Document:

Exhibit 10.1

 

FIRST AMENDMENT TO STOCK
PURCHASE AGREEMENT

 

                This First Amendment to Stock Purchase Agreement
(this “Amendment”), is made as of July 31, 2003 by and between HBC Puerto Rico,
Inc., a Puerto Rico corporation
(“Buyer”), and Fundación Angel Ramos, Inc., a Puerto Rico corporation
(“Seller”).

 

                WHEREAS, Seller and Hispanic Broadcasting Corporation (“HBC”)
are parties to that certain Stock Purchase Agreement, dated as of February 13,
2003 (the “Agreement”).

 

                WHEREAS, pursuant to an Assignment and Assumption Agreement
entered into as of July 30, 2003, HBC has assigned all of its rights, title,
and interest in and to the Agreement toBuyer.

 

                WHEREAS, Buyer
and Seller now desire to make certain modifications to the Agreement,
including, among other matters, amending the environmental indemnification
language and adding additional representations and warranties.

 

                WHEREAS, all
capitalized terms used herein and not otherwise defined herein shall have the
meanings ascribed to such terms in the Agreement.

 

                NOW, THEREFORE, in consideration of the premises and the
mutual covenants and agreements herein contained, the parties hereto agree as
follows:

 

                1.  Under Section 1, the definitions of
“Environmental Claim” and Environmental Laws” are amended to read as follows:

 

“Environmental Claim” —shall mean any and all
administrative, regulatory or judicial actions, suits, proceedings, executory
decrees, judgments, demands, demand letters, orders, directives, claims
(including claims involving liability in tort), liens or notices of
noncompliance or violation relating to any Environmental Law or Governmental
Authorization issued under any such Environmental Law, or arising from the
presence or release into the environment of Hazardous Materials including,
without limitation, Environmental Claims by any governmental or regulatory
authority or by any third party for enforcement, cleanup, removal, response,
remedial or other actions or damages, contribution, indemnification, cost
recovery, compensation or injunctive relief pursuant to any Environmental Law.

 

                “Environmental
Laws” —shall mean all federal, Commonwealth, state, and local laws, statutes,
ordinances, guidance, rules now or hereafter in effect, and in each case as
amended, and any judicial or administrative interpretation thereof, including
any judicial or administrative order, consent decree or judgment relating to
the regulation and protection of human health, safety, land uses, the
environment and natural resources, without limitation, laws and regulations relating
to emissions, discharges, releases or threatened releases of Hazardous 

 

 

Materials
or otherwise relating to the manufacture, processing, distribution, use,
treatment, storage, disposal, transport or handling of Hazardous
Materials.  Environmental Laws include
but are not limited to the Communications Act, as amended and as applicable;
the Comprehensive Environmental Response, Compensation, and Liability Act of
1980, as amended (“CERCLA”); the Federal Insecticide, Fungicide, and
Rodenticide Act, as amended (“FIFRA”); the Resource Conservation and Recovery
Act, as amended (“RCRA”); the Toxic Substances Control Act, as amended
(“TSCA”); the Clean Air Act, as amended (“CAA); the Federal Water Pollution
Control Act, as amended (“FWPCA”); the Oil Pollution Act of 1990, as amended
(“OPA”); the Fish and Wildlife Coordination Act, as amended (“FWCA”); the
Endangered Species Act, as amended (“ESA”); the Wild & Scenic Rivers Act,
as amended (“WSRA”); the Rivers and Harbors Act of 1899, as amended (“1899
Rivers Act”); the Water Resources Research Act of 1984, as amended (“WRRA”);
the Occupational Safety and Health Act, as amended (“OSHA”); and the Safe
Drinking Water Act, as amended (“SDWA”); and their state and local counterparts
or equivalents, including the Puerto Rico Public Policy Environmental Act, as
amended, and the regulations promulgated thereunder.

 

                2.  A new Section 2.4(a)(iii) and 2.4(a)(iv) shall be
added to read as follows:

 

                (iii)          $15,000 by wire transfer of
immediately available funds to an account designated by Buyer as reimbursement
for the anticipated costs of asbestos remediation at the Cataño, Ponce, and
Aguas Buenas properties.

