Document:

ex10-1.htm

 

 

Exhibit 10.1

November 14, 2011

Separation Agreement and Release of Claims

This Separation Agreement and Release of Claims (the “Agreement”) is made and entered into by __________ for him/herself and his/her heirs, dependents, beneficiaries, executors, administrators, successors, and assigns (hereinafter referred to as “you”), and Tengion, Inc., any current or former parent, subsidiary, affiliate, successor, predecessor, assigns or otherwise related companies, and any current or former employees, agents, officers, attorneys, directors, shareholders, and employee benefit programs of any of them, and their agents and insurers, (hereinafter the “Company” or “we”).

1.           In accordance with our discussions, your active employment with the Company shall end on or before 12/31/11. You will be paid your salary through your last day of employment (the “Separation Date”).  You will be paid for any accrued, unused vacation pay, less applicable taxes and other withholdings.  This payment will be made to you by no later than the first regularly scheduled payday after the Separation Date.

2.           Provided that you return a signed copy of this Agreement within the time period set forth under Section 10 and that you remain employed through the Separation Date, you will receive separation pay equal to 9 month(s) and 0 week(s) of your base salary (“the Severance Period”) less applicable tax withholdings, payable in accordance with Company’s regular payroll cycle, beginning on the next regular payday following the Separation Date that is also at least eight days after you return a signed copy of this letter.  Pursuant to the Company’s Management Severance Pay Plan (the “Plan”), you will also receive your 2011 Annual Target Bonus (as defined in the Plan), computed in accordance with the terms of the Plan. During this Severance Period, if you elect COBRA to continue receiving those health, dental and vision benefits of the Company’s group benefits program in which you are enrolled as of the date hereof, the cost of COBRA continuation coverage for the duration of the Severance Period shall be the employee contribution amount paid by similarly situated active employees.  After the Severance Period ends, the cost of COBRA continuation coverage will be the full cost of coverage plus a 2% administrative fee, as permitted under COBRA, for the remainder of the COBRA continuation coverage period.  A separate letter explaining your rights under the COBRA will be forwarded to your home.

3.           We will not contest your unemployment compensation in the Commonwealth of Pennsylvania or State of North Carolina, whichever applies.  However, we can not provide you any assurance or legal guidance regarding the laws and regulations of either Pennsylvania or North Carolina concerning unemployment compensation.

4.           All benefits of any kind, other than as expressly provided in this Agreement, will cease as of the Separation Date.  Vesting or forfeiture of stock options, if any, will be in accordance with the terms of the applicable plan and agreements.  Notwithstanding the foregoing, you will continue to be considered an Eligible Employee under the Company’s Change In Control Payment Plan and entitled to your CIC Benefit after your Separation Date, so long as with respect to any such Change in Control either of the following two events occurs prior to March 31, 2011: (a) the Company publicly announces that it has entered into a definitive agreement, binding term sheet or other binding obligation providing for such Change in Control or (b) the receipt by the Company of a bona fide unsolicited offer by an unrelated third party, which if accepted would result in a Change in Control, providing such unsolicited offer is not thereafter rejected.  For purposes of determining your CIC Benefit, if any, Total Annual Compensation shall mean an amount calculated by adding your annualized base salary and target annual bonus (assuming payment at 100% level) in effect on your last day of employment, without giving effect to any severance payments under this Agreement.  Capitalized terms used in this paragraph 4 and not otherwise defined in this Agreement, shall have their respective meanings as set forth in the Change in Control Payment Plan.

 

 

  

  

  

 

 

5.           You agree that you shall not engage, and the Company agrees to use its best efforts to prevent its directors and senior officers from engaging, in any communications whatsoever of any kind, either written or verbal, express or implied, which shall disparage, demean or impugn one another or interfere with the other’s existing or prospective business relationships, economic or career prospects, personal or professional reputation and/or standing.  The only exception to the foregoing shall be in those circumstances in which you are, or the Company is, obligated to provide information in response to an investigation by a duly authorized governmental entity or in connection with legal proceedings.  Notwithstanding the foregoing, if the Company receives an inquiry regarding your employment, it will provide to the requesting party only the following information:  (i) confirmation that you were employed by the Company and the time-frame (by date) of your employment; (ii) your title; (iii) your job description; and (iv) your final compensation level.

