AMERITRADE HOLDING CORP
SEPARATION AND RELEASE AGREEMENT
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>c78868exv10w1.txt
<DESCRIPTION>SEPARATION AND RELEASE AGREEMENT
<TEXT>
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                                                                    EXHIBIT 10.1

                        SEPARATION AND RELEASE AGREEMENT

         THIS SEPARATION AND RELEASE AGREEMENT ("Agreement") is made as of April
1, 2003, by and between Ameritrade Holding Corporation, and its subsidiaries,
affiliates, successors and assigns (collectively, the "Company") and the
Executive Vincent Passione, his heirs, representatives, affiliates, successors
and assigns (collectively the "Employee").

                              EXPLANATORY STATEMENT

         Employee was hired by Ameritrade Holding Corporation ("Holding"), the
terms of which were set out in a certain employment agreement between Ameritrade
Holding Corporation and the Executive with an effective date of February 1, 2002
("AHC Agreement"). The parties mutually decided that it is in their best
interests for the Employee to resign and to enter into this Agreement to provide
to the terms of such resignation. Moreover, the parties have voluntarily reached
a full and final resolution of all matters arising from, or related to,
Employee's employment with the Company.

         NOW, THEREFORE, in consideration of the covenants undertaken in this
Agreement by each of the parties, including the release contained herein, the
parties agree as follows:

1. Termination. Employee agrees to resign effective as of April 1, 2003
("Effective Date"). As of the Effective Date, Employee will relinquish his
position as President, Institutional Client Division and as an employee and
officer of the Company and to the extent he holds any such position, as an
employee and officer of each of the subsidiaries of Holding. Employee has
delivered herewith to the Company a resignation letter attached as Exhibit A
(the "Resignation Letter") and will execute and deliver to the Company any other
documents as reasonably requested by the Company to properly reflect such
resignation. From and after the Effective Date, Employee will no longer be
authorized to act on behalf of the Company or to incur any expenses, obligations
or liabilities on behalf of the Company.

2. Benefits. Upon Employee's execution of this Agreement and further upon the
later to occur of (a) expiration of the seven (7) day revocation period
explained in Section 17 below, or (b) the Effective Date ("Expiration Date") and
subject to Employee's compliance with the terms of this Agreement, the Company
will pay Employee:

                  a.       A sum equal to Employee's current annual base salary
                           prorated for a period of six (6) consecutive months
                           immediately following the effective date (the
                           "Initial Severance Term") (from which all applicable
                           federal, state and local taxes shall be with held),
                           such amounts to be payable pursuant to Company's
                           regular payroll schedule. If the Employee has not
                           accepted comparable employment upon the termination
                           of the Initial Severance Term, then the Company will
                           pay the Employee an additional sum equal to
                           Employee's current annual base salary prorated for a
                           period of three (3) consecutive months immediately
                           following the expiration of the Initial Severance
                           Term (the "Extended Severance Term") payable pursuant
                           to the Company's regular payroll schedule; and

                  b.       An amount equal to $350,000, from which all
                           applicable federal, state and local taxes shall be
                           withheld, representing Employee's full Target Bonus
                           (as defined in the AHC Agreement) (target = 100% of
                           base salary) for fiscal year 2003, such amount to be
                           payable as soon as practicable following the close of
                           the Company's fiscal year, at the same time it would
                           have been paid if the Employee's employment would
                           have continued, but not later than November 1, 2003.
                           Employee's accrued but unused PTO, if any, shall be
                           paid at the same time as the bonus.

                  c.       With respect to Employee's deferred compensation, the
                           Employee previously elected to receive his payments
                           of his October 12, 2001 deferral in a single sum as
                           soon as practicable following termination. With
                           respect to Employee's deferral dated September 27,
                           2001 which was previously payable in five (5) annual
                           installments post termination, Employee has



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                           requested, and the company has agreed, that such
                           deferral will be paid in a lump sum as soon as
                           practical following employee's termination but not
                           later than May 31, 2003. Any applicable income tax
                           shall be withheld from these payments.


3. COBRA. Effective on May 1, 2003, Employee may elect to receive COBRA
benefits. If so elected by the Employee, The Company will pay any COBRA
premiums, in their entirety, for a period of six (6) months during the Initial
Severance Term. If Employee has not accepted employment upon the termination of
the Initial Severance Term, then the Company will pay any COBRA premiums, in
their entirety, during the Extended Severance Term. After that period, the
Employee may continue participation in the COBRA benefits, for the period
eligible, and will be charged the full COBRA premium cost which is the regular
associate contribution plus the contribution normally paid by the Company plus a
2% administrative fee. If Holding changes its plan during such period, Employee
will remain entitled to participate in such new plan, subject to the terms of
the new plan and the payment of the appropriate COBRA premiums for such
coverage.