 

                (iv)          $15,169.50  by wire transfer of immediately available funds to
an account designated by Buyer as reimbursement for technical and legal
expenses incurred by Buyer in connection with various unexpected issues under
the Environmental Laws that arose subsequent to the execution of the Agreement.

 

                3.  The Escrow Agreement, attached as Part
2.5(b) of the Disclosure Schedule, is hereby amended and replaced in its
entirety with the form of escrow agreement attached as Exhibit “A” to this
Amendment.

 

                4.  Section 3.19 shall be amended to read as follows:

 

                3.19         Compliance
with Laws.  Except as set
forth as described in Part 3.19 of the Disclosure Schedule, the Company
is not in violation of any Legal Requirement, 
applicable to its business, properties or assets in a manner which might
result in any material adverse effect in the business, operations, properties,
assets or  financial condition of the
Company.

 

                5.  A
new Section 3.30 shall be added to read
as follows:

 

 

2

 

                3.30         Cataño PCBs.  Notwithstanding the
representations in Section 3.23, Buyer and Seller acknowledge that prior to the
execution of this Agreement, certain equipment (including but not limited to
capacitors and transformers) located at the Cataño Facilities contained
PCBs.  Seller hereby represents to Buyer
that PCBs are no longer present at or on the Cataño Facilities, and that any
and all prior-existing PCBs were properly used, managed and disposed of in
accordance with all applicable Environmental Laws.  Seller further represents to Buyer that no Environmental Claim of
any kind will result from the PCBs that were used or managed in the past at the
Cataño Facilities.

 

                6.  Section
9.8 shall be amended to read as follows:

 

9.8           Environmental Compliance.  By no later than 120 days after the Closing
Date, Seller will cause the Company to bring all environmental matters set
forth on Part 3.23 of the Disclosure Schedule (including Governmental
Authorizations) into full and complete compliance with the Environmental Laws;
provided that Seller shall not be required to remediate the asbestos from the
Cataño, Ponce, and Aguas Buenas Facilities. 
In addition, Seller, or its designee, shall update Buyer, or its
designee, every two weeks and prior to any material environmental permit
filing, on the status of Seller’s progress pursuant to this Section 9.8.

 

 

                7.  Section
12.1 shall be amended to read as follows:

 

                12.1         Survival
after the Closing.  All
representations, warranties, covenants, and obligations in this Agreement, the
Disclosure Schedule, and other documents delivered pursuant to this Agreement
will survive the Closing for a period of 18 months after the Closing, except
the representations and warranties contained in Section 3.1, 3.2, 3.3, 3.4,
3.5, 3.6, 3.8, 3.12(a), the last sentence in Section 3.15(a), 3.30, 4.1, 4.2
and 4.3, which shall survive indefinitely, and the representations contained in
Section 3.11 and 3.23, which shall survive for a period of 6 years.

 

                8.  Section 12.2 shall
be amended to include new Sections 12.2(g) and 12.2(h), which shall read as
follows:

 

                (g)           any Environmental Claim against the Company arising out of
or relating to:  (1) the ownership,
operation or condition at any time on or prior to the Closing of  Facilities or any other properties and
assets (whether real, personal or mixed and whether tangible or intangible) in
which the Company has or had an interest; (2) any Hazardous Materials that were
present on the Facilities or such other properties and assets at any time on or
prior to the Closing; or (3) any Hazardous Materials, wherever located, that
were, or were allegedly, generated, transported, stored, treated, released or
otherwise handled by the Company, or by 

 

3

 

any
other person for whose conduct it is or may be responsible pursuant to
applicable Environmental Laws, at any time on or prior to the Closing.

 

                (h)           any action (corrective or otherwise) by the Company to
remedy any noncompliance with any Environmental Law, with respect to the assets
or the operations of the Company that accrued prior to the Closing Date.

 

                9.  After 12.2(h), a
new paragraph shall be added to read as follows:

 

                The right to indemnification,
payment of Damages (as defined hereinafter) or other remedies based on such
representations, warranties, covenants, and obligations will not be affected by
an investigation conducted with respect to, or any knowledge acquired (or
capable of being acquired) at any time, whether before or after the execution
and delivery of this Agreement as amended or the Closing, with respect to the
accuracy or inaccuracy of or compliance with, any such representation,
warranty, covenant or obligation.  Also,
the waiver of any condition based on the accuracy of any representation or
warranty, or on the performance of or compliance with any covenant or
obligation, will not affect the right to indemnification, payment of Damages,
or other remedy based on such representations, warranties, covenants, and
obligations.

