Document:

exv10w1

 

Exhibit 10.1

EXECUTION VERSION

            
THIS AGREEMENT dated as of October 28, 2004 (the “Agreement”) is among BARCLAYS BANK PLC, a
public limited company incorporated and existing under the laws of England and Wales (“Barclays”);
INTERNATIONAL LEASE FINANCE CORPORATION, a California corporation (“ILFC”); and EXPORT-IMPORT BANK
OF THE UNITED STATES, an agency of the United States of America (“Ex-Im Bank”).

W I T N E S S E T H:

            WHEREAS, pursuant to the Final Commitment Letter dated August 20, 2004 from Ex-Im Bank to
ILFC, Ex-Im Bank has approved ILFC’s application for an Ex-Im Bank guarantee of loans up to
$1,680,209,374 (the “Ex-Im Bank Final Commitment”) on terms as more specifically described in the
form of Participation Agreement attached hereto as Exhibit B, in respect of which Barclays is to
serve as the Facility Agent and as the Initial Lender of such loans and to which has been assigned
the Ex-Im Bank Final Commitment Number AP080259XX (the “Ex-Im Bank Facility”);

            WHEREAS, Barclays has agreed with ILFC to provide the Ex-Im Bank Facility on terms and
conditions set forth in a term sheet and commitment letter dated April 5, 2004 (the “Term Sheet”)
and accepted by ILFC on April 16, 2004; and

            WHEREAS, ILFC desires to defer execution of the full definitive documents until such time, if
ever, as ILFC intends to utilize the Ex-Im Bank Facility;

            NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and
valuable consideration, receipt of which is hereby acknowledged, the parties hereto hereby agree as
follows:

     Section 1. Definitions. Unless the context otherwise requires, (a) capitalized terms
used herein and not otherwise defined herein shall have the meanings set forth in Part I of
Appendix A to the form of Participation Agreement for all purposes of this Agreement, and (b) the
rules of construction and interpretation for this Agreement shall be as set forth in Part II of
Appendix A to the form of Participation Agreement.

     Section 2. Notice of Intended Utilization; Agreement to Enter into Participation Agreement
and Other Documents; Availability Period.

     (a) Ex-Im Bank hereby commits to issue the guarantees, and Barclays hereby commits to make the
loans, respectively, contemplated by the Ex-Im Bank Final Commitment and the Participation
Agreement (which, upon delivery of the Notice of Intended Utilization, shall be duly completed to
the satisfaction of Ex-Im Bank and Barclays in accordance with Ex-Im Bank’s and Barclays’ customary
standards) on the terms and subject to the conditions set forth therein. Accordingly, if at any
time after the execution date of this Agreement (the “Execution Date”) until thirty (30) days prior
to

 

 

the Final Disbursement Date ILFC shall desire to utilize, or otherwise desire to enter into
full definitive documents for, the Ex-Im Bank Facility, ILFC shall: (i) deliver a Notice of
Intended Utilization to each of Ex-Im Bank and Barclays substantially in the form of Exhibit A
attached hereto; (ii) identify entities, each satisfactory to each of Ex-Im Bank and Barclays in
accordance with Ex-Im Bank’s and Barclays’ customary standards, that will serve as the Initial
Borrower Party and Initial Lessor Parent; (iii) form entities, each satisfactory to each of Ex-Im
Bank and Barclays in accordance with Ex-Im Bank’s and Barclays’ customary standards, that will
serve as the Initial Lessee Party and the Initial Lessee Parent; and (iv) provide to Ex-Im Bank and
Barclays and their respective counsel copies of the constitutional documents for each of the
entities referred to in the foregoing clauses (ii) and (iii).

     (b) Within the thirty (30) day period following delivery of the Notice of Intended
Utilization, the parties hereto and the parties described in clauses (ii) and (iii) of paragraph
(a) above shall enter into a Participation Agreement in substantially the form attached hereto as
Exhibit B (which, upon delivery of the Notice of Intended Utilization, shall be duly completed to
the satisfaction of Ex-Im Bank and Barclays in accordance with Ex-Im Bank’s and Barclays’ customary
standards) and such other agreements and documents as contemplated by such Participation Agreement,
in the case of each such other agreement or document a form of which is attached to such form of
Participation Agreement, in substantially such form so attached, in the case of the Borrower
Indemnity Agreement, in substantially the form attached hereto as Exhibit C, and, in the case of
any other agreement or document, in form and substance satisfactory to each of the parties hereto.

