Document:

exv10w18

Exhibit 10.18

ABRAMS INDUSTRIES, INC.

SALARIED EMPLOYEES

SEVERANCE PLAN

Effective As of May 1, 1993

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE I
	 	Foreword	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II
	 	Definitions	 	 	1	 
	2.1
	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE III
	 	Eligibility for Severance Benefits	 	 	1	 
	3.1
	 	Eligibility Requirements	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE IV
	 	Amount and Form of Severance Benefits	 	 	1	 
	4.1
	 	Severance Pay	 	 	1	 
	4.2
	 	Exit Interview	 	 	5	 
	4.3
	 	Other Benefits	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE V
	 	Plan Financing	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE VI
	 	Administration	 	 	1	 
	6.1
	 	Allocation of Responsibility Among Fiduciary for Plan Administration	 	 	1	 
	6.2
	 	Administration	 	 	1	 
	6.3
	 	Claims Procedure	 	 	1	 
	6.4
	 	Other Administrative Powers  and Duties	 	 	3	 
	6.5
	 	Authorization of Benefit Payments	 	 	3	 
	6.6
	 	Facility of Payment	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE VII
	 	Amendment of the Plan	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE VIII
	 	Termination	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE IX
	 	Miscellaneous	 	 	1	 
	9.1
	 	Plan as Sole Source of Separation Benefits	 	 	1	 
	9.2
	 	Nonguarantee of Employment	 	 	1	 
	9.3
	 	Spendthrift Clause	 	 	1	 
	9.4
	 	Successor to the Corporation	 	 	2	 
	9.5
	 	Delegation of Authority by the Corporation	 	 	2	 
	9.6
	 	Headings	 	 	2	 
	 
	 	 	 	 	 	 
	ARTICLE X
	 	Applicable Law	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE XI
	 	Signature	 	 	1	 
	 
	 	 	 	 	 	 
	APPENDIX A
	 	Adopting Employers	 	 	1	 
	 
	 	 	 	 	 	 
	APPENDIX B
	 	Sample Severance Agreement	 	 	1	 
	 
	 	 	 	 	 	 
	APPENDIX C
	 	Sample Plan Administrator’s Claim Denial Letter	 	 	3	 

i 

 

ARTICLE I

Foreword

     The Abrams Industries, Inc. Salaried Employees Severance Plan provides for severance benefits
in the form of severance pay to eligible full-time salaried employees of Abrams Industries, Inc.
and employers affiliated with Abrams Industries, Inc. who have adopted the Plan (see Appendix A
attached hereto and made a part hereof for a schedule of the adopting employers). The only
severance benefits provided by Abrams Industries, Inc. and its affiliates to salaried employees are
pursuant to the terms and conditions of this Plan. This Plan is effective as of May 1, 1993.

     This Plan is the first and exclusive plan of benefits by Abrams Industries, Inc. and the
affiliated employers for the provision of severance pay and any post-termination benefits. To the
extent that any other written or unwritten plan, fund, program or arrangement to provide such
benefits for any employees of Abrams Industries, Inc. or the affiliated employers is deemed to
exist, or to have existed, under ERISA or otherwise, such other written or unwritten plan, fund,
program, or arrangement is hereby terminated and eliminated as of May 1, 1993.

I-1 

 

ARTICLE II

Definitions

     2.1 Definitions. This section provides definitions for certain words and phrases
listed below. These definitions can be found on the pages indicated.

	 	 	 	 	 

	(a)
	 	Additional Severance Pay	 	II-1
	(b)
	 	Authorized Leave of Absence	 	II-2
	(c)
	 	Base Pay	 	II-2
	(d)
	 	Break in Service	 	II-2
	(e)
	 	Code	 	II-2
	(f)
	 	Corporation	 	II-2
	(g)
	 	Effective Date	 	II-2
	(h)
	 	Employee	 	II-2
	(i)
	 	Employer	 	II-3
	(j)
	 	ERISA	 	II-3
	(k)
	 	Exit Interview	 	II-3
	(l)
	 	Fiduciaries	 	II-3
	(m)
	 	Hour of Service	 	II-3
	(n)
	 	Months of Service	 	II-4
	(o)
	 	Participant	 	II-4
	(p)
	 	Plan	 	II-4
	(q)
	 	Plan Administrator	 	II-4
	(r)
	 	Plan Year	 	II-4
	(s)
	 	Service	 	II-4
	(t)
	 	Service Commencement Date	 	II-5
	(u)
	 	Severance Agreement	 	II-5
	(v)
	 	Severance Benefits	 	II-5
	(w)
	 	Severance Date	 	II-5
	(x)
	 	Severance Pay	 	II-5
	(y)
	 	Standard Severance Pay	 	II-5
	(z)
	 	Years of Service	 	II-5

          Where the following words and phrases in boldface and underlined appear in this Plan with
initial capitals they shall have the meaning set forth below, unless a different meaning is plainly
required by context.

          (a) Additional Severance Pay. The Severance Pay in addition to Standard Severance Pay
that Participants, who sign a Severance Agreement, may receive under Section 4.1(b).

II-1 

 

          (b) Authorized Leave of Absence. Any absence authorized by an Employer under the
Employer’s standard personnel practices, whether paid or unpaid, provided that the Participant
returns within the period specified in the Authorized Leave of Absence.

          (c) Base Pay. A Participant’s regular straight time pay for the last regularly
scheduled workweek immediately preceding his Severance Date. Base Pay shall exclude any overtime
pay, bonuses, commissions, fees and incentive allowances. In addition, Base Pay shall also exclude
any retirement or welfare plan benefits, and the value of any such benefits, provided by the
Employer.

          (d) Break in Service. Any period of one business day or more during which the
Employee has no Hours of Service, as defined below, with an Employer.

          (e) Code. The Internal Revenue Code of 1986, as amended from time to time.

          (f) Corporation. Abrams Industries, Inc., a corporation organized and existing under
the laws of the state of Georgia, or its successor or successors.

          (g) Effective Date. The date upon which this Plan is effective, May 1, 1993.

          (h) Employee. Any person who is a full-time salaried employee of an Employer and who
is receiving remuneration for personal services rendered to an Employer (or who is on an Authorized
Leave of Absence). A person shall be considered a full-time employee if he is classified as a
full-time employee by the Employer in its routine payroll and personnel practices. The following
individuals or classes of individuals shall not qualify as Employees under this Plan:

               (1) Any individual whose terms and conditions of employment are determined by collective
bargaining with a union representing such persons and with respect to

II-2 

 

whom inclusion in this Plan has not been specifically provided for in such collective
bargaining agreement;

               (2) Any individual who is classified by the Employer as hourly, commissioned, associate,
casual, temporary or part-time or as an intern;

               (3) Any individual who is classified by the Employer as a contingent employee, a contract
laborer or a leased employee; and

               (4) Any individual who is not a United States citizen and who does not reside in the United
States.

          (i) Employer. The Corporation and the affiliated companies who have adopted the Plan
for their Employees (as listed in Appendix A attached hereto and made a part hereof).

          (j) ERISA. Public Law No. 93-406, the Employee Retirement Income Security Act of
1974, as amended from time to time.

          (k) Exit Interview. An Employee/Participant’s final outgoing interview with the
Employer.

          (l) Fiduciaries. The named fiduciaries, as defined in ERISA, who shall be the
Corporation and the Plan Administrator, and other parties designated as Fiduciaries by such named
fiduciaries in accordance with the powers provided herein, but only with respect to the specific
responsibilities of each in connection with the Plan.

          (m) Hour of Service. An Employee is credited with an Hour of Service for each hour
for which the Employee is paid, or entitled to payment, by an Employer for the performance of
duties and for each hour for which the Employee otherwise receives pay as an employee (e.g., for
vacation, holidays, jury duty, sickness, or military duty). For purposes of

II-3 

 

determining whether a Break in Service has occurred, Hours of Service shall also be credited
for the period of time an Employee is on an Authorized Leave of Absence.

          (n) Months of Service. The number of complete consecutive-calendar-month periods
during which the Participant has Service. If a Participant’s aggregate Months of Service include a
one-half month or more period, such a fractional month shall be counted as a full Month of Service.

          (o) Participant. An Employee who has satisfied the eligibility requirements of
Section 3.1, and who has become entitled to receive Severance Benefits under this Plan.

          (p) Plan. The Abrams Industries, Inc. Salaried Employees Severance Plan, the Plan set
forth herein, as it may be amended from time to time.

          (q) Plan Administrator. The Corporation, or an entity or person appointed by the
Corporation, which shall have authority to administer the Plan as provided in Article VI.

          (r) Plan Year. The Plan Year shall be each May 1 through April 30.

          (s) Service. The period of a Participant’s last continuous period of employment with
an Employer, which shall commence as of the Participant’s Service Commencement Date and, subject to
the following sentence, extend to his Severance Date. If a Participant incurs a Break in Service
and then returns to employment with an Employer, the Participant’s period of Service prior to such
Break in Service shall be disregarded. If a former Participant returns to work after a Break in
Service, the Participant’s period of Service for purposes of determining the amount of Severance
Benefits payable under this Plan shall commence with the date on which the Participant first has a
new Hour of Service with the Employer after a Break in Service and shall extend to his subsequent
Severance Date. Subject to the Break in Service rule discussed herein, a Participant’s Service
shall include all Service with

II-4 

 

any affiliated company that has adopted the Plan, as listed in Appendix A, attached hereto.
Further, a Participant’s transfer of employment between affiliated employers that are listed in
Appendix A shall not cause the Participant to have a Break in Service.

