Document:

ex4-1_consult.htm

    Consulting
      Agreement

    

    

    THIS
      AGREEMENT made as of the 11th
      day of May,
      2007.

    

    B
      E T W E E N:

    

    Britannia
      Law Office, or nominee,

     (the
      “Consultant”)

    

    -
      and
      -

    

    Avitar,
      Inc.

    a
      body
      corporate with offices located in

    the
      State
      of Massachusets

    (the
      “Company”)

    

    IN
      CONSIDERATION OF the mutual covenants, terms and agreements herein
      contained, and for other good and valuable consideration, the receipt and
      sufficiency of which is hereby acknowledged, the parties hereto hereby agree
      as
      follows:

    

    
      	
              1.  

            	
              Services.
                The Consultant shall, during the Term (as defined below) provide
                the
                following services (the “Services”) to the Company, at such times as the
                Company may reasonably request:

            

    

    

    1.           Assist
      with business development;

    2.           Assist
      with SEC compliance matters;

    3.           Liaise
      with corporate finance groups;

    4.           Liaise
      with legal and accounting professionals acting forthe company; and

    
      	
               

            	
              5.

            	
              Advise
                on potential mergers and acquisitions as
                the       opportunities may
                arise;

            

    

    

    
      	
               

            	
              It
                is expressly understood, agreed and warranted that with respect to
                the
                matters described in clauses (A) and (B) below the Consultant and/or
                each
                of its nominees has no obligation to provide services to or for the
                Company, and during the term of this Agreement will not provide services
                to or for the Company, (A) in connection with the offer or sale of
                securities in any capital raising transaction and (B) directly or
                indirectly to promote or maintain a market for the Company’s
                securities.

            

    

    

    
      	
              2.  

            	
              Compensation.

            

    

    

    
      	
              (a)  

            	
              the
                Company shall pay to the Consultant the sum of Ten Thousand
                ($10,000.00) Dollars per month for each month of the term (as hereinafter
                defined) of this agreement. This payment will not be due until such
                time
                as the Company receives additional funding.  In the event no
                such funding continues on at least a monthly or quarterly basis,
                this
                provision [Section 2(a)] is
                void.

            

    

    
      	
              (b)  

            	
              the
                Company shall issue shares of common stock of  the Company in
                the aggregate amount equivalent to Fifty Thousand ($50,000.00) Dollars
                on
                the day prior to registration, specifically consisting
                of   shares equivalent to Twenty Five Thousand ($25,000.00)
                Dollars to nominee Cory Gelman and  shares equivalent to Twenty
                Five Thousand ($25,000.00) Dollars to nominee Michael Gelman, via
                S-8
                registration, as soon as practicable following the execution of this
                agreement, and shall deliver these shares to the two designated nominees
                Cory Gelman and Michael Gelman  within three business days after
                registration;

            

    

    

    
      	
              (c)  

            	
              The
                Company shall reimburse the Consultant for all reasonable expenses
                incurred in connection with this
                Agreement.

            

    

    

    The
      Company shall pay to the Consultant the amount owing for each month, in advance,
      on the 15th day
      of each month of the term of this agreement. The Company shall pay all amounts
      as called for herein to such place as directed by the Consultant.

    

    
      	
              3.  

            	
              Term.
                This Agreement shall commence as of the 11th  day
                of May, 2007 and shall remain in effect until the 10th  day
                of May, 2008 (the “Term”), provided that the parties may, in writing,
                agree to extend the Term. Notwithstanding the foregoing, this Agreement
                may be terminated at any time at the option of the Consultant or
                the
                Company, upon the failure of the other party  to comply with the
                covenants, terms and agreements of this Agreement and upon notice
                of such
                failure to such other party.

            

    

    

    Upon
      any
      termination of this Agreement, the Consultant shall deliver to the Company
      all
      written or descriptive matter which has been developed, maintained or copied
      by
      the Consultant in furtherance of this Agreement, or which may contain
      Confidential Information (as defined below), including, but not limited to
      drawings, files, lists, plans, blueprints, papers, documents, tapes or any
      other
      such media. The Consultant shall secure all such written or descriptive matter
      in locked files at all times to prevent their loss or unauthorized disclosure,
      and to segregate Confidential Information at all times from the material of
      others. In the event of loss or destruction of any such written or descriptive
      matter, the Consultant shall promptly notify the Company of the particulars
      of
      the same in writing.

    

    
      	
              4.  

            	
              Confidential
                Information.

            

    

    

    
      	
              (a)  

            	
                   For
                the purposes of this Agreement, the term “Confidential Information” means
                all information disclosed to, or acquired by, the Consultant, its
                employees or agents in connection with, and during the term of this
                Agreement which relates to the Company’s past, present and future
                research, developments, systems, operations and business activities,
                including, without limiting the generality of the
                foregoing:

            

    

    

    
      	
              (i)  

            	
              all
                items and documents prepared for, or submitted to, the Company in
                connection with this Agreement, and

            

    

    

    
      	
              (ii)  

            	
              all
                information specifically designated by the Company as
                confidential;

            

    

    

    but
      shall
      not include any information which was known to the Consultant, its employees
      or
      agents prior to the date hereof, or which was publicly disclosed otherwise
      than
      by breach of this Agreement.

