Attached files
file | filename |
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10-K - FORM 10-K - Dolan Co. | c62255e10vk.htm |
EX-21 - EX-21 - Dolan Co. | c62255exv21.htm |
EX-23.2 - EX-23.2 - Dolan Co. | c62255exv23w2.htm |
EX-31.2 - EX-31.2 - Dolan Co. | c62255exv31w2.htm |
EX-23.1 - EX-23.1 - Dolan Co. | c62255exv23w1.htm |
EX-31.1 - EX-31.1 - Dolan Co. | c62255exv31w1.htm |
EX-32.2 - EX-32.2 - Dolan Co. | c62255exv32w2.htm |
EX-32.1 - EX-32.1 - Dolan Co. | c62255exv32w1.htm |
EX-10.16 - EX-10.16 - Dolan Co. | c62255exv10w16.htm |
Exhibit 10.45
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (this Agreement), effective as of July 12, 2010 (the Effective
Date), is between The Dolan Company, a Delaware corporation (the Company), and Renee Jackson
(Executive).
PRELIMINARY RECITAL
Beginning with the Effective Date, the Company desires to employ Executive and Executive
desires to be employed by the Company as the Vice President and General Counsel of the Company on
the terms and conditions contained herein.
AGREEMENT
In consideration of the premises, the mutual covenants of the parties hereinafter set forth
and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
1. Employment.
1.1 Engagement of Executive. The Company agrees to employ Executive as the Vice
President and General Counsel of the Company and Executive accepts such employment by the Company
for a period of two (2) years beginning on the Effective Date and ending on July 12, 2012 (the
Employment Period); provided, however, that, effective on July 13, 2011, the Employment Period
shall, on a daily basis, be automatically extended by one (1) day, such that at any time, the
remaining Employment Period shall be one (1) year; provided further that such day-to-day extensions
shall cease in the event either the Company or Executive, as the case may be, provides written
notice of such cessation to the other party and such cessation of the automatic extensions shall be
effective as of the date of delivery of such notice as determined pursuant to Section 5.2 below.
Notwithstanding anything to the contrary contained herein, the Employment Period is subject to
termination by the Company or Executive pursuant to Section 3 below.
1.2 Duties and Powers.
(a) Service with the Company. During the Employment Period, Executive shall (i) serve
as the Companys Vice President and General Counsel and shall report directly to the Chief
Operating Officer and, indirectly, to the Chief Executive Officer and (ii) have such other
responsibilities, duties and authorities, and render such other services for the Company, that are
consistent with Executives position as Vice President and General Counsel, as the Chief Operating
Officer or the Chief Executive Officer may from time to time reasonably direct.
(b) Service with Subsidiaries and other Affiliates. During the Employment Period,
Executive shall (i) have such responsibilities, duties and authorities, and render such services
for the Companys subsidiaries and other affiliates that are consistent with Executives position
as Vice President and General Counsel of the Company, as the Chief Executive Officer or the Chief
Operating Officer may from time to time reasonably direct; and (ii) at the reasonable request of
the Chief Executive Officer or Chief Operating Officer, serve as the Vice President and General
Counsel or director of each subsidiary or other affiliate of the Company; provided that
Executive shall not be entitled to any additional compensation for serving as an officer or
director of the Companys subsidiaries and other affiliates.
(c) Performance of Duties. Executive will devote her best efforts, energies and
abilities and her full business time, skill and attention (except for permitted vacation periods
and reasonable periods of illness) to the business and affairs of the Company, its subsidiaries and
other affiliates and shall perform the duties and carry out the responsibilities assigned to her,
to the best of her ability and in a diligent, trustworthy, businesslike and efficient manner.
Executive acknowledges that her duties and responsibilities will require her full-time business
efforts and agrees that during the Employment Period she will not engage in any other business
activity or have any business
pursuits or interests, except activities or interests which do not conflict with the business
of the Company, its subsidiaries and other affiliates and do not interfere with the performance of
Executives duties hereunder; provided that Executive shall be permitted to (i) continue to
serve on civic and charitable boards and committees (provided that in July of each year hereunder,
Executive furnishes the Board with a list of the civic and charitable boards and committees that
Executive is then serving on) and (ii) manage her personal investments and affairs, in each case so
long as the activities referred to in clauses (i) and (ii) above otherwise comply with the terms
and conditions of this Agreement, including the provisions of this Section 1.2(c); provided
further that Executive shall not, without the prior written consent of the Board, be
permitted to serve on any for profit entitys board of directors or committee or hold any similar
position with respect to any such entity.
