Document:

Exhibit 10.1

 

SEPARATION AGREEMENT AND RELEASE

 

THIS SEPARATION AGREEMENT AND RELEASE (the “Agreement”) is entered into by JOHN BODE (hereinafter referred to as “Employee”) and TRIBUNE PUBLISHING COMPANY, LLC (hereinafter referred to as “Employer”).

 

RECITALS

 

A.                                    Employee has been employed by Employer, and Employee’s employment at Employer terminated on January 19, 2015 (the “Termination Date”).

 

B.                                    Employer wishes to offer Employee a separation package in exchange for the agreements expressed herein.  This Agreement shall set forth the terms and conditions of Employee’s termination and any continuing obligations of the parties to one another following the end of the employment relationship.

 

C.                                    Each of the undersigned parties to this Agreement has had ample opportunity to review the facts and law relevant to this issue, has consulted fully and freely with competent counsel of its choice if desired, and has entered this Agreement knowingly and intelligently without duress or coercion from any source.  Employee has had a reasonable time in which to consider whether to sign this Agreement.

 

AGREEMENTS

 

In consideration of the foregoing recitals and the mutual promises contained below, it is agreed as follows:

 

1.                                      EMPLOYMENT ENDING DATE, FINAL PAYMENTS AND BENEFITS

 

Employee’s employment with Employer ended on the Termination Date.  After that date, Employee will have no further employment duties to Employer.  By signing below, Employee acknowledges that, except for (i) two paychecks representing pay for the weeks of January 4, 2015 and January 11, 2015 and pay for January 19, 2015 (plus any accrued and unused vacation time through the Termination Date) which employee will receive through the normal payroll process of Employer and (ii) the clearing of Employee’s American Express corporate account which will be done by Employer in due course, Employee has received all compensation and benefits due from Employer, including but not limited to salary, wages, benefits, bonuses, incentive awards, approved reimbursable expenses and commissions earned through the Termination Date.

 

 

2.                                      PAYMENTS BY EMPLOYER

 

In exchange for the promises contained in this Agreement, and in lieu of the payments that might otherwise be payable pursuant to Paragraph 8 of Employee’s Employment Agreement, dated September 11, 2013, and effective September 30, 2013, as amended June 12, 2014 (the “Employment Agreement”), Employer will provide Employee with the following separation pay and benefits (collectively, “Severance Benefits”):

 

a)             A total gross severance payment of Five Hundred and Fifty Thousand Dollars ($550,000.00), less all applicable taxes and withholdings, representing twelve (12) months base pay at Employee’s current annual salary of Five Hundred and Fifty Thousand Dollars Thousand Dollars ($550,000.00)(“Base Salary”), paid on a bi-monthly basis during the twelve (12) months following the Termination Date according to Employer’s current payroll practices with the last payment payable prior to December 31, 2015;

 

b)             An additional gross lump sum severance payment of Four Hundred and Twelve Thousand, Five Hundred Dollars ($412,500), representing seventy five percent (75%) of the Employee’s Base Salary, less all applicable taxes and withholdings, paid on the later of (a) when other executive bonuses for Fiscal Year 2014 are paid, or (b) within seven (7) days after the Effective Date of this Agreement;

 

c)              An additional monthly payment, less all applicable taxes and withholdings, for twelve (12) months following the Termination Date to provide funds for COBRA continuation health care coverage for Employee and his family, payable on a bi-monthly basis during the twelve (12) months following the Termination Date according to the Employer’s current payroll practices;

 

d)             On the Effective Date (as defined below), acceleration of the vesting of the 10,000 options with an exercise price of $19.20 per share under the Tribune Publishing Company 2014 Omnibus Incentive Plan stock option agreement dated August 29, 2014, which options would vest on March 1, 2015 if Employee had remained employed with the Employer through March 1, 2015 (“Accelerated Options”), and extension of the exercise period of such Accelerated Options until the first anniversary of the Termination Date; and

 

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e)              On the Effective Date, acceleration of the vesting of the 3,750 restricted stock units under the Tribune Publishing Company 2014 Omnibus Incentive Plan restricted stock unit agreement dated August 29, 2014, which restricted stock units would vest on March 1, 2015 if Employee had remained employed with the Employer through March 1, 2015 (“Accelerated RSUs”), and delivery of shares of Employer’s common stock in respect of such Accelerated RSUs in accordance with the terms of the restricted stock unit agreement.

 

3.                                      COOPERATION AND PROVISION OF POST-EMPLOYMENT TRANSITION SERVICES.

 

Employee agrees to fully cooperate with the orderly transfer of his responsibilities as Employer may direct, including: (i) complying with any reasonable Employer request for information after the Termination Date; (ii) making himself reasonably available in connection with any and all claims, disputes, negotiations, investigations, and lawsuits or administrative proceedings involving Employer; and (iii) providing thorough and accurate information or documents, providing truthful declarations or statements to Employer, meeting with attorneys or other representatives of Employer, preparing for and giving thorough and truthful testimony, and/or otherwise cooperating in the investigation, defense or prosecution of proceedings involving Employer. Employee further agrees, in exchange for the consideration contained in this Agreement, that he will provide transition services (the “Transition Services”) to Employer for twelve (12) months following the Termination Date, as needed, or upon Employer’s request. Such post-employment Transition Services shall be considered consulting services, and shall in no way constitute employment with Employer. Employee understands and agrees that the consideration provided for in this Agreement is, in part, in exchange for his provision of such Transition Services, and that he is not entitled to further payment for such services.

 

4.                                      VALID CONSIDERATION

 

Employee and Employer agree that the Severance Benefits described in Section 2 are not required by Employer’s policies or procedures or by any pre-existing contractual obligation of Employer or by any statute, regulation or ordinance, and are offered by Employer solely as consideration for this Agreement.  In the event Employee fails to abide by the terms of this Agreement, Employer may elect, at its option and without waiver of other rights or remedies it may have, not to pay or provide any Severance Benefits, and to seek to recover previously paid Severance Benefits.

 

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5.                                      STOCK OPTIONS AND RESTRICTED STOCK UNITS

 

Employee acknowledges and agrees that under the terms of the stock options and restricted stock units granted to Employee under the Tribune Publishing Company 2014 Omnibus Incentive Plan, no options or restricted stock units will vest after the Termination Date.  Except as specifically provided in Section 2(d) and 2(e) of this Agreement, Employee acknowledges and agrees that Employee has no right to any stock options or restricted stock units or any other awards under the Tribune Publishing Company 2014 Omnibus Incentive Plan.

 

6.                                      REAFFIRMATION OF RESTRICTIVE AGREEMENTS AND NONDISPARAGEMENT PROVISIONS OF EMPLOYMENT AGREEMENT

 

Employee expressly reaffirms and incorporates as part of this Agreement Paragraphs 7 (a) - (f) (“Restrictive Agreements”), and Paragraph 11 (“Company Property”), and Paragraph 12 (“Nondisparagement”) of his Employment Agreement, which paragraphs shall remain in full effect (“Employment Agreement Surviving Covenants”).

