Document:

Exhibit 10.1 - Best Buy

	
		
	Exhibit 10.1
as filed with
10-Q
	Confidential treatment has been requested for portions of this exhibit.  The copy filed herewith omits the information subject to the confidentiality request.  Omissions are designated as [*].  A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

FIRST AMENDMENT TO THE
MASTER MARKETING AND DEVELOPMENT AGREEMENT
This First Amendment to the Master Marketing and Development Agreement (the “Amendment”) is entered into and made effective as of 1st day of June, 2011 (the “Effective Date”), by and between TiVo Inc., a Delaware corporation having its principal place of business at 2160 Gold Street, Alviso, California, USA 95002 (“TiVo”), and Best Buy Stores, L.P., a Virginia limited partnership having its principal place of business at 7601 Penn Avenue South, Richfield, MN, USA 55423 (“BBY”).
Recitals
WHEREAS, the parties entered into the Master Marketing and Development Agreement (the “Original Agreement”) having an effective date of July 7, 2009 (the “Original Effective Date”),  pursuant to which the parties desired to develop jointly their respective video service offerings by advancing distribution of TiVo-enabled devices into consumer homes and by enabling access to and jointly marketing content and other services through such devices, in which the parties shall each economically participate as well as to undertake the commercialization of the product integration efforts and marketing initiatives described in the Original Agreement; and
WHEREAS, the parties now desire to amend and revise the Original Agreement as further set forth herein; 
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, BBY and TiVo agree as follows:
Agreement
1.The following sections of the Original Agreement are hereby deleted and of no further force and effect: Sections 3.1, 3.3, 4.5, 4.8, 4.9, 4.10, 4.11, 4.14, 4.15, 5.1, 5.2, 6.2, 6.3, and 10.3.
2.Section 6.1(a) of the Original Agreement is amended by adding the following two sentences at the end of Section 6.1(a) as follows:
"[*]”
3.In connection with the resolution of the revenue share overpayment by TiVo to Best Buy (the “Settlement”) as more fully described in the Settlement and Release (“Release”) attached hereto as Exhibit A, the parties agree to the terms and conditions of the Release and to execute such Release as of the same date hereof.
4.Section 7.1 of the Original Agreement is amended by adding the following sentence at the end of Section 7.1 as follows:
“[*]”
5.Effect of Amendment; Counterparts.  Except as expressly modified herein, all other terms and condition of the Original Agreement shall remain in full force and effect.  This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same original.
[Signature Page Follows.]

[*]Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

IN WITNESS WHEREOF, each Party has caused this Agreement to be executed on its behalf as of the date first above written.
	
		
	TiVo Inc.
	 

	By:
	/s/ Joe Miller

	Name:
	Joe Miller

	Title:
	SVP Marketing and Sales

	Date:
	8/29/2011

	 
	 

	Best Buy Stores, L.P

	By:
	/s/ Corie Barry

	Name:
	Corie Barry

	Title:
	VP Finance

SETTLEMENT AGREEMENT                  Exhibit A
AND MUTUAL GENERAL RELEASE  (“GENERAL RELEASE”)