2. Compensation.
2.1 Base Salary. Beginning on July 12, 2010 and ending December 31, 2010, the Company
will pay Executive a base salary (Base Salary) at the annual rate of $250,000. For the calendar
year beginning January 1, 2011, and for each subsequent calendar year during the Employment Period,
the Company will pay Executive a Base Salary equal to the Base Salary for the previous calendar
year increased by the positive percentage change, if any, in the CPI (as defined below) from the
month of December from two (2) years prior to the month of December from the previous year (e.g.,
the Base Salary effective for the 2011 calendar year will be equal to the Base Salary from 2010
increased by an amount equal to the positive percentage change, if any, in the CPI from the month
of December in 2009 to the month of December in 2010). The Base Salary shall be payable in regular
installments in accordance with the Companys general payroll practices for salaried employees. For
purposes hereof, CPI, for any month of December, means Consumer Price Index for All Urban
Consumers, U.S. City Average, all items, not seasonally adjusted, for such month and compiled upon
data (with the base 1982-84 equals 100) for such month (the Index). In the event that publication
or issuance of the Index is discontinued or suspended, the CPI shall be an index published or
issued by the United States Department of Labor or any bureau or agency thereof that computes
information from substantially the same statistical categories and substantially the same
geographic areas as those computed in the Index and that weights such categories in a substantially
similar way to the weighting of the Index at the Effective Date. In the event that the Index is
calculated upon a base year other than 1982-84, such adjustments to the CPI for each calendar year
shall be calculated as necessary to ensure that the CPI for each such calendar year is based on the
same Index. Executives Base Salary shall be subject to annual review by the Compensation Committee
of the Board (the Committee) and may be further increased (but not decreased) from time to time
as the Board determines.
2.2 Annual Bonus. During the Employment Period, in addition to the Base Salary,
Executive shall be eligible to receive an annual performance-based cash bonus (Annual Bonus) with
respect to each fiscal year of the Company. The Annual Bonus shall be based upon quantitative and
qualitative performance targets. Those targets, as well as the Annual Bonus target amount, shall be
established by the Committee in its sole discretion in accordance with the Companys annual bonus
plan; provided that the amount of Executives Annual Bonus for the year ending December 31,
2010 shall be $125,000; and provided further that Executives Annual Bonus target amount
for the year ending December 31, 2011 shall be 50% of her base salary. The Annual Bonus for a
fiscal year shall be paid to Executive in a cash lump sum in accordance with the terms of the
Companys annual bonus plan, but in any event shall be paid within two and one-half months after
the end of such fiscal year.
2.3 Benefits. In addition to the Base Salary and Annual Bonus (if any) payable to
Executive hereunder, Executive shall be entitled to four (4) weeks of paid vacation time per year
hereunder; club membership(s) as may be approved from time to time by the Committee; and all other
pension, welfare and fringe benefits and perquisites that are generally made available to other
senior executive officers of the Company (to the extent possible under applicable law) during the
Employment Period (the Benefits); provided that the Company does not guarantee the
adoption or continuance of any particular benefit plan or program or particular benefit.
2.4 Equity Awards.
(a) The Company will grant to Executive non-qualified stock options to purchase 13,242 shares
of the common stock, par value $.001 per share (the Common Stock), of the Company, pursuant to
the Companys 2007 Incentive Compensation Plan (the Incentive Compensation Plan). Such stock
options will be granted on the date
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(the Grant Date) that is the first Trading Day (as defined in the Incentive Compensation
Plan) of the next period during which equity awards may be made consistent with the Companys
applicable guidelines for the timing of such awards, which period is expected to commence during
August 2010. Such stock options will have an exercise price per share equal to the Fair Market
Value (as defined in the Incentive Compensation Plan) of a share of Common Stock on the Grant Date,
and the stock options will vest in the amount of 25% on each of the dates May 26, 2011, May 26,
2012, May 26, 2013 and May 26, 2014.
(b) The Company will grant to Executive on the Grant Date (i) 10,000 shares of restricted
stock under the Incentive Compensation Plan, all of which will vest on June 30, 2011 and (ii) 8,103
shares of restricted stock under the Incentive Compensation Plan that will vest in the amount of
25% on each of the dates May 26, 2011, May 26, 2012, May 26, 2013 and May 26, 2014.
(c) Executive will be eligible to receive further grants of equity awards during the term of
this Agreement at the sole discretion of the Committee.
(d) Upon the occurrence of any event satisfying the definition of a Change in Control under
the Incentive Compensation Plan with respect to any unvested equity award then held by Executive,
such equity award shall become vested.
2.5 Reimbursement of Expenses. The Company shall pay or reimburse Executive for
reasonable expenses incurred in the discharge of her duties hereunder, in accordance with the
Companys executive expense reimbursement policy as in effect from time to time. Executive shall
provide the Company with such vouchers or receipts as the Company deems reasonably necessary to
verify the amount of such expenses.
2.6 Taxes, etc. All compensation payable to Executive hereunder is stated in gross
amount and shall be subject to all applicable withholding taxes, other normal payroll deductions
and any other amounts required by law to be withheld.
