Document:

TRP Blank Doc

CHYRON CORPORATION

5 Hub Drive

Melville, New York 11747

 

 

January 16, 2003

Roger Henderson

Hollytree Cottage

Swallowfield Street

Swallowfield

U.K.

Re:Separation Agreement

Dear Mr. Henderson:

This shall confirm the agreement between Roger Henderson ("Henderson") and Chyron Corporation (the "Company") pursuant to which you have agreed voluntarily to terminate your employment with the Company, earlier than provided for in the Employment Agreement dated July 12, 1999, as amended on January 10, 2002, April 5, 2001 and May 14, 2002 (collectively, the "Employment Agreement"), and in accordance with the terms hereof.

1.Separation Date.  Henderson shall resign his positions with the Company as: President and Chief Executive Officer, all officer and director positions of all subsidiaries of the Company, and all fiduciary positions with regard to pension plans and 401(k) plans effective February 21, 2003 (the "Separation Date").  Henderson has agreed to remain on the Board of Directors of the Company following the Separation Date and he shall be compensated as any other outside director for such service following such date.

2.Options.  Henderson has been previously granted options to purchase a total of 650,000 shares of common stock of the Company.  The Company agrees that the time period to exercise options to purchase 150,000 shares of common stock, which are fully vested and with an exercise price of $0.55 per share, shall be extended until February 28, 2005.  The remaining 500,000 options shall be cancelled on the Separation Date unless, to the extent vested, such options are exercised prior thereto.

3.Consultancy.  Henderson has agreed to provide consulting services to the Company following the Separation Date as provided herein.  The Company shall pay Henderson a consulting fee of $15,000 on March 22, 2003 and April 22, 2003 for providing consulting services to the Company as requested by the Office of the Chief Executive Officer during the period of February 22, 2003 through and including April 22, 2003, (the "Consulting Period").  If during the Consulting Period, Henderson should become employed full-time with another company, then the consulting fee shall be reduced pro-rata based upon when such employment begins and the amount of time remaining in the consulting period.

4.Benefits and Other Items.  Pro-Bel shall continue to pay for the health and life insurance policies, which currently cover Henderson and his family through April 21, 2003.  Henderson may keep, at no charge, the Company's laptop that he currently has in his possession and the Company's desktop personal computer that he uses in his United Kingdom home.  Henderson's mobile telephone number, 44-789-984-7117, shall be retained by him and he shall assume responsibility for payment of the service following the Separation Date.  Henderson shall pay the tax preparation fees of PriceWaterhouseCoopers for the year 2003.  In accordance with Company policy, Henderson shall be paid for any accrued and unused vacation pay as of the Separation Date and any unreimbursed business expenses, including without limitation the cost of the preparation of Henderson's 2002 USA tax returns.

5.Extension of Transaction Bonus.  The Company and Henderson hereby agree that the bonus referenced in Section 3 of the October 2001 Agreement is extended to cover any opportunities for a Transaction (as defined in the October 2001 Agreement) that are introduced to the Company on or before the Separation Date and which close on or before April 11, 2003 (the "Transaction Bonus").

6.Continuing Obligations of Henderson.  In exchange for the extension of the exercise period for the options as set forth herein and the extension of the Transaction Bonus, Henderson hereby reaffirms his obligations under Section 6 (Non-Competition), Section 7 (Patents; Copyrights) and Section 8 (Confidential Information) of the Employment Agreement and agrees to act in accordance with these restrictions.

7.Press Release.  The Company and Henderson shall agree on the content of a press release and any other public announcement regarding Henderson's departure from the Company.

8.Reduced Amounts.  Henderson agrees that his Base Salary shall remain at the reduced rate of $280,000 per annum through the Separation Date and he acknowledges that he is not owed any other sums of money with respect to taking a reduced salary since April 2001.

9.No Other Payments.  Except as specifically provided herein or as otherwise may be required by law, Henderson shall not be entitled to receive any other payments, benefits or severance amounts from the Company following the Separation Date, whether pursuant to the Employment Agreement, the Company's severance and retention plans or otherwise.

10.Mutual Non-Disparagement.  Henderson shall not disparage the Company or any of the Company's subsidiaries, affiliates, and their respective officers, directors, employees, successors and assigns, and the Company shall not disparage Henderson or any of his representatives or agents, or any of their respective heirs and assigns.