 

                10.  Section 12.4
shall be amended to read as follows:

 

                (a)           If the Closing occurs, Seller will have no liability (for
indemnification or otherwise) with respect to any representation or warranty,
or covenant or obligation to be performed and complied with prior to the
Closing Date, other than those in Sections 3.1, 3.2, 3.3, 3.4, 3.5, 3.6, 3.8,
3.12(a), the last sentence of Section 3.15(a), and 3.11 unless on or before
eighteen (18) months after the Closing, Buyer notifies Seller of a claim
specifying the factual basis of that claim in reasonable detail to the extent
then known by Buyer.  A claim with
respect to Sections 3.1, 3.2, 3.3, 3.4, 3.5, 3.6, 3.8, 3.12(a), the last
sentence of 3.15(a), and 3.30, shall have no time limitation.  In the case of the representations and
warranties, covenants, or obligations contained in Sections 3.11, 3.23,
12.2(g), and 12.2(h), the claim must be made on or before 6 years after the
Closing Date.

 

                11.  Except as
expressly modified hereby, all other terms and conditions of the Agreement
shall remain in full force and effect in accordance with its terms.

                12.  This Amendment may be executed in one or more
counterparts, each of which will be deemed an original and all of which
together will constitute one and the same instrument.

 

 

[The remainder of this page intentionally left blank.]

 

4

 

                                IN
WITNESS WHEREOF, each of the parties hereto has caused this First Amendment to
the Stock Purchase Agreement to be executed as of the date first written above.

 

	
   

  	
  FUNDACIÓN ANGEL RAMOS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Argentina S. Hills

  
	
   

  	
   

  	
  Argentina S. Hills

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  HBC PUERTO RICO, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Timothy P. Ward

  
	
   

  	
   

  	
  Timothy
  P. Ward

  
	
   

  	
   

  	
  Vice
  President and Treasurer

  

 

5Exhibit 10.1

 

CHANGE IN CONTROL AGREEMENT

 

THIS AGREEMENT
is entered into as of May 8, 2003, by and between Gregory A. Miner (the
“Executive”) and Odetics, Inc., a Delaware corporation (the “Corporation”).

 

Section 1.                                            Term
of Agreement.

 

This Agreement
shall take effect on the Effective Date and shall expire on the date the
executive’s employment terminates for any reason not described in Section 3(a).

 

Section 2.                                            Definitions.

 

“Change in Control”
shall mean:

 

(a)                                  The
consummation of a merger or consolidation of the Corporation with or into
another entity or any other corporate reorganization, if persons who were not
stockholders of the Corporation immediately prior to such merger, consolidation
or other reorganization own immediately after such merger, consolidation or
other reorganization 50% or more of the voting power of the outstanding
securities of each of (i) the continuing or surviving entity and (ii) any
direct or indirect parent corporation of such continuing or surviving entity.  Notwithstanding the forgoing, any
consolidation or combination of Iteris and the Corporation through a repurchase
of a portion or all of the minority interest of Iteris by the Corporation, or a
merger of Iteris and the Corporation shall be deemed to be a Change in Control.
This trigger will only occur if the Board does not offer Greg the CEO job in
the new consolidated company.

 

(b)                                 The
sale, transfer or other disposition of all or substantially all of the
Corporation’s assets;

 

(c)                                  A
Change in the composition of the Board, as a result of which fewer than 50% of
the incumbent directors are directors who either:

 

(i)                                     had
been directors of the Corporation on the date 24 months prior to the date of
such change in the composition of the Board (the “Original Directors”) or

 

(ii)                                  were
appointed to the Board, or nominated for election to the Board, with the
affirmative votes of at least a majority of the aggregate of (A) the Original
Directors who were in office at the time of their appointment or nomination and
(B) the directors whose appointment or nomination was previously approved in a
manner consistent with this clause (ii); or

 

(d)                                 Any
transaction as a result of which any person is the “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Corporation representing at least 35% of the total voting

 

1

 

power represented by the
Corporation’s then outstanding voting securities.  For purposes of this Paragraph (d), the term “person” shall have
the same meaning as when used in Sections 13(d) and 14(d) of the Exchange Act
but shall exclude (i) a trustee or other fiduciary holding securities under an
associate benefit plan of the corporation or of a Parent or Subsidiary and (ii)
a corporation owned directly or indirectly by the stockholders of the
Corporation in substantially the same proportions as their ownership of the
common stock of the Corporation.