THIS GENERAL RELEASE is effective as of June 1, 2011, between Best Buy Stores, L.P. (“Best Buy”) and TiVo Inc., (“TiVo”) for itself and on behalf of its affiliates that control, are controlled by, or are under common control with TiVo, each on behalf of itself and its respective predecessors, successors, subsidiaries, affiliates and assigns, (collectively referred to as the “Parties”).
WHEREAS, TiVo and Best Buy are parties to a Master Marketing & Deployment Agreement dated July 7, 2009, (the “Best Buy Agreement”).
WHEREAS, the Parties had disputes about the amount of commissions paid (or not paid, as the case may be) between TiVo and Best Buy pursuant to the Best Buy Agreement in connection with the sales and activation of  TiVo Units [*] (together, the “Revenue Share Claim”). The final amount of the Revenue Share Claim agreed upon by TiVo and Best Buy includes all of the amounts (credits and debits) set forth on Schedule A, [*].  
WHEREAS, the Parties now seek to completely resolve and release all disputes and claims related to the Revenue Share Claim and intend to fully resolve and release all claims between TiVo and Best Buy related to the payment of commissions, [*] (“Commission Payments”).  
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, Best Buy and TiVo agree as follows:
      1. Consideration.     
          a.       Payment By Best Buy to TiVo.  Collectively, the payment of the amount set forth on Schedule A from Best Buy to TiVo shall represent the “Settlement Amount”, for all matters related to the Revenue Share Claim which results in a net payment to TiVo of [*].  Best Buy will make this payment within 15 days of the date the last party signs this General Release.
         2. General Release of Claims.  
a.      Mutual General Release for Revenue Share Claim for activity on or before January 31, 2010.  In consideration of the Settlement Amount and the other promises in this General Release, each party and its Covered Parties hereby forever release, waive and discharge the other party and its Covered Parties from any and all claims, obligations, promises, causes of action or demands, known or unknown, of any nature whatsoever, arising from, related to or in connection with the Revenue Share Claim or any other claim for Commission Payments from March 3, 2002 (the effective date of the first Vendor Agreement between TiVo and Best Buy) through January 31, 2010, including but not limited to any and all disputes about the amount of commissions paid (or not paid, as the case may be) between TiVo and Best Buy pursuant to the Best Buy Agreement in connection with the sales and activation of  TiVo Units [*].  
b. Covered Parties.  This General Release is binding upon and will inure to the benefit of the Parties, and to their respective officers, directors, shareholders, trustees, agents, employees, representatives, parent corporations, subsidiaries, corporate affiliates, assigns, purchasers and successors-in-interest (collectively, the “Covered Parties”).
3.  Waiver Regarding Unknown Claims.  Each of Best Buy and TiVo acknowledges and agrees that, except with respect to acts and omissions occurring after the Effective Date, the release of the Revenue Share Claim and claim for Commission Payments as provided herein includes all related claims between the parties, whether known or unknown, suspected or unsuspected, fixed or contingent (the “Released Claims”) and further acknowledge and agree that TiVo and/or Best Buy may hereafter discover facts different from and in addition to those which such party now knows, or believes to be true with respect to the Released Claims.  Nevertheless, each of Best Buy and TiVo acknowledges and agrees that, except with respect to acts and omissions occurring after the Effective Date, the releases and waivers provided for herein shall be, and remain, effective in all respects, notwithstanding such different or additional facts, or the discovery thereof.  Each of Best Buy and TiVo agrees that, except with respect to acts and omissions occurring after the Effective Date, the terms of this General Release will be binding in all respects notwithstanding any mistake of existing facts, subsequent knowledge of additional or different facts or subsequent change of facts relating to the Released Claims and that this General Release will not be subject to termination or rescission for any reason whatsoever.  The following waiver shall waive the application of Section 1542 of the California Civil Code and other statutes or legal principles of similar effect to the extent that such statutes or legal principles preclude or limit the release of claims based on facts a party does not know or 

[*]Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

suspect to exist at the time of executing the release and shall not be construed as making the releases provided for herein general releases.
EACH OF BEST BUY AND TIVO SPECIFICALLY AND EXPRESSLY WAIVES THE RIGHTS AND BENEFITS OF THE PROVISIONS OF SECTION 1542 OF THE CALIFORNIA CIVIL CODE (AND ANY CORRESPONDING OR SIMILAR LAW OF ANY OTHER JURISDICTION) SOLELY TO THE EXTENT PROVIDED FOR HEREIN, WHICH PROVIDES AS FOLLOWS:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”
4.  Covenant Not To Sue.  Each party and its Covered Parties hereby expressly covenants and agrees forever to refrain from bringing any suit or proceeding at law or in equity against and the other party and its Covered Parties arising out of or in any way related to any matter, cause or claim whatsoever that occurred related to the Revenue Share Claim, including but not limited to claims for attorneys' fees.  
5.  Miscellaneous.    
a.      Capitalized terms not otherwise defined herein have the meanings ascribed to them in the Best Buy Agreement.
b.      This General Release is governed by, and interpreted under the laws of the State of Delaware.
c.      This General Release does not constitute an admission of liability or wrongdoing on the part of any party hereto.
d.      The terms and conditions of the settlement achieved between the Parties, including without limitation this General Release, constitute Confidential Information under the terms of the Best Buy Agreement.  
e.       This General Release constitutes the entire agreement between the parties with respect to the subject matter hereof, all oral agreements being merged herein, and supersedes all prior representations and agreements.  There are no representations, agreements, arrangements, or understandings, oral or written, between or among the parties relating to the subject matter of this General Release that are not fully expressed herein. 
f.      This General Release has been carefully read by both parties and the contents hereof are known and understood.  Each party has the opportunity to receive independent legal advice from attorneys of its choice with respect to the review and advisability of executing this General Release.  
g.      This General Release may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which shall be one and the same document, and legible facsimile or scanned copies shall be operative as originals.
[Signature Page(s) to Follow]

[*]Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

IN WITNESS WHEREOF, this General Release has been duly executed by the Parties hereto as of and on the date first above written.
TiVo Inc. for itself and on behalf of its affiliates that control, are controlled by, or are under common control with TiVo Inc.
	