11.Release of Claims by Henderson.  (a) It is understood and agreed by the parties to this Agreement that in consideration of the mutual promises and covenants contained in this Agreement, and after consultation with counsel, Henderson and each of his respective heirs, representatives, agents, successors and assigns, irrevocably and unconditionally releases and forever discharges the Company and its respective current and former officers, directors, shareholders, employees, representatives, heirs, attorneys and agents, as well as its respective predecessors, parent companies, subsidiaries, affiliates divisions, successors and assigns and their respective current and former officers, directors, shareholders, employees, representatives, attorneys and agents, from any and all causes of action, claims, actions, rights, judgments, obligations, damages, demands, accountings or liabilities of whatever kind or character, which Henderson may have against them, or any of them, by reason of or arising out of, touching upon or concerning (i) Henderson's employment with the Company and the separation of his employment, or (ii) any statutory claims, or any and all other matters of whatever kind, nature or description, whether known or unknown, occurring on or prior to the Separation Date.  Henderson acknowledges that this release of claims specifically includes, but is not limited to, any and all claims for fraud; breach of contract; breach of the implied covenant of good faith and fair dealing; inducement of breach; interference with contractual rights; wrongful or unlawful discharge or demotion; violation of public policy; invasion of privacy; intentional or negligent infliction of emotional distress; intentional or negligent misrepresentation; conspiracy; failure to pay wages, benefits, vacation pay, severance pay, attorneys' fees, or other compensation of any sort; defamation; unlawful effort to prevent employment; discrimination on the basis of race, color, sex, national origin, ancestry, religion, age, disability, handicap, medical condition or marital status; any claim under Title VII of the Civil Rights Act of 1964 (Title VII, as amended), 42 U.S.C. section 2000, et seq., the Age Discrimination in Employment Act ("ADEA"), 29 U.S.C. section 621, et seq., the Older Workers Benefit Protection Act ("OWBPA"), 29 U.S.C. section 626(f); violation of the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA"); the Americans with Disabilities Act ("ADA"); violation of the Occupational Safety and Health Act ("OSHA") or any other health and/or safety laws, statutes or regulations; violation of the Employee Retirement Income Security Act of 1974 ("ERISA"); violation of the Internal Revenue Code of 1986, as amended; or any other wrongful conduct, based upon events occurring prior to the Separation Date.  Notwithstanding the provisions of this paragraph, nothing in this waiver or release shall be construed to constitute any release or waiver by Henderson of his rights or claims against the Company arising out of or referred to: (i) in this Agreement, or the enforcement hereof; (ii) claim for indemnification under any indemnity agreement, corporate charter, statute or D&O policy; or  (iii) which arise after the Separation Date. 

(b)Henderson represents and warrants that he has not assigned or subrogated any of his rights, claims and causes of action, including any claims referenced in this Agreement, or authorized any other person or entity to assert such claim or claims on his behalf, and he agrees to indemnify and hold harmless the Company against any assignment of said rights, claims and/or causes of action.

12.Release of Claims by the Company.  Subject to the provisions of the Agreement, the Company hereby irrevocably and unconditionally releases, waives and fully and forever discharges Henderson and his respective heirs, assigns, representatives, attorneys and agents, from and against any and all causes of action, claims, actions, rights, judgments, liabilities, accountings, obligations, demands and damages of whatever kind or character, which the Company may have against him, by reason of or arising out of, touching upon or concerning (i) the Company's employment of Henderson and the separation of his employment, (ii) his service as a director of the Company, or (iii) any statutory claims, or any and all matters of whatever kind, nature or description, whether known or unknown, occurring on or prior to the Separation Date regardless of when discovered. The Company acknowledges that this release of claims specifically includes, but is not limited to, any and all claims for breach of contract; breach of the implied covenant of good faith and fair dealing; inducement of breach; interference with contractual rights; violation of public policy; intentional or negligent misrepresentation; conspiracy; or any other wrongful conduct, based upon events occurring prior to the Separation Date.  Notwithstanding the provisions of this paragraph, nothing in this waiver or release shall be construed to constitute any release or waiver by the Company of its rights or claims against Henderson arising out of or referred to in this Agreement or the enforcement hereof or which arise after the Separation Date or relate to claims of fraud occurring at any time.

13.Continuing Indemnity.  The Company hereby acknowledges its obligation to continue to indemnify Henderson for any claims made against him arising from his service as an officer and director of the Company, including its subsidiaries, and as a fiduciary for the Company's pension plans.  To the extent the existing "D&O" insurance policy covers former officers and directors, Henderson shall be included under such policy in accordance with its terms.

14.Notices.  For purposes of this Agreement, notices and all other communications provided for herein shall be in writing and shall be deemed to have been duly given when personally delivered, sent by facsimile, with electronic confirmation of receipt, or three days after delivery to a nationally recognized overnight carrier for expedited delivery, addressed to such address as provided herein or sent to such other address or facsimile number as each party may furnish to the other in writing from time to time in accordance with this section. 

15.Applicable Law.  This Agreement is entered into under, and shall be governed for all purposes by, the laws of the State of New York without giving effect to any choice of law principles thereof.

16.No Waiver.  No failure by either party hereto at any time to give notice of any breach by the other party of, or to require compliance with, any condition or provision of this Agreement shall (i) be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time or (ii) preclude insistence upon strict compliance in the future.

17.Severability.  If a court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of that provision shall not affect the validity or enforceability of any other provision of this Agreement, and all other provisions shall remain in full force and effect and such invalid or unenforceable provision shall be reformulated by such court to preserve the intent of the parties hereto.

18.Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement.

19.Headings.  The paragraph headings have been inserted for purposes of convenience and shall not be used for interpretive purposes.

20.Gender and Plurals.  Wherever the context so requires, the masculine gender includes the feminine or neuter, and the singular number includes the plural and conversely

21.Affiliate.  As used in this Agreement, unless otherwise indicated, "affiliate" shall mean any person or entity which directly or indirectly through any one or more intermediaries owns or controls, is owned or controlled by, or is under common ownership or control with the Company.

