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Exhibit 10.7    
  

 
 

EMPLOYMENT AGREEMENT    
  

        This Employment Agreement ("Agreement") is entered into effective as of November 15, 2002, by and between United Surgical Partners
International, Inc., a Delaware corporation ("USPI"), and William H. Wilcox ("Employee"), with reference to the following facts: 

R E C I T A L S  

        A.    USPI desires to employ Employee in the capacities and on the terms and conditions hereinafter set forth and Employee is willing to
serve in such
capacities and on such terms and conditions. 

        B.    This Agreement shall replace any and all existing employment agreements and arrangements between USPI and Employee as of
November 15, 2002. 

        NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants contained herein, USPI and Employee mutually agree as
follows: 

A G R E E M E N T  

         1.    Employment.    USPI hereby employs Employee as the President of USPI.

        2.    Duties.    Employee shall devote substantially all of his working time,
energies and
skills to USPI's business. Employee shall report to the Chief Executive Officer of USPI and shall have such duties, responsibilities and authority as are set forth in the Bylaws of USPI for the
position of President. Employee agrees to serve USPI diligently and to the best of his ability. 

        3.    Compensation.    

        (a)    Base Salary.    USPI shall pay Employee a Base Salary ("Base Salary") at a rate of
$415,000 per year. In addition, the Board of Directors of USPI shall consider granting increases in such salary based on Employee's performance and the growth and/or profitability of USPI, but it
shall have no obligation to grant any such increases in compensation. Base Salary shall be payable in equal semi-monthly installments on the 15th day and the last working
date of the month, or at such other times and in such installments as may be agreed upon between USPI and Employee. All payments shall be subject to the deduction of payroll taxes and similar
assessments as required by law. 

        (b)    Performance Bonuses.    In addition to the Base Salary, Employee shall be eligible to
receive bonus compensation of up to 100% of the Base Salary based on such performance goals and criteria as the Board of Directors of USPI shall, from time to time, determine. 

        4.    Expenses and Benefits.    USPI agrees to provide Employee with the following
benefits: 

        (a)    Expense Reimbursements.    Employee is authorized to incur reasonable expenses in
connection with the business of USPI, including expenses for entertainment, travel and similar matters. USPI will reimburse Employee for such expenses upon presentation by Employee of such
documentation as USPI shall from time to time require. 

        (b)    Office Services.    USPI will provide Employee with an administrative assistant of his
choice and reasonable office space and services. 

        (c)    Insurance.    Major medical health insurance and disability insurance as currently in
place (as the same may be modified from time to time by USPI for its senior executives). 

        (d)    Employee Benefit Plans.    Participation in any other employee benefit plans now
existing or hereafter adopted by USPI for its employees. 

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        (e)    Other.    Such items and benefits as USPI shall, from time to time, consider necessary
or appropriate to assist Employee in the performance of his duties. 

        (f)    Vacations.    Employee shall be entitled (in addition to the usual public holidays) to
a paid vacation of an aggregate of five weeks in each calendar year. 

        5.    Term; Severance.    The term of this Agreement shall be from the date of this
Agreement
to November 14, 2004, and shall thereafter be automatically renewed for successive two year terms; provided, however, that either party may terminate this Agreement at any time upon at least
90 days prior written notice. In the event of such termination by USPI, Employee shall be entitled to severance pay based on his Base Salary at the time of termination, plus a bonus (payable
monthly on a pro rata basis) at a rate equal to the average annual bonuses earned by Employee for the two calendar years preceding the date of notice of termination, for a period of 24 months
following termination. Such severance pay shall be payable in monthly installments and USPI shall continue the benefits set forth in Sections 4(b) and (c) for the period during which such
severance payments are to be made. In addition, this Agreement shall terminate as provided for in Section 7 or upon the death of Employee, and no severance pay shall be due in the event of such
a termination. 

