Exhibit 10.2
EMPLOYMENT SEPARATION AND GENERAL
RELEASE AGREEMENT
This Employment
Separation and General Release Agreement (this “
Separation Agreement ”), is entered into this
31 st day of March, 2009 by and
between Glenn R. Wienkoop, an individual (“
Wienkoop ”), and MSC.Software Corporation, a
Delaware corporation (“ MSC
”).
WHEREAS , Wienkoop has been employed as the President
and Chief Operating Officer of MSC since August, 2005,
and
WHEREAS , Wienkoop and MSC have mutually agreed to
terminate Wienkoop’s employment relationship with MSC upon
the terms set forth herein.
NOW, THEREFORE
, in consideration of the covenants
undertaken and the releases contained in this Separation Agreement,
Wienkoop and and MSC agree as follows:
1. Termination .
Wienkoop’s position as an officer, director, employee,
member, manager and in any other capacity with MSC and each of its
affiliates terminated effective March 11, 2009 (“
Separation Date ”), and all benefits and
perquisites of employment ceased as of the Separation
Date. All payments due to Wienkoop from MSC shall be
determined under the applicable provisions of this Separation
Agreement. Except for the payments referred to in the next
sentence, Wienkoop acknowledges and agrees that he has received all
amounts owed for his regular and usual salary (including, but not
limited to, any severance, overtime, bonus, commissions, or other
wages), usual benefits and accrued but unused vacation through the
Separation Date and that all payments due to Wienkoop from MSC
after the Separation Date shall be determined under this Separation
Agreement. On or before April 15, 2009, MSC will pay Wienkoop
(1) One Hundred Fifty Three Thousand Three Hundred Thirty
Three Dollars ($153,333), less standard withholding and authorized
deductions, as a bonus for 2008, and (2) Five Hundred Dollars
($500), less standard withholding and authorized deductions, for a
television and couch left by Wienkoop at a residential property in
Newport Beach, California provided to him by MSC (the “
Newport Beach Residence ”). Wienkoop will not
be entitled to any bonus with respect to 2009. In addition, MSC
will reimburse Wienkoop for his reasonable expenses incurred in
packing and shipping his household goods and vehicles from the
Newport Beach Residence; provided, however, that in no event shall
the maximum aggregate amount of such reimbursement exceed Five
Thousand Dollars ($5,000) and provided, further, that any such
reimbursement shall be contingent upon Wienkoop’s submitting
to MSC a valid receipt documenting the related expense not more
than thirty (30) days after such expense was
incurred.
2. Severance Benefit . MSC
shall pay as severance pay to Wienkoop the amount of Three Hundred
and Ninety Eight Thousand Two Hundred and Sixty Eight
dollars ($398,268.00), less standard withholding and
authorized deductions (the “ Severance Amount
”). Such Severance Amount shall be shall be paid in
twelve (12) substantially equal monthly installments, with the
first such installment to be paid not later than April 30,
2009. In addition, during the twelve-month period following the
Separation Date, MSC shall either pay or reimburse Wienkoop for one
hundred percent (100%) of Wienkoop’s premiums to
continue for such period under the Consolidated Omnibus Budget
Reconciliation Act (“ COBRA ”) the same
or reasonably equivalent medical coverage for Wienkoop (and, if
applicable, Wienkoop’s eligible dependents) as in effect
immediately prior to the Separation Date. For each such month,
Wienkoop shall also be entitled to continued supplemental medical
benefit coverage under MSC’s executive medical benefit
program as in effect immediately prior to the Separation Date. (The
Severance Amount and the health benefits provided under the
preceding two sentences are collectively referred to as the “
Severance Benefit .”) A listing of all of
Wienkoop’s equity awards vested as of the Separation Date is
listed on Exhibit A attached hereto (to the extent so
vested, the “ Vested Equity Awards ”).
Wienkoop has no rights with respect to any other equity awards
granted by MSC. Schedule
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A also sets forth the aggregate balance of
Wienkoop’s nonqualified deferred compensation account as of
December 31, 2008, which account (as adjusted through the date
of final distribution) shall be paid out in accordance with the
terms of MSC’s nonqualified deferred compensation plan (the
“ Deferred Compensation Benefit ”).
Wienkoop specifically acknowledges and agrees that he is entitled
to receive no severance pay or other benefits pursuant to any
severance plan or policy of MSC or any of its
affiliates.