          (t) Service Commencement Date. The first day upon which the Participant has an Hour
of Service.

          (u) Severance Agreement. The written agreement between the Employee and an Employer
(on a form provided by an Employer) which is a condition precedent to the Employee’s receiving the
Additional Severance Pay Benefits under the Plan. A copy of a sample Severance Agreement intended
for use in connection with this Plan is attached hereto as Appendix B.

          (v) Severance Benefits. The various benefits described in Article IV of the Plan
which are payable to or on behalf of a Participant.

          (w) Severance Date. The date the Employee’s employment with the Employer is
terminated.

          (x) Severance Pay. The severance pay payable to a Participant in accordance with the
provisions of Section 4.1.

          (y) Standard Severance Pay. The severance Pay that all eligible Participants are
entitled to receive under Section 4.1(a), regardless of whether a Participant executes a Severance
Agreement.

          (z) Years of Service. The number of complete consecutive twelve-calendar-month
periods during which the Participant has Service. Except as provided in Section 4.1(b), if a
Participant’s aggregate Years of Service include a fractional Year of Service that equals or
exceeds six Months of Service, such a fractional year shall be counted as a full Year of Service.

II-5 

 

For example, a Participant who has been employed for eight years and six months shall be
credited with nine Years of Service for purposes of this Plan. A Participant who has been employed
for eight years and five months, however, shall be credited with only eight Years of Service for
purposes of this plan.

II-6 

 

ARTICLE III

Eligibility for Severance Benefits

     An Employee shall only be eligible to receive Severance Benefits under this Plan if he
satisfies the requirements of Section 3.1(a)(1) below. The amount and form of any Severance
Benefits shall be determined in accordance with Article IV.

     3.1 Eligibility Requirements.

          (a) Termination of Employment

               (1) An Employee whose employment with the Employer is terminated shall be eligible for
Severance Benefits hereunder if his termination is due to one of the following events:

                    (A) a reduction in the Employer’s work force;

                    (B) the reorganization or restructuring of the Employer;

                    (C) changes in the Employer’s operating requirements; or

                    (D) certain other circumstances specified or determined by the Plan Administrator at the time
of termination where an Employee loses his position through no fault of his own and where his
termination is not attributable to any willful cause.

          Any Employee who loses his or her job as a result of the sale of the assets or business of the
Employer, or any division or subsidiary of the Employer, shall be eligible to receive benefits
under this Plan only in the discretion of the Plan Administrator.

               (2) Employees will not be eligible for Severance Benefits pay if they:

                    (A) leave employment with the Employer voluntarily;

                    (B) are terminated for cause or misconduct;

III-1 

 

                    (C) retire from the Employer under conditions not involving elimination or termination of
their job or position; or

                    (D) terminate employment due to accident, death or illness.

               (3) The Plan Administrator shall have the discretionary right and final authority to make any
necessary determinations of eligibility based on the factors discussed in (a)(1) and (2) above.

          (b) Severance Agreement. If an Employee satisfies the eligibility requirements of
Section 3.1(a)(1) above, and executes and does not revoke the Severance Agreement, the Employee
shall be eligible to receive Additional Severance Pay, described in Section 4.1(b) of this Plan.
The Severance Agreement shall be executed at such time and in such manner as may be specified by
the Plan Administrator, provided that eligible Employees shall be given a period of twenty-one (21)
days after they have been provided the agreement to consider whether to sign the agreement. This
period shall be extended to forty-five (45) days for persons who are 40 years of age or older and
who are terminated as part of a force reduction, reorganization or other situation involving a
“group termination.” All Employees shall have the right to revoke the signed Severance Agreement
for seven (7) days after the date of the execution of such agreement.

          (c) Return of Employer Property. All Employees, in order to be eligible to receive
and continue receiving Severance Benefits, must return to the Employer all property of the Employer
which is in the possession, custody or control of the Employee. Such property includes, but is not
limited to, all materials, documents, plans, records or papers and any copies of such documents
which relate in any way to the affairs of the Employer. Such property further includes, but is not
limited to, all tools, telephones, computers, vehicles, credit cards, Guideline

III-2 

 

Manuals, and all monies due the Employer. The Plan Administrator reserves the right to deny
or cease or initiate recovery of any payment of a Participant’s benefits, if the Plan Administrator
determines that a Participant has not complied with this section.

III-3 

 

ARTICLE IV

Amount and Form of Severance Benefits

     When an Employee satisfies the eligibility requirements of Article III and becomes a
Participant in the Plan, he shall be entitled to the Severance Benefits set forth in Sections 4.1
and 4.2 below.

     4.1 Severance Pay.

          (a) Standard Severance Pay. All Participants are entitled to receive Standard
Severance Pay which shall equal one (1) week of Base Pay.

          (b) Additional Severance Pay. In addition to the Standard Severance Pay of one week
mentioned in 4.1(a) above, an Employee shall be eligible to receive Additional Severance Pay if in
addition to satisfying the requirements of Section 3.1, the Employee has one Year of Service with
the Employer and the Employee executes and does not revoke the Severance Agreement as defined in
Section 2.1(u). For the purpose of determining only whether an Employee is initially eligible for
Additional Severance Pay, a Year of Service is a complete continuous twelve calendar-month period,
determined without the rounding up of any fractional months of employment as provided in Section
2.1(z), during which the Employee has Service. Once an Employee is determined to be eligible for
Additional Severance Pay, “Years of Service,” as defined in Section 2.1(z) of the Plan, shall be
used to determine the amount of Additional Severance Pay that a Participant is entitled to receive
under this Section.

               A Participant’s Additional Severance Pay shall be equal to the greater of:

               (1) The Effective Date Severance Benefit to which the Participant would be entitled to
receive based solely on the Participant’s Years of Service as of the Effective Date,
5/1/93; or

IV-1 

 

               (2) The Alternative Severance Benefit based on the Participant’s Years of Service as of the
date of the Participant’s termination of employment under Section 3.1.

               The Effective Date Severance Benefit and Alternative Severance Benefit based on varying Years
of Service are contained in the following chart:

Additional Severance Pay Benefit Schedule

	 	 	 	 	 
	Years of	 	Effective Date	 	Alternative
	Service	 	Severance Benefit	 	Severance Benefit
	1
	 	1 wks.	 	.333 wks.
	2
	 	3 wks.	 	1.667 wks.
	3
	 	5 wks.	 	3.000 wks.
	4
	 	7 wks.	 	4.333 wks.
	5
	 	9 wks.	 	5.667 wks.
	6
	 	11 wks.	 	7.000 wks.
	7
	 	13 wks.	 	8.333 wks.
	8
	 	15 wks.	 	9.667 wks.
	9
	 	17 wks.	 	11.000 wks.
	10
	 	19 wks.	 	12.333 wks
	11
	 	21 wks.	 	13.667 wks.
	12
	 	23 wks.	 	15.000 wks.
	13
	 	“	 	16.333 wks.
	14
	 	“	 	17.667 wks.
	15
	 	“	 	19.000 wks.
	16
	 	“	 	20.333 wks
	17
	 	“	 	21.667 wks.
	18
	 	“	 	23.000 wks.
	19
	 	“	 	24.333 wks.
	20
	 	“	 	25.667 wks.
	AND THEREAFTER
	 	“	 	1.75 wks. Per
	AN ADDITIONAL:
	 	 	 	Year of Service

               Effective Date, 5/1/93, at the level reached on the Effective Date. Such Employees are
entitled to the Effective Date Severance Benefit until the Alternative Severance Benefit exceeds
the Effective Date Severance Benefit based on the Employee’s Years of Service.

	 	EXAMPLE: 	 	 An Employee began work on 1-20-88 and at 5-1-93 has 5 Years of
Service (actually 5 years and 3 months). This Employee’s Effective
Date Severance Benefit is frozen at 9

IV-2 

 

	 	 	 	 
	 	 	 	weeks. The Employee is then terminated on 8-1-99 with 12 Years of
Service. This Employee is entitled to the greater of 9 weeks under the
Effective Date Severance Benefit or 15 weeks under the Alternative
Severance Benefit; therefore the Employee receives 15 weeks of
Additional Severance Pay (and 1 week of Standard Severance Pay).
	 	EXAMPLE:
	 	An Employee beginning work on or after the Effective Date is
entitled only to the Alternative Severance Benefit.

          (c) Earlier Termination and Recovery of Additional Severance Pay. The Employer
reserves the absolute right to terminate the payment of Additional Severance Pay and to recover any
amount of Additional Severance Pay previously paid if the Employee:

               (i) fails to cooperate in the efficient or orderly transfer of the Employee’s duties or
responsibilities to other employees; or

               (ii) if at any time, takes any action contrary to the best interests of the Employer,
including, but not limited to the following:

                    (a) any action that harms the reputation of the Employer with its customers or the public;

                    (b) any action that interferes with existing contractual relationships with customers;

                    (c) solicitation of business or contracts from any of the Employer’s clients or customers;

                    (d) usage or disclosure of any proprietary or confidential information or trade secret
obtained while an Employee of the Employer;

IV-3

 

                    (e) any violation of the Severance Agreement or any other agreement entered into between the
Employee and Employer; and

                    (f) any other action or conduct which, in the discretion of the Plan Administrator, is
contrary to the best interest of the Company.

