Document:

exv10w1

 

Exhibit
10.1

MUTUAL RELEASE AND SETTLEMENT AGREEMENT

     This Mutual Release and Settlement Agreement (“Settlement Agreement”) is made and entered into
by and among the following entities (all collectively referred to below as the “Parties” or
referred to individually as a “Party”):

     (a) Maxim
Integrated Products, Inc. and its wholly owned subsidiary Dallas
Semiconductor, Inc. (collectively “Maxim”);

     (b) Sumitomo Bakelite Co., Ltd. (“Sumitomo Bakelite Co.”);

     (c) Sumitomo Plastics America, Inc. (“Sumitomo Plastics,” and, together with Sumitomo Bakelite
Co., “Sumitomo Bakelite”) and

     (d) Amkor Technology, Inc. (“Amkor”);

     (e) including, for each of the foregoing, its predecessors, successors, parents, subsidiaries,
related entities, officers, directors, attorneys, agents, and employees.

RECITALS

     A. Differences have arisen among various parties to this Settlement Agreement concerning,
among other matters, the responsibility for the alleged failure of certain of Maxim’s semiconductor
chips, integrated circuit devices or other products distributed by Maxim that were assembled using
a molding compound supplied by Sumitomo Bakelite containing inorganic phosphorus as a flame
retardant (referred to hereinafter as “Maxim Chips”).

     B. On July 18, 2003, Maxim commenced an action against Sumitomo Bakelite and Amkor in the
Superior Court of the State of California, County of Santa Clara, Case No. CV001310. Maxim
subsequently amended its complaint, through a Third Amended Complaint, and Amkor filed a
cross-complaint against Sumitomo
Bakelite Co., Ltd. The various iterations of the action referred to in this paragraph are
collectively referred to herein as the “Maxim Litigation.”

 1 of 9

 

     C. On April 27, 2006, Maxim and Sumitomo Bakelite participated in a mediation before retired
Judge Eugene Lynch. By agreement, Sumitomo Bakelite had authority to negotiate a settlement on
behalf of Amkor at the mediation as well. Maxim and Sumitomo Bakelite were represented by counsel
at the mediation, and counsel for Amkor was consulted during the mediation. These negotiations led
to a compromise and settlement of the Maxim Litigation approved by all Parties.

     D. The Parties to this Settlement Agreement wish to settle hereby any and all disputes among
them relating to the Maxim Chips or the Maxim Litigation. Specifically, it is the intent of the
Parties hereto to resolve finally and completely all disputes and claims among Maxim, Sumitomo
Bakelite Co., Sumitomo Plastics America and Amkor that relate in any way to the Maxim Chips or that
were or could have been asserted in the Maxim Litigation.

TERMS

     1. Effective Date

          (a) The effective date of this Settlement Agreement shall be April 27, 2006, the date on which
the parties executed a settlement agreement at the mediation of the Maxim Litigation. When this
Settlement Agreement has been executed by all parties, the settlement agreement executed at the
mediation shall become null and void, consistent with paragraph 16 of this Settlement Agreement.

     2. Payment

          (a) Sumitomo Bakelite and Amkor will pay to Maxim a combined settlement payment in the amount
of $7,000,000 (Seven Million Dollars) (the “Settlement Payment”). Sumitomo Bakelite’s portion of
the Settlement Payment shall be $4,000,000 (Four Million Dollars), and Amkor’s portion shall be
$3,000,000 (Three Million Dollars). Payment shall be made on the schedule set forth in this
Paragraph 2.

 2 of 9

 

          (b) On
or before May 25, 2006, counsel for Sumitomo Bakelite and counsel for Amkor shall each
notify counsel for Maxim by facsimile or e-mail (with a copy to counsel for the other defendant),
with confirmation by telephone, that their clients are prepared to deliver their portion of the
Settlement Payment by wire transfer. Upon receiving that notification, counsel for Maxim shall
file with the Court the dismissals identified in paragraph 9 of this Settlement Agreement, and
shall serve on counsel for Sumitomo Bakelite and Amkor file stamped copies of such dismissals, by
facsimile and either overnight mail or by hand.

