Document:

Exhibit 10.5

EMPLOYMENT AGREEMENT

 

This Employment Agreement (this “Agreement”) is entered into as of March 25, 2011, by and between Indilinx Co., Ltd. (the “Company”), a wholly owned subsidiary of OCZ Technology Group, Inc. (“OCZ”), and Hyun Mo Chung, a citizen of the Republic of Korea (“Employee”).  The effective date of this Agreement (the “Effective Date”) shall be the Closing Date, as defined in that certain Share Purchase Agreement by and among the Company, OCZ, and the other parties thereto (the “Purchase Agreement”).

 

The parties agree as follows:

 

1.    Employment.  Company hereby employs Employee, and Employee hereby accepts such employment, upon the terms and conditions set forth herein.

 

2.  Duties.

 

2.1         Position.  Employee is employed as Chief Technology Officer of the Company and Senior Vice President of R&D of OCZ and shall have the duties and responsibilities assigned by Company’s Board of Directors (the “Board”) both upon initial hire and as may be reasonably assigned from time to time.  Employee shall perform faithfully and diligently all duties assigned to Employee.  Company reserves the right to modify Employee’s position and duties at any time in its sole and absolute discretion within the Company including its affiliates and subsidiaries.

 

2.2        Best Efforts/Full-time.  Employee will expend Employee’s best efforts on behalf of Company, and will abide by all policies and decisions made by Company, as well as all applicable laws, regulations or ordinances.  Employee will act in the best interest of Company at all times.  Employee shall devote Employee’s full business time and efforts to the performance of Employee’s assigned duties for Company, unless Employee notifies the Board in advance of Employee’s intent to engage in other paid work and receives the Board’s express written consent to do so.

 

3.   Term.  The employment relationship pursuant to this Agreement shall be for an initial term commencing on the Effective Date and continuing for a period of two (2) years unless terminated in accordance with Section 7 below.  In addition, the Company reserves the right to modify Employee’s compensation, position, duties or reporting relationship to meet business needs and to decide on appropriate discipline.

 

4.   Compensation.

 

4.1  Base Salary.  As compensation for Employee’s performance of Employee’s duties hereunder, Company shall pay to Employee an initial Base Salary of 165,000,000 Korean Won per year, payable in accordance with the normal payroll practices of Company, less required deductions for applicable government withholding tax, social security and all other employment taxes and payroll deductions.  In the event Employee’s employment under this Agreement is terminated by either party, for any reason, Employee will earn the Base Salary prorated to the date of termination.

 

  

  

  

 

4.2  Incentive Compensation.  Employee will be eligible to earn incentive compensation of up to 17% of Base Salary in accordance with the Company’s Executive Bonus Plan, the terms, amount and payment of which shall be determined by Company in its sole and absolute discretion.

 

4.3  Stock Options.  Subject to the Board’s approval, Employee will be granted a stock option to purchase 150,000 shares of OCZ’s Common Stock under OCZ’s 2004 Stock Incentive Plan (the “Plan”) at an exercise price equal to the fair market value of that stock on the date of the grant (the “Option”) .  The Option will be subject to the terms and conditions of the Plan and the standard stock option agreement provided pursuant to the Plan, which Employee will be required to sign as a condition of receiving the Option. The Option will become fully vested if there is a “Change of Control” (defined below) after which Employee terminates such Employee’s employment because of a material reduction in duties or is terminated within one year of such Change of Control other than for “Cause” (defined below).  For purposes of this Agreement, The term “Change of Control” shall mean (i) the consummation of the sale or disposition by the OCZ of all or substantially all of the OCZ’s assets or (ii) the consummation of a merger or consolidation of the OCZ with any other corporation or entity, other than a merger or consolidation which would result in the voting securities of the OCZ outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) directly or indirectly at least fifty percent (50%) of the total voting power represented by the voting securities of the OCZ or such surviving entity or its parent outstanding immediately after such merger or consolidation.

 

4.4      Performance and Salary Review.  The Board will periodically review Employee’s performance.  Adjustments to salary or other compensation, if any, will be made by the Board in its sole and absolute discretion.

 

5.           Customary Fringe Benefits.  Employee will be eligible for all customary and usual fringe benefits generally available to employees of Company subject to the terms and conditions of Company’s benefit plan documents.  Company reserves the right to change or eliminate the fringe benefits on a prospective basis, at any time, effective upon notice to Employee.

 

6.      Business Expenses.  Employee will be reimbursed for all reasonable, out-of-pocket business expenses incurred in the performance of Employee’s duties on behalf of Company.  To obtain reimbursement, expenses must be submitted promptly with appropriate supporting documentation in accordance with Company’s policies.

