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EXHIBIT 10.1

EXE TECHNOLOGIES, INC.

8787 Stemmons Freeway

Dallas, TX 75247

February 12, 2003

Hand Delivered

Mr. Raymond R. Hood

3645 Southwestern Boulevard

Dallas, Texas 75225

Dear Ray

This letter is to confirm that EXE has elected to terminate your employment
without cause pursuant to Section 8.4(a) of your Employment Agreement dated as
of July 1, 2000 (the “Employment Agreement”) on the following terms and
conditions. Accordingly, you and EXE agree as follows:

1.     Termination. The effective date of termination of the Employment
Agreement is November 14, 2002, your effective date of termination as Chief
Executive Officer is November 14, 2002 (you acknowledge that you had previously
surrendered the title of President), and the effective date of termination of
your employment with EXE is the date of this letter. Effective at the close of
business on November 14, 2002, you have no further authority to bind EXE as
President or Chief Executive Officer. EXE and you acknowledge that, except to
the extent modified by this separation agreement, the following provisions of
the Employment Agreement will survive in accordance with their respective
terms:
4.10, 5, 6, 7, 8.7, 9, 10 and 12 through 22. All other provisions of the
Employment Agreement are terminated in their entirety.

2.     Severance. On or about the date of your execution of this letter and
in accordance with Section 8.7 of the Employment Agreement, EXE will make a
one-time payment to you of $1,376,846.78. As of the date of this agreement, and
except as may otherwise be agreed in writing between you and EXE, you will no
longer be eligible for any additional compensation, including without
limitation
salary, bonuses, or benefits; provided that, in addition to the amount
specified
in the first sentence of this paragraph 2, EXE will pay you for any accrued,
unused vacation as of the date of this letter in accordance with regular
payroll
practices and, on or about the date of your execution of this letter, EXE will
pay you a lump sum of $13,300 for your use in connection with COBRA payments
relating to medical insurance through December 31, 2003.

3.     Expenses and Compensation Acknowledgment. You will deliver a final
expense report to HR no later than February 15, 2003. You acknowledge that you
have received in full all amounts owed to you by EXE through the date of this
separation agreement, including but not limited to salary, commissions,
bonuses,
expense reimbursement or other payments, other than any normal expense reports
that have been submitted and are being processed. EXE

 

 

acknowledges that you do not owe any further amounts to EXE through the date of
this separation agreement.

4.     Confidentiality. You will keep confidential the terms of this
separation agreement that are not already publicly disclosed and will not
disclose them to any third party, including any employees of EXE, except those
employees who have a need to know. Nevertheless, you may disclose the terms of
this separation agreement to your financial or legal advisors and immediate
family; provided that you remain fully responsible for any breach of
confidentiality by such recipients.

5.     Non-Disparagement. Neither you nor EXE will make any disparaging
remarks, or otherwise take any action that could reasonably be anticipated to
cause damage to the reputation, goodwill or business of the other, or otherwise
make remarks that may negatively reflect upon the other; provided that EXE’s
taking any action in order to preserve or pursue any claims, if any, EXE may
have against you shall not be a violation of this provision in any respect.

6.     Release. You acknowledge that the terms of this Agreement are in
full satisfaction of all amounts owed to you by EXE through the date of this
Agreement arising out of or relating to the Employment Agreement. You release
and discharge EXE, together with each and every of its predecessors, successors
(by merger or otherwise), parents, subsidiaries, affiliates, divisions,
directors, officers, employees and agents, whether present or former, from any
and all suits, causes of action, complaints, obligations, demands, or claims of
any kind, whether in law or in equity, direct or indirect, known or unknown,
which you ever had or now have against the released parties, or anyone of them,
arising out of or relating to compensation matters under the Employment
Agreement through the date of this agreement, including but not limited to, any
matter relating to compensation arising out of or connected with your
employment
under the Employment Agreement or the termination of that employment, including
without limitation claims of wrongful discharge, emotional distress,
defamation,
fraud, breach of contract, breach of covenant of good faith and fair dealing,
any claims of discrimination or harassment based on sex, age, race, national
origin, disability or on any other basis, under Title VII of the Civil Rights
Act of 1964, as amended, the Age Discrimination in Employment Act of 1967, as
amended, Section 1981 of the Civil Rights Act of 1866, the Americans with
Disabilities Act of 1990, as amended, the Employee Retirement Income Security
Act of 1974, and all other laws and regulations relating to employment.
Notwithstanding the foregoing, this release will have no effect on any claims
arising with respect to EXE’s obligations under its charter documents, its
by-laws or the Indemnification Agreement dated as of February 16, 2001 between
EXE and you (the “Indemnification Agreement”) to indemnify, defend and hold you
harmless, which obligations, notwithstanding this release, survive in
accordance
with their respective terms.