     (c) For purposes of this Agreement, “Final Disbursement Date” means August 31, 2005; provided
that, at any time following the end of each of the first four Quarters following September 1, 2004
(and ending November 30, 2004, February 28, 2005, May 31, 2005 and August 31, 2005, respectively)
so long as ILFC has not given a Notice of Intended Utilization and there has been no Disbursement
during such Quarter, but not later than thirty (30) days prior to the then Final Disbursement Date,
ILFC may extend such Final Disbursement Date by an additional Quarter ending on November 30, 2005,
February 28, 2006, May 31, 2006 and August 31, 2006 (but not beyond August 31, 2006), respectively,
by (i) submitting a request to Ex-Im Bank (with a copy to Barclays) requesting such extension and
specifying the applicable Quarter, any reduction in the authorized amount, and the proposed Final
Disbursement Date, and (ii) receiving written confirmation of such extension from Ex-Im Bank
(whereupon Barclays shall be deemed to have agreed to such extension as well), but in no event
shall the Final Disbursement Date be extended beyond August 31, 2006.

     (d) Neither Ex-Im Bank nor Barclays shall have any obligation to take any action hereunder
following the Final Disbursement Date.

     (e) Following execution of the Participation Agreement as contemplated by Section 2(b), this
Agreement shall terminate and cease to be of any force or effect.

     (f) For purposes of clarification, no party hereto shall be bound by the

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representations, warranties, covenants, indemnities or Events of Default contained in the
Participation Agreement, the Borrower Indemnity Agreement or the documents referred to therein,
which shall be of no force or effect, unless and until each such party executes the Participation
Agreement and the Borrower Indemnity Agreement; provided that the foregoing shall not be construed
as affecting the commitment of Ex-Im Bank or Barclays set forth in Section 2(a) above.

     Section 3. Ex-Im Bank Commitment Fee. ILFC shall pay, or cause to be paid, to Ex-Im
Bank a guarantee commitment fee (the “Ex-Im Bank Commitment
Fee”) in Dollars equal
to 0.125% per annum accruing on the uncancelled and undisbursed balance from time to time of the
Ex-Im Bank Final Commitment, computed on the basis of a 360-day year and the actual number of days
elapsed (including the first day but excluding the last day), accruing from October 19, 2004 until
the earliest of (i) the date the Ex-Im Bank Commitment is fully disbursed, (ii) the date the
undisbursed portion of the Ex-Im Bank Commitment is cancelled by ILFC (on behalf of the Borrower
Parties) by notice in writing to Ex-Im Bank, and (iii) the Final Disbursement Date. The Ex-Im Bank
Commitment Fee shall first be payable on February 10, 2005 and Quarterly thereafter and on the
final day on which the same accrues in accordance with the foregoing provisions of this Section 3;
provided that if any such date is not a Business Day the relevant payment shall be payable on the
next succeeding Business Day and the amount thereof adjusted accordingly.

     Section 4. Barclays Fees and Expenses.

     4.01 Barclays Commitment Fee. ILFC shall pay, or cause to be paid, to Barclays a
commitment fee (the “Barclays Commitment Fee”) in Dollars equal to 0.02% per annum accruing on the
uncancelled and undisbursed balance from time to time of the Ex-Im Bank Facility, computed on the
basis of a 360-day year and the actual number of days elapsed (including the first day but
excluding the last day), accruing from August 20, 2004 until the earliest of (i) the date the Ex-Im
Bank Facility is fully disbursed, (ii) the date the undisbursed portion of the Ex-Im Bank Facility
is cancelled by ILFC (on behalf of the Borrower Parties) by notice in writing to Barclays, and
(iii) the Final Disbursement Date. The Barclays Commitment Fee shall first be payable on December
15, 2004 and quarterly thereafter and on the final day on which the same accrues in accordance with
the foregoing provisions of this Section 4.01; provided that if any such date is not a Business Day
the relevant payment shall be payable on the next succeeding Business Day and the amount thereof
adjusted accordingly.

