SEC Contract Filing

Filing Date: 2019-04-01

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>6
<FILENAME>ex103-sepagreemtxtewksbury.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
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<div><a name="sA5470CD4FAEFC02BD7ADD0269AE2B88A"></a></div><div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div></div><div><br></div><div style="line-height:120%;padding-bottom:16px;text-align:right;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;font-weight:bold;">Exhibit 10.3</font></div><div style="line-height:120%;padding-bottom:16px;text-align:right;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;"><br></font></div><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;font-weight:bold;text-decoration:underline;">SEPARATION AGREEMENT AND RELEASE</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;">This Separation Agreement and Release (the &#8220;Agreement&#8221;) is entered into by Theodore L. Tewksbury III (&#8220;Employee&#8221;) and Energy Focus, Inc. (&#8220;Energy Focus&#8221;). Employee and Energy Focus are collectively referred to in this Agreement as the &#8220;Parties.&#8221;</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;">In consideration of the promises and agreements contained herein and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, and intending to be legally bound, Energy Focus and Employee hereby agree as follows:</font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:11pt;padding-left:0px;"><font style="font-family:Arial;font-size:11pt;">1.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;font-weight:bold;text-decoration:underline;">Employee Continuation and Separation from Employment</font><font style="font-family:Arial;font-size:11pt;font-weight:bold;">. </font><font style="font-family:Arial;font-size:11pt;">Employee hereby tenders his resignation as the Chairman of the Board, Chief Executive Officer and President of Energy Focus effective as of the earlier of (a) the date that the Energy Focus Form 10-K is filed with the Securities and Exchange Commission with respect to the year ended December 31, 2018 or (b) April 1, 2019 (such earlier date, the &#8220;Separation Date&#8221;). Energy Focus hereby accepts Employee&#8217;s resignation, and the parties agree that Employee&#8217;s employment with Energy Focus will end on the Separation Date. Employee agrees that, through the Separation Date, he will perform his duties in good faith to ensure that all business in regard to Energy Focus is conducted in a professional, positive and competent manner, and to assist Energy Focus with all necessary and appropriate securities filings through the Separation Date. </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:11pt;padding-left:0px;"><font style="font-family:Arial;font-size:11pt;">2.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;font-weight:bold;text-decoration:underline;">Accrued Unused Vacation Days</font><font style="font-family:Arial;font-size:11pt;font-weight:bold;">. </font><font style="font-family:Arial;font-size:11pt;">Regardless of whether Employee signs this Agreement,</font><font style="font-family:Arial;font-size:11pt;font-weight:bold;">&#32;</font><font style="font-family:Arial;font-size:11pt;">on the Separation Date, Employee will be paid for accrued unused PTO time, which as of March 29, 2019, is approximately 164.74 hours and which would be the equivalent of $26,136.64. Employee may use accrued PTO through the Separation Date, so long as the use of such PTO does not interfere with Employee&#8217;s ability to timely complete the 10-K filing described in Section 1. Through the Separation Date, the Employee will continue to accrue PTO in accordance with the Energy Focus PTO Plan and any use of PTO before the Separation Date will reduce the amount of accrued PTO to be paid out after the Separation Date. </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:11pt;padding-left:0px;"><font style="font-family:Arial;font-size:11pt;">3.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;font-weight:bold;text-decoration:underline;">Severance / Consideration</font><font style="font-family:Arial;font-size:11pt;font-weight:bold;">. </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:96px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;pa