 

  

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7.           Termination of Employee’s Employment.

 

7.1      Termination for Cause.  Notwithstanding any term stated in Section 3, Company may terminate Employee’s employment immediately at any time for Cause.  In the event Employee’s employment is terminated for Cause, Employee shall be entitled to receive only the Base Salary then in effect, prorated to the date of termination, as well as any accrued but unused vacation, paid time off (“PTO”) or statutory severance payments.  All other Company obligations to Employee pursuant to this Agreement will become automatically terminated and completely extinguished.  For purposes of this Agreement, Cause shall mean (a) Employee’s theft, dishonesty, willful misconduct, breach of fiduciary duty for personal profit, or falsification of any Company documents or records; (b) Employee’s material failure to abide by the Company’s written policies relating to confidentiality and reasonable workplace conduct; (c) Employee’s unauthorized use, misappropriation, destruction or diversion of any material asset or corporate opportunity of the Company (including, without limitation, Employee’s improper use or disclosure of the Company’s confidential or proprietary information); (d) any intentional act by Employee which has a material detrimental effect on the Company’s reputation or business, (e) any material breach by Employee of this Agreement and any other agreement between the Company and Employee, including without limitation, the Purchase Agreement, the Company’s Employee Nondisclosure and Assignment Agreement, any Restrictive Covenant Agreement and stock option agreement, which breach is not cured within 15 days after Employee receives notice from the Board specifying said breach; or (f) Employee’s conviction (including any plea of guilty or nolo contendere) of any criminal act involving fraud, dishonesty, misappropriation or moral turpitude, or which impairs Employee’s ability to perform such Employee’s duties with the Company.

 

7.2      Voluntary Termination.  Notwithstanding any term stated in Section 3, Employee may voluntarily resign Employee’s position with Company, at any time, on thirty (30) days’ advance written notice.  Except as otherwise provided in Section 4.3, in the event Employee terminates such Employee’s employment for any reason, Employee shall be entitled to receive only the Base Salary then in effect for the thirty-day notice period, prorated to the date of termination, as well as any accrued but unused vacation, PTO or statutory severance payments.  Company may elect to waive the thirty-day notice period and accept Employee’s earlier resignation or to relieve Employee of such Employee’s duties at any time after notice of resignation.  All other Company obligations to Employee pursuant to this Agreement will become automatically terminated and completely extinguished.

 

7.3      Termination Without Cause by the Company.  Notwithstanding any term stated in Section 3, Company may terminate Employee’s employment under this Agreement without Cause at any time.  In the event of such termination prior to the second anniversary of this Agreement, in addition to receiving Base Salary then in effect, prorated to the date of termination, along with any accrued but unused vacation, PTO or statutory severance payments, the Company shall also pay Employee the Employee’s Base Salary for the remainder of the initial term of this Agreement payable in accordance with Company’s standard payroll cycle or in a lump sum occurring 60 days following the termination date but only if Employee signs a confidential general release of all claims in favor of the Company which must become effective on or before the 60th day following the termination.  If Employee is terminated on and after the second anniversary of this Agreement, no additional payment shall be owed or made.  In the event Employee was terminated without Cause and covered under the Company’s group health plan at the time of Employee’s termination of employment and such Employee timely elects to continue such Employee’s group health coverage under federal/state law (COBRA), if applicable, the Company will reimburse Employee for such COBRA premiums until the earlier of (i) Employee’s coverage under another employer’s group health plan or (ii) until the last day of the Severance Period (defined below).  All payments referred to in this Section 7.3, shall be paid in equal monthly installments beginning on the first payday following the effective date of the general of claims noted above and thereafter, in accordance with Company’s regular payroll cycle until all such amounts are paid in full (the “Severance Period”).  All payments referred to in this Section 7.3 shall be reduced by applicable withholding.

 

  

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8.

	
No Conflict of Interest.  During the term of Employee’s employment with Company and during the Severance Period, Employee must not engage in any work, paid or unpaid, that creates an actual conflict of interest with Company.  Such work shall include, but is not limited to, directly or indirectly competing with Company in any way, or acting as an officer, director, employee, consultant, stockholder, volunteer, lender, or agent of any business enterprise of the same nature as, or which is in direct competition with, the business in which Company is now engaged or in which Company becomes engaged during the term of Employee’s employment with Company, as may be determined by the Board in its sole discretion.  If the Board believes such a conflict exists during the term of this Agreement, the Board may ask Employee to choose to discontinue the other work or resign employment with Company.  If the Board believes such a conflict exists during any period in which Employee is receiving payments pursuant to this Agreement, the Board may ask Employee to choose to discontinue the other work.  In addition, Employee agrees not to refer any client or potential client of Company to competitors of Company, without obtaining Company’s prior written consent, during the term of Employee’s employment and during the Severance Period.