     4.02  Other Barclays Fees and Expenses. ILFC shall pay, or cause to be paid, to Barclays,
the Arrangement Fee and costs and expenses in the respective amounts and on the respective dates as
set forth in the Term Sheet.

     Section 5. Miscellaneous.

     5.01  Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK, U.S.A., WITHOUT REFERENCE TO PRINCIPLES OF

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CONFLICTS OF LAW OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS
LAW.

     5.02  Notices. Except as otherwise specified, all notices given hereunder shall be in
writing in the English language, shall include the applicable Ex-Im Bank Final Commitment Number
and shall be given by mail, facsimile, telex or personal delivery and deemed to be given for the
purposes of this Agreement on the day that such notice is received by the intended recipient
thereof. All notices shall be delivered to Barclays, ILFC and Ex-Im Bank at their respective
addresses specified in the form of Participation Agreement attached hereto as Exhibit B, or at such
other address for any party as such party may from time to time specified for such purpose by
notice to the other parties.

     5.03  Benefit of Agreement. This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the respective successors of the parties hereto. No party may
assign any of its rights or obligations hereunder without the prior written consent of the other
parties hereto.

     5.04  Amendment or Waiver. This Agreement may not be changed, discharged or terminated
(except as expressly provided herein) without the written consent of the parties hereto, and no
provision hereof may be waived without the written consent of the party to be bound thereby.

     5.05  Expenses. Whether or not the transactions contemplated hereby are consummated,
and subject to any separate agreements related thereto, ILFC shall pay or reimburse Ex-Im Bank
(against invoices and receipts (if available) submitted by any such Person), for any reasonable
out-of-pocket costs and expenses (including reasonable fees and disbursements of legal counsel and
other experts employed or retained by such Person) incurred by such Person in connection with the
negotiation, preparation, execution, delivery or enforcement of this Agreement and the form
documents attached hereto (collectively, “Transaction Costs”). In addition to the foregoing but
without duplication, ILFC shall pay or reimburse Ex-Im Bank for any reasonable out-of-pocket costs
and expenses (including fees and disbursements of legal counsel and other experts employed or
retained by such Person) incurred by Ex-Im Bank in connection with any amendment, modification or
waiver of this Agreement.

            All costs and expenses payable by ILFC pursuant to this Section 5.05 incurred in connection
with the negotiation, preparation, execution and delivery of this Agreement and the form documents
attached hereto (including, without limitation, legal fees) shall (to the extent invoices and
receipts have been submitted to ILFC at least one (1) Business Day prior to the Execution Date) be
paid on such Execution Date.

     5.06  Counterparts. This Agreement may be signed in separate counterparts, each of
which shall be deemed to be an original and all of which together shall constitute one and the same
instrument.

     5.07  English Language. All documents to be delivered by any party hereto pursuant to
the terms hereof shall be in the English language, or if originally written in

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another language, shall be accompanied by an accurate English translation upon which the other
parties hereto shall have the right to rely for all purposes under this Agreement.

     5.08  Severability. To the extent permitted by applicable law, the illegality or
unenforceability of any provision of this Agreement shall not in any way affect or impair the
legality or enforceability of the remaining provisions of this Agreement.

*      *      *

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

	 	 	 	 	 	 	 	 	 
	 	 	ILFC
	 
	 	 	 	 	 	 	 	 
	 	 	INTERNATIONAL LEASE FINANCE CORPORATION
	 
	 	 	 	 	 	 	 	 
	

	 	By:
	 	   /s/ Pamela S. Hendry
	 	/s/ Alan H. Lund	 	 
	 	 	 	 	 	 	 
	

	 	Name:
	 	  Pamela S. Hendry
	 	Alan H. Lund	 	 
	 	 	 	 	 	 	 
	

	 	Title:
	 	  Vice President

  and Treasurer
	 	Vice Chairman

Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BARCLAYS
	 
	 	 	 	 	 	 	 	 
	 	 	BARCLAYS BANK PLC
	 
	 	 	 	 	 	 	 	 
	