        6.    Disability.    

        (a)  In
the event that Employee becomes Permanently Disabled (as hereinafter defined) during the term of this Agreement, Employee shall continue in the employ of USPI but his
compensation hereunder shall be reduced to three-fourths of the Base Salary then in effect as set forth in Section 3(a), commencing upon the determination of Employee's Permanent Disability and
continuing thereafter until the first to occur of (i) 24 months or (ii) the death of Employee; and during such period of time, Employee shall not be entitled to payment of
expenses or benefits specified in Section 4 (except for reimbursement of expenses incurred by Employee prior to becoming Permanently Disabled), except that USPI shall continue to provide
Employee with the insurance benefits specified in Section 4(c). The obligation of USPI for continuation of three-fourths of Employee's Base Salary shall be net of payments to Employee from the
disability insurance referred to in Section 4(c). 

        For
purposes of this Agreement, the terms "Permanent Disability" or "Permanently Disabled" shall mean three months of substantially continuous disability. Disability shall be deemed
"substantially continuous" if, as a practical matter, Employee, by reason of his mental or physical health, is unable to sustain reasonably long periods of substantial performance of his duties.
Frequent long illnesses, though different from the preceding illness and though separated by relatively short periods of performance, shall be deemed to be "substantially continuous." Disability shall
be determined in good faith by the
Board of Directors, whose decision shall be final and binding upon Employee. Employee hereby consents to medical examinations by such physicians and medical consultants as USPI shall, from time to
time, require. 

        7.    Termination by USPI for Cause.    USPI shall have the right to terminate
Employee's
employment under this Agreement for "Cause" by an affirmative vote to so terminate by not less than 75% of the members of USPI's Board of Directors, in which event no compensation shall be paid or
other benefits furnished to Employee after termination for Cause. Termination for Cause shall be effective immediately upon notice sent or given to Employee. For purposes of this Agreement, the term
"Cause" shall mean and be strictly limited to: (a) indictment for a crime constituting a felony under state or federal law; (b) conviction of a crime constituting a misdemeanor and
involving an act of moral turpitude, including without limiation fraud, embezzlement and use of illegal drugs; (c) commission of any material act of dishonesty against USPI; or
(d) willful and material breach of this Agreement by Employee. 

        8.    Non-Competition.    Employee recognizes and understands that in performing
the responsibilities of his employment, he will occupy a position of fiduciary trust and confidence, pursuant to which he 

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will develop and acquire experience and knowledge with respect to USPI's business. It is the expressed intent and agreement of Employee and USPI that such knowledge and experience shall be used
exclusively in the furtherance of the interests of USPI and not in any manner which would be detrimental to USPI's interests. Employee further understands and agrees that USPI conducts its business
within a specialized market segment throughout the United States and in portions of Europe, and that it would be detrimental to the interests of USPI if Employee used the knowledge and experience
which he currently possesses or which he acquires pursuant to this employment hereunder for the purpose of directly or indirectly competing with USPI, or for the purpose of aiding other persons or
entities in so competing with USPI. Employee therefore agrees that so long as he is employed by USPI and, if this Agreement is terminated by USPI pursuant to Section 5, for an additional period
equal to the shorter of one year following termination or for the period of time Employee is receiving a salary or severance payments from USPI, unless Employee first secures the written consent of
USPI, Employee will not directly or indirectly invest, engage or participate in or become employed by any entity in direct or indirect competition with USPI's business, which shall include the
ownership and/or operation of outpatient surgical centers and surgical specialty hospitals in the United States and the ownership and/or operation of hospitals in the countries in Europe in which USPI
owns or operates hospitals as of the date of termination. These non-competition provisions shall not be construed to prohibit Employee from being employed in the health care industry
during the applicable period, but rather to permit him to be so employed so long as such employment does not involve Employee's direct or indirect participation in a business which is the same or
similar to USPI's business (as defined above). In the event that the provisions of this Section 8 should ever be deemed to exceed the time or geographic limitations permitted by applicable
laws, then such provisions shall be reformed to the maximum time or geographic limitations permitted by applicable law. 