 

7.                                      COMPLETE RELEASE OF CLAIMS

 

Employee, on his own behalf and on behalf of his descendants, dependents, heirs, executors and administrators and permitted assigns, past and present (Employee’s “Related Parties”) hereby covenants not to sue or pursue any litigation against, and waive, release, and discharge Employer, its parent, subsidiaries and affiliates, their predecessors, and successors, and all of their respective current or former directors, officers, employees, shareholders, partners, members, agents or representatives, managers, employees, trustees (in their official and individual capacities), employee benefit plans and their administrators and fiduciaries (in their official and individual capacities) of any of the foregoing (collectively, the “Releasees”), from any and all claims, demands, rights, judgments, defenses, complaints, actions, charges or causes of action whatsoever, of any and every kind and description, whether known or unknown, accrued or not accrued, that Employee ever had, now has or shall or may have or assert as of the date of this Agreement against the Releasees relating to Employee’s employment with Employer or the termination thereof or Employee’s service as an officer or director of Employer or its parent, subsidiaries or affiliates or the termination of such service, including, without limiting the generality of the foregoing, any claims, demands, rights, judgments, defenses, actions, charges or causes of action related to employment or termination of employment or that arise out of or relate in any way to the Age Discrimination in Employment Act of 1967 (“ADEA,” a law that prohibits discrimination on the basis

 

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of age), the National Labor Relations Act, the Civil Rights Act of 1991, the Americans With Disabilities Act of 1990, Title VII of the Civil Rights Act of 1964, the Employee Retirement Income Security Act of 1974, the Family and Medical Leave Act, the Sarbanes-Oxley Act of 2002, all as amended, and other federal, state and local laws relating to discrimination on the basis of age, sex or other protected class, including, without limitation, the Illinois Whistleblower Act, 740 ILCS 174/1, et seq.; the Illinois Worker Adjustment and Retraining Notification Act, 820 ILCS 65/1, et seq.; the Illinois Human Rights Act, 775 ILCS 5/1-101, et seq.; the Cook County Human Rights Ordinance; the Chicago Human Rights Ordinance or any other legal limitation on or regulation of the employment relationship, and all claims under federal, state or local laws for express or implied breach of contract, wrongful discharge, defamation, intentional infliction of emotional distress, and any related claims for attorneys’ fees and costs (collectively, “Claims”) (the “Release”); provided, however, that nothing herein shall release Employer from (i) any rights Employee may have in respect of accrued vested benefits under the employee benefit plans of the Company and its parent and subsidiaries; (ii) any rights Employee may have to indemnification under the Company’s by-laws, other applicable law, or any insurance coverage or other benefits under any directors and officers insurance or similar policies; or (iii) any rights Employee and Employee’s Related Parties may have to obtain as permitted by applicable law in the event of an entry of judgment against Employee and the Employer as a result of any act or failure to act for which Employee and the Employer are held jointly liable.

 

Employee further agrees that this Agreement may be pleaded as a full defense to any action, suit or other proceeding for Claims that is or may be initiated, prosecuted or maintained by Employee or Employee’s heirs or assigns.  Employee understands and confirm that Employee is executing this Agreement voluntarily and knowingly, but that this Agreement does not affect Employee’s right to claim otherwise under ADEA.  In addition, Employee shall not be precluded by this Agreement from filing a charge with any relevant federal, state or local administrative agency, but Employee agrees to waive Employee’s rights with respect to any monetary or other financial relief arising from any such administrative proceeding.

 

In furtherance of the agreements set forth above, Employee hereby expressly waives and relinquishes any and all rights under any applicable statute, doctrine or principle of law restricting the right of any person to release claims that such person does not know or suspect to exist at the time of executing a release, which claims, if known, may have materially affected such person’s decision to give such a release.  In connection with such waiver and relinquishment, Employee acknowledges that Employee is aware that Employee may hereafter discover claims presently unknown or unsuspected, or facts in addition to or different from those that Employee now knows or believes to be true, with respect to the matters released herein.

 

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Nevertheless, it is Employee’s intention to fully, finally and forever release all such matters, and all claims relating thereto, that now exist, may exist or theretofore have existed, as specifically provided herein.  The parties hereto acknowledge and agree that this waiver shall be an essential and material term of the release contained above.  Nothing in this paragraph is intended to expand the scope of the release as specified herein.

 

The Employer’s offer to Employee in this Agreement is not intended as, and shall not be construed as, any admission of liability, wrongdoing or improper conduct by Employer.  Employee acknowledges that Employee has not filed or caused to be filed any complaint, charge, claim or proceeding, against any of the Releasees before any local, state, federal or foreign agency, court or other body (each individually a “Proceeding”).  Employee represents that Employee is not aware of any basis on which such a Proceeding could reasonably be instituted.  Employee (i) acknowledges that Employee will not initiate or cause to be initiated on his behalf any Proceeding and will not participate in any Proceeding, in each case, except as required by law; and (ii) waives any right Employee may have to benefit in any manner from any relief (whether monetary or otherwise) arising out of any Proceeding, including any Proceeding conducted by the Equal Employment Opportunity Commission.

 

8.                                      NO ADMISSION OF WRONGDOING

 

This Agreement shall not be construed as an admission by Employee or Employer of any wrongful act and Employee and Employer each specifically disclaim any liability to each other.

 

9.                                      RESIGNATION FROM ALL POSITIONS

 

Effective as of January 18, 2015, Employee resigns from any and all positions he holds with the Company or its parent or any subsidiaries or other affiliates of the Company or any benefit plans with respect to the Company or its parent or any of its subsidiaries or affiliates to which he has previously been elected or appointed.  In connection with the execution and delivery of this Agreement, Employee has delivered to Employer an executed copy of the resignation letter attached hereto as Exhibit A.

 

10.                               RETURN OF PROPERTY

 

Except for a laptop and a cellular phone provided by Employer which Employee may retain, Employee confirms that Employee has returned to Employer all files, memoranda, records, credit cards, pagers, computers, computer files, passwords and pass keys, card keys, or related physical or electronic access devices, and any and all other property received from Employer or any of its current or former employees

 

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or generated by Employee in the course of employment.  Employee confirms that Employee has deleted all electronic data and files pertaining to Employee’s job or Employer’s business operations, existing on Employee’s personal computers, other personal electronic devices, and on any email account maintained or accessible by Employee, excluding only data and files pertaining exclusively to Employee’s compensation or benefits with Employer.

 

11.                               BREACH OR DEFAULT

 

Any party’s failure to enforce this Agreement in the event of one or more events that violate this Agreement shall not constitute a waiver of any right to enforce this Agreement against subsequent violations.

