8/13/2019 Redemption and Termination Agreement

1/4

REDEMPTION AND TERMINATION AGREEMENT

THIS REDEMPTION AND TERMINATION AGREEMENT (Agreement) is

entered into by and between _______________, an _____________corporation, (Company)and _________, an individual residing _________________ (XYZ) as o ________ ____,!"#___$

#$ Background. As o t%e date o t%is Agreement, XYZ is a s%are%older andemployee o t%e Company$ XYZ owns _________ (____) &number of shares' o t%e issued andoutstanding s%ares o t%e Companys common stoc (XYZs *%ares) and owns no ot%erss%ares o t%e Company$ +%e Company and all o its s%are%olders, including XYZ, entered into acertain Company *%are%olders Agreement dated as o _________, ____, !"#__ (t%e*%are%olders Agreement)$ XYZ and XYZs *%ares are subect to suc% *%are%oldersAgreement$ XYZ voluntarily resigned %is employment wit% t%e Company, eective as o t%eclose o business on ___________ ____, !"#_, in order to &describe reason' and desires t%at t%e

Company redeem all o XYZs *%ares and t%e Company desires t%at XYZ cooperate wit% t%etransition o %is duties and responsibilities to ot%er Company personnel in a timely, smoot% andorderly as%ion$ -n consideration o t%e oregoing, and t%e respective agreements set ort%%erein, t%e Company and XYZ %ave agreed as ollows$

!$ Purchase of XYZs Shares.XYZ represents and warrants to t%e Company t%at %eis t%e sole owner o XYZs *%ares, ree and clear o all liens, claims or encumbrances o anyind or nature w%atsoever$ XYZ %ereby sells and t%e Company purc%ases all o XYZs *%aresupon t%e terms and provisions contained %erein$

A$ +%e purc%ase price or all o XYZs *%ares

_____________ .ollars (/______$"") and %as been paid to XYZcontemporaneously wit% t%e e0ecution o t%is Agreement1 receipt t%ereois %ereby acnowledged by XYZ$

2$ XYZ %as e0ecuted and delivered to t%e Company t%ecertiicates evidencing XYZs owners%ip o XYZs *%ares duly endorsedto t%e Company, and suc% certiicates are ot%erwise in orm and substancesuicient to transer owners%ip o XYZs *%ares to t%e Company$ +%eCompany %ereby acnowledges receipt o suc% certiicates$

3$ Termination of Employment.XYZ %ereby terminates and %as ceased being an

employee o t%e Company as o t%e close o business on ____________, !"#___ (+ermination.ate)$ +%e Companys obligation to pay or provide employment compensation and beneits toXYZ including, wit%out limitation, providing %ealt% insurance beneits, terminated as o t%e+ermination .ate$ XYZ s%all be entitled to a continuation o %is %ealt% insurance beneitspursuant to t%e Consolidated 4mnibus 2udget 5econstruction Act o #678 (C425A)$

9$ onfidentiality. XYZ agrees t%at t%e Companys customers and inormationconcerning t%e Companys suppliers, prices, commission sc%edules, inancial arrangements and

8/13/2019 Redemption and Termination Agreement

2/4

its processes, plans, researc% inormation, mareting strategies and met%ods o doing business asmay e0ist, rom time to time (collectively Conidential -normation), are valuable, special,uni:ue and proprietary assets o t%e Company, w%ic% give t%e Company a competitive advantageover competitors w%o do not %ave access to or use o t%e Conidential -normation, in w%ole orin part$ XYZ urt%er agrees t%at t%e Conidential -normation constitutes or is; suiciently secret

or t%e Company to derive economic value, actual and potential, rom t%e -normation not beinggenerally nown to ot%er persons w%o can obtain economic value rom its disclosure or use1 t%esubect o eorts reasonable under t%e circumstances to maintain its secrecy or conidentiality1and a trade secret, as deined in t%e ________ &State' +rade *ecrets Act$

A$ XYZ s%all not disclose or disseminate, or encourage ot%ers todisclose or disseminate, any o t%e Conidential -normation to any o t%eCompanys suppliers, prospects or customers, or to any ot%er person, irm,corporation, association or ot%er entity engaged in a lie or similar business to or incompetition wit% t%e Company$ - and to t%e e0tent t%at any court determines t%atall or any portion o t%e Conidential -normation is not a trade secret, t%en, to t%at

e0tent, pro%ibition against divulging or disclosing suc% Conidential -normationwill e0pire upon ___________, !" __ &date'$

2$ XYZ represents and warrants to t%e Company t%at XYZ %asdelivered to t%e Company all originals and copies o t%e lists o customers,suppliers, price lists, product lists and all ot%er documents relecting Conidential-normation and all ot%er materials urnis%ed to or ac:uired by XYZ as a result oor during t%e course o %is employment$

8$ !nterference.XYZ s%all not interere wit% t%e relations%ip between t%e Company

and any o its employees, agents, representatives, customers or suppliers, or attempt to divertrom t%e Company any customer or ot%er business property$

competition, deerred compensation or any ot%ersum, e0cept as may be provided in t%e Consulting Agreement$

