Document:

a50577750ex10_6.htm

 

Exhibit 10.6

 

SEPARATION AGREEMENT AND GENERAL RELEASE

 

This Separation Agreement and General Release (the "Agreement") is being entered into between American Public University System (the "University") and Dale Young, the undersigned. For and in consideration of the mutual promises contained herein, and for other good and sufficient consideration, receipt of which is hereby acknowledged, the University and I (sometimes hereafter referred to as the "Parties") agree as follows:

 

1.        Separation and Payment.

 

(a)       I performed my regular duties with the University through October 26, 2012 and will be paid my base salary through Friday, January 4, 2013 (the "Separation Date"), on which date my employment with the University ended. The Parties agree that my separation shall be treated as a resignation. After October 26, 2012, I will not be obligated to perform any day-to-day services other than those identified in Section 6: Transition Assistance. There will be no restrictions on my consulting to other organizations following October 26, 2012 through June 30, 2013.

 

(b)       I shall be paid at my current base salary rate through January 4, 2013. I shall be paid my 4th Quarter, 2012 additional compensation in the 1St Quarter of 2013. I am not eligible for and shall not receive any other 2012 year end compensation.

 

(c)       As consideration for my entering into this Agreement, the University agrees to enter into a separate consulting agreement, to be mutually agreed upon by the Parties, whereby I will be engaged to provide certain consulting services, and which, among other terms and conditions, shall (i) have a term from January 1, 2013 through June 30, 2013, and (ii) provide for payment of a monthly retainer fee of $28,000.00 per month for the six months ending June 30, 2013. The first payment (January) will be advanced and paid in December 2012.

 

  

  

  

 

(d)      As of the Separation Date, I shall not be eligible and am not eligible to participate in the University vacation, sick, Flexible Spending Account (FSA), retirement, life insurance and disability insurance benefits plans. My health, dental and vision insurance coverage (if applicable) will continue through the last day of the separation month, except to any extent provided by applicable law.

 

(e)      Once all of the payments referred to in this paragraph 1 of this Agreement have been made, I shall have been paid all compensation due and owing to me under this Agreement and under any contract I have or may have had with the University or from any other source of entitlement, including all wages, salary, commissions, bonuses, incentive payments, profit-sharing payments, leave, severance pay or other benefits. I further acknowledge and agree that the payments referred to in this paragraph 1, in addition to compensating me fully for time worked and services rendered through the end of my employment, include consideration for my promises contained in this Agreement, and that such consideration is above and beyond any wages, salary, or other sums to which I am entitled from the University under the terms of my employment or under any other contract or law.

 

2.        General Release. On behalf of myself and my agents, heirs, executors, administrators, successors and assigns, I hereby release and forever discharge the University, and any and all of the affiliates, officers, directors, employees, agents, counsel, and successors and assigns of the University, from any and all complaints, claims, demands, damages, lawsuits, actions, and causes of action, whether known, unknown or unforeseen, arising out of or in connection with any event, transaction or matter occurring or existing prior to or at the time of my execution of the Agreement, which I have or may have against any of them for any reason whatsoever in law or in equity, under federal, state, local, or other law, whether the same be upon statutory claim, contract, tort or other basis. including without limitation any and all claims arising from or relating to my employment or the termination of my employment and any and all claims relating to any employment agreement, any employment statute or regulation, or any employment discrimination law, including without limitation Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Civil Rights Act of 1866, the Equal Pay Act of 1963, and the Age Discrimination in Employment Act, all as amended, all state and local laws, regulations and ordinances prohibiting discrimination in employment, and other laws and regulations relating to employment, including but not limited to the Family and Medical Leave Act, the Fair Labor Standards Act, and the Employee Retirement Income Security Act of 1974, all as amended. I agree, without limiting the generality of the above release, not to file any claim or lawsuit seeking damages and asserting any claims that are lawfully released in this paragraph. 1 further hereby irrevocably and unconditionally waive any and all rights to recover any relief and damages concerning the claims that are lawfully released in this paragraph. I represent and warrant that I have not previously filed or joined in any such claims against the University or any of its affiliates, and that I have not given or sold any portion of any claims released herein to anyone else, and that I will indemnify and hold harmless the persons and entities released herein from all liabilities, claims, demands, costs, expenses and/or attorneys' fees incurred as a result of any such assignment or transfer. I HEREBY ACKNOWLEDGE AND AGREE THAT THIS RELEASE IS A GENERAL RELEASE AND THAT BY SIGNING THIS AGREEMENT, I AM SIGNING AND AGREEING TO THIS RELEASE.

