SEPARATION AGREEMENT, GENERAL
RELEASE OF ALL CLAIMS
AND COVENANT NOT TO SUE
This Separation
Agreement, General Release of All Claims and Covenant Not to Sue
(the “Agreement”) is entered into as of the 31st day of
October, 2006 by and between Indus International, Inc. (hereinafter
“Company”) and John D. Gregg (hereinafter
“Employee”).
WHEREAS, Employee
has worked for Company as Executive Vice President of Field
Operations;
WHEREAS, after
discussion, Employee has decided to voluntarily resign from his
employment with the Company;
WHEREAS, Employee
and Company have mutually agreed that it is in their respective
best interests to bring the employment of Employee to an end under
the terms of this Agreement;
WHEREAS, the
decision has been made that Employee’s final day of
employment at the Company will be October 31 2006 (the
“Separation Date”); and
WHEREAS, in
exchange for Employee’s general releases discussed herein,
Company has agreed to provide severance benefits to Employee, which
are not normally provided to employees who resign, and the parties
to this Agreement desire to resolve all issues between them
relating to Employee’s employment and the termination of that
employment;
NOW THEREFORE, in
consideration of the foregoing and of the mutual covenants and
agreements set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, Company and Employee agree as follows:
1.
Termination of Employment .
Employee’s
employment with Company will end on the Separation Date. It is
acknowledged and agreed that any services or assistance provided by
Employee during the period of cooperation described in
Section 15 of this Agreement shall be provided in the capacity
of an independent contractor and not as an employee.
Employee
acknowledges and agrees that Company has met all of its obligations
under all agreements with Employee governing his employment and/or
compensation or benefits through the date of execution of this
Agreement. Employee acknowledges and admits that he has been paid
all wages, bonuses, accrued benefits and other amounts due to him
through the date of execution of this Agreement. The parties agree
that, except for the severance benefits specifically set forth in
Section 2 of this Agreement, Company owes no additional
amounts to Employee for wages, commissions, back pay, severance
pay, bonuses, accrued vacation, benefits, insurance, sick leave,
other leave, reimbursement of expenses, or any other reason. This
Agreement is intended to and does settle and resolve all claims of
whatever nature that Employee might have against Company for
whatever reason as of the date of execution of this
Agreement.
Employee and
Company are parties to that certain Employment Agreement effective
as of October 1, 2005 (the “Employment Agreement”).
Employee acknowledges and agrees as follows: (i) he has
resigned as an employee of the Company voluntarily; (ii) his
resignation is not a termination for “Good Reason” as
contemplated under Section 6(b) of the Employment Agreement;
(iii) pursuant to Section 6(c) of the Employment Agreement,
all payments of compensation by the Company to Employee will
terminate on the Separation Date; and (iv) Employee is not
entitled to any severance, compensation or other benefit
contemplated or described in the Employment Agreement or the
Company’s policies.
Employee presently
holds outstanding options to purchase 440,000 shares of Company
stock (the “Options”), which were issued under the
Indus International, Inc. 1997 Stock Plan and the Indus
International, Inc. 2004 Long-Term Incentive Plan (collectively,
the “Incentive Plans”) and memorialized in various
award agreements between Employee and the Company (the
“Option Agreements”). Employee acknowledges and agrees
that, pursuant to the terms of the Incentive Plans, the Option
Agreements, and Employment Agreement, the 207,500 Options which
presently are unvested will terminate as of the Separation Date and
will be of no further force or effect, and the 232,500 Options
which presently are vested will remain exercisable for three months
following the Separation Date.
In addition,
Employee presently holds 25,000 shares of restricted stock (the
“Restricted Stock”) which were issued under the Indus
International, Inc. 2004 Long-Term Incentive Plan and memorialized
in various agreements between Employee and the Company (the
“Restricted Stock Agreements”). Employee acknowledges
and agrees that, pursuant to the terms of the 2004 Long-Term
Incentive Plan and the Restricted Stock Agreements, Employee will
forfeit all of his right, title, and interest in and to the
Restricted Stock as of the Separation Date, and the Restricted
Stock will revert to the Company.
(a) In
consideration of Employee’s promises and the release and
covenant not to sue contained in Section 3 of this Agreement,
Company agrees:
(i) to
pay Employee a total payment of One Hundred Nineteen Thousand
Nine Hundred and Ninety Five Dollars ($119,995) , less
withholdings for taxes and other required items. The foregoing
payment shall on or about the Company’s first regular payroll
date after the eighth (8 th )
day following the date of execution of this Agreement.
(ii) to
reimburse Employee on a monthly basis for up to six (6) months
the full amount of any payments he makes under COBRA to continue
receiving health, medical, and/or dental benefits for himself or
his dependents under the Company’s benefit plans; provided
that, the Company’s reimbursement obligation shall cease
prior to the six (6) month anniversary of this Agreement if
Employee becomes eligible to receive health, medical, and/or dental
benefits from a new employer. These reimbursements shall be made
promptly upon submission of documentation reasonably acceptable to
the Company that COBRA payments have been made by Employee, in
accordance with the Company’s expense reimbursement policy,
as in effect from time to time.
(b) The
parties acknowledge and agree that the above payments and
agreements have been negotiated and agreed upon voluntarily by both
parties. The parties also acknowledge and
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agree that
these amounts exceed any and all pay and benefits to which Employee
already may have been entitled by contract or law, or for any other
reason, and that they constitute good, valuable and sufficient
consideration for Employee’s covenants and agreements
contained in this Agreement.
3.
General Release Of All Claims And Potential Claims Against
Company and Covenant Not To Sue .
In consideration
of the payments made to him by Company and the other covenants and
promises contained in Section 2(a) of this Agreement, Employee,
with the intention of binding himself and all of his heirs,
executors, administrators and assigns, does hereby release, remise,
acquit and forever discharge Company and all of its past and
present officers, directors, stockholders, employees, agents,
parent corporations, predecessors, subsidiaries, affiliates,
estates, successors, assigns, partners and attorneys (hereinafter
“Releasees”) from any and all claims, charges, actions,
causes of action, sums of money due, suits, debts, covenants,
contracts, agreements, rights, damages, promises, demands or
liabilities (hereinafter collectively referred to as
“Claims”) whatsoever, in law or in equity, whether
known or unknown, suspected or unsuspected, which Employee,
individually or as a member of any class, now has, owns or holds or
has at any time heretofore ever had, owned or held against Company
or any of the Releasees, including but not limited to those Claims
arising out of or in any way connected with Employee’s
employment with Company or any of the other Releasees or the
termination of any such employment relatio
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