        9.    Stock Options.    In the event that (a) USPI elects to terminate this
Agreement
pursuant to Section 5, (b) there is a "Change of Control Event" (as defined below) or (c) USPI breaches this Agreement by termination of Employee without the notice required under
Section 5 or without Cause under Section 7, then in each such event, all USPI stock options held by Employee and all restricted stock awards made
to him by USPI (whether issued subject to forfeiture or to be issued when and if they become vested) shall thereupon automatically be amended so as to (i) cause to vest, immediately prior to
the date of such Change in Control Event or such termination of employment, all then unvested stock options and restricted stock awards, and (ii) provide Employee 90 days to exercise
such options (or such greater period as may be provided by the terms of such options). For purposes of the foregoing, the term "Change of Control Event" shall mean (A) a consolidation or merger
of USPI with or into any other corporation (other than a merger which will result in the voting capital stock of USPI outstanding immediately before the effective date of such consolidation or merger
being converted into more than 50% of the voting capital stock of the surviving entity outstanding immediately after such consolidation or merger), (B) a sale of all or substantially all of the
properties and assets of the Company as an entirety in a single transaction or in a series or related transactions to any other "person" or (C) the acquisition of "beneficial ownership" by any
"person" or "group" (other than Welsh, Carson, Anderson & Stowe VII, L.P. or its affiliates) of voting stock of the Company representing more than 50% of the voting power of all outstanding
shares of such voting stock, whether by way of merger of consolidation or otherwise. As used herein, (x) the terms "person" and "group" shall have the meanings set forth in
Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), whether or not applicable, (y) the term "beneficial owner" shall have the meaning set forth in
Rules 13d-3 and 13d-5 under the Exchange Act, whether or not applicable, except that a person shall be deemed to have "beneficial ownership" of all shares that any such
person has the right to acquire, whether such right is exercisable immediately or only after the passage of time or upon the occurrence of certain events, and (z) any "person" or "group" will
be deemed to beneficially own any voting stock so long as such person or group beneficially owns, directly or indirectly, in the aggregate a majority of the voting stock of a registered holder of such
voting stock. 

        10.    General Provisions.    

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        (a)    Notices.    All notices required or permitted by this Agreement shall be in writing and
may be delivered in person or sent by regular, registered or certified mail or United States Postal Service Express Mail, with postage prepaid, or by other courier service, or by facsimile
transmission, and shall be deemed sufficiently given if served in the manner specified in this Section 10(a). The addresses and facsimile numbers set forth below shall be the parties addressed
and facsimile numbers for purposes for purposes of delivery or mailing of notices: 

	 	 	If to USPI:	 	c/o United Surgical Partners International, Inc.

15305 Dallas Parkway, Suite 1600

Addison, Texas 75001

Attention: Donald E. Steen

                Chief Executive Officer

Fax No.: (972) 267-0084
	

 	
 	

If to Employee:	
 	

William H. Wilcox

9726 Rockbrook Drive

Dallas, Texas 75220

Fax No.: (972)             

The
parties may change addresses and facsimile numbers noted above through written notice in compliance with this Section 10(a). Any notice sent by registered or certified mail, return receipt
requested, shall be deemed given when actually received by the addressee, as shown on the receipt card which must be signed by a representative of the addressee. If sent by regular mail, the notice
shall be deemed given after the notice is addressed, mailed with postage prepaid and when actually received by the addressee. Notices delivered by United States Express Mail or other courier service
shall be deemed given when actually received by the addressee as shown by the signature of an authorized representative of the addressee on the log or other documentation maintained by the United
States Postal Service or courier to show proof of delivery. If any notice is transmitted by facsimile transmission or similar means, the notice shall be deemed served or delivered upon telephone
confirmation of receipt of the transmission. 

        (b)    Choice of Law.    This Agreement shall be governed by and construed in accordance with
the laws of the State of Texas, excluding principles of conflict of laws. 

        (c)    Integration; Modification and Waiver.    This Agreement constitutes the entire
understanding of the parties hereto relating to the subject matter hereof, supersedes any and all other agreements, whether oral or in writing, between the parties hereto and their affiliates with
respect to the employment of Employee from and after the date hereof, and contains all covenants and agreements between the parties hereto relating to such employment in any manner whatsoever;
provided, however, that except as expressly provided herein, this Agreement shall not affect any stock option agreements, indemnity agreements or agreements relating to Employee's purchase or
ownership of USPI securities to which Employee is now or hereafter a party or the rights of the parties under Employee's prior Employment Agreement, dated as of January 1, 2001, that arose
prior to the date of this Agreement. This Agreement shall not be amended, modified or revised in any respect, except by a writing signed by USPI and Employee. No waiver of any of the provisions of
this Agreement shall be deemed or shall constitute a waiver of any other provision, whether or not similar, and no waiver shall constitute a continuing waiver. No waiver shall be binding unless
executed in writing by the party making the waiver. 

