Document:

Exhibit 10.23.1

 

NON-QUALIFIED STOCK OPTION AGREEMENT
under the

PARAGON SOLUTIONS, INC.

2001 NON-EMPLOYEE DIRECTORS STOCK OPTION PLAN

 

Optionee: [Name]

 

Number Shares Subject to Option:  [Number]

 

Exercise Price per Share:  $[Number]

 

Date of Grant: 
September       , 2001

 

1.                                       Grant of Option. 
Paragon Solutions, Inc. (the “Company”) hereby grants to the Optionee
named above (the “Optionee”), under the Paragon Solutions, Inc. 2001
Non-Employee Directors Stock Option Plan (the “Plan”), a Non-Qualified Stock Option
to purchase, on the terms and conditions set forth in this agreement (this
“Option Agreement”), the number of shares indicated above of the Company’s
$0.001 par value common stock (the “Stock”), at the exercise price per share
set forth above (the “Option”). 
Capitalized terms used herein and not otherwise defined shall have the
meanings assigned such terms in the Plan.

 

2.                                       Vesting of Option. 
The Option is exercisable in full as of the date of the grant.

 

3.                                       Period of Option and Limitations on Right to
Exercise.  The Option will, to the extent not
previously exercised, lapse under the earliest of the following circumstances;
provided, however, that the Committee may, prior to the lapse of the Option
under the circumstances described in paragraphs (b), (c) and (d) below, provide
in writing that the Option will extend until a later date:

 

(a)                                  The Option shall lapse as of 5:00 p.m.,
Eastern Time, on September 1, 2004 (the “Expiration Date”).

 

(b)                                 The Option shall lapse on the date of the
Optionee’s termination of service for any reason other than the Optionee’s
death or Disability.

 

(c)                                  If the Optionee’s employment terminates by
reason of Disability, the Option shall lapse one year after the date of the
Optionee’s termination of employment.

 

(d)                                 If the Optionee dies while employed or
during the one-year period described in subsection (c) above and before the
Option otherwise lapses, the Option shall lapse one year after the date of the
Optionee’s death.  Upon the Optionee’s
death, the Option may be exercised by the Optionee’s beneficiary.

 

If the Optionee or his beneficiary exercises
an Option after termination of service, the Option may be exercised only with
respect to the shares that were otherwise vested on the Optionee’s termination
of service (including vesting by acceleration in accordance with Article 13 of
the Plan).

 

4.                                       Exercise of Option. 
The Option shall be exercised by written notice directed to the
Secretary of the Company at the principal executive offices of the Company, in
substantially the form attached hereto as Exhibit A, or such other form as the
Committee may approve.  If the person
exercising the Option is not the Optionee, such person shall also deliver with
the notice of exercise appropriate proof of his or her right to exercise the Option.  Unless the exercise is a broker-assisted
“cashless exercise” as described below, such written notice shall be
accompanied by full payment in cash, shares of Stock previously acquired by the
Optionee (which shares may be delivered by attestation or actual delivery of
one or more certificates), or any combination thereof, for the number of shares
specified in such written notice; provided, however, that if shares of Stock
are used to pay the exercise price, such shares must have been held by the Optionee
for at least six months.  The Fair
Market Value of the surrendered Stock

 

 

as of the last trading day immediately prior
to the exercise date shall be used in valuing Stock used in payment of the
exercise price.  To the extent permitted
under Regulation T of the Federal Reserve Board, and subject to applicable
securities laws, the Option may be exercised through a broker in a so-called
“cashless exercise” whereby the broker sells the Option shares and delivers
cash sales proceeds to the Company in payment of the exercise price.  In such case, the date of exercise shall be
deemed to be the date on which notice of exercise is received by the Company
and the exercise price shall be delivered to the Company on the settlement
date.

 

Subject to the terms of this Option
Agreement, the Option may be exercised at any time and without regard to any
other option held by the Optionee to purchase stock of the Company.  No fractional shares of Stock shall be
issued upon exercise of the Option.

