Cathy Sigalas Employment Termination and Severance Agreement

Summary

This agreement outlines the terms of Cathy Sigalas's employment termination as General Counsel and Corporate Secretary, effective July 21, 2001. Ms. Sigalas will assist with the transition until August 10, 2001. She will receive a total severance of $262,000, paid in monthly installments through February 2002. Certain stock options will vest, while others will be forfeited. The severance payments are structured to help cover taxes on vested shares, and unused leave will be applied toward these taxes. No additional relocation or transition payments are provided beyond her employment agreement.

EX-10.11 9 dex1011.txt SIGALAS TERMS OF CONTRACT TERMINATION Exhibit 10.11 - ------------- Cathy Sigalas, General Counsel and Corporate Secretary Terms of Contract Employment termination date: July 21, 2001 Notwithstanding the termination of her employment, Ms. Sigalas will continue to work through a transition with her replacement, currently anticipated to be through August 10. Other than her rights under her employment agreement, Ms. Sigalas is not entitled to any Relocation related severance or transition payments. Total Contractual Severance Due: $262,000 (18 months salary) Ms. Sigalas has agreed to receive her severance in monthly payments, rather than in a lump sum, as follows: Payments: July 27, 2001: $45,000 - -------- August 27, 2001: $30,000 September 27, 2001: $30,000 October 27, 2001: $30,000 November 27, 2001: $30,000 December 27, 2001: $30,000 January 27, 2002: $30,000 February 27, 2002: $37,500 Vesting of stock options/Forfeiture of certain options: - ------------------------------------------------------- Effective July 21, 2001, the following options will vest: Date of grant Number of options vested ------------- ------------------------ April 7, 1999 13,000 September 1, 1999 25,000 March 29, 2000 62,000 Effective July 21, 2001, the following options will be forfeited and expire: Date of grant Number of options vested ------------- ------------------------ May 31, 1995 927.27 December 23, 1997 12,000 * The objective of this payment is to cover the taxes due on the vesting of Ms. Sigalas' ESEP shares, and to leave Ms. Sigalas with a balance of a few thousand dollars until the next payment on August 27, Ms. Sigalas gave up about $105,000 in salary during the course of the ESEP Program, and approx. 85,000 shares will vest on termination of other employment. Before applying any amount of severance to the taxes due on vesting of the ESEP shares, unused leave will be credited to payment of those taxes.