	 	By:
	 	  /s/ Nicholas A. Bell	 	 	 	 
	 	 	 	 	 	 	 
	

	 	Name:
	 	  Nicholas A. Bell	 	 	 	 
	 	 	 	 	 	 	 
	

	 	Title:
	 	  Director	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	EX-IM BANK
	 
	 	 	 	 	 	 	 	 
	 	 	EXPORT-IMPORT BANK OF THE UNITED STATES
	 
	 	 	 	 	 	 	 	 
	

	 	By:
	 	  /s/ Robert A. Morin	 	 	 	 
	 	 	 	 	 	 	 
	

	 	Name:
	 	  Robert A. Morin	 	 	 	 
	 	 	 	 	 	 	 
	

	 	Title:
	 	  Vice President	 	 	 	 
	 	 	 	 	 	 	 

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EXHIBITS

Exhibit A - Form of Notice of Intended Utilization

Exhibit B - Form of Participation Agreement

Exhibit C - Form of Borrower Indemnity Agreementexv10w1

 

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this “Agreement”), is made and entered into as of January 26,
2004 by and between BLACKBOARD INC., a Delaware corporation (the “Company”), and Matthew H.
Small (the “Employee”).

RECITALS

	A.  	The Company desires to retain Employee to provide the services hereinafter set forth.
	 
	B.  	Employee is willing to provide such services to the Company on the terms and conditions
hereinafter set forth. The Company and the Employee shall enter into an additional Employee
Stock Option Contract (the “Option Agreement”) substantially in the form of the Stock
Option Contract dated November 20, 2002 by and between the Employee and the Company (the
“First Option Agreement”) in conjunction with the granting of additional options to
purchase stock of the Employer.

AGREEMENT

In consideration of the promises and the terms and conditions set forth in this Agreement, the
parties agree as follows:

	1.  	Employment and Term.
	 
	   	The Company agrees to employ the Employee and the Employee agrees to work for the Company,
subject to the terms and conditions below, for a term of two (2) years, from the date
hereof, which shall automatically renew for additional annual terms unless either party
notifies the other at least ninety (90) days prior to the end of the term of the Agreement
of a determination not to allow this Agreement to automatically renew.
	 
	2.  	Compensation; Benefits.
	 
	   	Subject to the terms and conditions of this Agreement, the Company shall pay to the
Employee a base salary as set forth on Schedule A, attached hereto and made a part hereof,
payable in accordance with the Company’s regular payroll policies. In addition to this
base salary, the Employee shall be entitled to the benefits and bonuses described on
Schedule A, subject to the terms and conditions described therein. In addition, the
Employee shall be entitled to receive such other benefits including, but not limited to,
vacation, holidays and sick leave, as the Company generally provides to its senior
executives and employees holding similar positions as that of the Employee.
Notwithstanding the foregoing, the Company reserves the right to adopt, amend or
discontinue any employee benefit plan or policy in accordance with then-applicable law

 

 

	3.  	Business Expenses.
	 
	   	The Company shall reimburse the Employee during the term of this Agreement for travel,
entertainment and other expenses reasonably incurred by the Employee on behalf of the
Company pursuant to the Company’s expense reimbursement policy for its senior executives.
	 
	4.  	Title; Duties.
	 
	   	The Employee shall be employed as General Counsel and Corporate Secretary, reporting
directly to the Chief Executive Officer. The Employee shall diligently and conscientiously
devote his full time and attention and his best efforts to discharge the duties assigned to
him by the Company. The Employee shall perform such duties as may be assigned to him from
time to time by the Board of Directors.
	 
	5.  	Right to Contract; Conflict of Interest.
	 
	   	The Employee hereby represents and warrants to the Company that (i) he has full right and
authority to enter into this Agreement and to perform his obligations hereunder, and (ii)
the execution and delivery of this Agreement by the Employee and the performance of the
Employee’s obligations hereunder will not conflict with or breach any agreement, order or
decree to which the Employee is a party or by which he is bound.
	 
	6.  	Transfer by Company.
	 
	   	If at any time during the term of this Agreement, the Company transfers the Employee to
another location, the Company will reimburse the Employee for all reasonable relocation
expenses incurred as a result of such transfer.
	 