 

5.                                       Lock-Up Period.  Optionee
hereby agrees that, if so requested by the Company or any representative of the
underwriters (the “Managing Underwriter”) in connection with any registration
of the offering of any securities of the Company under the 1933 Act,
Optionee shall not sell or otherwise transfer any Option Shares or other
securities of the Company during the 180-day period (or such other period
as may be requested in writing by the Managing Underwriter and agreed to in
writing by the Company) (the “Market Standoff Period”) following the effective
date of a registration statement of the Company filed under the
1933 Act.  Such restriction shall
apply only to the first registration statement of the Company to become
effective under the 1933 Act that includes securities to be sold on behalf of
the Company to the public in an underwritten public offering under the 1933
Act.  The Company may impose stop-transfer
instructions with respect to securities subject to the foregoing restrictions
until the end of such Market Standoff Period.

 

6.                                       Withholding. 
The Company has the authority and the right to deduct or withhold, or
require the Optionee to remit to the Company, an amount sufficient to satisfy
federal, state, and local taxes (including the Optionee’s FICA obligation)
required by law to be withheld with respect to any taxable event arising as a
result of the exercise of the Option. 
Such withholding requirement may be satisfied, in whole or in part, at
the election of the Company, by withholding from the Option shares of Stock having
a Fair Market Value on the date of withholding equal to the minimum amount (and
not any greater amount) required to be withheld for tax purposes, all in
accordance with such procedures as the Committee establishes.

 

7.                                       Limitation of Rights. 
The Option does not confer to the Optionee or the Optionee’s personal
representative any rights of a shareholder of the Company unless and until
shares of Stock are in fact issued to such person in connection with the
exercise of the Option.  Nothing in this
Option Agreement shall interfere with or limit in any way the right of the
Company or any Parent or Subsidiary to terminate the Optionee’s service at any
time, nor confer upon the Optionee any right to continue in the service of the
Company or any Parent or Subsidiary.

 

8.                                       Stock Reserve. 
The Company shall at all times during the term of this Option Agreement
reserve and keep available such number of shares of Stock as will be sufficient
to satisfy the requirements of this Option Agreement.

 

9.                                       Optionee’s Covenant. 
Optionee hereby agrees to use his or her best efforts to provide
services to the Company in a workmanlike manner and to promote the Company’s
interests.  In the event the Option
Shares have not been registered under the 1933 Act at the time the Option is
exercised, Optionee shall, if required by the Company, concurrently with the
exercise of all or any portion of the Option, deliver to the Company his or her
Investment Representation Statement in the form attached hereto as Exhibit B.

 

10.                                 Restrictions on Transfer and Pledge. 
The Option may not be pledged, encumbered, or hypothecated to or in
favor of any party other than the Company or a Parent or Subsidiary, or be
subject to any lien, obligation, or liability of the Optionee to any other
party other than the Company or a Parent or Subsidiary.  The Option is not assignable or transferable
by the Optionee other than by will or the laws of descent and distribution or
pursuant to a domestic relations order that would satisfy Section 414(p)(1)(A)
of the Code; provided, however, that the Committee may (but need not) permit
other transfers where the

 

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Committee concludes that such transferability
(i) does not result in accelerated taxation and (ii) is otherwise appropriate
and desirable, taking into account  any
factors deemed relevant, including without limitation, state or federal tax or
securities laws applicable to transferable options.  The Option may be exercised during the lifetime of the Optionee
only by the Optionee or any permitted transferee.

 

11.                                 Restrictions on Issuance of Shares.  If
at any time the Board shall determine in its discretion, that listing,
registration or qualification of the shares of Stock covered by the Option upon
any securities exchange or under any state or federal law, or the consent or
approval of any governmental regulatory body, is necessary or desirable as a
condition to the exercise of the Option, the Option may not be exercised in
whole or in part unless and until such listing, registration, qualification,
consent or approval shall have been effected or obtained free of any conditions
not acceptable to the Board.

