Exhibit 10.2.2
RETIREMENT AND GENERAL RELEASE
AGREEMENT
This Retirement and General Release Agreement
(the “Agreement”) is entered into this 23rd day of
January, 2008, by and among Avocent Huntsville Corp.
(“Employer”), Avocent Corporation, and
John R. Cooper (“Mr. Cooper”) to set
forth the terms and conditions of the termination of
Mr. Cooper’s employment with Avocent Huntsville Corp.
and its affiliates, including without limitation Avocent
Corporation. Avocent Huntsville Corp. and Avocent Corporation
are collectively referred to as “Employer” in this
Agreement.
1.
Termination
of
Employment; Resignation as Chairman. Employer and Mr. Cooper hereby
agree that, effective at the close of business on
March 31, 2008 (the “Effective Date”),
Mr. Cooper will resign as a Director and as the Chief
Executive Officer and employee of Avocent Corporation and of each
of its affiliates, which resignations are hereby accepted by
Avocent Corporation on behalf of itself and each affiliate.
Mr. Cooper and Employer agree that Mr. Cooper’s
termination of employment shall be deemed a “Termination
Other Than For Cause” as defined in Sections 2.4 and 4.2 of
that certain Amended and Restated Employment and Noncompetition
Agreement among Mr. Cooper, Avocent Huntsville Corp., and
Avocent Corporation dated December 13, 2006 (the
“Employment Agreement”) and that the benefits described
in this Agreement are pursuant to the terms of that Employment
Agreement. Effective immediately, Mr. Cooper hereby
resigns as the Chairman of the Board of Directors of Avocent
Corporation.
2.
Benefits
. Mr. Cooper
shall be entitled to receive his current pay ($523,000 per annum)
and benefits through March 31, 2008. Thereafter,
in consideration
for the release from Mr. Cooper described in Section 8 of
this Agreement and in lieu of any other benefits otherwise due to
Mr. Cooper under law or by agreement, Employer and
Mr. Cooper agree that, subject to compliance by
Mr. Cooper with the terms and conditions of the Employment
Agreement and this Agreement (including the noncompetition and
confidentiality provisions described in Section 11) and in
exchange for Mr. Cooper’s signature on this Agreement
and on Attachments A and B , Mr. Cooper will:
(a)
On October 2, 2008, receive a lump sum payment of One Million
Three Hundred Eighty One Thousand One Hundred Fifty-Three Dollars
and Seventy Cents ($1,381,153.70), less required withholding and
deductions (including without limitation amounts determined by
Employer as the employee-paid premium for the health plan coverage
described in Section 2(d) below).
(b)
Be able to exercise the following vested options to purchase
Avocent Corporation shares on or before the following specified
exercise dates under the terms and conditions of the various stock
option plans of Avocent Corporation and its affiliates under which
Mr. Cooper has previously been granted options:
1
|
Grant Date
|
|
Exercise Date
|
|
Shares
|
|
Exercise Price
|
|
|
9/18/00
|
|
9/17/2010
|
|
40,000
|
|
$
|
52.4375
|
|
|
2/22/02
|
|
9/30/2010
|
|
130,000
|
|
$
|
21.5600
|
|
|
3/7/03
|
|
9/30/2010
|
|
112,500
|
|
$
|
27.2500
|
|
|
2/5/04
|
|
9/30/2010
|
|
75,000
|
|
$
|
40.9800
|
|
|
6/30/05
|
|
9/30/2010
|
|
28,000
|
|
$
|
26.1400
|
|
Mr. Cooper acknowledges
that he must exercise all vested options by the Exercise Dates set
forth above under the terms and conditions specified in the stock
option plans of Avocent Corporation and its affiliates or these
options will terminate and expire.