 

  

  

  

 

3.        No Admission. The Parties agree that nothing contained in this Agreement shall constitute or be treated as an admission of liability or wrongdoing by either of them.

 

4.        Proprietary and/or Confidential Information. I agree that any sensitive, proprietary or confidential information or data relating to the University or any of its affiliates, including without limitation trade secrets, customer lists, customer contacts, customer relationships, the University's financial data, long range or short range plans, and other data and information of a competition-sensitive nature, or any confidential or proprietary information of others licensed to the University, that I acquired while an employee of the University shall not be disclosed or used for my own purposes or in a manner detrimental to the University's interests.

 

5.        Noninterference with Business. For a period of one (1) year following the signed agreement date, I agree that I (either alone or in association with others) shall not solicit, facilitate, assist or induce any employee, independent contractor, vendor, supplier or customer of the University or its affiliates to terminate, breach or leave an employment, contractual or other relationship with the University or any of its affiliates.

 

6.        Return of Information and Property. I agree to return to the University all property and supplies belonging to the University and the originals and all copies of all files, materials, or documents relating to the University's business. The property must be returned no later than January 4, 2013, to Tracy Woods at 661 S. George St. Charles Town, WV 25414.

 

7.        Transition Assistance. I agree to reasonably cooperate with and provide information to the University to assist in the transition process through January 4, 2013. Additionally, I agree to help with any transition issues or offer historical Information Technology perspectives during the tenure of my consulting agreement with APUS.

 

  

  

  

 

8.        Non-Disclosure of This Agreement. I agree that from and after the date and time of my receipt of this Agreement, I will not, directly or indirectly, provide to any person or entity any information that concerns or relates to the negotiation of or circumstances leading to the execution of this Agreement or to the terms and conditions hereof, except (i) to the extent that such disclosure is specifically required by law or legal process or as authorized in writing by the University; (ii) to my attorneys as may be necessary to secure advice concerning this Agreement; (iii) to my tax advisors as may be necessary for the preparation of tax returns or other reports required by law; or (iv) to members of my immediate family. I agree that prior to disclosing such information under parts (ii), (iii) or (iv) of this paragraph, I will inform the recipients that they are bound by the limitations of this paragraph, and subsequent disclosure of such information by any such recipients shall be deemed to be a disclosure by me in breach of this Agreement. The Parties mutually agree that they will not make any disparaging statements regarding the University, its affiliates, its business, or its employees, agents, officers or directors and the University, its affiliates, and its employees, agents, officers and directors will not make any disparaging remarks about me (Mr. Young).

 

9.        References. I agree to direct all prospective employers/clients and others seeking references regarding my employment to Pete Gibbons, SVP/CAO. The references will identify the position held and term of employment and any reference provided will not be negative.

 

  

  

  

 

10.      Breach or Violation. I agree that in the event of any violation of the provisions of this Agreement, in addition to any damages allowed by law, the University shall be entitled to injunctive relief.

 

11.      Modification; Severability. The Parties agree that if a Court of competent jurisdiction finds that any term of this Agreement is for any reason excessively broad in scope, duration, or otherwise, such term shall be construed or modified in a manner to enable it to be enforced to the maximum extent possible. Further, the covenants in this Agreement shall be deemed to be a series of separate covenants and agreements. If, in any judicial proceeding, a Court of competent jurisdiction shall refuse to enforce any of the separate covenants deemed included herein, then at the option of the University, wholly unenforceable covenants shall be deemed eliminated from the Agreement for the purpose of such proceeding to the extent necessary to permit the remaining separate covenants to be enforced in such proceeding.