               (iii) files any claims or suits against the Employer (other than to enforce his rights under
this Plan).

          (d) Payment of Benefits. Standard Severance Pay shall be paid at Participant’s Exit
Interview, as described in Section 4.2, below. Additional Severance Pay shall commence on the
first regular payday of the Employer following receipt by the Employer of the Employee’s executed
Severance Agreement and expiration of the seven (7) day revocation period. Additional Severance
Pay shall be payable on regular paydays of the Employer at the same rate per week as Base Pay or in
a lump sum at the option of the Employer. All Severance Pay, including Standard Severance Pay and
Additional Severance Pay, shall be paid less deductions for applicable local, state and federal
taxes, and other legally required deductions. In addition, all Severance Pay is payable to
eligible Participants in addition to any regular salary earned through an Employee’s Severance Date
and in addition to pay for any earned vacation which has not been paid. All Severance Pay,
however, shall be reduced by the amount of any unemployment compensation benefits received by
Employees. The payment of any Severance Pay under this Article IV shall cease on the date of death
of the Participant, and no survivor benefit is payable. The Plan Administrator may elect, in its
discretion, to make payments of Severance Pay in a lump sum. The amount of Severance Pay will be
offset by the amount (if any) a Participant receives pursuant to the Worker Adjustment and
Retraining Notification Act (WARN).

IV-4

 

     4.2 Exit Interview. Each eligible Employee shall have an Exit Interview with the
Employer at which time the Employer will explain the reason for the Employee’s termination. The
Employer shall pay the Employee any salary earned through the Employee’s Severance Date, as
described in Section 4.1(d), including any accrued, but unused vacation. At this meeting, the
Employer shall also pay the Employee’s Standard Severance Benefit, as described in Section 4.1(a)
and 4.1(d). At the Exit Interview, the Employee also shall return all Employer property, as
provided in Section 3.1(c) of this Plan. Further, the Employee will be given the opportunity to
ask questions regarding the Employer’s insurance programs and profit sharing programs. Employees
will also be provided a Severance Agreement at this meeting. Any Employee who elects not to
receive such an exit interview, will receive a summary of the Plan’s benefits along with a
Severance Agreement in the United States certified mail.

     4.3 Other Benefits. With the exception of the benefits provided under Sections 4.1
and 4.2 above, the Employer-paid benefits provided to a Participant shall cease as of the
Participant’s Severance Date.

IV-5

 

ARTICLE V

Plan Financing

     No assets of the Employer shall be specifically set aside for the payment of benefits under
this Plan. Any benefits payable under this Plan shall be paid solely out of the general assets of
the Employer, and the obligation of any Employer is simply an obligation to make payments according
to the terms and conditions of this Plan. A Participant’s right to any payments hereunder shall be
the same as that of any unsecured general creditor of the Employer.

V-1

 

ARTICLE VI

Administration

     6.1 Allocation of Responsibility Among Fiduciary for Plan Administration. The
Fiduciaries shall have only those powers, duties, responsibilities, and obligations as are
specifically given or delegated to them under this Plan. The Employer shall have the sole
responsibility for paying the benefits under this Plan described in Articles III and IV, and the
Corporation shall have the sole authority to appoint and remove the Plan Administrator, and to
amend or terminate this Plan in whole or in part. The Plan Administrator shall have the sole
responsibility for the administration of the Plan, which responsibility is specifically described
herein.

     6.2 Administration. The Plan shall be administered by the Plan Administrator which
may appoint or employ individuals to assist in the administration of the Plan and which may appoint
or employ any other agents it deems advisable, including legal counsel and auditors, to serve at
the Plan Administrator’s direction. All usual and reasonable expenses of the Plan Administrator in
administering the Plan shall be paid in whole or in part by the Employer.

     6.3 Claims Procedure. The Plan Administrator shall have the exclusive discretionary
authority to construe and to interpret the Plan, to decide all questions of eligibility for
benefits and to determine the amount of such benefits, and its decisions on such matters are final
and conclusive. Any exercise of this discretionary authority shall be reviewed by a court under
the arbitrary and capricious standard (i.e., the abuse of discretion standard). If, pursuant to
this discretionary authority, any written claim to any right to a benefit by an Employee is wholly
or partially denied, the Plan Administrator, or a party designated by the Plan Administrator, will
provide such claimant, within the 90-day period following the receipt of the Employee’s written

VI-1

 

claim by the Plan Administrator, a comprehensible written notice (a copy of a sample written
notice is attached hereto as Appendix C) setting forth:

          (a) The specific reason or reasons for such denial;

          (b) Specific reference to pertinent Plan provisions on which the denial is based;

          (c) A description of any additional material or information necessary for the claimant to
submit to perfect the claim and an explanation of why such material or information is necessary;
and

          (d) A description of the Plan’s claim review procedure. The claim review procedure is
available upon written request by the claimant to the Plan Administrator, or the designated party,
within 60 days after receipt by the claimant of written notice of the denial of the claim, and
includes the right to examine pertinent documents and submit issues and comments in writing to the
Plan Administrator, or the designated party. The decision on review shall be made within 60 days
after receipt of the request for review, unless circumstances warrant an extension of time not to
exceed an additional 60 days, and shall be in writing and drafted in a manner calculated to be
understood by the claimant, and include specific reasons for the decision with references to the
specific Plan provisions on which the decision is based.

     If within a reasonable period of time after the Plan receives the written claim asserted by
the Employee, the Plan Administrator, or the designated party, fails to provide a comprehensible
written notice stating that the claim is wholly or partially denied and setting forth the
information described in (a) through (d) above, the claim shall be deemed denied. Once the claim
is deemed denied, the Employee shall be-entitled to the claim review procedure described in
subsection (d)

VI-2

 

above. Such review procedure shall be available upon written request by the claimant to the
Plan Administrator, or the designated party, within 60 days after the claim is deemed denied.

     6.4 Other Administrative Powers and Duties. The Plan Administrator shall have such
powers and duties as may be necessary to discharge its functions hereunder, including but not
limited to:

          (a) To exercise its discretionary authority to construe and interpret the Plan, decide all
questions of eligibility and determine the amount, manner and time of payment of any benefits
hereunder;

          (b) To prescribe procedures to be followed by Employees requesting benefits;

          (c) To prepare and distribute, in such manner as the Plan Administrator determines to be
appropriate, information explaining the Plan;

          (d) To receive from Employees and agents and from the Employer such information as shall be
necessary for the proper administration of the Plan;

          (e) To appoint or employ individuals or other parties to assist in the administration of the
Plan and any other agents it deems advisable, including accountants and legal counsel; and

          (f) To delegate to other persons or entities, or to designate or employ persons to carry out
any of the Plan Administrator’s fiduciary duties or responsibilities or other functions under the
Plan.

     6.5 Authorization of Benefit Payments. The Plan Administrator shall issue directions
to the Employers concerning all benefits which are to be paid pursuant to the provisions of the
Plan, and shall warrant that all such directions are in accordance with this Plan.

VI-3

 

     6.6 Facility of Payment. Whenever, in the Plan Administrator’s opinion, a Participant
entitled to receive any payment of a benefit or installment thereof hereunder is under a legal
disability or is incapacitated in any way so as to be unable to manage his financial affairs, the
Plan Administrator may direct the Participant’s Employer to make payments to such person or to the,
legal representative of such person for his benefit, or the Plan Administrator may direct the
Participant’s Employer to apply the payment for the benefit of such person in such manner as the
Plan Administrator considers advisable. Any payment of a benefit or installment thereof in
accordance with the provisions of this section shall be a complete discharge of any liability for
the making of such payment under the provisions of the Plan.

VI-4

 

ARTICLE VII

Amendment of the Plan

     The Corporation shall have the absolute right at any time by instrument in writing to modify,
alter or amend the Plan in whole or in part, retroactively or otherwise, including, without
limitation, the benefits provided under the Plan. Provided, however, no such amendment shall
diminish any payment of Severance Pay that a Participant had begun to receive prior to the date of
such amendment. The Corporation’s right to amend the Plan shall not be affected or limited in any
way by an Employee’s termination of employment. Prior practices by any Employer or any entity
related to the Employer shall not diminish in any way the rights granted the Corporation under this
Article. Oral and other informal communications made by the Corporation, an Employer or their
representatives concerning the Plan shall not give rise to any rights or benefits other than those
contained in the Plan described herein, and such communications shall not diminish in any way the
rights contained in this Article. Also, it is expressly permissible for an amendment to affect
less than all of the Employees covered by the Plan.

VII-1

 

ARTICLE VIII

Termination

     The Corporation and the Employers assume no obligation to continue the Plan. The Corporation
hereby reserves the right to terminate, or to partially terminate, the Plan at any time for any
reason. If the Corporation decides to terminate or partially terminate the Plan, the Plan
Administrator shall be notified of such termination in writing and shall proceed at the direction
of the Corporation to take such steps as are necessary to discontinue the operation of the Plan in
an appropriate and timely manner. Prior practices by any Employer or any entity related to the
Employer shall not diminish in any way the rights granted the Corporation under this Article. Oral
and other informal communications made by the Corporation, an Employer or their representatives
concerning the Plan shall not give rise to any rights or benefits other than those contained in the
Plan described herein, and such communications shall not diminish in any way the rights contained
in this Article.