22.Assignment.  This Agreement is binding on Henderson and the Company and their successors and assigns; provided, however, that the rights and obligations of the Company under this Agreement may be assigned to a successor entity.  No rights or obligations of Henderson hereunder may be assigned by Henderson to any other person or entity, except by will or the laws of descent and distribution.  In the event of Henderson's death prior to receipt by Henderson of all amounts payable by the Company hereunder, such amounts shall be payable to Henderson's designated beneficiaries on the same schedule as provided for in this Agreement.

23.Entire Agreement, Modification.  Except as otherwise specifically provided herein, this Agreement constitutes the entire agreement of the parties with regard to the subject matter hereof, contains all the covenants, promises, representations, warranties and agreements between the parties with respect to Henderson's resignation from the Company and supersedes all prior employment or severance agreements between Henderson and the Company or any of its predecessors or affiliates, including, but not limited to, the Employment Agreement.  Employee acknowledges and agrees that the consideration provided for herein is adequate consideration for Henderson waiving his rights under the Employment Agreement.  Except as otherwise provided herein, each party to this Agreement acknowledges that no representation, inducement, promise or agreement, oral or written, has been made by either party, or by anyone acting on behalf of either party, which is not embodied herein, and that no agreement, statement, or promise relating to Henderson's resignation from the Company, that is not contained in this Agreement, shall be valid or binding.  Any modification or amendment of this Agreement will be effective only if it is in writing and signed by all parties hereto.

If this Agreement accurately reflects our understanding, please execute and date below and return a copy to me and to the Company's counsel.

Very truly yours,

/s/ Wesley W. Lang, Jr.

Wesley W. Lang, Jr., Chairman

 

Agreed and Accepted

/s/ Roger Henderson

Roger Henderson

Dated: January 16, 2003CONFIDENTIAL GENERAL RELEASE AND SETTLEMENT
AGREEMENT

CONFIDENTIAL GENERAL
RELEASE AND EMPLOYMENT SEPARATION AGREEMENT

          This
Confidential General Release and Employment Separation Agreement
(the "Agreement") is entered into as of the Effective Date, defined
below in paragraph 9(m), by and between Eric M. Demarco
("Demarco"), on the one hand, and The Titan Corporation
(“Titan”), on the other hand.  Demarco and Titan
are referred to collectively as the "Parties.”

          WHEREAS,
Demarco has been employed by Titan and has served most recently in
the role of President and Chief Operating Officer;

          WHEREAS,
the Parties have agreed that it is in the best interests of all
involved to mutually terminate that employment relationship, to
provide for transition of employment responsibilities and to
amicably conclude all matters arising out of or related to the
employment of Demarco and/or the termination of that
employment;

          NOW,
therefore, in consideration of the foregoing recitals, and the
mutual promises, agreements and understandings contained herein,
the Parties hereby agree as follows:

		
1.    

	
Mutual Termination of
Employment

	
 

		
	
       

	
(A)    

	
The Parties agree that the
employment of Demarco will terminate by mutual agreement on
March  14, 2003 (the “Employment Termination
Date”);

	
 

				
	
       

	
(B)    

	
The Parties agree that
Demarco will continue to report to work at the principal offices of
the corporation consistent with prior practice through February 19,
2003;

	
 

				
	
       

	
(C)    

	
The Parties agree that:
(i) the base salary of Demarco that is in effect as of December 31,
2002 will continue to be paid through the Employment Termination
Date; and (ii) Demarco will continue to furnish such employment
services from his home that are requested by Titan to transition
his work responsibilities through the Employment Termination
Date.

	
 

				
	
       

	
2.    

	
Payments; Medical &
Dental Benefits; Indemnity

          To
effect a full and final settlement and compromise of all 
matters whatsoever arising out or related to  Demarco’s
employment and the termination thereof, including a full settlement
of all possible claims of Demarco, and in consideration of the
promises and releases set forth herein, the Parties agree as
follows:

	
       

	
(A)    

	
In the event Demarco has
delivered the executed Agreement to Titan, the Effective Date has
passed, and the Agreement has not been revoked pursuant to
paragraph 9(m), Titan shall pay to Demarco the gross amount of one
million, five hundred and fifteen thousand dollars ($1,515,000),
minus applicable deductions and withholding as required by law (the

“Severance Payment”).  Titan will wire the
Severance Payment to Demarco’s designated bank account within
one (1) business day after the Effective Date.

	
 

				
	
       

	
(B)    

	
Titan shall pay to Demarco
the gross amount of ninety-seven thousand, one hundred and fifteen
dollars ($97,115), minus applicable deductions and withholding as
required by law as payment in full satisfaction of Demarco’s
entire vacation entitlement (the “Vacation Payment”).
Titan will wire the Vacation Payment to Demarco’s designated
bank account within one (1) business day after the Employment
Termination Date.

	
 

				
	
       

	
(C)    

	
Titan shall pay to Demarco
the gross amount of four hundred sixty thousand and six
hundred-thirty one dollars and 57 cents ($$460,631.57), minus
applicable deductions and withholding as required by law as payment
in full satisfaction of Demarco’s entire entitlement under
the Titan Deferred Compensation Plan (the “Deferred
Compensation Payment”). Titan will wire the Deferred
Compensation Payment to Demarco’s designated bank account
within one (1) business day after the Effective Date.

