Document:

ex10-1.htm

Exhibit 10.1

 

 

SETTLEMENT AGREEMENT

 

This Settlement Agreement (this “Agreement”) is made and entered into this 3rd day of May, 2010 (the “Execution Date”) by and between Ceridian Corporation (“Ceridian”), a Minnesota corporation, having an office at 3311 East Old Shakopee Road, Minneapolis, Minnesota 55425, and Asure Software, Inc., formerly known as Forgent Networks, Inc. d/b/a Asure Software (“Asure”), a Delaware corporation having an office at 108 Wild Basin Road, Austin, Texas 78746 (each of Ceridian and Asure, a “Party,” and together, the “Parties”).

 

WHEREAS, Ceridian and iSarla, Inc. entered into a Distribution Agreement in December 2005 (the “Distribution Agreement”); and

 

WHEREAS, Asure is the successor-in-interest to iSarla, Inc. for purposes of performance under the Distribution Agreement; and

 

WHEREAS, Ceridian and Asure entered into a First Extension Agreement dated December 31, 2007, extending the term of the Distribution Agreement, as modified, until January 31, 2008.  Ceridian and Asure entered into a Second Extension Agreement dated January 31, 2008, extending the term of the Distribution Agreement, as modified, until February 29, 2008.  Ceridian and Asure entered into a Third Extension Agreement dated February 29, 2008, extending the term of the Distribution Agreement, as modified, until March 31, 2008.  Ceridian and Asure entered into a Fourth Extension Agreement dated March 31, 2008, extending the term of the Distribution Agreement, as modified, until June 30, 2008.  Ceridian and Asure entered into a Fifth Extension Agreement dated June 30, 2008,  extending the term of the Distribution Agreement, as modified, until July 31, 2008.  Ceridian and Asure entered into a Sixth Extension Agreement dated July 31, 2008, extending the term of the Distribution Agreement, as modified, until August 31, 2008.  Ceridian and Asure entered into a Seventh Extension Agreement dated August 31, 2008, extending the term of the Distribution Agreement, as modified, until September 30, 2008;  and

 

WHEREAS, under the Distribution Agreement, Asure provided a set of service modules to Ceridian customers as a part of the full array of services provided by Ceridian;

 

WHEREAS, the Parties continued to conduct business contemplated by the Distribution Agreement after September 30, 2008; and

 

WHEREAS, a dispute has arisen between Ceridian and Asure regarding the Distribution Agreement and/or the conducting of business contemplated by the Distribution Agreement after September 30, 2008; and

 

WHEREAS, Ceridian filed a civil action styled Ceridian Corporation v. Asure Software, Inc., formerly known as Forgent Networks, Inc. d/b/a Asure Software in the 261st Judicial District Court, Travis County, Texas, Cause No. D-1-GN-10-001029 (the “Lawsuit”); and

 

 

	
SETTLEMENT AGREEMENT

	
Confidential

	
Page 1

  

  

  

 

WHEREAS, Ceridian and Asure find it mutually advantageous (i) to enter into this Agreement that will allow Ceridian and Asure to separate their business relationship and state  the Parties’ rights and obligations going forward, and (ii) to resolve the Lawsuit and release all claims between the Parties up to the date of this Agreement.

 

NOW, THEREFORE, in consideration of the premises and the mutual agreements set forth below and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

 

SECTION I

 

 

 

Section 1.01                      Payment by Ceridian.  Ceridian will pay Asure $119,704.98 for services performed in March 2010.

 

For the transition period consisting of the months of April through July (“Transition Period”), Ceridian shall pay Asure for services set forth in section 1.02 and 1.04 in the following amounts at the following times:

 

Within 2 business days of its receipt of a fully executed Agreement, Ceridian shall payAsure $241,184.

 

On or before May 15, 2010, Ceridian shall pay Asure $200,000.

 

On or before June 15, 2010, Ceridian shall pay Asure $200,000.

 

On or before July 31, 2010, Ceridian shall pay Asure $200,000.

 

The $600,000 representing the final three payments shall be deposited into an escrow account for the benefit of Asure. Such escrow account shall be established at a mutually agreed escrow agent.

 

Section 1.02                      Duties and Obligations of Asure.

