Document:

EX-10(D)

 

Exhibit 10(d)

December 14, 2006

Lincoln Electric Holdings, Inc.

The Lincoln Electric Company

22801 Saint Clair Avenue

Cleveland, OH 44117-1199

Attention: Chief Financial Officer

	 	 	 
	Re:

	 	Amendment to Amended and Restated Note Purchase

and Private Shelf Agreement dated as of April 30, 2002

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Note Purchase and Private Shelf
Agreement dated as of April 30, 2002 among Lincoln Electric Holdings, Inc., an Ohio corporation
(“Holdings”) and The Lincoln Electric Company, an Ohio corporation (the “Company”, and, together
with Holdings hereinafter referred to individually as an “Obligor” and collectively as the
“Obligors”), The Prudential Insurance Company of America and each Prudential Affiliate which may
become a party thereto in accordance with the terms thereof, pursuant to which the Obligors issued
and sold and Prudential purchased the Obligors’ 8.73% senior Notes. The Obligors’ 8.73% senior
Notes matured on November 26, 2003. Currently, there are no Shelf Notes outstanding under the
Agreement. The parties hereto wish to extend the Issuance Period and to amend the Agreement in
certain other respects. Capitalized terms used herein and not otherwise defined herein shall have
the meanings assigned to such terms in the Agreement.

     Pursuant to the request of the Obligors and in accordance with the provisions of Section 17 of
the Agreement, the parties hereto agree as follows:

     SECTION 1. Amendment. From and after the date this letter becomes effective in accordance
with its terms, the Agreement is amended as follows:

     1.1 The cover page to the Agreement is hereby amended to delete in its entirety the reference
to “8.73% Senior Notes due November 26, 2003” appearing therein and to substitute therefore a
reference to “$100,000,000”.

     1.2 Section 1A, Section 2A and Exhibit A-1 are hereby deleted in their entirety.

     1.3 Section 2B(2)(i) of the Agreement is amended to delete in its entirety

 

 

Lincoln Electric

December 14, 2006

Page 2

clause
(i) thereof and to substitute therefore the following:
“(i) December 14, 2009 (or if
such date is not a Business Day, the Business Day next preceding such date) and”.

     1.4 The Obligors and Prudential (as such term is defined in the Agreement after giving effect
to this letter) expressly agree and acknowledge that as of the date hereof the Available Facility
Amount is $100,000,000. NOTWITHSTANDING THE FOREGOING, THIS AMENDMENT AND THE AGREEMENT HAVE BEEN
ENTERED INTO ON THE EXPRESS UNDERSTANDING THAT NEITHER PRUDENTIAL NOR ANY PRUDENTIAL AFFILIATE (AS
SUCH TERM IS DEFINED IN THE AGREEMENT AFTER GIVING EFFECT TO THIS LETTER) SHALL BE OBLIGATED TO
MAKE OR ACCEPT OFFERS TO PURCHASE SHELF NOTES, OR TO QUOTE RATES, SPREADS OR OTHER TERMS WITH
RESPECT TO SPECIFIC PURCHASES OF SHELF NOTES, AND THE FACILITY SHALL IN NO WAY BE CONSTRUED AS A
COMMITMENT BY PRUDENTIAL OR ANY PRUDENTIAL AFFILIATE.

     1.5 Section 10 of the Agreement is amended by inserting the following new Section 10.9
immediately after Section 10.8:

        “10.9. Terrorism Sanction Regulations. The Obligors will not, and will not permit
any Restricted Subsidiary, to (i) become a Person described or designated in the Specially
Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control or in
Section 1 of the Anti-Terrorism Order or (ii) engage in any dealings or transactions with
any such Person, to the extent that such dealings or transactions violate any provision of
any statute or other rule or regulation of any applicable Governmental Authority.”

     1.6 Section 5.16 of the Agreement is amended and restated by deleting Section 5.16 in its
entirety and substituting therefore the following:

        “5.16. Foreign Assets Control Regulations, etc. (a) Neither the sale of the Notes
by the Obligors hereunder nor their use of the proceeds thereof will violate the Trading
with the Enemy Act, as amended, or any of the foreign assets control regulations of the
United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any
enabling legislation or executive order relating thereto.