VIII-1

 

ARTICLE IX

Miscellaneous

     9.1 Plan as Sole Source of Separation Benefits. The only severance, or other similar,
benefits to which an Employee is entitled who terminates employment with the Employer during the
time this Plan is in effect are provided for pursuant to the terms and conditions of this Plan. No
other severance payments, severance benefits or any similar benefits shall be payable from any
other source, regardless of whether the Employee is eligible for or entitled to benefits under this
Plan, nor shall any prior practices of the Employer or any entity related to an Employer, to the
extent such practices may have existed, give rise to any rights to any benefits upon severance from
employment.

     9.2 Nonguarantee of Employment. Nothing contained in this Plan shall be construed as
a contract of employment between the Employer and any Employee, or as a right of any Employee to be
continued in the employment of the Employer, or as a limitation of the right of the Employer to
discharge any of its Employees, with or without cause.

     9.3 Spendthrift Clause. Except to the extent mandated by law, benefits payable under
this Plan shall not be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, charge, garnishment, execution, or levy of any kind, either
voluntary or involuntary, and any attempt to anticipate, alienate, sell, transfer, assign, pledge,
encumber, charge or otherwise dispose of any right to benefits payable hereunder, shall be void and
of no force and effect whatsoever; provided, however, that the benefits hereunder may be assigned
or transferred to pay any bona fide debt of the Participant to an Employer. The Plan shall not in
any manner be liable for, or subject to, the debts, contracts, liabilities, engagements or torts of
any person entitled to benefits hereunder.

IX-1

 

     9.4 Successor to the Corporation. In the event of the dissolution, merger,
consolidation or reorganization of the Corporation, provision may be made by which the Plan will be
continued by the successor, and, in that event, such successor shall be substituted for the
Employer under the Plan.

     9.5 Delegation of Authority by the Corporation. Any action by the Corporation under
this Plan may be made by any person or persons duly authorized by the Corporation to take such
action.

     9.6 Headings. The headings of sections and subsections are for ease of reference only
and shall not be construed to limit or modify the detailed provisions thereof.

IX-2

 

ARTICLE X

Applicable Law

     The provisions of the Plan shall be construed and administered according to, and its validity
and enforceability shall be determined under ERISA. In the event ERISA does not pre-empt state law
in a particular circumstance, the laws of the State of Georgia shall govern.

     If any provision of this Plan is, or is hereafter
declared to be void, voidable, invalid or otherwise
unlawful, the remainder of the Plan shall not be
affected thereby.

X-1

 

ARTICLE XI

Signature

     The above Plan is hereby adopted and approved, to be effective as of May 1, 1993.

	 	 	 	 	 
	 	ABRAMS INDUSTRIES, INC.

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 

XI-1

 

	 	 	 	 	 

APPENDIX A

ADOPTING EMPLOYERS

Abrams Industries, Inc.

Abrams Fixture Corporation

Abrams Construction, Inc.

Abrams Properties, Inc.

A-1

 

APPENDIX B

SAMPLE SEVERANCE AGREEMENT

SEVERANCE AGREEMENT

     I,
  
      
       
       
        
     
     , the undersigned, hereby acknowledge receipt of a copy of the Summary
Plan Description (“SPD”) for the Abrams Industries, Inc. Salaried Employees Severance Plan (the
“Plan”). I also acknowledge that I have been given                      days to review the SPD, to review this
Agreement, and to decide whether or not to accept the terms and conditions required for my receipt
of the Additional Severance Pay Benefit (hereinafter “Severance Pay”) offered as part of the Plan.
I certify that I have had the opportunity to obtain all advice and information I deem necessary
with respect to the matters covered by this Agreement and the SPD including the opportunity to
consult with legal counsel or anyone else of my choosing.

     I agree not to take any action which disparages or criticizes Abrams Industries, Inc. or its
affiliated corporations, hereinafter referred to as “the Company,” or its management or practices
or which disrupts or impairs its normal operations, including actions which would result in the
filing of any claims, lawsuits or charges against the Company as a result of anything which has
occurred up to and including the present date. I understand that the Severance Pay I will receive
under the Plan is being provided in lieu of wages; therefore, I agree that those payments will be
reduced by any unemployment benefits or similar job-related benefits I receive from any state or
federal agency as compensation for any loss of wages during the Severance Pay period.

     In addition, and in further consideration of my receiving additional Severance Pay in the
total sum of       
       
       
 payable $      
       
        
 weekly for     
        
         weeks, the
sufficiency of which I acknowledge as calculated on the basis of my continuous service to the
Company from     
       
         
 to        
        
     ; I hereby agree to release and discharge the
Company, its officers, directors and employees from any and all claims, losses or expenses I now
have or have had, or may later claim to have had against them arising out of my employment with the
Company or termination therefrom. I understand and agree that I will not be entitled hereafter to
pursue any claims arising out of any alleged violation of my rights while employed by the Company,
including, but not limited to claims for back pay, losses or other damages to me or my property
resulting from any alleged violation of state or federal law, such as (but not limited to, claims
arising under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, et.
seq. (prohibiting discrimination on account of race, sex, national origin or religion);
claims arising under the Age Discrimination in Employment Act of 1967, 29 U.S.C. §§ 621,
et. seq. (prohibiting discrimination on account of age); claims under the
Employment Retirement Income Security Act of 1974, as amended (ERISA), 29 U.S.C. § 1001,
et. seq.; claims under the Americans with Disabilities Act of 1990 (ADA) 42 U.S.C.
§§ 12101-12213 (Supp. II 1990); and any similar federal or state law claim relating to my
employment.

     By signing this Agreement and accepting the Severance Pay provided by the Plan, I agree that I
will not hereafter pursue any individual claim against the Company, its officers, directors and
employees, in any state or federal court, or before any state or federal agency, including, for
example, the Equal Employment Opportunity Commission or the Department of Labor for, or on

B-1

 

account of anything which has occurred up to the present time as a result of my employment or
the termination of my employment with the Company. I also understand and agree that the Company
will have no obligation to re-employ me.

     I understand that, for a period of up to and including seven (7) days after the date I sign
this Agreement, I may revoke it entirely. No rights or obligations contained in this Agreement
shall become enforceable before the end of this seven-day revocation period. If I decide to revoke
the Agreement, I will deliver to the Company a signed Notice of Revocation on or before the end of
this seven-day period. Upon delivery of a timely Notice of Revocation, this Agreement shall be
cancelled and void and neither party to this Agreement shall have any rights or obligations arising
under it.

     I FURTHER ACKNOWLEDGE AND AGREE THAT NO OTHER PROMISE OR AGREEMENT OF ANY KIND HAS BEEN MADE
TO ME BY THE COMPANY TO CAUSE ME TO EXECUTE THIS AGREEMENT AND THAT THE ONLY CONSIDERATION FOR MY
EXECUTION OF THIS AGREEMENT IS SET FORTH COMPLETELY AND FULLY IN THIS DOCUMENT AND IN THE ABRAMS
INDUSTRIES, INC. SALARIED EMPLOYEES SEVERANCE PLAN. I HAVE CAREFULLY READ THIS AGREEMENT, I
UNDERSTAND ITS MEANING AND INTENT, AND I VOLUNTARILY AGREE TO ABIDE BY ITS TERMS. I ACKNOWLEDGE
RECEIVING A COPY OF THIS AGREEMENT AND SUMMARY PLAN DESCRIPTION FOR MY PERSONAL RECORDS.

	 	 	 	 	 	 	 	 	 

	FOR (NAME OF COMPANY)	 	 	 	WITNESSED:
	 
	 	 	 	 	BY:	 	 
	(Name & Title of Officer)	 	 	 	 	 	Signature
	 
	Date:

	 	 	 	 	 	Date:	 	 
	 
	NOTARY:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	Date:
	 	 	 	 	 	 	 	 
	 
	EMPLOYEE’S SIGNATURE	 	 	 	WITNESSED:
	 
	 

	 	 	 	BY:	 	 
	 
	Date:

	 	 	 	 	 	Date:	 	 
	 
	NOTARY:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	Date:
	 	 	 	 	 	 	 	 

B-2

 

APPENDIX C

SAMPLE PLAN ADMINISTRATOR’S CLAIM DENIAL LETTER

[ABRAMS LETTERHEAD]

[Date]

[Participant’s Name]

(Address]

Dear [Participant]:

     On [date] the Plan Administrator reviewed your request dated [date] for Severance Pay under
the Abrams Industries, Inc. Salaried Employees Severance Plan (the “Plan”). After a full review of
your request and a review of any documents relating to your request, the Plan Administrator has
determined that you are not entitled to Severance Benefits under the Plan. The reasons for the
Plan Administrator’s decision are set forth below.

[Paragraph 1 (and 2 or 3 if necessary) should state the specific reason or reasons
for the denial of benefits. This part should make specific reference to the
pertinent provisions of the Plan on which the denial is based.]

[Paragraph 2 should request any additional material or information necessary for the
employee to submit to perfect the claim, if applicable, and an explanation of why
this material or information is necessary.]

     You have the right to request a review of this decision by notifying the Plan Administrator in
writing within 60 days of your receipt of this letter of your desire for a review of this claim.

     In connection with this review, you may examine pertinent Plan documents and submit issues and
comments in writing to the Plan Administrator. Your request for review should indicate the
specific items you want reviewed, and the basis on which you think the decision should be reversed
and if you desire a hearing on the request for review.

     The Plan Administrator’s decision on review will be made within 60 days after it receives your
written request for review, unless the circumstances warrant an extension of time. This decision
will be in writing and will indicate the basis for the Plan Administrator’s decision on review.