 

12.                                 Right of First Refusal. 
Except as provided in Section 12(g) below, before any Option Shares held
by Optionee or any transferee (either, a “Holder”) may be sold or otherwise
transferred (including transfer by gift or operation of law), the Company or
its assignee(s) shall have a right of first refusal to purchase the Option
Shares on the terms and conditions set forth in this Section (the “Right of
First Refusal”).

 

(a)                                  Notice of Proposed Transfer. 
The Holder of the Option Shares shall deliver to the Company a written
notice (the “Notice”) stating (i) the Holder’s bona fide intention to sell or
otherwise transfer such Option Shares, (ii) the name of each proposed purchaser
or other transferee (each a “Proposed Transferee”), (iii) the number of Option
Shares to be transferred to each Proposed Transferee, and (iv) the bona fide
cash price or other consideration for which the Holder proposes to transfer the
Option Shares (the “Offered Price”), and the Holder shall offer the Option
Shares at the Offered Price to the Company or its assignee(s).

 

(b)                                 Exercise of Right of First Refusal.  At
any time within thirty (30) days after receipt of the Notice, the Company
and/or its assignee(s) may, by giving written notice to the Holder (the
“Repurchase Notice”), elect to purchase all, but not less than all, of the
Option Shares proposed to be transferred to any one or more Proposed
Transferees, at the purchase price determine in accordance with subsection (c)
below.

 

(c)                                  Purchase Price. 
The purchase price (“Purchase Price”) for the Option Shares purchased by
the Company or its assignee(s) under this Section shall be the Offered
Price.  If the Offered Price includes
consideration other than cash, the cash equivalent value of the non-cash
consideration shall be determined by the Board of Directors of the Company in
good faith.

 

(d)                                 Payment.  Payment of the Purchase Price
shall be made, at the option of the Company or its assignee(s), in cash (by
check), by cancellation of all or a portion of any outstanding indebtedness of
the Holder to the Company (or, in the case of repurchase by an assignee, to the
assignee), or by any combination thereof, within 30 days after receipt of the
later of the Notice, in the manner and at the times set forth therein.

 

(e)                                  Holder’s Right to Transfer.  If
all of the Option Shares proposed in the Notice to be transferred to a given
Proposed Transferee are not purchased by the Company and/or its assignee(s) as
provided in this Section, then the Holder may sell or otherwise transfer such
Option Shares to that Proposed Transferee at the Offered Price or at a higher
price; provided that such sale or other transfer is consummated within 120 days
after the date of the Notice, that any such sale or other transfer is effected
in accordance with any applicable securities laws, and that the Proposed
Transferee agrees in writing that the provisions of this Section shall continue
to apply to the Option Shares in the hands of such Proposed Transferee.  If the Option Shares described in the Notice
are not transferred to the Proposed Transferee within such period, a new Notice
shall be given to the Company, and the Company and/or its assignees shall again
be offered the Right of First Refusal before any Option Shares held by the
Holder may be sold or otherwise transferred.

 

(f)                                    Exception for Permitted Transfers. 
Notwithstanding the foregoing, the Right of First Refusal shall not
apply to any transfer of any or all of the Option Shares during Optionee’s
lifetime,

 

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or on Optionee’s death by will or the laws of descent and distribution,
to Optionee’s spouse, lineal descendants or antecedents, parents, or siblings,
or to trusts for the benefit of such persons (“Permitted Transferees”);
provided that (i) the transferring Optionee shall give the Corporate Secretary
of the Company at least 10 days’ prior written notice before effecting such
transfer, (ii) the transferee shall receive and hold the Option Shares so
transferred subject to the provisions of this Right of First Refusal and shall
furnish the Company with a written agreement to be bound by and comply with
this Right of First Refusal, if so requested by the Company, and (iii) there
shall be no further transfer of such Option Shares except in accordance with
the terms of this Right of First Refusal, and such transferee shall be treated
as a “Holder” for purposes of this Agreement.