          (c) Within twenty-four hours of receipt of the overnight mail or hand delivery copies of the
file stamped copies of the dismissals, Sumitomo Bakelite and Amkor shall each deliver their portion
of the Settlement Payment to Maxim by wire transfer. The Settlement Payment will be made to the
following account by wire transfer:

	 	 	 	 	 
	 
	 	Bank:	 	Bank of America NT & SA
	 
	 	 	 	Customer Service America 1233
	 
	 	 	 	1850 Gateway Boulevard
	 
	 	 	 	Concord, California 94520
	 
	 	ABA #:	 	121000358
	 
	 	Swift Code:	 	BOFAUS6S
	 
	 	Beneficiary :	 	maxim Integrated products
	 
	 	Account #:	 	1233-257414

     3. Releases

     In consideration of the mutual promises and covenants contained herein, including the payments
as set forth above, and for other good and sufficient consideration, receipt of which is hereby
acknowledged, the Parties, including for each predecessors, successors, parent, subsidiaries,
related entities, insurers, officers, directors, attorneys, agents, and employees, hereby fully and
forever, as broadly as possible, release, discharge, and covenant not to sue or otherwise institute
legal or administrative proceedings against one another with respect
to any dispute relating to or arising from any claim of any failure
of a Maxim Chip alleged to be due to the use of Sumitomo Bakelite
molding compounds containing inorganic
phosphorus as a flame

 3 of 9

 

retardant, or any dispute that was asserted or that could have been asserted in the Maxim
Litigation, or related to the institution, prosecution, defense, and settlement of that litigation
(except enforcement of the Settlement Agreement), including without limitation claims for breach of
express or implied contract, breach of express or implied warranty, breach of the implied covenant
of good faith and fair dealing, quantum meruit, fraud, negligent misrepresentation, express,
implied, or equitable indemnity, promissory estoppel, negligence, intentional or negligent
interference with contract or economic advantage, defamation, violation of the California
Commercial Code, the California Business and Professions Code, or any other statute, abuse of
process, malicious prosecution, and all other liabilities, claims, and injuries of every nature,
kind, and description, in law, equity, or otherwise, whether or not now known or ascertained, which
heretofore do or may exist between or among them connected with the events and transactions alleged
in the pleadings filed in the Maxim Litigation.

     4. Indemnification

     Maxim shall indemnify and hold harmless Sumitomo Bakelite and Amkor against any damages,
attorneys’ fees, and costs they incur to the extent that such damages, attorneys’ fees or costs are
incurred as a result of any claim of defective product sold or distributed by Maxim arising from
the use of Sumitomo Bakelite molding compounds containing inorganic phosphorus as a flame
retardant.

     5. No Admission of Wrongdoing

     Nothing contained in this Settlement Agreement shall constitute or be treated as an admission
of liability or wrongdoing by any Party. Nothing in this Settlement Agreement shall be admissible
in any future dispute involving any Party, except an action to enforce this Settlement Agreement.

 4 of 9

 

     6. Complete Defense

     The mutual release provided in this Settlement Agreement may be pleaded as a full and complete
defense to, and may be used as the basis for an injunction against, any action, suit, or other
proceeding which may be instituted, prosecuted, or attempted in breach of this release.

     7. Confidentiality

     All Parties and their attorneys agree that they shall not, except pursuant to a specific order
issued by a court of competent jurisdiction or as may otherwise be required by law, disclose to any
third party the terms of this Settlement Agreement or the consideration referred to herein.
However, nothing in this Settlement Agreement shall prevent any Party from disclosing information
that is already in the public domain, developed independently of this litigation, received without
an obligation of confidentiality, or information that is required to be disclosed by law (including without
limitation the rules of any stock exchange), pursuant to legal process or applicable accounting
rules, or in a lawsuit to enforce this Agreement. Nor does this Settlement Agreement preclude any
Party from stating that there was a settlement, that all claims and cross-claims were dismissed, or
that there was no admission of wrongdoing or liability with respect to the matters asserted in the
lawsuit. In addition any Party may disclose the terms of the Settlement Agreement to its
attorneys, accountants, and insurers.