7.      Acknowledgement. You understand that the release under paragraph 6
extends to all of the aforementioned claims and potential claims which arose on
or before the date of this separation agreement, whether now known or unknown,
suspected or unsuspected, and that this constitutes an essential term of this
separation agreement. You and EXE further understand and acknowledge the
significance and consequence of this separation agreement and of each specific
release and waiver, and expressly consent that this separation agreement shall
be given full force and effect according to each and all of its express terms
and provisions, including those relating to unknown and unsuspected claims,
demands, obligations, and causes of action, if any, as well

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as those relating to any other claims, demands, obligations or causes of action
herein above-specified. You waive any right or claim you may have to
employment,
re-instatement, or re-employment with EXE.

8.     Continuing Obligations under Promissory Note and Pledge Agreement.
You specifically acknowledge and reaffirm your obligations under that certain
Promissory Note and that certain Pledge Agreement, each dated November 16,
2000.

9.     Existing Stock Options: Stock Award.

     (a)  Existing Stock Options. In accordance with the following table, as
of the date of this letter, you will become eligible to exercise your options
listed in the table below in full, and the termination of your employment for
purposes of the options listed in the table below shall be deemed to have
occurred on the date of this letter. Notwithstanding anything to the contrary
in your option agreements, exercise of your options dated August 1, 1998 must be
completed within three months of the date of this letter agreement, and
exercise of your options dated November 2, 2001 must be completed by February 15, 2004.

	 	 	 	 	 	 	 	 	 	 	 
	No. of Shares*	 	Date Granted 	 	Strike Price per Share*	 	Vesting*
	
	 	
	 	
	 	

	500,000	 	
August 1, 1998
	 	$	13.00	 	 	 	500,000	 
	300,000	 	
November 2, 2001
	 	$	2.41	 	 	 	300,000	**

* All option numbers and prices in this table are prior to EXE’s 1 for 7
reverse
stock split, effective January 2, 2003. The appropriate adjustments will be
reflected in your E*Trade account.

** The vesting of the remaining unvested amounts of this option shall be
accelerated as of the date of this letter so that all shares under this option
are vested.

	 	(b)	 	Stock Award.

	 	(i)	 	You acknowledge that you have been granted an award
(the “ Award”) of 14,286 shares of common stock
of EXE, all of which shares are immediately vested.
	 
	 	(ii)	 	In the event of the declaration of a stock dividend,
the declaration of an extraordinary dividend payable
in a form other than stock, a spin-off, a stock
split, an adjustment in conversion ratio, a
recapitalization or a similar transaction affecting
EXE’s outstanding securities without receipt of
consideration, appropriate adjustments to reflect the
distribution of such securities or property shall be
made to the number and/or class of the Award.
	 
	 	(iii)	 	It is understood that the certificates evidencing the
Award may bear the following legend:

	 	 	“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR
THE SECURITIES LAWS OF ANY

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	 	 	STATE. THE SECURITIES MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS OR PURSUANT TO A
WRITTEN OPINION OF COUNSEL FOR THE COMPANY THAT SUCH REGISTRATION IS
NOT REQUIRED.”

10.     Advice of Counsel: Revocation Period. You are advised to seek the
advice of counsel. You acknowledge that you are acting of your own free will,
that you have been afforded a reasonable time to read and review the terms of
this separation agreement, and that you are voluntarily entering into this
separation agreement with full knowledge of its provisions and effects. You
intend that this separation agreement will not be subject to any claim for
duress. You further acknowledge that you have been given at least twenty one
(21) days within which to consider this separation agreement.

11.     Entire Agreement. Except (i) as expressly provided in this
agreement, (ii) for that certain Promissory Note and that certain Pledge
Agreement, each dated November 16, 2002, (iii) the Indemnification Agreement,
dated as of February 16, 2001, (iv) your applicable stock option agreements, as
modified herein, and (v) for any additional Agreement that may be concluded
between you and EXE, this Agreement contains the entire agreement between you
and EXE and supercedes all other agreements between you and EXE, including but
not limited to the Employment Agreement, any bonus plan, and any offer letter
of
employment.