 

12.      Certain Representations. The Parties represent and acknowledge that in executing this Agreement such party does not rely and has not relied upon any representation or statement made by the other party or the other party's agents, representatives or attorneys with regard to the subject matter, basis or effect of this Agreement or otherwise.

 

13.      Entire Agreement. This Agreement contains the entire agreement between the Parties relating to the subject matter of this Agreement, and may not be altered or amended except by an instrument in writing signed by both Parties hereto.

 

14.      Assignment. This Agreement and the rights and obligations of the Parties hereunder may not be assigned by either party without the prior written consent of the other party.

 

  

  

  

 

15.      Binding Agreement. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective representatives, successors and permitted assigns.

 

16.      Waiver. Neither the waiver by either party of a breach of or default under any of the provisions of the Agreement, nor the failure of such party, on one or more occasions, to enforce any of the provisions of the Agreement or to exercise any right or privilege hereunder shall thereafter be construed as a waiver of any subsequent breach or default of a similar nature, or as a waiver of any provisions, rights or privileges hereunder.

 

17.      Further Assurances. The Parties agree to take or cause to be taken such further actions as may be necessary or as may be reasonably requested in order to fully effectuate the purposes, terms, and conditions of this Agreement.

 

18.      Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of West Virginia (excluding the choice of law rules thereof). The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against either party. The parties consent to the exclusive jurisdiction of the courts of the State of Maryland to resolve any disputes regarding or arising from this Agreement, or the transaction between the parties.

 

19.      Acknowledgment. With respect to the general release in Paragraph 2, I agree and understand that I am specifically releasing all claims under the Age Discrimination in Employment Act (29 U.S.C. § 621 et seq.), as amended. I acknowledge that I have read and understand the foregoing Agreement and execute it voluntarily and without coercion. I further acknowledge that I have had full opportunity to consult with an attorney prior to executing this Agreement, and that I have been advised in writing herein to do so. If you need assistance in attaining an attorney, you can contact the West Virginia Bar Association at 304.558.2456. In addition, I have been given twenty-one (21) days to consider, execute, and deliver this Agreement to the University, unless I voluntarily choose to execute this Agreement before the end of the 21-day period. I understand that I have seven (7) days following my execution of this Agreement to revoke it in writing, and that this Agreement is not effective or enforceable until after this seven-day period. For such revocation to be effective, notice must be received by the University no later than the end of the seventh calendar day after the date by which I signed this Agreement. I expressly agree that, in the event I revoke this Agreement, the Agreement shall be null and void and have no legal or binding effect whatsoever, and I shall not be entitled to any of the payments described in Paragraph 1 (c) or other commitments made by the University in this Agreement. If I do not revoke this Agreement, I understand and agree that it will become fully enforceable immediately after the seven-day revocation period has expired. The parties recognize that I may elect to sign this Agreement prior to the expiration of the 21-day consideration period specified herein, and I agree that if I elect to do so, such election is knowing and voluntary and comes after full opportunity to consult with an attorney.

 

  

  

  

 

IN WITNESS HEREOF, THE PARTIES HAVE AFFIXED THEIR SIGNATURES BELOW:

 

	Dale Young	 	American Public University System	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	/s/ Dale Young 	 	/s/ Peter Gibbons 	 
	By: Dale Young 	 	By: Peter Gibbons, SVP, CAO 	 
	 	 	 	 

Date: October 25, 2012a50577750ex10_6a.htm

 

Exhibit 10.6A

 

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT (the "Agreement") is made and entered into as of the 1st day of January, 2013 (the "Effective Date"), by and between American Public University System, Inc., a West Virginia corporation (the "Company") having an address of 111 West Congress Street, Charles Town, West Virginia 25414, and Decent LLC (the "Consultant”) having an address of                                                                              .