     8. Waiver of Unknown Claims

     All Parties hereby represent and warrant that they understand and expressly waive any and all
rights and benefits conferred upon them by the provisions of section 1542 of the California Civil
Code, which provides:

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

 5 of 9

 

executing the release, which if known by him must have materially
affected his settlement with the debtor.

All Parties agree that the mutual release provided in this Settlement Agreement shall extend and
apply to all unknown, unsuspected, and unanticipated claims, demands, injuries, or damages against
one another related to or arising from any claim of any failure of a
Maximum Chip alleged to be due to the use of Sumitomo Bakelite molding
compounds containing inorganic phosphorus as flame retardant, or
related to the Maxim Litigation, and expressly waive any equivalent provision of any
statute of the United States or any other state or jurisdiction.

     9. Dismissal

     Consistent with Paragraph 2 above, the Parties will execute and file all papers necessary to
accomplish the dismissal with prejudice of the Maxim Litigation in its entirety, with prejudice.
These papers will be substantially in the form attached hereto as Exhibit A to this Settlement
Agreement.

     10. Costs

     Each Party shall bear its own costs and attorneys’ fees incurred in the Maxim Litigation.

     11. Governing Law

     This Settlement Agreement shall be governed, construed and enforced in accordance with the
laws of the State of California without regard to principles of choice of law or conflicts of law.

     12. Enforcement/Interpretation

     The Parties agree that the Honorable Jack Komar of the Superior Court of California, or if he
is not available, such other judge as may be assigned from the Santa Clara County Superior Court,
shall retain jurisdiction for purposes of enforcement and/or dispute resolution concerning this
Settlement Agreement.

 6 of 9

 

     13. Advice of Counsel

     Each Party affirms and acknowledges that it has executed this Settlement Agreement voluntarily
and without coercion, that it has not relied on any prior or contemporaneous written or oral
representations extrinsic or collateral to the terms of this Settlement Agreement, and that it has
obtained legal advice from its attorneys in entering into this Settlement Agreement. The Parties
expressly declare and agree that this
Settlement Agreement shall be deemed to have been drafted jointly by the Parties, and no Party
shall be treated as having drafted the agreement for purposes of construction. No ambiguities in
this Settlement Agreement may be resolved in favor of one Party because the other Party is the
drafter of this Settlement Agreement.

     14. Further Assurances

     Each Party agrees to cooperate in taking any actions and executing any documents that may be
necessary to give effect to the provisions of this Settlement Agreement.

     15. Protective Order

     Except as otherwise stated in this Settlement Agreement, the Parties agree that the Protective
Order entered in the Maxim Litigation shall remain in full force and effect notwithstanding this
Settlement Agreement.

     16. Entire Agreement

     This Settlement Agreement constitutes the entire agreement among the Parties pertaining to the
subject matter hereof and supersedes all prior and contemporaneous agreements, understanding,
negotiations and discussion, whether oral or written, between and among the Parties. No
supplement, modification, waiver or termination of the Settlement Agreement or any provision hereof
shall be binding unless executed in writing by each Party to be bound thereby.

     17. Remedies in the Event of Breach

     If any Party to this Settlement Agreement initiates legal action to enforce this Settlement

 7 of 9

 

Agreement, then any Party that is found (in a final decision from which no further appeal may be
brought) to have breached the Settlement Agreement shall be liable to each prevailing Party in such
action for its reasonable attorneys’ fees and costs.

     18. Joint Representation and Warranties

     Each Party to this Settlement Agreement represents and warrants: (a) that the execution and
delivery of this Settlement Agreement and the consummation of the transactions contemplated hereby
have been duly authorized by all necessary corporate or other actions; (b) that the execution and
delivery of this Settlement Agreement constitutes a legal and binding obligation of each respective
Party; (c) that it has not sold, assigned, or otherwise transferred any interest in the claims,
demands, debts, liabilities, causes of action, or suits that are the subject of this Settlement
Agreement, and will not do so; and (d) that the releases granted herein constitute legal and
binding obligations of the respective Parties hereto.