		
	TiVo Inc. for itself and on behalf of its affiliates that control, are controlled by, or are under common control with TiVo Inc.

	By:
	/s/ Joe Miller

	Name:
	Joe Miller

	Title:
	SVP Marketing and Sales

	Date:
	8/29/2011

	
		
	Best Buy Stores, L.P. for itself and on behalf of its affiliates that control, or are controlled by, or are under common control with Best Buy Stores, L.P.

	By:
	/s/ Corie Barry

	Name:
	Corie Barry

	Title:
	VP Finance

	Date:
	8/22/2011Exhibit 10.1

 

 

December 2, 2011

 

Mr. David G. Durham

5831 S. Birch Court

Greenwood Village, CO 80121

 

Dear Dave:

 

You are hereby notified that your employment with StarTek, Inc. (the “Company”) is hereby terminated effective as of 5:00 p.m. on November 15, 2011 (the “Separation Date”).  This letter also sets forth the substance of the terms of separation (the “Agreement”) which Company is offering to you to aid in your employment transition.  All terms not defined herein have the same meaning as given in your employment agreement dated August 22, 2007.

 

1.     SEPARATION.  Your last day of work and employment with the Company shall be the Separation Date.  By executing this Agreement, you hereby resign any and all positions held with the Company or any of its affiliates.  Any failure to execute this Agreement or any revocation of this Agreement by you shall not reinstate your employment with the Company which shall be terminated as of the date and time set forth above.

 

2.     ACCRUED SALARY.  On the first regular payroll date following the execution of this Agreement, the Company will pay you all accrued salary earned and not paid through the Separation Date, if any, subject to standard payroll deductions and withholdings.  No paid time off is accrued and unused or payable.

 

3.     SEVERANCE PAYMENTS.  If you timely sign, date and return this Agreement and comply with the terms contained herein, the Company will pay you as severance: (i) the equivalent of twelve (12) months of your base salary in effect as of the Separation Date, in the form of salary continuation for such twelve (12) month period payable on the Company’s regular payroll cycle beginning on the first regularly-scheduled payroll date following the Effective Date of this Agreement as set forth in Section 14, subject to standard payroll deductions and withholdings (the “Salary Continuation”) and (ii) a lump sum amount of $210,000 equal to your Annual Bonus Potential, subject to deductions and withholdings (the “Bonus Payment) payable on July 1, 2012 ((i) and (ii) collectively, the “Severance Benefits”).

 

4.     HEALTH INSURANCE.  Provided that you timely elect continuation of health coverage pursuant to COBRA, for a period of twelve (12) months following the Separation Date, the Company will reimburse you a portion of the cost of your COBRA insurance premiums that is equal to, and does not exceed, the Company’s monthly contribution towards your health benefit premiums as of the

 

 

 

Separation Date; provided, however, that the Company’s obligation to pay your COBRA premiums will cease immediately in the event you become eligible for group health insurance during the twelve (12) month period following the Separation Date, and you hereby agree to promptly notify the Company if you become eligible to be covered by group health insurance in such event.  On or after the Separation Date, you will be provided with a separate notice more specifically describing your rights and obligations to continuing health insurance coverage under applicable laws.

 

5.     STOCK OPTIONS.  Pursuant to your stock option grants and the plan governing those grants (the “Plan”), vesting of your stock options will ceased on your Separation Date.

 

6.     OTHER COMPENSATION OR BENEFITS.  You acknowledge that, except as expressly provided in this Agreement, you have not earned and will not receive any additional pay or salary, incentive compensation, severance, equity interests or options, or benefits after the Separation Date, with the exception of any vested right you may have under the express terms of a written ERISA-qualified benefit plan (e.g., 401(k) account).  In particular, but without limitation, you agree that you are not owed any bonus, incentive compensation, or commissions, other than as provided in this Agreement.

 

7.     EXPENSE REIMBURSEMENTS.  You agree that have submitted and been reimbursed for all business expenses you incurred through the Separation Date.

