AGREEMENT AND GENERAL RELEASERelease Agreement |
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Exhibit 10.2
AGREEMENT AND GENERAL RELEASE
This Agreement and General Release (the “Agreement”) is made and entered into by and between Robert Main, his heirs, executors, administrators and assigns (collectively “Main”), and 1-800 CONTACTS, INC. (“1-800 CONTACTS”).
RECITALS
a. The parties have decided to end Main’s employment with 1-800 CONTACTS, effective November 30, 2006, on the terms and conditions described in this Agreement;
b. Main and 1-800 CONTACTS desire to settle fully and finally all differences between them, if any, including but not limited to, any differences in any way related to or arising out of Main’s employment with 1-800 CONTACTS or the termination of his employment; and
c. Main has agreed to certain obligations in exchange for consideration provided under this Agreement.
COVENANTS
In consideration of the mutual promises in this Agreement, it is agreed as follows:
1.
Severance Payments. After 10 days following his execution of this
Agreement, Main will begin receiving as severance the equivalent of one
year’s salary of $210,000.00, less applicable withholding.
Severance payments will be made over a 12 month period corresponding to the
intervals of 1-800 CONTACTS’ regular payroll.
2.
Bonus. On or about March 2007, Main will receive a
bonus payment that will be calculated and paid in accordance with an assessment
of Main’s 2006 performance and 1-800 CONTACTS’ 2006
performance. The bonus amount otherwise payable shall be prorated by
11/12 (representing 11 months worked in 2006).
3.
Health Benefits. For a period of twelve months following
termination of Main’s employment, 1-800 CONTACTS shall pay the regular
employer and employee portion of Main’s health insurance premium assuming
he elects continuation coverage under the Consolidated Omnibus Budget
Reconciliation Act (COBRA) and remains eligible under it and does not become
covered under a new employer’s health plan.
4.
Relocation expenses. 1-800 CONTACTS will reimburse Main up to a
maximum of $50,000.00 for reasonable, actual, and properly documented
relocation expenses, provided that if he moves as a result of new employment,
he makes reasonable efforts to have his new employer pay for his relocation
expenses, in which event 1-800 CONTACTS will reimburse him for relocation
expenses not otherwise covered by the new employer, if any.
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5.
Transitional Cooperation. For a period of twelve months following
his execution of this Agreement, Main agrees to assist and cooperate in the
transition and reassignment of his former duties and responsibilities to
others. Main will make himself available upon request to answer questions
and provide information and guidance in this transitional process. During
this period and thereafter, Main will also make himself available and cooperate
in any legal proceeding that may relate to his duties or employment at 1-800
CONTACTS and to testify if requested by 1-800 CONTACTS.
6.
Non-Disparagement/Non-Interference. Main agrees that he will not make any
disparaging remarks about 1-800 CONTACTS or its employees to any persons
whatsoever, and that he will refrain from casting any aspersions as to the
quality of their work, products, services, competence, ethics or
management. Main further agrees not to directly or indirectly interfere
or undermine 1-800 CONTACTS’ reputation or relationships with 1-800
CONTACTS’ employees, contractors, vendors, customers or prospects or to
discourage anyone from doing business or affiliating with 1-800 CONTACTS.
7.
Restricted Shares. Main understands and agrees that other than
the 3,000 shares of 1-800 CONTACTS’ restricted stock that previously
vested, he has no right, entitlement or interest in any stock or other form of
ownership in 1-800 CONTACTS now or in the future, and that any existing or
potential rights that he has or may have under the Restricted Stock Agreement
dated March 27, 2006 are superseded and canceled by this Agreement and are null
and void.
8.
Expenses. Main agrees to submit his final expense claim
to 1-800 CONTACTS within five (5) days of executing this Agreement.
9.
General Release. As a material inducement to 1-800
CONTACTS to enter into this Agreement, Main, on behalf of his heirs, executors,
administrators and assigns, irrevocably and unconditionally releases, acquits
and forever discharges 1-800 CONTACTS, its officers, directors, owners,
partners, agents, predecessors, successors, affiliates, subsidiaries, parent
companies, insurers and current and former employees from any and all charges,
complaints, claims, liabilities and obligations of any nature whatsoever,
including but not limited to, rights or claims arising out of contract, express
or implied, any covenant of good faith and fair dealing, any tort, Title VII of
the Civil Rights Act of 1964, as amended, the 1991 Civil Rights Act, the
Americans With Disabilities Act, the Fair Labor Standards Act, the Family and
Medical Leave Act, the Employee Retirement Income Security Act of 1974, or any
other federal, state or other governmental statute, regulation or ordinance,
any rights or claims for wages, vacation, overtime, commissions, bonuses,
stock, stock options, entitlements or benefits, which Main now has, or claims
to have, or which he at any time hereinafter may have or claim to have, whether
known or unknown as of the date that this Agreement is fully executed.
10. Waiver of Unknown Claims. Main expressly waives the benefits of
any rule or law that provides, in sum or substance, that a release does not
extend to claims which the party does not know or suspect to exist in his favor
at the time of executing the release, which if known by
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