        (d)    Severability.    If any provision of this Agreement shall be determined by a court or
governmental agency of competent jurisdiction to be invalid, illegal or unenforceable, such invalidity, illegality or unenforceability shall not affect the remainder of this Agreement, which shall
remain in full force and effect and be enforced in accordance with its remaining enforceable terms. 

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        (e)    Assignment.    Because of the personal nature of the services to be rendered hereunder,
the obligations of Employee under this Agreement may not be delegated or assigned in whole or in part without the prior written consent of USPI (which consent may be withheld in its sole discretion).
However, subject to the foregoing limitation, this Agreement shall be binding upon, and shall insure to the benefit of, the parties hereto and their respective heirs, devisees, executors,
administrators, trustees, legal representatives, successors, transferees and assigns. 

        (f)    Attorneys' Fees.    In any action or proceeding at law or in equity, including but not
limited to arbitration, brought to enforce or construe any provisions or rights under this Agreement, the unsuccessful party or parties to such litigation or arbitration, as determined by the
appropriate court or arbitrator pursuant to a final judgment or decree, shall pay the successful party or parties all costs, expenses and reasonable attorneys' fees incurred by such successful party
or parties (including but not limited to such costs, expenses and fees in connection with any appeals) and, if such successful party or parties shall recover judgment in any such action or proceeding,
such costs, expenses and attorneys' fees shall be included as part of such judgment. 

        (g)    Survival of Certain Provisions.    The provisions of Sections 4(a) (as to expenses
incurred prior to termination), 5, 8 and 9 shall survive the expiration or other termination of this Agreement. 

        (h)    Headings and Captions.    Headings and captions are included in this Agreement for
purposes of convenience only and are not a part of this Agreement. 

        (i)    Miscellaneous.    Any term used in the plural shall refer to all members of the
relevant class and any term used in the singular shall refer to any one or more of the members of the relevant class. References in this Agreement to articles, sections, paragraphs and exhibits are to
articles, sections, paragraphs and exhibits to this Agreement. The terms "herein," "hereof," "hereto," "hereunder" and other terms similar to such terms refer to this Agreement as a whole and not
merely to the specific article, section, paragraph or clause where such terms may appear. 

        (j)    Counterparts and Facsimile Signatures.    Separate copies of this Agreement may be
signed by the parties hereto, with the same effect as though all of the parties had signed one copy of this Agreement. Signatures transmitted by facsimile shall be accepted as original signatures. 

        IN WITNESS WHEREOF, the undersigned have duly executed this Employment Agreement as of the date first written above. 

	USPI:	 	UNITED SURGICAL PARTNERS INTERNATIONAL, INC.
	    	 	 	 
	

 	
 	

By:	

/s/  DONALD E. STEEN      
 Donald E. Steen

Chief Executive Officer
	
EMPLOYEE:	
 	

 	

/s/  WILLIAM H. WILCOX      
 William H. Wilcox

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QuickLinks

Exhibit 10.7

EMPLOYMENT AGREEMENT<Page>

                                                                   EXHIBIT 10.17

July 15, 2002

Thomas J. Walters
640 North LaSalle Suite 295
Chicago, IL 60610

Dear Thomas:

     This letter will confirm our mutual agreement regarding the terms and
conditions of your separation from the employment of Chart House Enterprises,
Inc. ("Company"), effective August 9, 2002. In consideration for mutual promises
and conditions contained in this letter and the attached Waiver and Release
Agreement (the "Release Agreement, Exhibit B"), the receipt and sufficiency of
which is hereby expressly acknowledged by the parties, the Company shall provide
you with the following:

     1.   SEVERANCE COMPENSATION SCHEDULE. Severance compensation in the amount
of fifty-two weeks base pay and fifty-two weeks supplemental pay less applicable
federal, state and local taxes, will be paid to you upon your execution of this
letter and the Separation Agreement, and your completion of the other promises
you have made in this letter. All severance compensation paid pursuant to the
terms herein shall be paid in accordance with the Company's standard payroll
procedures and shall commence on the regularly scheduled payroll payment date
immediately following your execution of this letter agreement, the Release
Agreement and adherence to the various conditions set forth below. Except as
expressly set forth herein, the foregoing severance compensation is in lieu of
any other Company compensation or other money which may be payable to you and
shall not be further modified absent with written consent of the Company's
severance Pay plan Committee. Furthermore, should you accept employment either
directly or indirectly with Landry's Restaurants, Inc., or any subsidiary or
affiliate thereof within two years of the execution of this agreement, at the
Company's option, you shall be obligated upon demand to repay to the Company all
base and supplemental severance pay which has been paid to you.

