Employment Agreement - Concord EFS Inc. and Paul Finch
This Employment Agreement (this Agreement) is entered into as of January 21st , 2003 by and between Concord EFS, Inc., a Delaware corporation (the Company), and Paul Finch (the Executive).
WHEREAS, the Company desires to employ the Executive to serve as President, Risk Management Services and Senior Vice President of the Company, and the Executive desires to be employed by the Company, upon the terms and subject to the conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Executive agree as follows:
1. Employment. The Company hereby employs the Executive and the Executive hereby agrees to be employed by the Company upon the terms and subject to the conditions contained in this Agreement. The term of employment of the Executive by the Company pursuant to this Agreement shall commence on the date hereof and, unless earlier terminated pursuant to Section 4, shall end on the third anniversary of the date hereof (such period referred to herein as the (Initial Term, collectively with any extensions of this Agreement as the Employment Period).
2. Position and Duties; Responsibilities. The Company shall employ the Executive during the Employment Period as its President, Risk Management Services and Senior Vice President or in such other position as determined by the Company from time to time. During the Employment Period, the Executive shall perform faithfully and loyally and to the best of the Executives abilities the duties assigned to the Executive hereunder and shall devote the Executives full business time, attention and effort to the affairs of the Company and its subsidiaries and shall use the Executives best efforts to promote the interests of the Company and its subsidiaries. The Executive may engage in charitable, civic or community activities and, with the prior approval of the Board of Directors of the Company (the Board), may serve as a director of any other business corporation, provided that such activities or service do not interfere with the Executives duties hereunder or violate the terms of any of the covenants contained in Sections 6, 7 or 8 hereof. The Executive shall at all times abide by all policies and procedures of the Company as in effect or amended from time to time in the Companys discretion.
3. Compensation. (a) Base Salary. During the Employment Period, the Company shall pay to the Executive a base salary at the rate of $275,000 per annum (Base Salary), payable in accordance with the Companys executive payroll policy. Such Base Salary shall be reviewed annually, and shall be subject to such annual increases, if any, as determined by the Compensation Committee of the Board.
(i) Annual Bonus. The Executive shall, in the sole discretion of the Compensation Committee of the Board, be eligible as of the end of each fiscal year of the Company during the term of this Agreement to receive an annual incentive bonus for such fiscal year in accordance with the terms of the Companys annual executive bonus program.
(c) Stock Options. During the Employment Period, the Executive shall be eligible for the grant of options under the Companys 2002 Incentive Stock Option Plan, as amended commensurate with other senior executives.
(i) The Company shall use its reasonable best efforts to cause to be granted to the Executive an option to purchase 100,000 shares of Company common stock (the Option) pursuant to the terms of the Companys 2002 Incentive Stock Option Plan, as amended (the Plan). Consistent with the Plan, the Option will have a 10-year term and an exercise price equal to the fair market value of the Companys common stock at the time of the grant. The Option will become vested with respect to 25% of the shares subject to the Option on each anniversary of the date hereof as long as the Executive remains employed by the Company. Notwithstanding the foregoing, the granting of the Option, and the terms thereof, shall be subject to approval by the Compensation Committee of the Board.
(ii) Notwithstanding the provisions of Section 3(c)(i) above, if, prior to the last day of the Noncompetition Period (as defined in Section 6(b)), the Executive breaches any of the provisions of Sections 6, 7 or 8 of this Agreement or is terminated for Cause, then (i) the Executives Option shall immediately terminate, and (ii) the Executive shall promptly pay to the Company an amount of cash equal to the Gain Realized (as defined below) on any shares acquired through the exercise of the Option (the Option Shares) during the Restricted Period (as defined below). For purposes of this Section 4(c)(ii), Restricted Period shall refer to the period of time commencing 90 days prior to the effective date of termination of the Executives employment and ending on the last day of the Noncompetition Period; and Gain Realized shall equal the difference between (x) the fair market value of the Option Shares on the date the Option is granted and (y) the greater of the fair market value of the Option Shares (A) on the date of acquisition of such Option Shares or (B) on the first date any of the provisions of Section 6, 7 or 8 of this Agreement were breached or the effective date of termination of the Executives employment if the Executive was terminated for Cause.