6.           You agree that the confidentiality, non-competition and invention assignment agreement between you and the Company, a copy of which has been provided to you with this Agreement (the “Existing Employee Confidentiality Agreement”) is valid and in force as of the Separation Date and that after the Separation Date you will remain bound thereby and will continue to comply with the terms thereof.

It is understood and agreed that all credit cards, security key cards, telephone cards, car service cards, computer software or hardware, Company identification cards, files (including computer and other electronic files), papers, memoranda, letters, handbooks and manuals, facsimile or other communication that were written, authorized, signed, received or transmitted during or prior to your employment and any Company property (including, without limitation, any computer hardware or software, or communications equipment) in your possession are and remain the property of the Company and, as such, are not to be removed from the Company’s offices. In addition, any such materials or property which you possess, whether in paper or electronic format, but which are not in the Company’s offices, are to be returned immediately, and no later than seven days from your receipt of this Agreement. You further understand that you are no longer authorized to access the Company’s computer systems as of the Separation Date.

 

7.           This section contains a waiver of potentially important rights.  Please read it carefully.  In exchange for the benefits you will receive under this Agreement, to which you would not otherwise be entitled, you agree to waive all claims against the Company and hereby fully and finally release and discharge the Company from liability for any claims or damages that you may have against it as of the date of this Agreement, whether known or unknown to you.  This waiver and release includes, but is not limited to, any claims arising under any federal, state or local law or ordinance, tort, employment contract (express or implied), public policy, whistleblower law, wrongful discharge or any other obligation including any claims arising under the Age Discrimination in Employment Act, as amended, the Older Worker Benefits Protection Act, Civil Rights Act of 1866, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans With Disabilities Act of 1990, the Employee Retirement Income Security Act of 1974, the Worker Adjustment Retraining and Notification Act, the Family and Medical Leave Act, the Fair Labor Standards Act, the Fair Credit Reporting Act, the Occupational Safety and Health Act, the Immigration Reform Control Act, the retaliation provisions of the Sarbanes-Oxley Act of 2002, the Equal Pay Act, the Dodd-Fink Wall Street Reform and Consumer Protection Act, the Uniformed Services Employment and Reemployment Act, the Genetic Information Nondiscrimination Act, the Health Insurance Portability and Accountability Act, the Pennsylvania Human Relations Act; the Pennsylvania Whistleblower Law, the Pennsylvania Equal Pay Law, the Pennsylvania Wage Payment and Collection Law, the Pennsylvania Personnel File Inspection Act, the retaliation provisions of the Pennsylvania Workers' Compensation Law, the North Carolina Retaliatory Employment Discrimination Act, the North Carolina Equal Employment Practices Act, the North Carolina Communicable Disease Law, the North Carolina Persons With Disabilities Protection Act, any applicable North Carolina Wage and Hour Laws, the retaliation provisions of the North Carolina Worker’s Compensation Law, and all applicable state laws and regulations.   This waiver and release also includes, but is not limited to, any and all claims for wages, bonuses, equity grants or options, monetary or equitable relief or other damages of any kind, vacation pay, other employee fringe benefits or attorneys’ fees.  By signing this Agreement you are also waiving and releasing any claims for wages or benefits or any other form of compensation you may have under, among other things, any employment agreement or contract you have with the Company.

 

 

 

  

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You understand that any payments or benefits provided to you under the terms of this Agreement do not constitute an admission by the Company that it has violated any law or legal obligation with respect to any aspect of your former employment or termination therefrom.

You also agree, to the extent consistent with applicable law, not to initiate any legal action, charge or complaint (“action”) against the Company in any forum whatsoever and to immediately discontinue any such action previously commenced.  Further, to the extent any such action has been or is brought, you expressly waive any claim to any form of monetary or other damages or any other form of recovery or relief in connection with any such action, or in connection with any action brought by a third party.  You further agree to release and discharge the Company not only from claims you could make on your own behalf, but also specifically waive any right to become, and promise not to become, a member of any class in any proceeding or case asserting claims(s) against the Company, in whole or in part, from any event which occurred as of the date of this Agreement.  If, by no action on your part, you become a mandatory member of a class from which you cannot, by operation of law or order of court, opt out, you shall not be required to pay for any legal fees or costs incurred by the Company as a result.  If you breach any provision of this Section 7, you will pay any reasonable legal fees and costs incurred by the Company as a result of such breach.  The only exception to the foregoing provision regarding the reimbursement of costs and attorneys’ fees is the extent to which the provision relates to claims under the Age Discrimination in Employment Act in which you are contesting the validity of this Separation Agreement and Release of Claims.