    

    
      	
              (b)  

            	
                    The
                Consultant acknowledges that pursuant to the performance of its
                obligations under this Agreement, it may acquire Confidential Information.
                The Consultant covenants and agrees, during the Term and following
                any
                termination of this Agreement, to hold and maintain all Confidential
                Information in trust and confidence for the Company and not to use
                Confidential Information other than for the benefit of the Company.
                Except
                as authorized in writing by the Company, the Consultant covenants
                and
                agrees not to disclose any Confidential Information, by publication
                or
                otherwise, to any person other than those persons whose services
                are
                contemplated for the purposes of carrying out this Agreement, provided
                that such persons agree in writing to be bound by, and comply with
                the
                provisions of this paragraph. The Consultant shall obtain similar
                covenants and agreements to those contained in this paragraph for
                the
                benefit of the Company from each of its employees or agents who are,
                or
                may be, exposed to Confidential
                Information.

            

    

    

    
      	
              5.  

            	
              Warranties.
                The Consultant represents and warrants as
                follows:

            

    

    

    
      	
              (a)  

            	
              That
                it is under no obligation or
                restriction, nor will it assume any such obligation or restriction,
                which
                would in any way interfere or be inconsistent with, or present a
                conflict
                of interest concerning the services to be furnished by it under this
                Agreement.

            

    

    

    
      	
              (b)  

            	
              That
                all items delivered to the
                Company pursuant to this Agreement are original and that no portion
                of
                such items, or their use or distribution, violates or is protected
                by any
                copyright or similar right of any third
                party.

            

    

    

    
      	
              (c)  

            	
              That
                any information disclosed by
                the Consultant to the Company is not confidential and/or proprietary
                to
                the Consultant and/or any third
                party.

            

    

    

    The
      Company represents and warrants and acknowledges as follows:

    

    (a)           that
      the Consultant provides similar services to various other companies, and
      that

               the
      time spent delivering services will vary depending on the tasks at

    hand.

    
      	
              (b)  

            	
              that
                there is no minimum monthly time allotted to the Company's requirements
                by
                the Consultant;

            

    

    
      	
              (c)  

            	
              that
                the services to be provided to the Company will be provided as necessary,
                in the Consultants sole discretion.

            

    

    

    

    

    
      	
              6.  

            	
              Trade
                Marks and Trade Names. Notwithstanding any other provision of
                this Agreement, the Consultant shall have no right to use the Trade
                Marks
                or Trade Names of the Company or to refer to this Agreement or the
                Services, directly or indirectly, in connection with any product,
                service,
                promotion or publication without the prior written approval of the
                Company.

            

    

    

    
      	
              7.  

            	
              Notices.
                All notices, requests, demands or other communications required by
                this
                Agreement or desired to be given or made by either of the parties
                to the
                other hereto shall be given or made by fax or email to the last known
                fax
                or email address, and such communication shall constitute valid delivery
                of any notice as required
                hereunder.

            

    

    

    
      	
              8.  

            	
              Consultant’s
                Agreement With its Employees. The Consultant will have an
                appropriate agreement with each of its employees or others whose
                services
                it may require, which Agreement shall be sufficient to enable it
                to comply
                with all the terms of this
                Agreement.

            

    

    

    

    
      	
              9.  

            	
              Compliance
                With Laws. The Consultant agrees that it will comply with all
                applicable laws, ordinances, regulations and codes in the performance
                of
                its obligations under this Agreement, including the procurement of
                permits
                and certificates where required. The Consultant further agrees to
                hold
                harmless and indemnify the Company against any loss or damage to
                include
                reasonable solicitor’s fees that may be sustained by reason of the failure
                of the Consultant or its employees, agents or subcontractors to comply
                with such laws, ordinances, regulations and
                codes.

            

    

    

    
      	
              10.  

            	
              Entire
                Agreement. This Agreement sets forth the entire Agreement
                between the parties hereto in connection with the subject matter
                hereof.
                No alteration, amendment or qualification of this Agreement shall
                be valid
                unless it is in writing and is executed by both of the parties
                hereto.

            

    

    

    
      	
              11.  

            	
              Severability.
                If any paragraph of this Agreement or any portion thereof is determined
                to
                be unenforceable or invalid by the decision of any court by competent
                jurisdiction, which determination is not appealed or appealable,
                for any
                reason whatsoever, such unenforceability or invalidity shall not
                invalidate the whole Agreement, but the Agreement shall be construed
                as if
                it did not contain the particular provision held to be invalid and
                the
                rights and obligations of the parties shall be construed and enforced
                accordingly.

            

    

    

    
      	
              12.  

            	
              Further
                Assurances. The parties hereto covenant and agree that each
                shall and will, upon reasonable request of the other, make, do, execute
                or
                cause to be made, done or executed, all such further and other lawful
                acts, deeds, things, devices and assurances whatsoever for the better
                or
                more perfect and absolute performance of the terms and conditions
                of the
                this Agreement.

            

    

    

    
      	
              13.  