 

(g)                                 Termination of Right of First Refusal. 
The Right of First Refusal shall terminate as to any Option Shares upon
an initial Public Offering of the Company’s Stock.

 

13.                                 Plan Controls. 
The terms contained in the Plan are incorporated into and made a part of
this Option Agreement and this Option Agreement shall be governed by and
construed in accordance with the Plan. 
In the event of any actual or alleged conflict between the provisions of
the Plan and the provisions of this Option Agreement, the provisions of the
Plan shall be controlling and determinative.

 

14.                                 Successors.  This Option Agreement shall be
binding upon any successor of the Company, in accordance with the terms of this
Option Agreement and the Plan.

 

15.                                 Severability.  If
any one or more of the provisions contained in this Option Agreement are
invalid, illegal or unenforceable, the other provisions of this Option
Agreement will be construed and enforced as if the invalid, illegal or
unenforceable provision had never been included.

 

16.                                 Notice.  Notices and communications
under this Option Agreement must be in writing and either personally delivered
or sent by registered or certified United States mail, return receipt
requested, postage prepaid.  Notices to
the Company must be addressed to:

 

Paragon Solutions, Inc.

3625 Brookside Parkway

Suite 300

Alpharetta, Georgia 30022

Attn: Philip Jacobs, Secretary

 

or any other address designated
by the Company in a written notice to the Optionee.  Notices to the Optionee will be directed to the address of the
Optionee then currently on file with the Company, or at any other address given
by the Optionee in a written notice to the Company.

 

17.                                 Tax Consequences. 
Set forth below is a brief summary as of the Date of Grant of some of
the federal tax consequences of exercise of the Option and disposition of the
Option Shares.  THIS SUMMARY IS
NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO
CHANGE.  OPTIONEE SHOULD CONSULT A TAX
ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF THE OPTION SHARES.

 

(a)                                  Exercise of Non-Qualified Stock Option. 
Upon exercise of a non-qualified stock option, Optionee normally will be
treated as having received compensation income (taxable at ordinary income tax
rates) equal to the excess, if any, of the Fair Market Value of the Option
Shares on the date of exercise over the Exercise Price.  The Company will be required to withhold
from Optionee’s compensation or collect from Optionee and pay to the applicable
taxing authorities an amount in cash equal to a percentage of this compensation
income at the time of exercise, and may refuse to honor the exercise and refuse
to deliver Option Shares if such withholding amounts are not delivered at the
time of exercise.

 

(b)                                 Disposition of Shares.  In
the case of a non-qualified stock option, any gain realized on disposition of
the Option Shares will be treated as capital gain, which may be long-term or
short-term depending on the period that the Option Shares were held.

 

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IN WITNESS WHEREOF, Paragon Solutions, Inc.,
acting by and through its duly authorized officers, has caused this Option
Agreement to be executed, and the Optionee has executed this Option Agreement,
all as of the day and year first above written.

 

	
   

  	
  PARAGON SOLUTIONS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OPTIONEE:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Name]

  	
   

  
				

 

5Exhibit
10.24

 

 

September
10, 2003

 

Michael J. Puntoriero

1128 West Oceanfront

Newport Beach, CA 
92611

 

Dear
Mike,

 

This letter sets forth the substance of the
agreement (the “Agreement”) between you and First Consulting Group, Inc.
(“FCG”) regarding your separation of employment.

 

1. Separation.  You will cease to be an officer, director or
employee of FCG or any of its subsidiaries or affiliates (individually, an “FCG
Company” or collectively, the “FCG Companies”) effective September 26, 2003
(the “Separation Date”).   To the extent
you are a director serving on the board of any FCG Company, this Agreement
shall serve as your resignation from such directorships.

 

2. Accrued Salary and Paid Time Off.  On
or after the Separation Date, in conformance with applicable state laws, FCG
will pay you all accrued and unpaid salary, and all accrued and unused paid
time off earned through the Separation Date, subject to standard payroll
deductions and withholdings.  You are entitled
to these payments regardless of whether or not you sign this Agreement.  Unused personal choice holidays are not paid
out.