 

A transaction shall not
constitute a Change in Control if its sole purpose is to change the state of
the Corporation’s incorporation or to create a holding company that will be
owned in substantially the same proportions by the persons who field the
Corporation’s securities immediately before such transaction.

 

“Involuntary Termination”
shall mean the termination of the Service of any individual which occurs by
reason of:

 

(e)                                  such
individual’s involuntary dismissal or discharge by the Corporation for reasons
other than Misconduct, or

 

(f)                                    such
individual’s voluntary resignation following (A) a change in his or her
position with the Corporation which materially reduces his or her level of
responsibility, (B) a material reduction in his or her level of compensation
(including base salary, fringe benefits and participation in bonus or incentive
programs) or (C) a relocation of such individual’s place of employment by more
than fifty (50) miles, provided and only if such change, reduction or
relocation is effected by the Corporation without the individual’s consent.

 

“Misconduct” shall
mean the commission of any material act of fraud, embezzlement or dishonesty by
Executive, any material unauthorized use or disclosure by such person of
confidential information or trade secrets of the Corporation (or any Parent or
Subsidiary), or any other intentional material misconduct by such person
adversely affecting the business or affairs of the Corporation (or any Parent
or Subsidiary).  The foregoing
definition shall not be deemed to be inclusive of all the acts or omissions
which the Corporation (or any Parent or Subsidiary) may consider as grounds for
the dismissal or discharge of any other person in the employ or service of the
Corporation (or any Parent or Subsidiary).

 

“Annual Base Pay” shall
mean Executive’s base salary at the highest rate in effect at any regularly
scheduled payroll period preceding the occurrence of the Change in Control and
does not include, for example, bonuses, overtime compensation, incentive pay,
sales commissions or expense allowances.

 

“Target Bonus” shall
mean 100% of the bonus potential established for the Executive by the
Corporation for the applicable fiscal year.

 

2

 

Section 3.                                            Severance
Payment.

 

(a)                                  Entitlement
to Payment.   Subject to Section 9,
the Executive shall be entitled to receive a severance payment from the
Corporation under this Agreement (the “Severance Payment”) if, the Executive is
Involuntarily Terminated within three (3) months prior to or twenty-four (24)
months after a Change in Control.

 

(b)                                 Time
and Amount of Payment   The
Severance Payment shall be paid in one lump sum starting with the next normally
scheduled payroll date of the Corporation following the latest of the following
dates:  Executive’s last day of
employment, the date the Company receives Executive’s signed general release of
all claims pursuant to Section 9, or the date the revocation period (if any)
specified in the general release of all claims expires.  The amount of the Severance Payment shall be
equal to the following:

 

•                  200% of the
Executive’s Annual Base Pay, plus

•                  The Target Bonus
for the current Fiscal Year

 

Payments made under this Agreement shall not be treated as
“compensation” for purposes of the 401(K) Profit Sharing Plan.  Executive will also receive his unpaid
salary through his termination date and a lump sum payment for all accrued and
unused vacation (through the termination date) in a final paycheck provided on
his last day of work.

 

(c)                                  Mitigation
and Reemployment.   The Executive
shall not be required to mitigation the amount of any payment contemplated by
this Section 3 (whether by seeking new employment or in any other manner), nor
shall any such payment be reduced by any earnings that the Executive may
receive from any other source.  If the
Executive is reemployed by the Corporation or an affiliate of the Corporation
within 24 months after receiving a Severance Payment, the Executive shall
return a pro rata portion of such Severance Payment to the Corporation in an
amount and manner to be negotiated upon reemployment.

 

Section 4.                                            Payments
Unfunded and Non-Assignable.