     2.   FINAL PAYCHECK. A final paycheck for services rendered through
August 9, 2002, less applicable federal, state and local taxes. Your final
paycheck will include all of your accrued but unused vacation pay.

     You promise to do the following:

     1.   WAIVER AND RELEASE AGREEMENT. For consideration of signing the Waiver
and Release Agreement, you will receive ten (10) dollars. Upon signing, you will
deliver the Waiver and Release Agreement to us. You are free to have the Waiver
and Release Agreement reviewed by counsel if you wish. You may have up to 45
days for this purpose. Pursuant to federal law, there will be a seven-day
waiting period following your signature and delivery of the Waiver and Release
Agreement to us. Your severance compensation will be paid out at that time,
assuming that you have fulfilled your other promises in this letter.

     2    NON-SOLICITATION AGREEMENT. In addition, you will be required to sign
the attached Non- Solicitation Agreement. Please enclose the Non-Solicitation
Agreement when you return the signed Waiver and Release Agreement.

     3.   RETURN OF COMPANY PROPERTY. On or before August 9, 2002 you will
deliver all Company property whatsoever which is in your custody or under your
control, including by way of example, all keys, identification cards, business
cards, credit cards and Company documents. A list of items, which are considered
to be Company Property, is attached to this letter as Exhibit A.

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     4.   TRAVEL AND EXPENSE REPORTS. On or before August 9, 2002, you will
submit to the Company all travel and entertainment expense reports relating to
any Company business expenses you have incurred. All such reports should be
completed in accordance with Company Policy. You will be personally responsible
for any dishonored amounts. You will not be reimbursed for any charges related
to Company business, which you have incurred on your Company credit card, but
rather, you should deliver the Company credit card statement to the Company for
payment as soon as it is received by you. If you have incurred any personal
charges on the Company credit card, such amounts will be deducted from your
severance. If you do not submit a travel and entertainment expense report by the
above date for all charges outstanding on your Company credit card, the charges
will be presumed to be personal and will be deducted from your severance.

     In addition, you and the Company acknowledge the following:

     1.   MEDICAL INSURANCE. If you are a participant in the Company's group
insurance program, after the Effective Date of your termination, the Company
will no longer pay any portion of the cost related to your participation in the
Company group health insurance plan. You have the option under federal COBRA law
to remain covered under the Company group health insurance plan for up to 18
months following your separation from the Company, at your expense. If elected,
COBRA coverage begins the day after termination. Even though you have 60 days
from date of termination to elect coverage, once elected, you must pay premium
from date coverage begins. Then, you have 45 days from date of election to make
the first payment. The monthly rate is as follows:

                              Self     Self+1   Family
                    -   EPO - 251.91 / 453.44 / 629.77
                    -   PPO - 296.36 / 533.46 / 740.91

You may not change levels of coverage, but you may drop dependents. Upon
termination Plan Handlers will mail to your home all information related to
COBRA Insurance

     2.   STOCK OPTIONS. If you have any stock options under any of the Company
stock option plans, you will receive a separate communication detailing the
status of your stock options.

     3.   401(k) PLAN. If you are a participant in the Company's 401(k) Plan,
your account may be distributed to you in accordance with normal practices and
procedures. The amount distributed to you will be subject to income tax unless
you arrange for a transfer by the Plan Trustee to another qualified retirement
plan, such as an IRA. The Benefits Department will provide further information.

     Please acknowledge your agreement with the terms of this letter agreement
by signing below and by executing the attached Release Agreement in the spaces
provided therein.

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     We wish you the best of luck in your future endeavors.