 

 

  

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This Section 7 is not intended to preclude you from (1) enforcing the terms of this Agreement; (2) challenging the knowing and voluntary nature of this Agreement; or (3) filing a charge with, or participating in any investigation or proceeding conducted by, the Equal Employment Opportunity Commission, provided, however, that you give up the right to recover damages and attorneys’ fees from such a proceeding.

It is understood that this Agreement is not intended to and does not affect any rights or claims arising after the date hereof.

8.            Except as provided herein, you acknowledge that the Company has paid all sums owed to you, including but not limited to all salary, bonuses, commissions, business expenses, allowances, vacation pay and other benefits and perks as a result of your employment with the Company and/or the termination of that employment.  You further acknowledge that in the absence of this Agreement, you would not be entitled to, among other things, the payments and arrangements specified in this Agreement.

 

9.           This Agreement (a) supercedes any prior understanding, agreement, practice or contract, oral or written, between you and the Company relating to your employment or compensation; (b) may be modified only by a writing signed by both parties; (c) is not assignable or transferable by you; and (d) will be interpreted, enforced and governed by the substantive law of the State of Delaware.  Notwithstanding the foregoing, the parties acknowledge and agree that the Existing Employee Confidentiality Agreement referred to in Section 6 hereof shall remain in full force and effect according to its terms.

 

10.           By signing below you agree to be legally bound by the terms of this Agreement and acknowledge that you have carefully read and completely understand the terms of this Agreement and are signing it knowingly, voluntarily and without duress, coercion or undue influence.  You further agree that this Agreement contains the entire Agreement between you and Company, and that you have not relied on any representation or statement not set forth in this Agreement.  You are advised to consult with an attorney before signing this Agreement.  You have forty-five (45) days from the date of this Agreement, which is set forth at the top of this Agreement, to consider this document.  If you have not returned a signed copy of this Agreement by 5:00 P.M. on December 29, 2011, the Company will assume that you have elected not to sign it and the offer will be considered withdrawn. If you choose to accept the terms of this Agreement by signing below, you will have an additional seven (7) days following the date of your signature to revoke the Agreement in writing.  To effect such revocation, you should send a letter stating so to the Company directed to A. Brian Davis, Chief Financial Officer, Tengion, Inc., 2900 Potshop Lane, Suite 100, East Norriton, Pennsylvania  19403.  This Agreement shall not become effective or enforceable until the revocation period has expired without you revoking this Agreement.

 

 

 

  

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In witness whereof, the parties have executed this Agreement as of the dates set forth below.

TENGION, INC.

 

 

	
By:

	
 

	  	
 

	
 

	
Name:

	
A. Brian Davis

	  	  
	
 

	
Title:

	
CFO and VP, Finance

	  	  
	 	 	 	 	 
	 
Dated:_____________________________ 

	 	 Dated:________________________

 

 

 

 

  

5

  

 

 

 

OLDER WORKERS BENEFIT PROTECTION ACT

INFORMATION

This Release is provided pursuant to the Older Workers Benefit Protection Act (“OWBPA”), 29 U.S.C. § 626(f).  The Release is requested in connection with an exit incentive and/or other employment termination program offered to a group of employees, i.e., all employees who have been or will be terminated as a result of the reduction in force at Tengion, Inc.  As such, OWBPA requires that all employees who are requested to sign this Release be informed as to the following:

	
  

	
(I)

	
any class, unit, or group of individuals covered by such program, any eligibility factors for such program, and any time limits applicable to such program; and

	
  

	
(II)

	
the job titles and ages of all individuals eligible or selected for the program, and the ages of all individuals in the same job classification or organizational unit who are not eligible or selected for the program.