 

3. Severance Payments.  FCG will pay to you the following amounts as
full consideration for your obligations and covenants under this Agreement and
in full satisfaction of any amount that may be owed to you upon your separation
from FCG under any agreement or arrangement between you and FCG or any other
FCG Company: (a) six months of base salary, or approximately $200,000; and (b)
any bonus earned by you under the FCG bonus plan for third quarter of
2003.  Payment of the amount in clause
(a) above will be paid as a lump sum distribution within ten (10) days after
the later of: (i) the date this signed agreement is received by FCG; (ii) your
Separation Date; or (iii) the date you have returned to FCG all of the FCG
property and equipment in your possession in accordance with Section 13
below.  Payment of the amount in clause
(b) above will be made at the time FCG pays third quarter bonuses to active
employees, which is expected to occur in the first payroll run of November
2003.  All amounts paid under this
paragraph will be less federal, state and other applicable taxes and other
authorized withholdings.

 

 

In
addition, in the event that (i) you have not secured full time employment with
an organization other than FCG; and (ii) you are not in violation of any of the
terms of this Agreement, you will be eligible to receive additional severance
as follows:

 

•                  If you are not employed prior to March 31,
2004, you will receive three additional months of base salary, or approximately
$100,000, less federal, state and other applicable taxes and authorized
withholdings.

 

•                  If you are not employed prior June 30, 2004,
you will be provided three additional months of base salary, or approximately
$100,000, less federal, state and other applicable taxes and authorized
withholdings.

 

The additional severance
benefits set forth in the preceding paragraph and bullets shall no longer be
available once you are employed full time with an organization other than FCG,
even if you secure employment and then are subsequently not employed by such
non-FCG organization on the dates above. 
For example, if you secure employment in January 2004 and then are not
employed as of March 31, 2004, you will not be eligible to receive any
additional severance under this Agreement.

 

For purposes of this
Agreement, “employed” or “employment” shall mean full time employment as an employee,
consultant or independent contractor. 
For purposes of clarification, “full time” shall not include temporary
or interim positions where you may be engaged full time in terms of working
hours, but not in terms of expected length of service (i.e., a one month
consulting engagement that is 20 hours or more per week but is not a full time
position as an employee or an extended period of full time service as a
consultant or contractor for you with that non-FCG organization).

 

You must return this
signed Agreement within three (3) weeks of the Separation Date in order to be
eligible to receive the severance benefits outlined above. All severance payments under this Agreement
will be by manual checks.

 

You
will also receive an Executive Outplacement Package of four (4) months of
assistance with Right Management Consultants. 
Information in regard to this assistance will be sent to your home and a
representative from Right Management Consultants will be contacting you
shortly.  It is your option to begin the
four months now or wait until up to 90 days after your Separation Date.

 

4. Health
Insurance.  According to company policy, your FCG group
health insurance benefits will be cancelled effective with the Separation Date.
After the Separation Date, you will be eligible to continue your group health
insurance benefits at your sole cost and expense (except as noted below)  to the extent provided by federal COBRA
law, state insurance laws and by FCG’s current group health insurance policies.
You may do this by making the COBRA election and submitting your premiums
directly to our COBRA administrator in the Long Beach office.  A package of information will be sent to you
via mail within 21 days of the Separation Date detailing the process

 

 

and
premium amounts for COBRA coverage, including the deadline by which you must
elect COBRA coverage. Should you elect COBRA within the time requirements,
coverage will be effective retroactive to the Separation Date.

 

Should you elect to continue your group health
insurance benefits through COBRA, and subject to your execution of this
Agreement, FCG will pay your COBRA premiums until the earlier of (1) March 31, 2004; or (2) the date you
become eligible for group health insurance benefits through a new
employer.  You agree to notify FCG
promptly upon obtaining new employment.  Although FCG will pay the cost of your COBRA
until the date specified above, your coverage will not be reinstated until you
have received, signed and returned the COBRA election form.  At that time, the carriers will be notified
of your election and your coverage will be reinstated.  In the meantime, if you should require any
medical/dental services, you will need to pay for those services and submit
your receipts, with a claim form, to the insurance company for reimbursement
after you have signed and returned your COBRA election form.