 

12.                               SEVERABILITY

 

The provisions of this Agreement are severable, and if any part of it is found to be unlawful or unenforceable, the other provisions of this Agreement shall remain fully valid and enforceable to the maximum extent consistent with applicable law.

 

13.                               ENTIRE AGREEMENT

 

Except for the Employment Agreement Surviving Covenants, which remain in effect, this Agreement sets forth the entire understanding between Employee and Employer and supersedes any prior agreements or understandings, express or implied, pertaining to the terms of Employee’s employment with Employer, the employment relationship and the termination of that relationship.  Employee acknowledges that in executing this Agreement, Employee does not rely upon any representation or statement by any representative of Employer concerning the subject matter of this Agreement, except as expressly set forth in the text of the Agreement.  No modification or waiver of this Agreement will be effective unless evidenced in a writing signed by both parties.

 

14.                               GOVERNING LAW

 

This Agreement will be governed by and construed exclusively in accordance with the laws of the state of Illinois without reference to its choice of law principles.  Any disputes arising under this Agreement shall be brought in a court of competent jurisdiction in the state or federal courts located in Cook County, in the state of Illinois.

 

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16.                               Taxes.

 

The Company makes no representations with regard to the effect on Employee’s federal, state, or local income tax liability with regard to the Severance Benefits and any other payments or benefits being provided to Employee. Employee hereby assumes full and sole responsibility for payment of taxes due, if any, on the consideration tendered herein and further agrees to defend, indemnify, and hold the Company harmless from and against any loss, liability, obligation, action, cause of action, claims, demands, or other expenses of any nature whatsoever, relating to, in connection with, or arising out of the payment of said taxes and interest, and/or penalties imposed, arising out of any such tax.

 

17.                               Section 409A

 

It is intended that any amounts and benefits payable under this Agreement will be exempt from or comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and treasury regulations relating thereto, so as not to subject Employee to the payment of any interest and tax penalty which may be imposed under Section 409A of the Code, and this Agreement shall be interpreted and construed accordingly, provided, however, that the Employer and its affiliates shall not be responsible for any such interest and tax penalties.

 

18.                               KNOWING AND VOLUNTARY AGREEMENT

 

Employee agrees that Employee has carefully read and fully understands all aspects of this Agreement including the fact that this Agreement releases any claims that Employee might have against Employer.  Employee agrees that Employee has not relied upon any representations or statements not set forth herein or made by Employer’s agents or representatives.  Finally, Employee agrees that Employee has been advised to consult with an attorney prior to executing the Agreement, and that Employee has either done so or knowingly waived the right to do so, and now enters into this Agreement without duress or coercion from any source.  Employee agrees that Employee has been provided the opportunity to consider for twenty-one (21) days whether to enter into this Agreement, and has voluntarily chosen to enter into it on this date.  This offer, if not accepted by Employee, will become null and void twenty-one (21) days after it was presented to Employee.  Employee may revoke this Agreement for a period of seven (7) days following the execution of this Agreement.  If Employee elects to revoke this Agreement, Employee must provide notification of intent to revoke prior to the expiration of the 7-day revocation period to:  Julie K. Xanders, Esq., Office of the General Counsel, Tribune Publishing Company, 202 W. 1st Street, Los Angeles, CA  90012; Julie.xanders@tribpub.com.  If not

 

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revoked, this Agreement shall become effective following expiration of the seven (7) day revocation period (“Effective Date”).

 

Employee acknowledges that, even if this Agreement is not executed or is canceled or revoked by Employee, the provisions of the Employment Agreement by and between Employer and Employee dated September 11, 2013, as amended, that otherwise by their terms survive termination of Employee’s employment shall remain in full force and effect.

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates indicated below.

 

	
TRIBUNE   PUBLISHING COMPANY, LLC
    	
JOHN   BODE
    
	
 
    	
 
    
	
By:   
    	
/s/   Julie K. Xanders
    	
 
    	
/s/   John Bode
    
	
 
    	
 
    	
 
    	
 
    
	
Its:   
    	
EVP,   General Counsel
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Dated:   
    	
1-19-15
    	
 
    	
Dated:
    	
1-19-2015
    

 

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EXHIBIT A

 

TO:                           The Board of Directors of Tribune Publishing Company (the “Company”):

 

I resign effective January 18, 2015, from any and all positions I hold with the Company or any subsidiaries or other affiliates of the Company or any benefit plans with respect to the Company or any of its subsidiaries or affiliates to which I have previously been elected or appointed.

 

Date:  January 18, 2015

 

 

	
 
    	
/s/ John Bode
    
	
 
    	
John BodeEMPLOYMENT
AGREEMENT

THIS EMPLOYMENT AGREEMENT, dated as of 01/06,
2015 (the “Agreement”), is entered into by and between ESPEY MFG. & ELECTRONICS CORP., a New York corporation (the
“Company”), and PATRICK ENRIGHT, JR. (the “Executive”).

WHEREAS, the Company desires to enlist
the services and employment of the Executive on behalf of the Company as its President and Chief Executive Officer, and the Executive
is willing to render such services on the terms and conditions set forth herein (“Employment”).

NOW, THEREFORE, in consideration of
the mutual covenants contained herein, the parties hereto agree as follows:

1.           Employment
Term. Except for earlier termination as provided for in Section 5 hereof, the Company hereby agrees to employ the Executive,
and the Executive hereby agrees to be employed by the Company, subject to the terms and provisions of this Agreement, for the period
commencing on or before February 1, 2015 (the “Effective Date”) and ending on the 3rd anniversary
of such date (the “Employment Term”); provided, however that the Employment Term shall be extended for one additional
year, unless either party gives prior written notice to the other, at least sixty (60) days before the end of the then current
term, electing not to renew this Agreement. Executive shall be designated by the Board to fill a vacancy on the Board without any
additional compensation as a Class B Director, and at the Company’s 2015 Annual Meeting shall stand for election as a Class
B Director for the remainder of the term expiring at the 2016 Annual Meeting.

2.           Extent
of Employment.

(a)           Duties.
During the Employment Term, the Executive shall serve as President and Chief Executive Officer of the Company. In his capacity
as President and Chief Executive Officer, the Executive shall report solely to the Company’s Board of Directors (the “Board”)
and shall perform such senior executive duties, services, and responsibilities on behalf of the Company consistent with such position
as may be assigned to the Executive from time to time by the Board. During the Employment Term Executive shall serve on the Board
without additional compensation and subject to paragraph 5(d) herein.

(b)           Exclusivity.
During the Employment Term, the Executive shall devote his full business time, attention, and skill to the performance of such
duties, services, and responsibilities, and shall use his best efforts to promote the interests of the Company, and the Executive
shall not engage in any other business activity without the approval of the Board. The Board may grant or withhold its approval
in its exclusive discretion. The Executive shall be permitted to serve on industry, trade, civic or charitable boards or committees,
and engage in charitable activities and community affairs to the extent such service and activities do not interfere with his Employment.

