and Appropriate Legal Release
October 11, 2010
17 S. Vanguard Court
San Diego, CA 92108
On October 10, 2010, you were informed that ABC Financial has made the decision to
eliminate your position as Controller effective October 31, 2010. This letter will set forth
in writing the terms and conditions of an agreement for an amicable separation of your
employment. This letter will outline the payments and benefits to which you are entitled.
Your separation from employment will be effective October 31, 2010. You will have to
turn in by the close of business on October 31 all keys, cards, documents, and other
company property or proprietary information. You will be paid your final paycheck at
that time, which will include your pay through October 31, 2010, as well as any hours
of accrued but unused vacation and any hours of holiday pay. Sick time is not a vested
benefit, and, therefore, you will not receive any compensation for unused sick leave.
As additional compensation, you will receive twenty-four (24) weeks of severance pay,
which will be paid in accordance with our regular biweekly pay cycle.
As part of this separation agreement, you may qualify for unemployment benefits
through the California Employment Development Department. ABC Financial will not
contest your application for unemployment compensation.
You will receive outplacement assistance under the services of Alexander and
Associates. You will participate in their Modified Executive Outplacement Program,
which will assist you for the next six months in finding gainful employment. Further
details about this outplacement arrangement will be provided by Heidi Clair, your
Your group coverage will continue through the end of this month. You will be offered
the opportunity to elect COBRA continuation coverage for the plans that are subject to
this provision and in which you are eligible to participate. If you choose to elect
COBRA, coverage will be continued effective November 1. We will pay your medical
premium as a single participant through your severance period.
You will be entitled to receive pension benefits to the extent that you are vested in the
company retirement annuity program, in accordance with the terms of the plan.
All other benefits, compensation, and privileges of your employment not specified
above will cease as of October 31, 2010.
In consideration of this agreement, you hereby release ABC Financial and all of its
affiliated or related entities as well as past and present officers, directors, employees,
representatives, and agents of ABC Financial and any of its affiliated or related entities
from any and all claims, demands, debts, losses, obligations, liabilities, costs, expenses,
attorneys’ fees, rights of action, and causes of action of any kind or character