2.7 Legal Fees and Expenses. The Company shall pay to Executive all reasonable legal
fees and expenses incurred by Executive in disputing in good faith any termination of her
employment hereunder or in seeking in good faith to obtain or enforce any benefit or right under
this Agreement, provided that Executive shall have a reasonable basis for her position. Without
limiting the generality of the forgoing, if any amount is not paid hereunder when due, including,
but not limited to, any amount of Base Salary, Annual Bonus (if any), fees or expenses, the amount
thereof shall bear interest from the due date thereof until paid in full at the rate of 10% per
annum; provided, however, that the reimbursement for fees and expenses pursuant to this Section 2.7
shall be made no later than the end of the calendar year following the calendar year in which such
legal fees or expenses were incurred. This Section 2.7 shall remain in effect throughout the
Employment Period and for a period of five (5) years following the termination of the Employment
Period.
3. Termination.
3.1 Termination.
(a) The Employment Period (i) shall automatically terminate immediately upon Executives
death, (ii) may be terminated at any time by the Board as set forth herein for Cause or without
Cause, or by reason of Executives Permanent Disability, upon written notice to Executive, (iii)
may be terminated at any time by Executive with Good Reason upon written notice to the Company, or
(iv) may be terminated at any time by Executive without Good Reason and without liability upon
thirty (30) days prior written notice to the Company.
(b) In addition to the capitalized terms defined elsewhere in this Agreement, the following
capitalized terms shall have the following meanings when used in this Agreement:
Cause means the occurrence of any of the following events:
(i) a material breach by Executive of any of the terms and conditions of this Agreement, which
breach remains uncured ten (10) days after receipt by Executive of written notice of such breach;
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(ii) Executive continues to willfully and materially fail to perform her duties hereunder, or
engages in excessive absenteeism unrelated to illness or permitted vacation, ten (10) days after a
written demand for performance is delivered to Executive by the Board or its representative, which
written demand specifically identifies the manner in which the Board believes that Executive has
not performed Executives duties;
(iii) Executives commission of theft, fraud, misappropriation or embezzlement in connection
with the Companys or its subsidiaries or affiliates business; or
(iv) Executives commission of criminal misconduct constituting a felony;
provided that, the definition of Cause hereunder shall supersede any definition of
cause contained in any employee benefit or incentive compensation plan or agreement now or
hereafter adopted by the Company and applicable to Executive that provides for a forfeiture or
payment upon the Executives violation of a Company policy or similar such conduct under such plan
or agreement.
Good Reason means the occurrence, without Executives express written consent, of any of the
following events; provided, however, that Executive gives the Company written
notice of circumstances giving rise to any of the following events no later than ninety (90) days
after the date that such circumstances come into existence; and provided further that any
termination of Executives employment for Good Reason, as a result of any such event or condition
that is not timely cured, must occur no later than the second anniversary of the date that such
event occurs: (i) the Company moves its principal offices from the Minneapolis-St. Paul
metropolitan area and requires Executive to relocate to the vicinity of such new offices; (ii) any
material diminution by the Company in Executives duties or responsibilities inconsistent with the
terms hereof, which diminution remains uncured thirty (30) days after receipt by the Company of
written notice of such breach; (iii) the Company materially breaches any of its obligations
hereunder, which breach remains uncured thirty (30) days after receipt by the Company of written
notice of such breach; (iv) a diminution in Executives Base Salary, a material diminution in the
target amount of any Annual Bonus, or a material diminution in Benefits available to Executive on
the Effective Date or as hereafter may be made available to Executive, other than, in each case
under this clause (iv): (x) any such diminution that is cured within thirty (30) days after receipt
by the Company of written notice of such diminution, or (y) any diminution of Benefits that also
applies to the other senior executives of the Company.
Permanent Disability as used herein shall mean that (i) Executive has begun receiving
disability income insurance payments under any disability income insurance policy that the Company
is then maintaining for the benefit of executive-level employees or (ii) if the Company is not then
maintaining disability income insurance for executive-level employees, Executive is unable to
perform, by reason of physical or mental incapacity, her duties or obligations under this Agreement
for a period of sixty (60) days in any consecutive 120-day period. The Board shall determine,
according to the facts then available, whether and when Executives Permanent Disability has
occurred. Such determination shall be reasonable and the Board, in making such determination, shall
take into consideration the opinion of Executives personal physician, if reasonably available.
Person means any individual, partnership, limited liability company, corporation, joint
venture, trust, or other entity.
Separation from Service means Executives termination of employment from the Company which
constitutes a separation from service, as such term is defined under Section 409A of the Internal
Revenue Code of 1986, as amended (the Code) or applicable guidance or regulations thereunder.
