringe benefit, medical expenses, or disability (except
that such release shall not constitute a release of any Company obligation to you upon the
Company’s receipt of this release as set forth herein); and any Claim arising under federal, state
or local common law, including Claims for breach of contract, fraud; misrepresentation, unfair
competition, unfair business practices, false advertising, negligence, defamation, infliction of
emotional distress, invasion of privacy, assault; battery, false imprisonment and wrongful
termination.

You also acknowledge and agree that as of the date you executed this Agreement, you have been paid
for all wages due and owing to you as a result of your employment by the Company, and that you have
been paid for all business and other expenses for which you are entitled to reimbursement from the
Company.

You also represent that you have not heretofore assigned or transferred to any person or entity,
other than the Company, any released matter or any part or portion thereof and that you will
defend, indemnify and hold harmless the Company and the aforementioned Releasees from and against
any claim (including the payment of attorney’s fees and costs actually incurred whether or not
litigation is commenced) that is directly or indirectly based on or in connection with or arising
out of any such assignment or transfer made, purported or claimed.

Civil Code Section 1542 Waiver: You acknowledge and agree that you are aware of and
familiar with the provisions of Section 1542 of the California Civil Code, which provides as
follows:

“A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of execution of the release, which
if known by him or her must have materially affected his or her settlement with the
debtor.”

By executing this Agreement, you waive and relinquish any and all rights and benefits you may have
under Section 1542 of the California Civil Code, or the law of any other state or jurisdiction, or
common law principle, to the same or similar effect. You further acknowledge that this was
bargained for separately, and that the general release provisions contained in this Agreement shall
be given full force and effect in accordance with each and all of their express terms and
provisions, including those terms and provisions relating to unknown or unsuspected claims.

Non-Admission Of Liability: This Agreement shall constitute a compromise of, and full
accord

 

 

Mr. Raymond P. Silcock

December 16, 2009

Page 4

and satisfaction of, doubtful and disputed claims. This Agreement shall not be treated as an
admission of liability by you, the Company or the Company Releasees at any time, for any purpose.
This Agreement shall not be offered into evidence, admitted into evidence, or used in any other way
in any proceeding, except a proceeding between the parties to enforce or interpret its terms.

Confirmation of Indemnification: Consistent with Delaware law and the Company’s
Certificate of Incorporation, the Company shall defend, indemnify, and hold you harmless from any
third party claim relative to any of your acts or omissions during your employment that fall within
the course and scope of your employment.

Confidentiality and Non-Disparagement: You agree that the facts relating to the existence
of this Agreement, the negotiations leading to the execution of this Agreement, and the terms of
this Agreement shall be held in confidence, and shall not be disclosed, communicated, offered into
evidence in any legal proceeding, or divulged to any person other than those who must perform tasks
to effectuate this Agreement. Notwithstanding the foregoing, nothing in this Agreement shall
preclude (i) the Company from making any disclosures that it deems appropriate to its auditors, its
legal counsel or any governmental authority (including, but not limited to, public disclosures in
filings with the Securities and Exchange Commission) or (ii) you or the Company from disclosing the
terms of this Agreement (A) to those persons to whom disclosure is necessary for the preparation of
tax returns and other financial reports, (B) for purposes of obtaining of legal advice, (C) to the
extent required by law or (D) to the extent required by orders issued by any court or agency of
competent jurisdiction.

During the performance of your duties as Executive Vice President and Chief Financial Officer, you
received or were entrusted with information of a confidential, secret or proprietary nature. You
agree not to disclose or use, at any time hereafter, any such information which is not otherwise
publicly available. Accordingly, you will not make any public statements concerning the Company,
the Company Affiliates or your employment unless you have first received the
advance written consent of the Company. You and Your Affiliates further agree that you will not
disparage or demean the Company or any of the Company Releasees in any way. The Company agrees
that its Executive Officers and your former direct reports shall not disparage or demean you in any
way.

You acknowledge and agree that you have not retained, and have returned, or shall returned to the
Company within 10 days after execution of this Agreement, any and all documents, emails and any
Company property in your possession, custody or control that relates in any way to the Company or
its business operations, or that you obtained from the Company during your employment.