	7.  	Termination by the Company.

	 	(a)  	The Company shall have the right to terminate the Employee’s employment with
or without Cause (as defined below) at any time during the term of this Agreement by
giving written notice to the Employee. It is specifically acknowledged and agreed
that a notification by the Company of a determination not to allow this Agreement to
automatically renew pursuant to Section 1 shall not be a termination by the Company
for any purpose hereunder. The termination shall become effective on the date
specified in the notice, which termination date shall not be a date prior to the date
ten (10) days following the date of the notice of termination itself. In the event
that the Employee is terminated for Cause, the Company shall pay the Employee the
salary due him under this Agreement through the day on which such termination is
effective. In the event that the Employee

 

 

	 	   	is terminated without cause, or on non-renewal of this Agreement by the Company,
the Company shall, subject to the provisions of this Agreement:

	 	(i)  	pay to the Employee within thirty (30) days of termination of
employment a cash payment equal to his annual base salary based on his highest
annual base salary for the three year period prior to the Termination date,
earned bonus through the end of and including the then current quarter,
expense reimbursements and fringe benefits other than any entitlement to
bonus, set forth on Schedule A, in a lump sum or in accordance with normal
payroll practices, at the Company’s option;
	 
	 	(ii)  	maintain and provide for a period of twelve (12) months from
the date of termination, at no cost to the Employee, the Employee’s continued
participation in all group insurance, life insurance, health and accident,
disability and other employee benefit plans, programs and arrangements in
which the Employee was entitled to participate immediately prior to the date
of termination (other than any bonus plans or stock option plans of the
Employer), provided that in the event that the Employee’s participation in any
plan, program or arrangement as provided in this subparagraph (ii) is barred
or during such period any such plan, program or arrangement is discontinued or
the benefits thereunder are materially reduced, the Employer shall arrange to
provide the Employee with benefits substantially similar to those which the
Employee was entitled to receive under such plans, programs and arrangements
immediately prior to the Employee’s date of termination.

	 	(b)  	The Company may terminate Employee’s employment hereunder at any time for
“cause” upon written notice to Employee. For purposes of this Section 7,
“cause” shall mean: (i) any willful gross misconduct by Employee which
materially injures the Company which breach is not cured within a reasonable period
following not less than 30 days prior written notice thereof to Employee, (ii) a
course of conduct by Employee which involves material failures to perform his duties
satisfactorily over a period of time, where there has been repeated counseling by the
Board or appropriate committee thereof, and following not less than thirty (30) days’
prior written notice thereof to employee and a reasonable opportunity to cure, or
(iii) conviction of a felony involving moral turpitude. No act or omission shall be
considered “willful” if it is done by Employee in good faith and with reasonable
belief that it was in the best interest of the Company.
	 
	 	(c)  	In the event the Employee disputes in writing any termination for Cause
(after the Employee receives the grounds for termination, in writing, from

 

 

	 	   	the Company’s Board of Directors the Company shall continue to pay the Employee
full salary (including any earned bonuses or fringe benefits) for a period of no
more than three (3) months while the Company and the Employee attempt to resolve
such dispute in good faith.

	8.  	Termination by Death or Disability of the Employee.

	 	(a)  	In the event of the Employee’s death during the term of this Agreement, all
obligations of the parties hereunder shall terminate immediately, and the Company
shall pay to the Employee’s legal representatives the salary (and any earned bonuses)
due the Employee through the day on which his death shall have occurred.
	 
	 	(b)  	If the Employee is unable to perform his duties hereunder due to mental,
physical or other disability for a period of one hundred twenty (120) consecutive
business days, as determined by the Company, or for one hundred twenty (120) business
days in any period of twelve (12) consecutive months, this Agreement may be terminated
by the Company, at its option, by written notice to the Employee, effective on the
termination date specified in such notice, provided such termination date shall not be
a date prior to the date of the notice of termination itself. In this case, the
Company will pay the Employee the salary (and any earned bonuses) due him through the
day on which such termination is effective.
	 