(c)           Place
of Employment. During the Employment Term, the Executive shall perform his services hereunder in, and shall be headquartered
at, the principal offices of the Company in Saratoga Springs, New York, except for business travel related to business and activities
of the Company.

    	 

    	 

    

3.           Compensation
and Benefits. 

(a)           Base
Salary. During the Employment Term, in full consideration of the performance by the Executive of the Executive’s obligations
hereunder (including any services as an officer, employee, or member of any committee of any affiliate of the Company, or otherwise
on behalf of the Company), the Executive shall receive from the Company a base salary (the “Base Salary”) at
an annual rate of $240,000 per year, payable in accordance with the normal payroll practices of the Company then in effect. The
Base Salary shall be subject to annual review by the Board or the Compensation Committee of the Board. Pursuant to such annual
review the Base Salary, as then currently in effect, may be adjusted (but not decreased), at the discretion of the Board.

(b)           Annual
Bonus. During the Employment Term, the Executive shall also receive, in respect of each fiscal year during which the Employment
Term is in effect, a performance-based cash bonus (the “CEO Annual Bonus”) as determined and payable in accordance
with Exhibit A hereto. The CEO Annual Bonus is in lieu of any other bonus program which may be available to other management employees
of the Company. For fiscal year ending June 30, 2015, the CEO Annual Bonus will be based only on Sections (a) Discretionary and
(d) Miscellaneous of Exhibit A, however for fiscal year ending June 30, 2015 the CEO Annual Bonus shall not be less than $25,000.
The fixing of a minimum CEO Annual Bonus for the fiscal year ending June 30, 2015 shall not give rise to an implication that the
Executive has an entitlement to a minimum bonus for any future fiscal year.

(c)           Equity
Compensation. The Executive shall be a participant in the Company’s Employee Retirement Plan and Trust (“ESOP”)
in accordance with the terms and conditions of the ESOP. Beginning in fiscal year 2016, the Executive shall be entitled to the
award of stock options or other stock-based rights by the Board from time to time in its discretion. As of the Effective Date the
Executive shall be granted options for 10,000 shares of the Company’s common stock at the closing price as quoted on the
NYSE Market on such date and subject in all respects to the terms of the Company Stock Option Plan. For fiscal year ending June
30, 2015 Executive shall not be entitled to receive any other Equity Compensation.

(d)           Benefits.
During the Employment Term, the Executive and his eligible dependents shall be entitled to participate in the employee health and
benefit plans, policies, programs, and arrangements as may be amended from time to time, on the same terms as senior executives
of the Company to the extent the Executive meets the eligibility requirements for any such plan, policy, program, or arrangement.

(e)           401(k)
Retirement. During the Employment Term, the Executive shall be entitled to participate in the Company 401(k) retirement plan
on the same terms as all other Company employees.

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(f)           Vacation.
During the Employment Term, four weeks of paid vacation during each fiscal year to be used in accordance with the Company’s
policies in effect from time to time. For fiscal year ending June 30, 2015 the Executive’s paid vacation shall be prorated
(based on the number of days worked). Executive’s right to carry forward vacation time from year to year and/or be paid for
unused vacation shall be in accordance with the Company’s policies in effect from time to time.

(g)           Relocation
Expenses Reimbursement and Signing Bonus. The Company shall pay all of the Executive’s ordinary and necessary expenses
incidental to relocating from his current residence in Wisconsin, including but not limited to (i) travel and lodging
for Executive and his family to and from Executive’s current residence to the locale of his proposed new residence in connection
with Executive’s search for a new residence, (ii) the payment of any brokerage commissions in connection with
the sale of Executive’s current residence and the purchase of a new residence, (iii) all moving costs, including
shipping of household items and family vehicles, and all transportation costs, and (iv) temporary lodging of up to
six (6) months in connection with acquiring a new residence (collectively, the “Relocation Benefit”). The foregoing
shall not exceed in the aggregate $100,000 and shall expire December 31, 2015. To the extent the Relocation Expenses are less than
$100,000 the Executive shall be entitled to receive the difference as a Signing Bonus. In no event shall the Relocation Expense
Benefit/Reimbursement and Signing Bonus exceed $100,000 in aggregate.

(h)           Expense
Reimbursement. In addition to and not in lieu of any other payments to be made to the Executive hereunder, the Company shall
reimburse the Executive for reasonable and documented business expenses incurred by the Executive during the Employment Term in
accordance with the Company’s expense reimbursement policies then in effect, including but not limited to all travel, lodging
and meal expenses in connection with Executive’s travel in connection with providing his services hereunder.

4.           Withholding.
The Executive shall be solely responsible for taxes imposed on the Executive by reason of any compensation and benefits provided
under this Agreement, during the Employment Term and thereafter, all such compensation and benefits shall be subject to applicable
withholding as determined by the Company and the Executive shall cooperate with the Company, as necessary, to enable the Company
to discharge its withholding obligations.

5.           Termination.

(a)           Events
of Termination. The Executive’s employment with the Company and the Employment Term shall terminate upon the expiration
of the Employment Term or upon the earlier occurrence of any of the following events (the date of termination, the “Termination
Date”):

(i)           The termination
of employment by reason of the Executive’s death.

(ii)           The
termination of employment by the Company for Cause.

(iii)           The
termination of employment by the Company for Disability.

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(iv)           The
termination of employment by the Company other than for Cause.

(v)           The termination
of employment by the Executive.

(b)           Certain
Definitions. For purposes of this Agreement:

(i)           “Disability”
means: (A) the Executive’s disability as determined under the long-term disability plan of the Company as in effect
from time to time; or (B) if no such plan is in effect, the inability of the Executive to perform his duties, services,
and responsibilities hereunder by reason of a physical or mental infirmity, as reasonably determined by the Board, for a total
of 120 days in any twelve-month period during the Employment Term.

(ii)           “Cause”
means: (A) the failure of the Executive to perform his duties or his negligent performance of such duties (other than any
such failure due to the Executive’s physical or mental illness) that has caused or is reasonably expected to result in injury
to the Company or any of its affiliates; (B) the Executive having engaged in misconduct that has caused or is reasonably
expected to result in injury to the Company or any of its affiliates; (C) a violation by the Executive of a Company policy
that has caused or is reasonably expected to cause an injury to the Company; (D) the breach by the Executive of any of his
obligations under this Agreement; (E) failure by the Executive to timely comply with a lawful and reasonable direction or
instruction given to him by the Board; or (F) Executive having been convicted of, or entering a plea of guilty or nolo
contendere to a crime; provided however, notwithstanding the foregoing, that in the case of clauses (A)–(E),
before the Company shall have the right to terminate the Executive for Cause, (i) the Company shall first be required to
give the Executive 10 days’ prior written notice (the “Notice Period”) of such action, which written notice
(the “Breach Notice”) shall set forth in the nature of Executive’s alleged breach, and, if such action
is capable of being cured, the Executive shall not have cured such action to the satisfaction of the Company within the Notice
Period; thereafter, the termination shall take effect with no further action required of the Company.