 

(a)           Service Delivery.  For and in return for the payments described in Section 1.01 and other good and adequate consideration, Asure shall perform the services and support required of it by the Distribution Agreement through July 31, 2010, except as specifically provided in Section 1.04 below.  Although Ceridian has ceased offering Asure modules to prospective clients, any client who has contracted with Ceridian or any new client for which no alternative product can be supplied will be serviced according to the terms of this Agreement and the Distribution Agreement.  After July 31, 2010, Asure has no obligation to provide any service or support under this Agreement or the Distribution Agreement.

 

(b)           Transition Services.  For an in return for the payments described in Section 1.01 and other good and adequate consideration, Asure will provide Ceridian with such reasonable assistance as is necessary for the transition of those customers choosing to do business with Ceridian.

 

 

	
SETTLEMENT AGREEMENT

	
Confidential

	
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Section 1.03                      Ceridian’s Transition Services.  For an in return for Asure’s duties and obligations and other good and adequate consideration, Ceridian will provide Asure with such reasonable assistance as is necessary for the transition of those customers choosing to do business with Asure.   

 

Section 1.04                      Communication With Clients. On or before May 3, 2010, the Parties shall issue a joint communication to those Ceridian clients using Asure modules stating that the relationship between Ceridian and Asure is terminating as of July 31, 2010, but that each will independently offer human resource and related services to clients. Neither Ceridian nor Asure shall have any communication with the clients prior to May 3, 2010, other than those communications necessary to provide the existing services to those clients.  On May 3, 2010, and thereafter, both Ceridian and Asure may solicit any client and attempt to procure human resource and related business of any client.

 

Section 1.05                      Release by Asure.  In consideration for the consideration noted above and the mutual promises, representations and warranties contained herein, Asure and its agents, stockholders, employees, officers, directors, affiliates, predecessors, successors, heirs, assigns, beneficiaries, and all persons, natural or corporate in privity with it, hereby releases, acquits, forever discharges and holds harmless, Ceridian and its assigns, employees, parent companies, subsidiaries, predecessors and successors, affiliates, employees of affiliates, agents, attorneys, officers, directors, shareholders, and all persons, natural or corporate in privity with them, any and all manner of action, damages, debts, expenses, fees, causes of action, suits, sums of money, contracts, attorney’s fees, costs, agreements, claims, counterclaims, controversies, judgments, settlements, demands and liabilities whatsoever and of whatsoever kind or nature, before or because of any manner of thing done, omitted or suffered to be done, existing at any time prior to and including the date of this Agreement, in law, in equity or otherwise, fixed or contingent, liquidated or unliquidated, known or unknown, suspected or unsuspected, arising from or related to the subject matter of the Lawsuit, whether such claim arises pursuant to a statute, the common law, contract, implied contract or public policy.  Nothing in this section shall release the obligations stated in this Agreement.

 

Section 1.06                      Release by Ceridian.  In consideration for the consideration noted above and the mutual promises, representations and warranties contained herein, Ceridian and its agents, stockholders, employees, officers, directors, affiliates, predecessors, successors, heirs, assigns, beneficiaries, and all persons, natural or corporate in privity with it, hereby releases, acquits, forever discharges and holds harmless, Asure and its assigns, employees, parent companies, subsidiaries, predecessors and successors, affiliates, employees of affiliates, agents, attorneys, officers, directors, shareholders, and all persons, natural or corporate in privity with them, any and all manner of action, damages, debts, expenses, fees, causes of action, suits, sums of money, contracts, attorney’s fees, costs, agreements, claims, counterclaims, controversies, judgments, settlements, demands and liabilities whatsoever and of whatsoever kind or nature, before or because of any manner of thing done, omitted or suffered to be done, existing at any time prior to and including the date of this Agreement, in law, in equity or otherwise, fixed or contingent, liquidated or unliquidated, known or unknown, suspected or unsuspected, arising from or related to the subject matter of the Lawsuit, whether such claim arises pursuant to a statute, the common law, contract, implied contract or public policy.  Nothing in this section shall release the obligations stated in this Agreement.

 

 

	
SETTLEMENT AGREEMENT

	
Confidential

	
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Section 1.07                      Dismissal of the Lawsuit.  Within 10 days of its receipt of a fully-executed Agreement, Ceridian shall file a Notice of Nonsuit With Prejudice dismissing the Lawsuit with prejudice.