	
 

		
	
       

	
(D)    

	
The Parties acknowledge
that Demarco has been granted the stock options in certain
subsidiary companies of  Titan set forth in Exhibit B to this
Agreement (collectively, “the Subsidiary Options”) in
accordance with the terms of certain stock option agreements and
stock option plans associated with each such subsidiary of Titan.
..Demarco acknowledges and agrees that the Subsidiary Options and
stock option agreements covering the Subsidiary Options are hereby
terminated as of the Effective Date of this Agreement. Demarco
further agrees that no monies are due Demarco in connection with
the Subsidiary Options and Demarco will not make any claim
whatsoever related to the Subsidiary Options.

	
 

				
	
       

	
(E)    

	
The Parties acknowledge
that Demarco has been granted the stock options in The Titan
Corporation set forth in Exhibit A to this Agreement (collectively,
“the Options”) in accordance with the terms of those
certain stock option agreements (“Option Agreements”)
identified in such Exhibit.

	
 

				
	
       

	
 

	
In the event that Demarco
has delivered the executed Agreement, the Effective Date has
passed, and he has not revoked the Agreement in accordance with
paragraph 9(m), the Parties agree that this paragraph 2(E) shall be
deemed to amend each of the above-referenced Option Agreements as
follows:

	
 

				
			
(i)    

	
Each of the Options shall
be deemed vested as of the first business day following the
Effective Date;

	
 

			
			
(ii)    

	
Each of the Options may be
exercised  by tendering  the exercise price on or before
the second anniversary of the Effective Date (the
“Deadline”), in accordance with the terms of the
applicable Option Agreements; provided, however, that the Deadline
for the exercise of each of the 125,565 Options granted to Demarco
pursuant to that certain Stock Option Agreement dated December 31,
1997 shall be the second anniversary of the date such Options are
registered with the Securities and Exchange Commission on form S-8
; and

	
 

			
			
(iii)    

	
In the event Demarco does
not exercise the Options by the Deadline, the Options shall
expire.

	
 

			
			
(iv)    

	
	
 

				
	
       

	
(F)    

	
Titan will issue to
Demarco a W-2 form for the Severance, Deferred Compensation and
Vacation Payments. Demarco further understands and agrees that, in
the event he chooses to exercise the Options, the exercise of those
Options is expected to be a taxable event, and he shall be required
to provide Titan with a cashier’s check in the appropriate
amount to cover applicable withholding (the “Withholding
Amount”) required by law at or about the time of the exercise
of the Options.  Demarco acknowledges that his right to
exercise is contingent upon delivery of the cashier’s check
for the Withholding Amount (which shall be calculated by
Titan).  It shall be Demarco’s responsibility to contact
Titan’s Vice President and Controller to obtain information
regarding the Withholding Amount at least five (5) business days in
advance of the exercise date.  Demarco further understands
that Titan will issue an appropriate tax form reflecting the
exercise of the Options. Demarco represents, warrants  and
agrees that Demarco will be responsible for all taxes associated
with the exercise and sale of the Options.

	
 

				
	
       

	
(G)    

	
Titan agrees to pay the
insurance premiums associated with its continuation of the Titan
Group Insurance Medical and Dental Benefits coverage of 
Demarco, (as such insurance coverage is in effect as of the
Employment Termination Date), through the earlier of: (i) December
31, 2003; or (ii) the date  Demarco becomes eligible to
receive  Medical and Dental Benefits coverage in connection
with new employment by a third party. If Demarco does not become
eligible to receive Medical and Dental Benefits from a third party
employer by January 1, 2004, then Demarco will be eligible for
COBRA benefits in accordance with the then applicable Titan policy
at such time, and Titan agrees to pay the Titan Group Medical and
Dental benefits insurance premiums associated with such
continuation of COBRA benefits.

	
 

		
	
       

	
(H)    

	
Titan acknowledges that
certain indemnification rights have been granted to Demarco by: (i)
that certain Indemnity Agreement dated February 28, 2002 entered
into by Demarco and The Titan Corporation; and (ii) the Bylaws of
Titan in effect on the Employment Termination Date (collectively,
the “Indemnification Rights”). Titan agrees that: (a)
the Indemnification Rights shall not be superceded, terminated or
otherwise modified by this Agreement; and (b) the Indemnification
Rights shall survive the Employment Termination Date in accordance
with their terms.

	
 

		
		
3.

	
Release by Eric M.
Demarco

          For
good and valuable consideration, the receipt and adequacy of which
hereby is acknowledged, and as a material inducement to Titan to
enter into this Agreement, Eric M. Demarco, on behalf of himself
and his representatives, family members, heirs, attorneys,
executors, administrators, agents, successors and assigns, and each
of them, hereby releases, acquits and forever discharges Titan and
all of its current and former subsidiaries, joint venturers and
affiliates, and all of their respective directors, shareholders,
officers, employees, agents, attorneys, insurers,  and all
individuals or entities acting by, through, under or in concert
with any of them (collectively, the "Released Parties"), from any
and all charges, controversies, claims, wages, rights, agreements,
actions, costs or expenses, causes of action, obligations, damages,
losses, promises and liabilities of whatever kind or nature
(including but not limited to back wages, stock options and
attorneys’ fees), in law or equity or otherwise, whether
known or unknown, suspected or unsuspected, from the beginning of
time to the present, including but not limited to any claims
directly or indirectly arising out of, based upon or relating in
anyway to the Subsidiary Options, The Titan Deferred Compensation
Plan,  Demarco’s employment with Titan (including its
affiliates), the termination of such employment or relating to or
arising from any alleged act or omission by any of the Released
Parties.