(c)           Cooperation.
In the event of termination of the Executive’s employment for any reason (other than death), the Executive, at no cost to
Executive, shall cooperate with the Company and to be available to the Company for a reasonable period of time thereafter with
respect to matters arising out of the Executive’s employment hereunder or any other relationship with the Company, whether
such matters are business-related, legal, or otherwise.

(d)           Resignation
from All Positions. Upon termination of the Executive’s employment for any reason, the Executive shall be deemed to have
resigned from all other positions with the Company including, without limitation, as an officer and director, as applicable.

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6.           Termination
Payments. The Executive shall be entitled to certain payments upon termination of his employment as follows:

(a)           Termination
for Cause; Voluntary Termination by Executive. In the event that the Executive’s employment is terminated for
Cause or the Executive voluntarily terminates his employment, the Executive shall be entitled to receive only: (i)
any accrued and unpaid Base Salary as of the Termination Date; and (ii) all accrued and unpaid benefits under any benefit
plans, policies, programs, or arrangements in which the Executive participated as of the Termination Date in accordance with the
applicable terms and conditions of such plans, policies, programs, or arrangements (all of the foregoing, collectively, the “Accrued
Compensation”). In the event of termination for cause or voluntary termination by Executive there shall be No
CEO Annual Bonus.

(b)           Termination
for Death or Disability. In the event that the Executive’s employment is terminated pursuant to Section 5(a)(i) or 5(a)(iii)
hereof, the Executive shall be entitled to receive: (i) the Accrued Compensation; and (ii) as provided in the CEO
Annual Bonus.

(c)           Termination
without Cause. In the event that the Executive’s employment is terminated pursuant to Section 5(a)(iv) hereof, the Executive
shall be entitled to receive: (i) the Accrued Compensation; (ii) as provided in the CEO Annual Bonus; (iii)
severance pay (“Severance Pay”) equal to 6 months of Base Salary at the rate in effect on the Termination Date. The
severance pay contemplated by clause (iii) of the immediately preceding sentence shall be paid in equal installments in
accordance with the Company’s regular payroll practices, commencing on the first payroll period following the thirtieth day
after the Termination Date; (iv)to the extent available, continuation of medical benefits for a period of 6 months (from
Termination Date). Severance Pay shall be paid only under this Section 6(c).

(d)           Release.
Notwithstanding any other provision of this Agreement, no Severance Pay or other benefits shall become payable under Section 6(c)
of this Agreement unless and until the Executive executes a general release of claims substantially similar to the form of release
annexed hereto as Exhibit B, and such release has become irrevocable within 30 days following the Termination Date, provided
that the Executive shall not be required to release any indemnification rights that he may have under the Company’s Certificate
of Incorporation or By-Laws.

(e)           Full
Satisfaction. The payments to be provided to the Executive pursuant to this Section 6 upon termination of the Executive’s
employment shall constitute the exclusive payments in the nature of severance or termination pay or salary continuation that shall
be due to the Executive upon a termination of employment, and shall be in lieu of any other such payments under any plan, program,
policy, or other arrangement that has heretofore been or shall hereafter be established by the Company.

7.           Executive
Covenants.

    	5

    	 

    

(a)           Confidentiality.
The Executive agrees and understands that in the Executive’s position with the Company, the Executive will be exposed to
and will receive information relating to the confidential affairs of the Company, including but not limited to, information regarding
the Company’s ownership, technical information, intellectual property, business and marketing plans, strategies, customer
information, other information concerning the products, promotions, development, financing, expansion plans, business policies
and practices of the Company, and other forms of information considered by the Company reasonably and in good faith to be confidential
and in the nature of trade secrets (“Confidential Information”). Confidential Information does not include information
that is or becomes widely available in any industry in which the Company does business other than as a result of any act or omission
by the Executive in violation of this Agreement or law. The Executive agrees that during the Employment Term and thereafter, the
Executive shall not, other than on behalf of the Company, disclose such Confidential Information, either directly or indirectly,
to any third person or entity without the prior written consent of the Company; provided that disclosure may be made to
the extent required by law, regulation, or order of a regulatory body, in each case so long as the Executive gives the Company
as much advance notice of the disclosure as possible to enable the Company to seek a protective order, confidential treatment,
or other appropriate relief. This confidentiality covenant has no temporal, geographical, or territorial restriction. Upon termination
of the Employment Term, the Executive shall promptly supply to the Company: (i) all property of the Company; and (ii)
all notes, memoranda, writings, lists, files, reports, customer lists, correspondence, tapes, disks, cards, surveys, maps, logs,
machines, technical data, or any other tangible product or document containing Confidential Information produced by, received by,
or otherwise submitted to the Executive during or prior to the Employment Term.

(b)           Noncompetition.
By and in consideration of the Company entering into this Agreement and the payments to be made and benefits to be provided by
the Company hereunder, and further in consideration of the Executive’s exposure to Confidential Information, the Executive
shall not, during the Noncompetition Term (as defined below), directly or indirectly, own, manage, operate, join, control, be employed
by, or participate in the ownership, management, operation or control of, or be connected in any manner with, including but not
limited to holding any position as a shareholder, director, officer, consultant, independent contractor, employee, partner, or
investor in, any Restricted Enterprise (as defined below); provided that in no event shall ownership of less than 1% of
the outstanding equity securities of any issuer whose securities are registered under the Securities and Exchange Act of 1934,
as amended, standing alone, be prohibited by this Section 7(b). Following termination of the Employment Term, upon request of the
Company during the Noncompetition Term, the Executive shall notify the Company of the Executive’s then-current employment
status.

(c)           Nonsolicitation.
During the Noncompetition Term, the Executive shall not, and shall not cause any other person to: (i) interfere with or
harm, or attempt to interfere with or harm, the relationship of the Company with any Restricted Person (as defined below); or (ii)
endeavor to entice any Restricted Person away from the Company.

    	6

    	 

    

(d)           Nondisparagement.
During the Employment Term and thereafter, neither the Executive, on the one hand, and the Company, its directors, officers, or
employees, on the other hand (collectively, the “Company Parties”), shall make or publish any disparaging statements
(whether written or oral) regarding the other, except as shall be necessary for the Executive or the Company Parties to enforce
any agreements between the parties or to comply with any requirements or obligations under law.