12.     Governing Law. This agreement shall be construed and enforced in
accordance with the laws of the State of Texas, without regard to the
principles
of conflicts of laws of any jurisdiction.

13.     Consent to Suit. In the case of any dispute under or in connection
with this agreement, the parties may only bring suit in the Courts of the State
of Texas in and for the County of Dallas or in the Federal District Court for
such geographic location. The parties hereby consent to the jurisdiction and
venue of the courts of the State of Texas in and for the County of Dallas or
the
Federal District Court for such geographic location, provided that such Federal
Court has subject matter jurisdiction over such dispute, and the parties hereby
waive any claim based upon an inconvenient forum with respect to such venue.
Any
judgment entered against either of the parties in any proceeding hereunder may
be entered and enforced by any court of competent jurisdiction. If an action at
law or in equity is necessary to enforce or interpret the terms of this
agreement, then the prevailing party shall be entitled to recover, in addition
to any other relief, reasonable attorneys’ fees, costs and disbursements.

Please note that you have twenty-one (21) days to review this separation
agreement, but you are not obligated to use that entire period. If the terms of
this separation agreement are acceptable to you, please sign it and return it
to
me.

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	Sincerely,
	 
	/s/ JOSEPH L. COWAN
	 
	Joseph L. Cowan

President and Chief Executive Officer
	 
	Approved:
	 
	/s/ HENRY FEINBERG

Henry Feinberg,

As the Representative of

The Compensation Committee of the

Board of Directors of

EXE Technologies, Inc.
	 
	Accepted and agreed:
	 
	/s/ RAYMOND R. HOOD

Raymond R. Hood
	 
	Date: February 12, 2003

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February 12, 2003

Mr. Raymond R. Hood

3645 Southwestern Boulevard

Dallas, Texas 75225

Dear Ray:

This letter will confirm the terms and conditions under which you will serve as
an independent contractor for EXE Technologies, Inc. (“EXE” or the “Company”).
You and EXE agree as follows:

	1.	 	Services. You will provide services to EXE as described on Exhibit A
(the “Services”) at such times as EXE may reasonably request. In
performing the Services, you will observe all working rules, policies
and procedures of EXE. You will report to the Chief Executive Officer
of EXE.
	 
	2.	 	Independent Contractor. Your relationship to EXE will be that of an
independent contractor and not of an officer, employee, or agent.
Accordingly, you have no authority to bind or obligate EXE in any way.
EXE will have no liability to you except to pay your compensation and
reimburse your expenses as outlined below.
	 
	3.	 	Availability. During the time that you are performing the Services,
you will make yourself available to provide the Services under the
terms of this Agreement.
	 
	4.	 	Other Provisions. Prior to commencement of performing the Services,
you
must execute EXE’s form of Contractor Confidentiality Agreement
attached hereto as Exhibit B.
	 
	5.	 	Compensation. EXE will pay you $27,500 per month (pro rated for
portions thereof) for the term of this agreement. EXE will make these
payments to you monthly, within 10 days after the end of each month.
You will be also reimbursed for all reasonable out-of-pocket business
expenses you incur in the performance of the Services; provided that
such expenditures are approved in writing by the CEO or CFO of EXE, are
promptly submitted for payment, and are documented by invoices or
receipts in accordance with EXE’s procedures. You will not participate
in any employee benefit program offered by EXE to its employees. You
will pay all income and other taxes including, but not limited to,
social security, self-employment and federal income taxes, with respect
to all payments to you from EXE. You also will provide proof of such
tax payments to EXE upon request.
	 
	6.	 	Term. The term of this Agreement shall begin on the date of this
letter agreement and will continue until terminated by 30 days’
written notice from EXE to you or from you to EXE. This Agreement will
terminate automatically in the event of your death.
	 
	7.	 	Non-Assignable. This Agreement may not be assigned or delegated, in
whole or in part, by either party, except that EXE may assign this
Agreement to any affiliated or successor company.

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	8.	 	Governing Law and Dispute Resolution. This Agreement will be governed
by the laws of the State of Texas. Furthermore, any dispute between us
arising out of this Agreement will be resolved solely in the manner and
subject to the procedures and expense reimbursement provisions set
forth in your Contractor Confidentiality Agreement.
	 
	9.	 	Entire Agreement. This Agreement, together with your Contractor
Confidentiality Agreement, the letter agreement related to the
termination of your Employment Agreement, and the agreements referenced
therein, contains our entire agreement and supersedes any prior oral or
written understandings and agreements between EXE and you relating to
the subject matter of this Agreement. This Agreement can be modified
only if in writing and signed by both you and EXE.