 

 

 

  

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PROGRAM ELIGIBILITY FACTORS

An employee of Tengion, Inc. is eligible to receive his or her severance payments as may be provided in that certain Tengion, Inc. Severance Pay Plan, effective as of May 11, 2011 or that certain Tengion, Inc. Management Severance Pay Plan, effective as of May 11, 2011, as applicable, less statutory deductions required by law provided that the employee meets all the following requirements:

	
  

	
1.

	
Is a current employee of Tengion, Inc. at the time of termination;

	
  

	
2.

	
Has been involuntarily terminated from employment with Tengion, Inc. for reasons other than a discharge for cause; and

	
  

	
3.

	
Signs an agreement releasing Tengion, Inc. and any of their affiliates or subsidiaries from all claims that relate to his or her employment or termination.

 

 

 

 

7ex101.htm

Exhibit 10.1

 

 

 

		  

14114 CHINKAPIN DRIVE  u ROCKVILLE, MD 20850

              WWW.WEINSWEIGADVISORS.COM

 

 

November 21, 2011

Todd Hays

President & CEO

Game Trading Technologies, Inc.

10957 McCormick Road

Hunt Valley, Maryland 21031

E-mail: toddhays@gtti.com

The purpose of this letter is to set forth the terms of the engagement between WeinsweigAdvisors LLC (“WA”) and Game Trading Technologies, Inc., and Certain Subsidiaries (collectively, the “Companies”).  Upon execution of this letter by the parties below and the consent of the parties indicated in the signature blocks below, this letter will constitute an agreement between the Companies and WA.

	
1.  

	
Description of Services

Marc Weinsweig (“Weinsweig”) will serve as Chief Restructuring Officer (“CRO”) of the Companies, reporting to the Board of Directors. WA will also provide the assistance of its staff to serve as Temporary Employees of the Company.  The CRO and Temporary Employees shall be considered to stand within the attorney client privilege among or between the Company and its counsel.

Our scope will encompass the following activities:

	
●  

	
Assist with communications to key stakeholders including the secured lender, 2nd and 3rd lienholders, unsecured creditors, Board of Directors, employees and potential buyers;

	
●  

	
Analyze and monitor short-term cash flow and financing requirements;

	
●  

	
Continue to assess various strategic alternatives to maximize value;

	
●  

	
Develop a plan of reorganization including an integrated financial model to potentially serve as a contingency to a 363 asset sale;

	
●  

	
Lead contingency planning efforts for a potential bankruptcy filing and aid in the completion of bankruptcy reporting requirements should a bankruptcy occur;

	
●  

	
Lead the process related to a potential sale of the business including identifying potential buyers, preparing due diligence materials and negotiating terms with potential buyers; and,

	
●  

	
Provide such other similar services as may be requested by the Companies.

	
2.  

	
Compensation

Our fee will be $150,000 through January 16, 2012 and paid in advance in three installments:  (1)  $50,000 on or before December 2, 2011 (2) $50,000 on or before December 16, 2011 and (3) 50,000 on or before December 30, 2011, plus reimbursement of out-of-pocket expenses such as travel, lodging and duplication charges. Should additional assistance be required after January 16, 2012, WA will provide you with a budget (“Budget”) on or before January 16, 2012 and earn an hourly rate of $400 for work completed after January 16, 2012, not to exceed the Budget without your permission.  WA shall be reimbursed for reasonable fees and expenses of its counsel incurred in connection with enforcement of this agreement.   The contract can be modified any time upon the mutual consent of both parties.

	
3.  

	
Conflicts

WA is not currently aware of any relationship that would create a conflict of interest with those parties-in-interest of which you have made us aware except that we wish to bring your attention to the following.  WA has served companies in numerous cases, both in and out of court, it is possible that WA may have rendered services to or have business associations with other entities or people, which had or have or may have relationships with key parties.  In the event you accept the terms of this engagement, WA will not represent the interests of any such entities in connection with this matter.

 

  

  

  

 

		  

14114 CHINKAPIN DRIVE  u ROCKVILLE, MD 20850

              WWW.WEINSWEIGADVISORS.COM

 

	
4.  

	
Confidentiality

 

WA shall keep as confidential all non-public information received from the Companies in conjunction with this engagement, except:  (i) as requested by you; (ii) as required by legal proceedings or (iii) as reasonably required in the performance of this engagement.  All obligations as to non-disclosure shall cease as to any part of such information to the extent that such information is or becomes public.