            	
              Successors
                and Assigns. The Consultant may assign this Agreement or any
                interest herein or subcontract the performance of any Services, at
                its
                sole discretion to a Nominee, without the prior written consent of
                the
                Company. This Agreement shall enure to the benefit of and be binding
                on
                the heirs, executors, administrators, successors and permitted assigns
                of
                the parties hereto.

            

    

    

    
      	
              14.  

            	
              Governing
                Law. This Agreement shall be governed by and construed
                in
                accordance with the laws of the State of
                Delaware.

            

    

    

    
      	
              15.  

            	
              Relationship.
                The Consultant shall perform the Services as an independent contractor.
                Nothing contained in this Agreement shall be deemed to create any
                association, partnership, joint venture, or relationship of Company
                and
                agent or employer and employee between the parties hereto or to provide
                either party with the right, power or authority, whether express
                or
                implied, to create any such duty or obligation on behalf of the other
                party. The Consultant also agrees that it will not hold itself out
                as an
                affiliate of or partner, joint venturer, co-Company or co-employer
                with
                the Company, by reason of the Agreement and that the Consultant will
                not
                knowingly permit any of its employees, agents or representatives
                to hold
                themselves out as, or claim to be, officers or employees of the Company
                by
                reason of the Agreement. In the event that the Company is adjudicated
                to
                be a partner, joint venturer, co-Company or co-employer of or with
                the
                Consultant, the Consultant shall indemnify and hold harmless the
                Company
                from and against any and all claims for loss, liability or damages
                arising
                therefrom.

            

    

    

    
      	
              16.  

            	
              Construction.
                In this Agreement, except as otherwise expressly provided , all words
                and
                personal pronouns relating thereto shall be read and construed as
                the
                number and gender of the party or parties referred to in each case
                require
                and the verb shall be read and construed as agreeing with the required
                word and pronoun.

            

    

    

    
      	
              17.  

            	
              Headings.
                The division of this Agreement into paragraphs and the use of headings
                is
                for convenience of reference only and shall not modify or affect
                the
                interpretation or construction of this Agreement or any of its
                provisions.

            

    

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

     

    

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

    

    AVITAR,
      INC.

    

    

    

    

    Per:_____________________

    

    

    

    

    

    BRITANNIA
      LAW
      OFFICE

    

    

    

    

    Per:  ___________________EX-10.1

 

Exhibit 10.1

	 	 	 
	

	 	Scott A. Crum 

Senior Vice President and

Director, Human Resources

	 
	 	 
	 

	 	ITT Corporation
	 
	 	 
	 

	 	4 West Red Oak Lane

White Plains, NY 10604

tel 914 641 2010

fax 914 641 2964

scott.crum@itt.com

Personal and Confidential

	 	 	 
	Date:

	 	July 10, 2007
	 
	 	 
	To:

	 	George E. Minnich, Senior Vice President and Chief Financial
Officer — ITT Corporation
	 
	 	 
	From:

	 	Scott A. Crum, Senior Vice President and Director Human
Resources — ITT Corporation
	 
	 	 
	Subject:

	 	Separation Memorandum

The purpose of this Separation Memorandum (the “Memorandum”) is to confirm our
understanding regarding your severance arrangements and separation from employment from ITT
Corporation and its affiliates (ITT) as set forth in this Memorandum and under the terms of
the ITT Senior Executive Severance Pay Plan (the “Senior Plan”). We agree that the terms of
this Memorandum will govern your severance arrangements and separation, notwithstanding the
terms of any other benefit plan in which you participate, except that your rights under the
Company’s qualified pension plans [including the ITT Salaried Investment & Savings Plan and
the ITT Salaried Retirement (the “Qualified Plans”)] will be governed by the terms of the
applicable plan, except as otherwise specifically noted herein. A copy of the Senior Plan
is attached. Upon the execution of the attached release and expiration of the review and
revocation period set forth in the Separation Agreement and General Release of Claims
(“Release”) to which this Memorandum is attached and incorporated by reference therein, ITT
agrees to make the payments and provide the benefits to you as set forth herein.

Expiration of Service and Severance Arrangements

Expiration of Service — You will continue to be employed as an active, full time employee
through July 31, 2007 (the “Termination Date”), at which time your active service shall
terminate. You will be paid your current annual base salary of $490,000 through the
Termination Date, in accordance with the Company’s standard payroll practices, procedures
and dates. In addition, subject to the

 

 

terms and conditions of this Memorandum, you and your dependants will continue to participate in
applicable ITT benefit plans through the Termination Date and as described herein. Upon signing
this Agreement, you will also confirm in writing that effective the close of business on June 30,
2007, you ceased being the Chief Financial Officer of ITT, and you will resign as an officer and
employee of ITT no later than the Termination Date.