 

WHEREAS, the Consultant is an organization with expertise in information technology, computer-based information systems, learning management systems and the provision of online higher education services; and

 

WHEREAS, the Company desires to obtain the benefits of the Consultant’s expertise and knowledge as a consultant and the Consultant desires to provide consulting services to the Company on the terms provided herein.

 

NOW, THEREFORE, in consideration of the foregoing and of the mutual promises and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

Section 1. Services to be Provided by the Consultant

 

The Consultant agrees to provide business consulting services on a nonexclusive basis to the Company, and in this capacity, to provide the Company with consulting services related to information technology, computer-based information systems, learning management systems (including Sakai), the provision of online higher education services, and other matters relevant to the Company's business as determined by the Company from time to time (collectively, the "Services"). The Consultant agrees to provide the Services during the Term as requested by the Company in its discretion. Consultations, meetings and/or work shall be held at such times and locations as may be agreed upon between the parties, but normally the Consultant will perform the Services at the offices of the Company in Charles Town, West Virginia. In addition, the Consultant will make himself available and perform the Services on the telephone, via the internet, and at such other places as designated by the Company as necessary in its discretion. The Consultant shall report to the Chief Operations Officer of the Company.

 

Section 2. Compensation; Indemnity

 

2.01 Fees and Expenses. In consideration of the Consultant's performance of the Services and the covenants and agreements contained herein, the Company agrees to pay the Consultant $28,000 per month during the Term, payable on the last day of each month during the Term with the exception that the January 2013 payment will be made before December 31, 2012. During the Term, the Company will also reimburse Consultant for all reasonable and customary expenses incurred by the Consultant in performing the Services for the Company in accordance with this Agreement, including expenses of travel and living expenses while away from home on business at the request of and in the service of the Company; provided that, such expenses are incurred, approved and accounted for in accordance with the policies and procedures established by the Company. Travel expenses to Charles Town and Manassas are part of the monthly fee and will not be expensed.

 

2.02 Indemnification by Company. The Company agrees to indemnify and hold harmless the Consultant (and each partner or employee thereof) from and against any losses, claims, damages or liabilities arising from third party claims or actions related to his performance of the Services in accordance with this Agreement; provided, however, that the Company shall not be liable in any such case to the extent that any loss, claim, damage or liability arises out of or is based upon (i) the gross negligence or willful misconduct of the Consultant or his employees or agents, or (ii) the Consultant's breach of this Agreement.

 

  

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Promptly after receipt by the Consultant of notice of the commencement of any action, it shall, if a claim in respect thereof is to be made against the Company under this indemnification provision, notify the Company in writing of the commencement thereof. Upon the Company having notice of the pendency of any such action, the Company shall be entitled in its discretion to participate therein and/or to assume the defense thereof.

 

2.03 Indemnification by Consultant. The Consultant agrees to indemnify and hold harmless the Company (and its affiliates, officers, directors, employees and agents) from and against any losses, claims, damages or liabilities arising from third party claims or actions arising out of or based upon the gross negligence or willful misconduct of the Consultant or his employees or agents.

 

Promptly after receipt by the Company of notice of the commencement of any action, it shall, if a claim in respect thereof is to be made against the Consultant under this indemnification provision, notify the Consultant in writing of the commencement thereof. Upon the Consultant having notice of the pendency of any such action, the Consultant shall be entitled in its discretion to participate therein and/or to assume the defense thereof.

 

Section 3. Relationship of Parties; Compliance

 

3.01 Independent Contractor. The Consultant is an independent contractor and is not an agent or employee of, and the Consultant has no authority to bind or obligate the Company by contract or otherwise. The Consultant will perform the Services under the general direction of the Company, but the Consultant will determine, in the Consultant's sole discretion, the manner and means by which the Services are accomplished, subject to the requirement that the Consultant shall at all times comply with applicable law. The Company has no right or authority to control the manner or means by which the Services are accomplished.