        (b) Neither the Obligors nor any of their Restricted Subsidiaries (i) is a Person
described or designated in the Specially Designated Nationals and Blocked Persons List of
the Office of Foreign Assets Control or in Section 1 of

 

 

Lincoln Electric

December 14, 2006

Page 3

the Anti-Terrorism Order or (ii)
engages in any dealings or transactions with any such Person, to the extent that such dealings or transactions violate any provision
of any applicable statute or other rule or regulation of any Governmental Authority. The
Obligors and the Restricted Subsidiaries are in compliance, in all material respects,
with the USA Patriot Act, to the extent applicable to the Obligors and the Restricted
Subsidiaries.

        (c) No part of the proceeds from the sale of the Notes hereunder will be used,
directly or indirectly, for any payments to any governmental official or employee,
political party, official of a political party, candidate for political office, or anyone
else acting in an official capacity, in order to obtain, retain or direct business or
obtain any improper advantage, in violation of the United States Foreign Corrupt Practices
Act of 1977, as amended, to the extent applicable to the Obligors.”

     1.7 Section 6.2 of the Agreement is amended and restated in its entirety to read as follows:

        “6.2. Source of Funds. At least one of the following statements is an accurate
representation as to each source of funds (a “Source”) to be used by such Purchaser to pay
the purchase price of the Notes to be purchased by such Purchaser hereunder:

            (a) the Source is an “insurance company general account” (as the term is
defined in the United States Department of Labor’s Prohibited Transaction Exemption
(“PTE”) 95-60) in respect of which the reserves and liabilities (as defined by the
annual statement for life insurance companies approved by the National Association
of Insurance Commissioners (the “NAIC Annual Statement”)) for the general account
contract(s) held by or on behalf of any employee benefit plan together with the
amount of the reserves and liabilities for the general account contract(s) held by
or on behalf of any other employee benefit plans maintained by the same employer
(or affiliate thereof as defined in PTE 95-60) or by the same employee organization
in the general account do not exceed 10% of the total reserves and liabilities of
the general account (exclusive of separate account liabilities) plus surplus as set
forth in the NAIC Annual Statement filed with such Purchaser’s state of domicile;
or

            (b) the Source is a separate account that is maintained solely in connection
with such Purchaser’s fixed contractual obligations under which the amounts
payable, or credited, to any employee benefit plan  (or

 

 

Lincoln Electric

December 14, 2006

Page 4

its related trust) that has
any interest in such separate account (or to any
 participant or beneficiary of such plan (including any annuitant)) are not
affected in any manner by the investment performance of the separate account; or

            (c) the Source is either (i) an insurance company pooled separate account,
within the meaning of PTE 90-1 or (ii) a bank collective investment fund, within
the meaning of the PTE 91-38 and, except as disclosed by such Purchaser to the
Obligors in writing pursuant to this clause (c), no employee benefit plan or group
of plans maintained by the same employer or employee organization beneficially owns
more than 10% of all assets allocated to such pooled separate account or collective
investment fund; or

            (d) the Source constitutes assets of an “investment fund” (within the meaning
of Part V of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional
asset manager” or “QPAM” (within the meaning of Part V of the QPAM Exemption), no
employee benefit plan’s assets that are included in such investment fund, when
combined with the assets of all other employee benefit plans established or
maintained by the same employer or by an affiliate (within the meaning of Section
V(c)(1) of the QPAM Exemption) of such employer or by the same employee
organization and managed by such QPAM, exceed 20% of the total client assets
managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are
satisfied, neither the QPAM nor a person controlling or controlled by the QPAM
(applying the definition of “control” in Section V(e) of the QPAM Exemption) owns a
5% or more interest in either Obligor and (i) the identity of such QPAM and (ii)
the names of all employee benefit plans whose assets are included in such
investment fund have been disclosed to the Obligors in writing pursuant to this
clause (d); or

            (e) the Source constitutes assets of a “plan(s)” (within the meaning of
Section IV of PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset
manager” or “INHAM” (within the meaning of Part IV of the INHAM exemption), the
conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither
the INHAM nor a person controlling or controlled by the INHAM (applying the
definition of “control” in Section IV(h) of the INHAM Exemption) owns a 5% or more
interest in either Obligor and (i) the identity of such INHAM and (ii) the name(s)
of the employee benefit plan(s) whose assets

 

 

Lincoln Electric

December 14, 2006

Page 5

constitute the Source have been
disclosed to the Obligors in writing pursuant to this clause (e); or

            (f) the Source is a governmental plan; or

            (g) the Source is one or more employee benefit plans, or a separate account or
trust fund comprised of one or more employee benefit plans, each of which has been
identified to the Obligors in writing pursuant to this clause (g); or

            (h) the Source does not include assets of any employee benefit plan, other
than a plan exempt from the coverage of ERISA.