 

In
addition, if you have not secured any employment (as defined in Section 3
above) with an organization other than FCG and you are not in violation of any
of the terms of this Agreement, you will be provided additional COBRA premium
support based on the following schedule:

 

•                  If you are not employed prior to March 31,
2004, you will be provided an additional three months of company paid COBRA
coverage premiums.

 

•                  If you are not employed prior to June 30,
2004, you will be provided an additional three months of company paid COBRA
coverage premiums.

 

Your
eligibility to receive this additional three or six months of COBRA coverage is
the same as your eligibility to receive additional severance as set forth in
Section 3 above.

 

5.
Flexible Spending Accounts. Coverage under Flexible Spending Accounts ceases on the Separation
Date, subject to your ability to continue your Health Care Flexible Spending
Account through the balance of the year on an after-tax basis. Additional
details are provided in the COBRA notification.

 

6. Life
Insurance. Your FCG
group life insurance coverage will end effective on the Separation Date.  If you would like to convert your coverage,
please contact the Benefits Service Center within 30 days of the Separation
Date at 800-471-8853, ext. 2363.

 

7.
Disability/Long Term Care Coverage. Coverage under the disability and Long Term Care programs will
terminate effective on the Separation Date. 
If you would like to convert your coverage(s), please contact the
Benefits Service Center within 30 days of the Separation Date at the number
above.

 

 

8.
Associate Stock Purchase Plan (ASPP).   Participation in the ASPP will
terminate effective with the Separation Date. 
Year-to-date deductions that have not already been used to purchase
stock will be refunded within two pay periods after the Separation Date.  Stock already purchased will remain in your
personal E*TRADE account. You should contact E*TRADE directly with any
questions regarding your account.

 

9. Stock Options.  Any
options to purchase FCG stock that you hold will cease to vest on the
Separation Date and all of your unvested stock options will be cancelled.  You will have 90 days following the
Separation Date to exercise any vested options you received under FCG’s option
plans. A closing statement containing information on your vested options will
be mailed to your home from the FCG Corporate Affairs department.  Also, status of your stock options is
available online through E*TRADE at www.optionslink.com.

 

10. Other
Benefits.  You and FCG hereby agree and acknowledge the
following:

 

(a) SERP
and 401(k).  As of the Separation Date, you no longer may
contribute funds to FCG’s 401(k) plan or the Supplemental Executive Retirement
Plan (“SERP”), nor will FCG contribute any matching or other funds to such
plans on your behalf.   No payroll
deductions for pre-tax contributions will be taken from your severance
pay.    Nothing in this Agreement
terminates or otherwise affects any right or interest you may have in vested
funds and assets under FCG’s 401(k), ASOP and SERP plans.

 

You will receive detailed information from New York Life regarding the
distribution of your contributions and any vested funds from the 401(k) and
ASOP account.  As you will read in that
material, you should wait until the middle of the month after the month
in which your last 401(k) deduction is made before applying for a
distribution.  Contact New York Life
directly at (800) 294-3575 regarding any questions, including account rollover
transactions.  You may also visit their
website at www.bcomplete.com.  If you
currently have an outstanding loan, you may maximize the tax deferral of this
benefit by electing to repay the loan prior to taking a distribution from the
Plan.  If you choose not to, the
outstanding loan balance will be defaulted and treated as a taxable
distribution to you.  You may coordinate
the prepayment of the outstanding loan balance with New York Life.

 

You will receive detailed information from Human Resources regarding the
distribution of your contributions and any vested funds from the SERP.  You may contact Human Resources if you have
any questions.

 

(b) Other Amounts.  You
acknowledge that, except as expressly provided in this Agreement, you will not
receive any additional compensation, bonus, severance or benefits after the
Separation Date.