	 	 	 	 	 
	 	Sincerely,

The Plan Administrator

Abrams Industries, Inc.

Salaries Employees Severance Plan

 	 
	 	By:  	 	 
	 	 	(Name and Title) 	 
	 	 	 	 

C-3

 

	 	 	 	 	 

AMENDMENT NO. 2

TO THE

ABRAMS INDUSTRIES, INC.

SALARIED EMPLOYEES SEVERANCE PLAN

     This Amendment made and entered into this 24th day of September, 2001, by Abrams Industries,
Inc. (the “Company”);

WITNESSETH:

     WHEREAS, the Company previously adopted the Abrams Industries, Inc. Salaried Employees
Severance Plan (the “Plan”) effective as of May 1, 1993, and has previously amended the Plan; and

     WHEREAS, the Company now desires to amend the Plan to clarify that: (a) employees who
otherwise have an employment agreement with the Company or an agreement with the Company for
severance or termination; and (b) employees who are on furlough or completing a furlough, are not
eligible for the Plan; and

     WHEREAS, the Company desires to amend the Plan to recognize the “bridged” service for
Servidyne Systems employees; and

     NOW, THEREFORE, for and in consideration of the premises and the mutual covenants contained
herein and contained in the Plan, the Plan is hereby amended as follows:

1.

     Section 2.1(t), the definition of Service, is amended effective as of May 9, 2001, by adding
at the end as follows:

“Employees who were employed by Servidyne Systems, Inc. on May 9, 2001, and who
continue in employment with an Employer after that date shall include in Service the
period of employment with Servidyne Systems, Inc. prior to such date subject to the
terms of this Plan with respect to the calculation of Service and the effect of
Breaks in Service.

2.

     Section 3.1 is hereby amended effective as of December 1, 2000, by adding at the end of
Section 3.1 two new subsections, (a)(2)(E) and (a)(2)(F), as follows:

“(E) are not actively working due to furlough status, as determined by the Company,
or are terminated at the end of the furlough status, or

“(F) have entered into an employment agreement with the Employer or have entered
into an agreement with respect to termination with the Employer under the terms of
which severance or other payment upon termination of employment is to be made,
unless such agreement provides for participation in this Plan.”

 

 

3.

     Appendix A is amended effective as of May 9, 2001, by adding as an Adopting Employer,
Servidyne Systems, LLC.

4.

     This Amendment No. 2 to the Plan shall be effective as of the date of this Amendment, except
as otherwise provided herein. Except as herein amended, the provisions of the Plan shall remain in
full force and effect.

     IN WITNESS WHEREOF, the undersigned has executed this Amendment No. 2 as of the day and year
first written above.

	 	 	 	 	 	 
	 	ABRAMS INDUSTRIES, INC.

 	 
	 	By:  	 	 
	 
	 	 	Title: 	 	 
	 	 	 	 

 

 

	 	 	 	 	 

AMENDMENT NO. 1

TO THE

ABRAMS INDUSTRIES, INC.

SALARIED EMPLOYEES SEVERANCE PLAN

     This Amendment made and entered into this 8th day of August, 1995, by Abrams Industries, Inc.
(the “Company”);

WITNESSETH:

     WHEREAS, the Company previously adopted the Abrams Industries, Inc. Salaried Employees
Severance Plan (the “Plan”) effective as of May 1, 1993; and

     WHEREAS, the Company now desires to amend the Plan to permit the Company, at its discretion,
to provide a reduced level of benefits to certain employees terminated for unacceptable job
performance;

     NOW, THEREFORE, for and in consideration of the premises and the mutual covenants contained
herein and contained in the Plan, the Plan is hereby amended as follows:

1.

     Section 2.1 is hereby amended by adding to the list on page II-1 a new definition (s) entitled
“Reduced Severance Pay” and by renumbering the remainder of the list accordingly. Section 2.1 is
further amended by adding a new subsection (s) as follows, and by renumbering the current
subsections (s) through (z) (and any references thereto) accordingly:

“(s) Reduced Severance Pay — The reduced level of Severance Pay that
certain Participants may receive under Section 4.1(c).”

2.

     Subsection 4.1(b) is hereby amended by deleting the first sentence of such subsection in its
entirety and by substituting the following therefor:”

“In addition to the Standard Severance Pay of one week mentioned in Section 4.1(a)
above, and except as provided in Section 4.1(c) below, an Employee shall be eligible
to receive Additional Severance Pay if, in addition to satisfying the requirements
of Section 3.1, the Employee has one Year of Service with the Employer and the
Employee executes and does not revoke the Severance Agreement as defined in Section
2.1(v).”

3.

     Section 4.1 is hereby further amended by adding a new subsection (c) as follows and by
renumbering the current subsections (c) and (d) (and any references thereto) accordingly:

 

 

“(c) Reduced Severance Pay — An Employee who is terminated for
performance-related reasons not involving willful misconduct or violation of the
Employer’s policies, who would otherwise satisfy the requirements for and be
eligible to receive Additional Severance Pay under Section 4.1(b) above, may, in the
discretion of the Plan Administrator, be eligible for Reduced Severance Pay in an
amount equal to one-half of the Additional Severance Pay calculated in accordance
with the rules of Section 4.1(b). Such Reduced Severance Pay shall be treated as
Additional Severance Pay for all purposes under this Plan. If such Employee is not
entitled to Reduced Severance Pay, he shall only be entitled to one week of Standard
Severance Pay.”

4.

     This Amendment No. 1 to the Plan shall be effective as of August 8, 1995. Except as herein
amended, the provisions of the Plan shall remain in full force and effect.

     IN WITNESS WHEREOF, the undersigned has executed this Amendment No. 1 as of the day and year
first written above.

	 	 	 	 	 
	 	ABRAMS INDUSTRIES, INC.

 	 
	 	By:  	 	 
	 	 	Title:  Chairman and CEOexv10w01

Exhibit 10.01

EXECUTIVE TRANSITION AND RELEASE AGREEMENT

     This Executive Transition and Release Agreement (this “Agreement”) is entered into between
Thomas A. Cooley (“Executive”) and Cadence Design Systems, Inc. (“Cadence” or the “Company”).

     1. RESIGNATION. Effective as of April 27, 2011 (the “Effective Date”), Executive hereby
resigns his positions as Senior Vice President of Worldwide Field Operations of Cadence and, after
the Effective Date, Executive will be relieved of all of Executive’s authority and responsibilities
in those positions and all other positions that Executive may hold as an officer of Cadence or any
of its subsidiaries or affiliates, after which Executive shall be employed by Cadence solely as a
non-executive employee, as an advisor to Charlie Huang, Executive’s successor as the Senior Vice
President of Worldwide Field Operations.

     2. TRANSITION COMMENCEMENT DATE. From the Effective Date until July 1, 2011 (the “Initial
Period”), Executive shall remain a full-time employee of Cadence; provided, however, that (i) if
Executive desires to accept full-time employment with a third party that is not engaged in a
Cadence Business or the EDA Industry (each, as hereinafter defined), Cadence shall not unreasonably
withhold or delay its consent to same, and (ii) if Cadence grants such consent and Executive
accepts such full-time employment, then Executive’s employment with Cadence during the remainder of
the Initial Period shall change to a part-time basis. Effective as of July 2, 2011 (the
“Transition Commencement Date”), Executive, to the extent he has not already transitioned into
part-time status, shall become a part-time employee of Cadence. Executive will be paid (a) any
earned but unpaid base salary for his services as an officer of the Company prior to the Transition
Commencement Date and any outstanding expense reimbursements submitted and approved pursuant to
Section 3.1 of Executive’s Employment Agreement with the Company dated as of February 23, 2009, as
amended by the First Amendment dated as of May 13, 2009 and the Second Amendment dated as of March
31, 2010 (as amended, the “Employment Agreement”); and (b) other unpaid vested amounts or benefits
under the compensation, incentive and benefit plans of the Company in which Executive participates,
in each case under this clause (b) as of the Transition Commencement Date. The payment of the
foregoing amounts shall be made to Executive by no later than the next regular payroll date
following the Transition Commencement Date. As of the first day of the month following the
Transition Commencement Date, or, if sooner, the first date that Executive no longer meets the
eligibility requirements under the terms of Cadence’s medical, dental, and vision insurance plans,
Executive will no longer participate in Cadence’s medical, dental, and vision insurance plans
(unless Executive elects to continue coverage pursuant to COBRA).

     3. TRANSITION PERIOD. The period from the Effective Date to the date when Executive’s
employment with Cadence under this Agreement terminates (the “Termination Date”) is called the
“Transition Period” in this Agreement. Executive’s Termination Date will be the earliest to occur
of:

          a. the date on which Executive resigns from all employment with Cadence;

          b. the date on which Cadence terminates Executive’s employment due to a material breach by
Executive of Executive’s duties or obligations under this Agreement after

 

 

written notice delivered to Executive identifying such breach and his failure to cure such
breach, if curable, within thirty (30) days following delivery of such notice; and

          c. July 1, 2012.