        As used in this Section 6.2, the terms “employee benefit plan”, “governmental plan”,
and “separate account” shall have the respective meanings assigned to such terms in Section
3 of ERISA.”

     1.8 Section 10.7 of the Agreement is amended by adding the following at the end of subsection
10.7(k)(v) thereof between the reference to “Net Worth” and the period (“.”) at the end of Section
10.7(k)(v):

        “; provided that, without the prior written consent of the Required Holders, the
primary credit facilities of each Obligor shall not become secured by Liens in reliance on
this clause (v)”

     1.9 The Agreement (and each of its Schedules and Exhibits) is amended by replacing each
reference to “The Prudential Insurance Company of America” with a reference to “Prudential
Investment Management, Inc.”

     1.10 Schedule B of the Agreement is amended by adding, or amending and restating, as
applicable, the following definitions:

        “Anti-Terrorism Order” shall mean Executive Order No. 13224 of September 24, 2001,
Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit
or Support Terrorism, 66 U.S. Fed. Reg. 49, 079 (2001), as amended.

        “Prudential” shall mean Prudential Investment Management, Inc.

 

 

Lincoln Electric

December 14, 2006

Page 6

        “Prudential Affiliate” shall mean (i) any other Person directly or indirectly
controlling, controlled by, or under direct or indirect common control with Prudential and
(ii) any managed account, investment fund or other vehicle for
which Prudential or any Prudential Affiliate described in clause (i) acts as investment
advisor or portfolio manager. A Person shall be deemed to control a corporation if such
Person possesses, directly or indirectly, the power to direct or cause the direction of the
management and policies of such corporation, whether through the ownership of voting
securities, by contract or otherwise.

        “USA Patriot Act” shall mean United States Public Law 107-56, Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and
regulations promulgated thereunder from time to time in effect.

     1.11 Exhibit A-2 (Form of Shelf Note) to the Agreement is amended by replacing each reference
to “the Bank of New York” with a reference to “JPMorgan Chase Bank, National Association”.

     SECTION 2. Representation and Warranty. The Obligors hereby represent and warrant that no
Default or Event of Default exists under the Agreement as of the date hereof.

     SECTION 3. Assumption. From and after the date this letter becomes effective in accordance
with its terms, Prudential Investment Management, Inc. (“PIM”) hereby assumes from The Prudential
Insurance Company of America each of the rights and obligations of “Prudential” under the
Agreement. It being understood and agreed that (a) neither The Prudential Insurance Company of
America nor any other holder of Notes is hereby assigning any portion of their interests in their
respective Notes to PIM and (b) The Prudential Insurance Company of America and each other holder
of Notes hereby retain all of their rights, powers, remedies and privileges conferred upon a holder
of Notes under the Agreement.

     SECTION 4. Conditions Precedent. This letter shall be deemed effective as of the date hereof
upon the return to PIM on or before December 31, 2006 of a counterpart hereof duly executed by the
Obligors and Prudential. Upon execution hereof by the Obligors, this letter should be returned to:
Prudential Capital Group, Two Prudential Plaza, Suite 5600, Chicago, Illinois 60601, Attention:
Scott B. Barnett.

 

 

Lincoln Electric

December 14, 2006

Page 7

     SECTION 5. Reference to and Effect on Agreement. Upon the effectiveness of this letter, each
reference to the Agreement and the Notes in any other document, instrument or agreement shall mean
and be a reference to the Agreement and the Notes as modified by this letter. Except as
specifically set forth in Section 1 hereof, the Agreement shall remain in full force and effect and
is hereby ratified and confirmed in all respects.