3.2 Compensation After Termination. (a) If the Employment Period is terminated (i) by
reason of Executives death, (ii) by the Company for Cause or by reason of Executives Permanent
Disability, or (iii) by Executive without Good Reason, then the Company shall have no further
obligations hereunder, including under Section 2, or otherwise with respect to Executives
employment from and after the termination date, except (x) for payment of Executives Base Salary
and Benefits accrued through the date of termination and any Annual Bonus due pursuant to Section
2.2 for the immediately preceding fiscal year to the extent unpaid on the date of such termination,
and (y) in the event the Employment Period is terminated due to Executives death or Permanent
Disability, Executive
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shall receive a pro rata Annual Bonus as provided in Section 3.2(b)(iv), and the Company shall
continue to have all other rights available hereunder at law, in equity or otherwise in connection
with such termination; provided, however, such pro rata Annual Bonus, if any, shall
be paid at such time as such Annual Bonus would normally be required to be paid under the Companys
annual bonus plan, subject to Section 2.2; provided further, that if the Employment
Period is terminated by reason of Executives Permanent Disability and such pro rata Annual Bonus
would be payable under the Companys annual bonus plan earlier than the date which is six (6)
months following the date on which Executive incurs a Separation from Service with the Company,
payment of such Annual Bonus shall be made on the date which is six (6) months following
Executives Separation from Service.
(b) If the Employment Period is terminated by the Company without Cause or by Executive with
Good Reason, then, in either case, the Company shall pay, or provide, to Executive:
(i) Executives Base Salary and Benefits accrued through the date of termination;
(ii) any Annual Bonus due pursuant to Section 2.2 for the immediately preceding fiscal year to
the extent unpaid on the date of such termination;
(iii) an amount equal to one (1) year of the annual Base Salary in effect at the time the
Executive incurs such termination (determined without regard for any diminution in such Base Salary
constituting Good Reason for Executives resignation), payable to Executive in a lump sum on the
date which is six (6) months following Executives Separation from Service; and
(iv) a pro-rated portion (based upon the number of days elapsed in the fiscal year in which
the Employment Period is terminated through the date of such termination) of the Annual Bonus, if
any, that would have been payable to Executive for such fiscal year pursuant to Section 2.2
(determined without regard for any diminution in the target amount of such Annual Bonus opportunity
constituting Good Reason for Executives resignation) had Executive remained employed by the
Company for the entire fiscal year. Such pro rata Annual Bonus, if any, shall be paid at such time
as such Annual Bonus would normally be required to be paid under the Companys annual bonus plan,
subject to Section 2.2; provided, however, that if such pro rata Annual Bonus would
be payable under the Companys annual bonus plan earlier than the date which is six (6) months
following the date on which Executive incurs a Separation from Service with the Company, payment of
such Annual Bonus shall be made on the date which is six (6) months following Executives
Separation from Service; provided that the Companys obligation under Sections 3.2(b)(iii)
and (iv) is contingent on Executives execution, delivery and non-rescission of a general release
of all claims against the Company in the form of Exhibit A attached hereto.
If the Company does not execute and deliver any such release to Executive at least sixty (60) days
before the end of the six (6) month period following Executives Separation from Service, the
Company shall be deemed to have elected not to require Executives execution of such a release. If
the Company shall have timely executed and delivered such a release to Executive, and Executive
either fails to execute and deliver the release to the Company at least thirty (30) days before the
end of that six (6) month period, or she does so but rescinds such release before any payment is
otherwise due under Section 3.2(b)(iii) or Section 3.2(b)(iv), the Company shall have no
obligations under Sections 3.2(b)(iii) and (iv). Except for the Companys obligations, if any,
under this Section 3.2(b) and as otherwise provided in Section 3.3, the Company shall have no
further obligations hereunder, including under Section 2, or otherwise with respect to Executives
employment, from and after the termination date.
3.3 Continuation of Medical and Dental Benefits. (a) If the Employment Period is
terminated (i) by the Company without Cause or (ii) by Executive with Good Reason, then, during the
eighteen (18) months following such termination (such period, the Benefits Period), the Company
shall provide medical and dental benefits to Executive and her covered dependents on the same terms
and conditions as if Executive continued to remain an active employee of the Company (in all events
below determined without regard for any diminution of such coverage constituting Good Reason for
her resignation hereunder), subject to Executive timely electing coverage pursuant to the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (COBRA) on the following terms
and conditions:
(A) So long as the terms of the medical and dental plan (the Medical Plan) under which the
medical and dental benefits are provided allow Executives continued participation therein, the
Company will continue to
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offer Executive medical and dental coverage substantially equivalent to the medical and dental
coverage which Executive was receiving immediately prior to such termination;
(B) If during the Benefits Period Executive is no longer eligible to receive the medical and
dental coverage provided under subparagraph (A) under the Medical Plan but is eligible for a
conversion option providing comparable benefits (with full coverage credit for any preexisting
condition limitation) as those provided to Executive and her covered dependents under the Medical
Plan as she was receiving immediately prior to such termination, then Executive shall exercise such
conversion option if directed by the Company and the Company shall thereafter pay the premium for
such medical and dental coverage to be provided under such conversion option for the duration of
the Benefits Period; and
(C) If during the Benefits Period Executive and her covered dependents are no longer eligible
to receive medical and dental coverage under the Medical Plan and are not eligible (or are no
longer eligible) for conversion coverage under the Medical Plan, in both cases comparable to such
coverage that Executive and her covered dependents were receiving immediately prior to such
termination as provided under subparagraphs (A) and (B) above, then the Company shall reimburse
Executive for the duration of the Benefits Period for the premiums that Executive incurs to acquire
medical and dental coverage which is comparable to the medical and dental coverage which Executive
was receiving immediately prior to the end of coverage under the Medical Plan or conversion option.
