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Settlement Agreement and Mutual Release - CBT Group PLC and William A. Beamish

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                    SETTLEMENT AGREEMENT AND MUTUAL RELEASE
                                       
 This Settlement Agreement and Mutual Release ("Agreement") is made by and
 between CBT GROUP PUBLIC LIMITED COMPANY (together with its subsidiaries, the
 "Company"), and William A. BEAMISH ("Beamish").

 WHEREAS, Beamish has provided services to the Company since 1985;

 WHEREAS, the  Company and Beamish have entered into a Confidential Information
 and Invention Assignment Agreement ( the "Confidentiality  Agreement");

 WHEREAS, the Company and Beamish have mutually agreed to terminate their
 relationship and to release each other from any claims arising from or related
 to that relationship;

 NOW THEREFORE, in consideration of the mutual promises made herein, the Company
 and Beamish (collectively referred to as "the Parties") hereby agree as
 follows:

 1. RESIGNATION.  Beamish will resign from his position as Vice President,
    -----------                                                          
    Product Strategy and Development on March 31, 1998 (the "Resignation Date").

 2. CONSIDERATION. Beamish will continue to provide services  to the Company
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    and be entitled to participate in benefit plans available to comparable
    Company consultants in the Republic of Ireland through March 31, 1998.
    Beamish will also continue to vest in Company options as provided in
    paragraph 4 below.

 3. CONSULTING PERIOD.  Beamish agrees to remain available as a consultant
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    through December 31, 1998 (the "Consulting Period").   During the Consulting
    Period and upon reasonable notice, the Beamish shall make himself available
    for consultation and/or participation in conferences, up to a maximum of 30
    hours per month.

 4. STOCK OPTIONS.   Beamish shall be allowed to continue to vest in options to
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    purchase American Depository Shares (ADSs") representing the ordinary shares
    of the Company subject to stock option agreements dated April 13, 1995,
    January 16, 1996, April 12, 1996 and March 18, 1997 (the "Options") through
    December 31, 1998. As of December 31, 1998, Beamish will have fully vested
    in Thirteen Thousand Nine Hundred and Seven (13,907) ADSs of the Company
    subject to the Options (which number shall be multiplied by two as of the
    effective date of the stock split announced January 20, 1998). To the extent
    Beamish's Options have not vested as of December 31, 1998, such Options
    shall terminate, and all vested Options which have not been exercised at
    that date shall also terminate as of December 31, 1998. During the
    Consulting Period, Beamish shall have no right to additional option grants
    by the Company.

 5. CONFIDENTIAL INFORMATION.  Beamish shall continue to maintain the
    ------------------------                                        
    confidentiality of all confidential and proprietary information of the
    Company and shall continue to comply with the
<PAGE>

    terms and conditions of the Confidentiality Agreement between Beamish and
    the Company. Beamish shall return all the Company property and confidential
    and proprietary information in his possession to the Company within five
    business days from the termination of the Consulting Period.

 6. RELEASE OF CLAIMS.  Beamish agrees that the foregoing consideration
    -----------------                                                 
    represents settlement in full of all outstanding obligations owed to Beamish
    by the Company. Beamish and the Company, on behalf of themselves, and their
    respective heirs, family members, executors, officers, directors, employees,
    investors, shareholders, administrators, affiliates, divisions,
    subsidiaries, predecessor and successor corporations, and assigns, hereby
    fully and forever release each other and their respective heirs, family
    members, executors, officers, directors, employees, investors, shareholders,
    administrators, affiliates, divisions, subsidiaries, predecessor and
    successor corporations, and assigns, from, and agree not to sue concerning,
    any claim, duty, obligation or cause of action relating to any matters of
    any kind, whether presently known or unknown, suspected or unsuspected, that
    any of them may possess arising from any omissions, acts or facts that have
    occurred up until and including the Effective Date (as hereafter defined) of
    this agreement including, without limitation,

    (a) any and all claims relating to or arising from Beamish's relationship
        with the Company and the termination of that relationship;