     SECTION 6. Governing Law. THIS LETTER SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE OF NEW YORK (EXCLUDING ANY
CONFLICTS OF LAW RULES WHICH WOULD OTHERWISE CAUSE THIS LETTER TO BE CONSTRUED OR ENFORCED IN
ACCORDANCE WITH, OR THE RIGHTS OF THE PARTIES TO BE GOVERNED BY, THE LAWS OF ANY OTHER
JURISDICTION).

     SECTION 7. Counterparts; Section Titles. This letter may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which taken together shall
constitute but one and the same instrument. Delivery of an executed counterpart of a signature
page to this letter by facsimile or other electronic transmission shall be effective as delivery of
a manually executed counterpart of this letter. The section titles contained in this letter are
and shall be without substance, meaning or content of any kind whatsoever and are not a part of the
agreement between the parties hereto.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	PRUDENTIAL INVESTMENT

MANAGEMENT, INC.
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	/s/ Tan Vu
	 

	 	 	 	 
	 	 	Name: Tan Vu
	 	 	Title: Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	THE PRUDENTIAL INSURANCE COMPANY

  OF AMERICA
	 
	 	 	 	 
	 

	 	By:	 	/s/ Tan Vu
	 

	 	 	 	 
	 	 	Name: Tan Vu
	 	 	Title: Vice President

 

 

Lincoln Electric

December 14, 2006

Page 8

	 	 	 	 	 
	Agreed and Accepted:	 	 
	 
	 	 	 	 
	LINCOLN ELECTRIC HOLDINGS, INC.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Vincent K. Petrella
	 

	 	 	 	 
	Name: Vincent K. Petrella	 	 
	Title: Senior Vice
President and Chief Financial Officer	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	THE LINCOLN ELECTRIC COMPANY	 	 
	 
	 	 	 	 
	By:
	 	/s/ Paul R. Klingensmith	 	 
	 

	 	 	 	 
	Name: Paul R. Klingensmith	 	 
	Title: TreasurerEX-10(A)

 

Exhibit 10(a)

February 16, 2007

Matthew S. Lewis

CheckFree Corporation

4411 East Jones Bridge Road

Norcross, GA 30092

Dear Matt:

Your employment with CheckFree Corporation and CheckFree Services Corporation, together with their
parent and subsidiaries (“CheckFree”) will terminate on February 23, 2007. Effective as of
February 23, 2007, you will cease to be an Executive Vice President of CheckFree Corporation, as
Executive Vice President and General Manager of CheckFree Services Corporation, or as an officer of
any CheckFree subsidiary, parent, affiliate, or related entity.

To assist with your transition, the following severance package will be available, contingent on
returning all company property, continuing professional performance and conduct, and completing and
returning the attached Separation Agreement and General Release document to Human Resources as
detailed below.

SEVERANCE PAY:

You will receive fifty-two (52) weeks of severance provided you sign and return the attached
Separation Agreement and General Release (“Release”) document within ten (10) days from this
notification, February 23, 2007. Payments will be made during the regular payroll cycle, which
would make the last payable day February 23, 2008; provided, however, that under no circumstances
will any severance payments be made beyond March 15, 2008. Your severance will not begin until
you execute the Release document. If you find subsequent employment during this severance period,
you must notify CheckFree. Your severance payments will end the pay period following your start
date of new employment.

BENEFITS:

Medical and Dental Coverage - If you have previously elected and are currently participating
in these programs, Medical and Dental will end on the last day of the pay period of your
severance payments. However, if you become eligible for other healthcare coverage during the
severance period, you must notify CheckFree. The healthcare benefits under CheckFree will
end the pay period following your effective date of new healthcare coverage.

 

 

Matthew W. Lewis

Page 2

February 16, 2007

You will receive an information package from Wausau regarding COBRA coverage. This
paperwork needs to be completed and returned as soon as possible, but no later than 60 days
from the date of Wausau’s notice. You have the option of discontinuing COBRA coverage at
anytime.

Life Insurance — Regular group term life insurance ends on your last day of active
employment. You may elect to convert your group life insurance coverage into an individual
policy. The forms necessary for electing conversion will be provided to you.

Supplemental Life Insurance — If you have elected the voluntary Supplemental Life
Insurance, it will also end on your last day of active employment. This benefit is
portable; therefore, if you wish to continue the Supplemental Life coverage you must
complete the forms provided to you.