 

	 	
9.

	
Confidentiality and Proprietary Rights.  Employee agrees to read, sign and abide by Company’s Employee Nondisclosure and Assignment Agreement, which is provided with this Agreement and incorporated herein by reference.

 

	 	
10.

	
Injunctive Relief.  Employee acknowledges that Employee’s breach of the covenants contained in Sections 8 and 9 (collectively, “Covenants”) would cause irreparable injury to Company and agrees that in the event of any such breach, Company shall be entitled to seek temporary, preliminary and permanent injunctive relief in compliance with the relevant procedural laws.

 

	 	
11.

	
Agreement to Arbitrate.  To the fullest extent permitted by law, Employee and Company agree to arbitrate any controversy, claim or dispute between them arising out of or in any way related to this Agreement, the employment relationship between Company and Employee and any disputes upon termination of employment, including but not limited to breach of contract, tort, discrimination, harassment, wrongful termination, demotion, discipline, failure to accommodate, family and medical leave, compensation or benefits claims, constitutional claims; and any claims for violation of any applicable local, state or federal law, statute, regulation or ordinance or common law.  Claims for workers’ compensation, unemployment insurance benefits, breach of Company’s Employee Nondisclosure and Assignment Agreement and Company’s right to obtain injunctive relief pursuant to Section 10 above are excluded.  For the purpose of this agreement to arbitrate, references to the “Company” include all parent, subsidiary or related entities and their employees, supervisors, officers, directors, agents, pension or benefit plans, pension or benefit plan sponsors, fiduciaries, administrators, affiliates and all successors and assigns of any of them, and this agreement shall apply to them to the extent Employee’s claims arise out of or relate to their actions on behalf of Company.

 

  

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11.1       Consideration.  The mutual promise by Company and Employee to arbitrate any and all disputes between them (except for those referenced above) rather than litigate them before the courts or other bodies, provides the consideration for this agreement to arbitrate.

 

11.2       Initiation of Arbitration.  Either party may exercise the right to arbitrate by providing the other party with written notice of any and all claims forming the basis of such right in sufficient detail to inform the other party of the substance of such claims.  In no event shall the request for arbitration be made after the date when institution of legal or equitable proceedings based on such claims would be barred by the applicable statute of limitations.

 

11.3       Arbitration Procedure.  The arbitration will be conducted in Seoul, Korea by a single neutral arbitrator and in accordance with the then current rules for resolution of employment disputes of the Korean Commercial Arbitration Board or Central Labor Committee.  The parties are entitled to representation by an attorney or other representative of their choosing.  The arbitrator shall have the power to enter any award that could be entered by a judge of the trial court of the Republic of Korea, and only such power, and shall follow the law.  The parties agree to abide by and perform any award rendered by the arbitrator.  The arbitrator shall issue the award in writing and therein state the essential findings and conclusions on which the award is based.  Judgment on the award may be entered in any court having jurisdiction thereof.

 

	 	
12.

	
Restrictive Covenant Agreement.  Employee shall have entered into a Restrictive Covenant Agreement in substantially the form of attached hereto as Exhibit A.

 

13.         General Provisions.

 

13.1       Successors and Assigns.  The rights and obligations of Company under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of Company.  Employee shall not be entitled to assign any of Employee’s rights or obligations under this Agreement.

 

13.2       Waiver.  Either party’s failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision, or prevent that party thereafter from enforcing each and every other provision of this Agreement.

 

13.3       Attorneys’ Fees.  Each side will bear its own attorneys’ fees in any dispute unless a statutory section at issue, if any, authorizes the award of attorneys’ fees to the prevailing party.

 

  

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13.4       Severability.  In the event any provision of this Agreement is found to be unenforceable by an arbitrator or court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest extent permitted by law.  If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby.

 

13.5       Interpretation; Construction.  The headings set forth in this Agreement are for convenience only and shall not be used in interpreting this Agreement.  Employee acknowledges that this Agreement has been drafted by legal counsel representing Company only and not Employee, but Employee has participated in the negotiation of its terms.  Furthermore, Employee acknowledges that Employee has had an opportunity to review and revise this Agreement and have it reviewed by legal counsel, if desired, and, therefore, any rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement.

 

13.6       Governing Law.  This Agreement will be governed by and construed in accordance with the laws of the Republic of Korea.  Each party consents to the jurisdiction and venue of the Seoul Central District Court, in any action, suit, or proceeding arising out of or relating to this Agreement.