4. Other Payments, Benefits and 401(k). Except as provided for above, and
Employee's vested rights, if any, in the Ameritrade Holding Corporation
Associates 401(k) Profit Sharing Plan (the "401(k) Plan"), as defined in the
401(k) Plan document, Employee will not be entitled to any other or further
compensation, remuneration, payments or benefits of any kind, including but not
limited to paid time off hours, 401(k) Plan company contributions, life,
disability and dental insurance, and other salary continuation benefits.

5. Equipment. Employee may retain his cellular phone. The cost of service on the
cellular phone shall be transferred to Employee upon the Effective Date.
Employee agrees to purchase his laptop computer from the Company for a cost of
$750 to be deducted from his next paycheck following the Effective Date. The
laptop computer shall be inspected by the Company and any Company software or
hard drive information shall be removed by the Company.

6. Outplacement Services. The Company shall pay costs for outplacement services
provided by HQ Global Workplaces, Inc. (the "Outplacement Services") during the
Initial Severance Term, at a cost of approximately $1200 per month, plus sundry
expenses, if any. If Employee has not accepted employment upon the termination
of the Initial Severance Term, then the Company will pay for the costs of
continuing HQ Global Workplaces, Inc. Outplacement Services during the Extended
Severance Term.

7. Non Compete and Confidentiality. Employee expressly acknowledges and confirms
his obligations to comply with the following provisions of the AHC Agreement (a)
Section 4, entitled Non-Competition, Non-Solicitation and Non-Hire Provisions,
(b) Section 5, entitled Confidential Information and Intellectual Property, and
(c) Section 9 entitled Effect of Non-Competition, Non-Solicitation, Non-Hire or
Confidentiality and Intellectual Property Provisions, all of which survive the
cessation of Employee's employment and termination of the AHC Agreement. Copies
of such provisions are attached hereto as Exhibit B and made a part of this
Agreement. Notwithstanding anything to the contrary in this Section 7 or in the
AHC Agreement, Employee's obligations to comply with Section 4 of the AHC
Agreement shall continue for the Initial Severance Term and the Extended
Severance Term, as applicable, only, and employee will not be required to comply
with Section 4 of the AHC agreement after the expiration of the initial
severance term and the extended severance term, if applicable. Employee's
signature on this Agreement shall serve as a representation and warranty that
Employee has complied with the terms of the AHC Agreement requiring Employee to
return any originals or copies of Company materials as described therein.

8. Release. Employee fully and completely releases and will not sue, directly or
indirectly, Ameritrade Holding Corporation, its affiliates, subsidiaries,
divisions, and related entities and their respective officers, directors,
employees, agents, predecessors, successors and assigns (collectively, "the
Released Parties") from and concerning any and all liability, claims, causes of
action, demands, obligations, attorneys fees, actions, and damages of any kind
whatsoever, whether known or unknown, contingent or noncontingent, that you may
now or in the future have against the Released Parties which arose on or before
the date that Employee signs this Agreement. These released claims include, but
are not limited to, employment discrimination actions under Title VII of the
Civil Rights Act of 1964 as amended by the Civil Rights Act of 1991, the Age
Discrimination in Employment Act as amended by the Older Worker Benefit
Protection Act ("ADEA"), the Equal Pay Act of 1963, the Americans with
Disabilities Act of 1990, the Fair Labor Standards Act, the Equal Employment
Opportunity Act of 1972, the National Labor Relations


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Act as amended, the Employee Retirement Income Security Act of 1974 as amended
("ERISA"), the Worker Adjustment and Retraining Notification Act of 1988, the
Family and Medical Leave Act, 42 U.S.C. 1981, and any other federal, state or
local human rights, civil rights, labor, employment, contract, tort or other
laws, based on Employee's employment with or termination by the Company, or any
other relationship with the Released Parties; except that this release shall not
affect any of the Company's obligations to Employee under this Agreement or the
Stock Option Agreement (as hereafter defined). This release is not intended to
waive any rights or claims of Employees that may arise after the date Employee
signs this Agreement. Employee will indemnify, defend and hold the Released
Parties harmless from any damages, including without limitation, attorney fees
if they are sued by Employee or Employee's assignee, with respect to any of the
claims released in this section.