          Without
limiting the generality of the foregoing, Demarco expressly waives
and releases all claims of discrimination, retaliation or
harassment on the basis of race, age, sex, religion, sexual
orientation, national origin, disability, medical condition or
other basis under Title VII of the Civil Rights Act of 1964,
as amended; all claims under 42 U.S.C. Section 1091
(discrimination); all claims under Sections 503 and 504 of the
Rehabilitation Act of 1973 (handicap discrimination); all claims
under the Age Discrimination in Employment Act, as amended,
29 U.S.C. Sections 621 et. seq., or any state counterpart, all
claims of discrimination, retaliation or harassment under the
California Fair Employment and Housing Act; all claims under the
California Labor Code, the California Constitution, the California
Family Rights Act or the Family and Medical Leave Act; all claims
under the Employee Retirement Income Security Act or the
Consolidated Omnibus Budget Reconciliation Act; all claims under
the California Industrial Welfare Commission Orders or any local,
state, or federal law or regulation governing discrimination in
employment; all claims under state contract or tort law such as
wrongful termination,  invasion of privacy, breach of the
implied covenant of good faith and fair dealing, defamation or
negligent or intentional infliction of emotional distress; claims
for attorneys’ fees, and all claims pertaining to severance
pay, wages, sick leave, vacation pay, life insurance, medical
insurance, disability, or any other benefit of
employment.

          Demarco
expressly agrees that this Agreement and General Release extends to
all claims of every nature and kind, known or unknown, suspected or
unsuspected, vested or contingent, past, present or future, arising
from or attributable to any alleged act or omission of the Released
Parties and their respective agents or representatives, occurring
prior to the Effective Date of this Agreement, including, without
limitation, any alleged act or omission in connection with
Demarco’s hiring or employment by, or the termination of his
employment with, Titan (including its affiliates), provided,
however that nothing in this release shall affect
Demarco’s right to enforce the terms of this
Agreement.

		
4.

	
Release by
Titan

          Titan
hereby releases, acquits and forever discharges Demarco and his
heirs, representatives and assigns, from any and all charges,
controversies, claims, wages, rights, agreements, actions, costs or
expenses, causes of action, obligations, damages, losses, promises
and liabilities of whatever kind or nature, in law or equity or
otherwise, whether known or unknown, suspected or unsuspected, from
the beginning of time to the present, directly or indirectly
arising out of, based upon or relating in anyway to Demarco’s
employment with Titan (including its affiliates) or relating to or
arising from any alleged act or omission by Demarco, provided,
however, that nothing in this General Release or Agreement shall be
construed to be a waiver or release of any rights Titan has to
enforce the terms of this Agreement.

          Titan
agrees that this Agreement and General Release extends to all
claims of every nature and kind, known or unknown, suspected or
unsuspected, vested or contingent, past, present or future, arising
from or attributable to any alleged act or omission of Demarco
during the course of his employment with Titan.

		
5.

	
Release of Unknown
Claims

          As
to those claims released hereby, the Parties acknowledge and agree
that they are aware of and have been advised by counsel of
California Civil Code Section 1542, which provides as
follows:

			
"A GENERAL RELEASE DOES
NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO
EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR."

          With
full awareness and understanding of this provision, the Parties
hereby waive all rights which this provision or any comparable
provision under any state or federal law may give to them. 
They intend the general release set forth in this Agreement to
apply to claims which they do not presently know to exist at this
time, subject to the representations and warranties provided by the
Parties herein.  Subject to the representations and warranties
contained in this Agreement, the Parties understand that the facts
with respect to which this Agreement is given may hereafter prove
to be different from the facts now known or believed by them, and
they hereby accept and assume the risk thereof and agree that this
Agreement shall be and shall remain, in all respects, effective and
not subject to termination or recission by reason of any such
difference in facts.

          The
Parties understand and agree that this Agreement shall bind and
inure to the benefit of the Released Parties and Demarco, their
heirs, successors and assigns.

		
6.

	
Future
Cooperation

          Demarco
hereby agrees that, in the event his testimony, services or time
are required in the future to assist the Released Parties in
handling any legal matter, prosecuting or defending against
litigation or to pursue or defend against a disputed claim or
charge of any type, he will make himself reasonably available to
work with Titan’s attorneys and representatives, to prepare
for and provide deposition and/or trial testimony and to take
whatever other steps are necessary to assist  in the handling
of such legal matters and prosecution/defense of such claims. 
Demarco further agrees that he will make himself available to
consult with Titan business people in connection with the
transition of his business responsibilities as well as such other
business matters that may be reasonably requested by Titan. Titan
will reimburse Demarco for any reasonable travel expenses incurred
on its behalf and at its advance written request in rendering
assistance required by this Section 5, provided that Demarco
submits documentation in a form acceptable to Titan to substantiate
such expenses.  The Parties agree that the request of Titan
for Demarco cooperation will not unreasonably interfere with
Demarco’s employment with a third party.