 

SECTION II

MISCELLANEOUS

 

Section 2.01                      Agreement Terms Confidential. Unless otherwise required in connection with any legal process or proceeding or as may otherwise be specified herein, each Party shall treat the terms of this Agreement as confidential.   Nothing herein shall prohibit any Party from providing this Agreement or the terms hereof to its accountants, attorneys and advisors for the purpose of tax reporting obtaining advice or other appropriate legal reporting requirements.

 

Section 2.02                      Successors and Assigns. Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successor, permitted assigns and Affiliates of the Parties hereto.

 

Section 2.03                      Assignment. No Party shall, without all other Party’s prior written consent, assign or transfer this Agreement or any obligations incurred hereunder to another except by merger, reorganization, consolidation or sale of all or substantially all of that portion of such Party’s business which is the subject matter of this Agreement; provided, however, that the assignor delivers to the other Party prompt written notice of such event and assignee remains responsible to the other Party  for the full performance of all obligations under this Agreement. Any attempt to assign or transfer this Agreement in contravention of this Section shall be void and of no force and effect.

 

Section 2.04                      Entire Agreement. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof. No change, waiver or discharge hereof shall be valid unless it is in writing and is executed by the Party against whom such change, waiver or discharge is sought to be enforced. Each Party represents and  warrants that they fully understand the provisions of this  Agreement and  the consequences of entering in to  it, and have had an appropriate amount of time and  opportunity to fully investigate, with legal counsel of  their choice, all of the facts and circumstances surrounding the claims released herein. The are no oral agreements, representations or warranties made by any Party to the other Party not contained herein that induced any Party to enter into this Agreement.

 

Section 2.05                      Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas without regard to any conflicts of laws principles thereof that would call for the application of the laws of any other jurisdiction.

 

Section 2.06                      Heading. The article, section and paragraph headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

 

 

 

	
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Section 2.07                      Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall be considered one and the same instrument.

 

Section 2.08             Authority. – Each person entering this  Agreement represents that they have authority to enter in to this Agreement in the capacity in which their signature appears. Each Party represents and  warrants that  they own all of the claims that are released herein, and they have  not transferred, pledged or otherwise encumbered any claim which they are releasing hereunder.

 

Section 2.09              No Admissions. Nothing in this Agreement shall be considered an admission of any claims asserted by any Party in the Lawsuit; all such claims being specifically denied. The Parties have entered in to this Agreement for the purpose of resolving disputed and competing claims without the necessity of continued litigation.

 

IN WITNESS WHEREOF, Ceridian and Asure have caused this Agreement to be signed and delivered, all as of the date first appearing above.

 

CERIDIAN CORPORATION                                                         ASURE SOFTWARE, INC.

 

By: /s/ John F. Hunter                                                                    By: /s/ Paul D. Tesluk

Name: John F. Hunter                                                                     Name: Paul D. Tesluk

Title: Executive Vice President                                                      Title: Asst. Treasurer

 

 

 

 

	
SETTLEMENT AGREEMENT

	
Confidential

	
Page 5ex10-1.htm

Exhibit 10.1

 

 

 

 

 

Management Incentive Plan

 

2010 Plan

 

 

 

 

 

 

  

1

  

Introduction and Objectives

 

The Management Incentive Plan (MIP) is designed to recognize and reward management for their collective and individual contributions to Beneficial Bank’s success.  The plan focuses on performance measures that are critical to the Bank’s growth and profitability.

 

This document summarizes the elements and features of the Plan.

 

The objectives of the MIP are to:

 

	  	
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Reward results, not effort.

	 	 	 
	  	
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Align Executive performance with the Bank’s Strategic Plan, Budget, and Shareholder interests.

	 	 	 
	  	
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Motivate and reward executives for achieving /exceeding performance goals.

	 	 	 
	  	
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Align pay with Bank and individual performance.

	 	 	 
	  	
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Position Beneficial Savings’ total compensation to be competitive with the market.

	 	 	 
	  	
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Enable the Bank to attract and retain talent needed to drive Bank success.

	 	 	 
	  	
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Encourage teamwork across the Bank.