     4. DUTIES AND OBLIGATIONS DURING THE TRANSITION PERIOD AND AFTERWARDS.

          a. During the Initial Period, Executive shall assist Cadence in the smooth transition of his
duties and responsibilities to his successor and will render such services as Cadence’s Chief
Executive Officer (“CEO”) and/or Senior Vice President of Worldwide Field Operations may reasonably
request during normal business hours. During the period from the Transition Commencement Date
until the Termination Date, Executive will render such services as reasonably requested by
Cadence’s Chief Financial Officer on an as-needed basis at mutually-convenient times. From and
after the Transition Commencement Date, Executive’s time rendering the services described herein
shall not exceed twenty (20) hours per month. Except as otherwise provided in paragraph 4(b) of
this Agreement, from and after the Transition Commencement Date (or such earlier date as mutually
agreed by Executive and Cadence), Executive’s obligations hereunder will not preclude Executive
from accepting and holding full-time employment elsewhere. Neither party expects that Executive
will resume employment with Cadence in the future at a level that exceeds the level set forth in
this paragraph 4(a) and it is the parties’ intent that Executive will have experienced a
“separation from service” as defined in Section 409A of the Code as of the Transition Commencement
Date.

          b. In the course of his work with Cadence, Executive has obtained extensive and valuable
knowledge and information concerning Cadence’s business (including confidential information
relating to Cadence and its operations, intellectual property, assets, contracts, customers,
personnel, plans, marketing plans, research and development plans and prospects). Executive
acknowledges and agrees that it would be virtually impossible for Executive to work as an employee,
consultant or advisor in any business in which Cadence engages on the Transition Commencement Date,
including the EDA Industry (as hereinafter defined), without inevitably disclosing confidential and
proprietary information belonging to Cadence. Accordingly, during the Transition Period, Executive
will not, directly or indirectly, provide services, whether as an employee, consultant, independent
contractor, agent, sole proprietor, partner, joint venturer, corporate officer or director, on
behalf of any corporation, limited liability company, partnership, or other entity or person or
successor thereto that (i) is engaged in any business in which Cadence or any of its affiliates is
engaged on the Transition Commencement Date or has been engaged at any time during the 12-month
period immediately preceding the Transition Commencement Date, whether in the EDA Industry or
otherwise, anywhere in the world (a “Cadence Business”), or (ii) produces, markets, distributes or
sells any products, directly or indirectly through intermediaries, that are competitive with
Cadence or any of its affiliates. As used in this Agreement, the term “EDA Industry” means the
research, design or development of electronic design automation software, electronic design
verification, emulation hardware and related products, such products containing hardware, software
and both hardware and/or software products, designs or solutions for, and all intellectual property
embodied in the foregoing, or in commercial electronic design and/or maintenance services, such
services including all intellectual property embodied in the foregoing. If, during the Transition
Period, Executive receives an offer of employment or consulting from any person or entity that
engages

2

 

in whole or in part in a Cadence Business, then Executive must first obtain written approval
from Cadence’s CEO before accepting said offer.

          c. During the Transition Period, Executive will be prohibited, to the fullest extent allowed
by applicable law, and except with the written advance approval of Cadence’s CEO (or his
successor(s)), from voluntarily or involuntarily, for any reason whatsoever, directly or
indirectly, individually or on behalf of persons or entities not now parties to this Agreement: (i)
encouraging, inducing, attempting to induce, recruiting, attempting to recruit, soliciting or
attempting to solicit or participating in any way in hiring or retaining for employment, contractor
or consulting opportunities anyone who is employed at that time, or was employed during the
previous one year, by Cadence or any Cadence affiliate; (ii) interfering or attempting to interfere
with the relationship or prospective relationship of Cadence or any Cadence affiliate with any
former, present or future client, customer, joint venture partner, or financial backer of Cadence
or any Cadence affiliate; or (iii) soliciting, diverting or accepting business, in any line or area
of business engaged in by Cadence or any Cadence affiliate, from any former or present client,
customer or joint venture partner of Cadence or any Cadence affiliate (other than on behalf of
Cadence), except that Executive may solicit or accept business, in a line of business engaged in by
Cadence or a Cadence affiliate, from a former or present client, if and only if Executive had
previously provided consulting services in such line of business, to such client, prior to ever
being employed by Cadence, but in no event may Executive violate paragraph 4(b) hereof. The
restrictions contained in subparagraph (i) of this paragraph 4(c) shall also be in effect for a
period of one year following the Termination Date. This paragraph 4(c) does not alter any of the
obligations the Executive may have under the Employee Invention and Confidential Information
Agreement, dated March 6, 1995.

          d. Executive will fully cooperate with Cadence in all matters relating to his employment,
including the winding up of work performed in Executive’s prior position and the orderly transition
of such work to other Cadence employees.

          e. Executive will not make any statement, written or oral, that disparages Cadence or any of
its affiliates, or any of Cadence’s or its affiliates’ products, services, policies, business
practices, employees, executives, officers, or directors, past, present or future. Similarly,
Cadence agrees to instruct its executive officers and members of the Company’s Board of Directors
not to make any statement, written or oral, that disparages Executive. The restrictions described
in this paragraph shall not apply to any truthful statements made in response to a subpoena or
other compulsory legal process.

          f. Notwithstanding paragraph 11 hereof, the parties agree that damages would be an inadequate
remedy for Cadence in the event of a breach or threatened breach by Executive of paragraph 4(b) or
4(c), or for Cadence or Executive in the event of a breach or threatened breach of paragraph 4(e).
In the event of any such breach or threatened breach, the non-breaching party may, either with or
without pursuing any potential damage remedies, obtain from a court of competent jurisdiction, and
enforce, an injunction prohibiting the other party from violating this Agreement and requiring the
other party to comply with the terms of this Agreement.

     5. TRANSITION COMPENSATION AND BENEFITS. In consideration of Executive’s execution of the
release of claims in this Agreement and in Attachment 1 and as

3

 

compensation for Executive’s services during the Initial Period and the Transition Period,
Cadence will provide the following payments and benefits to Executive (to which Executive would not
otherwise be entitled), so long as Executive returns to the Company, on the earlier of the
Transition Commencement Date or the date the Executive ceases to serve as a full-time employee of
the Company, all hard and soft copies of records, documents, materials and files in his possession
or control, which contain or relate to confidential, proprietary or sensitive information obtained
by Executive in conjunction with his employment with the Company, as well as all other
Company-owned property, except to the extent retained pursuant to Section 7 of the Employment
Agreement:

          a. During the Initial Period, Executive shall continue to receive his base salary, and shall
remain eligible to receive bonus compensation for the first half of calendar year 2011 with a
personal multiplier of 1.0; provided, however, that in the event Executive’s employment transitions
from full-time to part-time prior to the Transition Commencement Date, from and after such
transition to part-time status (i) Executive’s base salary shall be pro-rated based on the number
of hours per week actually worked by Executive, and (ii) if such transition occurs before July 1,
2011, Executive’s bonus for the first half of 2011 shall be based on his eligible earnings for the
period, which would consist of his base salary earned during the period plus any payments earned
under paragraph 5(a)(i) above.

          b. Effective as of the Transition Commencement Date, so long as the Executive executes and
delivers a Release of Claims in the form of Attachment 1 hereto no more than ten (10) days before
the Transition Commencement Date and such Release of Claims has become irrevocable in accordance
with its terms on or prior to the Transition Commencement Date, all of the unvested equity
compensation awards (including stock options, restricted stock and restricted stock units) that are
not performance-based within the meaning of Section 162(m) of the Internal Revenue Code of 1986, as
amended (the “Code”), that are outstanding and held by Executive on the Transition Commencement
Date and that would have vested over the twelve (12) months following the Transition Commencement
Date had Executive continued to serve as an executive of the Company pursuant to his Employment
Agreement, shall immediately vest and become exercisable in full on the Transition Commencement
Date of this Agreement, and there shall be no further vesting of those equity compensation awards
during or after the Transition Period, notwithstanding any provision in any equity compensation
award to the contrary, except as otherwise provided by paragraph 8 hereof. Provided Executive
continues in employment under this Agreement through the end of the applicable performance period,
unvested equity compensation awards that are performance-based within the meaning of Section 162(m)
of the Code and that are outstanding and held by Executive on the Transition Commencement Date
shall continue to vest though the end of the applicable performance period provided any such
performance period ends within twelve (12) months following the Transition Commencement Date, but
only to the extent justified by the satisfaction of the performance goals prescribed for such
equity awards. Upon the conclusion of the performance period, such awards shall immediately vest
to the extent they would have vested over the twelve (12) months following the Transition
Commencement Date had Executive continued to serve as an executive of the Company pursuant to his
Employment Agreement, and there shall be no further vesting of such awards during or after the
Transition Period except as otherwise provided by paragraph 8 hereof. Any acceleration pursuant to
this paragraph 5(b) will have no effect on any other provisions of the stock awards.

4

 

          c. Executive’s employment pursuant to this Agreement (whether full-time or part-time) shall be
considered a continuation of employee status and continuous service for all purposes under any
equity compensation awards previously granted to Executive by the Company and outstanding on the
Effective Date.

          d. If Executive elects to continue coverage under Cadence’s medical, dental, and vision
insurance plans pursuant to COBRA following the Transition Commencement Date (or such earlier date
when Executive ceases to be eligible for coverage under Cadence’s medical, dental, and vision
insurance plans), Cadence will pay Executive’s COBRA premiums during the Transition Period;
provided, however, that Cadence’s payment of such COBRA premiums shall cease upon Executive
becoming eligible for coverage under similar benefit plans made available by a subsequent employer.

Except as so provided or as otherwise set forth in paragraphs 6, 7 and 8 hereof, Executive will
receive no other compensation or benefits from Cadence in consideration of Executive’s services
during the Transition Period.