 

13.7       Notices.  Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows with notice deemed given as indicated:  (a) by personal delivery when delivered personally; (b) by overnight courier upon written verification of receipt; (c) by telecopy, facsimile or other electronic transmission (including e-mail) upon acknowledgment of receipt of electronic transmission; or (d) by certified or registered mail, return receipt requested, upon verification of receipt.  Notice shall be sent to the addresses set forth below, or such other address as either party may specify in writing.

 

13.8       Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Execution and delivery of this Agreement by facsimile or other electronic transmission in PDF format shall constitute due execution and delivery for all purposes.

 

13.9       Survival.  Sections 8 (“No Conflict of Interest”), 9 (“Confidentiality and Proprietary Rights”), 10 (“Injunctive Relief”), 11 (“Arbitration”), 13 (“General Provisions”) and 14 (“Entire Agreement”) of this Agreement shall survive Employee’s employment by Company.

 

  

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14.

	
Entire Agreement.  This Agreement, including the Restrictive Covenant Agreement described in Section 12 of this Agreement, the Company Employee Nondisclosure and Assignment Agreement incorporated herein by reference and OCZ’s 2004 Stock Incentive Plan and related option documents described in Section 4.3 of this Agreement, constitutes the entire agreement between the parties relating to this subject matter and supersedes all prior or simultaneous representations, discussions, negotiations, and agreements, whether written or oral.  This Agreement may be amended or modified only with the written consent of Employee and the Board of Company.  No oral waiver, amendment or modification will be effective under any circumstances whatsoever.

 

(Remainder of Page Intentionally Left Blank; Signature Page Follows)

 

  

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THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW.

 

	  	
EMPLOYEE

	  	  
	
Dated: ________________________

	
By:

	
/s/ Hyun Mo Chung

	  	
Name:   Hyun Mo Chung

	  	
Address:

	  
	  	  	  
	  	  
	  	
INDILINX CO., LTD.

	  	  
	
Dated: ________________________

	
By:

	
/s/ Bumsoo Kim

	  	
Name: Bumsoo Kim

	  	
Its: President and CEO

	  	
Address:

	  
	  	  	  

 

[Signature Page to Employment Agreement]

 

  

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Exhibit A

 

Form of Restrictive Covenant Agreement (Korean Employees)

 

  

1a6660626ex10-1.htm

Exhibit 10.1

 

AGREEMENT AND RELEASE

 

This Agreement and Release is made by and between J. David Flanery (hereinafter “Flanery”) and Papa John’s International, Inc., on behalf of itself and its affiliates and subsidiaries (hereinafter “Papa John’s”).

 

W I T N E S S E T H:

 

WHEREAS, Flanery is leaving Papa John’s employment effective June 9, 2011; and

 

WHEREAS, the parties wish to clarify and memorialize certain agreements made between them with respect to Flanery’s employment and the orderly transition of his duties and responsibilities; and

 

WHEREAS, Flanery acknowledges that he was given this agreement on February 24, 2011, and informed that he has twenty-one (21) days to consider it and he has voluntarily agreed to its terms.

 

NOW, THEREFORE, in consideration of the foregoing premises and the terms stated herein, it is mutually agreed between the parties as follows:

 

	
1.

	
Flanery’s employment with Papa John’s will end on June 9, 2011 (the “Separation Date”).

	 	 
	
2.

	
The parties agree that, effective as of February 28, 2011, Flanery is resigning as an officer of Papa John’s and its subsidiaries and affiliates (including joint ventures), including all committee, officer, board of directors and other similar positions.

	 	 
	
3.

	
In connection with the execution of this Agreement and Release, in consideration of the role that Flanery has and will continue to undertake in the transition of his duties and responsibilities, and as specific consideration for the release and waiver contained in Paragraph 5 below, Papa John’s shall provide Flanery the following benefits to which he would not otherwise be entitled:

 

  

  

  

 

	  	
(a)

	 	
For the period between the execution of this Agreement and the Separation Date (the “Continuation Period”), Papa John’s shall pay Flanery his regular salary at the rate of pay currently in effect, less all applicable withholdings.

	 	 	 	 
	  	
(b)

	 	
During the Continuation Period, Flanery shall receive from Papa John’s the continuation of all health and life benefits, as applicable, and as described in the Papa John’s plan and any amendments or modifications to that plan during the Continuation Period.  Flanery shall continue to pay his portion of the costs for those benefits through payroll deductions, as applicable.

	 	 	 	 
	  	
(c)

	 	
During the Continuation Period and as a condition precedent to receiving the payment referenced in Paragraph (d) below, Flanery agrees to cooperate fully with Papa John’s to successfully transition his duties and responsibilities.