 

(a)                                  No
Funding.   Any payments to be made
under Section 4 shall represent an unfunded and unsecured obligation of the
Corporation, which shall represent an unfunded and unsecured obligation of the
Corporation’s general assets.  The
Executive shall be considered a general creditor of the Corporation and shall
have no rights to any segregated funds or property of the Corporation.

 

(b)                                 No
Assignment.   The Executive’s right
to payments under this Agreement shall not be made subject to option or
assignment, either by voluntary or involuntary assignment or by operation of
law, including (without limitation) bankruptcy, garnishment, attachment or
other creditor’s process, and any action in violation of this Section 4(b)
shall be void.

 

3

 

Section 5.                                            Group
Insurance Coverage.   If the
Executive becomes entitled to a Severance Payment under this Agreement, then
the Corporation shall continue to provide all insurance benefits provided on
the date of termination to the Executive and, if applicable, to the executive’s
dependents for a period of twenty-four (24)} months from the date of
termination.

 

The Corporation’s obligation to pay premiums
or make contributions under this Subsection (a) cease when the Executive
obtains new employment offering comparable welfare benefits.

 

Section 6.                                            Tax
Effect of Payments.

 

(a)                                  Gross-Up
Payment.   In the event that it is
determined that any payment or distribution of any type to or for the benefit
of the Executive made by the Corporation, by any of its affiliates, by any
person who acquires ownership or effective control of the Corporation or
ownership of a substantial portion of the Corporation’s assets (within the
meaning of Section 280G of the Code and the regulations thereunder) or by any
affiliate of such person, whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise (the “Total
Payments”), would be subject to the excise tax imposed by Section 4999 of the
Code or any interest or penalties with respect to such excise tax (such excise
tax, together with any such interest or penalties, are collectively referred to
as the “Excise Tax”), then subject to Section 9 the Corporation shall pay
Executive an additional amount (a “Gross-Up Payment”) equal to the amount that
shall fund the payment by the Executive of any Excise Tax on the Total Payments
as well as all income taxes imposed on the Gross-Up Payment, any Excise Tax
imposed on the Gross-Up Payment and any interest or penalties imposed with
respect to taxes on the Gross-Up Payment or any Excise Tax.

 

(b)                                 Determination
by Accountant.   All mathematical
determinations and all determinations of whether any of the Total Payments are “parachute
payments” (within the meaning of Section 280G of the code) that are required to
be made under this Section 6, including all determinations of whether a
Gross-Up Payment is required, of the amount of such Gross-Up Payment and of
amounts relevant to the last sentence of this Section 6, shall be made by the
independent accounting firm of Ernst & Young (the “Accounting Firm”), which
shall provide its determination (the “Determination”), together with detailed
supporting calculations regarding the amount of any Gross-Up Payment and any
other relevant matters, both to the Corporation and to the Executive within
seven business days of the Executive’s termination date, if applicable, or such
earlier time as is requested by the Corporation or by the Executive (if the
Executive reasonably believes that any of the Total Payments may be subject to
the Excise Tax.  If the Accounting Firm
determines that no Excise Tax is payable by the Executive, it shall furnish the
Executive with a written statement that such Accounting Firm has concluded that
no Excise Tax is payable (including the reasons therefore) and that the
Executive has substantial authority not to report any Excise Tax on the
Executive’s federal income tax return. 
If a Gross-authority not to report any Excise Tax

 

4

 

on the Executive’s federal
income tax return.  If a Gross-Up
Payment is determined ot be payable, it shall be paid to the Executive within
five business days after the Determination is delivered to the Corporation or
the Executive.  Any determination by the
Accounting Firm shall be binding upon the Corporation and the Executive, absent
manifest error.