Compensation Philosophy

 

Beneficial Savings Bank’s compensation philosophy is to provide competitive compensation that enables the organization to drive the business’ growth. The MIP provides an opportunity to earn extra compensation beyond base salary when we meet or exceed our performance goals as well as recognize and reward individual contributions toward our success.  Base salaries are designed to be competitive with market practice (i.e. 50th percentile), with incentive awards targeted to provide competitive compensation when performance goals are met.

 

Eligibility

 

Eligibility to participate in the plan will be limited to those senior leaders who are in a position to successfully execute Beneficial’s Strategic plan resulting in increased shareholder value, and superior employee and customer satisfaction. Participants must be employed by September 30. Employees who work a partial year will receive pro-rated awards based on hours worked.

 

Performance Period

 

The performance period and the plan operates on a calendar year basis (January 1 – December 31).

 

  

2

  

 

Incentive Award Opportunity

 

Each participant will have a target incentive opportunity based on competitive market practice for his/her role.  The target incentive will reflect a percentage of base salary and be determined consistent with competitive market practices.  Actual awards will vary based on performance and range from 0% of target (not achieving minimal performance) to 150% of target for exceptional performance.

 

The table below shows competitive incentive ranges, which reflect market practice for banks of similar size as Beneficial.  These incentive targets will be reviewed annually to ensure they remain competitive and appropriate.

 

	
2010 Incentive Targets

	
Role

	
Below Threshold

	
Threshold

(90% of Target)

	
Target

(100%)

	
Stretch

(115% of Target)

	
President & CEO

	
0%

	
20%

	
40%

	
60%

	
Executive Vice President

	
0%

	
13%

	
25%

	
38%

	
Senior Vice President

	
0%

	
13%

	
25%

	
38%

	
Vice President

	
0%

	
10%

	
20%

	
30%

Performance Measures

 

For 2010, there will be two categories of performance measures in the plan:  Bank performance and Individual Performance.  Each participant will have two Bank goals and 2-3 additional individual goals as follows:

 

Bank Goals: For 2010, the Bank goals will focus on EPS and Efficiency Ratio.  These are core measures of profitability and efficiency of resources.

 

Individual performance: Each participant will have 2-3 individual performance goals that reflect required contributions specific to their functional area (e.g. lending growth, deposit growth).

 

The specific goals and weights will be reviewed each year to reflect specific strategic priorities and financial objectives.

 

For 2010, performance will be weighted as follows:

 

	  	
Bank Performance

	
Individual Goals

	
Role

	
EPS

	
Efficiency Ratio

	
1-2 goals vary by

executive

	
President & CEO

	
50%

	
30%

	
20%

	
Executive Vice President & CFO

	
50%

	
30%

	
20%

	
Executive Vice President

	
20%- 30%

	
20%

	
50% -60%

	
Senior Vice President

	
30%

	
20%

	
50%

	
Vice President

	
20%

	
10%

	
70%

 

	
●

	
Bank performance will be based on a quantitative assessment of performance (EPS and efficiency ratio).  Each goal will have a defined range of performance (defined threshold, target, and stretch goals).   At the end of each plan year, Bank performance will be assessed based on the achievement relative to the defined performance goals.  Actual payouts will vary based on performance and can range from 0% (if threshold performance is not achieved) to 150% of target award (if all goals reach stretch level of performance).  Actual awards will be prorated as appropriate to reward continuous improvement.  Actual awards will vary each year based on Bank performance.

 

  

3

  

 

Each participant will have his/her own performance scorecard with the two bank goals (consistent for all participants) and the additional individual performance measures, as appropriate for each participant.

Payouts

Payouts will be made in cash after Beneficial Savings Bank’s financial resurlts and performance are known for the annual performance period.  Awards will be determined based on a combination of Bank performance and individual performance.

  

4

  

Terms and Conditions

 

Participation

 

Participants are selected by the Chairman and CEO and approved by the Compensation Committee of the Board of Directors.  New employees must be employed by September 30 of the plan year (January  1 – December 31) to be eligible for that year’s incentive and will receive a prorated award. 

 

Effective Date

 

This Program is effective January 1, 2010 to reflect plan year January 1, 2010 to December 31, 2010. The Plan will be reviewed annually by the Bank’s Compensation Committee of the Board of Directors to ensure proper alignment with the Bank’s business objectives.  Beneficial Bank retains the rights as described below to amend, modify or discontinue the Plan at any time during the specified period. The Incentive Plan will remain in effect until December 31, 2010.