If the foregoing correctly sets forth our understanding, then please execute
the
acceptance at the bottom of this page on the extra copy of this letter and
return the signed copy to me.

	 	 
	Sincerely,
	 
	/s/ JOSEPH L. COWAN

Joseph L. Cowan

President and Chief Executive Officer
	 
	Approved:
	 
	/s/ HENRY FEINBERG

Henry Feinberg

As the Representative of

The Compensation Committee of the

Board of Directors of

EXE Technologies, Inc.
	 
	Accepted and agreed by:
	 
	/s/ RAYMOND R. HOOD

Raymond R. Hood

Date: February 12, 2003

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Exhibit A

DUTIES

During the term of your engagement, your duties will be:

	(1)	 	Assist the CEO of EXE in the transition of your departure as a
full-time employee of EXE.
	 
	(2)	 	Assist your replacement with the assumption of his duties at EXE.

	 
	(3)	 	
Provide advice to EXE on strategic issues when requested by the Board
or the CEO.
	 
	(4)	 	Assist the CEO in the management of customer relations and
expectations
in the transition of your departure as a full-time employee of EXE.
	 
	(5)	 	Perform such other duties from time to time as may be agreed between
the CEO of EXE and you.
	 

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Exhibit B

EXE TECHNOLOGIES, INC.

CONTRACTOR CONFIDENTIALITY AGREEMENT

Recognizing that the success of EXE Technologies, Inc., a Delaware corporation
(the “Company”), depends, in part, on the protection of trade secrets,
innovations, formulae, algorithms and information held or utilized by the
Company, and recognizing that during my engagement by the Company
(“engagement”)
I may have access or contribute to such matters, and in consideration of my
engagement and intending to be legally bound by this Agreement, I agree to the
following:

1.     During and after my engagement, without the prior written consent of
an officer of the Company, I will not disclose or use for my direct or indirect
benefit or the direct or indirect benefit of a third party, and I will use my
best efforts to maintain, the confidentiality of all confidential information
that I acquire because of my engagement. In general, “confidential information”
means any information that the Company treats as confidential, including, but
not limited to, any information relating to strategic plans, finances,
research,
processes, inventions, products, methods, formulae, algorithms, computer codes
or instructions, software, documentation, equipment, costs, customer lists,
business studies and business procedures, and any other materials that have not
been made available to the general public. Failure to mark any of the
confidential information as confidential or proprietary will not affect its
status as confidential information under the terms of this Agreement.

2.     During and after my engagement, I will not remove from the Company’s
offices or premises any documents, records, notebooks, files, correspondence,
reports, memoranda, computer tapes, computer disks or similar materials of or
containing information of the type identified in the preceding paragraph, or
other materials or property of the Company of any kind (collectively,
“Materials”), unless necessary in accordance with my duties and
responsibilities
of engagement by the Company. In the event that I remove any Materials, I will
return such Materials to their proper files or places of safekeeping as
promptly
as possible after the removal has served its specific purpose. Except as may be
necessary in the discharge of my assigned duties, I will not make, retain,
remove or distribute any copies of any of such Materials for any reason
whatsoever and I will not divulge to any third person the nature or contents of
any of such Materials or of any other oral or written information. Upon the
termination of my engagement with the Company, I will return to the Company all
originals and copies of such Materials and all other tangible or intangible
company property then in my possession, whether prepared by me or by others.

3.     I acknowledge that any and all writings, documents, inventions,
discoveries, computer programs or instructions (whether in source code, object
code, or any other form), algorithms, formulae, plans, customer lists,
memoranda, tests, research, designs, specifications, models, data, diagrams,
flow charts, and/or techniques (whether reduced to written form or otherwise)
that at the request or suggestion of the Company I make, conceive, discover, or
develop, either solely or jointly with any other person, at any time during the
term of my engagement, whether during working hours or at the Company’s
facility
or at any other time or location (collectively, “Intellectual Work Product”)
will be the sole and exclusive property of the Company. I will

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promptly and fully disclose all the Intellectual Work Product to the Company,
and I will have no claim for additional compensation for the Intellectual Work
Product.