401(k) Retirement Savings Plan - If you are currently enrolled in the 401(k) Plan, your
contributions to the Plan will end on your last day of active employment. The money you
have invested in the Plan will remain invested as you have previously directed, or you may
choose to have your funds distributed. To receive the necessary paperwork or for additional
information, please contact Sun Trust at 1-800-453-4015. You may want to consult a tax
accountant before electing a rollover or withdrawal of funds.

Flexible Spending Accounts - If you are participating in the Flexible Spending Account
program (healthcare or dependent), it will end on your last day of active employment. You
have 90 days after your termination date to submit expenses to UHC (incurred before your
termination date) for reimbursement.

Disability Insurance - Short-Term and Long-Term Disability coverage ends on your last day of
active employment.

Long-Term Care — Long-Term Care, if you have previously enrolled and are currently
participating, ends on your last day of active employment. This coverage is portable;
therefore, if you wish to continue Long-Term Care coverage you must complete the forms
provided to you.

Stock Purchase Plan — If you are participating in this plan, all contributions that have
not already been used to purchase shares will be returned to you with your final paycheck.
Other questions can be directed to Fidelity Stock Plan Services at
800-544-9354.

Employee Assistance Plan (EAP) — The EAP benefits will continue through the severance
period.

PC Purchase — PC loan repayments may continue through the severance period. The balance
however, must be paid in full before or with the last severance check.

 

 

Matthew W. Lewis

Page 3

February 16, 2007

Stock Options — Pursuant to CheckFree’s 1995 Stock Option Plan, your vested stock options,
if not exercised, will expire 30 days after your termination date from CheckFree. Pursuant
to CheckFree’s 2002 Stock Incentive Plan, your vested stock options, if not exercised, will
expire 90 days after your termination date from CheckFree. Please log in to your Fidelity
account on netbenefits.fidelity.com or contact a Fidelity Stock Plan Services Representative
at 1-800-544-9354 prior to expiration of the options. Options are deemed to be exercised
as of the date payment is received.

INDEMNIFICATION OBLIGATIONS:

CheckFree agrees and acknowledges that it will continue to abide by any and all indemnification
rights, obligations and agreements to which you are a party in accordance with their terms.

UNEMPLOYMENT:

You may be eligible for unemployment compensation based on the rules of the state in which you
live. Please contact the Georgia unemployment office.

CheckFree appreciates your efforts and wishes you success in future endeavors. Should you have any
additional questions, please contact Deborah N. Gable at (678) 375-1640.

Sincerely,

/s/ David E. Mangum

David E. Mangum

Executive Vice President and Chief Financial Officer

Attachments: Separation Agreement and General Release

 

 

Matthew W. Lewis

Page 4

February 16, 2007

CHECKFREE CORPORATION

INDIVIDUAL SEPARATION AGREEMENT AND GENERAL RELEASE

     THIS AGREEMENT AND GENERAL RELEASE (also referred to herein as “Agreement”) is made and
entered into by and between Matthew S. Lewis for himself or herself, his or her dependents, heirs,
executors, administrators, successors and assigns (hereinafter collectively referred to as
“Employee”) and CHECKFREE CORPORATION, CHECKFREE SERVICES CORPORATION, their subsidiaries, parents,
affiliates, and related entities, and their agents, employees, representatives, attorneys,
officers, directors, owners, insurers, successors, assigns, and employee benefit plans (hereinafter
collectively referred to as “Employer”).

W I T N E S S E T H

     Employee and Employer are terminating their employment relationship and desire to settle fully
and finally all differences between them which may arise out of or relate to Employee’s employment
with Employer and all other claims Employee has through the date of this Agreement.

     NOW THEREFORE, in consideration of the promises and releases herein contained, it is agreed as
follows:

1. In consideration of the promises undertaken and the releases given herein by Employee, Employer
agrees that, upon the execution of this Agreement, Employer will pay to Employee his or her salary
as severance pay through February 23, 2007, (“Severance Payment”) and other consideration set forth
in David Mangum’s February 16, 2007 Separation Letter; provided, however, that said Severance Payment will be paid in equal
payments on the regular, periodic pay days of Employer, and each individual check will be netted to
reflect all legally-required deductions. The Severance Pay will be paid at the same annual level
of salary as in effect as of the date of Employee’s receipt of this Agreement. Employee understands
that the Severance Pay is being offered as additional consideration for signing this Agreement and
that this is a benefit to which Employee would not have been entitled had Employee not signed this
Agreement.