 

3.02 Employment Taxes and Benefits. The Consultant will report as self-employment income all compensation received by the Consultant pursuant to this Agreement. The Consultant will indemnify the Company and hold it harmless from and against all claims, damages, losses and expenses, including reasonable fees and expenses of attorneys and other professionals, relating to any obligation imposed by law on the Company to pay any withholding taxes, social security, unemployment or disability insurance, or similar items in connection with compensation received by the Consultant pursuant to this Agreement. The Consultant will not be entitled to receive any vacation or illness payments, or to participate in any plans, arrangements, or distributions by the Company pertaining to any bonus, profit sharing or similar benefits for the Company's employees.

 

3.03 Compliance with Law; Benefit of Company. The Consultant will at all times conduct its business in a manner consistent with all applicable state, federal and local laws, rules and regulations. The Consultant will at all times conduct itself and its business in an ethical manner, and in a manner that reflects positively upon the Company. At all times, the Services shall be performed for the benefit of the Company. The Consultant represents that it has complied with all state, federal or local laws regarding business permits, certificates, licenses, and all other requirements necessary, if any, to perform the services described herein. The Consultant will at all times remain solely and exclusively responsible for the conduct of its business.

 

  

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3.04 Student Records. To the extent that the Consultant receives or has access to student-related records and personally identifiable information contained in such records (collectively, "Student Records"), the Consultant agrees to maintain such Student Records in accordance with the requirements of the Family Educational Rights and Privacy Act, 20 USC 1232g, and its implementing regulations, 34 CFR pt. 99, as each may be amended from time to time and other applicable laws pertinent to Student Records. Without limiting the foregoing, the Consultant agrees that (a) it is subject to the requirements of 34 CFR § 99.33(a) governing the use and redisclosure of Student Records; (b) it shall not maintain, use, disclose, or allow access to Student Records except as permitted by this Agreement or as otherwise authorized by the Company; and (c) to the extent that the Company discloses Student Records to the Consultant under this Agreement, the Consultant shall use the information only for the purposes for which disclosure is made.

 

Section 4. Confidential Information; Work Product

 

4.01 Confidentiality. The Consultant agrees that any information received by the Consultant during any furtherance of the Consultant's obligations or performance of Services in accordance with this Agreement that concerns the personal, business, financial or other affairs of the Company will be treated by the Consultant in full confidence and will not be revealed to any other persons, firms or organizations without the prior written approval of the Company.

 

4.02 Work Product. The Consultant and the Company agree that, as between them, the Company shall own all intellectual property rights in the results of the Services to the maximum extent permitted by law. Accordingly, the Company shall own all discoveries, designs, developments, improvements, technology, inventions (whether or not protectable under patent laws), software, works of authorship, information fixed in any tangible medium of expression (whether or not protectable under copyright laws), trade secrets, know-how, ideas (whether or not protectable under trade secret laws), mask works, trademarks, service marks, trade names and trade dress that the Consultant, solely or jointly with others, conceives, develops or reduces to practice in the performance of the Services under this Agreement (collectively "Work Product"), and, to the fullest extent permissible, such Work Product shall be a work for hire. The Consultant shall promptly disclose and describe to the Company all Work Product. The Consultant hereby does and will assign to the Company all of the Consultant's right, title and interest in and to any and all Work Product and all associated records. To the extent any of the rights, title and interest in and to Work Product cannot be assigned by the Consultant to the Company, the Consultant hereby grants to the Company an exclusive, perpetual, royalty-free, transferable, irrevocable, worldwide license (with rights to sublicense through multiple tiers of sublicensees) to practice, use and exploit such non-assignable rights, title and interest. To the extent any of the rights, title and interest in and to Work Product can neither be assigned nor licensed by the Consultant to the Company, the Consultant hereby irrevocably waives and agrees never to assert such non-assignable and non-licensable rights, title and interest against the Company or any of the Company's successors in interest. Except in the performance of this Agreement for the benefit of the Company or as otherwise agreed by the Company in writing, the Consultant shall not use Work Product or disclose Work Product to any third party.