(d) Other Benefits. During the Employment Period, the Executive shall be eligible to participate in the Companys employee benefit plans generally available to senior executives of the Company (such benefits being hereinafter referred to as the Employee Benefits), which participation shall be subject to the terms of the applicable plans. The Executive shall be entitled to take time off for vacation or illness in accordance with the Companys policy for senior executives and to receive all other fringe benefits as are from time to time made generally available to senior executives of the Company. The Company reserves
the right to alter, suspend, amend or discontinue any and all of its benefit plans and fringe benefits, in whole or in part, at any time with or without notice.
(e) Expense Reimbursement. During the Employment Period, the Company shall reimburse the Executive, in accordance with the Companys policies and procedures, for all proper expenses incurred by the Executive in the performance of the Executives duties hereunder.
4. Termination. (a) Death. Upon the death of the Executive, this Agreement shall automatically terminate and all rights of the Executive and the Executives heirs, executors and administrators to compensation and other benefits under this Agreement shall cease immediately, except that the Executives heirs, executors or administrators, as the case may be, shall be entitled to:
(i) accrued Base Salary and vacation pay through and including the Executives date of death;
(ii) a pro rata target Annual Bonus for the portion of the bonus period ending on the date of the Executives death, payable at the time that other senior executives of the Company are paid their Annual Bonuses; and
(iii) other Employee Benefits to which the Executive was entitled on the date of death in accordance with the terms of the plans and programs of the Company.
(b) Disability. The Company may, at its option, terminate this Agreement upon written notice to the Executive if the Executive, because of physical or mental incapacity or disability, fails to perform the essential functions of the Executives position, with or without reasonable accommodation, required of the Executive hereunder for a continuous period of 120 days or any 180 days within any 12-month period. Upon such termination, all obligations of the Company hereunder shall cease immediately, except that the Executive shall be entitled to:
(i) accrued Base Salary and vacation pay through and including the effective date of the Executives termination of employment;
(ii) a pro rata target Annual Bonus for the portion of the bonus period ending on the effective date of the Executives termination of employment, payable at the time that other senior executives of the Company are paid their Annual Bonuses; and
(iii) other Employee Benefits to which the Executive is entitled upon termination of employment in accordance with the terms of the plans and programs of the Company.
In the event of any dispute regarding the existence of the Executives incapacity or disability hereunder, the matter shall be resolved by the determination of a physician selected by the Board. The Executive shall submit to appropriate medical examinations for purposes of such determination.
(c) Cause. (i) The Company may, at its option, terminate the Executives employment under this Agreement for Cause (as hereinafter defined) upon written notice to the Executive (the Cause Notice). Any such termination for Cause shall be authorized by the Board. The Cause Notice shall state the particular action(s) or inaction(s) giving rise to termination for Cause. The Executive shall have five (5) days after the Cause Notice is given to cure the particular action(s) or inaction(s), to the extent a cure is possible. If the Executive so effects a cure to the satisfaction of the Board, the Cause Notice shall be deemed rescinded and of no force or effect.
(ii) As used in this Agreement, the term Cause shall mean any one or more of the following:
(A) any refusal by the Executive to perform the Executives duties under this Agreement or to perform specific directives of the Board or of the President/CEO which are consistent with the scope and nature of the Executives duties and responsibilities as set forth herein;
(B) any act of fraud, embezzlement or theft by the Executive in connection with the Executives duties hereunder or in the course of the Executives employment hereunder or any prior employment, or the Executives admission or conviction of a felony or of any crime involving moral turpitude, fraud, embezzlement, theft or misrepresentation;
(C) any gross negligence or willful misconduct of the Executive resulting in a loss to the Company or any of its subsidiaries, or damage to the reputation of the Company or any of its subsidiaries;
(D) any breach by the Executive of any one or more of the covenants contained in Sections 6, 7 or 8 hereof; or
(E) any violation of any statutory or common law duty of loyalty to the Company or any of its subsidiaries.
(iii) The exercise of the right of the Company to terminate this Agreement pursuant to this Section 4(c) shall not abrogate the rights or remedies of the Company in respect of the breach giving rise to such termination.
(iv) If the Company terminates the Executives employment for Cause, all obligations of the Company hereunder shall cease, except that the Executive shall be entitled to the payments and benefits specified in Sections 4(b)(i) and 4(b)(iii) hereof.