2. In consideration for the promises made hereunder, Employee hereby fully, finally, and forever
releases, remises, waives, and discharges Employer of and from all claims, demands, actions, causes
of actions, suits, damages, losses and expenses, of any and every nature whatsoever, as a result of
any actions or omissions occurring through the effective date of this Agreement. Specifically
included in this release, remise, waiver and discharge are, among other things, any and all claims
for employment discrimination, harassment, and retaliation, any claims for alleged underpayment of
wages and employment benefits incurred during or as a result of the employment relationship between
Employee and Employer, and including, specifically, any claims arising from that employment
relationship or otherwise under the Age Discrimination in Employment Act, Title VII of the Civil
Rights Act of 1964, the Americans With Disabilities Act, the Employee Retirement Income Security
Act of 1974, the Fair Labor Standards Act, the Equal Pay Act, and 42 U.S.C. § 1981, or any other
federal, state or local statute, rule or regulation relating to employment rights, as well as any
claims for alleged wrongful discharge, negligence, intentional infliction of emotional distress,
breach of contract, fraud, or any other alleged unlawful behavior, conduct, or

	 
	 

	 

CheckFree Services Corporation

Individual Separation Agreement and General Release

CONFIDENTIAL

Page 4 of 10

 

 

Matthew W. Lewis

Page 5

February 16, 2007

omissions, the existence of which is denied by Employer. Additionally, Employee agrees to release,
remise, waive and discharge Employer of and from any and all of the aforementioned claims upon
which Employee may have a right to recover in any lawsuit brought by any other person on Employee’s
behalf or which includes Employee in any class. Specifically excluded from this release, remise,
waiver and discharge are any claims to enforce Employee’s rights pursuant to this Agreement and
David Mangum’s February 16, 2007 Separation Letter and the
severance payments, benefits
and indemnity agreements and obligations referenced therein.

3. Employee also agrees not to institute a lawsuit against Employer in regard to any claims,
demands, causes of action, suits, damages, losses and expenses, arising from acts or omissions made
by or before the date of execution of this Agreement, and Employee will ask no other person or
entity to initiate such a lawsuit on his or her behalf. Further, Employee agrees that if he or she
has already instituted a suit or an administrative complaint or charge in regard to any such
claims, he or she will immediately withdraw or dismiss such suit, complaint or charge. Nothing in
the above release, remise, or waiver and discharge, however, is intended to waive any of the
Employee’s entitlement to any already-vested benefits under any applicable pension plan.

4. Employee affirms his or her obligations under the Confidentiality and Noncompetition Agreement,
or other applicable agreement which is attached hereto as Attachment A, to keep all proprietary
information of Employer confidential, to refrain from solicitation of Employer’s employees, and to
refrain from competing with Employer in the manner and for the period as provided thereunder.
Employee further states in accordance with Employee’s existing and continuing obligations to
Employer that Employee has returned or will immediately return to Employer, on or before Employee’s
termination date, all property of Employer, including, but not limited to, files, records, computer
access codes, and computer programs, instruction manuals, business plans, and other property,
including, computers, computer equipment and peripherals, pagers, cell phones and security access
badges which Employee obtained, retained, prepared or helped to prepare in connection with
Employee’s employment with Employer. If Employee does not return such property, Employer shall be
entitled to offset its value against any payments due Employee hereunder.

5. Employee affirms his or her obligations under the Associate PC Purchase Loan Agreement (PC Loan)
to repay Employer, if applicable, and hereby authorizes Employer to deduct the amount outstanding
under the PC Loan from amounts due to him or her hereunder.

6. The parties agree that following the termination of Employee’s employment with Employer they
will refrain from making negative comments about, or otherwise disparaging, the other,
specifically, the Employee agrees not to make negative comments about or disparage any of the
Employer’s products or services to the general public, clients or potential clients and/or
employees of Employer.

7. This Agreement shall not be construed as an admission by Employer of any liability, or any acts
of wrongdoing, or the violation of any federal, state or local law, ordinance or regulation, nor
shall it be considered as evidence of any such alleged liability, wrongdoing, or violation of any
federal, state or local law, ordinance or regulation.