	 	 	 	 
	  	
(d)

	 	
Should Flanery execute this Agreement prior to the Separation Date, Flanery agrees he will execute the attached “Supplemental Release” upon the Separation Date.  Within thirty (30) days after the Separation Date, and provided that Flanery has signed the Supplemental Release and the revocation period in that release has expired without a revocation, Papa John’s shall pay Flanery a lump sum equal to Flanery’s current salary (less all applicable withholdings) for 15 months.

	 	 	 	 
	  	
(e)

	 	
Flanery will be eligible to receive payment of a Q1 MIP award and the equivalent of his estimated pro-rated Q2 MIP award (calculated based on Q2 results through the week ending June 5, 2011), in both cases constituting full payment for the applicable award period and without entitlement to any further payment based on full-year calculations under the MIP, along with awards under the QSIP Plan through P5, if any, pursuant to the terms of the respective bonus plans, or payment of equivalent amount(s) if he is not employed on the date the checks are issued to plan participants.

 

  

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(f)

	 	
Should Flanery elect COBRA continuation coverage of any health or dental benefits provided by Papa John’s, Papa John’s shall pay Flanery’s COBRA premiums for twelve months.

	 	 	 	 
	  	
(g)

	 	
All other benefits cease effective on the Separation Date; provided, however, any amounts held in trust in the Papa John’s 401(k) Plan and Deferred Compensation Plan for the benefit of Flanery shall continue to be held in trust for Flanery within the parameters of the existing plan.  In addition, any stock options or other equity awards held by Flanery that are vested as of the Separation Date shall remain exercisable pursuant to the terms of the equity plan under which such options or equity awards were issued.

	 	 	 	 
	
4.

	
Papa John’s shall pay Flanery for ten (10) days of vacation, to be included in Flanery’s final paycheck.

	 	 
	
5.

	
Flanery, for himself and his heirs, personal representatives, successors and assigns, does hereby release and forever discharge Papa John’s, its successors, assigns, agents, representatives, employees, officers, directors, trustees, and shareholders, insurers, reinsurers and any affiliated corporations or entities of any type or nature, from any and all causes of action, claims, demands, suits, damages, sums of money, attorneys’ fees, and/or judgments (hereinafter “damages”) arising at any time prior to and through the date of the execution of this Agreement and Release and Separation Date which might have been asserted against Papa John’s, its successors, assigns, agents, representatives, employees, officers, directors, trustees, shareholders, insurers, reinsurers and any affiliated subsidiaries, corporations or related entities (the “Released Parties”) by Flanery, or on his behalf, including but not limited to any which may have been asserted against Papa John’s or the other Released Parties by or on behalf of Flanery relating to his employment by Papa John’s or the separation of his employment, including vacation pay, profit sharing plans, stock option plans, retirement plans or any benefit plans of any type or nature, and any claims for discrimination of any type under any federal, state or local law or regulation, including, but not limited to, claims under the Age Discrimination in Employment Act of 1967, as amended, Title VII of the Civil Rights Act of 1964 and the Civil Rights Act of 1991, and the Family and Medical Leave Act, and the Americans with Disabilities Act, except for any claims arising under this Agreement and Release.

 

  

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6.

	
Flanery agrees not to file or otherwise institute any claim, demand or lawsuit seeking damages or other relief and not to otherwise assert any claims, demands or entitlements that are lawfully released herein.  Flanery further hereby irrevocably and unconditionally waives any and all rights to recover any relief or damages concerning the claims, demands or entitlements that are lawfully released herein.  Flanery represents and warrants that he has not previously filed or joined in any such claims, demands or entitlements against Papa John’s or the other Released Parties and that he will indemnify and hold them harmless from all liabilities, claims, demands, costs, expenses and/or attorneys’ fees incurred as a result of any such claims, demands or lawsuits.

	 	 
	
7.

	
Flanery understands and agrees that should any amount of the payment made to him by Papa John’s under this Agreement and Release be deemed taxable, Flanery is solely liable for any taxes of whatever kind due by reason of this payment of money, and should any state or federal tax authority determine that any or all of such payment constitutes income subject to federal or state taxes, including but not limited to income tax, or social security laws, then Flanery agrees to indemnify and hold harmless Papa John’s and the other Released Parties for any and all liability of whatever kind incurred by it or them on this payment, including, but not limited to taxes, levies, assessments, fines, interest, and penalties.

 

  

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8.