    (b) any and all claims relating to, or arising from, Beamish's right to
        purchase, or actual purchase of shares of stock of the Company,
        including, without limitation, any claims for fraud, misrepresentation,
        breach of fiduciary duty, breach of duty under applicable state
        corporate law, and securities fraud under any state or federal law;

    (c) any and all claims for wrongful discharge of employment; breach of
        contract, both express and implied; breach of a covenant of good faith
        and fair dealing, both express and implied; negligent or intentional
        infliction of emotional distress; negligent or intentional
        misrepresentation; negligent or intentional interference with contract
        or prospective economic advantage; defamation; negligence; personal
        injury; assault; battery; invasion of privacy; false imprisonment;
        conversion;

    (d) any and all claims for violation of any federal, state or municipal
        statute, including, but not limited to, Title VII of the Civil Rights
        Act of 1964, the Civil Rights Act of 1991,the Age Discrimination in
        Employment Act of 1967, the Americans with Disabilities Act of 1990, the
        Fair Labor Standards Act, the California Fair Employment and Housing
        Act, Labor Code Section 201, et seq.;

    (e) any and all claims arising out of any other laws and regulations and
        regulations relating to employment or employment discrimination; and

    (f) any and all claims for attorneys' fees and/or costs.

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<PAGE>

 The Company and Beamish agree that the release set forth in this section shall
 be and remain in effect in all respects as a complete general release as to the
 matters released.  This release does not extend to any obligations incurred
 under this Agreement.

 7. ACKNOWLEDGMENT OF WAIVER OF CLAIMS UNDER ADEA.  Beamish acknowledges that he
    ---------------------------------------------                              
    is waiving and releasing any rights he may have under the Age Discrimination
    in Employment Act of 1967 ("ADEA") and that this waiver and release is
    knowing and voluntary.  Beamish and the Company agree that this waiver and
    release does not apply to any rights or claims that may arise under ADEA
    after the Effective Date of this Agreement.  Beamish acknowledges that the
    consideration given for this waiver and release Agreement is in addition to
    anything of value to which Beamish was already entitled.  Beamish further
    acknowledges that he has been advised by this writing that (a)  he should
    consult with an attorney prior to executing this Agreement; (b) he has at
    least twenty-one (21) days within which to consider this Agreement; (c) he
    has at least seven (7) days following the execution of this Agreement by the
    parties to revoke the Agreement; and (d) this Agreement shall not be
    effective until the revocation period has expired.

 8. CIVIL CODE SECTION 1542.  The Parties represent that they are not aware of
    -----------------------                                                  
    any claim by either of them other than the claims that are released by this
    Agreement.  Beamish and the Company acknowledge that they have been advised
    by legal counsel and are familiar with the provisions of California Civil
    Code Section 1542, which provides as follows:

    A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW
    OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH
    IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
    DEBTOR.

    Beamish and the Company, being aware of said code section, agree to
    expressly waive any rights they may have thereunder, as well as under any
    other statute or common law principles of similar effect.

 9. NON-COMPETITION.  Beamish agrees that, during the Consulting Period and for
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    a period of two years after the termination of the Consulting Period, he
    will not, directly or indirectly, own, manage, operate, join, control,
    participate in or finance the ownership, management, operation or control
    of, or be connected in any manner with the following companies that compete
    with the Company:   NETG, Gartner Group, WBT, Learning Tree, Harcourt,
    Mastering Computers, Global Knowledge Network, Ziff Davis University, Data
    Tech, Knowledge Universe and Knowledge Soft.  Beamish may accept other non-
    competitive employment while retaining consultancy with the Company as long
    as he is able to meet the maximum 30 hour commitment, if required, as
    specified above in  Paragraph 2.

10. CONFIDENTIALITY.  The Parties hereto each agree to use their best efforts
    ---------------                                                         
    to maintain in confidence the existence of this Agreement, the contents and
    terms of this Agreement, and the consideration for this Agreement
    (hereinafter collectively referred to as "Settlement Information"). Each
    Party hereto agrees to take every reasonable precaution to prevent

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<PAGE>

    disclosure of any Settlement Information to third parties, and each agrees
    that there will be no publicity, directly or indirectly, concerning any
    Settlement Information.

