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[ADVO
letterhead]
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Exhibit
10.1
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June 2, 2005
Mr. Jeffrey E. Epstein
(address intentionally omitted)
Dear Jeff:
In connection with your
“at-will” employment as Executive Vice President and
Chief Financial Officer by ADVO, Inc. (“ADVO” or
collectively with its affiliates or subsidiaries, the
“Company”) effective as of June 6, 2005, ADVO is
pleased to offer you the severance benefits set forth in this
letter agreement (the “Agreement”):
1. Non-Solicitation,
Non-Competition and Non-Disclosure . In exchange for the benefits provided to you
pursuant to this Agreement, you agree to be bound by and comply
with the following terms and covenants concerning non-solicitation,
non-competition and non-disclosure. Notwithstanding anything to the
contrary in this Agreement and regardless of your eligibility to
receive severance benefits pursuant to this agreement, you agree to
adhere to (x) the non-competition provisions set forth in Paragraph
1(d) below for a period of six (6) months from your date of
termination and (y) the non-disclosure provisions set forth in
Paragraph 1(e) below indefinitely. If you are eligible to receive
severance benefits pursuant to this Agreement, then during the
Severance Period (as defined in Paragraph 3(b)) with respect to
non-solicitation and non-competition, and indefinitely with respect
to non-disclosure, you agree that you will not, directly or
indirectly, whether for yourself or for any other individual or
entity (other than the Company):
(a) solicit any person or entity who is, or was,
within the twelve (12) months preceding the termination of your
employment with the Company, a customer, customer representative
(such as an agency), a prospect (with respect to which the Company
has incurred substantial costs or with which you have been
involved), or a client of the Company, with the twelve (12) month
period reduced to six (6) months for prospects with which you have
not been involved;
(b) hire away or endeavor to entice away from the
Company any employee or any other person or entity whom the Company
engages to perform services or supply products and including, but
not limited to, any independent contractors, consultants,
engineers, or sales representatives or any contractor,
subcontractor, supplier, or vendor;
(c) hire any person whom the Company employs or
employed within the twelve (12) months preceding the date as of
which you attempt to hire the person;
(d) be employed by, lend money to, or engage in any
business competitive with the Company in the United States of
America, including, without limitation, acting, either singly or
jointly or as agent for, or as an employee of or consultant to, any
one or more persons, firms, entities, or corporations directly or
indirectly (as a director, independent contractor, representative,
consultant, member, or otherwise) that compete with the Company.
Nothing in this Paragraph 1(d) shall prohibit you from owning or
acquiring up to 1% of the outstanding securities of any corporation
or other business enterprise in competition with the Company that
is listed on a national securities exchange, provided that you are
otherwise in compliance with the provisions of this Paragraph, you
own such securities for investment purposes only and you have no
involvement beyond passive investing in such business;
or
(e) at any time, whether during or after the
termination of employment, for any reason whatsoever (other that to
promote and advance the business of the Company), reveal to any
person or entity (both commercial and non-commercial) any of the
trade secrets or confidential or proprietary business information
concerning the Company: including its research and development
activities; client lists; database specifications; show-how and
know-how; marketing plans and strategies; pricing and costing
policies; customer and supplier lists and accounts; or nonpublic
financial information of the Company, except as may be required in
the ordinary course of performing your duties as an employee of the
Company. This restriction shall not apply to: (i) information that
may be disclosed generally or is in the public domain through no
fault of yours; (ii) information received from a third party
outside the Company that was disclosed without a breach of any
confidentiality obligation; (iii) information approved for release
by written authorization of the Company; or (iv) information that
may be required by law or an order of any court, agency or
proceeding to be disclosed. You shall keep secret all matters of
such nature entrusted to you and you shall not use or disclose any
such information for the benefit of any third party in any manner
which may injure or cause loss to the Company, whether directly or
indirectly.
2. Notice of
Termination . Except
as otherwise provided in this Agreement, any termination of your
employment, whether by you or ADVO, will be communicated by thirty
(30) days prior written notice to the other party. All notices
provided for in this Agreement will be in writing and will be
effective when delivered or mailed by U.S. mail, postage prepaid,
at the addresses shown above or to such other address as either
ADVO or you may have furnished to the other in writing.
3. Severance Payments and
Benefits .
(a) ADVO will provide you with the severance
pay