	
Flanery acknowledges that, during the course of his employment, he was exposed to information confidential and proprietary to Papa John’s.  Flanery agrees that, unless otherwise required by law, he will not disclose to any third party any information that is confidential or proprietary to Papa John’s, and that by the Separation Date he will return to Papa John’s all documents containing any confidential or proprietary information relating to Papa John’s, including all electronic files and any other mediums whatsoever.  In the event Flanery is notified he may be required by law to disclose any such information to a third party, Flanery agrees to contact the office of General Counsel at least three (3) business days prior to the date of the proposed disclosure so that Papa John’s may take any steps it deems necessary to evaluate and protect against such disclosure.

	 	 
	
9.

	
Flanery agrees to abide by the terms of the attached November 1, 2005 Confidentiality and Non-Competition Agreement, which is reiterated and incorporated by reference herein.

	 	 
	
10.

	
Flanery further warrants that on or before the Separation Date, he will return any and all property of Papa John’s, including but not limited to any computer, key card, office keys, corporate credit card, and telephone credit card to the company; the parties agree that Flanery may keep his Blackberry, subject to the removal of all Company information at the Separation Date.  Flanery also warrants that, not later than thirty (30) days after the Separation Date, he will submit any outstanding expense reports to the office of Chief Financial Officer for reimbursement.  Flanery agrees that Papa John’s may deduct any outstanding advances or other amounts owed to Papa John’s from the amounts referenced in Paragraph 3 of this Agreement and Release.

 

  

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11.

	
Flanery agrees he will not voluntarily participate or testify in any proceeding adverse to Papa John’s, except to the extent required by law.  Flanery agrees he will notify Papa John’s within three (3) business days by contacting the office of General Counsel in response to any order, subpoena, deposition notice, or any other discovery request issued by or through a state or federal court or governmental agency or any other authority having the power to issue such an order, subpoena, deposition notice, or discovery request.  Each party agrees not to disparage or make derogatory comments about the other party, including Papa John’s successors, assigns, agents, representatives, employees, officers, directors, trustees, shareholders, insurers, reinsurers and any affiliated corporations or entities, at any time during Flanery’s continued employment or following the Separation Date.

	 	 
	
12.

	
Papa John’s and its representatives agree not to publish, discuss or release any information to any person concerning Flanery’s employment by Papa John’s or the separation of his employment, except as required by law, and except that upon request for employment information, Papa John’s will verify Flanery’s employment dates and position held.

	 	 
	
13.

	
The parties agree that any disputes arising out of this Agreement and Release or otherwise, including whether any provision of this Agreement and Release has been breached, shall be resolved solely through confidential mediation or confidential binding arbitration.  Any dispute shall initially be submitted to a neutral mediator, mutually selected by the parties with the costs of such mediation paid for by Papa John’s, for confidential resolution.  If such dispute is not satisfactorily resolved via mediation or the parties cannot agree upon a mediator, then it shall be submitted for confidential resolution by a neutral arbitrator, to be mutually selected by the parties from a list provided by the American Arbitration Association, with the costs of such arbitration to be divided equally between the parties and with such resolution to be made pursuant to that organization’s then-current Employment (or other applicable) Arbitration Rules and Mediation Procedures.

 

  

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14.

	
The parties further agree that, in the event a dispute arising out of this Agreement and Release or other dispute is submitted to mediation and/or arbitration, they will keep confidential both the fact that mediation/arbitration has or will take place, and all facts related thereto. Any settlement reached via mediation or award of an arbitrator shall be final and binding on the parties to this Agreement. The only exception to the mediation/arbitration requirement shall be that, in the event of an actual, threatened or anticipatory breach of the Confidentiality or Non-Disparagement provisions of this Agreement and Release, either party shall be entitled to seek injunctive relief from a court of competent jurisdiction to prevent or obtain immediate relief related to such breach.

	 	 
	
15.

	
The parties declare each has carefully read this Agreement and Release.  Both parties understand they have the right to and should consult with an attorney prior to executing this Agreement and Release.  With such understanding or consultation with counsel, both parties agree to the terms of this Agreement and Release for purposes of making a full and final adjustment and resolution of the matters contained herein.

 

  

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16.

	
It is understood and agreed this Agreement and Release does not and shall not constitute an admission by either party of any violation of any law or right of the other party.

	 	 
	
17.

	

This Agreement and Release constitutes the entire understanding and agreement between the parties as to the subject matter hereof and the terms of this Agreement and Release may not be waived, modified or supplemented except in writing by all parties hereto.  The parties further acknowledge that this Agreement and Release may be revoked within seven (7) days from the execution hereof and that the Agreement and Release shall not become effective or enforceable until after the revocation period has ended without revocation.  Flanery understands that, if he elects to exercise this revocation right, this Agreement and Release shall be voided in its entirety at the election of Papa John’s and Papa John’s shall be relieved of all obligations to make any payments under this Agreement and Release, provide the other benefits and take the other actions under Section 3(d), (e), (f) and (g) hereof.  Flanery may, if he wishes, elect to sign this Agreement and Release prior to the expiration of the twenty one-day consideration period, and Flanery agrees that if he elects to do so, his election is made freely and voluntarily and after having an opportunity to consult counsel.  Flanery agrees that any revocation shall be submitted to Papa John’s in writing to the attention of the Office of General Counsel.