		
7.

	
Confidentiality of
Settlement, Facts and Proprietary Information

          Demarco
agrees to keep the terms and substance of this Agreement (including
but not limited to any amounts of money paid pursuant thereto), and
any of the underlying facts confidential and to refrain from
disclosing the same at any future time, or to any other individual
or entity whatsoever, except as may reasonably be necessary: (a) in
the course of preparing and filing his income tax returns, in the
course of any legal proceedings to secure compliance with or
enforcement of the terms of the Agreement, or in the course of any
inquiry by federal or state authorities (provided, however, that
Demarco shall not request that any such inquiry be initiated); or
(b) in response to any proper subpoena, court order or lawful
discovery request in litigation, after giving reasonable and the
most practicable prior notice to Titan, which would allow Titan to
timely challenge any such subpoena, order or request. 
Specifically exempted from this provision will be disclosure to
Demarco’s spouse, legal counsel and individuals who assist
him with tax advice and preparation, provided, however, that such
exceptions are conditioned upon Demarco instructing such
individuals to abide by this confidentiality provision and
obtaining from each such individual a commitment not to further
disclose such information to any other person or entity whatsoever,
with the recognition that such individuals’ breaches of this
confidentiality provision could cause significant harm to
Titan.

          Nothing
in this Agreement shall be construed to affect Demarco’s
obligation to testify truthfully upon inquiry by governmental
agencies, or in response to a lawful discovery request in
litigation, including lawful subpoena or court order.

          Notwithstanding
the above, in the event Demarco or his attorneys receive
(but may not initiate) inquiries about settlement of the
matters covered by this Agreement, or in the event Demarco or his
attorneys deem it necessary for the defense of any lawsuit filed
against them, they may respond only to the effect that “The
matter has been settled to the mutual satisfaction of the
parties.”

          The
Parties further agree that all agreements or statements Demarco has
signed regarding his obligation to maintain the confidentiality of
the Released Parties’ confidential and proprietary
information, shall remain in full force and effect, and Demarco
shall abide by the terms of all such agreements.

		
8.

	
Arbitration
Provision

          The
Parties agree to resolve any claims they may have with each other
through final and binding arbitration in accordance with this
paragraph, except, if Titan so elects, any dispute relating to
paragraph 6 (which protects Titan’s trade secrets,
Titan’s proprietary information and the facts and terms of
this Agreement from disclosure), may be the subject of an action
for injunctive relief in a court of competent jurisdiction as well
as a claim for damages through an arbitration proceeding. 
This arbitration requirement applies to, among other things,
disputes about the validity, interpretation, or effect of this
Agreement.

          Except
as provided in this paragraph, the arbitration shall be in
accordance with the then-current arbitration rules and procedures
for employment disputes governing arbitrations administered by the
Judicial Arbitration and Mediation Service (JAMS) in San Diego,
California  before an experienced arbitrator who either is a
retired judge or is licensed to practice law in the State of
California and who has been selected in accordance with this
provision.  The arbitrator may not modify or change this
Agreement in any way.  The Parties and any other Released
Party who agrees to arbitrate an arbitrable dispute under this
paragraph agree to submit to personal jurisdiction in San Diego
County, California for such arbitration and in any jurisdiction
necessary for the enforcement of any arbitration award.  The
Parties represent that is a convenient dispute resolution location
for them.

          The
arbitrator shall be selected as follows:  JAMS shall give each
party a list of 11 arbitrators drawn from its panel of employment
or commercial dispute arbitrators who meet the requirements set
forth above.  Each party may strike all names on the list it
deems unacceptable.  If only one common name remains on the
lists of both parties, that individual shall be designated as the
Arbitrator.  If more than one common name remains on the lists
of both parties, the parties shall strike names alternately from
the list of common names until only one remains.  The party
who did not initiate the claim shall strike first.  If no
common name exists on the lists of both parties, JAMS shall furnish
an additional list, from which the parties shall strike
alternately, with the party initiating the claim striking first,
until only one name remains.  That person shall be designated
as the arbitrator (subject to full disclosure of conflicts that may
disqualify that arbitrator).  Striking decisions must be made
and communicated to the other party and JAMS within 10 calendar
days after the date of the transmittal communication relaying the
arbitrators remaining for selection.  In the event a party
does not make a timely strike, the other party may select the
arbitrator from the names remaining.

          Each
party shall pay the fees of its or his attorneys, the expenses of
its or his witnesses, and any other expenses that party incurs in
connection with the arbitration, but all costs of the arbitration
itself, including the fees of the arbitrator, the cost of any
record or transcript of the arbitration, and administrative fees
shall be paid in equal shares by the plaintiffs and defendants in
the proceeding.