 

Program Administration

 

The Program is authorized by the Compensation Committee of the Board of Directors, and administered by the Chairman & CEO and Human Resources.

 

Program Changes or Discontinuance

 

Beneficial Bank has developed the Plan based on existing business, market and economic conditions; current services; and staff assignments. If substantial changes occur that affect these conditions, services, assignments, or forecasts, Beneficial Savings Bank may add to, amend, modify or discontinue any of the terms or conditions of the Plan at any time.

 

The Compensation Committee may, at its sole discretion, waive, change or amend the Plan as it deems appropriate.

 

Incentive Award Payments

 

Awards will be paid as a cash bonus before the end of the first quarter following the Plan year.   Awards will be paid out as a percentage of a participant’s effective base salary as of December 31 for a given calendar year. Incentive awards will be considered taxable income to participants in the year paid and will be subject to withholding for required income and other applicable taxes.

 

  

5

  

 

New Hires, Reduced Work Schedules, Promotions, and Transfers

 

Participants who are not employed by Beneficial Bank at the beginning of the Plan year will receive a pro rata incentive award based on their length of employment during a given year.  Employees hired after September 30 will not be eligible to participate until the next plan year.

 

If a participant changes his/her role or is promoted during the Plan year such that the incentive target changes, he/she will be eligible for the new role’s target opportunity on a pro rata basis (i.e. the award will be prorated based on the number of months employed in the respective positions.)

 

In the event of an approved leave of absence, the award opportunity level for the year will be adjusted to reflect the time in active status.  For example, a participant on leave status for 13 weeks during a Plan year will have his or her calculated award reduced by one-fourth (13 weeks/52 weeks) to reflect the period of leave.

 

Termination of Employment

 

If a Plan participant is terminated by the Bank, no incentive award will be paid.  Participants must be an active employee of the Bank on the date the incentive is paid to receive an award. (See exceptions for death, disability and retirement below.)

 

Disability, Death or Retirement

 

If a participant is disabled by an accident or illness, his/her bonus award for the Plan period will be prorated so that the award is based on the period of active employment only (i.e. the award will be reduced by the period of time of disability).

 

In the event of death, Beneficial Savings Bank will pay to the participant’s estate the pro rata portion of the award that had been earned by the participant as of the date of death.

 

Individuals who retire will receive a prorated payout based on the period of active employment only (i.e. pro-rated as of the date of retirement).

 

Ethics and Interpretation

 

If there is any ambiguity as to the meaning of any terms or provisions of this plan or any questions as to the correct interpretation of any information contained therein, the Bank’s interpretation expressed by the CEO and/or Compensation Committee will be final and binding.

 

The altering, inflating, and/or inappropriate manipulation of performance/financial results or any other infraction of recognized ethical business standards, will subject the employee to disciplinary action up to and including termination of employment.  In addition, any incentive compensation as provided by the plan to which the employee would otherwise be entitled will be revoked.

 

Participants who have willfully engaged in any activity, injurious to the Bank, will upon termination of employment, death, or retirement, forfeit any incentive award earned during the award period in which the termination occurred.

 

  

6

  

 

Forfeiture

 

The altering, inflating, and/or inappropriate manipulation of performance/financial results or any other infraction of recognized ethical business standards, will subject the participant to disciplinary action up to and including termination of employment.  In addition, any incentive compensation, as provided by the Management Incentive Plan to which you would otherwise be entitled will be revoked.

 

Miscellaneous

 

The Plan will not be deemed to give any participant the right to be retained in the employ of Beneficial Bank, nor will the Plan interfere with the right of Beneficial Bank to discharge any participant at any time.

 

In the absence of an authorized, written employment contract, the relationship between employees and Beneficial Bank is one of at-will employment. The Plan does not alter the relationship.

 

This incentive plan and the transactions and payments hereunder shall, in all respect, be governed by, and construed and enforced in accordance with the laws of the state of Pennsylvania.

 

Each provision in this Plan is severable, and if any provision is held to be invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining provisions shall not, in any way, be affected or impaired thereby.

 

This plan is proprietary and confidential to Beneficial  Bank and should not be shared outside the organization.

 

 

 

 

7

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