(b) Any medical and dental coverage provided by the Company under this Section 3.3 shall run
simultaneously with any benefits to which Executive or her dependents may be entitled under COBRA.
3.4 Payment Delay. Any amount to be paid or benefit to be provided by the Company to
the Executive under Section 3.2 (and any other payment under this Agreement made in connection with
Executives termination of employment except for payments made under Section 3.3) which is deferred
compensation subject to Section 409A of the Code or applicable guidance or regulations thereunder,
shall be paid to Executive in a lump sum on the date which is six (6) months following the date of
Executives Separation from Service.
3.5 No Mitigation; No Set-Off. The Companys obligation to make the payments provided
for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by
any set-off, counterclaim, recoupment, defense or other claim, right or action (provided Executive
enters into and does not rescind the general release provided in Section 3.2(b) and subject to the
proviso in the succeeding sentence) which the Company may have against Executive or others, other
than any action the Company may need to take pursuant to Section 304 of the Sarbanes-Oxley Act of
2002. In no event shall Executive be obligated to seek other employment or take any other action by
way of mitigation of the amounts payable to Executive under any of the provisions of this Agreement
and such amounts shall not be reduced whether or not Executive obtains other employment;
provided that the Companys obligation under Section 3.3 with respect to medical and dental
benefits shall be limited to the extent that Executive obtains any such medical or dental benefits
from another employer during the benefit continuation period provided thereunder, in which case the
Company may reduce the coverage of any medical and dental benefits it is required to provide
Executive under Section 3.3 as long as the aggregate coverages of the combined benefits provided by
the Company and such other employer are comparable to the benefits to be provided to Executive by
the Company under Section 3.3. The provisions of this Section 3.5 shall survive the expiration or
earlier termination of this Agreement for any reason.
3.6 Change in Control Plan. Effective on the date of this Agreement, Executive will
be designated as a Participant under the Companys Executive Change in Control Plan at an Employee
Grade of Two.
4. Negative Covenants.
4.1 Confidential Information. Other than in the performance of her duties hereunder,
during the Employment Period and thereafter, Executive shall keep secret and retain in strictest
confidence, and shall not, without the prior written consent of the Board, furnish, make available
or disclose to any third party or use for Executives own benefit or the benefit of any third
party, any Confidential Information. As used herein, Confidential Information shall mean any
information relating to the business or affairs of the Company, including, but not limited to, the
Companys products, servicing methods, development plans, costs, finances, marketing plans,
equipment
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configurations, data, data bases, access or security codes or procedures, business
opportunities, names of customers, research and development, inventions, algorithms, know-how and
ideas, and other proprietary information used by the Company in connection with its business;
provided, however, that Confidential Information shall not include any information
which is in the public domain or becomes generally known in the industry other than as a result of
Executives breach of the covenant contained in this Section 4.1 or the disclosure of which may be
required by law or in a judicial or administrative proceeding. Executive acknowledges that the
Confidential Information is vital, sensitive, confidential and proprietary to the Company.
4.2 Non-Competition and Interference with Relationships.
(a) During the Employment Period and for a period of twelve (12) months following the
expiration or earlier termination of the Employment Period (the Restricted Term), except as
permitted by paragraph (c) of this Section 4.2, Executive shall not, directly or indirectly, alone
or in combination with any other firm, partnership, company, corporation or person, (i) engage in,
participate in or otherwise assist (whether as an owner, officer, partner, principal, joint
venturer, shareholder, director, member, manager, investor, employee, agent, independent
contractor, consultant or otherwise) any other person, entity or business (a Competitor) engaged
in or planning to engage in the Business of the Company (as defined below) in any State of the
United States of America, or in any foreign country in which the Company or an affiliate or
subsidiary of the Company is conducting such Business of the Company on the date of such
termination (the Restricted Territory), unless (x) at the time of the proposed action by
Executive, (1) the revenues of any such Competitor from a Business of the Company for the preceding
fiscal year of such Competitor constituted less than fifteen percent (15%) of the total revenues of
such Competitor for such fiscal year and (2) Executive provides the Company with a signed
certificate from the independent accountants for such Competitor stating that, in such independent
accountants good faith reasonable judgment, the annual revenues of such Competitor from a Business
of the Company will be less than fifteen percent (15%) of the total annual revenues of such
Competitor during the Restricted Term, or (y) the sole action of Executive with respect to a
Competitor that is a publicly traded company consists of acquiring not more than 1% of the
outstanding shares of such Competitor; or (ii) solicit or encourage any customer or partner of the
Company or its affiliates (determined as of the date of the termination of the Employment Period)
to terminate or otherwise alter his, her or its relationship with the Company.