As further consideration for the economic benefits described herein, you agree that for a period
until December 14, 2010, you will not employ nor seek to employ any person employed by KB HOME or
any of their affiliates or subsidiaries.

Section 409A: The parties intend that the payments, benefits and reimbursements that you
may become entitled to receive pursuant to this Agreement either be exempt from or comply with
Section 409A of the Internal Revenue Code and the regulations and guidance promulgated thereunder.
For purposes of the foregoing, to the extent applicable, each salary continuation payment that you
receive hereunder (if any) shall be treated as a separate payment and not as one of a series of
payments treated as a single payment for purposes of Treasury Regulation Section
1.409A-2(b)(2)(iii).

Additional Terms: By executing this Agreement where indicated below, you further
acknowledge and agree as follows:

 

 

Mr. Raymond P. Silcock

December 16, 2009

Page 5

Resignation From All Positions: Your employment with the Company ended on December
14, 2009 and that you have resigned from any and all officer designations and other
positions you held at any time in the Company and any of the Company Affiliates.

Transition. You shall cooperate in good faith with the Company in the orderly
transfer of your responsibilities to other Company officers and employees.

Defense. You shall cooperate in good faith with the Company, its attorneys, or at
the Company’s request in writing, its independent auditors, with respect to any current or
future agency or administrative investigation, as well as in the defense of any action that
has been or will be brought against the Company about which you have or may have knowledge
as a result of your employment by the Company. You acknowledge and agree that you have a
continuing obligation to maintain in confidence all attorney-client privileged
communications, as well as all attorney work product. You further agree that you shall
notify Tom Norton in writing and in advance in the event you are informally requested, or
formally noticed, subpoenaed or otherwise demanded or compelled to provide testimony or
evidence with respect to the Company. You agree to cooperate with the Company, to meet with
the Company’s attorneys and, where appropriate, to be represented by the Company’s attorneys
with respect to each such informal and formal request.

Breach of Confidentiality, Non-Disparagement and Defense Sections. You agree that
your
breach of the Confidentiality and Non-Disparagement and Defense Sections shall entitle the
Company to immediately stop any remaining Salary Continuation payments or to seek any and
all available damages under California law at the Company’s sole election.

Taxing Authorities. If KB Home is contacted by governmental taxing authorities, you
shall reasonably cooperate with KB Home and the governmental taxing authority by providing
all information requested by the governmental taxing authority, including but not limited to
providing a completed Form 4669.

Successors And Assigns. This Agreement shall be binding upon and shall inure to the
benefit of the respective heirs, assigns, executors, administrators, successors,
subsidiaries, divisions and affiliated corporations and partnerships, past and present, and
trustees, directors, officers, shareholders, partners, agents and employees, past and
present, of you and the Company.

Ambiguities. The parties have had a full opportunity to negotiate the terms and
conditions of this Agreement. Accordingly, the parties expressly waive any common-law or
statutory rule of construction that ambiguities should be construed against the drafter of
this Agreement, and agree, covenant, and represent that the language in all parts of this
Agreement shall be in all cases construed as a whole, according to its fair meaning.

Integration. Except for the FY2009 Bonus Payment set forth above, the parties agree
that the Company’s September 1, 2009 offer letter to you (the “Offer Letter”), and the terms
it contains, shall be extinguished, and shall be of no further force or effect for any
purpose on and after December 14, 2009.

Reimbursements. Notwithstanding the foregoing, if you incurred any expenses
referenced in the Offer Letter under the heading “Relocation Expenses” or any of the
expenses identified below, the Company shall reimburse such expenses provided that you
submit to

 

 

Mr. Raymond P. Silcock

December 16, 2009

Page 6

the Company a receipt for any such expense (or, in the absence of a receipt, such other
documentation as the Company may require) by January 31, 2010. Any such reimbursement shall
be paid to you within 30 days of the Company’s receipt of documentation of the applicable
expense. In particular, you agree to assign and the Company agrees to assume effective
January 1, 2010, the balance of your Los Angeles area apartment lease, which you represent
and warrant has no more than twelve (12) remaining months of lessee rental obligation. You
further represent and warrant that the apartment is in good and habitable condition and that
any damage to the apartment during your possession is and shall be your sole responsibility.
The Company shall reimburse your first month and last month’s rent (total of $18,000.00)
within thirty (30) days of the execution of this agreement. The Company shall reimburse or
otherwise arrange for return of your security deposit ($9,000.00) at sublet or the end of
the lease term, whether by expiration or termination.