(d) Termination Without Cause. The Company may, at its option, terminate the Executives employment under this Agreement upon written notice to the Executive for a reason other than a reason set forth in Section 4(a), 4(b) or 4(c). If the Company terminates the Executives employment for any such reason, all obligations of the Company hereunder shall cease immediately, except that the Executive shall be entitled to:
(i) the payments and benefits specified in Sections 4(b)(i) through 4(b)(iii) (inclusive);
(ii) payment equal to the Executives Base Salary at the Executives then current rate for the remainder of the Initial Term, less required and authorized withholding and deductions, payable in installments in accordance with the Companys normal payroll practices or in a lump sum, as determined by the Company in its discretion;
(iii) payment equal to one (1) times the average Annual Bonus earned by the Executive during the three prior fiscal years, or if the Executive was not employed by the Company for at least three fiscal years, the average Annual Bonus earned by the Executive during the Employment Period, less required and authorized deductions, payable at the time that other senior executives of the Company are paid their Annual Bonuses with respect to the two fiscal years commencing after the effective date of the Executives termination of employment or in a lump sum, as determined by the Company in its discretion; and
(iv) continuation of the Executives participation in the Companys group health and life insurance plans for one (1) year (with the Executive continuing to pay the employees share of applicable premiums).
Notwithstanding Sections 4(d)(ii), (iii) and (iv), the amounts payable to the Executive under Sections 4(d)(ii) and (iii) shall be reduced by the amount of salary, bonus or other compensation that the Executive receives from a subsequent employer, and the benefit continuation required under Section 4(d)(iv) shall be discontinued upon receipt by the Executive of substantially similar benefits from a subsequent employer, as determined by the Board in good faith, during the period in which such amounts are payable or such benefits are required to be continued under Sections 4(d)(ii), (iii) or (iv), as applicable. The Executive shall use reasonable efforts to seek other employment for this purpose. Further, notwithstanding Sections 4(d)(ii), (iii) and (iv), the Companys obligation to pay the amounts under Sections 4(d)(ii) and (iii) and to continue certain benefits under Section 4(d)(iv) shall cease immediately upon the Executives breach of any provision of Section 6, 7 or 8 hereof.
(e) Termination for Good Reason.
(i) The Executive may terminate the Executives employment under this Agreement for Good Reason (as hereinafter defined) upon written notice to the Company (the Good Reason Notice). The Good Reason Notice shall state the particular action(s) or inaction(s) giving rise to the termination for Good Reason and must be delivered to the Company within thirty (30) days after the Executive becomes aware of such action(s) or inaction(s). The Company shall have thirty (30) days after the Good Reason Notice is given to cure the particular action(s) or inaction(s). If the Company so effects a cure, the Good Reason Notice shall be deemed rescinded and of no further force and effect. A
termination for Good Reason shall be treated as a termination without cause by the Company under Section 4(d).
(ii) As used in this Agreement, the term Good Reason shall mean any one or more of the following: (A) action by the Company resulting in a substantial diminution of the Executives titles or positions with the Company, (B) any reduction in the Executives Base Salary or (C) any relocation of the Executive more than fifty (50) miles from Scottsdale, Arizona.
(f) Payments in Lieu of Other Severance Rights. The severance payments provided hereunder shall be made in lieu of any other severance payments under any severance agreement, plan, program or arrangement of the Company applicable to the Executive; provided that the sum of such payments shall not be less than the amount that otherwise would have been payable to the Executive under the Companys severance policy, if any.
(g) Payments Contingent on Release. Notwithstanding anything to the contrary, no amount shall be payable to the Executive (or the Executives executor or other legal representative in the case of the Executives death or disability) pursuant to Section 4, other than (i) accrued Base Salary and vacation pay through and including the Executives date of termination or death and (ii) other Employee Benefits to which the Executive is entitled upon termination of employment in accordance with the terms of the plans and programs of the Company, as the case may be, unless and until thirty (30) days after the Executive (or the Executives executor or other legal representative in the case of the Executives death or disability) executes and delivers to the Company, in accordance with Section 13, a general release prescribed by the Company, substantially in the form of Exhibit A attached hereto (the Release), provided such Release is executed and delivered to Company within twenty-two (22) days of the Executives cessation of employment, or within forty-five (45) days in the event of the Executives death or disability. Whether the Executives employment is terminated with Cause or without Cause, in no event shall the Company be required to pay the Executive damages on account of an alleged breach of this Agreement (which shall not include any noncontractual claims, such as statutory discrimination claims) in excess of the consideration set forth in Section 4(d).
