Exhibit 10.34
SUPERSEDING EMPLOYMENT,
SEPARATION, NON-COMPETITION AND
GENERAL RELEASE AGREEMENT
This Superseding Employment,
Separation, Non-Competition and General Release Agreement (this
“ Agreement ”) is made and entered into as of
the 5 th day of March 2009 (“
Separation Date ”), by and between Sally Conkright
(“ Executive ”) and Scientific Games
Corporation, a company formed under the laws of Delaware (the
“ Company ” and, together with Executive, the
“ Parties ”).
WHEREAS, Executive has been employed
as Vice President Administration and previously also as Chief Human
Resources Officer, pursuant to a letter agreement of
September 30, 2002 which was replaced by an employment
agreement of August 2, 2006 as amended by a letter agreement
dated October 7, 2008 and as further amended by an amendment
dated as of December 30, 2008 (as so amended, the “
Employment Agreement ”);
WHEREAS, the Executive wishes to
resign her various positions in the Company and its affiliates to
pursue other opportunities and Executive and the Company desire to
enter into this Agreement regarding Executive’s separation
from employment with the Company; and
WHEREAS , Executive and the
Company wish to settle and resolve all potential disputes, actions,
lawsuits, charges and claims that the Executive has or may have
against the Company and that the Company may have against her to
the fullest extent permitted by law and without any admission of
liability or wrongdoing by either Party.
NOW THEREFORE, in consideration of
the recitals and the mutual promises, covenants and agreements set
forth herein, the Parties covenant and agree as follows:
1.
Termination of Existing
Employment Agreements . As of the Separation Date,
Executive’s employment with the Company shall terminate and
all existing and prior employment agreements between the Parties,
whether oral or written, including the Employment Agreement are
hereby terminated and of no further force or effect, except the
following provisions of the Employment Agreement shall survive such
termination and continue in full force and effect in accordance
with their respective terms:
(a)
Section 6 related to
non-competition, non-solicitation, non-disclosure, etc.;
and
(b)
Section 8 relating to
Executive’s right to indemnification (which right to
indemnification shall in no event be less favorable to Executive
than exists as of the Effective Date).
2.
Consideration to
Executive . Except
for any payments or benefits Executive has accrued or vested
pursuant to Executive’s participation in the Company’s
401(k) Plan or the Employee Stock Purchase Plan, which shall
be subject to the terms and conditions set forth in such plans (it
being understood and agreed that, as of the Separation Date, any
“option” Executive may have with respect to the current
“option period” under the Employee Stock Purchase Plan
will be deemed cancelled and any of Executive’s accumulated
payroll deductions for such “option period” will be
paid to Executive in accordance with the terms of such
plan),
Executive acknowledges and agrees that the
payments described in this Section 2 fulfill any and all of
the Company’s obligations due to Executive under any
agreement or bonus, incentive compensation, severance or separation
plan or allowance or any other compensation or benefit plan or
arrangement maintained by the Company or any of its subsidiaries,
and Executive specifically acknowledges and agrees that Executive
is entitled to no other compensation or benefits from the Company
or any of its subsidiaries of any kind or nature whatsoever, except
to the extent expressly provided in this Agreement.
In consideration of the covenants undertaken
herein by Executive, and for other good and valuable consideration,
receipt of which is hereby acknowledged, and in full and complete
consideration for Executive’s promises, covenants and
agreements set forth in this Agreement, the Company shall provide
the following to Executive:
(a)
Any accrued but unpaid base salary
(which is US$447,000 per annum) of Executive for services rendered
to the Separation Date, payable in accordance with the
Company’s regular payroll policies (and subject to applicable
withholdings);
(b)
An amount in respect of accrued and
unpaid vacation (totaling 14 weeks) as of the Separation Date,
payable within 30 days of the Separation Date (and subject to
applicable withholdings);
(c)
Reimbursement in accordance with the
Company’s policies of any unpaid reasonable business expenses
and disbursements incurred by Executive prior to the Separation
Date; provided , however , that Executive must submit
vouchers for any such expenses in accordance with the
Company’s standard procedures by March 31,