     19. Partial Invalidity

     If any provision in this Settlement Agreement is held by a court of competent jurisdiction to
be invalid, void or unenforceable, the remaining provisions of the Settlement Agreement shall
nevertheless continue in full force without being impaired or invalidated in any way.

     20. Authority

     Each Party hereto warrants that the individual signing this Settlement Agreement on behalf of
that Party has full authority to do so and that each Party intends to be bound by the signature of
the individual it designates to sign this Settlement Agreement.

     21. Counterparts/Execution by Faxed Signatures

     This Settlement Agreement may be executed in any number of counterparts, but all such
counterparts shall constitute but one and the same instrument and this Settlement Agreement shall
become effective upon the execution and exchange of counterpart
originals by each Party.

 8 of 9

 

In addition, this Settlement Agreement may be executed via
signatures transmitted by facsimile, and such signatures shall be deemed in all respects the same
as original signatures. Provided, however, that even if the Settlement Agreement is originally
executed using signatures transmitted by facsimile, the Parties will cooperate eventually to
provide copies of the Settlement Agreement with original signatures to any other Party that
requests such a copy.

     22. Headings The headings in each paragraph herein are for convenience of reference
only and shall be of no legal effect in the interpretation of the terms of this Settlement
Agreement.

     IN WITNESS WHEREOF, the undersigned have executed this Mutual Release and Settlement Agreement
on the day and the year written below.

	 	 	 	 	 	 	 
	Dated: May 24, 2006	 	MAXIM INTEGRATED PRODUCTS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Ed Medlin	 	 
	 

	 	 	 	 	 	 
	 	 	Its:    Vice President	 	 
	 
	 	 	 	 	 	 
	Dated: May 25, 2006	 	SUMITOMO BAKELITE CO., LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ T. Terasawa	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:
	 	Executive Officer, General Affairs & Human Resources Department	 	 
	 
	 	 	 	 	 	 
	Dated: May 24, 2006	 	SUMITOMO PLASTICS AMERICA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Hiroyuki Yamada	 	 
	 

	 	 	 	 	 	 
	 	 	Its:    Vice-President	 	 
	 
	 	 	 	 	 	 
	Dated: May 24, 2006	 	AMKOR TECHNOLOGY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ KENNETH T. JOYCE	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:	 	Executive Vice President & CFO	 	 
	 

	 	 	 	 	 	 

 9 of 9Unassociated Document

    EXHIBIT
      10.11

     

    

     

    ACKNOWLEDGMENT
      AND RELEASE AGREEMENT

     

    This
      Acknowledgment and Release Agreement (the “Acknowledgment and Release”) is
      entered into as of June 23, 2006, by and among Gary N. Pelehaty (“Executive”),
      Peoples Savings Bank (the “Bank”) and Farnsworth Bancorp, Inc. (the “Company”)
      and Sterling Bank (“Sterling”).

     

    WHEREAS,
      the
      Bank
      and the Company have entered into separate Employment Agreements with Executive,
      effective as of October 17, 2005 (the “Employment Agreements”), which provide
      Executive with a certain severance benefits in the event of Executive’s
      termination of employment following a change in control of the Bank or the
      Company; and

     

    WHEREAS,
      the
      Company entered into an Agreement and Plan of Merger by and among the Company,
      Sterling and Sterling Banks, Inc., dated as of June 23, 2006 (the “Merger
      Agreement”), pursuant to which the Company shall merge with and into Sterling
      Banks, Inc.(the “Merger”) and the Bank will merge with and into Sterling, and
      thereafter the separate corporate existence of the Company and the Bank shall
      cease; and

     

    WHEREAS,
      this
      Acknowledgment and Release is required under Section 63(e) of the Merger
      Agreement; and

     

    WHEREAS,
      Section
      9(a) of the Employment Agreements provide that Executive shall be eligible
      to
      receive severance payments, if, within twenty-four (24) months following a
      change in control of the Bank or the Company, Executive’s employment is
      involuntarily terminated; and

     

    WHEREAS,
      in
      connection with the Merger, Executive’s employment shall be terminated by the
      Bank as of and immediately prior to the effective date of the Merger (the
“Effective Time”), thereby entitling Executive to receive the payments set forth
      herein; and

     

    WHEREAS,
      pursuant
      to section 6.3(e) of the Merger Agreement, the Bank and Sterling have agreed
      to
      make the payments set forth herein in exchange for the termination of the
      Employment Agreements as of the Effective Time and the execution of this
      Acknowledgment and Release.