	 
	 

	 

CheckFree Services Corporation

Individual Separation Agreement and General Release

CONFIDENTIAL

Page 5 of 10

 

 

Matthew W. Lewis

Page 6

February 16, 2007

8. Except as set forth herein, Employer and Employee agree, as a matter of current and specific
intent, that this Agreement terminates all aspects of the relationship between them for all time,
except as specifically referenced in this Agreement and David Mangum’s February 16, 2007 Separation
Letter and as follows: Employee may seek further employment with Employer, but Employee
acknowledges that Employer has no legal or equitable obligation whatsoever to hire Employee for
reinstatement, employment, re-employment, consulting or other similar status. Further, if Employee
is hired, reinstated or offered consulting, Employer shall have, after the Employee’s new start
date, no further obligation to pay the Employee any remaining amount of the Severance Payment. If
the Employee is offered further employment, after the Employee’s new start date Employee recognizes
that his or her relationship with the Employer shall be an ‘at will’ relationship and, further, the
Employer is not restricted from terminating Employee’s employment for cause.

9. The nature and terms of this Agreement are strictly confidential and shall not be disclosed by
Employee at any time to any person other than his or her lawyer and accountants without the prior
written consent of Employer, except as necessary in any legal proceedings brought to enforce the
provisions and terms of this Agreement, to prepare and file income tax returns, or pursuant to
court order after a notice to Employer. If either Employer or Employee are asked about the
termination of the relationship by parties outside Employer’s group of employees and agents who
have a legitimate business reason to know of the terms hereof, they will respond only to confirm
the Employee’s dates of employment and the Employee’s position title.

10. This Agreement shall be interpreted, enforced, and governed under the laws of the State of
Georgia. Its provisions are severable, and if any part of the Agreement is found to be
unenforceable, the remainder of the Agreement will continue to be valid and effective.

11. Employee affirms that the only consideration received by Employee for entering into this
Agreement is as stated herein and in David Mangum’s February 16, 2007 Separation Letter, and that
no other promise, representation or agreement of any kind whatsoever has been made to, or relied
upon by, Employee in connection with Employee’s execution of this Agreement. Employee further
acknowledges that he or she has read the entire Agreement and fully understands the meaning and
intent of the Agreement, including, but not limited to, its final and binding effect in relation to
the general release of all claims.

12. Employee further acknowledges that he or she has been advised by Employer to consult with an
attorney in connection with this Agreement. Employee further acknowledges that he or she was given
at least forty-five (45) days from the time he or she first received this Agreement within which to
consider whether to sign it. Additionally, Employee acknowledges that he or she will have seven
(7) days from the date of the execution of this Agreement by Employee within which to change his or
her mind and revoke the Agreement, upon which event the payments and other obligations of Employer
will cease. Employee acknowledges and agrees that any revocation of this Agreement must be made in
writing and delivered within the seven-day revocation period to:

Deborah N. Gable

Vice President, Human Resources

CheckFree Corporation

	 
	 

	 

CheckFree Services Corporation

Individual Separation Agreement and General Release

CONFIDENTIAL

Page 6 of 10

 

 

Matthew W. Lewis

Page 7

February 16, 2007

4411 East Jones Bridge Road

Norcross, Georgia 30092

Employee further acknowledges that the effective date of this Agreement will be the eighth (8th)
day after it has been executed by Employee.

13. Unless as limited or prohibited by applicable law, if Employee breaches this Agreement by suing
Employer on any claim released hereunder, Employee will pay all costs and expenses of defending
against the suit incurred by Employer, including attorneys’ fees.

14. Employee acknowledges that pursuant to the terms of this Agreement he or she is not entitled to
any other payments, compensation, or fringe benefits of any kind whatsoever after the date of this
Agreement other than as provided herein and in David Mangum’s
February 16, 2007 Separation Letter, except that Employee will be provided with the proper written notification of Employee’s
rights under COBRA to elect to continue insurance for a specified period of time at Employee’s own
cost.

15. If the Employee is being paid Severance Payments for twenty-six (26) weeks or more, the parties
agree that the Severance Payments will cease immediately upon the Employee’s commencing any new
full-time permanent employment. Employee agrees that he or she will promptly notify Employer of
the start date of his or her new employment.

