Exhibit 10.1
SEPARATION AGREEMENT AND
GENERAL RELEASE
This Separation Agreement and General Release
(this “ Separation Agreement ”) is made by and
between NEW YORK MORTGAGE TRUST, INC., a Maryland corporation (the
“ Company ”), and DAVID A. AKRE (“
Executive ”). The Company and the Executive
may be referred to collectively herein from time to time as “
the Parties .”
WHEREAS, the Company and Executive are parties
to that certain Employment Agreement, dated as of January 18, 2008,
by and between the Company and Executive (the “ Employment
Agreement ”); and
WHEREAS, Executive and the Company have mutually
agreed that Executive’s employment with the Company shall
terminate effective as of the Separation Date (as defined below)
and that, effective immediately upon execution and delivery by the
Parties of this Agreement, the Employment Agreement shall be
terminated and shall have no further force or effect whatsoever;
and
WHEREAS, this Separation Agreement shall
supersede and replace in all respects any and all agreements and
understandings between the Company and Executive relating to
Executive’s employment by and/or separation from the Company,
including but not limited to any provisions in the Employment
Agreement that would, by their terms, survive the expiration of
such Employment Agreement.
NOW, THEREFORE, in consideration of the mutual
covenants and agreements herein contained, the Parties agree as
follows:
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Effective
Date of Agreement . This Separation Agreement shall
become effective and enforceable on the eighth day after the
Separation Date (as defined below) (the “ Effective
Date ”). Once effective, all of the terms,
conditions, benefits and restrictions of this Separation Agreement
shall be fully enforceable and binding on the Parties.
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Termination
of Employment .
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Executive
hereby resigns his employment and any and all positions he holds
with the Company and each of its subsidiaries and affiliates,
including but not limited to his positions as Co-Chief Executive
Officer of the Company, a director of the Company, and any and all
other positions he holds with the Company or any of its
subsidiaries or affiliates, in each case effective as of the
Separation Date (as defined below). Effective on the
Separation Date, the Executive shall have no further duties or
responsibilities to be performed for the Company or any of its
subsidiaries or affiliates, other than as specified herein, and
shall have no authority to act or endeavor to act on behalf of the
Company or any of its subsidiaries or affiliates for any reason
whatsoever. For purposes of this Separation Agreement,
Executive’s “ Separation Date ” shall be
February 3, 2009.
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Executive will
not receive any compensation or benefits from the Company after the
Separation Date, except as expressly hereinafter provided in this
Separation Agreement. Executive and the Company each
acknowledges and agrees that valid consideration exists for the
promises contained in this Separation Agreement.
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Consideration to Executive
.
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The Company
shall pay Executive’s accrued Annual Salary that is payable
through and including the Separation Date in accordance with the
Company’s normal payroll practices on the Company’s
next succeeding payroll payment date following the Separation
Date.
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The Company
shall arrange through ADP, the Company’s payroll agent, for
delivery to Executive, within one (1) business day after the
Effective Date, of a check in the amount of $250,000 (Two Hundred
and Fifty Thousand Dollars and No Cents), less applicable
withholding taxes, made payable to the Executive (the “
Separation Payment ”).
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For the period
from the Separation Date until the earlier of August 9, 2010 (the
date that is 18 months after the Separation Date) and the date on
which the Executive is eligible to receive similar coverage under
another employer’s group health insurance plan, Executive
shall be eligible to continue coverage for Executive and his
dependents under the existing group health insurance plan
maintained by the Company for the benefit of its officers and
employees provided Executive timely provides the requisite election
notice required under the Consolidated Omnibus Budget
Reconciliation Act (“COBRA”). During the
period that Executive elects to continue such coverage, Executive
shall pay the monthly premiums for such coverage and the Company
shall reimburse such premium payments within five (5) business days
after Executive presents evidence of payment to the
Company. Executive shall promptly notify the Company
when Executive becomes eligible to receive similar coverage under
another employer’s group health insurance plan.