                              Sincerely,

                              /s/ KENNETH R. POSNER
                              ------------------------
                              Kenneth R. Posner
                              Chief Financial Officer and President

I ACKNOWLEDGED AND AGREED TO THIS 12th DAY OF AUGUST 2002.

/s/ THOMAS J. WALTERS
---------------------------
Thomas J. Walters

                                                                       EXHIBIT A

                            LIST OF COMPANY PROPERTY

(Please X to indicate you have returned such items to the company, or indicate
"N/A" if not applicable.)

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/ /  Cards - Business cards
/X/  Cards - Company credit cards
/ /  Cards - Employee identification card
/X/  Cards - Phone calling cards
/ /  Cards - Restaurant inspection/discount cards
/ /  Cards - Security Access Cards
/ /  Company documents - stationary
/ /  Company documents - personnel files for any employees supervised
/ /  Company documents - prep manuals
/ /  Company documents - resource materials
/ /  Company documents - project files
/ /  Company documents - all other books, manuals, paperwork or computer files
     related to the Company's business, which were received or generated during
     the course of employment
/ /  Equipment - Cellular Phone
/ /  Equipment - Fax Machine
/ /  Equipment - Computer (laptop and/or desk computer), monitor, peripherals
/ /  Equipment - Micro-cassette recorder; video/audio recording devices
/ /  Equipment - Pager
/ /  Equipment - Phone
/ /  Unissued Gift Certificates
/ /  Gifts or samples received from vendors
/ /  Keys
/ /  Office furniture, equipment, decor and artwork
/ /  Phone Line for Phone Number (____) _______________
/ /  Phone Line for Phone Number (____) _______________
/ /
     --------------------------------
/ /
     --------------------------------
/ /
     --------------------------------
/ /
     --------------------------------

                          CHART HOUSE ENTERPRISES, INC.
                                                                       EXHIBIT B
                               SEVERANCE PAY PLAN

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                          WAIVER AND RELEASE AGREEMENT

(1)   In consideration for signing the Waiver and Release Agreement you will
      receive ten (10) dollars. By signing, you will agree to the following:
      Under the terms of the Chart House Enterprises, Inc. Severance Pay Plan
      ("Plan"), I, on behalf of myself and my heirs, executors, administrators,
      attorneys and assigns, hereby waive, release and forever discharge Chart
      House Enterprises, Inc. ("Company") and its parents, subsidiaries,
      divisions and affiliates, whether direct or indirect, its and their joint
      ventures and joint venturers (including its and their respective
      directors, officers, associates, employees, shareholders, partners and
      agents, past, present and future) and each of its and their respective
      successors and assigns (collectively referred to as "Releasees"), from any
      and all known or unknown actions, causes of action, claims or liabilities
      of any kind that have or could be asserted against the Releasees arising
      out of or related to my employment with and/or separation from employment
      with the Company and/or any of the other Releasees and/or any other
      occurrence up to and including the date of this Waiver and Release
      Agreement, including but not limited to:

      (a)   claims, actions, causes of action or liabilities arising under Title
            VII of the Civil Rights Act, as amended, the Age Discrimination in
            Employment Act, as amended ("ADEA"), the Employee Retirement Income
            Security Act, as amended, the Rehabilitation Act, as amended, the
            Americans with Disabilities Act, as amended, the Family and Medical
            Leave Act, as amended, and/or any other federal, state, municipal or
            local employment discrimination statutes (including, but not limited
            to, claims based upon age, sex, attainment of benefit plan rights,
            race religion, national origin, marital status, sexual orientation,
            ancestry, harassment, parental status, handicap, disability,
            retaliation and veteran status); and/or

      (b)   claims, actions, causes of action or liabilities arising under any
            other federal, state municipal or local statute, law, ordinance or
            regulation; and/or

      (c)   any other claim whatsoever including, but not limited to, claims for
            severance pay (other than claims for supplemental severance pay
            under the Plan), claims based upon breach of contract, wrongful
            termination, defamation, intentional infliction of emotional
            distress, tort, personal injury, invasion of privacy, violation of
            public policy, negligence and/or any other common law, statutory or
            other claim whatsoever arising out of or relating to my employment
            with and/or separation from employment with the Company and/or any
            of the other Releasees,

            but excluding the filing of an administrative charge, any claims I
            may make under state workers' compensation or unemployment laws,
            and/or any claims by law I cannot waive.