(b) During the Restricted Term, Executive shall not, directly or indirectly, alone or in
combination with any other firm, partnership, company, corporation or person, employ, retain or
solicit or attempt to solicit for employment or retention as an independent contractor, or
otherwise attempt to hire, persuade or assist in the hiring of (or assist any other party to take
any such action regarding), any individual employed or engaged by the Company during the Restricted
Term; or encourage, induce, or persuade any such person to terminate her or her employment or other
relationship with the Company.
(c) As it relates to the practice of law, this Section 4.2 shall be interpreted consistently
with and shall be binding and enforceable only to the extent permitted by the Minnesota Rules of
Professional Conduct or other applicable ethical rules (in Minnesota and other controlling
jurisdictions), if any, including Rule 5.6. The parties acknowledge that the Executives legal
representation of a Person engaged in the Business of the Company shall not violate this Section
4.2; provided such legal representation is provided consistently with the Minnesota Rules of
Professional Conduct or other applicable ethical rules (in Minnesota and other controlling
jurisdictions), including Rules 1.6 and 1.9 to the extent applicable.
(d) For purposes hereof, Business of the Company means (i) the court and commercial
newspaper and/or business journal publishing business, (ii) the business of providing mortgage
default processing services, appellate services and/or litigation support services to the legal
profession, or (iii) any additional business in which the Company becomes engaged or has actively
and substantially implemented plans to become engaged as of the date of termination of the
Employment Period; provided that in the event any of the foregoing businesses are sold or are
discontinued during the Restricted Period, the Business of the Company shall cease to include
such sold or discontinued business as of the date of sale or discontinuation; provided further that
if the Company becomes re-engaged or implements plans to become re-engaged in any such sold or
discontinued business, the Business of the Company shall again include such business.
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4.3 Mutual Non-Disparagement. Neither party shall, at any time during the Employment
Period or thereafter, make statements or representations, or otherwise communicate, directly or
indirectly, in writing, orally or otherwise, or take any action which may, directly or indirectly,
disparage or be damaging to the other party (including any of the Companys subsidiaries, other
affiliates, officers, directors, employees, partners or stockholders); provided that
nothing in this Section 4.3 shall preclude either party from making truthful statements or
disclosures that are required by applicable law, regulation or legal process.
4.4 Scope and Severability. The parties acknowledge that the Business of the Company
is and will be national and international in scope and thus the covenants in this Section 4 would
be particularly ineffective if the covenants were to be limited to a particular geographic area of
the United States. If any court of competent jurisdiction at any time deems the Restricted Term
unreasonably lengthy, or the Restricted Territory unreasonably extensive, or any of the covenants
set forth in Section 4 not fully enforceable, the other provisions of Section 4, and this Agreement
in general, will nevertheless stand and to the fullest extent consistent with law continue in full
force and effect, and it is the intention and desire of the parties that the court treat any
provisions of this Agreement which are not fully enforceable as having been modified to the extent
deemed necessary by the court to render them reasonable and enforceable and that the court enforce
them to such extent (for example, that the Restricted Term be deemed to be the longest period
permissible by law, but not in excess of the length provided for in Section 4.2, and the Restricted
Territory be deemed to comprise the largest territory permissible by law under the circumstances,
but not in excess of the territory provided for in Section 4.2).
4.5. Remedies. Executive acknowledges and agrees that the covenants set forth in this
Section 4 (collectively, the Restrictive Covenants) are reasonable and necessary for the
protection of the Companys business interests, that irreparable injury will result to the Company
if Executive breaches any of the terms of the Restrictive Covenants, and that in the event of
Executives actual or threatened breach of any of the Restrictive Covenants, the Company will have
no adequate remedy at law. Executive accordingly agrees that in the event of any actual or
threatened breach by her of any of the Restrictive Covenants, the Company shall be entitled to
immediate temporary injunctive and other equitable relief, without bond and without the necessity
of showing actual monetary damages. Nothing contained herein shall be construed as prohibiting the
Company from pursuing any other remedies available to it for such breach or threatened breach,
including the recovery of any damages. The provisions of Section 4 shall survive the expiration or
earlier termination of this Agreement for any reason.