(c)
On the Effective Date, vest in the following unvested restricted
stock units and earned performance shares, and on such date and on
the subsequent delivery date, the minimum statutorily required
federal, state, and local withholding taxes with respect to such
restricted stock units and earned performance shares will be paid
by reducing the number of vested restricted stock units (which are
payable in Avocent shares) and earned performance shares actually
delivered to Mr. Cooper, which such shares shall be delivered
to Mr. Cooper with any restrictive legends required by the
applicable securities laws and regulations on
October 2, 2008:
|
|
|
Unvested
|
|
|
|
|
|
|
|
2006 Awards
|
|
|
|
|
2
year RSUs
|
|
0
|
|
|
3
year RSUs
|
|
8,602
|
|
|
Earned Performance Shares
|
|
6,366
|
|
|
2006 Total
|
|
14,968
|
|
|
|
|
|
|
|
2007 Awards
|
|
|
|
|
3
year RSUs
|
|
17,205
|
|
|
Earned Performance Shares
|
|
0
|
|
|
2007 Total
|
|
17,205
|
|
|
|
|
|
|
|
TOTAL
|
|
32,173
|
|
(d)
Through March 31, 2010, be eligible for employee and
dependent coverage under Employer’s medical (including annual
visits to the Cooper Clinic), dental, Section 125 medical
reimbursement, and supplemental long-term disability plans in which
Mr. Cooper is a participant to the same extent as available to
him prior to the Effective Date.
2
Mr. Cooper further acknowledges and agrees
that the benefits in this Section 2 include payment for all
his wages and accrued but unused vacation, personal, sick leave,
and other paid-time off through March 31, 2008, and
Mr. Cooper also acknowledges that he will not accrue any
additional vacation or be eligible for any other incentive, bonus,
or commission payments from Employer for 2007 or 2008 (except
amounts previously paid to him and any matching
401(k) contribution that Employer makes on behalf of all
eligible employees for compensation in 2008).
3.
Duties .
Mr. Cooper agrees that, from the date of this Agreement
through the Effective Date he will actively assist the Board of
Directors of Avocent Corporation in assuring an orderly transition
of his executive and management responsibilities, and thereafter,
he will be reasonably available upon advance notice to confer and
consult with Employer on matters with which he is
familiar.
4.
Performance of Duties, Pay. Mr. Cooper acknowledges that he
will be entitled to receive the consideration specified in
Section 2 of this Agreement only if (i) at the time any
such consideration is payable, he is not in material breach of this
Agreement (including the obligation to provide the services
described in Section 3 of this Agreement and the
confidentiality and noncompetition obligations described in his
Employment Agreement and in Section 11 this Agreement), and
(ii) he signs and returns Attachment A confirming that
he does not revoke the Agreement, and provided that Attachment
A is signed not fewer than eight (8) calendar days after
Mr. Cooper signs this Agreement. Mr. Cooper also
understands and agrees that, as an additional condition to
receiving or retaining the consideration (including any Avocent
shares received on the acceleration of the vesting of restricted
stock units or performance shares) provided for in Section 2
of this Agreement, Mr. Cooper must execute and return to
Employer the Confirmation of Retirement and General Release
Agreement attached as Attachment B , which may not be signed
any earlier than April 1, 2008.
5.
Medical Insurance . Pursuant to his rights under the
federal COBRA statute and regulations and subject to the conditions
of COBRA, Mr. Cooper and his eligible dependents will have the
opportunity to continue group medical insurance through Employer
after March 31, 2010, for a period of eighteen (18)
months at his expense.
6.
Return of Property. Mr. Cooper will not have an
office at Employer after the Effective Date. On the Effective
Date, he agrees to return all other Employer property in his
possession or under his control, including, but not limited to,
files, documents of any kind, notebooks, lab books, laptop
computer, cell phone, credit cards, keys and access cards to
Employer, including all copies of Employer information in any form
or media, and not to delete any Employer information which may be
contained on any Employer computers or on electronic media prior to
returning such items to the Employer.
7.
Covenant Not to Sue . Mr. Cooper represents that
he has not filed any complaints, charges, or lawsuits against
Employer, or any of their affiliates, and Mr. Cooper agrees
that he will not do so at any time hereafter other than to enforce
the terms of this Agreement. Employer represents that it has
not filed any complaints, charges, or lawsuits against
3
Mr. Cooper and that, on the date of this Agreement, the
members of Avocent Corporation’s Board of Directors have no
actual knowledge of any basis for doing so.
8.
Complete Release . In consideration for the
continuation of employment through the Effective Date, the payment
of benefits to Mr. Cooper, and other benefits set forth in
this Agreement, John R. Cooper, on behalf of himself, his marital
community, and his and their heirs, successors, and assigns,
releases and discharges Avocent Corporation, Avocent Huntsville
Corp, and their affiliated and predecessor corporations, their
employee benefit plans, their current and former directors,
officers, agents, employees, and attorneys, and each of their
respective successors and assigns (the ̶
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