11. ARBITRATION.  The Parties agree that any and all disputes arising out of
    ------------                                                           
    the terms of this Agreement, their interpretation, and any of the matters
    herein released, shall be subject to binding arbitration in Santa Clara
    County before the American Arbitration Association under its California
    Employment Dispute Resolution Rules, or by a judge to be mutually agreed
    upon. The Parties agree that the prevailing party in any arbitration shall
    be entitled to injunctive relief in any court of competent jurisdiction to
    enforce the arbitration award. The Parties agree that the prevailing party
    in any arbitration shall be awarded its reasonable attorney's fees and
    costs.

12. NON-DISPARAGEMENT.  Each party agrees to refrain from any disparagement,
    -----------------                                                      
    defamation, slander of the other, or tortious interference with the
    contracts and relationships of the other. In addition, Beamish specifically
    also agrees not to disparage or to publicly express disapproval of Company's
    employees, products or services. The parties each acknowledge and agree that
    it would be impossible and inadequate to measure actual damages if either
    party breaches its obligations under this paragraph, and therefore the
    parties agree that $250,000 shall be payable, as liquidated damages and not
    as a penalty, by the breaching party to the non-breaching party. For
    purposes of this paragraph, the "Company" shall be deemed to refer solely to
    directors and officers of the Company. The parties agree that the damages
    specified are a good faith estimate of the actual amount of damages which
    would be sustained and that such damages are reasonable under the
    circumstances.

13. COSTS.  The Parties shall each bear their own costs, expert fees,
    ------                                                          
    attorneys' fees and other fees incurred in connection with this Agreement.

14. NO REPRESENTATIONS.  Each party represents that it has had the opportunity
    ------------------                                                       
    to consult with an attorney, and has carefully read and understands the
    scope and effect of the provisions of this Agreement. Neither party has
    relied upon any representations or statements made by the other party hereto
    which are not specifically set forth in this Agreement.

15. SEVERABILITY.  In the event that any provision hereof becomes or is
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    declared by a court of competent jurisdiction to be illegal, unenforceable
    or void, this Agreement shall continue in full force and effect without said
    provision.

16. ENTIRE AGREEMENT.  This Agreement, and the Confidentiality Agreement,
    ----------------                                                     
    represent the entire agreement and understanding between the Company and
    Beamish concerning Beamish's separation from the Company, and supersede and
    replace any and all prior agreements and understandings concerning Beamish's
    relationship with the Company and his compensation by the Company.

17. NO ORAL MODIFICATION.  This Agreement may only be amended in writing signed
    --------------------                                                      
    by Beamish and the Chief Executive Officer of the Company.

18. GOVERNING LAW.  This Agreement shall be governed by the laws of the
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    Republic of Ireland.

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<PAGE>

19. EFFECTIVE DATE.  This Agreement is effective seven days after it has been
    --------------                                                          
    signed by both Parties ("the Effective Date").

20. COUNTERPARTS.  This Agreement may be executed in counterparts, and each
    ------------                                                          
    counterpart shall have the same force and effect as an original and shall
    constitute an effective, binding agreement on the part of each of the
    undersigned.

21. VOLUNTARY EXECUTION OF AGREEMENT.  This Agreement is executed voluntarily
    --------------------------------                                        
    and without any duress or undue influence on the part or behalf of the
    Parties hereto, with the full intent of releasing all claims. The Parties
    acknowledge that:

    (a) They have read this Agreement;

    (b) They have been represented in the preparation, negotiation, and
        execution of this Agreement by legal counsel of their own choice or that
        they have voluntarily declined to seek such counsel;

    (c)  They understand the terms and consequences of this Agreement and of the
         releases it contains;

    (d) They are fully aware of the legal and binding effect of this Agreement.

 IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective
 dates set forth below.


                                   CBT SYSTEMS USA, LTD.


 Dated: February 11, 1998          By: /s/ James J. Buckley
                                           -------------------------------------
                                           (Signature)

                                   Title: President and Chief Executive Officer
                                          --------------------------------------


                                   WILLIAM A. BEAMISH, an individual


 Dated: February 11, 1998              /s/ William A. Beamish
                                           -------------------------------------
                                           (Signature)

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