 

8.     RETURN OF COMPANY PROPERTY.  By the close of business on a date not more than five (5) business days from the effective date of this Agreement, you agree to return to the Company, if you have not already done so,  all Company documents (and all copies thereof, in whole or in part) and other Company property which you have in your possession or control, including, but not limited to, Company files, notes, drawings, records, plans, forecasts, reports, studies, analyses, proposals, agreements, engineering information, test data and materials, financial information, research and development information, sales and marketing information, customer information and databases, contact information, operational and personnel information, specifications, code, software, databases, computer-recorded information, tangible property and equipment (including, but not limited to, computers, facsimile machines, mobile telephones, pda’s, VPN access keys, servers and excluding your laptop and iphone), credit cards, entry cards, identification badges and keys; and any materials of any kind which contain or embody any proprietary or confidential information of the Company (and all reproductions thereof in whole or in part).  You agree that you will make a diligent search to locate any such documents, property and information within the timeframe referenced above.  If you have used any personally owned computer, server, or e-mail system to receive, store, review, prepare or transmit any Company confidential or proprietary data, materials or information, you agree to provide the Company with a computer-useable copy of such information and then permanently delete and expunge such Company confidential or proprietary information from those systems within five (5) business days from the effective date of this Agreement; and you agree to provide the Company access to your system as requested to verify that the necessary copying and/or deletion is done.  You agree that, after the fifth business following the effective date of this Agreement, you will neither use nor possess Company property.  Your timely compliance with this paragraph is a condition precedent to your receipt of the

 

 

severance benefits described in paragraph 3 above.

 

9.     ACKNOWLEDGEMENT OF CONTINUING OBLIGATIONS.  You acknowledge and reaffirm your continuing obligations under your Manager, Executive Personnel or Assistants’ Proprietary Information, Inventions, Non-Competition, and Non-Solicitation Agreement (Exhibit A to your Employment Agreement).  By signing this Letter, (i) you acknowledge those obligations, including by way of example but not limitation, obligations to keep information confidential, not to compete with the Company, and not to solicit employees and clients of the Company, and (ii) you further acknowledge and agree that the consideration paid by the Company to you under your Employment Agreement and under this Agreement is sufficient and valid consideration to support your obligations under such documents.  A copy of your full Employment Agreement is attached hereto as Exhibit A.

 

10.  CONFIDENTIALITY.  The provisions of this Agreement shall be held in strictest confidence by you and the Company and shall not be publicized or disclosed in any manner whatsoever; provided, however, that:  (a) you may disclose this Agreement to your immediate family; (b) the parties may disclose this Agreement in confidence to their respective attorneys, accountants, auditors, tax preparers, and financial advisors; (c) the Company may disclose this Agreement as necessary to fulfill standard or legally required corporate reporting or disclosure requirements; and (d) the parties may disclose this Agreement insofar as such disclosure may be necessary to enforce its terms or as otherwise required by law.  In particular, and without limitation, you agree not to disclose the existence or terms of this Agreement to any current or former Company employees, consultants, or independent contractors.

 

11.  NON-DISPARAGEMENT.  Both you and the Company agree not to disparage the other party, and the other party’s officers, directors, employees, shareholders and agents, in any manner likely to be harmful to them or their business, business reputation or personal reputation; provided that both you and the Company shall respond accurately and fully to any question, inquiry or request for information when required by legal process.

 

12.  NO ADMISSIONS.  You understand and agree that the promises and payments in consideration of this Agreement shall not be construed to be an admission of any liability or obligation by the Company to you or to any other person, and that the Company makes no such admission.

 

13.  RELEASE OF CLAIMS.  In exchange for the payments and other consideration under this Agreement to which you would not otherwise be entitled, you hereby release, acquit and forever discharge the Company, and its officers, directors, agents, servants, employees, attorneys, shareholders, successors, assigns and affiliates, in their individual, corporate and official capacities, of and from any and all claims, liabilities, demands, causes of action, costs, expenses, attorneys’ fees, damages, indemnities and obligations of every kind and nature, in law, equity, or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed, arising out of or in any way related to agreements, events, acts or conduct at any time prior to and including the date you sign this Agreement, including but not limited to: (a) any and all such claims and demands directly or indirectly arising out of

 