(e)           Proprietary
Rights. The Executive assigns all of the Executive’s interest in any and all inventions, discoveries, improvements, and
patentable or copyrightable works initiated, conceived, or made by the Executive, either alone or in conjunction with others, during
the Employment Term and related to the business or activities of the Company to the Company or its nominee. Whenever requested
to do so by the Company, the Executive shall execute any and all applications, assignments, or other instruments that the Company
in good faith deems necessary to apply for and obtain trademarks, patents, or copyrights of the United States or any foreign country
or otherwise protect the interests of the Company therein. These obligations shall continue beyond the conclusion of the Employment
Term and the Noncompetition Term with respect to inventions, discoveries, improvements, or copyrightable works initiated, conceived,
or made by the Executive during the Employment Term.

(f)           Remedies.
The Executive agrees that any breach of the terms of this Section 7 would result in irreparable harm to the Company for which the
Company would have no adequate remedy at law; the Executive therefore also agrees that in the event of such breach or any threat
of breach, the Company shall be entitled to seek equitable relief to prevent such breach, threatened breach, or continued breach
by the Executive and any and all persons or entities acting for or with the Executive, in addition to any other remedies to which
the Company may be entitled at law or in equity including the recovery of reasonable attorneys fees. The terms of this Section
7 shall not prevent the Company from pursuing any other available remedies for any breach or threatened breach hereof, including
but not limited to, the recovery of damages from the Executive including reasonable attorneys fees. The Executive and the Company
further agree that the provisions of the covenants contained in this Section 7 are reasonable and necessary to protect the business
of the Company because of the Executive’s access to Confidential Information and his material participation in the operation
of such business. Should a court, arbitrator, or other similar authority determine, however, that any provisions of the covenants
contained in this Section 7 are not reasonable or valid, either in period of time, geographical area, or otherwise, the parties
hereto agree that such covenants are to be interpreted and enforced to the maximum extent to which such court or arbitrator deems
reasonable or valid. The existence of any claim or cause of action by the Executive against the Company, whether predicated on
this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants contained in this
Section 7.

(g)           Certain
Definitions. For purposes of this Agreement:

(i)           The “Noncompetition
Term” means the period beginning on the date of this Agreement and ending 12 months following the Termination Date,
provided that if the Executive’s employment is terminated under Section 5(a)(iv) and the Executive delivers the release substantially
in the form of Exhibit B, the Noncompetition Term for purposes of Section 7(b) only shall end seven months following the Termination
Date.

    	7

    	 

    

(ii)           “Restricted
Enterprise” means: any person, corporation, partnership, or other entity that is engaged in the Territory with a
business or product lines of the same or similar nature as those offered by the Company; For purposes of this definition, “product
lines of the same or similar nature as those offered by the Company” shall also include, at any date, potential new product
lines the development of which the Company has, during the 12 months preceding such date, devoted more than de minimis resources.

(iii)           “Restricted
Person” means any person who at any time during the two year period prior to the Termination Date, was an employee,
independent contractor or customer of the Company, or otherwise had a material business relationship with the Company.

(iv)           The
“Territory” means, the United States of America and other areas of the world where the Company conducts
business.

8.           Representations
by the Executive. The Executive represents to the Company that (i) his execution and performance of this Agreement does not
violate any agreement or obligation (whether or not written) that the Executive has with or to any person or entity including,
but not limited to, any prior employer, (ii) he is not subject to the terms of any noncompetition, non-solicitation or confidentiality
agreement with any prior employer, and (iii) he has not been convicted of, or entered a plea of guilty or nolo contendere
to a crime that constitutes a felony in any jurisdiction (or comparable crime in any jurisdiction which uses a different nomenclature).
In the event of a determination by the Board that the Executive is in material breach of either of these representations, the Company
may terminate the Executive’s employment, and any such termination shall be considered a termination for Cause under Section
5(a)(ii).

9.           No Waiver
of Rights. The failure to enforce at any time the provisions of this Agreement or to require at any time performance by any
other party of any of the provisions hereof shall in no way be construed to be a waiver of such provisions or to affect either
the validity of this Agreement or any part hereof, or the right of any party to enforce each and every provision in accordance
with its terms.

10.           Notices.
Every notice relating to this Agreement shall be in writing and shall be given by personal delivery, by a reputable same-day or
overnight courier service (charges prepaid), by registered or certified mail, postage prepaid, return receipt requested, or by
facsimile to the recipient with a confirmation copy to follow the next day to be delivered by personal delivery or by a reputable
same-day or overnight courier service to the appropriate party’s address or fax number below (or such other address and fax
number as a party may designate by notice to the other party):

	If to the Executive:	To the Executive at the address most recently contained in the Company’s records.

 

    	8

    	 

    

	If to the Company:	Chairman of the Board
	 	Espey Mfg. & Electronics Corp.
	 	233 Ballston Avenue
	 	Saratoga Springs, New York 12866
	 	 

11.           Binding
Effect/Assignment. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective
heirs, executors, personal representatives, estates, successors (including, without limitation, by way of merger), and permitted
assigns. Notwithstanding the provisions of the immediately preceding sentence, the Executive shall not assign all or any portion
of this Agreement without the prior written consent of the Company.

12.           Entire
Agreement. This Agreement sets forth the entire understanding of the parties hereto with respect to the subject matter hereof
and supersedes all prior agreements, written or oral, between them as to such subject matter, except that certain Confidentiality
Agreement dated November 19, 2014 shall be deemed part of this Agreement

13.           Severability.
If any provision of this Agreement, or any application thereof to any circumstances, is invalid, in whole or in part, such provision
or application shall to that extent be severable and shall not affect other provisions or applications of this Agreement.

14.           Governing
Law; and Consent to Jurisdiction. This Agreement shall be governed by and construed in accordance with the internal laws of
the State of New York, without reference to the principles of conflict of laws.

15.           Modifications
and Waivers. No provision of this Agreement may be modified, altered, or amended except by an instrument in writing executed
by the parties hereto. No waiver by any party hereto of any breach by any other party hereto of any provision of this Agreement
to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions at the time or at any prior or
subsequent time.

16.           Headings.
The headings contained herein are solely for the purposes of reference, are not part of this Agreement, and shall not in any way
affect the meaning or interpretation of this Agreement.

17.           Applicability
of Section 409A of the Code.

(a)           Generally.
This Agreement is intended to comply with Sections 409A of the Internal Revenue Code of 1986, as amended and the Treasury Regulations
and IRS guidance thereunder (“Section 409A”). Notwithstanding anything to the contrary, this Agreement shall,
to the maximum extent possible, be administered, interpreted, and construed in a manner consistent with Section 409A. If any provision
of this Agreement provides for payment within a time period, the determination of when such payment shall be made within such time
period shall be solely in the discretion of the Company.