2009;
(d)
US$745,149 (subject to applicable
withholdings) representing an amount equal to the sum of
(i) Executive’s annual base salary and
(ii) Executive’s “Severance Bonus Amount”
(as defined in the Employment Agreement), 50% of which shall be
payable on September 7, 2009 (or on the next regular payroll
date following September 7, 2009) and the remaining 50% of
which shall be payable over a period of six (6) months
beginning September 7, 2009 in accordance with the
Company’s regular payroll practices;
(e)
All unvested stock options,
restricted stock units, restricted stock and other equity-based
awards held by Executive immediately prior to the Separation Date
will become fully vested and non-forfeitable, and, in all other
respects, all such options and other awards shall be governed by
the plans and programs and the agreements and other documents
pursuant to which the awards were granted;
(f)
US$298,149 as a 2008 bonus, payable
on or before March 15, 2009 (and subject to applicable
withholdings);
(g)
US$150,000 as a 2009 bonus in
recognition of Executive’s hard work on the budget task force
(notwithstanding the pro-ration formula of
Section 5(e)(iv) of the Employment Agreement), payable on
or before March 31, 2009 (and subject to applicable
withholdings);
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(h)
an amount not to exceed US$40,000 in
the aggregate on an after-tax basis shall be reimbursed to
Executive for outplacement counseling provided to Executive by an
outplacement firm during the period ending no later than
August 31, 2009; provided that Executive submits receipts or
other documents reasonably acceptable to the Company documenting
such outplacement expenses, which payment(s) shall be made by
the Company to the Executive within thirty (30) days after the
Executive submits such receipts or documents to the
Company;
(i)
US$10,000 to reimburse Executive for
moving expenses from New York back to Boston; provided that
Executive submits receipts or other documents reasonably acceptable
to the Company documenting such moving expenses, which evaluation
and payment shall be made within thirty (30) days after the
Executive submits such receipts or documents to the Company;
and
(j)
If Executive elects to continue
COBRA coverage for health and dental coverage under the
Company’s group health plan in accordance with COBRA, the
monthly premiums for such coverage for a period of eighteen (18)
months will be paid by the Company in full.
For the avoidance of doubt, in the
event of Executive’s death prior to the time when all
payments under this Section 2 have been made,
Executive’s estate shall receive such payments not already
paid to Executive in accordance with this
Section 2.
The Company makes no representations
or warranties regarding the tax implications of the compensation
and benefits to be paid to Executive under this Agreement,
including, without limitation, under Section 409A of the
Internal Revenue Code of 1986, as amended (the “ Code
”), and applicable administrative guidance and
regulations. Section 409A of the Code governs plans and
arrangements that provide “nonqualified deferred
compensation” (as defined under the Code) which may include,
among others, nonqualified retirement plans, bonus plans, stock
option plans, employment agreements and severance agreements.
To the extent any payments of money or other benefits due to
Executive under this Agreement could cause the application of an
acceleration or additional tax under Section 409A of the Code,
such payments or other benefits shall be deferred if deferral will
make such payment or other benefits compliant under
Section 409A of the Code, or otherwise such payments or other
benefits shall be restructured, to the extent possible, in a manner
determined by the Company that does not cause such acceleration or
additional tax. To the extent any reimbursements or in-kind
benefits due to Executive under this Agreement constitute deferred
compensation under Section 409A of the Code, any such
reimbursements or in-kind benefits shall be paid to Executive in a
manner consistent with Treas. Reg.
Section 1.409A-3(i)(1)(iv). Any cash payment made on an
after-tax basis that involves a reimbursement of taxes may be made
as soon as the Company receives the information necessary for such
purpose but in no event later than the end of the calendar year
following the year the related taxes are remitted to the taxing
authority. Each payment made under this Agreement shall be
designated as a “separate payment” within the meaning
of Section 409A of the Code.
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3.
General Release of
Claims .