Severance Pay — You will be eligible for 24 months of severance payments under your offer of
employment dated May 31, 2005, after the Termination Date and subject to the terms of the Senior
Plan. ITT will make these payments in the form of severance pay on the regular payroll schedule
(currently bi-weekly) through the period set forth below. You will continue to be paid your
current annual base salary of $490,000 throughout the severance period, provided you have not
become eligible for disability payments on or prior to your Termination Date. In the event you
become disabled on or prior to your Termination Date, your entitlement to any short-term
disability and/or long-term disability benefits shall be determined in accordance with the
applicable short-term or long-term disability plans and the treatment of any such benefits in
coordination with the above payments will be in accordance with the terms of such disability plans
and the Senior Plan. ITT agrees that it will either (i) not exercise any rights that it has under
the Senior Plan to pay any remainder of severance pay as a discounted lump sum, or (ii) to the
extent it does elect to pay your remaining severance in the form of a discounted lump sum, it will
make such election only in the last calendar year in which you are to receive severance pay.
Notwithstanding any other provision in this Agreement, in the event that ITT makes such a lump sum
election, ITT agrees that, except if subsection (ii) or (iii) of the following paragraph applies,
you shall continue to vest in relation to restricted stock grants, stock options and TSR awards as
if ITT had continued to pay severance in the form of periodic payments through July 31, 2009. In
the event of your death during the period you are receiving periodic severance payments, you have
designated your wife as your beneficiary for a discounted lump sum payment of the remaining
payments. You will not be entitled to receive any other pay or any other compensation from ITT
except as described in this Memorandum.

Except as specifically set forth in this letter, for purposes of the various benefit, equity and
incentive plans discussed in this Memorandum (other than the Qualified Plans and the ITT Deferred
Compensation Plan), your separation date will be deemed to be the earlier of (i) July 31, 2009
(ii) the date of your becoming a full time employee with any business or entity that competes
directly with ITT or (iii) the date of your engaging in any disqualifying conduct as defined in
the Senior Plan (referred to hereinafter as the “Severance End Date”).

For purposes of paragraph 9 of the Senior Plan, the decision as to whether you have engaged in
disqualifying conduct shall be as reasonably determined by the ITT Senior Vice President,
Director Human Resources and, in the event that such a determination is made, you will be given
reasonable notice and

July 10, 2007

2

 

opportunity to cure any such alleged disqualifying conduct, prior to any decision by ITT to
terminate your severance pay.

Responsibilities
— Until the Termination Date, you will work with the Chief Financial
Officer to transition responsibilities and will provide such assistance with other matters as the
Chairman of ITT may request.

Lump Sum Payment

In accordance with your offer of employment dated May 31, 2005, you will receive a payment in the
amount of $515,000 to be paid in a lump sum six months following your Termination Date.

Annual Incentive (Bonus)

You will be eligible for a pro rata incentive bonus award under the 1997 Annual Incentive Plan for
Executive Officers for performance year 2007 based on the number of full months of active service
in 2007 as a percent of the full year, currently expected to be seven months, subject to Company
performance and approval by the Compensation and Personnel Committee of the ITT Board of Directors
(the “Committee”), provided that your bonus (prior to proration) shall be no less than the
calculated target (i.e. $490,000 multiplied by 75%) as adjusted by the approved performance payout
factor for Corporate Headquarters. You will not be eligible for any bonus for performance year
2008 or beyond.

Stock Option Awards

Until your Severance End Date, you may exercise your stock options to the extent they are
currently exercisable or become exercisable prior to the Severance End Date (provided that no
stock option shall be exercisable beyond its original full term). For purposes of calculating the
vesting of your options and the exercise periods therefor, your employment period shall be deemed
to continue until the Severance End Date.

Grants Prior to 2006 under the 2003 Equity Incentive Plan:

	 	•	 	Options granted to you on July 1, 2005 are fully vested and will become exercisable on July
1, 2008 and remain exercisable for a period of three months following the Severance End Date.

2006 and 2007 Stock Option Grants:

	 	Ø 	 	 Options granted to you on March 6, 2006 are subject to cliff vesting on March 6,
2009. These options will vest on March 6, 2009 if your Severance End Date does not occur
prior to such date. Once vested, these options will be exercisable for a period of three
months following the Severance End Date.

July 10, 2007

3

 

	 	Ø 	 	 Options granted to you on March 7, 2007 are subject to cliff vesting on March 7, 2010.
Since your Severance End Date will occur prior to your vesting date, this award will be
forfeited in full on your Termination Date.

The exercise of your options will be in accordance with the terms of the 2003 Equity Incentive
Plan and the applicable Administrative Rules and Regulations in effect at the time of exercise.

After December 31, 2007, you will no longer be subject to the requirement for prior approval
before the purchase or sale of ITT stock. However, if you should have a transaction in ITT Common
Stock after December 31, 2007 that is reportable under the SEC’s rules and that occurs within six
months of another “opposite way” non-exempt transaction on or prior to that date, you will be
required to file a Form 4 to report that latter transaction and may be subject to liabilities with
respect thereto. You are also subject to the securities laws and ITT’s “insider trading” policies
in respect of any transaction you effect while in possession of material non-public information
regarding ITT stock. You may continue to clear any transaction with respect to such stock with the
Company’s legal department.

Restricted Stock Award:

	 	Ø 	 	Your 2006 restricted stock award of 5,215 shares awarded on March 6, 2006 will continue to
vest ratably on a monthly basis between the grant
date and March 6, 2009, (except that vesting will cease upon the
Severance End Date if that date occurs before March 6, 2009).
	 
