THIS IS A RELEASE. YOU SHOULD READ IT CAREFULLY
BEFORE YOU SIGN IT.
SEPARATION AGREEMENT AND GENERAL
RELEASE
THIS
SEPARATION AGREEMENT AND GENERAL RELEASE (“Agreement”)
is made and entered into on the date this Agreement is fully
executed (the “Agreement Date”) by and between GUILFORD
PHARMACEUTICALS INC. (the “Company”) and Nancy J. Linck
(“Employee”).
WHEREAS, the parties desire to set forth in this
Agreement the terms upon which they have mutually agreed to an
orderly termination of Employee’s employment with the
Company;
NOW
THEREFORE, in consideration of the foregoing and of other
considerations contained in this Agreement, the parties agree as
follows:
|
|
1.
|
|
Separation
of Employment . Employee
acknowledges that Employee’s employment with the Company will
cease upon the close of business on April 20, 2005
(“Effective Date”) and agree that Employee has no right
to further employment by the Company after that date. Further,
Employee acknowledges that Employee’s last day of work is
April 15, 2005.
|
|
|
2.
|
|
Severance
and Other “Benefits” . In consideration of the covenants and
agreements made by Employee hereunder, the Company will, commencing
upon the eighth day after this Agreement has been executed by
Employee (provided that such execution has not been revoked by
Employee prior thereto):
|
|
|
(a)
|
|
Pay Employee a
total severance of $264,805, which will be paid following
Company’s regular payroll process, in increments to resemble
regular pay checks, less applicable taxes and
withholdings;
|
|
|
(b)
|
|
Employee will
continue on medical benefits as an employee through April 30,
2005 and may enroll in COBRA benefits thereafter. Should Employee
elect COBRA coverage, Company will pay any premiums due, subject to
the provisions of Section 3 below, while Employee is receiving
severance. Information concerning COBRA rights and costs will be
provided under separate cover, following usual Company
process;
|
|
|
(c)
|
|
Employee will
be eligible to participate in up to 12 months of outplacement
support through Right Management Consultants, provided Employee
initiates participation in the outplacement program within
60 days of the Effective Date;
|
|
|
(d)
|
|
Employee will
be eligible for the reimbursement of expenses relating to the
preparation of 2004 and 2005 taxes, to a maximum of $5,000 for each
year. Submissions for reimbursement for 2004 taxes must be
submitted no later than May 15, 2005 to be eligible for
reimbursement. Submissions for reimbursement for 2005 taxes must be
submitted no later than May 15, 2006 to be eligible for
reimbursement. Submissions received after the above noted dates
will be considered ineligible for reimbursement;
|
|
|
(e)
|
|
Company will
transfer complete and full ownership of the laptop currently
assigned to Employee, as well as all non-proprietary software on
that laptop, to Employee, with no guarantees or
warrantees;
|
|
|
(f)
|
|
Employee will
receive $17,288.71, less applicable taxes and withholdings, as
payout of 135.8 hours of accrued and unused vacation, corresponding
with the April 29, 2005 paycheck.
|
|
|
3.
|
|
Cessation of
Medical Benefits . If
Employee gains medical benefits prior to the exhaustion of the
severance payments described in Section 2(a) above, Employee will
notify Company of the impending coverage prior to the commencement
thereof and the COBRA premium payments will terminate immediately
prior to the commencement of Employee’s medical benefit
coverage under the new benefit plan.
|
|
|
4.
|
|
Other
Benefits . Except as
provided in Section 2 of this Agreement, the Company shall not
be obligated to make any other payments, or provide any other
benefits to Employee, following the Effective Date. Without
limiting the generality of the foregoing, all vesting of stock
options, eligibility for matching grants and all other benefits
shall terminate on the Effective Date.
|
|
|
5.
|
|
GENERAL
RELEASE OF CLAIMS AND PROMISE NOT TO SUE . IN CONSIDERATION OF THE BENEFIT DESCRIBED IN
SECTION 2, EMPLOYEE, ON BEHALF OF EMPLOYEE, EMPLOYEE’S HEIRS,
EXECUTORS, ADMINISTRATORS, SUCCESSORS AND ASSIGNS, HEREBY RELEASES,
ACQUITS AND FOREVER DISCHARGES THE COMPANY AND ANY AND ALL OF ITS
CURRENT OR FORMER SUBSIDIARIES AND OTHER AFFILIATED ENTITIES AND
BENEFIT PLANS, AS WELL AS ITS AND/OR THEIR OFFICERS, DIRECTORS,
REPRESENTATIVES, ATTORNEYS, AGENTS, SERVANTS, EMPLOYEES,
STOCKHOLDERS, SUCCESSORS, PREDECESSORS AND AFFILIATES (FOR PURPOSES
OF THIS SECTION 5, ALL INCORPORATED IN THE DEFINITION OF THE
“COMPANY”) FROM ANY AND ALL CLAIMS, LIABILITIES,
DEMANDS, CAUSES OF ACTION, COSTS, EXPENSES, ATTORNEY’S FEES,
DAMAGES, INDEMNITIES AND OBLIGATIONS OF EVERY KIND AND NATURE, IN
LAW, IN EQUITY OR OTHERWISE, KNOWN OR UNKNOWN, SUSPECTED OR
UNSUSPECTED, DISCLOSED AND UNDISCLOSED, ARISING OUT OF OR IN ANY
WAY RELATED TO AGREEMENTS, ACTS OR CONDUCT AT ANY TIME AS OF OR
PRIOR TO THE EFFECTIVE DATE, INCLUDING, BUT NOT LIMITED TO: ALL
SUCH CLAIMS OR DEMANDS ARISING FROM EMPLOYEE’S EMPLOYMENT OR
THE TERMINATION OF EMPLOYEE’S EMPLOYMENT; ALL SUCH CLAIMS AND
DEMANDS RELATED TO SALARY, BONUSES, COMMISSIONS, STOCK, STOCK
OPTIONS, (EXCEPT THAT EMPLOYEE SHALL HAVE THE RIGHT TO EXERCISE ANY
VESTED AND UNEXERCISED STOCK OPTIONS PREVIOUSLY GRANTED
TO
|
|