 

(c)                                  Underpayments
and Overpayments.   As a result of
uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments not made by the Corporation should have been made
(“Underpayments”).  IN either event, the
Accounting Firm shall determine the amount of the Underpayment or Overpayment
that has occurred.  In the case of an
Underpayment, the amount of such Underpayment shall promptly be paid by the
Corporation to or for the benefit of the Executive.  In the case of an Overpayment, the Executive shall, at the
direction and expense of the Corporation, take such steps as are reasonably
necessary (including the filing of returns and claims for refund), follow
reasonable instructions from, and procedures established by, the Corporation
and otherwise reasonable cooperate with the Corporation to correct such
Overpayment; provided, however, that (i) the Executive shall in no event
be obligated to return to the Corporation an amount greater that the net
after-tax portion of the Overpayment that the Executive has retained or has
recovered as a refund from the applicable taxing authorities and (ii) this
provision shall be interpreted in a manner consistent with the intent of this
Section 6, which is to make the Executive whole, on an after-tax basis, for the
application of the Excise Tax, it being understood that the correction of an
Overpayment may result in the Executive’s repaying to the Corporation an amount
which is less than the Overpayment.

 

Section 7.                                            Successors.

 

(a)                                  Corporation’s
Successors.   The Corporation shall
require any successor (whether direct or indirect and whether by purchase,
lease, merger, consolidation, liquidation or otherwise) to all or substantially
all of the Corporation’s business and/or assets to assume this Agreement and to
agree expressly and in writing to perform this Agreement in the same manner and
to the same extent as the Corporation would have been required to perform it in
the absence of a succession.  The
Corporation’s failure to obtain such an assumption prior to the effectiveness
of a succession shall be a breach of this Agreement.  For all purposes under this Agreement, the term “Corporation”
shall include any successor to the Corporation’s business and/or assets which
executes and delivers the assumption agreement described in this Section 7(a)
or which becomes bound by this Agreement by operation of law.

 

(b)                                 Executive’s
Successors.   This Agreement and all
rights of the Executive hereunder shall inure to the benefit of, and be
enforceable by, the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.

 

5

 

Section 8.                                            Miscellaneous
Previsions

 

(a)                                  No
Waivers.   No provision of this
Agreement shall be modified, waived or discharged unless the modification,
waiver or discharge is agreed to in writing and signed by the Executive and by
an authorized officer of the Corporation (other than the Executive).  No waiver by either party of any breach of,
or of compliance with, any condition or provision or of the same condition or
provision at another time.

 

(b)                                 Choice
of Law.   The validity,
interpretation, construction and performance of this Agreement shall be
governed by the laws of the State of California. .

 

(c)                                  Severability.   The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision hereof, which shall remain in full force
and effect.

 

(d)                                 Arbitration.   Except for responsibilities assigned to the
Accounting Firm under Section 6, any dispute or controversy arising under or in
connection with this Agreement, including but not limited to disputes arising
out of or related to the Agreement and Release, shall be resolved by the
following procedures, except that steps (3) and (4) will not be followed in
cases where the law specifically forbids the use of arbitration as a final and
binding remedy:

 

(1)                                  The
party claiming to be aggrieved shall furnish to the other party a written
statement of the grievance identifying any witnesses or documents that support
the grievance and the relief requested or proposed.

 

(2)                                  If
within three weweks, the other party does not agree to furnish the relief
requested or proposed, or otherwise does not satisfy the demand of the party
claiming to be aggrieved, the parties shall submit the dispute to nonbonding
mediation before a mediator to be jointly selected by the parties.  The Corporation will pay the cost of the
mediation.

 

(3)                                  If
the mediation does not produce a resolution of the dispute, the parties agree
that the dispute shall be resolved by final and binding arbitration.  The parties shall attempt to agree to the
identity of an arbitrator, and, if they are unable to do so, the Corporation
shall provide the Executive with a list of no fewer than five (5) names of
arbitrators, each of whom have been appointed in at least 10 cases, excluding
cases in which the corporation shall have been involved and the Executive shall
pick and, if so, to grant any relief authorized by law; provided, however, that
nothing herein shall limit the right of the Corporation to obtain injunctive
relief in court for violation of the Corporation’s proprietary information
agreement.  The arbitrator shall not have
the authority to modify, change or refuse to enforce the terms of this
Agreement.

 

The hearing
shall be transcribed.  The Corporation
shall bear the costs of the arbitration if the Executive prevails.  If the Corporation prevails, the Executive
will

 

6

 

pay half the cost of the
arbitration or $500, whichever is less. 
Each party shall be responsible for paying its own attorneys fees.

 

(4)                                  Arbitration
shall be the exclusive final remedy for any dispute between the parties, and
the parties agree that no dispute shall be submitted to arbitration where the
party claiming to be aggrieved has not complied with the preliminary steps
provided for above.