(b)           Reimbursements.
To the extent that any reimbursement, fringe or other in-kind benefit, or other, similar plan or arrangement in which the Executive
participates during the Employment Term or thereafter provides for a “deferral of compensation” within the meaning
of Section 409A: (i) the amount of expenses eligible for reimbursement provided to the Executive during any calendar year
will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided to the Executive in any other calendar
year; (ii) the reimbursements for expenses for which the Executive is entitled to be reimbursed shall be made as soon as
practicable following the date on which such expenses were incurred and documented to the Company, but in no event later than the
last day of the calendar year following the calendar year in which the applicable expense is incurred; (iii) the right to
payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit; and (iv)
the reimbursements shall be made pursuant to objectively determinable and nondiscretionary Company policies and procedures regarding
such reimbursement of expenses.

    	9

    	 

    

(c)           Termination
Payments. If and to the extent required to comply with Section 409A, no payment or benefit required to be paid under this Agreement
on account of termination of the Executive’s employment shall be made unless and until the Executive incurs a “separation
from service” within the meaning of Section 409A. In addition, with respect to any payments or benefits subject to
Section 409A, reference to Executive’s “termination of employment” (and corollary terms) from the Company shall
be construed to refer to the Executive’s “separation from service” (as determined under Treas. Reg. Section 1.409A-1(h),
as uniformly applied by the Company) from the Company and all entities aggregated with the Company under Section 409A. Notwithstanding
anything to the contrary contained herein, if the Executive is a “specified employee” within the meaning of Section
409A, and if any or all of the payments or the continued provision of any benefits under Section 6 or any other provision of this
Agreement are subject to Section 409A and payable upon a separation from service, then such payments or benefits that the Executive
would otherwise be entitled to receive during the first six months after termination of employment shall be accumulated and paid
or provided on the first business day after the six-month anniversary of termination of employment (or within 30 days following
the Executive’s death, if earlier) in a single lump sum and any remaining payments and benefits due under this Agreement
shall be paid or provided in accordance with the normal payment dates specified for them herein.

18.           Purchase
of Company Stock. The Executive agrees to purchase on the market 2,500 shares of Company stock within 24 months of the date
of this Agreement. Any equity compensation provided by the Company including stock options and ESOP shall not be counted or considered
in meeting the 2,500 shares requirement.

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

[Signature Page Follows]

    	10

    	 

    

IN WITNESS WHEREOF, the Company and the
Executive have caused this Agreement to be duly executed effective as of the day and year first above written.

	 	ESPEY MFG.& ELECTRONICS CORP.
	 	 
	 	 
	 	By:	 /s/ Howard Pinsley
	 		Name: Howard Pinsley
	 		Title: Chairman of the Board
	 	 	 
	 	 	 
	 	EXECUTIVE
	 	 
	 	 
	 	/s/ Patrick Enright Jr. 
	 	PATRICK ENRIGHT, JR.

    	11

    	 

    

EXHIBIT
A

CEO
ANNUAL BONUS PLAN Compensation Committee Proposed 

Espey Fiscal Year Performance Bonus Plan 

Applies to: 

President and Chief Executive Officer

Performance bonus determined
by Board based on sum of three metrics A + B + C; subject to maximum not to exceed annual base salary

		(a)	Discretionary as determined by the Espey Board of Directors ("Board")

		·	75,000 maximum bonus at discretion of Board

		·	Board to make performance assessment by Board meeting following end of fiscal year

		(b)	Increase in Operating Earnings from prior fiscal year-end based on audited Financial Statements

		·	$100,000 maximum bonus

		·	Increase % over prior fiscal year operating earnings x 2 x $100,000

		·	For example, if operating earnings increase 10% from prior fiscal year,
this category would earn 10% from prior fiscal year, this category would earn 10% x 2 x $100,000 = $20,000

		(c)	Increase in Sales plus Backlog from prior fiscal year-end

		·	$100,000 maximum bonus

		·	Increase % of the sum of prior fiscal year net sales and backlog compared with sum of current
fiscal year sales plus back log x 2 x $100,000

		·	For example, if the sum of prior fiscal year net sales and backlog increases 15% vs the prior year, the bonus earned would
be; 15% x 2 x $100,000 = $30,000

		·	Assumes and requires normal gross profit consistent with past practices

		(d)	Miscellaneous Requirements

		·	Subject to full Board approval

		·	President and CEO must be employed on December 31 (following end of prior bonus fiscal year) to
be eligible to receive performance bonus for prior fiscal year

		·	This plan is subject to change and revisions as determined by Board

		·	The Board and CEO shall endeavor to renegotiate this plan and incorporate the terms and provisions
of a new plan beginning July 1, 2015.

    	 

    	 

    

EXHIBIT
B

SEPARATION
AGREEMENT AND GENERAL RELEASE

This “Separation Agreement and General
Release” (hereinafter “Release”), signed by PATRICK ENRIGHT, JR. (hereinafter “you” or “your”)
and in favor of Espey Mfg. & Electronics Corp. (hereinafter “the Company”) is for the purpose of amicably and fully
resolving any and all claims, disputes and issues arising out of your employment at the Company and the termination of that employment.

As your employment with the Company terminated
on _________________(“your Termination Date”), and

As you have agreed to provide this Release
to the Company in return for the consideration set forth herein;

Therefore, in consideration of the mutual
covenants and promises hereinafter provided and of the actions to be taken pursuant thereto, you agree as follows:

1.           i)           You
hereby accept the sums set forth in Section 1(b) below. Except as provided in said Section 1(b) and in Section 5 below, you will
not be entitled to any other compensation or benefits from the Company.

(b)           (1)           The
Company will make severance payments to you in the gross aggregate amount of $_______________, (representing ___ months of your
base salary) less all withholdings and deductions required by law, to be paid according to your regular payroll cycle until fully
paid.

(ii)           The
Company will commence making severance payments to you beginning on the first regular payroll after the thirtieth day following
your Termination Date.

(iii)           To
the extent any taxes may be due on the payments provided in this Agreement, beyond any withheld by the Company, you shall pay them
yourself and shall indemnify and hold the Company harmless from any tax claims or penalties resulting from such payments. You further
agree to provide the Company any and all information pertaining to you upon request as reasonably necessary for the Company and
other entities released herein to comply with applicable tax laws. You hereby acknowledge that the Company has not made any representations
regarding the tax consequences of the payments provided in this Release and that the Company has not provided you with any tax
advice regarding the payments provided in this Release, including without limitation advice on the treatment of the payments under
Section 409A of the Internal Revenue Code.

(c)                      You
shall be entitled to any continuation of your medical benefits until the end of the ___-month period during which severance pay
is payable pursuant to Section 1(b) above, at the same premium rate that active employees of the Company pay for such medical benefits,
with the Company paying the difference between your premium rate and the cost of such medical benefits, as permitted under Section
6(c) of the Employment Agreement dated ______, 201__. Nothing in this Release shall affect your entitlement to continuation of
your medical benefits under Section 4980B of the Internal Revenue Code of 1986, as amended, or similar state law.