(2)   I also agree never to sue any of the Releasees or become a party to in a
      lawsuit on the basis of any claim or any type whatsoever arising out of or
      related to my employment with and/or separation from employment with the
      Company and/or any of the other Releasees, other than a lawsuit to
      challenge this Waiver and Release Agreement under the ADEA.

(3)   I further acknowledge and agree that if I breach the provisions of
      paragraph (2) above, then (a) the Company shall be entitled to apply for
      and receive an injunction to restrain any violation of paragraph

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      (2) above, (b) the Company shall not be obligated to continue payment of
      the supplemental severance pay, if any, to me, (c) I shall be obligated to
      pay to the Company its costs and expenses in enforcing this Waiver and
      Release Agreement and defending against such lawsuit (including court
      costs, expenses and reasonable legal fees), and (d) as an alternative to
      (c), at the Company's option, I shall be obligated upon demand to repay to
      the Company all but $500.00 of any supplemental severance pay, if any,
      paid or made available to me. I further agree that the foregoing covenants
      in this paragraph (3) shall not affect the validity of this Waiver and
      Release Agreement and shall not be deemed to be a penalty or forfeiture.

(4)   I further waive my right to any monetary recovery should any federal,
      state or local administrative agency pursue any claims on my behalf
      arising out of or related to my employment with and/or separation from
      employment with the Company and/or any of the other Releasees.

(5)   I further waive, release and discharge the Releasees from any
      reinstatement rights, which I have or could have, and I acknowledge that I
      have not suffered any on-the-job injury for which I have not already filed
      a claim.

(6)   I further agree that if I breach the Confidential Information, No
      Solicitation of Employees or No Disparagement provisions of the Plan, then
      (a) the Company shall be entitled to apply for and receive an injunction
      to restrain such breach, (b) the Company shall not be obligated to
      continue payment of any supplemental severance pay, and (c) I shall be
      obligated to pay to the Company its costs and expenses in enforcing the
      Confidential Information provisions of the Plan (including court costs,
      expenses and reasonable legal fees).

(7)   I acknowledge I have been given forty-five (45) days to consider this
      Waiver and Release Agreement thoroughly and I was encouraged by the Plan
      Committee to consult with my personal attorney, if desired, before signing
      below.

(8)   I understand I may revoke this Waiver and Release Agreement within seven
      (7) days after its signing and that any revocation must be made in writing
      and submitted within this seven-day period to the Plan Committee. I
      further understand that if I revoke this Waiver and Release Agreement, I
      shall not receive any supplemental severance pay under the Plan.

(9)   I also understand that the supplemental severance pay, if any, which I
      will receive under the Plan in exchange for signing, and not later
      revoking, this Waiver and Release Agreement are in addition to anything of
      value to which I am already entitled.

(10)  I FURTHER UNDERSTAND THAT THIS WAIVER AND RELEASE AGREEMENT INCLUDES A
      RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

(11)  I acknowledge and agree that if any provision of this Waiver and Release
      Agreement is found, held or deemed by a court of competent jurisdiction to
      be void, unlawful or unenforceable under any applicable statute or
      controlling law, the remainder of this Waiver and Release Agreement shall
      continue in full force and effect.

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(12)  This Waiver and Release Agreement is deemed made and entered into in the
      state in which I was employed by the Company and in all respects shall be
      interpreted, enforced and governed under the laws of that state, except to
      the extent superseded by federal law. Any dispute under this Waiver and
      Release Agreement shall be adjudicated by a court of competent
      jurisdiction in the state in which I was employed by the Company.

(13)  I further acknowledge and agree that I have carefully read and fully
      understand all of the provisions of this Waiver and Release Agreement and
      that I voluntarily enter into this Waiver and Release Agreement by signing
      below.

(14)  If applicable, I also knowingly waive the provision of the California
      Civil Code Section 1542, 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.

                                 Signed: /s/ THOMAS J. WALTERS
                                         ---------------------------

                                 Dated: August 12, 2002

                                 PLEASE RETURN THE SIGNED AND DATED WAIVER AND
                                 RELEASE AGREEMENT TO KENNETH R. POSNER

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00048-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00048-of-00352.parquet"}]]