5. Miscellaneous.
5.1 Determinations by the Board or the Committee. Except as specifically provided
herein to the contrary (such as, without limitation, Executives rights to appear before the Board
in connection with any determination of Cause with respect to a termination of the Employment
Period by the Company), with respect to any determinations to be made by the Board or the Committee
in connection with Executives employment hereunder, Executive shall not have the right to
participate in the deliberations of such determination and shall abstain from any vote of the Board
or the Committee with respect thereto.
5.2 Notices. Any notices required hereunder shall be in writing and shall be deemed
delivered upon actual receipt (or refusal to accept receipt) and may be sent by (i) personal
delivery, (ii) U.S. certified or registered mail, return receipt requested, or (iii) reputable
overnight air courier service; for the Company, to the address listed below or for the Executive,
to the last address on file with the Company (or such other addresses as may be designated by
either party by giving notice in accordance with this Section 5.2):
To the Company:
The Dolan Company
222 South Ninth Street, Suite 2300
Minneapolis, Minnesota 55402
222 South Ninth Street, Suite 2300
Minneapolis, Minnesota 55402
Attention: | James Dolan, President and CEO John Bergstrom, Compensation Committee |
5.3 Entire Agreement. This Agreement embodies the complete agreement and understanding
among the parties and supersedes and preempts any prior understandings, agreements or
representations by or among the
8
parties, written or oral, which may have related to the subject matter hereof in any way,
including, without limitation, the Prior Agreement.
5.4 Counterparts. This Agreement may be executed by facsimile or email transmission
and on separate counterparts, each of which is deemed to be an original and both of which taken
together constitute one and the same agreement.
5.5 Successors and Assigns. This Agreement is intended to bind and inure to the
benefit of and be enforceable by Executive and the Company and their respective successors and
permitted assigns. Executive may not assign any of her rights or obligations hereunder without the
written consent of the Company.
5.6 Amendments and Waivers. Any provision of this Agreement may be amended or waived
only with the prior written consent of the Company and Executive.
5.7 Governing Law. This Agreement shall be construed and enforced in accordance with,
and all questions concerning the construction, validity, interpretation and performance of this
Agreement shall be governed by, the laws of the State of Delaware, without giving effect to
provisions thereof regarding conflict of laws.
5.8 Section 409A. It is intended that any income or payments to Executive provided
pursuant to this Agreement (any such income or payments being referred to as Payments) will not
be subject to the additional tax and interest under Section 409A (a Section 409A Tax). The
provisions of the Agreement will be interpreted and construed in favor of complying with any
applicable requirements of Section 409A necessary in order to avoid the imposition of a Section
409A Tax. The Company and Executive agree to amend (including retroactively) the Agreement in order
to comply with Section 409A, including amending to facilitate the ability of Executive to avoid the
imposition of, or reduce the amount of, any Section 409A Tax. The Company and Executive shall
reasonably cooperate to provide full effect to this provisions and the consent to any amendment
described in the preceding sentence shall not be unreasonably withheld by either party. The parties
agree that neither party has (a) an obligation to bring any potential Section 409A Tax to the
attention of the other party or (b) any liability for any Section 409A Tax or any other reporting
or withholding obligation to the other party.
IN WITNESS WHEREOF, the parties have executed this Employment Agreement as of the date first
written above.
COMPANY: THE DOLAN COMPANY |
||||
/s/ James P. Dolan | ||||
James P. Dolan | ||||
Chief Executive Officer and President | ||||
EXECUTIVE: | ||||
/s/ Renee Jackson | ||||
Renee Jackson | ||||
9
EXHIBIT A
RELEASE
THIS RELEASE (this Release) is made as of this _____ day of _____ , _____ , by and
between The Dolan Company, a Delaware corporation (the Company), and Renee Jackson (Executive).
PRELIMINARY RECITALS
A. Executive and the Company entered into that certain Employment Agreement, dated as of July
12, 2010 (the Agreement).
B. Executives employment with the Company as Vice President and General Counsel has
terminated.
C. In connection with the termination of Executives employment, under the Agreement,
Executive is entitled to certain payments and other benefits, subject to Executives execution,
delivery and non-rescission of this Release.