     

    NOW
      THEREFORE, in
      consideration of the foregoing and other good and valuable consideration the
      receipt and sufficiency of which is hereby acknowledged, it is agreed as
      follows:

     

    
      	 	
              1.

            	
              Acknowledgement
                of Severance Payment.
                The Executive shall receive a lump sum payment of [$600,405] (subject
                to
                recalculation if the Merger closes in 2007), less the present value
                of any
                benefits paid or payable by the Company and the Bank that are contingent
                on a “change of control” as defined under Section 280G of the Internal
                Revenue Code of 1986, as amended and the regulations thereunder
                (“Code’)(the total amount due under the Employment Agreements),
                

            

      	 	 	 

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	 	subject to applicable withholding taxes (the “Payment”)
              in full satisfaction of the cash severance benefit payable under Section
              9(a) of the Employment Agreements. Such amount shall equal the product
              of
              2.999 times the Executive’s “base amount” as defined in Code Section 280G,
              but reduced in such a manner and to such extent that this payment shall
              not be an “excess parachute payment” under Code Section 280G and shall not
              be subject to the excise taxes described in Code Section
              4999(a).

    

     

    Notwithstanding
      the foregoing, the Payment will be paid by Sterling or the Bank to the Executive
      as of the Effective Time or as soon as permissible thereafter such that there
      will not be the imposition of additional taxes and penalties levied against
      the
      Executive under Code Section 409A resulting from the timing of such
      Payment.

     

    If
      the
      Executive is deemed to be a “Specified Employee” under Code Section 409A, such
      payment must be withheld until the required time period provided for in the
      regulations promulgated under Code Section 409A.

     

    Under
      Code Section 409A, a “Separation from Service” may be required to receive the
      Payment.

     

    In
      accordance with Code Section 409A, a “separation from service” shall be deemed
      to have occurred where a former employee is providing services to a former
      employer in a capacity other than as an employee and the former employee is
      providing such services at an annual rate that is less than 50 percent of the
      services rendered, on average, during the immediately preceding three full
      calendar years of employment (or if employed less than three years, such lesser
      period) and the annual remuneration for such services is less than 50 percent
      of
      the annual remuneration earned during the final three full calendar years of
      employment (or if less, such lesser period). The annual rate of providing
      services is determined based upon the measurement used to determine the
      employee’s base compensation (for example, amounts of time required to earn
      salary, hourly wages, or payments for specific projects).

     

    Upon
      the
      Effective Time, at no unreimbursed expense to the Bank, the Executive and his
      dependents covered under any medical, dental, eye-care, prescription drugs
      or
      medical reimbursement or other similar plans sponsored by the Bank as of the
      date hereof shall be eligible to continue to participate in all medical, dental,
      eye-care, prescription drugs or medical reimbursement or other similar plans
      sponsored by the Bank or Sterling, as the successor to the Bank, at the
      Executive’s expense for a period of 36 months, on the same terms and conditions
      as if the Executive was an employee of the Bank or Sterling following the
      Effective Time. This provision shall survive the Merger.

     

    
      	 	
              2.

            	
              Consulting
                Agreement.
                The Executive shall enter into a Consulting Agreement with Sterling
                simultaneously with this Agreement whereby the Executive shall be
                retained
                as a consultant to Sterling for a period of three years from the
                Effective
                

            

      	 	 	 

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      	 	 	Time during which time certain restrictions shall
              apply
              to the Executive with respect to competition, non-solicitation of clients
              and non-solicitation of employees (collectively, the “Post-Termination
              Obligations”), all as described in the Consulting Agreement. The Executive
              shall receive remuneration in support of the Post-Termination Obligations,
              as described in the Consulting Agreement.

