This excerpt taken from the GMCR DEF 14A filed Jan 26, 2009.
Mr. Lazaris Separation Agreement and Consulting Agreement
Mr. Lazaris resigned as President of Keurig, Incorporated effective as of June 16, 2008. During the period from June 16, 2008 through August 15, 2008, Mr. Lazaris served as a special advisor to the Companys chief executive officer and continued in a transitional role with Keurig. As previously discussed, Mr. Lazaris continued to receive his then current base salary during this time pursuant to a separation and transition agreement. In addition to base salary, this agreement provided for a lump sum severance payment of $195,936. The Committee determined that the severance arrangement was desirable to secure Mr. Lazariss continued assistance in Keurigs patent litigation against Kraft Foods Inc., Kraft Foods Global, Inc. and Tassimo Corporation and his continued assistance while Keurig transitioned to operations without his services. The Committee also determined the severance payment was appropriate to compensate him for his performance during the fiscal year given that he would not participate in the annual incentive bonus plan. The Committee determined the amount of this lump sum payment was appropriate, as it reflected an amount that approximated what Mr. Lazaris would have earned under the annual incentive plan if he had continued to be employed at fiscal year end. The severance agreement re-affirmed Mr. Lazariss non-competition obligations in his prior employment agreement which require him to refrain from competitive activity and solicitation of Keurig or Company employees for a period of 18 months and contained a standard release of claims. On March 31, 2008, Mr. Lazaris also entered into a consulting agreement with the Company pursuant to which he agreed to serve as a consultant to the Company with respect to the patent infringement lawsuit filed by Keurig against Kraft Foods Inc., Kraft Foods Global, Inc. and Tassimo Corporation in exchange for a monthly retainer of $5,000 and a $450 per hour service fee. The patent litigation settled on October 23, 2008, and the consulting agreement terminated according to its terms.