EXHIBIT 10.6
Separation Agreement and
Release of Claims
This Separation
Agreement and Release of Claims (“Agreement”) is made
by and between Jane Batts, an Employee, and Tandy Brands
Accessories, Inc., Employer (collectively, the
“Parties”).
WHEREAS, Employer is undergoing a reduction-in-force and
restructuring that will result in the elimination or consolidation
of the functions of Employee’s position;
WHEREAS, Employer desires to provide Employee with
separation benefits to assist him/her in the transition resulting
from the elimination of his/her position with Employer;
and
WHEREAS, Employee agrees, in exchange for such separation
benefits, to waive and release any and all claims that s/he may
have against Employer.
NOW,
THEREFORE, in
consideration of the mutual promises and releases contained herein,
and for other good and valuable consideration, the sufficiency of
which is hereby acknowledged, the Parties agree as
follows:
1.
Salary and Benefits Continuation . Upon the execution of
this Agreement, the Parties agree as follows:
|
|
a.
|
|
Employee shall be laid off from
employment with Employer effective January 19, 2008
(hereinafter the “Layoff Date”).
|
|
|
|
|
|
|
|
b.
|
|
Employee will be provided with
his/her final paycheck, including any earned but unused paid time
off, within (6) days of termination date.
|
|
|
|
|
|
|
|
c.
|
|
In
an effort to ease the transition into different employment,
Employer agrees to pay Employee 26 weeks of Employee’s
current base salary, less FIT and FICA withholding, as required by
law, on regularly scheduled pay days commencing on the first
scheduled pay day after the end of the Revocation Period, as
defined herein.
|
|
|
|
|
|
|
|
d.
|
|
Employee agrees that s/he will not
apply or reapply for employment with Employer, and understands that
if s/he does, such application will be rejected pursuant to this
Agreement.
|
|
|
|
|
|
|
|
e.
|
|
Employee acknowledges that by
signing this Agreement and accepting the benefits provided herein,
s/he is receiving benefits to which s/he would not otherwise be
entitled. Employee pledges that s/he has carefully read and fully
understands all the provisions of this Agreement, and that s/he is
signing it voluntarily because s/he wants to take advantage of
Employer’s separation offer as outlined in this
Agreement.
|
|
|
|
|
|
|
|
|
|
|
|
|
Revised
January 2009
|
|
Page 1
|
|
/s/ JB
Employee Initials
|
|
|
f.
|
|
Following the Layoff Date, Employee
shall be entitled to any and all other rights or benefits afforded
to other terminated employees of Employer, including, without
limitation, the right to elect to continue, at Employee’s
cost, coverage under Employer’s health plan, in accordance
with the health care continuation coverage provisions of the
Consolidated Omnibus Budget Reconciliation Act of 1985
(“COBRA”) and applicable law. A separate notice of
COBRA rights will be provided to Employee.
|
|
|
|
|
|
|
|
g.
|
|
The
Parties understand that any vested rights Employee may have under
Employer’s health care program, life insurance program,
employee stock purchase program, employee investment plan, flexible
benefit plan, and flexible spending account are excluded from the
scope of this Agreement, and are not terminated or released by
it.
|
2.
Release . Employee, on behalf of him/herself, his/her
descendants, ancestors, dependents, heirs, executors,
administrators, successors, and assigns, and each of them, hereby
covenants not to sue and fully releases, acquits and discharges
Employer, and its subsidiaries and affiliates, past, present,
future, and each of them, as well as its owners, trustees,
directors, officers, shareholders, agents, servants, employees,
representatives, successors, and assigns, related companies or
entities, jointly and individually, and each of them (collectively
referred to as “Releasees”) with respect to and from
any and all claims, wages, demands, assistance, support, rights,
liens, agreements, contracts, covenants, actions, suits, rights to
appeal, entitlements and notices, causes of action, obligations,
debts, costs, expenses, interests, attorneys’ fees,
contributions, damages, judgments, orders and liabilities of
whatever kind or nature in law, equity, or otherwise, whether known
or unknown, suspected or unsuspected, and whether or not concealed
or hidden, which Employee has at any time heretofore owned or held
against said Releasees, including, without limitation, those
arising out of or in any way connected with his/her employment
relationship with Employer, or Employee’s layoff or any other
transactions, occurrences, acts or omissions, or any loss, damage,
or injury whatever, known or unknown, suspected or unsuspected,
resulting from any of them, committed or omitted prior to the date
of this Agreement, and including, without limitation, claims for
breach of contract, libel, slander, wrongful discharge, intentional
infliction of emotional harm, or other tort, or discrimination or
harassment based upon any federal, state, or municipal statute or
local ordinance relating to discrimination in employment. Employee
does not waive his/her right to pursue claims for unemployment
compensation. The claims waived and discharged include, but are not
limited to those arising under the following:
Title VII of
the Civil Rights Act of 1964; Executive Order 11246; Equal Pay Act;
Vietnam Era Veteran Readjustment Assistance Act; Civil Rights Act
of 1991; 42 U.S.C. 1981 (the 1866 Civil Rights Act); Americans with
Disabilities Act; Employee Retirement Income Security Act; Family
and Medical Leave Act; Fair Labor Standards Act; all laws,
including the common laws of the State of Texas regarding
employment-related claims; disputed wages, including claims for any
back wages or overtime; wrongful discharge and/or breach of
contract claims; and tort claims, including invasion of privacy,
defamation, fraud, and infliction of emotional distress.
|
|
|
|
|
|
|
|
|
|
|
|
Revised
January 2009
|
|
Page 2
|
|
/s/ JB
Employee Initials
|
3.
Indemnity Regarding Assignment of Claims . Employee
represents and warrants that s/he has not heretofore assigned or
transferred, or purported to assign or transfer, to any person,
entity, or individual whatsoever, any of the claims released as set
forth in Paragraph 2, above. Employee agrees to indemnify and
hold harmless the Releasees (as defined in Paragraph 2, above)
against any claim, demand, debt, obligation, liability, cost,
expense, right of action, or cause of action based on, arising out
of, or in assignment. Employee agrees that s/he will not bring any
legal action against the Releasees for any claim that occurred
prior to signing this Agreement. However, this stipulation does not
prohibit Employee from filing a lawsuit for the sole purpose of
enforcing his/her rights under this Agreement, or from enforcing
rights that may arise subsequent to the signing of this Agreement.
Employee agrees that if a claim s/he has waived or discharged under
this Paragraph 3 is prosecuted in his/her name, or on his/her
behalf before any court or administrative agency, s/he waives and
agrees not to take any award of money or other damages from such
suit. Employee also agrees that if a claim waived or discharged
under this Paragraph 3 is prosecuted in his/her name, s/he
will immediately request in writing that the claim on his/her
behalf be withdrawn. Employee also agrees that s/he waives on
behalf of him/herself and his/her attorneys all claims for
attorneys’ fees and expenses, and court costs for any claim
waived and discharged under this Paragraph 3.
4.
Release, Waiver, and Covenant Not to Sue
|