(a)
In consideration for the benefits
specified in Section 2 hereof, which Executive hereby
acknowledges are not otherwise owed to Executive, Executive hereby
understands and agrees that Executive is knowingly and voluntarily
releasing, waiving and forever discharging, to the fullest extent
permitted by law, on Executive’s own behalf and on behalf of
Executive’s agents, assignees, attorneys, heirs, executors,
administrators and anyone else claiming by or through Executive
(collectively referred to as the “ Releasors
”):
(i) the
Company, its affiliates, subsidiaries, predecessors, successors or
assigns, and any of its or their past or present stockholders,
members or other equity holders, and any of its or their respective
past or present directors, executives, officers, insurers,
attorneys, employees, consultants, agents, employee benefits plans
and trustees, fiduciaries, and administrators of those plans
(collectively referred to as the “ Released Parties
”),
(ii) of and from
any and all claims under local, state or federal law or equity,
whether known or unknown, asserted and unasserted, that Executive
and/or the other Releasors have or may have against Released
Parties as of the Effective Date, including but not limited to all
matters relating to or in any way arising out of any aspect of
Executive’s employment with the Company, separation from
employment with the Company, or Executive’s treatment by the
Company while in the Company’s employ, and all other claims,
charges, complaints, liens, demands, causes of action, obligations,
damages (including consequential, punitive or exemplary damages),
liabilities or the like of whatever nature (including, without
limitation, attorneys’ fees and costs) (collectively “
Claims ”), including but not limited to all Claims
for:
(A)
salary and other compensation or
benefits, including, but not limited to, overtime if applicable,
incentive compensation and other bonuses, severance pay, vacation
pay or any benefits under the Employee Retirement Income Security
Act of 1974, as amended or any other applicable local, state or
federal law;
(B)
discrimination, harassment or
retaliation based upon race, color, national origin, ancestry,
religion, marital status, sex, sexual orientation, citizenship
status, pregnancy or any pregnancy related disability, family
status, leave of absence (including but not limited to the Family
Medical Leave Act or any other federal, state or local leave laws),
handicap (including but not limited to The Rehabilitation Act of
1973), medical condition or disability, or any other characteristic
covered by law under Title VII of the Civil Rights Act of 1964, as
amended, the Civil Rights Act of 1991, the Americans with
Disabilities Act, as amended, Sections 1981 through 1988 of the
Civil Rights Act of 1866, and any other federal, state, or local
law prohibiting discrimination in employment, the Worker Adjustment
and Retraining Notification Act, or any other federal, state or
local law concerning plant shutdowns, mass layoffs, reductions
in
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force or other business
restructuring;
(C)
discrimination, harassment or
retaliation based upon age under the Age Discrimination in
Employment Act as amended by the Older Workers Benefit Protection
Act of 1990 (the “ADEA”), or under any other federal,
state, or local law prohibiting age discrimination;
(D)
matters arising under the
Sarbanes-Oxley Act of 2002 and any other federal, state or local
whistleblower laws;
(E)
breach of implied or express
contract (whether written or oral), breach of promise,
misrepresentation, fraud, estoppel, waiver or breach of any
covenant of good faith and fair dealing, including without
limitation breach of any express or implied covenants of any
employment agreement that may be applicable to
Executive;
(F)
defamation, negligence, infliction
of emotional distress, violation of public policy, wrongful or
constructive discharge, or any employment-related tort recognized
under any applicable local, state, or federal law;
(G)
any violation of any Fair Employment
Practices Act, Equal Rights Act; Civil Rights Act; Minimum Fair
Wages Act; or Payment of Wages Act; or any comparable federal,
state or local law;
(H)
any violation of the New York State
Human Rights Law, New York Labor Act, New York Equal Pay Act, New
York City Human Rights Law, New York Civil Rights Law, New York
Rights of Persons with Disabilities Law, New York Sexual
Orientation Non-Discrimination Act, New York Equal Rights Law, the
New York State Workers’ Compensation and Disability Benefit
Laws (including the retaliation provisions thereof), and New York
City Administrative Code and Charter, or any comparable federal,
state or local law;
(I)
costs, fees, or other expenses,
including attorneys’ fees; and
(J)
any other claim, charge, complaint,
lien, demand, cause of action, obligation, damages, liabilities or
the like of any kind whatsoever, including, without limitation, any
claim that this Agreement was induced or resulted from any fraud or
misrepresentation by Company.
Excluded from the release set forth
in this Section 3(a) are: (i) any Claims or rights
to enforce this Agreement against the Company; (ii) any Claims
that may arise after the Effective Date; and (iii) any Claims
that Executive cannot lawfully release. Notwithstanding
anything to the contrary contained herein, also excluded from the
release set forth in this Section 3(a) is
Executive’s right to file a charge with an administrative
agency (including the Equal Employment Opportunity
Commission
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and the National Labor Relations
Board) or participate in any agency investigation. Executive
is, however, hereby waiving Executive’s right to recover
money or other damages in connection with any such charge or
investigation. Executive is also hereby waiving
Executive’s right to recover money in connection with a
charge filed by any other individual or by the Equal Employment
Opportunity Commission, National Labor Relations Board or any other
federal, state or local agency.
(b)
The Released Parties, for good
consideration which they hereby acknowledge receiving, hereby
release Executive from any and all claims, demands, causes of
action, liability or the like which they had, now have or may claim
to have against Executive, as of the Effective Date, whether known
or unknown (it being understood and agreed that excluded from the
release set forth in this Section 3(b) are (i) any
claims or rights to enforce this Agreement against Executive,
(ii) any claims that may arise after the Effective Date and
(iii) any claims that the Company cannot lawfully
release).
4.
Additional Agreements by
Employee .
(a)
BY AGREEING TO THE RELEASE CONTAINED
IN THIS AGREEMENT EXECUTIVE HEREBY KNOWINGLY AND
VOLUNTAR