	 	(c)  	The Company shall pay Employee the difference between the amount to be paid
under any disability insurance policy for the twelve (12) months following termination
and the amount of Employee’s salary due under the termination provision of Section 7
(a) (i).

	9.  	Termination by the Employee.

	 	(a)  	The Employee may terminate the Employee’s employment at any time, with or
without cause, by giving written notice to the Company. It is specifically
acknowledged and agreed that a notification by the Employee of a determination not to
allow this Agreement to automatically renew pursuant to Section 1 shall not be a
termination by the Employee for any purpose hereunder. Any such termination, if
without cause, shall become effective on the date specified in such notice, provided
that the Company may elect to have such termination become effective on a date after,
but not more than, fourteen (14) days after the date of the notice. If such
termination is with Good Reason, (i) it shall become effective on the date thirty (30)
days after the date of such notice, provided the Company has failed to cure the cause
specified in the notice; and (ii) the Company shall subject to the provisions of this
Agreement:

 

 

	 	(i)  	pay to the Employee within thirty (30) days of termination of
employment a cash payment equal to his annual base salary based on his
highest annual base salary for the three year period prior to the
Termination date, earned bonus through the end of and including the then
current quarter, expense reimbursements and fringe benefits other than any
entitlement to bonus, set forth on Schedule A, in a lump sum or in
accordance with normal payroll practices, at the Company’s option; and
	 
	 	(ii)  	maintain and provide for a period of twelve (12) months from
the date of termination, at no cost to the Employee, the Employee’s continued
participation in all group insurance, life insurance, health and accident,
disability and other employee benefit plans, programs and arrangements in
which the Employee was entitled to participate immediately prior to the date
of termination (other than any bonus plans or stock option plans of the
Employer), provided that in the event that the Employee’s participation in any
plan, program or arrangement as provided in this subparagraph (ii) is barred
or during such period any such plan, program or arrangement is discontinued or
the benefits thereunder are materially reduced, the Employer shall arrange to
provide the Employee with benefits substantially similar to those which the
Employee was entitled to receive under such plans, programs and arrangements
immediately prior to the Employee’s date of termination.

	 	(b)  	In the event the Employee terminates this Agreement without Good Reason, the
Employee shall be entitled to the salary, bonus and other benefits due him through the
day on which such termination becomes effective.
	 
	 	(c)  	For purposes of this Section 9, “Good Reason” shall mean (i) a
material failure by the Company to perform its obligations under this Agreement; (ii)
a Constructive Termination (as defined below) of the Employee; (iii) non-renewal of
this Agreement by the Company or (iv) if employee is not offered a position acceptable
to the Employee or a Satisfactory Employment Agreement, substantially in the form of
this Agreement, in connection with a “Transaction” prior to closing such Transaction
or as otherwise mutually agreed to with the Employee.
	 
	 	(d)  	For purposes of this Section 9 “Transaction” shall mean a
“Transaction” as defined in the Employee’s Stock Option Contract Agreement.
	 
	 	(e)  	For purposes of this Section 9, “Constructive Termination” shall mean
any (i) diminution of the Employee’s total compensation, or (ii) material adverse
modification of or diminution in the Employee’s duties or material diminution in the
Employee’s authority, title or office, or the assignment

 

 

	 	   	of any duties to the Employee inconsistent with or demeaning of those set forth at
the effective date of this Agreement, or (iii) material reduction in the Employee’s
benefits under any employee benefit plan or program in which he participates as an
employee, other than any reduction which is a result of a reduction of benefits
applicable to all employee participants; or (iv) relocation of the Employee
outside of the Employee’s current residential area without the Employee’s consent;
or (v) relocation of the Company’s principal executive offices outside of the
Washington, DC area; or (vi) the requirement by the Company that the Employee be
based anywhere other than the Company’s principal executive offices or that the
Employee travel away from the Company’s principal executive offices substantially
more than the Employee is required to travel at the effective date of this
Agreement.

	10.  	Suspension.
	 
	   	In the event the Company has reasonable cause to believe that there exists Cause for
termination of this Agreement as defined in Section 7, immediately upon written notice to
the Employee, the Company may, but shall not be obligated to, suspend the Employee, with
pay, for a period not to exceed two (2) weeks, either as a disciplinary measure or in order
to investigate the Company’s belief that such cause exists. No such suspension shall
prevent the Company from thereafter exercising its rights to terminate this Agreement in
accordance with its terms.
	 