3. Release . Wienkoop on
behalf of himself, his descendants, dependents, heirs, executors,
administrators, assigns, and successors, and each of them, hereby
covenants not to sue and fully releases and discharges MSC and each
of its parents, subsidiaries and affiliates, past and present
(together, the “ Company Group ”), as
well as its and their trustees, directors, officers, members,
managers, partners, agents, attorneys, insurers, employees,
stockholders, representatives, assigns, and successors, past and
present, and each of them, hereinafter together and collectively
referred to as the “ Releasees ,” with
respect to and from any and all claims, wages, demands, rights,
liens, agreements, contracts, covenants, actions, suits, causes of
action, obligations, debts, costs, expenses, attorneys’ fees,
damages, judgments, orders and liabilities of whatever kind or
nature in law, equity or otherwise, whether now known or unknown,
suspected or unsuspected, and whether or not concealed or hidden,
which he now owns or holds or he has at any time heretofore owned
or held or may in the future hold as against any of said Releasees,
arising out of or in any way related to his service as an officer,
director, employee, member or manager of any member of the Company
Group, his separation from his position as an officer, director,
employee, manager and/or member, as applicable, of any member of
the Company Group, or any other transactions, occurrences, acts or
omissions or any loss, damage or injury whatever, known or unknown,
suspected or unsuspected, resulting from any act or omission by or
on the part of said Releasees, or any of them, committed or omitted
prior to the date of this Separation Agreement related to
Wienkoop’s employment or service with any member of the
Company Group, including, without limiting the generality of the
foregoing, any claim under Title VII of the Civil Rights Act of
1964, the Americans with Disabilities Act, the Age Discrimination
in Employment Act, the Family and Medical Leave Act of 1993, the
California Fair Employment and Housing Act, the California Family
Rights Act, or any claim for severance pay, bonus, sick leave,
holiday pay, vacation pay, life insurance, health or medical
insurance or any other fringe benefit, workers’ compensation
or disability; provided that such release shall not apply to
(1) any obligation created by or arising out of this
Separation Agreement for which receipt or satisfaction has not been
acknowledged, (2) any right to indemnification that Wienkoop
may have pursuant to MSC’s Bylaws or its certificate of
incorporation with respect to any loss, damages or expenses
(including but not limited to attorneys’ fees) that Wienkoop
may in the future incur with respect to his service as an employee,
officer or director of MSC or any of its subsidiaries or
affiliates, (3) with respect to any rights that Wienkoop may
have to insurance coverage for such losses, damages or expenses
under any MSC directors and officers liability insurance policy,
(4) any right with respect to the Vested Equity Awards
pursuant to the written equity-based award agreements entered into
by and between MSC and Wienkoop before the Separation Date to the
extent that such right continues after the Separation Date in
accordance with the terms of the award, (5) the right of
Wienkoop to obtain contribution as permitted by law in the event of
an entry of judgment against Wienkoop as a result of any act or
failure to act for which Wienkoop and MSC are jointly liable,
(6) any rights to continued medical coverage that Wienkoop may
have under COBRA, (7) any rights to payment of benefits that
Wienkoop may have under a retirement plan sponsored or maintained
by MSC that is intended to qualify under Section 401(a) of the
Internal Revenue Code of 1986, as amended, and
(8) Wienkoop’s right to receive payment of the Deferred
Compensation Benefit.
4. 1542 Waiver
. It is the
intention of Wienkoop in executing this instrument that the same
shall be effective as a bar to each and every claim, demand and
cause of action hereinabove specified. In furtherance of this
intention, Wienkoop hereby expressly waives any and all rights and
benefits conferred upon him by the provisions of SECTION 1542
OF THE CALIFORNIA CIVIL CODE and expressly
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consents that this Separation Agreement shall be
given full force and effect according to each and all of its
express terms and provisions, including those related to unknown
and unsuspected claims, demands and causes of action, if any, as
well as those relating to any other claims, demands and causes of
action hereinabove specified. SECTION 1542
provides:
“A GENERAL RELEASE DOES NOT
EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO
EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.”
Wienkoop acknowledges that he may
hereafter discover claims or facts in addition to or different from
those which Wienkoop now knows or believes to exist with respect to
the subject matter of this Separation Agreement and which, if known
or suspected at the time of executing this Separation Agreement,
may have materially affected this settlement. Nevertheless,
Wienkoop hereby waives any right, claim or cause of action that
might arise as a result of such different or additional claims or
facts. Wienkoop acknowledges that he understands the
significance and consequences of such release and such specific
waiver of SECTION 1542.
5. ADEA Waiver
. Wienkoop
expressly acknowledges and agrees that by entering into this
Separation Agreement, he is waiving any and all rights or claims
that he may have arising under the Age Discrimination in Employment
Act of 1967, as amended, which have arisen on or before the date of
execution of this Separation Agreement. Wienkoop further
expressly acknowledges and agrees that:
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a.
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In return for
this Separation Agreement, he will receive consideration beyond
that which he was already entitled to receive before entering into
this Separation Agreement;
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b.