 

Section 5. Term. The term of this Agreement shall be the six (6) month period from the Effective Date to June 30, 2013 (the "Term"), unless terminated earlier pursuant to Section 6 herein. The Agreement shall not be renewed or extended beyond the Term without a written amendment signed by both parties. Notwithstanding any termination or expiration of this Agreement, the Consultant, in consideration of payments received hereunder, shall remain bound by the provisions of this Agreement which specifically relate to periods, activities or obligations upon or subsequent to the termination or expiration of this Agreement.

 

  

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Section 6. Expiration

 

6.01 Expiration. This Agreement shall expire at the end of the Term. 

 

Section 7. Effect of Expiration or Termination

 

7.01 Survival of Obligations. Upon the expiration or termination of this Agreement for any reason, each party will be released from all obligations to the other arising after the date of expiration or termination, except that expiration or termination of this Agreement will not relieve either party of its obligations under Sections 2.02, 2.03, 3.02, 3.03, 4, 7, 8 and 9, nor will expiration or termination relieve the Consultant or the Company from any liability arising from any breach of this Agreement.

 

7.02 Return of Confidential Information. Upon the expiration or termination of this Agreement for any reason, the Consultant will promptly notify the Company of all Confidential Information in the Consultant's possession and, at the expense of the Company and in accordance with the Company's instructions, will promptly deliver to the Company, or destroy at the Company's request, all such Confidential Information.

 

Section 8. Limitation of Liability

 

IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES OF ANY KIND IN CONNECTION WITH THIS AGREEMENT, EVEN IF SUCH PARTY HAS BEEN INFORMED IN ADVANCE OF THE POSSIBILITY OF SUCH DAMAGES.

 

Section 9. General

 

9.01 Assignment. The Consultant may not assign this Agreement or any of the Consultant's rights or delegate the Consultant's duties under this Agreement either in whole or in part, whether by operation of law or otherwise, without the prior written consent of the Company. Any attempted assignment or delegation without such consent will be void and of no force and effect,

 

9.02 Governing Law; Severability. This Agreement shall be governed in all respects by the laws of the United States of America and by the laws of the State of West Virginia, as such laws are applied to agreements entered into and to be performed entirely within West Virginia between West Virginia residents without regard to any conflicts of law provisions. The parties consent to the exclusive jurisdiction of the courts of the State of Maryland to resolve any disputes regarding or arising from this Agreement, or the transaction between the parties. If any provision of this Agreement is for any reason found to be unenforceable, the remainder of this Agreement will continue in full force and effect.

 

9.03 Remedies. The Consultant's obligations under this Agreement are of a unique character that gives them particular value. The Consultant's breach of any of such obligations may result in irreparable and continuing damage to the Company for which money damages would be insufficient; and therefore, the Company shall be entitled to seek equitable relief, including injunction and specific performance, as a remedy for any such breach. Such equitable remedies shall be in addition to any other remedies available to the Company at law or in equity.

 

9.03 Notices. Any notices under this Agreement will be sent by certified or registered mail, return receipt requested, or by a nationally recognized overnight courier to the address set forth above or such other address as the party specifies in writing. Such notice will be effective upon its mailing.

 

  

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9.04 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same document.

 

9.05 Complete Understanding; Modification. This Agreement constitutes the complete and exclusive understanding and agreement of the parties and supersedes all prior understandings and agreements, whether written or oral, with respect to the subject matter hereof. Any waiver, modification or amendment of any provision of this Agreement will be effective only if in writing and signed by the parties hereto.

 

IN WITNESS WHEREOF, the parties have signed this Agreement as of the Effective Date.

 

	COMPANY	 	CONSULTANT
	 	 	 
	 	 	 
	By:	
/s/ Peter W. Gibbons

	 	By:	
/s/ W. Dale Young 

	Printed Name:	
Peter W. Gibbons               

	 	Printed Name:	
W. Dale Young 

	Title:	
SVP, CAO 

	 	Title:	
 

 

 

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