(h) Cooperation & Indemnification The Executive agrees to reasonably assist and cooperate with the Company, its subsidiaries and/or their agents, officers, directors and employees (i) on matters relating to the tasks for which the Executive was responsible, or about which the Executive had knowledge, before cessation of employment or which may otherwise be within the knowledge of the Executive and (ii) exclusively in connection with any existing or future disputes, litigation or investigations of any nature brought by, against, or otherwise involving the Company in which the Company deems the Executives cooperation necessary. The Company will reimburse the Executive for reasonable out of pocket expenses incurred in connection therewith, in accordance with Company policy. Executive shall be eligible for such indemnification as is provided for by the bylaws of the Company.
5. Federal and State Withholding. The Company shall deduct from the amounts payable to the Executive pursuant to this Agreement the amount of all required federal, state and local withholding taxes in accordance with the Executives Form W-4 on file with the
Company, and all applicable federal employment taxes. The Executive shall be solely responsible for all other taxes associated with the amounts payable under the Agreement, except for the employer portion of any employment taxes as required under applicable law.
6. Noncompetition; Nonsolicitation. (a) General. The Executive acknowledges that in the course of the Executives employment with the Company, the Executive has and will become familiar with trade secrets and other confidential information concerning the Company and its subsidiaries and has established and will establish substantial relationships with certain customers of the Company and its subsidiaries. The Executive further acknowledges that the Executives services will be of special, unique and extraordinary value to the Company and its subsidiaries.
(b) Noncompetition. The Executive agrees that during the period of the Executives employment with the Company, the period, if any, during which the Executive is receiving payments from the Company pursuant to Section 4, and for a period of six (6) months thereafter (the Noncompetition Period), the Executive shall not in any manner, directly or indirectly, through any person, firm or corporation, alone or as a member of a partnership or as an officer, director, stockholder, investor or employee of or consultant to any other corporation or enterprise or otherwise, engage or be engaged, or assist any other person, firm, corporation or enterprise in engaging or being engaged, in the business of furnishing electronic funds transfer and related services consisting of automated teller machine, point of sale transactions and related services, data processing services related to terminal driving, card authorization and card production and other payment system services, or in any other business being conducted by the Company or any of its subsidiaries as of the termination of the Executives employment in which the Executive was involved during the Executives employment, in any geographic area in which the Company or any of its subsidiaries is then conducting such business.
(c) Nonsolicitation. The Executive further agrees that during the Noncompetition Period, the Executive shall not (i) in any manner, directly or indirectly, induce or attempt to induce any employee of the Company or any of its subsidiaries to terminate or abandon his or her employment for any purpose whatsoever or (ii) in connection with any business to which Section 6(b) applies, call on, service, solicit or otherwise do business with any customer (determined as of the effective date of the termination of Executives employment) of the Company or any of its subsidiaries.
(d) Exceptions. Nothing in this Section 6 shall prohibit the Executive from being (i) a stockholder in a mutual fund or a diversified investment company or (ii) an owner of not more than two percent (2%) of the outstanding stock of any class of a corporation, any securities of which are publicly traded, so long as the Executive has no active participation in the business of such corporation.
(e) Nondisparagement. Except as otherwise required by applicable law, the Executive agrees not to make, or cause to be made, any oral or written statement, or take any other action, which disparages, criticizes, damages the reputation of, or is hostile to, the Company or its administration, employees, management, officers, shareholders, agents and/or directors. In the event that the Executive violates this provision, including making statements to the media, it will be considered a material breach hereof.
(f) Tolling. The Noncompetition Period shall be extended for any period during which the Executive is in breach of this Section 6.