16. If the Employee continues participation in CheckFree’s medical and/or dental programs during
the severance period, the parties agree that upon the Employee’s eligibility for other medical
and/or dental coverage, the coverage with CheckFree will cease immediately upon the Employee’s
effective date of the new medical and/or dental coverage. Employee agrees that he or she will
promptly notify Employer of the start date of his or her new medical and/or dental coverage.

17. Employee agrees to fully cooperate with Employer in any and all investigations, inquiries or
litigation whether in any judicial, administrative, or public, quasi-public or private forum, in
which Employer is involved, whether or not Employee is a defendant in such investigations,
inquiries, proceedings or litigation. Employee shall provide such truthful testimony, background
information, and other support and cooperation as Employer may reasonably request and Employer
shall reimburse Employee for his actual, reasonable costs incurred, provided that such costs have
been preapproved by Employer.

18. The
parties hereby warrant and represent that they have not made any false statements or
misrepresentations in connection with this Agreement. Employee further warrants and represents
that he or she has not assigned or transferred to any person or entity not a party to this
Agreement any claim or right released hereunder, and Employee shall defend, indemnify, and hold
harmless Employer from and against any claim (including the payment of attorneys’ fees and costs
actually incurred whether or not litigation has commenced) based on or in connection with or
arising out of any such assignment or transfer made by the Employee.

19. The terms of this Agreement shall not be amended or changed except in writing and signed by
Employee and a duly-authorized agent of Employer.

20. Employee warrants, represents, and acknowledges that this Agreement is entered into by Employee
knowingly and voluntarily as an act of Employee’s own free will; that Employee is
of sound mind; that Employee

	 
	 

	 

CheckFree Services Corporation

Individual Separation Agreement and General Release

CONFIDENTIAL

Page 7 of 10

 

 

Matthew W. Lewis

Page 8

February 16, 2007

has been given time to consult with a lawyer before signing; that Employee is laboring under no
physical, psychological, or mental infirmity which would affect his or her capacity either to
understand the terms of this Agreement or to freely enter into and be bound by the provisions of
this Agreement.

 

[INTENTIONALLY LEFT BLANK]

 

 

	 
	 

	 

CheckFree Services Corporation

Individual Separation Agreement and General Release

CONFIDENTIAL

Page 8 of 10

 

 

Matthew W. Lewis

Page 9

February 16, 2007

	 	 	 
	 

	 	RECEIPT: I acknowledge receipt of a copy of this Agreement this 22nd day of February, 2007.

/s/ Matthew S. Lewis

 

Signature for Purposes of Receipt Only

     BY SIGNING THIS AGREEMENT IN THE SPACE PROVIDED BELOW, I STATE THAT I HAVE PERSONALLY READ THE
FOREGOING AGREEMENT, AND I AM VOLUNTARILY AND KNOWINGLY ENTERING INTO THE TERMS AND PROVISIONS
CONTAINED IN IT, WITH FULL UNDERSTANDING OF ITS CONSEQUENCES.

          EMPLOYEE:

	 	 	 	 	 
	 	 	Matthew S. Lewis
	 	 	Matthew S. Lewis (Printed Name)

	 	 	/s/ Matthew S. Lewis
	 	 	Matthew S. Lewis (Signature)

	 

	 	Date:
	 	February 22, 2007
	 

	 	 	 	 

          EMPLOYER:

	 	 	 	 	 
	 	 	CHECKFREE SERVICES CORPORATION

	 

	 	By:
	 	/s/ David E. Mangum
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice President and Chief
Financial Officer
	 

	 	 	 	 
	 

	 	Date:
	 	February 22, 2007
	 

	 	 	 	 

	 
	 

	 

CheckFree Services Corporation

Individual Separation Agreement and General Release

CONFIDENTIAL

Page 9 of 10

 

 

Matthew W. Lewis

Page 10

February 16, 2007

ATTACHMENT A

CONFIDENTIALITY AND NONCOMPETITION AGREEMENT

(OR OTHER APPLICABLE AGREEMENT)

Attached hereto is the Employee’s (check one):

     1) Confidentiality and Noncompetition Agreement,   X  

     2) Other applicable agreement,          or

     3) No agreement applies.         

	 
	 

	 

CheckFree Services Corporation

Individual Separation Agreement and General Release

CONFIDENTIAL

Page 10 of 10

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