	11.  	Confidentiality and Non-Disclosure.

	 	(a)  	The Employee shall hold in strict confidence and shall not, either during the
term of this Agreement or after the termination hereof, disclose, directly or
indirectly, to any third party, person, firm, corporation or other entity,
irrespective of whether such person or entity is a competitor of the Company or is
engaged in a business similar to that of the Company, any trade secrets or other
proprietary or confidential information of the Company or any subsidiary or affiliate
of the Company obtained by the Employee from or through his employment hereunder. The
Employee hereby acknowledges and agrees that all proprietary information referred to
in this Section 11 shall be deemed trade secrets of the Company and of its
subsidiaries and affiliates. Employee further acknowledges that the Company’s products
and titles consist of copyrighted material, and Employee shall exercise his best
efforts to prevent the use of such copyrighted material by any person or entity which
has not prior thereto been authorized to use such information by the Company.
	 
	 	(b)  	The Employee further hereby agrees and acknowledges that any disclosure of
any proprietary information prohibited herein, or any breach of the provisions of
Sections 4 or 10 of this Agreement, may result in irreparable injury and damage to the
Company which will not be adequately

 

 

	 	   	compensable in monetary damages, that the Company will have no adequate remedy at
law therefore, and that the Company may obtain such preliminary, temporary or
permanent mandatory or restraining injunctions, orders or decrees as may be
necessary to protect the company against, or on account of, any breach by the
Employee of the provisions contained in Sections 5 or 11 . The Employee shall
reimburse the reasonable legal fees and other costs incurred by the Company in
enforcing the provisions of Sections 5 and 11 of this Agreement.
	 
	 	(c)  	The Employee further agrees that, upon termination of this Agreement, whether
voluntary or involuntary or with or without cause, the Employee shall notify any new
employer, partner, associate or any other firm or corporation with whom the Employee
shall become associated in any capacity whatsoever of the provisions of this Section
11, and that the Company may give such notice to such firm, corporation or other
person.
	 
	 	(d)  	Notwithstanding the foregoing limitations, the Employee shall not be required
to keep confidential pursuant to this Section 12 any confidential or proprietary
information that: (i) is known or available through other lawful sources, not bound by
a confidentiality agreement with the Employee, (ii) is or becomes publicly known or
generally known in the industry through no fault of the Employee or his agents or
(iii) is required to be disclosed pursuant to any statutes, laws, rules, regulations,
ordinances, codes, directives, writs, injunctions, decrees, judgments, and orders of
any governmental body (provided the Company is given reasonable prior notice).

	12.  	Assignment and Disclosure of Inventions.

	 	(a)  	From and after the date the Employee first became employed with the Company,
the Employee hereby agrees to promptly disclose in confidence to the Company all
inventions, improvements, designs, original works of authorship, formulas, processes,
compositions of matter, computer software programs, databases, mask works, and trade
secrets (“inventions”), whether or not patentable, copyrightable or
protectible as trade secrets, that are made or conceived or first reduced to practice
or created by the Employee, either alone or jointly with others, during the period of
the Employee’s employment, whether or not in the course of the Employee’s employment.
	 
	 	(b)  	The Employee hereby acknowledges that copyrightable works prepared by the
Employee within the scope of the Employee’s employment are “works for hire” under the
Copyright Act and that the Company will be considered the author thereof. The Employee
hereby agrees that all Inventions that (i) are developed using equipment, supplies,
facilities or trade secrets of the Company, (ii) result from work performed by the

 

 

	 	   	Employee for the Company, (iii) relate to the Company’s business or current or
anticipated research and development, will be the sole and exclusive property of
the Company and are hereby assigned by the Employee to the Company.