 

 

11.
Unemployment Benefits.
Because of the nature of your separation with FCG, you may be eligible for
unemployment insurance benefits. 
Contact your local employment commission office for information
regarding unemployment compensation.

 

12.
Expense Reimbursement.
Any outstanding unreimbursed expenses will be paid based on the submission of
your final Time and Expense Report and the appropriate documentation. It is
acknowledged that you may receive cellular phone, long distance and other
business related charges after the Separation Date; please submit those
expenses for reimbursement as they occur to FCG c/o Jan Blue in the Long Beach,
California office.

 

13. Return
of FCG Property.  Except as noted below, on or before the
Separation Date, you agree to return to FCG all FCG Company documents (and all
copies thereof) and other FCG Company property that you have had in your
possession at any time, including (i) any materials of any kind that contain or
embody any proprietary or confidential information of an FCG Company (and all
reproductions thereof), and (ii) computers and other electronic devices,
cellular phones, credit cards, phone cards, entry cards, identification badges
and keys. If you have a cell phone and have had it for at least 3 months, it is
yours to keep.  Any firm-provided
service will be cancelled and you will need to establish your own service.  You will receive a Federal Express pack,
with a pre-paid shipping label, to ship your equipment back to Long Beach.
Please return items to the FCG Help Desk in Long Beach as soon as practicable,
at least within 7 days.

 

You
will be permitted to keep your laptop computer at no cost to you, except that
the value of the computer will be added to your taxable wages and appropriate
state and federal taxes will be deducted. 
The applications software on your laptop is licensed for FCG use only
and it is your responsibility to delete any applications software from the
computer with the exception of the operating system.

 

14. Vice
President Agreement; Indemnity Agreement. You hereby acknowledge and agree to your
continuing obligations, both during and after your employment with FCG, to
abide by the terms of that certain Vice President Agreement between you and FCG
dated January 1, 2003.  The terms of
that certain Indemnity Agreement between you and FCG dated January 13, 2003
shall remain in full force and effect and you are entitled to indemnification
by FCG in accordance with and subject to the terms of FCG’s charter documents
and the Indemnity Agreement.

 

15.
Confidentiality.  The provisions of this Agreement will be
held in strictest confidence by you and FCG and will not be publicized or
disclosed in any manner whatsoever; provided, however, that:  (a) you may
disclose this Agreement to your immediate family; (b)
the parties may disclose this Agreement in confidence to their respective
attorneys, accountants, auditors, tax preparers, and financial advisors; (c) FCG may disclose this Agreement as necessary to
fulfill standard or legally required corporate reporting or disclosure
requirements; and (d) the parties may disclose
this

 

 

Agreement
insofar as such disclosure may be necessary to enforce its terms or as
otherwise required by law.  In
particular, and without limitation, you agree not to disclose the terms of this
Agreement to any current or former FCG employee.

 

16.
Nondisparagement.   Both you and FCG agree not to
disparage the other party, and the other party’s officers, directors,
employees, shareholders and agents, in any manner likely to be harmful to them
or their business, business reputation or personal reputation; provided that
both you and FCG will respond accurately and fully to any question, inquiry or
request for information when required by legal process.

 