     6. FIRST TERMINATION PAYMENT AND BENEFITS. Provided that Executive does not resign from
employment with Cadence under this Agreement and Cadence does not terminate Executive’s employment
with Cadence pursuant to paragraph 3(b) due to a material breach by Executive of Executive’s duties
under this Agreement, and in consideration for, and subject to, Executive’s execution and
acceptance of and adherence to this Agreement and Executive’s execution and delivery of a Release
of Claims in the form of Attachment 1 as set forth in paragraph 5(b), and as compensation for
Executive’s services during the Transition Period from and after the Transition Commencement Date,
Cadence will provide to Executive the following termination payment, to which Executive would not
otherwise be entitled, in each case, so long as the Release of Claims has become irrevocable in
accordance with its terms prior to the date of payment:

          a. a lump-sum payment of $425,000.00, less applicable tax deductions and withholdings, payable
on the thirtieth (30th) day following the date that is six months after the Transition Commencement
Date; and

          b. for a period of six months, a monthly salary of $4,000.00 less applicable tax withholdings
and deductions, payable in accordance with Cadence’s regular payroll schedule, commencing on the
first pay date that is more than thirty (30) days following the date that is six months after the
Transition Commencement Date.

     7. SECOND TERMINATION PAYMENT AND BENEFITS; REFUND OF PAYMENTS.

          a. Provided that Executive does not resign from employment with Cadence under this Agreement
and Cadence does not terminate Executive’s employment with Cadence pursuant to paragraph 3(b) due
to a material breach by Executive of Executive’s duties under this Agreement, on the thirtieth
(30th) day following the Termination Date, and in consideration for, and subject to, Executive’s
execution and acceptance of and adherence to this Agreement and Executive’s further execution of a
Release of Claims in the form of Attachment 2 to this Agreement on the Termination Date, Cadence
will provide to Executive the following

5

 

termination payment, to which Executive would not otherwise be entitled, so long as the
Release of Claims has become irrevocable in accordance with its terms prior to the date of payment:

               i. a lump-sum payment of $318,750.00, less applicable tax deductions and withholdings.

          b. If the Company should terminate Executive’s employment with the Company due to a breach by
Executive of Executive’s duties or obligations under this Agreement, Executive shall promptly
refund to the Company any and all amounts theretofore paid to Executive pursuant to paragraph 6(a),
with interest on any such amount of eight percent per annum, compounded monthly.

          c. Notwithstanding anything in this Agreement to the contrary, to the extent that the Company
in good faith determines that any portion of the payments provided for in this Agreement resulting
from Executive’s termination of employment constitutes a “deferral of compensation” and that
Executive is a “specified employee,” both within the meaning of Section 409A of the Code, no such
amounts shall be payable to Executive pursuant to the Agreement prior to the earlier of (1)
Executive’s death following the Transition Commencement Date or (2) the date that is six months
following the date of Executive’s “separation from service” with the Company (within the meaning of
Section 409A of the Code).

     8. CHANGE IN CONTROL. If a Change in Control (as defined in the Employment Agreement) occurs
within three (3) months following the Effective Date, in which case the Company shall promptly
notify Executive of the occurrence of such Change in Control, then (a) Section 4.5(a)(3) of the
Employment Agreement shall apply in lieu of paragraph 5(b) of this Agreement; and (b) Sections
4.5(a)(1) and 4.5(a)(2) of the Employment Agreement shall apply in addition to paragraphs 6(a) and
7(a) of this Agreement.

     9. GENERAL RELEASE OF CLAIMS.

          a. Executive hereby irrevocably, fully and finally releases Cadence, its parent, subsidiaries,
affiliates, directors, officers, agents and employees (“Releasees”) from all causes of action,
claims, suits, demands or other obligations or liabilities, whether known or unknown, suspected or
unsuspected, that Executive ever had or now has as of the time that Executive signs this Agreement
which relate to his hiring, his employment with the Company, the termination of his employment with
the Company and claims asserted in shareholder derivative actions or shareholder class actions
against the Company and its officers and Board of Directors, to the extent those derivative or
class actions relate to the period during which Executive was employed by the Company. The claims
released include, but are not limited to, any claims arising from or related to Executive’s
employment with Cadence, such as claims arising under (as amended) Title VII of the Civil Rights
Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1974, the
Americans with Disabilities Act, the Equal Pay Act, the Fair Labor Standards Act, the California
Fair Employment and Housing Act, the California Labor Code, the Employee Retirement Income Security
Act of 1974 (except for any vested right Executive has to benefits under an ERISA plan), the state
and federal Worker Adjustment and Retraining Notification Act, and the California Business and
Professions Code; any other local, state, federal, or foreign law governing employment; and the
common law of contract and tort. In no

6

 

event, however, shall any claims, causes of action, suits, demands or other obligations or
liabilities be released pursuant to the foregoing if and to the extent they relate to:

               i. any amounts or benefits to which Executive is or becomes entitled pursuant to the
provisions of this Agreement or pursuant to the provisions designated in Section 9.9 of the
Employment Agreement to survive the termination of Executive’s full-time employment;

               ii. claims for workers’ compensation benefits under any of the Company’s workers’ compensation
insurance policies or funds;

               iii. claims related to Executive’s COBRA rights;

               iv. any rights that Executive has or may have to be indemnified by Cadence pursuant to any
contract, statute, or common law principle; and

               v. any other rights or claims that Executive has or may have that cannot, as a matter of law,
be waived.

          b. Executive represents and warrants that he has not filed any claim, charge or complaint
against any of the Releasees based upon any of the matters released above.

          c. Executive acknowledges that the payments provided in this Agreement constitute adequate
consideration for the release set forth in this paragraph 9.

          d. Executive intends that this release of claims cover all claims described above, whether or
not known to Executive. Executive further recognizes the risk that, subsequent to the execution of
this Agreement, Executive may incur loss, damage or injury which Executive attributes to the claims
encompassed by this release. Executive expressly assumes this risk by signing this Agreement and
voluntarily and specifically waives any rights conferred by California Civil Code section 1542
which provides as follows:

A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if
known by him or her must have materially affected his or her settlement with the
debtor.

          e. Executive represents and warrants that there has been no assignment or other transfer of
any interest in any claim by Executive that is covered by this release.

     10. REVIEW OF AGREEMENT; REVOCATION OF ACCEPTANCE. Executive has been given at least 21 days
in which to review and consider this Agreement, although Executive is free to accept this Agreement
anytime within that 21-day period. Executive is advised to consult with an attorney about the
Agreement. If Executive accepts this Agreement, Executive will have an additional 7 days from the
date that Executive signs this Agreement to revoke that acceptance, which Executive may effect by
means of a written notice sent to the CEO. If this 7-day period expires without a timely
revocation, this Agreement will become final and effective on the eighth day following the date of
Executive’s signature.

7

 

     11. ARBITRATION. Subject to paragraph 4(f) hereof, all claims, disputes, questions, or
controversies arising out of or relating to this Agreement, including without limitation the
construction or application of any of the terms, provisions, or conditions of this Agreement, will
be resolved exclusively in final and binding arbitration in accordance with the Arbitration Rules
and Procedures, or successor rules then in effect, of Judicial Arbitration & Mediation Services,
Inc. (“JAMS”). The arbitration will be held in the San Jose, California, metropolitan area, and
will be conducted and administered by JAMS or, in the event JAMS does not then conduct arbitration
proceedings, a similarly reputable arbitration administrator. Executive and Cadence will select a
mutually acceptable, neutral arbitrator from among the JAMS panel of arbitrators. Except as
provided by this Agreement, the Federal Arbitration Act will govern the administration of the
arbitration proceedings. The arbitrator will apply the substantive law (and the law of remedies, if
applicable) of the State of California, or federal law, if California law is preempted, and the
arbitrator is without jurisdiction to apply any different substantive law. Executive and Cadence
will each be allowed to engage in adequate discovery, the scope of which will be determined by the
arbitrator consistent with the nature of the claim[s] in dispute. The arbitrator will have the
authority to entertain a motion to dismiss and/or a motion for summary judgment by any party and
will apply the standards governing such motions under the Federal Rules of Civil Procedure. The
arbitrator will render a written award and supporting opinion that will set forth the arbitrator’s
findings of fact and conclusions of law. Judgment upon the award may be entered in any court of
competent jurisdiction. Cadence will pay the arbitrator’s fees, as well as all administrative fees,
associated with the arbitration. Each party will be responsible for paying its own attorneys’ fees
and costs (including expert witness fees and costs, if any). However, in the event a party prevails
at arbitration on a statutory claim that entitles the prevailing party to reasonable attorneys’
fees as part of the costs, then the arbitrator may award those fees to the prevailing party in
accordance with that statute.

     12. NO ADMISSION OF LIABILITY. Nothing in this Agreement will constitute or be construed in
any way as an admission of any liability or wrongdoing whatsoever by Cadence or Executive.

     13. INTEGRATED AGREEMENT. This Agreement is intended by the parties to be a complete and
final expression of their rights and duties respecting the subject matter of this Agreement. Except
as expressly provided herein, nothing in this Agreement is intended to negate Executive’s agreement
to abide by Cadence’s policies while serving as a Cadence employee, including but not limited to
Cadence’s Employee Handbook, Sexual Harassment Policy and Code of Business Conduct, or Executive’s
continuing obligations under Executive’s Employee Proprietary Information and Inventions Agreement,
or any other agreement governing the disclosure and/or use of proprietary information, which
Executive signed while working with Cadence or its predecessors; nor to waive any of Executive’s
obligations under state and federal trade secret laws.