Further, the Company agrees to reimburse the following on a gross-up basis for any of the
below items that are taxable:

	 	a.	 	Short term apartment rental — approximately $19,620.
	 
	 	b.	 	Shipping of household goods — from CT to CA — approximately $14,295.
	 
	 	c.	 	Miscellaneous transportation, etc. — approximately $1,000.

Anticipated expenses to return furniture and other personal items to CT from CA:

	 	d.	 	Packing and shipping of household goods — estimate $20,000.
	 
	 	e.	 	Shipping of automobile — estimate $2,000.

Entire Understanding. This Agreement constitutes the entire understanding of the
parties on the subjects covered. There is no other agreement, written or oral, express or
implied, between you and the Company with respect to the subject matter hereof. This
Agreement may not be orally modified. This Agreement may only be modified in a written
instrument signed by both parties.

Captions. The captions and section numbers in this Agreement are inserted for the
readers’ convenience, and in no way define, limit, construe or describe the scope or intent
of the provisions of this Agreement.

Knowing And Voluntary Agreement. You expressly warrant that you have read and fully
understand the terms of this letter; and have had the terms of the agreement fully explained to
you; that you are not signing this letter based on any representations other than those contained
in this letter; and that you are signing this letter voluntarily, and without reservation. By
signing this Agreement where indicated below, you acknowledge that have entered into this Agreement
without coercion or duress of any kind; that you have not relied on any representations, promises
or statements not expressly contained in this Agreement; and that they understand any rights that
they have or may have and sign this Agreement with full knowledge of any such rights.

 

 

Mr. Raymond P. Silcock

December 16, 2009

Page 7

Please sign below to indicate your acceptance of the terms of this Agreement. Please return one
original to Tom Norton and retain one original for your records.

Sincerely,

	 	 	 	 	 
	 	 	 
	/s/ Jeffrey T. Mezger
 	 	  	 
	Jeffrey T. Mezger 	 	 	 
	President and Chief Executive Officer

KB HOME 	 	 	 
	 

ACKNOWLEDGMENT AND AGREEMENT

I have read the foregoing agreement and accept and agree to all of the provisions it contains. I
understand that this Agreement contains a general release of known and unknown claims arising out
of my employment with the Company, and execute this agreement, knowingly and voluntarily, and with
full understanding of its consequences.

	 	 	 
	 
	 	/s/ Raymond P. Silcock
	 
	 	 
	Dated: 12/18/09
	 	Raymond P. Silcock

 

 

December 18, 2009

Mr. Raymond P. Silcock

Dear Ray:

Notwithstanding the December 16, 2009 Separation Agreement (the “Separation Agreement”) entered
into between KB Home and Ray Silcock, the Company confirms the following:

1) The Company’s commitment to continue medical insurance pursuant to the Separation Agreement
includes coverage under the Company’s Medical Executive Reimbursement plan.

2) With respect to your cooperation under the Defense, Transition, and Taxing Authorities sections
of the Separation Agreement, the Company agrees to pay your promptly submitted, reasonable and
necessary expenses as pre-approved and authorized by Tom Norton, SVP, HR or Dave Simons, Vice
President and Assistant General Counsel.

3) The payments described under the Salary Continuation section of the Separation Agreement are
intended to be exempt as a “separation pay plan” within the meaning of Treas. Reg. Section
1.409.A-1(b)(9) and the payment described under the heading “FY09 Bonus Payment” is intended to be
exempt as a short-term deferral, as described in Treas. Reg. Section 1.409A-1(b)(4).

4) The Company will not take the position that the FY 2009 Incentive Compensation Payment in the
Separation Agreement will not be paid due to Mr. Silcock not being employed by the Company at the
payment date, currently expected on before February 5, 2010 (but in no event later than March 15,
2010).

Very truly yours,

	 	 	 	 	 
	/s/ Thomas F. Norton
 	 
	Thomas F. Norton 	 	 	 
	Senior Vice President, Human Resources

KB HOMEexh41.htm

    Exhibit
4.1

    

    

    
      	
              Number

            	 
      	
              Shares

            
	 
      	
              SURNA
      INC.