 

or in any way connected with your employment with the Company or the conclusion of that employment; (b) any claims whatsoever against the Company or those released above by this Release of Claims arising before you sign this Agreement; (c) all claims or demands related to salary, bonuses, commissions, incentive payments, stock, stock options, or any ownership or equity interests in the Company, including vacation pay, personal time off, fringe benefits, severance benefits, or any other form of compensation; (d) all claims pursuant to any federal, any state or any local law, statute, common law or cause of action, employment or otherwise, including, but not limited to, the federal Civil Rights Act of 1964, as amended, attorney’s fees under Title VII of the federal Civil Rights Act of 1964, as amended, or any other statute, agreement or source of law, the federal Americans with Disabilities Act of 1990, the Family and Medical Leave Act, the Employee Retirement Income Security Act, the Age Discrimination in Employment Act, as amended, the Worker Adjustment and Retraining Notification Act, the Colorado anti-discrimination statute, any other state  or local employment, discrimination, or labor code, and the Equal Pay Act, of 1963, as amended; (e) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; and (f) all tort claims, including, but not limited to, claims for assault, battery, invasion of privacy, fraud, defamation, emotional distress, and discharge in violation of public policy.  You represent that you have no lawsuits, claims or actions pending in your name or on behalf of any other person or entity, against the Company or any other person or entity subject to the release granted in this paragraph.  You further agree that in the event you bring a claim or charge covered by this release, this Agreement shall serve as a complete defense to such claims or charges. Excluded from this release are any claims that cannot be waived by law.  Furthermore, you agree to release and discharge the Company not only from any and all claims which 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 in which a claim or claims against the Company may arise, in whole or in part, from any event which occurred prior to the date of this Agreement.  If you are not permitted to opt-out of a future class, then you agree to waive any recovery for which you would be eligible as a member of such class.

 

14.  ADEA WAIVER AND RELEASE. You acknowledge that you are knowingly and voluntarily waiving and releasing any rights you may have under the ADEA.  You also acknowledge that the consideration given for the waiver and release in the preceding paragraph hereof is in addition to anything of value to which you were already entitled. You further acknowledge that you have been advised by this writing, as required by the ADEA, that:  (a) your waiver and release do not apply to any rights or claims that may arise after the execution date of this Agreement; (b) you have been advised hereby that you have the right to consult with an attorney prior to executing this Agreement; (c) you have twenty-one (21) days to consider this Agreement (although you may choose to voluntarily execute this Agreement earlier); (d) you have seven (7) days following the execution of this Agreement by the parties to revoke the Agreement; and (e) this Agreement will not be effective until the date upon which the revocation period has expired, which will be the eighth day after this Agreement is executed by you, provided that the Company has also executed this Agreement by that date (“Effective Date”).  If you chose to revoke the Agreement, you must send written notice of the revocation by certified mail, return receipt requested, to Dave M. Gomez, Senior Vice President and General Counsel, 44 Cook Street, 4th Floor, Denver CO,

 

 

80206.

 

15.  REMEDY.  You agree that, if you bring any kind of legal claim against the Company that you have given up by signing this Agreement, then you will be violating this Agreement and you must pay all legal fees, other costs and expenses incurred by the Company in defending against your claim.

 

16.  MISCELLANEOUS.  This Agreement, including Exhibit A, constitutes the complete, final and exclusive embodiment of the entire agreement between you and the Company with regard to this subject matter.  It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises, warranties or representations.  This Agreement may not be modified or amended except in a writing signed by both you and a duly authorized officer of the Company.  This Agreement shall bind the heirs, personal representatives, successors and assigns of both you and the Company, and inure to the benefit of both you and the Company, their heirs, successors and assigns.  If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other provision of this Agreement and the provision in question shall be modified by the court so as to be rendered enforceable.  This Agreement shall be deemed to have been entered into and shall be construed and enforced in accordance with the laws of the State of Colorado as applied to contracts made and to be performed entirely within Colorado.

 

If this Agreement is acceptable to you, please sign below and return the original to me.  I wish you every success in your future endeavors.

 

	
 
    	
 
    	
 
    	
Sincerely,
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
STARTEK, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Chad A. Carlson
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Chad   A. Carlson
    
	
 
    	
 
    	
 
    	
President   and CEO
    

 

 

I HAVE READ, UNDERSTAND AND AGREE FULLY TO WHAT IS SET FORTH IN THE FOREGOING AGREEMENT, AND I ACKNOWLEDGE MY CONTINUING OBLIGATIONS UNDER THE PROPRIETARY INFORMATION, INVENTIONS, NON-COMPETITION, AND NON-SOLICITATION AGREEMENT:

 

	
 
    	
AGREED:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   David G. Durham
    
	
 
    	
David G. Durham
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
12/2/2011
    
	
 
    	
Date
    

 

 

	
Cc:
    	
Ed   Zschau, Chairman of the Board
    
	
 
    	
John   Harris, Chairman of the Compensation Committee
    
	
 
    	
Dave   M. Gomez, General Counsel

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