    	13

    	 

    

OR (c)           If
you elect to continue your medical benefits under COBRA, the Company will pay your portion of the COBRA premium for the period
during which severance pay is payable pursuant to Section 1(b) above.

[If Applicable]           [(d)           You
shall be entitled to the Pro Rata Bonus in accordance with the terms of your Employment Agreement dated ______, 201__.]

[If Applicable]           [The Company
will make a payment to you in the gross amount of $__________ in accordance with Section 6(c) Termination without Cause of the
Employment Agreement dated ______, 201_.

2.           In exchange
for the sums and benefits set forth above, you agree to release the Company, its subsidiaries, its affiliated and related entities
and their current and former shareholders, officers, directors, agents, employees, successors and assigns (hereinafter collectively
the “Released Parties”) from all claims, demands, actions, and liabilities, whether known or unknown
(except as expressly set forth in Section 4 below), you may have against them or any one of them in any way related to your employment
at the Company and/or the termination of that employment. By way of example, the types of claims that are covered under this Release
include, but are not limited to:

(a)           all
“wrongful discharge” claims, “constructive discharge” claims, claims relating to any contracts of employment,
expressed or implied, any covenants of good faith and fair dealing, expressed or implied, any personal wrongs or injuries and any
claim for attorneys fees;

(b)           any
claims that could be brought pursuant to Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000-1 et seq.,
the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Americans with Disabilities Act,
42 U.S.C. § 12101 et seq., the Employee Retirement Income Security Act, 29 U.S.C. § 1131 et seq.,
the Family and Medical Leave Act, 29 U.S.C. § 2601 et seq. the Lilly Ledbetter Fair Pay Act of 2009, Pub.
L. No. 111L-2; the New York Human Rights Law, McKinney’s Executive Law §290, et seq., (all as may have been amended);

(c)           any
claims that could be brought under any other federal, state, county or municipal statute or ordinance dealing with (i) discrimination
in employment on the basis of sex, race, national origin, religion, disability, age, marital status, affectional or sexual orientation
or other reason; (ii) employee whistleblower protection; and (iii) employee family leave rights; and

(d)           all
other claims including those of which you are not aware and those not specifically mentioned in this Release.

3.             (a)           You
agree that you will never sue or otherwise institute a claim of any kind against the Released Parties or any one of them for anything
that has happened up to now, whether such claim is presently known or unknown by you, in any way related to your employment
at the Company and/or the termination of that employment.

    	14

    	 

    

(b)           If
you breach the terms of this Release by suing the Company or the Company’s personnel, you agree that you will pay all costs
and expenses incurred by the Company and the Company’s personnel in defending against the suit, including reasonable attorneys’
fees.

(c)           Additionally,
if you breach the terms of this Release, you agree that the Company shall have the right to obtain, by way of counterclaim or other
lawful means, repayment of the full amount paid to you as consideration for this Release.

4.           Notwithstanding
anything in this Release to the contrary, this Release does not include any claims you may have with respect to any medical, prescription,
dental, flexible spending account, life insurance, retirement and savings or other benefits provided by plans maintained by the
Company to which you may be entitled, any rights that you may have under this Release, Company’s Employee Stock Ownership
Plan or outstanding stock options granted to you by the Company, any rights to indemnification you may have under the Company’s
Certificate of Incorporation or By-Laws, or to any payments due you under this Release.

5.           You agree
that you have executed this Release on your own behalf and also on behalf of any heirs, agents, representatives, successors and
assigns that you may have now or in the future.

6.           You acknowledge
and agree that the benefits provided herein exceed any amount to which you would otherwise be presently entitled under the Company’s
policies, procedures and benefit programs and/or under any applicable law without providing this Release, and constitute valuable
consideration for this Release.

7.           You acknowledge
that, by requesting this Release, the Company does not admit, expressly or implicitly, that it has engaged in any wrongdoing whatsoever.

8.           iii)           You
hereby acknowledge and agree that Section _______ of your Employment Agreement dated _______, 201__, which contains various covenants
as to Confidential Information, non-competition and non-solicitation shall remain in full force and effect according to its terms.

(b)           You
further acknowledge and represent that you have returned to the Company all Confidential Information (including copies), all other
documents, and all tangible property of the Company, including, but not limited to, keys, credit cards, cell phones, computers
and other electronic equipment.

9.           You and the
Company agree that neither you nor the Company will make any statements, orally or in writing (including electronic communications),
that disparage the business reputation or good will of the Released Parties or any one of them or of you.

    	15

    	 

    

10.           You agree
to keep both the existence and the terms of this Release completely confidential, except that you may discuss this Release with
your attorney, accountant or other tax professional, and your spouse, and (b) to the extent necessary to enforce your rights hereunder.

11.           You acknowledge
that you have been advised of the following:

(a)           you
have the right to and should consult with an attorney prior to signing this Release;

(b)           you
have 21 days to decide whether to sign this Release and deliver it to ________________________, at the Company’s offices,
233 Ballston Avenue, Saratoga Springs, New York 12866.

(c)           if
you sign this Release, you have up to 7 days to revoke it and the Release will not become effective until this 7-day period
has expired;

12.           This Release
is not effective or enforceable for 7 days after you sign it and you may revoke it during that time. To revoke, a written notice
of revocation must be delivered to ____________________________, at the Company’s offices at the above address, within 7
days after you sign this Release. The revocation must be:

(a)           sent
by certified mail within the 7-day period; and

(b)           properly
addressed to ________________ at the above address.

If _______________ does not receive a written
verification in accordance with the foregoing terms, you will not be able to rescind this Release.

13.           You agree that
this Release contains the entire agreement of the parties and that this Release cannot be amended, modified, or supplemented in
any respect except by the written agreement of both parties.

14.           You agree
that if any term or provision of this Release or the application thereof to any alleged claim or party or circumstances, shall
to any extent be determined to be invalid, void, or unenforceable, the remaining provisions and any application thereof shall nevertheless
continue in full force and effect without being impaired or invalidated in any way. The parties further agree to replace any such
void or unenforceable provision of this Release with a valid and enforceable provision that will achieve, to the extent possible,
the economic, business or other purposes of the void or unenforceable provision.

15.           You agree
that this Release shall be governed by the laws of the State of New York without giving effect to any conflicts of law principles.
Disputes arising under this Release shall be subject to the dispute resolution provisions of Section 14 of the Employment Agreement
dated ______, 201__.

16.           This Agreement
will not become effective until the expiration of the 7-day revocation period set forth in paragraph 12 above.

    	16

    	 

    

17.           You
hereby acknowledge that you have read this Release in its entirety, understand fully the meaning and significance of all its terms,
and hereby voluntarily and knowingly agree to accept all of its terms. You further acknowledge that you have not relied on any
representations, promises, or agreements of any kind made to you in connection with your decision to sign this Release except
for the agreements set forth in the Release.

	 	 
	 	 
	 	Date:

 

 

 

    	17

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