	 	Ø 	 	 Your 2007 restricted stock award of 4,079 shares awarded on March 7, 2007 that was subject
to cliff vesting on March 7, 2010 is hereby modified to provide for ratable vesting on a
monthly basis between the grant date and March 7, 2010, (except that vesting will cease upon
the Severance End Date)

The receipt of vested restricted shares are subject to your payment to the company of any taxes
due with respect to those shares.

Special Restricted Stock Award

The special restricted stock award of 20,000 shares (10,000 shares pre-split) granted to you on
July 1, 2005 are subject to a vesting of 10,000 shares on July 1, 2008 and 10,000 shares on July
1, 2010. The restrictions on any unvested shares will be waived in full upon the Termination Date
and upon payment to the company of taxes due on such shares.

Long-Term Incentive Plan (TSR Awards)

Your 2005 Target Award of $500,000 is subject to a 36-month performance period, January 1, 2005
through December 31, 2007. The terms and conditions

July 10, 2007

4

 

of that award provide that because you are not retirement eligible when you cease active service,
that award will be forfeited in full.

You will be eligible to receive payment for your outstanding 2006 and 2007 TSR awards, following
the completion of the applicable performance period. Such payment, if any, will be based on the
number of full months of active employment and full months after the Termination Date but before
the Severance End Date and any payment for these awards will be prorated on that basis over the
36-month performance period. Accordingly, any payment for your outstanding 2006 and 2007 target TSR
awards will be calculated as follows:

	 	•	 	     2006 Target Award of $550,000. Your final payment value will be prorated,
calculated on the basis of the number of months of active employment and full months
after the Termination Date but before the Severance End Date during the 36-month
performance period ending December 31, 2008.
	 
	 	•	 	     2007 Target Award of $500,000. Your final payment value will be prorated,
calculated on the basis of the number of months of active employment and full months
after the Termination Date but before the Severance End Date during the 36-month
performance period ending December 31, 2009.

Nothwithstanding the foregoing, the 2006 and 2007 TSR Awards will not be paid until at least the
six-month anniversary of the Termination Date.

The ultimate value, if any, of your outstanding TSR awards will be determined based on ITT’s TSR
performance at the end of the performance period as measured against the S&P Industrials and
approved by the Compensation and Personnel Committee of the Board of Directors. Further, the
terms of the ITT 1997 Long-Term Incentive Plan shall prevail.

Vacation

You will receive a lump sum payment for any unused vacation for 2007. Payment, if any, will be
made in a lump sum promptly following your Termination Date. Please note that payment for unused
vacation will not count for any purpose under any employee benefit plan. You will not be eligible
for any vacation for the year 2008 or after.

Automobile Allowance

You will continue to receive your automobile allowance until your Severance End Date.

July 10, 2007

5

 

Benefit Plans

Benefit Plan Eligibility — During the active service period and until the Severance End Date, your
eligibility for certain employee benefit plans shall be as outlined in subsequent paragraphs of
this Memorandum, subject to the actual terms of the specific plans as contained in the various plan
documents. You will not be entitled to any benefits or perquisites not specifically covered in this
Memorandum. In the event of revisions to any or all of the subject plans, your benefits will not be
diminished except in accordance with the changes that are generally applicable to all
similarly-situated plan participants.

Salaried Retirement Plan and Excess Pension Plan — You are eligible to participate in these plans
during the active service period but not thereafter.

Investment and Savings Plan and Excess Savings Plan — You are eligible to participate in the
Investment and Savings Plan and in the Excess Savings Plan during the active service period but
not thereafter. After December 31, 2007, the restrictions on certain Plan transactions will no
longer apply and you will be able to make transactions through the ISP Access system without the
requirement for prior approval before changing investment funds.

Insurance Plans

Medical and Dental Insurance — You are eligible to continue coverage during the active service
period and through the last day of the month in which your severance payments cease. Despite the
termination of your employment, ITT will take action necessary to maintain your continued
eligibility through the severance payment period for coverage equivalent to that available to
active salaried employees, which may be provided by COBRA or other arrangements.

Group
Life Insurance — Your life insurance under the ITT Salaried Life Insurance Plan will continue
through the active service period but not thereafter. At the end of such period, you will be
eligible to convert the remainder without a medical examination, providing you do so within 31
days of the end of coverage. Accidental Death and Dismemberment Insurance under the ITT Salaried
Life Insurance Plan ceases on July 31, 2007.

ITT Group Accident Insurance Program for Officers and Directors — You will be covered under this
Program through the Termination Date. You will continue during this period to be eligible for the
non-contributory portion of this coverage and to purchase additional optional coverage.

Life Plus — You are eligible to continue your coverage under Life Plus during the active service
period but not thereafter. At the end of such period, you may

July 10, 2007

6

 

maintain all or part of your Life Plus coverage by requesting direct billing of premiums from
Marsh@WorkSolutions, the Program Administrator, at 1-800-552-9665.

Short-Term Disability and Long-Term Disability Insurance — Coverage under these plans ceases on
the Termination Date.

Business
Travel Accident Insurance and Voluntary Accident Insurance — You will be covered under this Program through the Termination Date but not thereafter.