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He is hereby
advised in writing by this Separation Agreement to consult with an
attorney before signing this Separation Agreement;
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c.
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He was given a
copy of this Separation Agreement on March 27, 2009 and
informed that he had twenty-one (21) days within which to
consider this Separation Agreement and that if he wished to execute
this Separation Agreement prior to expiration of such 21-day
period, he should execute the Acknowledgement and Waiver attached
hereto as Exhibit B ; and
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d.
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He was informed
that he had seven (7) days following the date of execution of
this Separation Agreement in which to revoke this Separation
Agreement.
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6. No Transferred Claims
. Wienkoop warrants
and represents that he has not heretofore assigned or transferred
to any person not a party to this Separation Agreement any released
matter or any part or portion thereof and he shall defend,
indemnify and hold MSC and each of its affiliates harmless from and
against any claim (including the payment of attorneys’ fees
and costs actually incurred whether or not litigation is commenced)
based on or in connection with or arising out of any such
assignment or transfer made, purported or claimed.
7. Removal of Certain
Property; Return of Property . Wienkoop acknowledges that an automobile
belonging to him is currently located (if not heretofore removed by
Wienkoop) at the Newport Beach Residence. Wienkoop agrees to remove
such vehicle from the property (if not already so removed) within
thirty (30) days following the date hereof. If such vehicle
has not been removed from the property within such 30-day period,
MSC will arrange to have such vehicle removed and placed in storage
at Wienkoop’s expense. In no event will MSC have any
liability (for expenses, damage or otherwise) with
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respect to such vehicle (while it is located at
the Newport Beach Residence, being transported, in storage or
otherwise). Wienkoop represents and warrants that he has returned
to MSC all keys to Newport Beach Residence that were ever in his
possession, that he has not permitted any other person to retain or
duplicate any such key, and that to his knowledge no person (other
than a person continuing in the employ of MSC after the date
hereof) is currently in possession of such a key. Wienkoop
represents and warrants that he has not removed from Newport Beach
Residence any furnishings or other property other than his own
personal possessions. Wienkoop represents and warrants that he has
not taken, or otherwise caused or permitted there to be taken, and
to his knowledge there has not been taken, from Newport Beach
Residence any furnishings or other property paid for by MSC
(including any such property which Wienkoop or another individual
may have initially purchased but for which such individual received
reimbursement from MSC). Wienkoop represents and warrants that he
has truthfully and faithfully accounted for and delivered to MSC
all property belonging to MSC or any of its subsidiaries or other
affiliates. If property belonging to MSC or any of its subsidiaries
or other affiliates is determined to be in Wienkoop’s
possession or has been transferred by Wienkoop to any other person
without MSC’s consent, Wienkoop shall immediately deliver or
cause there to be delivered to MSC all such property and, if not so
returned, MSC shall (without limiting any of MSC’s other
rights or remedies in the circumstances) be entitled to offset any
payments remaining due to Wienkoop under Section 2 of this
Separation Agreement by MSC’s cost to replace such property.
Wienkoop is, however, permitted to retain his personal home
computer and papers and other materials of a personal nature,
including personal diaries, calendars and personal rolodexes,
personal information relating to his compensation or relating to
the reimbursement of expenses, personal information that he
reasonably believes are needed for tax purposes and copies of
MSC’s compensatory plans, programs and agreements relating to
his compensation as an employee.
8. Non-Competition
. Wienkoop
acknowledges and recognizes the highly competitive nature of
MSC’s businesses, the amount of sensitive and confidential
information involved in the discharge of Wienkoop’s position
with MSC, and the harm to MSC that would result if such knowledge
or expertise was disclosed or made available to a
competitor. Based on that understanding, Wienkoop hereby
expressly agrees as follows:
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a.
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As a result of the particular
nature of Wienkoop’s relationship with MSC, in the capacities
identified earlier in this Separation Agreement, for the longer of
(a) 12 months following the Separation Date or (b) any
period that Wienkoop is receiving payments pursuant to
Section 2, Wienkoop hereby agrees that he will not, directly
or indirectly, (i) engage in any business for Wienkoop’s
own account or derive any material economic benefit from any
business that competes with the business of MSC or any of its
affiliates (MSC and its affiliates are referred to, collectively,
as the “ Company Group ”),
(ii) enter the employ of, or render any services to, any
person engaged in any business that competes with the business of
any entity within the Company Group, (iii) acquire a financial
interest in any person engaged in any business that competes with
the business of any entity within the Company Group, directly or
indirectly, as an individual, partner, member, shareholder,
officer, director, principal, agent, trustee or consultant, or
(iv) other than in the performance of his duties hereunder,
interfe
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