	 	 	 	 
	
18.

	
Should this Agreement and Release be held invalid or unenforceable (in whole or in part) with respect to any particular claims or circumstances, it shall remain fully valid and enforceable as to all other claims and circumstances.

 

  

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19.

	
This Agreement and Release shall be construed in accordance with the laws of the Commonwealth of Kentucky.

	 	 
	
20.

	
Notwithstanding anything else in this Agreement and Release, the parties agree that this Agreement and Release does not constitute a waiver by the party of any rights or claims that may occur and arise after the date on which Flanery executes this Agreement and Release.

	 	 
	
21.

	
All notices, demands, requests, or other communications which may be or are required to be given or made by any party to the other party pursuant to this Agreement and Release shall be in writing and shall be hand delivered, mailed by first-class registered or certified mail, return receipt requested, postage prepaid, delivered by overnight air courier, or transmitted by facsimile transmission addressed as follows:

 

 

	  	
If to the Company:

	  	
Attn: General Counsel

	  	
Facsimile Number: (502) 261-4925

	  	  
	  	
If to Flanery:

	  	
3702 River Farm Cove, Prospect, KY 40059

 

 

	  	
Each party may designate by notice in writing a new address to which any notice, demand, request or communication may thereafter be so given, served or sent.  Each notice, demand, request, or communication that shall be given or made in the manner described above shall be deemed sufficiently given or made for all purposes at such time as it is delivered to the addressee (with the return receipt, the delivery receipt, confirmation of facsimile transmission or the affidavit of messenger being deemed conclusive but not exclusive evidence of such delivery) or at such time as delivery is refused by the addressee upon presentation.

 

  

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22.

	
The parties have not relied on any representations, promises, or agreements of any kind made to them in connection with this Agreement, except for those set forth in this Agreement.

	 	 
	
23.

	
The parties acknowledge and agree that none of the benefits provided to Flanery hereunder are deferred compensation for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (“Code”), and that none of the benefits provided to Flanery hereunder shall be subject to the six-month delay described in Code Section 409A(a)(2)(B).

	 	 
	
24.

	
The parties agree that this Agreement and Release may not be modified, altered or changed except by a written agreement signed by the parties hereto.  If any provision of this Agreement and Release is held to be invalid, the remaining provisions shall remain in full force and effect.

	 	 
	
25.

	
Flanery agrees to make himself reasonably available to Papa John’s relating to his prior services as an officer and employee of Papa John’s including, but not limited to, assisting the Company and any of its affiliates and acting as a witness in connection with any pending or threatened litigation or other legal proceeding with respect to which the Company or such affiliates reasonably determines his participation to be necessary, and responding to questions and inquiries with respect to such prior services in connection with any such proceedings.  Papa John’s agrees to reimburse Flanery for any and all reasonable expenses incurred by Flanery as a result of such participation.

 

  

10

  

 

	
26.

	
This Agreement and Release shall not be valid unless signed by both parties. This Agreement and Release may be executed in counterparts, each of which shall be deemed to be an original and all of which together shall constitute the Agreement and Release; provided, however, that this Agreement and Release shall not become effective until completely conforming counterparts have been signed and delivered by each of the parties hereto.  The parties agree that this Agreement and Release shall be binding upon and inure to the benefit of Flanery’s assigns, heirs, executors and administrators as well as Papa John’s, its parent, subsidiaries and affiliates and each of its and their respective officers, directors, employees, agents, predecessors, successors, purchasers, assigns, and representatives.

 

 

 

 

	
  /s/ J. David Flanery                                             

	
  March 25, 2011                                           

	
Signature of J. David Flanery

	
Date

	  	  
	  	  
	

  J. David Flanery                                                   

	  
	
Name Printed

	  
	  	  
	  	  
	
Papa John’s International, Inc.

	  
	  	  
	  	  
	
  /s/ Christopher J. Sternberg                               

	

  March 25, 2011                                           

	
Papa John’s Representative

	
Date

	  	  
	  	
  Senior Vice President, Corporate

	

  Christopher J. Sternberg                                     

	
  Communications and General Counsel

	
Papa John’s Representative Name Printed

	
Title

 

  

11

  

Annex A

SUPPLEMENTAL RELEASE

This Supplemental Release is made by and between J. David Flanery (hereinafter “Flanery”) and Papa John’s International, Inc., on behalf of itself and its affiliates and subsidiaries (hereinafter “Papa John’s”).