7. Confidentiality. The Executive shall not, at any time during the Employment Period or thereafter, make use of or disclose, directly or indirectly, any (i) trade secret or other confidential or secret information of the Company or of any of its subsidiaries or (ii) other technical, business, marketing, proprietary, financial, customer, pricing or personnel information of the Company or of any of its subsidiaries not intended to be available to the public generally or to the competitors of the Company or to the competitors of any of its subsidiaries (Confidential Information), except to the extent that such Confidential Information (a) becomes a matter of public record or is published in a newspaper, magazine or other periodical or on electronic or other media available to the general public, other than as a result of any act or omission of the Executive, (b) is required to be disclosed by any law, regulation or order of any court or regulatory commission, department or agency, provided that the Executive gives prompt notice of such requirement to the Company to enable the Company to seek an appropriate protective order, or (c) is required to be used or disclosed by the Executive to perform properly the Executives duties under this Agreement. Promptly following the termination of the Employment Period, the Executive shall surrender to the Company all property of the Company and its subsidiaries and the actual and prospective customers of the Company and its subsidiaries that the Executive may then possess or have under the Executives control (together with all copies thereof), including but not limited to records, memoranda, notes, plans, reports, computer tapes and software and other documents and data which constitute Confidential Information.
8. Intellectual Property and Developments. The Executive shall disclose promptly to the Company all inventions, discoveries, developments, improvements, processes, designs, works of authorship, ideas and related documentation that are written, discovered, made, conceived or first reduced to practice by the Executive (either solely or jointly with another or others) while employed by the Company (collectively, Development(s)), whether or not they are patentable, copyrightable or subject to trade secret protection. The Executive shall not, at any time during or after the Executives employment, have or claim any right, title or interest in or to, or disclose to any third party, any Development(s) or any trade name, patent, trademark, copyright, intellectual property or other proprietary rights belonging to the Company. All Development(s) shall be the sole and exclusive property of the Company and shall be work made for hire as that term is defined in the copyright laws of the United States, not works of joint ownership. In any event, to the extent that any Development(s) may not be held to be work made for hire, or to the extent that the Executive has any right, title or interest in or to the Development(s) (including without limitation patent rights, copyrights, trade secrets or other proprietary rights), the Executive hereby assigns to the Company (without any further consideration) all such rights, title, and interest in and to the Development(s). The Executive shall cooperate fully with the Company during the Executives employment and thereafter in the securing of any trade name, patent, trademark, copyright or intellectual property protection or other similar rights in the United States and in foreign countries and shall give evidence and testimony and execute and deliver to the Company all papers reasonably requested by any of them in connection therewith.
9. Remedies. (a) Acknowledgment. The Executive acknowledges that the provisions contained in Sections 6, 7 and 8 are reasonable and necessary because of the substantial harm that could be caused to the Company by the Executive engaging in any of the prohibited or restricted activities contained in such Sections. The Executive represents and warrants that the prohibitions and restrictions contained in Sections 6, 7 and 8 will not impair the Executives ability to earn a livelihood because the Executive has the ability and experience to engage in employment that will not breach or violate the prohibitions and restrictions contained in such Sections.
(b) Injunctive Relief. The parties hereto agree that the Company and its subsidiaries would be damaged irreparably in the event that any provision of Section 6, 7 or 8 of this Agreement were not performed in accordance with its terms or were otherwise breached and that money damages would be an inadequate remedy for any such nonperformance or breach. Accordingly, the Company and its successors and permitted assigns shall be entitled, in addition to other rights and remedies existing in their favor, to an injunction or injunctions to prevent any breach or threatened breach of any of such provisions and to enforce such provisions specifically (without posting a bond or other security). The Executive agrees that the Executive will submit to the personal jurisdiction of the courts of the State of Delaware in any action by the Company to enforce an arbitration award against the Executive or to obtain interim injunctive or other relief pending an arbitration decision.
(c) Reformation. The Executive and the Company agree that in the event any of the prohibitions or restrictions set forth in Sections 6, 7 or 8 of this Agreement are found by a court of final and competent jurisdiction to be unreasonable and accordingly unfavorable, it is the purpose and intent of the parties that any prohibitions or restrictions be deemed modified or limited so that, as modified or limited, such prohibitions or restrictions may be enforced to the fullest extent permitted by law.
10. Representations. (a) The Executive represents and warrants to the Company that (i) the execution, delivery and performance of this Agreement by the Executive does not and will not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which the Executive is a party or by which the Executive is bound, (ii) the Executive is not a party to or bound by any employment agreement, noncompetition agreement or confidentiality agreement with any other person or entity that will interfere with Executives ability to fulfill his obligations under this Agreement and (iii) upon the execution of this Agreement by the Company and the Executive, this Agreement shall be the valid and binding obligation of the Executive, enforceable in accordance with its terms.