 

Section 9.                                            Release
and Waiver of Claims

 

Any other
provision of this Agreement notwithstanding, the Executive shall not be
entitled to receive any Severance Payment or other payment or benefit under
this Agreement unless the Executive has executed waiver of claims and the
attached general release of all claims in favor of the Corporation and its
affiliates.  Such waiver shall be
executed on a form provided by and acceptable to the Corporation.  The form of the waiver will specify how much
time Executive has to sign it and whether there is a revocation period.

 

IN WITNESS
WHEREOF, each of the parties has executed this Agreement, in the case of the
Corporation by its duly authorized officer, as of the day and year first above
written.

 

	
   

  	
  /s/ GREGORY A. MINER

  
	
   

  	
  Executive

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JOEL SLUTZKY

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Chairman

  
				

 

7

 

RELEASE OF CLAIMS

 

This Release
of Claims is entered into by and between
                                        ,
a Delaware corporation (the “Company”) and
                                         
(“Associate”).  It is entered into
pursuant to the terms of a Severance Protection Agreement (the “Agreement”)
between Associate and Company dated
                                      ,
and in order to resolve amicably all matters between Associate and the Company
concerning the Agreement and Associate’s termination of employment with the
Company and benefits payable to Associate under terms of the Agreement.

 

1.                                       Termination
of Employment.  Associate’s
employment with the Company has been terminated as a result of a Corporate
Transaction, an Involuntary Termination Without Cause or a Voluntary
Resignation for Good Reason, as defined in the Change in Control Agreement,
Section 2 by which Associate became eligible for benefits upon termination of
employment.

2.                                       Severance
Pay Associate will be entitled to severance payments as defined in the Change
in Control Agreement, Section 3. 
Associate is also eligible for certain other continuation of benefits
under the terms of the Change in Control Agreement.  Associate acknowledges that Associate has no entitlement to said
benefits except according to the terms of the Change in Control Agreement,
which includes a requirement that Associate execute this Release of Claims.

3.                                       Sole
Entitlement.  Associate acknowledges
and agrees that no other monies or benefits are owing to Associate except as
set forth in the Agreement.

4.                                       Return
of Property and Documents. 
Associate states that Associate has returned to the Company all property
and documents of the Company which were in Associate’s possession or control,
including without limitation access cards, Company-provided credit cards,
computer equipment and software.

5.                                       Confidentiality,
Nondisparagement and Nonsolicitation Agreement.  Associate agrees to abide by the terms of the Confidentiality
Agreement that Associate previously executed in connection with his employment
with the Company.  Associate agrees not
to make any communications or engage in any conduct that is or can reasonably
be construed to be disparaging of the Company, its officers, directors,
Associates, agents, stockholders, products or services.  The Company agrees not to make any
communications or engage in any conduct that is or can reasonably be construed
to disparaging of Associate.  For a
period of two (2) years following Associate’s termination of employment with
the Company, the Associate agrees not to solicit, directly or indirectly, any
associates of the Company, for employment with any other employer.

6.                                       Release.  Associate (for him/herself, his/her agents,
heirs, successors, assigns, executors and/or administrators) does hereby and
forever release and discharge the Company and its past and present parent,
subsidiary and affiliated corporations, division or other related entities, as
well as the successors, shareholder, officers, directors, heirs, predecessors,
assigns, agents, Associates, attorneys and representatives of each of them,
past or present (hereinafter the “Releases”) from any and all causes of action,
actions,

 

8

 

judgments,
liens, debts, contracts, indebtedness, damages, losses, claims, liabilities,
rights, interests and demands of whatsoever kind or character, known or
unknown, suspected to exist or not suspected to exist, anticipated or not anticipated,
whether or not heretofore brought before any state or federal court or before
any state or federal agency or other governmental entity, which Associate has
or may have against any released person or entity by reason of any and all
acts, omissions, events or facts occurring or existing prior to the date
hereof, including, without limitation, all claims attributable to the
employment of Associate, all claims attributable to the termination of that
employment, and all claims arising under any federal, state or other
governmental statute, regulations or ordinance or common law, such as, for
example and without limitation, Title VII of the Civil Rights Act of 1964, as
amended, the Civil Rights Act of 1991, the Age Discrimination in Employment Act
which prohibits discrimination on the basis of age over 40, the California Fair
Employment and Housing Act, the California Labor Code, the Texas Commission on
Human Rights Act, and wrongful termination claims, excepting only those
obligations expressly recited to be performed hereunder.