 

W I T N E S S E T H:

 

WHEREAS, the parties entered into an Agreement and Release on March 25, 2011, to clarify and memorialize certain agreements made between them in connection with Flanery’s employment and separation of employment (the “Agreement”), which is hereby acknowledged and incorporated fully by reference as if restated herein; and

 

WHEREAS, in the Agreement, Papa John’s provided consideration in exchange for Flanery’s release and certain other requirements set forth in the Agreement; and

 

WHEREAS, the Agreement further provides that the parties would enter into a Supplemental Release on his Separation Date should Flanery execute the Agreement prior to the conclusion of the Continuation Period (as defined in the Agreement); and

 

WHEREAS, Flanery acknowledges that he was given this Supplemental Release on ___________, and informed that he has twenty-one (21) days to consider it and he has voluntarily agreed to its terms.

 

NOW, THEREFORE, in consideration of the foregoing premises and the terms stated herein, it is mutually agreed between the parties as follows:

 

1.           Flanery’s separation of employment with Papa John’s will be effective June 9, 2011 (the “Separation Date”).

  

12

  

2.           Flanery, for himself and his heirs, personal representatives, successors and assigns, does hereby release and forever discharge Papa John’s, its successors, assigns, agents, representatives, employees, officers, directors, trustees, shareholders, insurers, reinsurers, and any subsidiaries and affiliated corporations or entities of any type or nature (hereafter the “Released Entities”), from any and all causes of action, claims, demands, suits, damages, sums of money, attorneys’ fees, and/or judgments (hereinafter “damages”) arising at any time prior to and through the date of the execution of this Supplemental Release which might have been asserted against the Released Entities including but not limited to any which may have been asserted against Papa John’s by or on behalf of Flanery relating to his employment by Papa John’s or the Released Entities or the separation of his employment, including credited, but unused vacation pay, profit sharing plans, stock option plans, retirement plans or any benefit plans of any type or nature, and any claims for discrimination of any type under any federal, state or local law or regulation, including, but not limited to, claims under the Age Discrimination in Employment Act of 1967, as amended, Title VII of the Civil Rights Act of 1964 and the Civil Rights Act of 1991, the Kentucky Civil Rights Act and the Family and Medical Leave Act, and the Americans with Disabilities Act, except for any claims arising under this Supplemental Release.

 

3.           The parties further acknowledge that Flanery may revoke this Supplemental Release within seven (7) days from the execution hereof, and that the Supplemental Release shall not become effective or enforceable until after the revocation period has ended without revocation.  Flanery agrees that any revocation shall be submitted to Papa John’s in writing to the attention of the office of General Counsel.

 

4.           Flanery understands that this agreement includes a complete waiver of claims, and  specifically acknowledges the following:

  

13

  

 

	
(a)

	
He has read this Supplemental Release, including the full release of claims, and fully understands its terms;

	 	 
	
(b)

	
He is voluntarily entering into this Supplemental Release knowingly of his own free will;

	 	 
	
(c)

	
The waiver specifically refers to rights or claims arising under the Age Discrimination in Employment Act of 1967, as amended;

	 	 
	
(d)

	
He has not waived any rights arising after the date that he executes this Supplemental Release;

	 	 
	
(e)

	
The payments and benefits and other consideration provided by the Agreement and this Supplemental Release are in addition to anything of value to which he is already entitled;

	 	 
	
(f)

	
He has been advised in writing to consult with an attorney prior to executing this Supplemental Release and has had an opportunity to review this Supplemental Release with an attorney;

	 	 
	
(g)

	
He has been given a period of twenty-one days to consider this Supplemental Release;

	 	 
	
(h)

	
The Supplemental Release provides him with a period of seven (7) days to revoke it; and

	 	 
	
(i)

	
The Supplemental Release will not become effective until the eighth day following its execution by him.

	  	  

 

 

If Flanery signs the Supplemental Release prior to the expiration of the twenty-one (21) days given to him within which to consider this Supplemental Release, he does so voluntarily and of his own free will.

  

14

  

 

	
                                                                                

	
 
                                                                                

	
Signature of J. David Flanery

	
Date

	  	  
	  	  
	
 
                                                                                

	  
	
Name Printed

	  
	  	  
	  	  
	
Papa John’s International, Inc.

	  
	  	  
	  	  
	
 
                                                                                

	
 
                                                                                

	
Papa John’s Representative

	
Date

	  	  
	  	
 

	
 
                                                                                

	
 
                                                                                

	
Papa John’s Representative Name Printed

	
Title

 

 

15

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