     14. FULL SATISFACTION OF COMPENSATION OBLIGATIONS; ADEQUATE CONSIDERATION. Executive agrees
that the payments and benefits provided herein satisfy in full all obligations of Cadence to
Executive arising out of or in connection with Executive’s employment through the Termination Date,
including, without limitation, all compensation, salary, bonuses, reimbursement of expenses, and
benefits.

8

 

     15. TAXES AND OTHER WITHHOLDINGS. Notwithstanding any other provision of this Agreement, the
Company may withhold from amounts payable hereunder all federal, state, local and foreign taxes and
other amounts that are required to be withheld by applicable laws or regulations, and the
withholding of any amount shall be treated as payment thereof for purposes of determining whether
Executive has been paid amounts to which he is entitled.

     16. WAIVER. Neither party shall, by mere lapse of time, without giving notice or taking other
action hereunder, be deemed to have waived any breach by the other party of any of the provisions
of this Agreement. Further, the waiver by either party of a particular breach of this Agreement by
the other shall neither be construed as, nor constitute, a continuing waiver of such breach or of
other breaches of the same or any other provision of this Agreement.

     17. MODIFICATION. This Agreement may not be modified unless such modification is embodied in
writing, signed by the party against whom the modification is to be enforced. Notwithstanding
anything herein or in the Employment Agreement to the contrary, the Company may, in its sole
discretion, amend this Agreement (which amendment shall be effective upon its adoption or at such
other time designated by the Company) at any time prior to a Change in Control as may be necessary
to avoid the imposition of the additional tax under Section 409A(a)(1)(B) of the Code; provided,
however, that any such amendment shall not materially reduce the benefits provided to Executive
pursuant to this Agreement without the Executive’s consent.

     18. ASSIGNMENT AND SUCCESSORS. Cadence shall have the right to assign its rights and
obligations under this Agreement to an entity that, directly or indirectly, acquires all or
substantially all of the assets of Cadence. The rights and obligations of Cadence under this
Agreement shall inure to the benefit and shall be binding upon the successors and assigns of
Cadence. Executive shall not have any right to assign his obligations under this Agreement and
shall only be entitled to assign his rights under this Agreement upon his death, solely to the
extent permitted by this Agreement, or as otherwise agreed to in writing by Cadence.

     19. SEVERABILITY. In the event that any part of this Agreement is found to be void or
unenforceable, all other provisions of the Agreement will remain in full force and effect.

     20. GOVERNING LAW. This Agreement will be governed and enforced in accordance with the laws
of the State of California, without regard to its conflict of laws principles.

9

 

EXECUTION OF AGREEMENT

     The parties execute this Agreement to evidence their acceptance of it.

	 	 	 	 	 	 	 

	Dated: 4-28-2011	 	Dated: 4-28-2011	 	 
	 
	 	 	 	 	 	 
	THOMAS A. COOLEY	 	CADENCE DESIGN SYSTEMS, INC.	 	 
	 
	 	 	 	 	 	 
	/s/ Thomas A. Cooley 

	 	By:
	 	/s/ Christina R. Jones
 

Christina R. Jones
	 	 
	 

	 	 	 	Sr. Vice President -	 	 
	 

	 	 	 	Global Human Resources	 	 

10

 

ATTACHMENT 1

RELEASE OF CLAIMS

          1. For valuable consideration, I irrevocably, fully and finally release Cadence, its parent,
subsidiaries, affiliates, directors, officers, agents and employees (“Releasees”) from all causes
of action, claims, suits, demands or other obligations or liabilities, whether known or unknown,
suspected or unsuspected, that I ever had or now have as of the time that I sign this Agreement
which relate to my hiring or employment with the Company, the termination of my employment with the
Company and claims asserted in shareholder derivative actions or shareholder class actions against
the Company and its officers and Board of Directors, to the extent those derivative or class
actions relate to the period during my employment with the Company. The claims released include,
but are not limited to, any claims arising from or related to my employment with Cadence, such as
claims arising under (as amended) Title VII of the Civil Rights Act of 1964, the Civil Rights Act
of 1991, the Age Discrimination in Employment Act of 1974, the Americans with Disabilities Act, the
Equal Pay Act, the Fair Labor Standards Act, the California Fair Employment and Housing Act, the
California Labor Code, the Employee Retirement Income and Security Act of 1974 (except for any
vested right I have to benefits under an ERISA plan), the state and federal Worker Adjustment and
Retraining Notification Act, and the California Business and Professions Code; any other local,
state, federal, or foreign law governing employment; and the common law of contract and tort. In
no event, however, shall any claims, causes of action, suits, demands or other obligations or
liabilities be released pursuant to the foregoing if and to the extent they relate to:

               i. any amounts or benefits which I am or become entitled to receive pursuant to the provisions
of my Executive Transition and Release Agreement with Cadence or pursuant to the provisions
designated in Section 9.9 of my Employment Agreement with Cadence to survive the termination of my
full-time employment;

               ii. claims for workers’ compensation benefits under any of the Company’s workers’ compensation
insurance policies or funds;

               iii. claims related to my COBRA rights;

               iv. any rights that I have or may have to be indemnified by Cadence pursuant to any contract,
statute, or common law principle; and

               v. any other rights or claims that I have or may have that cannot, as a matter of law, be
waived.

     2. I intend that this Release cover all claims described above, whether or not known to me. I
further recognize the risk that, subsequent to the execution of this Release, I may incur loss,
damage or injury which I attribute to the claims encompassed by this Release. I expressly assume
this risk by signing this Release and voluntarily and specifically waive any rights conferred by
California Civil Code section 1542 which provides as follows:

A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if

 

 

known by him or her must have materially affected his or her settlement with the
debtor.

     3. I represent and warrant that there has been no assignment or other transfer of any interest
in any claim by me that is covered by this Release.

     4. I acknowledge that Cadence has given me 21 days in which to consider this Release and
advised me to consult an attorney about it. I further acknowledge that once I execute this
Release, I will have an additional 7 days in which to revoke my acceptance of this Release by means
of a written notice of revocation given to the General Counsel and the executive overseeing Human
Resources. This Release will not be final and effective until the expiration of this revocation
period.

	 	 	 

	Dated: _________________.

	 	 

Print Name
	 
	 	 
	 

	 	 

Sign Name

2

 

ATTACHMENT 2

RELEASE OF CLAIMS

          1. For valuable consideration, I irrevocably, fully and finally release Cadence, its parent,
subsidiaries, affiliates, directors, officers, agents and employees (“Releasees”) from all causes
of action, claims, suits, demands or other obligations or liabilities, whether known or unknown,
suspected or unsuspected, that I ever had or now have as of the time that I sign this Agreement
which relate to my hiring or employment with the Company, the termination of my employment with the
Company and claims asserted in shareholder derivative actions or shareholder class actions against
the Company and its officers and Board of Directors, to the extent those derivative or class
actions relate to the period during my employment with the Company. The claims released include,
but are not limited to, any claims arising from or related to my employment with Cadence, such as
claims arising under (as amended) Title VII of the Civil Rights Act of 1964, the Civil Rights Act
of 1991, the Age Discrimination in Employment Act of 1974, the Americans with Disabilities Act, the
Equal Pay Act, the Fair Labor Standards Act, the California Fair Employment and Housing Act, the
California Labor Code, the Employee Retirement Income and Security Act of 1974 (except for any
vested right I have to benefits under an ERISA plan), the state and federal Worker Adjustment and
Retraining Notification Act, and the California Business and Professions Code; any other local,
state, federal, or foreign law governing employment; and the common law of contract and tort. In
no event, however, shall any claims, causes of action, suits, demands or other obligations or
liabilities be released pursuant to the foregoing if and to the extent they relate to:

               i. any amounts or benefits which I am or become entitled to receive pursuant to the provisions
of my Executive Transition and Release Agreement with Cadence or pursuant to the provisions
designated in Section 9.9 of my Employment Agreement with Cadence to survive the termination of my
full-time employment;

               ii. claims for workers’ compensation benefits under any of the Company’s workers’ compensation
insurance policies or funds;

               iii. claims related to my COBRA rights;

               iv. any rights that I have or may have to be indemnified by Cadence pursuant to any contract,
statute, or common law principle; and

               v. any other rights or claims that I have or may have that cannot, as a matter of law, be
waived.

     2. I intend that this Release cover all claims described above, whether or not known to me. I
further recognize the risk that, subsequent to the execution of this Release, I may incur loss,
damage or injury which I attribute to the claims encompassed by this Release. I expressly assume
this risk by signing this Release and voluntarily and specifically waive any rights conferred by
California Civil Code section 1542 which provides as follows:

A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if

 

 

known by him or her must have materially affected his or her settlement with the
debtor.

     3. I represent and warrant that there has been no assignment or other transfer of any interest
in any claim by me that is covered by this Release.

     4. I acknowledge that Cadence has given me 21 days in which to consider this Release and
advised me to consult an attorney about it. I further acknowledge that once I execute this
Release, I will have an additional 7 days in which to revoke my acceptance of this Release by means
of a written notice of revocation given to the General Counsel and the executive overseeing Human
Resources. This Release will not be final and effective until the expiration of this revocation
period.

	 	 	 

	Dated: _________________.

	 	 

Print Name
	 
	 	 
	 

	 	 

Sign Name

2

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