          Arbitration
in this manner shall be the exclusive remedy for any claim that
must be arbitrated pursuant to this paragraph.  Should a party
attempt to resolve such a claim by any method other than
arbitration pursuant to this paragraph, the responding party will
be entitled to recover from the initiating party all damages,
expenses, and attorneys’ fees incurred as a result of that
breach. 

		
9.

	
Additional Representations
and Obligations

          Demarco
agrees that for a period of three years following the Effective
Date, he will not, without the prior written consent of Titan,
directly or indirectly, solicit for hire any officer, employee or
consultant of Titan or any of its affiliates, or knowingly solicit
or encourage any such officer, employee or consultant to leave the
employ of Titan or its affiliates, as the case may be.

          Demarco
warrants and represents that he has not assigned or in any way
conveyed, transferred or encumbered all or any portion of the
claims or rights covered by this Agreement.

          Demarco
further represents and warrants that he has no knowledge of any
claim or potential claim by him of any kind against any of the
Released Parties, other than those claims released hereby.  He
expressly acknowledges that Titan is relying upon this and the
other representations made herein in entering into this
Agreement.

          Demarco
agrees and promises that he will not file any charge, claim, suit,
or action against the Released Parties with any court of law or
before any federal, state, or local administrative agency based on
the matters released herein.  If any court of law or federal,
state, or local administrative agency assumes jurisdiction of any
charge, claim, suit, or action against the Released Parties on
behalf of Demarco based on the matters released herein, Demarco
agrees to direct that court, board or agency to withdraw from, or
to dismiss, the charge, claim, suit, or action with prejudice.

          Demarco
represents that he has received or will receive independent legal
advice regarding his tax obligations and that he has not relied
upon any advice from Titan or its attorneys as to the taxability of
the payments made and consideration transferred hereunder, whether
pursuant to federal, state, or local income tax statute or
regulation, or otherwise.  Demarco agrees that he will be
solely liable for all tax obligations arising from payment of the
settlement sums referenced herein. 

		
10.

	
Miscellaneous
Provisions

			
	
       

	
a.    

	
Demarco understands and
agrees that the payment of any sum of money afforded pursuant to
this Agreement shall not constitute or be construed as an admission
of any liability whatsoever by any of the Released Parties, nor
shall it be discoverable or admissible in any proceeding as
evidence of or an admission by any of the Released Parties of any
liability or wrongdoing, of any violation of the Released Parties
policies or procedures, or of any local, state or federal laws or
regulations.

	
 

				
	
       

	
b.    

	
If any portion, provision
or part of this Agreement is held, determined or adjudicated to be
invalid, unenforceable or void for any reason, each such portion,
provision or part shall be severed from the remaining portions,
provisions or parts of this Agreement and shall not affect the
validity or enforceability of such remaining portions, provisions
or parts.

	
 

				
	
       

	
c.    

	
This Agreement shall be
binding upon and inure to the benefit of the Parties and their
respective heirs, legal representatives, successors and
assigns.

	
 

		
	
       

	
d.    

	
This Agreement shall be
construed under and enforced in accordance with the substantive
laws of the State of California.

	
 

				
	
       

	
e.    

	
This Agreement sets forth
the entire agreement between Titan and Demarco and supersedes all
prior oral or written agreements, negotiations, discussions, or
understandings concerning the subject matter hereof, including that
certain letter dated November 24, 2002 signed by Demarco and Dr.
Gene Ray, Chairman and CEO of Titan.  The terms of this
Agreement may not be altered, amended, waived or modified, except
by a further written agreement signed by a member of the Board of
Directors of Titan and Demarco.

	
 

				
	
       

	
f.

	
This Agreement may be
executed in counterparts, each of which shall constitute an
original, but all of which shall constitute one and the same
agreement, provided each signing party shall have received a copy
of the signature page signed by every other party

	
 

				
	
       

	
g.    

	
The Parties to this
Agreement each cooperated in its drafting and preparation. 
Thus, the language of all parts of this Agreement shall in all
cases be construed as a whole, according to its fair meaning and
not strictly for or against any party as the drafter
thereof.

	
 

				
	
       

	
h.    

	
Each party agrees to make,
execute and deliver such other instruments or documents, and to do
or cause to be done such further or additional acts, as reasonably
may be necessary in order to effectuate the purposes or to
implement the terms of this Agreement.

	
 

		
	
       

	
i.    

	
No waiver of any breach of
any term or provision of this Agreement shall be construed to be,
nor shall be, a waiver of any other breach of this Agreement. 
No waiver shall be binding unless in writing and signed by the
party waiving the breach. In the case of Titan, no waiver shall be
binding unless in writing and signed by a member of the Board of
Directors of Titan.

	
 

				
	
       

	
j.    

	
Section headings in
this Agreement are included for convenience of reference only and
shall not constitute a part of this Agreement for any
purpose.

	
 

				
	
       

	
k.

	
Any notices sent in
accordance with this Agreement should be delivered by hand or by
overnight delivery, with a signed receipt, and shall be deemed
effective as of the date delivered.  Notices sent to Titan
should be delivered in a sealed envelope marked
“Confidential–To Be Opened by Addressee Only” and
addressed to:

	
 

		
	
 

		
Nicholas Costanza, Senior
Vice President & Secreatary

 The Titan Corporation

 3033 Science Park Road

 San Diego, CA  92121

		
			
Notices sent to Demarco
should be delivered in a sealed envelope addressed to:

	
 

		
			
Eric M. Demarco

 13665 White Rock Station Road

 Poway, Ca. 92064

	
 

				
	
       

	
l.    