Special Senior Executive Severance Pay Plan

During the active service period you will continue to be covered under the ITT Special Senior
Executive Severance Pay Plan (“Special Severance Plan”) in accordance with and subject to the
terms of said Plan. Accordingly, notwithstanding anything to the contrary herein, or in the
Special Severance Plan, if an Acceleration Event (as defined in the Special Severance Plan) shall
occur on or before July 31, 2007, you will be deemed to be a full-time, regular salaried employee
of ITT in Band A whose employment is terminated by the company other than for Cause, or who has
terminated his employment for Good Reason (as “Cause” and “Good Reason” are defined in the Special
Severance Plan). Hence, if an Acceleration Event occurs on or before July 31, 2007, you will be
entitled to all of the benefits provided in the Special Severance Plan for special severance
executives in Band A, subject to offset as provided below. Any severance payments and any other
severance benefits to which you may be entitled pursuant to the Special Severance Plan shall be
subject to offset by the severance payments and other severance benefits provided pursuant to this
Memorandum, such offset to be in accordance with and subject to the terms of “Offset” Paragraph 10
of the Special Severance Plan.

Tax Preparation and Financial Planning

You will be eligible for the Executive Tax Program through tax year 2008; reimbursement for 2007
and 2008 tax preparation work to be available in 2008 and 2009 respectively in accordance with
the terms of the Program. In addition, you will be eligible to receive Financial Planning
Assistance during 2007 to be paid by the company in accordance with its usual practice. The
company will not take any action which is intended to deny you continuing access to the Financial
Planning Assistance for future years at your own cost. Any reimbursement made pursuant to this
paragraph for fees under the Executive Tax Program and/or fees for Financial Planning Assistance
will be fully grossed-up for federal, state and local tax purposes.

July 10, 2007

7

 

Payroll Deductions

To the extent applicable, payroll deductions and benefit plan elections currently authorized by
you, as well as appropriate tax withholding, will continue during the active service period and the
severance pay period. If you wish to change the deductions or an election at any time during the
active service period or severance pay period, please contact the Human Resources or Payroll
departments.

Annual Physical

You will be eligible for company-paid annual physical examinations through 2009.

Miscellaneous

ITT hereby conveys to you as of the Termination Date, and you may retain as your personal
property, the laptop computer and Blackberry previously made available to you for use in
connection with your employment. Prior to the Termination Date, you will arrange for the IT
representatives in White Plains to delete all ITT data and leave on the laptop and Blackberry only
those programs and data that ITT is permitted to transfer to you at no cost and in compliance with
applicable law.

(You are encouraged to review this Memorandum and the attached Release with an attorney of your
own choosing, with the fee to be reimbursed by ITT with an appropriate tax “gross-up” if
necessary.)

July 10, 2007

8

 

The parties hereby indicate their agreement with the terms and conditions of this Memorandum and
the attached Release by signing and dating this Memorandum in the space provided below.

	 	 	 
	EMPLOYEE: George E. Minnich
	 	 
	 
	 	 
	/s/ George E. Minnich
 

	 	  
	Employee’s Signature
	 	 

	 	 	 	 	 
	STATE OF

	 	New York	 	 
	 

	 	Westchester
	 	 )
	COUNTY OF

	 	ss:	 	 

Subscribed and sworn before me this 10th day of
July, 2007.

	 	 	 
	 
	 	/s/ Peter A. Timpano Jr
	 
	 	PETER A. TIMPANO JR
	 
	 	Notary Public, State of New York
	 
	 	No. 01TI6090883
	Notary Public
	 	Qualified in Westchester County
	My Commission Expires:
	 	Commission Expires April 21,
2011

EMPLOYER: ITT Corporation

	 	 	 
	/s/ Scott A. Crum
 

	 	  
	Scott A. Crum, Senior Vice President and Director Human Resources
	 	 

	 	 	 	 	 	 	 
	STATE OF NEW YORK

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	COUNTY OF WESTCHESTER	 	ss:

Subscribed and sworn before me this 10th day
of July, 2007.

Notary Public

My Commission Expires:

	 	 	 
	/s/ Peter A. Timpano Jr

	PETER A. TIMPANO JR

	Notary Public, State of New York

	No. 01TI6090883

	Qualified in Westchester County

	Commission
Expires April 21,
2011

July 10, 2007

9

 

Separation Agreement and General Release of Claims

The Separation Agreement and General Release (“Release”) is made and entered into by and between
ITT Corporation. (“ITT” or the “Company”) and George E. Minnich (referred to herein in the first
person). In consideration of the mutual promises contained herein, it is agreed as follows:

	1.	 	I will be employed with ITT for the active service period set forth in the Separation
Memorandum entered into between ITT and myself (the “Memorandum”), to which this Release is
attached and incorporated by reference. After my active service period ends, I will receive
severance payments for twenty-four (24) months of my annualized base salary of $490,000, and
the other benefits described in the Memorandum, subject to the terms and conditions set forth
in the Memorandum.
	 
	2.	 	I agree to the following:

	 	(a)	 	I am not eligible and will not receive any compensation, fringe benefits or
employee benefits or any pay in lieu of notice or any severance or termination pay
except as provided in the Memorandum. I agree and acknowledge that the pay set forth in
the Memorandum is good and sufficient consideration for all of my promises, obligations,
and covenants set forth in the Memorandum and in this Release.
	 