 

	
5.  

	
Indemnification

The Companies agrees to indemnify and hold harmless each of WA’s members, employees, agents, representatives and subcontractors (each, an "Indemnified Party" and collectively, the "Indemnified Parties") against any and all losses, claims, damages, liabilities, penalties, obligations and expenses (including the costs for counsel or others as and when incurred in investigating, preparing or defending any action or claim, whether or not in connection with litigation in which any Indemnified Party is a party, or enforcing the Agreement (including these indemnity provisions)) as and when incurred, caused by, relating to, based upon or arising out of (directly or indirectly) the Indemnified Parties' acceptance of or the performance or nonperformance of their obligations under the Agreement; provided, however, such indemnity shall not apply to any such loss, claim, damage, liability or expense to the extent it is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from such Indemnified Party's willful misconduct.  The Companies also agree that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Companies for or in connection with the engagement of WA, except to the extent for any such liability for direct and actual damages that are found in a final judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from such Indemnified Party's willful misconduct.  Without limiting the foregoing exculpation, in no event shall WA have any liability for any special, positive, indirect or consequential damages.  The Companies further agree that it will not, without the prior consent of an Indemnified Party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which such Indemnified Party seeks indemnification hereunder (whether or not such Indemnified Party is an actual party to such claim, action, suit or proceedings) unless such settlement, compromise or consent includes an unconditional release of such Indemnified Party from all liabilities arising out of such claim, action, suit or proceeding.   The Companies shall promptly pay expenses reasonably incurred by any Indemnified Party in defending, participating in, or settling any action, proceeding or investigation in which such Indemnified Party is a party or is threatened to be made a party or otherwise is participating in by reason of the engagement under the Agreement, upon submission of invoices therefor, whether in advance of the final disposition of such action, proceeding, or investigation or otherwise.   Neither termination of the Agreement nor termination of WA’s engagement nor the filing of a petition under Chapter 7 or 11 of the United States Bankruptcy Code (nor the conversion of an existing case to one under a different chapter) shall affect these indemnification provisions, which shall hereafter remain operative and in full force and effect.  In addition to the above indemnification, WA personnel serving as employees of the Company will be entitled to the benefit of the most favorable indemnities provided by the Companies to its officers and directors, whether under the Companies’ by-laws, certificates of indemnification, by contract or otherwise.  The Companies agree that it will cover Weinsweig in its Directors and Officers insurance.

 

  

  

  

 

		  

14114 CHINKAPIN DRIVE  u ROCKVILLE, MD 20850

              WWW.WEINSWEIGADVISORS.COM

 

	
6.  

	
Miscellaneous

This engagement letter and indemnity provisions:  (a) shall be governed and construed in accordance with the laws of the State of Maryland, regardless of the laws that might otherwise govern under applicable principles of conflict of laws thereof; (b) incorporates the entire understanding of the parties with respect to the subject matter hereof; and (c) may not be amended or modified except in writing executed by both parties hereto.  Each of the parties hereto agrees (a) to waive trial by jury in any action, proceeding or counterclaim brought by or on behalf of the parties hereto with respect to any matter relating to or arising out of the engagement or the performance or non-performance of WA hereunder; (b) that, to the extent permitted by applicable law, any Federal Court sitting within Maryland shall have exclusive jurisdiction over any litigation arising out of this Agreement; (c) to submit to the personal jurisdiction of the Courts of the United States District Court in Maryland; and (d) waives any and all personal rights under the law of any jurisdiction to object on any basis (including, without limitation, inconvenience of forum) to jurisdiction or venue within the State of Maryland for any litigation arising in connection with this engagement letter.  The rights and obligations herein may not be assigned by any party without the other parties’ prior written consent.

Please sign the enclosed copy of this engagement letter and the attached indemnification agreement to acknowledge your agreement with their terms.

 

Very truly yours,

 

	WeinsweigAdvisors LLC	 	 	 
	 	 	 	 
	
/s/

	 	 	 
	
Todd Hays

	 	 	 
	
President & CEO

	 	 	 
	Game Trading Technologies, Inc.

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