	
Demarco acknowledges that
he has been given twenty-one (21) days within which to
consider this Agreement. Demarco represents that, during this
period, he has reviewed this Agreement with legal counsel such that
he knows and understands the legal effects hereof.  It is
recommended that Demarco consult with an attorney prior to signing
this Agreement.  In the event he decides to sign this
Agreement in advance of the twenty-one days provided for in
this paragraph, he acknowledges that he does so freely and without
coercion, and that this decision is in his sole
discretion.

	
 

				
	
       

	
m.

	
The Parties further
understand and agree that this Agreement is revocable by Demarco
for seven (7) days following his execution of this Agreement,
and that this Agreement shall not become effective and enforceable
until that revocation period has expired. If this Agreement is
so revoked by Demarco, it will have no further force and effect,
and Demarco shall not be entitled to receive the Severance Payment,
the Vacation Payment, the Deferred Compensation Payment or any of
the Options provided for herein.  This Agreement automatically
becomes enforceable and effective on the “Effective
Date”, which shall be  the eighth day after the date
this Agreement is signed by Demarco, provided that it has not been
properly revoked prior to that date..  This Agreement may be
revoked by a writing sent by messenger by Demarco, and received by
Titan in compliance with Section 9(k), on or before the seventh day
after the Agreement is signed by Demarco (unless that day is a
Sunday or holiday, in which event the revocation period is extended
to the next business day).

          If
any action is brought to enforce or interpret any provision of this
Agreement, or the rights or obligations of any party hereunder,
each party shall bear all of its own attorneys’,
accountants’ and other expert fees and costs incurred or
sustained by such party in connection with such action.

          The
Parties hereto, and each of them, represent and declare that in
executing this Agreement, they rely solely upon their own judgment,
belief and knowledge, and on the advice and recommendations of
their own independently selected counsel, concerning the nature,
extent and duration of their rights and claims and that they have
not been influenced to any extent whatsoever in executing the same
by any representations or statements covering any matters made by
any of the Parties hereto or by any person representing them or any
of them.  The Parties acknowledge that no party hereto nor any
of their representatives has made any promise, representation or
warranty whatsoever, written or oral, as any inducement to enter
into this Agreement, except as expressly set forth in this
Agreement.

          The
Parties represent and warrant that they have carefully read this
Agreement and know and understand the contents thereof, and that
they signed this Agreement freely and voluntarily.  The
individual executing this Agreement on behalf of Titan represents
that he is empowered to do so and thereby binds Titan.

          Each
party to this Agreement has made such investigation of the facts
pertaining to this settlement and this Agreement and of all matters
pertaining thereto as he/it deems necessary.

          In
entering into this Agreement and the settlement provided for
herein, each party assumes the risk of any misrepresentation,
concealment or mistake.  If any party should subsequently
discover that any fact relied upon by him/it, or that his/its
understanding of the facts or of the law was incorrect, such party
shall not be entitled to any relief in such connection or
otherwise, including, without limiting the generality of the
foregoing, any alleged right or claim to set aside or rescind this
Agreement.  This Agreement is intended to be and is final and
binding between the Parties hereto with respect to the Released
Claims, regardless of any claims of misrepresentation, promise made
without the intention of performing, concealment of fact, mistake
of fact or law, or of any other circumstance whatsoever.

          The
Parties hereto are each solely responsible for their own fees and
costs (including but not limited to legal and tax advisor fees and
costs) incurred before, from and after the date of this Agreement,
and at all times thereafter, except as may be awarded by the Court
in connection with any proceedings arising out of the enforcement
of the Agreement, regarding enforcement, interpretation,
implementation or modifiability of same.

          The
representations, warranties and covenants contained in this
Agreement are deemed to and shall survive the execution and
delivery of this Agreement by all of the Parties.

          DEMARCO
REPRESENTS AND WARRANTS THAT HE HAS THOROUGHLY READ AND CONSIDERED
ALL ASPECTS OF THIS AGREEMENT, THAT HE UNDERSTANDS ALL PROVISIONS
OF THIS AGREEMENT, THAT HE HAS HAD THE OPPORTUNITY TO CONSULT WITH
COUNSEL THROUGHOUT THIS PROCESS AND THAT HE IS VOLUNTARILY ENTERING
INTO THE AGREEMENT OF HIS OWN FREE WILL, WITHOUT DURESS OR COERCION
OF ANY KIND.

	

 Dated:  February 12, 2003                     

	
    By 

	

 /s/ ERIC M. DEMARCO

			

			
Eric M.
DeMarco, an individual

			
TITAN
CORPORATION

	

 Dated:  February 12, 2003                     

	
    By 

	

 /s/ GENE W. RAY

			

			
Gene W.
Ray

 Chief Executive Officer

Approved as to Form:

Dated:  February 17, 2003

	
    By 

	

 /s/ A. KENDALL WOOD

		

		
A. Kendall
Wood,

 Attorney for Eric M. DeMarco

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