AGREEMENT
In consideration of the payments and other benefits due Executive under the Agreement, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
1. Executive, intending to be legally bound, does hereby, on behalf of herself and her agents,
representatives, attorneys, assigns, heirs, executors and administrators (collectively, the
Executive Parties) REMISE, RELEASE AND FOREVER DISCHARGE the Company, its affiliates,
subsidiaries, parents, joint ventures, and its and their officers, directors, shareholders,
members, managers and employees, and its and their respective successors and assigns, heirs,
executors, and administrators (collectively, the Company Parties) from all causes of action,
suits, debts, claims and demands whatsoever in law or in equity, which Executive or any of the
Executive Parties ever had, now has, or hereafter may have, by reason of any matter, cause or thing
whatsoever, through the date of this Release, and particularly, but without limitation of the
foregoing general terms, any claims arising from or relating in any way to Executives employment
relationship with Company, the terms and conditions of that employment relationship, and the
termination of that employment relationship, including, but not limited to, any claims arising
under the Age Discrimination in Employment Act (ADEA), as amended, 29 U.S.C. § 621 et seq., Title
VII of The Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e et seq., the Civil Rights Act of
1966, 42 U.S.C. 1981, the Civil Rights Act of 1991, Pub. L. No. 102-166, the Americans with
Disabilities Act, 42 U.S.C. § 12101 et seq., the Fair Labor Standards Act, 29 U.S.C. 201 et seq.,
the National Labor Relations Act, 29 U.S.C. 151 et seq., the Constitution for the State of
Minnesota or the Minnesota Human Rights Act, and any other claims under any federal, state or local
common law, statutory, or regulatory provision, now or hereafter recognized, and any claims for
reasonable attorneys fees and costs, but not including such claims to payments, benefits and other
rights provided Executive under the Agreement or as may be due Executive under any employee benefit
plan of the Company in accordance with the terms of such plan. This Release is effective without
regard to the legal nature of the claims raised and without regard to whether any such claims are
based upon tort, equity, implied or express contract or discrimination of any sort. Except as
specifically provided herein, it is expressly understood and agreed that this Release shall operate
as a clear and unequivocal waiver by Executive of any claim for accrued or unpaid wages, benefits
or any other type of payment.
2. Executive, on behalf of herself and the Executive Parties, agrees never to bring (or cause
or permit to be brought) any action or proceeding against the Company or any Company Party,
regarding employment, discrimination in employment, or the termination of employment, and the
common law of any state relating to employment contracts, wrongful discharge, public policy torts,
remuneration in employment, or any other matter released pursuant to Section 1. Executive agrees
that in the event that any claim, suit or action released by this
Release shall be commenced by her or any of the Executive Parties against the Company or any
Company Party, this Release shall constitute a complete defense to any such claim, suit or action
so instituted.
3. Executive hereby covenants and agrees, on behalf of herself and the Executive Parties, that
neither she nor any of the Executive Parties will encourage any person or entity to file a lawsuit,
claim or complaint against the Company or any Company Party relating to the claims released by this
Release. Executive hereby covenants and agrees, on behalf of herself and the Executive Parties,
that neither she nor any of the Executive Parties will assist any person or entity who files or has
filed a lawsuit, claim, or complaint against the Company or any Company Party relating to the
claims released under this Release unless Executive or such Executive Party is required to render
such assistance pursuant to a lawful subpoena or other legal obligation. If Executive or any
Executive Party is served with any such legal subpoena or becomes subject to any such legal
obligation, Executive shall provide prompt written notice to the Company thereof and enclose a copy
of the subpoena and any other documents describing the legal obligation with such written notice.
4. Executive further agrees and recognizes that she has permanently and irrevocably severed
her employment relationship with the Company, that she shall not seek employment with the Company
or any affiliated entity at any time in the future, and that the Company has no obligation to
employ her in the future.
5. The parties agree and acknowledge that the Agreement, and the settlement and termination of
any asserted or unasserted claims against the Company and the Company Parties pursuant to this
Release, are not and shall not be construed to be an admission of any violation of any federal,
state or local statute or regulation, or of any duty owed by the Company or any of the Company
Parties to Executive.
6. Executive certifies and acknowledges as follows:
(a) That she has read the terms of this Release, and that she understands its terms and
effects, including the fact that she has agreed to RELEASE AND FOREVER DISCHARGE the Company and
all Company Parties from any legal action or other liability of any type related in any way to the
matters released pursuant to this Release other than as provided in the Agreement and in this
Release;
(b) That she has signed this Release voluntarily and knowingly in exchange for the
consideration described herein, which she acknowledges is adequate and satisfactory to her and
which she acknowledges is in addition to any other benefits to which she is otherwise entitled;
(c) That she has been advised in writing to consult with an attorney prior to signing this
Release;
(d) That she does not waive rights or claims that may arise after the date this Release is
executed other than those claims arising under the Agreement or any employee benefit plan of the
Company in accordance with the terms of such plan;
(e) That the Company has provided her with a period of twenty-one (21) days within which to
consider this Release, and that Executive has signed on the date indicated below after concluding
that this Release is satisfactory to her; and
(f) That she has fifteen (15) calendar days after signing this Release within which to rescind
this Release, in writing and delivered to the Company.
Intending to be legally bound hereby, Executive and the Company executed the foregoing Release
this _____ day of _____ , _____ .
Renee Jackson | ||||||||
Witness: |
||||||||
THE DOLAN COMPANY | ||||||||
By: | ||||||||
Name: | ||||||||
Title: | ||||||||
Witness: |
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