	 	(b)	 	On behalf of myself and my heirs, executors, administrators, personal and legal
representatives, successors and assigns (“Releasors”), I waive, release and forever
discharge ITT, its current and former subsidiaries, affiliates, divisions and related
entities and their predecessors, successors and assigns, and all of their past and
present officers, directors, shareholders, agents, representatives, administrators,
employees, and benefit plans (collectively “Releasees”) from any and all claims,
demands, debts, liabilities, obligations, expenses (including attorney’s fees and
costs), promises, covenants, controversies, grievances, claims, suits, actions or causes
of action, in law or in equity, known or unknown to me, foreseen or unforeseen,
contingent or not contingent, liquidated or not liquidated, which I may have had in the
past, may have now, or may in the future claim to have against Releasees arising with
respect to any incident, event, act or omission occurring at any time prior to my
signing of this Release. This Release shall not operate as a release or waiver of claims
or rights that may arise after the date of its execution, for vested benefits, for
indemnification pursuant to Company policy or applicable law, for coverage under any
directors’ and officers’ personal liability or any fiduciary liability, insurance policy
in

 

 

	 	 	 	accordance with the terms of such policy, or any rights you may have as a
shareholder in a public company (collectively, the “Reserved Rights”) and this
Release shall not affect my right to seek enforcement of the terms and conditions
of the Memorandum and this Release.
	 
	 	(c)	 	There are various state and federal laws that prohibit employment discrimination
including discrimination on the basis of age, sex, race, color, national origin,
religion, disability and veteran status and these laws are enforced through the United
States Equal Employment Opportunity Commission, the United States Department of Labor,
various federal and state agencies, and the federal and state courts. This Release
specifically includes, but is not limited to, any and all claims and causes of action
arising under tort or contract law or specific statutes prohibiting discrimination based
on sex, color, race, national origin, religion, disability, veteran status or age,
including without limitation, the Americans With Disabilities Act, the Age
Discrimination in Employment Act of 1967, Title VII of the Civil Rights Act of 1964, the
Civil Rights Acts of 1866 and 1871, the Equal Pay Act, or any other federal, state,
city, or local laws.
	 
	 	(d)	 	In consideration of the benefits provided to me under the Memorandum and this
Release, I agree to waive and will not assert any of the claims or causes of action that
I have waived in this Release before any federal or state court, any federal or state
agency, or in any public or private arbitration. This prohibition does not apply if it
would be a violation of applicable law or regulation. If this prohibition does not
apply, however, and a charge or lawsuit is filed by or on behalf of me, I agree not to
seek or accept any personal relief, award, monetary damages or other benefits in
connection with or based on such charge or lawsuit. This paragraph is not intended to
limit my right to commence and maintain legal action for the sole purpose of enforcing
the Memorandum and this Release or the Reserved Rights.
	 
	 	(e)	 	I also agree to waive, release and forever discharge Releasees from any and all
claims, causes of action and lawsuits that may arise from any incident, event, act or
omission occurring during my active service period or severance pay period as those
terms are defined in the Memorandum, except for the purpose of enforcing the Memorandum
and this Release or the Reserved Rights.

	3.	 	Releasees hereby waive, release and forever discharge Releasors from all claims, demands,
debts, liabilities, obligations, expenses (including attorney’s fees and costs), promises,
covenants, controversies, grievances,

			
	 	 	 
	July 10, 2007
	 	2

 

 

	 	 	claims, suits, actions or causes of action, in law or in equity, known or unknown, foreseen
or unforeseen, contingent or not contingent, liquidated or not liquidated, which Releasees
may have had in the past, may have now, or may in the future claim to have against Releasors
arising with respect to any incident, event, act or omission occurring at any time prior to
my signing of this Release, provided however, that this Release shall not operate as a
release or waiver of claims or rights that arise after the date of its execution. Nor shall
this Release in any way apply to or waive any of Releasees’ rights to enforce the terms and
conditions of the Memorandum and this Release through legal action.
	 
	4.	 	After my service period ends, notwithstanding Section 7 of the ITT Senior Executive Severance
Pay Plan, I will receive no future benefits, compensation or perquisites (including but not
limited to severance pay and benefits) from ITT except as set forth in the Memorandum.
	 
	5.	 	Except as may be required under applicable law or the rules of a stock exchange or national
securities quotation system, I agree to keep the Memorandum and this Release confidential and
not to disclose their contents to anyone except my immediate family, my financial or legal
consultants, and appropriate governmental agencies that require this information.
	 
	6.	 	I agree not to slander, defame or otherwise intentionally injure the reputation of ITT or its
officers, directors, employees, agents, representatives, or products.
	 