4.     I acknowledge that all Intellectual Work Product that is
copyrightable will be considered a work made for hire under United States
Copyright Law. To the extent that any copyrightable Intellectual Work Product
may not be considered a work made for hire under the applicable provisions of
the copyright law, or to the extent that, notwithstanding the foregoing
provisions, I may retain an interest in any Intellectual Work Product that is
not copyrightable, I hereby irrevocably assign and transfer to the Company any
and all right, title, or interest that I may have in the Intellectual Work
Product under copyright, patent, trade secret and trademark law, in perpetuity
or for the longest period otherwise permitted by law, without the necessity of
further consideration. The Company will be entitled to obtain and hold in its
own name all copyrights, patents, trade secrets and trademarks with respect
thereto.

5.     At the sole request and expense of the Company either before or
after the termination of my engagement I will assist the Company in acquiring
and maintaining copyright, patent, trade secret and trademark
protection upon,
and confirming its title to, such Intellectual Work Product. My assistance will
include signing all applications for copyrights and patents and other
documents,
cooperating in legal proceedings and taking any other steps considered
desirable
by the Company.

6.     I am not subject to any other agreement that I will violate by
signing this Agreement or which prevents me from disclosing confidential
information. I agree to disclose the existence and terms of this Agreement to
any employer for which I may work during the term of this Agreement or after
the termination of my engagement.

7.     I agree that the
period of time during which Sections 5, 6 and 7 of
my Employment Agreement survive after the termination of my Employment
Agreement
shall automatically be deemed extended by the period of time that the
Independent Contractor Agreement to which this Agreement is an exhibit (the
“Independent Contractor Agreement”) is in force, and the time periods specified
in Section 7(a)(iii) and 7(a)(v) of my Employment Agreement shall automatically
be deemed amended to apply to both the 12 month period immediately preceding my
termination of employment under the Employment Agreement and the period of time
during which I serve as an Independent Contractor under the Independent
Contractor Agreement.

This Agreement, together with the Independent Contractor
Agreement to which this Agreement is an exhibit, the letter agreement related
to
the termination of my Employment Agreement, and the agreements referenced
therein, constitutes the complete agreement between the Company and me and
supersedes all prior agreements, oral or written, and any other communication
relating to the subject matter of this Agreement. This Agreement may not be amended or modified except in writing and will be
governed by the laws of the State of Texas without regard to conflicts of law
principles of any jurisdiction. If any provision or portion of any provision of
this Agreement shall be determined to be void, invalid or unenforceable for any
reason, then the validity and enforceability of the remaining provisions or
portions of provisions will not be affected. The Company may assign this
Agreement to, and this Agreement will bind and inure to the benefit of, any
parent, subsidiary, affiliate or successor of the Company. I acknowledge that
this Agreement is not assignable by me. Except as otherwise provided by the
immediately subsequent sentence of this provision, I agree that any suit,
action
or other legal proceeding arising out of or relating

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to this Agreement, including, but not limited to, any action commenced by the
Company for preliminary or permanent injunctive or other equitable relief, will
be instituted in the United States District Court for the Northern District of
Texas, Dallas Division, or if such court does not have or will not accept
jurisdiction, in any court of general jurisdiction in Dallas County, Texas, and
I consent and submit to the personal and exclusive jurisdiction of such courts
in any such suit, action or proceeding. This provision shall not prevent the
Company from seeking to enforce this Agreement in any other court of competent
jurisdiction. I agree that service of process upon me may be effected by
certified mail or by any other means permitted by law, and I waive any
objection
which I may have to the laying of venue of any such suit, action or proceeding
in any such court and any claim or defense of inconvenient forum. If an action
at law or in equity is necessary to enforce or interpret the terms of this
Agreement, then the prevailing party shall be entitled to recover, in addition
to any other relief, reasonable attorneys’ fees, costs and disbursements.

8.     I acknowledge that it is impossible to measure fully in monetary damages the
injury that will be caused to the Company in the event of a breach or
threatened
breach of this Agreement, and I waive the claim or defense that the Company has
an adequate remedy at law. I will not, in any action or proceeding to enforce
the provisions of this Agreement, assert the claim or defense that such a
remedy
at law exists. The Company will be entitled to injunctive relief to enforce the
provisions of this Agreement, without prejudice to any other remedies the
Company may have at law or in equity.

	 	 	 	 	 	 	 
	Witness:	 	 	 	Agreed and Accepted:
	 	 	 	 	 	 	 
	Signature:	 	
/s/ JOE COWAN
	 	Signature:
	 	/s/ RAYMOND R. HOOD
	 	 	

	 	 	 	

	 	 	
(Company Representative)
	 	 	 	Raymond R. Hood
	 	 	 	 	 	 	 
	Name (Please Print):	 	 Joe Cowan

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