(b) The Executive understands that the Executive has a period of 21 days to review and consider the Release attached hereto as Exhibit A and to consult with an attorney and other advisors of the Executives choice before signing it.
(c) If the Executive is 40 years of age or older when the Release is signed, the Executive may, within seven (7) days of the Executive signing the Release, revoke (i) those portions of the Release (once signed) relating to releasing claims for age discrimination (such as claims under the Age Discrimination in Employment Act of 1967, as amended) and (ii) only to
the limited extent otherwise required by applicable law, any other portion of such Release. Revocation shall be made by delivering a written notice of revocation to the Company c/o General Counsel, c/o Legal Department at the address specified herein. For this revocation to be effective, written notice must be received no later than midnight on the seventh day after the Executive signs the Release.
11. Survival. Sections 3(c), 6, 7, 8, 9, 10 and 12 of this Agreement shall survive and continue in full force and effect in accordance with their respective terms, notwithstanding any termination of the Employment Period.
12. Arbitration. Except as otherwise set forth in Section 9 hereof, any dispute or controversy between the Company and the Executive, whether arising out of or relating to this Agreement, the breach of this Agreement, or otherwise, shall be settled by arbitration in Delaware administered by the American Arbitration Association, with any such dispute or controversy arising under this Agreement being so administered in accordance with its Commercial Rules then in effect, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The arbitrator shall have the authority to award any remedy or relief that a court of competent jurisdiction could order or grant, including, without limitation, the issuance of an injunction. Except as necessary in court proceedings to enforce this arbitration provision or an award rendered hereunder, or to obtain interim relief, neither a party nor an arbitrator may disclose the existence, content or results of any arbitration hereunder without the prior written consent of the Company and the Executive. The Company and the Executive acknowledge that this Agreement evidences a transaction involving interstate commerce. Notwithstanding any choice of law provision included in this Agreement, the United States Federal Arbitration Act shall govern the interpretation and enforcement of this arbitration provision.
13. Notices. All notices and other communications required or permitted hereunder shall be in writing and shall be deemed given when (a) delivered personally or by overnight courier to the following address of the other party hereto (or such other address for such party as shall be specified by notice given pursuant to this Section) or (b) sent by facsimile to the following facsimile number of the other party hereto (or such other facsimile number for such party as shall be specified by notice given pursuant to this Section), with the confirmatory copy delivered by overnight courier to the address of such party pursuant to this Section 13:
If to the Company, to:
Office of the General Counsel
Concord EFS, Inc.
1100 Carr Road
Wilmington, DE 19809
If to the Executive, to:
8419 East Cortez
Scottsdale, AZ 85260
14. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of any other provision of this Agreement or the validity, legality or enforceability of such provision in any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.
15. Entire Agreement. This Agreement constitutes the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements or representations by or between the parties, written or oral, which may have related in any manner to the subject matter hereof.
16. Successors and Assigns. This Agreement shall be enforceable by the Executive and the Executives heirs, executors, administrators and legal representatives, and by the Company and its successors and assigns. The Executive may not assign this Agreement and any such assignment shall be null and void.
17. Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware without regard to principles of conflict of laws.
18. Amendment and Waiver. The provisions of this Agreement may be amended or waived only by the written agreement of the Company and the Executive, and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall affect the validity, binding effect or enforceability of this Agreement.
19. Counterparts. This Agreement may be executed in two counterparts, each of which shall be deemed to be an original and both of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.
CONCORD EFS, INC.
Edward A. Labry, III
/s/ Paul Finch
This Release given by [insert name] (the Executive) to Concord EFS, Inc. (the Company) for the benefit of the Released Persons, is executed in consideration for the covenants made by Company in an Employment Agreement, dated [insert date] (the Agreement).