	13.  	Severability.
	 
	   	The Company and the Employee recognize that the laws and public policies of the state law
applicable to this Agreement are subject to varying interpretations and change. It is the
intention of the Company and of the Employee that the provisions of this Agreement shall be
enforced to the fullest extent permissible under the laws and public policies of such
state, but that the unenforceability (to the modification to conform to such laws or public
policies) of any provision or provisions hereof shall not render unenforceable, or impair,
the remainder of this Agreement. Accordingly, if any provisions of this Agreement shall be
determined to be invalid or unenforceable, either in whole or in part, this Agreement shall
be deemed amended to delete or modify, as necessary, the offending provision or provisions
and to alter the balance of this Agreement in order to render it valid and enforceable.
	 
	14.  	Assignment.
	 
	   	Neither the rights nor obligations under this Agreement may be assigned by either party, in
whole or in part, by operation of law or otherwise, except that it shall be binding upon
and inure to the benefit of any successor of the Company and its subsidiaries and
affiliates, whether by merger, reorganization or otherwise, or any purchaser of all or
substantially all of the assets of the Company.
	 
	15.  	Notices.
	 
	   	Any notice expressly provided for under this Agreement shall be in writing, shall be given
either manually or by mail and shall be deemed sufficiently given when actually received by
the party to be notified or when mailed, if mailed by certified or registered mail, postage
prepaid, addressed to such party at their addresses as set forth below. Either party may,
by notice to the other party, given in the manner provided for herein, change their address
or receiving such notices.

	 	(a)  	If to the Company, to:
	 
	 	   	Blackboard Inc.

1899 L Street N.W., Fifth Floor

Washington, D.C. 20036

Attn: General Counsel

 

 

	 	(b)  	If to the Employee, to:
	 
	 	   	Matthew H. Small

2501 Porter St., N.W., Apt. 318

Washington, DC 20008

	16.  	Governing Law.
	 
	   	This Agreement shall be executed, construed and performed in accordance with the laws of
the State of Delaware without reference to conflict of laws principles. The parties agree
that the venue for any dispute hereunder will be the state or federal courts sitting in the
District of Columbia or the Commonwealth of Virginia and the parties hereby agree to the
exclusive jurisdiction thereof.
	 
	17.  	Headings.
	 
	   	The section headings contained in this Agreement are for reference purposes only and shall
not in any way affect the meaning or interpretation of this Agreement.
	 
	18.  	Entire Agreement; Amendments.
	 
	   	This Agreement, together with any stock option contracts between the Company and Employee,
constitutes and embodies the entire agreement between the parties in connection with the
subject matter hereof and supersedes all prior and contemporaneous agreements and
understandings in connection with such subject matter. No covenant or condition not
expressed in this Agreement shall affect or be effective to interpret, change or restrict
this Agreement. In the event of a conflict or inconsistency between the terms of this
Agreement and the Company’s policies regarding employees, the terms of this Agreement shall
supersede the conflicting or inconsistent Company policies. No change, termination or
attempted waiver of any of the provisions of this Agreement shall be binding unless in
writing signed by the Employee and on behalf of the Company by an officer thereunto duly
authorized by the Company’s Board of Directors. No modification, waiver, termination,
rescission, discharge or cancellation of this Agreement shall affect the right of any party
to enforce any other provision or to exercise any right or remedy in the event of any other
default.

[SIGNATURE PAGE FOLLOWS]

 

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

	 	 	 	 	 
	 	 
	BLACKBOARD INC., a Delaware corporation
	 	 
	 	 
	By:  	/s/ Michael L. Chasen 	 
	 	Name:  	Michael L. Chasen 	 
	 	Title:  	CEO 	 
	 
	 	 
	Matthew H. Small
 	 
	 	 
	/s/ Matthew H. Small 	 
	 	 
	 	 
	 

 

 

SCHEDULE A

     The Employee is currently being paid $165,000 in annual salary; however the Company reserves
the right to increase the Employee’s salary from time to time, in accordance with the Company’s
regular management employee payroll and incentive policies.

     The Employee shall receive for each year thereafter, an annual bonus equal to up to 35% of
Employee’s then current salary, payable in cash. The criteria for bonuses shall be based on
mutually agreed upon goals established on an annual basis.

     Employee shall receive vacation, parking, health and insurance benefits equal to that provided
other senior executive management, which benefits may be changed from time to time by the Company.

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