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The Company
agrees to reimburse Executive for the actual reasonable out of
pocket business expenses incurred by the Executive in connection
with the performance of his duties as Co-Chief Executive Officer of
the Company prior to the date of this Agreement, subject to
delivery by the Executive to the Company of receipts and other
appropriate supporting documentation reasonably requested by the
Company.
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Executive
agrees that he will not retain any data or files that constitute
Confidential Information (as hereinafter defined).
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The Executive
understands and agrees that the payments payable to Executive under
Sections 3(a), 3(b) and 3(c) will be treated by the Company as
compensation expense.
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Waiver,
Release of Claims, and Covenant Not to Sue .
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Executive, for
himself, his agents, personal representatives, heirs and assigns,
hereby unconditionally releases and forever discharges the Company
and all of its affiliated entities and subsidiaries, as well as
their respective officers, directors, partners, owners, employees,
agents, representatives, financial advisors, predecessors and
successors, and all of their respective affiliates, whether in
their individual or representative capacities (collectively “
Released Parties ”), from any and all liability of
every kind and nature whatsoever arising out of or connected in any
way with Executive’s employment, or termination of
employment, by the Company and any of its affiliates or
subsidiaries, or any other matter relating to the Company or any of
its affiliates or subsidiaries, or the business or assets of any of
them, both as to matters now known and those discovered hereafter,
including, without limitation, any and all claims for monetary
relief, injunctive relief, attorney fees, costs, back pay or unpaid
wages, fringe benefits, employment or reinstatement that could have
been raised under common law, wrongful discharge, breach of any
contractual rights, both express or implied, breach of any covenant
of good faith and fair dealing, both express or implied, any tort,
any claim of invasion of privacy, any legal restrictions on the
Released Parties’ rights to terminate employees, and any
federal, state, or other governmental statute, regulation,
ordinance, or directive, specifically including, without
limitation, Title VII of the Civil Rights Act of 1964, the
Americans with Disabilities Act, the Family and Medical Leave Act,
the Fair Labor Standards Act, the Employee Retirement Income
Security Act, the Securities Act of 1933, the Securities Exchange
Act of 1934, and state securities laws. The foregoing
also includes any and all claims Executive could have brought or
could bring as a partner, member, director, officer or employee of
any of the Released Parties and any and all claims Executive may
have, in his capacity as a shareholder, with respect to events
occurring prior to the Separation Date. Executive
covenants not to sue the Released Parties with respect to any of
the released claims or potential claims described
above. The foregoing release does not waive or infringe
Executive’s right to receive the payments and benefits
described in Section 3 hereof. Notwithstanding anything
herein to the contrary, this Separation Agreement shall not impact
or release any rights that Executive may have, under the bylaws of
the Company, applicable insurance policies of the Company,
including but not limited to the Company’s existing director
and officer liability insurance policy, and/or under applicable
law, to indemnification with respect to liabilities, costs, losses
and claims arising from or related to Executive’s service as
an officer, director or employee of the Company, any parent,
subsidiary or affiliate of the Company, or any of the Released
Parties.
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The Company
hereby unconditionally releases and forever discharges Executive,
his agents, personal representatives, heirs and assigns, from any
and all liability whatsoever for any acts, occurrences or omissions
arising out of or connected in any way with Executive’s
performance or discharge of his duties as a director or officer of
the Company, employment, prospective employment, or termination of
employment by the Company and any of its affiliates or
subsidiaries, or any other matter relating to the Company or any of
its affiliates or subsidiaries, or the business or assets of any of
them, both as to matters now known and those discovered hereafter,
except to the extent that the Executive has engaged in any
fraudulent or criminal conduct in the performance of his duties
while employed by the Company (the “ Released Claims
”); provided, however , the Released Claims shall not
include, and the Company is not releasing the Executive for
liability with respect to, existing third party claims against the
Company for which the Executive is not entitled to receive
indemnification from the Company in accordance with the
Company’s Charter, Bylaws or Maryland law. Except
as provided in the immediately preceding sentence, the Released
Claims shall include, without limitation, any and all claims for
monetary relief, injunctive relief, attorney fees, costs and claims
the Compa
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