	7.	 	I acknowledge that: (i) I have been advised in writing to consult with an attorney of my own
choice regarding this Release and the Memorandum; (ii) I have been advised in writing that I
may have at least 21 days from my receipt of this Release and the Memorandum to review and
consider them; (iii) I actively participated in the negotiation of the terms and conditions of
this Release and the Memorandum; (iv) I fully understand those terms and conditions; (v) I am
voluntarily and of my own free will executing this Release and the Memorandum on the date
reflected below; and (vi) during a period of seven days following my execution of this Release
and the Memorandum, I may revoke such executions and this Release and the Memorandum shall not
be effective or enforceable until such seven day period has expired. Should I desire to revoke
this Release and the Memorandum, my revocation must be in writing and addressed to Scott A.
Crum, Senior Vice President and Director Human Resources, ITT, 4 West Red Oak Lane, White
Plains, NY 10604 and delivered to Mr. Crum within the seven day revocation period.
	 
	8.	 	ITT and any Releasee shall not be liable for any other monies or payment to me or on my
behalf other than as described in this Release and the

			
	 	 	 
	July 10, 2007
	 	3

 

 

	 	 	Memorandum. This Release and the Memorandum, which is incorporated herein, contain the entire
agreement between me, ITT, and all Releasees relating to the subject matter thereof. This
Release fully supersedes any and all prior agreements or understandings, whether oral or
written. I represent and acknowledge that in signing this Release and the Memorandum, I have
not relied upon any representation or statement, oral or written, not set forth herein. No
amendment to this Release or the Memorandum shall be binding unless it is in writing,
expressly designated as an amendment, dated, and signed by the parties.
	 
	9.	 	Nothing in this Release or the Memorandum constitutes an admission of liability by ITT or any
Releasee or me, and this Release or the Memorandum will not be used by me, ITT or any other
entity or person as evidence in any proceeding or trial, except to enforce the terms of this
Release and Memorandum or the Reserved Rights.
	 
	10.	 	This Release and the Memorandum shall be construed in accordance with the laws of the State
of New York. Should any provision of this Release or the Memorandum be determined invalid or
unenforceable, the validity of the remaining provisions shall not be affected and shall remain
in full force and effect to the maximum extent permitted by law.
	 
	11.	 	Any dispute, controversy or claim arising out of or relating to this Release or the
Memorandum, or to an alleged breach thereof, shall be finally resolved by arbitration. The
arbitration shall be conducted by one (1) arbitrator jointly agreed to by ITT and me or, if we
cannot agree on an arbitrator, appointed by the American Arbitration Association. The
arbitration shall be conducted in accordance with the Employment Dispute Resolution Rules then
in effect of the American Arbitration Association, which shall administer the arbitration and
act as appointing authority. The arbitration, including the rendering of the award, shall take
place in White Plains, New York, and shall be the exclusive forum for resolving such dispute,
controversy or claim. For the purpose of this arbitration, the provisions of this Release and
Memorandum and all rights and obligations thereunder shall be governed and construed in
accordance with the laws of New York, but the arbitrator shall not have the power to award
punitive or exemplary damages. The decision of the arbitrator shall be binding upon the
parties hereto, and each party shall be responsible for its own expenses and attorney’s fees
in connection with the arbitration. The decision of the arbitrator shall be executory, and
judgment thereon may be entered by any court of competent jurisdiction. ITT will pay ninety
percent of the American Arbitration Association’s mediation administrative fees and expenses
of the mediator and I will pay ten percent. ITT will pay seventy-five percent of the American
Arbitration Association’s arbitration administrative fees and the fees and expenses of the
arbitrator, and I will pay twenty-five percent.

			
	 	 	 
	July 10, 2007
	 	4

 

 

	12.	 	I have carefully read this Release and the Memorandum, fully understand their provisions,
and my signature below indicates my understanding and agreement with their terms and
conditions.

The original executed Release and the Memorandum must be returned to Scott A. Crum, Senior Vice
President and Director Human Resources, ITT Corporation, 4 West Red Oak Lane, White Plains, NY
10604.

EMPLOYEE: George E. Minnich

	 	 	 
	/s/ George E. Minnich
 

Employee’s Signature

	 	 

STATE OF

COUNTY OF

Subscribed and sworn before me this 10th day of July, 2007

	 	 	 	 	 
	Notary Public
	 	 	 	 
	My Commission expires:

	 	/s/ Peter A. Timpano Jr
	 	 
	 

	 	PETER A. TIMPANO JR	 	 
	 

	 	Notary Public, State of New York	 	 
	 

	 	No. 01TI6090883	 	 
	 
	 	Qualified in Westchester County
	 

	 	Commission Expires April 21,
2011	 	 

EMPLOYER: ITT Corporation

	 	 	 
	/s/ Scott A. Crum
 

Scott A. Crum, Senior Vice President and Director Human Resources

	 	 

STATE OF NEW YORK

COUNTY OF WESTCHESTER

Subscribed and sworn before me this 10th day of July, 2007

	 	 	 	 	 
	Notary Public
	 	 	 	 
	My Commission expires:

	 	/s/ Peter A. Timpano Jr
	 	 
	 

	 	PETER A. TIMPANO JR	 	 
	 

	 	Notary Public, State of New York	 	 
	 

	 	No. 01TI6090883	 	 
	 
	 	Qualified in Westchester County
	 

	 	Commission Expires April 21,
2011	 	 

			
	 	 	 
	July 10, 2007
	 	

5

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