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SUPERSEDING EMPLOYMENT, SEPARATION, NON-COMPETITION AND GENERAL RELEASE AGREEMENT

NonCompetition Agreement

SUPERSEDING EMPLOYMENT, SEPARATION, NON-COMPETITION AND GENERAL RELEASE AGREEMENT | Document Parties: Scientific Games Corporation You are currently viewing:
This NonCompetition Agreement involves

Scientific Games Corporation

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Title: SUPERSEDING EMPLOYMENT, SEPARATION, NON-COMPETITION AND GENERAL RELEASE AGREEMENT
Governing Law: New York     Date: 3/2/2009
Industry: Casinos and Gaming     Sector: Services

SUPERSEDING EMPLOYMENT, SEPARATION, NON-COMPETITION AND GENERAL RELEASE AGREEMENT, Parties: scientific games corporation
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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


 
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