 

In light of
the intention of Associates (for him/herself, his/her agents, heirs,
successors, assigns, executors and/or administrators) that this release extend
to any and all claims of whatsoever kind or character, known or unknown,
Associate expressly waives any and all rights granted by California Civil Code
Section 1542 (or any other analogous federal or state law or regulation).  Section 1542 reads as follows:

 

A GENERAL
RELASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT OT
EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM
MUST HAVE MATERIALLY AFFECTED HIS STETTLEMENT WITH THE DEBTOR.

 

7.                                       No
Actions Pending.  Associate agrees
that he/she has not filed, nor will he/she file in the future, any claims,
actions or lawsuits against any of the Releases relating to Associate’s
employment with the Company, or the termination thereof.

8.                                       No
Admissions.  Nothing contained
herein shall be construed as an admission of wrongdoing or liability by any
party hereto.

9.                                       Entire
Agreement; Miscellaneous.  This
Agreement constitutes a single integrated contract expressing the entire
agreement of the parties with respect to the subject matter hereof and
supersedes all prior and contemporaneous oral and written agreements and
discussions with respect to the subject matter hereof.  There are no other agreements, written or
oral, express or implied between the parties hereto, concerning the subject
matter hereof.  There are no other
agreements, written or oral, express or implied, between the parties 

 

9

 

hereto,
concerning the subject matter hereof, except as set forth herein.  This Agreement may be amended or modified
only by an agreement in writing, and it shall be interpreted and enforced
according to the laws of the State of Texas. 
Should any of the provisions of the Agreement be determined to be
invalid by a court of competent jurisdiction, it is agreed that this shall not
affect the enforceability of the other provisions herein.

10.                                 Waiting
Period and Right of Revocation. 
ASSOCIATE ACKNOWLEDGES THAT ASSOCIATE IS AWARE AND IS HEREBY ADVISED
THAT ASSOCIATE HAS THE RIGHT TO CONSIDER THIS AGREEMENT FOR TWENTY-ONE DAYS
BEFORE SIGNING IT, ALTHOUGH ASSOCIATE IS NOT REQUIRED TO WAIT THE ENTIRE
TWENTY-ONE DAY PERIOD; AND THAT IF ASSOCIATE SIGNS THIS AGREEMENT PRIOR TO THE
EXPIRATION OF TWENTY-ONE DAYS, ASSOCIATE IS WAIVING THIS RIGHT FREELY AND
VOLUNTARILY.  ASSOCIATE ALSO
ACKNOWLEDGES THAT ASSOCIATE IS AWARE AND IS HEREBY ADVISED OF ASSOCIATE’S RIGHT
TO REVOKE THIS AGREEMENT FOR A PERIOD OF SEVEN DAYS FOLLOWING THE SIGNING OF
THIS AGREEMENT AND THAT IT SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE
REVOCATION PERIOD HAS EXPIRED.  TO
REVOKE THIS AGREEMENT, ASSOCIATE MUST NOTIFY THE COMPANY IN WRITING WITHIN
SEVEN DAYS OF SIGNING IT.

11.                                 Attorney
Advice.  ASSOCIATE ACKNOWLEDGES THAT
ASSOCIATE IS AWARE OF ASSOCIATE’S RIGHT TO CONSULT AN ATTORNEY, THAT ASSOCIATE
HAS BEEN ADVISED TO CONSULT WITH AN ATTORNEY, AND THAT ASSOCIATE HAS HAD THE
OPPORTUNITY TO CONSULT WITH AN ATTORNEY, IF DESIRED, PRIOR TO SIGNING THIS
AGREEMENT.

12.                                 Understanding
of Agreement.  Associate states that
Associate has carefully read this Agreement, that Associate fully understands
its final and binding effect, that the only promises made to Associate to sign
this Agreement are those stated above, and that Associate is signing this
Agreement voluntarily.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]