17.
Release of the FCG Companies.   You hereby release, acquit and
forever discharge each of the FCG Companies and their respective parents and
subsidiaries, and each of their respective officers, directors, agents,
servants, employees, attorneys, shareholders, successors, assigns and
affiliates, of and from any and all claims, liabilities, demands, causes of
action, costs, expenses, attorneys’ fees, damages, indemnities and obligations
of every kind and nature, in law, equity, or otherwise, known and unknown,
suspected and unsuspected, disclosed and undisclosed, arising out of or in any
way related to agreements, events, acts or conduct at any time prior to and
including the Effective Date of this Agreement, including but not limited to:
all such claims and demands directly or indirectly arising out of or in any way
connected with your employment with any FCG Company or the termination of that
employment; claims or demands related to salary, bonuses, commissions, stock,
stock options or any other ownership interests in any FCG Company, vacation
pay, fringe benefits, expense reimbursements, severance pay or any other form
of compensation; claims arising from any employment agreement or arrangement
between you and any FCG Company; claims pursuant to any federal, state or local
law, statute or cause of action including, but not limited to, the federal
Civil Rights Act of 1964, as amended; the federal Americans with Disabilities
Act of 1990; the federal Age Discrimination in Employment Act of 1967, as amended
(“ADEA”); the California Fair Employment and Housing Act, as amended; tort law;
contract law; wrongful discharge; discrimination; harassment; fraud;
defamation; emotional distress; and breach of the implied covenant of good
faith and fair dealing.  You further
agree not to initiate or continue any proceeding based upon the claims released
herein.  Notwithstanding the foregoing,
your release of the FCG Companies in accordance with this Section shall not be
deemed to release (i) any of the FCG Companies’ duties or obligations under
this Agreement, including, but not limited to, FCG’s indemnification
obligations to you described in Section 14 of this Agreement; or (ii) any of
your rights as a stockholder of FCG.

 

18. ADEA Waiver.   You
acknowledge that you are knowingly and voluntarily waiving and releasing any
rights you may have under the ADEA, as amended.  You also acknowledge that the consideration given for the waiver
and release in the preceding paragraph hereof is in addition to anything of
value to which you were already entitled. 
You further acknowledge that you have been advised by this writing, as
required by the ADEA, that: 
(a) your waiver and release do not apply to any rights or

 

 

claims
that may arise after the execution date of this Agreement; (b) you have been
advised hereby that you have the right to consult with an attorney prior to
executing this Agreement; (c) you have twenty-one (21) days to consider this
Agreement (although you may choose to voluntarily execute this Agreement earlier);
(d) you have seven (7) days following the execution of this Agreement by the
parties to revoke the Agreement; and (e) this Agreement will not be effective
until the date upon which the revocation period has expired, which will be the
eighth day after this Agreement is executed by you, provided that FCG has also
executed this Agreement by that date (“Effective Date”).

 

19. Section 1542 Waiver.   In
giving the above release, which includes claims which may be unknown to you at
present, you acknowledge that you have read and understand Section 1542 of the
California Civil Code which reads as follows: 
“A
general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which if known
by him must have materially affected his settlement with the debtor.”  You hereby expressly waive and relinquish
all rights and benefits under that section and any law of any jurisdiction of
similar effect with respect to your release of any unknown or unsuspected
claims you may have against an FCG Company.

 

20.
Indemnification and Attorneys’ Fees.  You understand and agree that
if you hereafter commence, join in, or in any manner seek relief through any
lawsuit, charge or complaint with any court, administrative agency,
governmental authority or otherwise in any matter arising out of, based upon,
or relating to the claims released in this Agreement, then you will pay FCG in
addition to any other expenses, costs or damages caused to FCG thereby, all FCG’s
attorneys’ fees incurred in defending or otherwise responding to such lawsuit,
charge, or complaint.  This section will
not apply to any claim brought by you under the ADEA or to challenge the
validity of the waiver in this Agreement of any such claim or any claim to
enforce FCG’s obligations hereunder or any rights you may have as an FCG
stockholder.

 

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

 

 

We appreciate your service to FCG and we wish you all the best in
wherever your future endeavors may take you.

 

If this Agreement is acceptable to you, please sign below and return the
original to Jan Blue at First Consulting Group, Inc., 111 West Ocean Boulevard,
10th Floor, Long Beach, California 90802.

 

Sincerely,

 

First
Consulting Group, Inc.

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Luther Nussbaum

  	
  Date

  
	
   

  	
  Chairman/CEO

  	
   

  
	
   

  
	
   

  
	
  Agreed:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Michael J. Puntoriero

  	
  Date

  
	
   

  
	
  cc:

  	
  Jan Blue, Vice President

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