2$ ?0cept as may be provided in t%e Consulting Agreement, XYZ %as%eretoore received payment in ull o all sums due or to become due to %im romt%e Company including, wit%out limitation, all sums due to XYZ as a s%are%older oremployee o t%e Company or ot%erwise including, wit%out limitation, wages,commissions overtime, vacation pay, ees, beneits or reimbursement or e0penses

@age ! o 9

8/13/2019 Redemption and Termination Agreement

3/4

incurred by %im on t%e Companys be%al or ot%erwise1 all o XYZs accruedvacation, %oliday and sic pay beneits %ave eit%er been ully used or XYZ %as beenully compensated t%ereor$

C$ XYZ does %ereby release and orever disc%arge t%e Company, its oicers,directors, s%are%olders, employees, attorneys, agents, successors and assigns, o and

rom any and all claims, demands and causes o action o any nature w%atsoeverarising out o or in any way related to %is employment or termination o %isemployment wit% t%e Company, and XYZ urt%er acnowledges and understandst%at, e0cepting only t%e Companys obligations pursuant to t%is Agreement, %e isreleasing t%e Company rom any and all claims %e may %ave against it including,wit%out limitation, claims or alleged discrimination t%at arise under t%e Age.iscrimination in ?mployment Act or +itle -- o t%e Civil 5ig%ts Act o #6one (!#) days prior to %is e0ecution o t%e same, and XYZ%as so considered same wit% t%e beneit and advice o %is own attorney$ XYZ %ast%e rig%t to revoe t%is Agreement or a period o seven (=) days ater its e0ecutionby t%e parties %ereto$ 5evocation s%all be eective only i t%e Company receives aDotice t%ereo wit%in said seven (=) day period$

7$ E(uitable %emedies.XYZ and t%e Company agree t%at it is impossible to measurein money t%e damages w%ic% will accrue t%e Company by reason o XYZs breac% or t%reatenedbreac% o any o t%e covenants, agreements or ot%er obligations set ort% in t%is Agreement$+%ereore, i any action or proceeding is commenced by or on be%al o t%e Company to enorce

any o t%e provisions contained in t%is Agreement, XYZ %ereby waives t%e claim or deenset%erein t%at t%e Company %as an ade:uate remedy at law or %as not been, or is not being,irreparably inured by suc% breac% or t%reatened breac%, and XYZ will not raise or suggest suc%claim or deense in any suc% action or proceeding$ XYZ urt%er agrees t%at t%e Company s%all beentitled to temporary and permanent inunctive relie to restrain any breac%es or urt%erviolations o t%is Agreement, and t%at t%is rig%t to inunctive relie s%all be in addition to any andall o t%e Companys ot%er remedies and damages, including, wit%out limitation, court costs andreasonable attorneys ees$

@age 3 o 9

8/13/2019 Redemption and Termination Agreement

4/4

6$ )otices.All notices, demands and communications re:uired or desired to be givenin connection wit% t%e Agreement s%all be in writing and s%all be deemed duly given on t%e datereceived, i delivered personally, or on t%e t%ird day ater mailing to suc% person at suc% locationas eit%er party %ereto may subse:uently designate in a similar manner$

#"$ onstruction.+%is Agreement s%all be interpreted, construed and governed by

and under t%e laws o t%e *tate o &state'$

A$ - any provision or clause o t%is Agreement is %eld to be invalid by a courto competent urisdiction, t%en suc% provision s%all be severed %ererom and suc%invalidity s%all not aect any ot%er provision o t%is Agreement, t%e balance ow%ic% s%all remain and %ave its intended ull orce and eect$ Eowever, i suc%invalid or unenorceable provision would %ave been valid and enorceable i it %adbeen restricted to a s%orter time or narrow geograp%ic territory, t%en suc% time andterritory s%all be deemed reduced to t%e ma0imum time and territory enorceable bylaw$

2$ 5eerence %erein to @aragrap%s or *ubparagrap%s means t%e variousparagrap%s and subparagrap%s o t%is Agreement and t%e various subparagrap%st%ereo$ +%e %eadings and titles o t%e paragrap%s o t%is Agreement are not a part ot%is Agreement but are or convenience only and are not intended to deine, limit orconstrue t%e contents o t%e various paragrap%s$

C$ +%is Agreement sets ort% t%e entire understanding o t%e parties %ereto andsupersedes all prior agreements, w%et%er oral or written, pertaining to t%e subectmatter %ereo$ +%e provisions and conditions o t%is Agreement supersede in allrespects t%e respective obligations o t%e Company and XYZ set ort% in t%e*%are%olders Agreement$

.$ Do provision o t%is Agreement s%all be modiied e0cept by a writteninstrument duly signed and acnowledged by eac% o t%e parties %ereto$

?$ +%is Agreement may be e0ecuted in multiple counterparts, eac% o w%ic%s%all be deemed an original, and all o w%ic% toget%er s%all constitute one and t%esame agreement$

IN WITNESS WHEREOF t%e parties %ereto %ave caused t%is Agreement to bee0ecuted t%e day and year irst above written$

COMPANY XYZ

_______________ _____________________

@age 9 o 9