1. The Executive and the Executives heirs, assigns, successors, personal and legal representatives, and agents hereby unconditionally, knowingly and voluntarily release, waive and forever discharge the Company and its owners, predecessors, successors, divisions, parents, subsidiaries, partnerships and affiliates, and each of these entities past, present and future directors, officers, employees, shareholders, representatives, agents, attorneys and all persons acting by, through, under, or in concert with any of them (the Released Persons) from each and every claim, complaint, action, liability, charge, promise, agreement, obligation, loss, cost, expense, suit, damage, demand, dispute or right of any sort or nature whatsoever, at law or in equity (collectively, Claims), whether known or unknown, asserted or not asserted, foreseen or unforeseen, to the extent arising out of or related to any and all acts, omissions, events, circumstances or facts existing or occurring on or before the date of this Release. The foregoing release includes, but is not limited to, any Claim relating to the Executives employment relationship (including termination thereof), discrimination on the basis of race, sex, religion, marital status, sexual orientation, national origin, handicap or disability, age, veteran status, special disabled veteran status or citizenship status, including but not limited to any Claim arising under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Family and Medical Leave Act, the Americans with Disabilities Act, the Employee Retirement Income Security Act or the Worker Adjustment and Retraining Notification Act, all as amended; any Claim arising out of or related to an express or implied employment contract, any other contract affecting terms and conditions of employment or a covenant of good faith and fair dealing; any tort or contract Claims; any personal gain with respect to any Claim arising under the qui tam provisions of the False Claims Act, 31 U.S.C. 3730; and any Claim arising under any other federal, state or local statute, regulation, ordinance or order, or pursuant to any common law doctrine.
2. The Executive represents that the Executive has carefully read this release and understands that the foregoing releases Claims under the Age Discrimination in Employment Act of 1967, as amended, and that the Executive understands that he/she is not releasing any Claims to the extent arising after the date of this Release.
3. The Executive represents and warrants that: (a) the Executive has not filed or initiated any legal or other proceedings against any of the Released Persons; (b) no such proceedings have been initiated against any of the Released Persons on the Executives behalf; (c) the Executive is the sole owner of all the claims that are released above; (d) none of these claims has been transferred or assigned or caused to be transferred or assigned to any other person, firm or other legal entity; and (e) the Executive has the full right and power to grant, execute, and deliver the releases, undertakings, and agreements contained in this Release. The Executive further agrees never to commence any action against the Released Persons or to cause any such action to be commenced against the Released Persons regarding any matter within the scope of this Release. In
the event of any further proceedings whatsoever based upon any matter released herein, the Company and each of the other Released Persons shall have no further monetary or other obligation of any kind to the Executive, including without limitation any obligation for any costs, expenses and attorneys fees incurred by or on behalf of the Executive.
4. The Executive agrees that the Executive has no present or future right to employment with the Released Persons and that the Executive will not apply or seek consideration for any employment, engagement or contract with the Released Persons.
5. The Executive agrees that the Executive will not disclose the existence or terms of this Release to any third parties with the exception of the Executives accountants, attorneys and spouse, each of whom shall be bound by this confidentiality provision, or as may be required to comply with legal process. The Executive understands and agrees that this requirement of confidentiality is among the material inducements for the Company to enter into this Release.
6. Nothing in this Release is intended to or shall be construed as an admission by the Company or any of the other Released Persons that it violated any law, interfered with any right, breached any obligation or otherwise engaged in any improper or illegal conduct with respect to the Executive or otherwise, the Released Persons expressly denying any such illegal or wrongful conduct.
7. Sections 6, 7, 8, 9, 10 and 12 of the Agreement are hereby incorporated herein by reference.
8. THE EXECUTIVE ACKNOWLEDGES THAT THE EXECUTIVE UNDERSTANDS THE TERMS AND EFFECT OF THIS RELEASE, THAT THE EXECUTIVE HAS BEEN ADVISED TO AND GIVEN AN OPPORTUNITY TO CONSULT WITH AN ATTORNEY PRIOR TO EXECUTING THIS RELEASE, AND THAT THE EXECUTIVE HAS HAD TWENTY-ONE DAYS TO CONSIDER WHETHER TO EXECUTE THIS RELEASE. IF THE EXECUTIVE IS 40 YEARS OF AGE OR OLDER ON THE DATE THAT THE EXECUTIVE EXECUTES THIS RELEASE, THE EXECUTIVE FURTHER ACKNOWLEDGES THAT WITHIN SEVEN DAYS FROM THE DATE OF THE EXECUTION OF THIS RELEASE, THE EXECUTIVE MAY, AT THE EXECUTIVES SOLE OPTION, REVOKE THIS RELEASE UPON WRITTEN NOTICE TO [INSERT POSITION] OF THE COMPANY AND THAT THIS RELEASE WILL NOT BECOME EFFECTIVE UNTIL THE SEVEN-DAY REVOCATION PERIOD HAS EXPIRED.