            	 
      
	 
      	
              INCORPORATED
      UNDER THE LAWS OF THE STATE OF NEVADA

            	 
      
	 
      	
              100,000,000
      SHARES COMMON STOCK AUTHORIZED,

            	 
      
	 
      	
              $0.00001
      PAR VALUE

            	 
      
	 
      	 
      	 
      
	 
      	 
      	
              CUSIP
      _______

            
	 
      	 
      	
              SEE
      REVERSE

            
	 
      	 
      	
              FOR

            
	
              This

            	 
      	
              CERTAIN

            
	
              certifies

            	 
      	
              DEFINITIONS

            
	
              that

            	 
      	 
      
	
              is
      the owner of

            	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              FULLY
      PAID AND NON-ASSESSABLE

            	 
      
	 
      	
              SHARES
      OF COMMON STOCK OF

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              SURNA
      INC.

            	 
      
	 
      	
              transferable
      on the books of the corporation in person or by duly

            	 
      
	 
      	
              authorized
      attorney upon surrender of this certificate properly

            	 
      
	 
      	
              endorsed.  This
      certificate and the shares represented hereby

            	 
      
	 
      	
              are
      subject to the laws of the State of Nevada, and to the

            	 
      
	 
      	
              Articles
      of Incorporation and Bylaws of the Corporation,

            	 
      
	 
      	
              as
      now or hereafter amended.  This certificate is not
      valid

            	 
      
	 
      	
              unless
      countersigned by the Transfer Agent.  WITNESS

            	 
      
	 
      	
              the
      facsimile seal of the Corporation and the signature

            	 
      
	 
      	
              of
      its duly authorized officers

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              PRESIDENT

            	
              [SEAL]

            	
              SECRETARY

            

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The following abbreviations, when used
in the inscription on the face of this certificate, shall be construed as though
they were written out in full according to applicable laws or
regulations.

    

    
      	
              TEN
      COM

            	
              as
      tenants in common

            	
              UNIF
      GIFT MIN ACT

            	
              _______________________

            	
              Custodian

            	
              ____________________

            
	
              TEN
      ENT

            	
              as
      tenants by the entireties

            	 
      	
              (Cust)

            	 
      	
              (Minor)

            
	
              JT
      TEN

            	
              as
      joint tenants with the right of

            	
              Act

            	
              _________________________________________________________

            
	 
      	
              survivorship
      and not as tenants

            	 
      	
              (State)

            
	 
      	
              in
      common

            	 
      	 
      

    

    

    Additional
abbreviations may also be used though not in the above list.

    

    
      	
              For value received,
      _______________________________________________________________________________________________________
      hereby sell, assign and
      transfer unto

            
	 
      	
              PLEASE
      INSERT SOCIAL SECURITY OR OTHER

            	 
      
	 
      	
              IDENTIFYING
      NUMBER OF ASSIGNEE

            	 
      
	 
      
	
              _____________________________________________________________________________________________________________________________________________________

            
	
              (PLEASE
      PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE OF
      ASSIGNEE)

            
	 
      
	
                    
                _____________________________________________________________________________________________________________________________________________________

              

            
	 
      
	
                    
                _____________________________________________________________________________________________________________________________________________________

              

            
	 
      
	
                    
                _____________________________________________________________________________________________________________________________________________________

              

            
	 
      
	
                    
                _____________________________________________________________________________________________________________________________________________________
shares of the capital stock
      represented by the within Certificate, and do hereby irrevocably
      constitute and appoint

            
	 
      
	
                    
                ____________________________________________________________________________________________________________________________________________________,
      Attorney to transfer the
      said stock on the books of the within named Corporation with full power of
      substitution in the premises.

              

            
	 
      
	
              Dated
      _______________________

            
	 
      
	
              X
      ________________________________________________________________________________

            
	
              THE
      SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON
      THE FACE OF 

              THIS
      CERTIFICATE IN EVERY PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT OR ANY
      CHANGE 

              WHATSOEVER.  THE
      SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION
      

              (Banks,
      Stockbrokers, Savings and Loan Associations and Credit
    Unions)

            

    

    

    

    

    SIGNATURE
GUARANTEED:

    

    

    

    

    

    TRANSFER
FEE WILL APPLY

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