    

     

    
      	 	
              3.

            	
              Release
                and Waiver.
                Executive hereby agrees that the Payment will be in full satisfaction
                of
                all obligations of the Bank, the Company and Sterling to Executive
                under
                the Employment Agreements. Executive, the Bank, the Company and Sterling
                hereby expressly understand and acknowledge that such Payment shall
                not
                affect or reduce Executive’s right to receive (i) his salary through the
                date of termination in accordance with Section 3(a) of the Employment
                Agreement; (ii) any bonus earned for the 2006 calendar year in the
                amount
                disclosed to the Company in connection with the merger negotiations;
                (iii)
                continued eligibility to participate in the health insurance coverage
                under applicable state and federal group health care continuation
                coverage
                laws (e.g., Code section 4980B(f)) following Executive’s date of
                termination of employment with the Bank; (iv) any benefit vested
                in
                Executive under any tax-qualified or non-tax qualified employee benefit
                plan of the Bank; and (v) any benefit attributable to Executive under
                a
                stock option plan of the Company (i.e. the 1999 Stock Option Plan
                and 2002
                Stock Option Plan).

            

    

     

    
      	 	
              4.

            	
              General
                Provisions.

            

    

     

    
      	 	
              (a)

            	
              Heirs,
                Successors and Assigns.
                The terms of this Acknowledgment and Release shall be binding upon
                the
                parties hereto and their respective heirs, successors and assigns,
                including but not limited to the Bank, the Company, and
                Sterling.

            

    

     

    
      	 	
              (b)

            	
              Final
                Agreement.
                This Acknowledgment and Release represents the entire understanding
                of the
                parties with respect to the subject matter hereof and supersedes
                all prior
                understandings, written or oral. The terms of this Acknowledgment
                and
                Release may be changed, modified or discharged only by an instrument
                in
                writing signed by the parties
                hereto.

            

    

     

    
      	 	
              (c)

            	
              Governing
                Law.
                This Acknowledgment and Release shall be construed, enforced and
                interpreted in accordance with and governed by the laws of the State
                of
                New Jersey, without reference to its principles of conflicts of
                law.

            

    

     

    
      	 	
              (d)

            	
              Counterparts.
                This Acknowledgment and Release may be executed in one or more
                counterparts, each of which counterpart, when so executed and delivered,
                shall be deemed an original and all of which counterparts, taken
                together,
                shall constitute but one and the same
                agreement.

            

    

     

    
      	 	
              5.

            	
              Upon
                payment to Executive of the amount set forth in Section I hereof,
                neither
                the Bank, the Company, nor Sterling shall have any further obligation
                to
                Executive under the Employment Agreements, other than with respect
                to the
                payments and other benefits described
                herein.

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	 	
              6.

            	
              Any
                term or provision of this Acknowledgment and Release which is held
                to be
                invalid or unenforceable shall be ineffective to the extent of such
                invalidity or unenforceability without rendering invalid or unenforceable
                the remaining terms and provisions of this Acknowledgment and
                Release.

            

    

     

    IN
      WITNESS WHEREOF,
      the
      parties hereto have signed this Acknowledgment and Release.

     

    
      	
               

              EXECUTIVE

               

              /s/
                Gary N. Pelehaty

              Gary
                N. Pelehaty

               

            	
               

               

              06/23/06

              Date

            
	
              PEOPLES
                SAVINGS BANK

               

              /s/
                Gary N. Pelehaty

              By:
                Gary N. Pelehaty, President

               

            	
               

              06/23/06

              Date

            
	
              FARNSWORTH
                BANCORP, INC.

               

              /s/
                Gary N. Pelehaty

              By:
                Gary N. Pelehaty, President

               

            	
              06/23/06

              Date

            
	
              STERLING
                BANK

               

              /s/
                Robert H. King

              By:
                Robert H. King, President

            	
              06/23/06

              Date

            
	 	 

    

     

     4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]