9. Non-Compliance and Disparagement. Employee's receipt of the severance
benefits detailed in Sections 2, 3, 4, 5, and 6 of this Agreement ("Severance
Benefits") is conditioned upon Employee's compliance with the provisions of this
Agreement, including the provisions incorporated or surviving from the AHC
Agreement and the Option Agreement described below. Each of these provisions is
material, and if any are violated, the Company may withhold and/or recover any
of the Severance Benefits paid or agreed to be paid to Employee, without waiving
its right to pursue any other available legal or equitable remedies, and
Employee's entitlement to Severance Benefits shall immediately cease and be
forfeited. Employee and Company mutually agree not to make any comments or
statements to the press, employees of the Company, any individual or entity with
whom the Company or Employee has a business relationship or any other person if
such comment or statement could be likely to adversely affect the conduct of the
business of the Company or Employee, or any of its plans or prospects or the
business reputation of the Company or Employee.

10. Assignment of Claims. In consideration of the payments and benefits to
Employee in paragraph 2 herein, and Employee's execution of this Agreement, and
as an express condition of this Agreement, Employee hereby represents and
warrants that, up through the date on which this Agreement is executed by the
parties, he has not assigned or transferred, and he will not after such date
assign or transfer, (a) any claims against the Company, (b) any rights that he
may have had to assert compulsory or permissive counterclaims against the
Company, or (c) any rights that he has or may have to aforesaid payments and
benefits.

11. Transition and Cooperation. The Employee agrees to use reasonable efforts to
cooperate with the Company, for whatever period of time the Company deems
reasonably necessary, to ensure a smooth transition of his duties, provided that
such cooperation does not unduly interfere or conflict with his duties as an
employee of any entity other than the Company and does not require Employee to
incur any out of pocket cost or expense. Additionally, Employee agrees to
cooperate fully with the Company in any matters that have or may result in a
legal claim against the Company, and of which Employee may have knowledge as a
result of Employee's employment with the Company. This requires Employee,
without limitation, to (1) make himself available upon reasonable request to
provide information and assistance to the Company on such matters without
additional compensation, except for out-of-pocket costs, and (2) notify the
Company promptly of any requests to Employee for information related to any
pending or potential legal claim or litigation involving the Company, reviewing
any such request with a designated representative of the Company prior to
disclosing any such information, and permitting the representative of the
Company to be present during any communication of such information.

12. Adequate Consideration. Employee expressly acknowledges that he has received
adequate consideration in exchange for the release given in this Agreement and
the other obligations contained herein, and covenants that he will not in any
way seek to challenge this Agreement on the grounds of lack of consideration.

13. Stock Options. For purposes of this Section 13, the non-qualified stock
option agreements between Employee and the Company (the "Stock Option
Agreements") and the Company's Long Term Incentive Plan, (as amended), (the
"Plan") only, Employee's separation from the Company shall be deemed to be a
Voluntary Resignation with Good Reason under the Stock Option Agreements.
Employee expressly acknowledges that he has vested and exercisable stock options
for 350,000 shares of stock of the Company with a strike price of $6.72 per
share (the "June Grant") and vested and exercisable stock options for 23,572
shares of stock of the Company with a strike price of $4.54 cents per share (the
"October Grant") pursuant to the Stock Option Agreements and the Plan. To the
extent not already vested, these options shall vest immediately upon the
Effective Date. The June Grant shall expire, if not previously exercised, upon
the last day of the thirtieth (30th) month following the Effective Date, and the
October Grant shall expire, if not previously exercised, on the last day of the
twenty-fourth (24th) month following the Effective Date. The provisions of this
Section 13 shall be applicable notwithstanding any provisions


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of the Stock Option Agreements or the Plan which may be contrary to, or
inconsistent with, the provisions of this Section 13. The provisions of this
Section 13 supersede any such contrary or inconsistent provisions in the Stock
Option Agreements or the Plan. All other provisions of the Stock Option
Agreements shall remain unchanged and the Stock Option Agreements, as amended
hereby, will remain in full force and effect. Other than those set forth in the
Stock Option Agreements and this Section 13, Employee has no rights or
entitlements whatsoever to any stock options or stock option grants from the
Company. The Company represents and warrants that this Agreement including, but
not limited to, the provisions of this Section 13, and the Stock Option
Agreements have been duly authorized by all necessary corporate action on the
part of the Company including, but not limited to, all necessary action on the
part of the Committee (as defined in the Plan), and this Agreement, including
the provisions of this Section 13, and the Stock Option Agreements constitute
the legal, valid and binding obligations of the Company enforceable against the
Company in according with their respective terms. The Company further represents
and warrants that this Agreement, including the provisions of this Section 13,
does not conflict with, or result in a violation of, any term or condition of
the Plan.

14. Successors. This Agreement shall be binding upon and shall inure to the
benefit of all parties hereto, and their respective heirs, assigns,
administrators, executors and legal representatives, related and affiliated
entities, and successors and assigns, as the case may be.

15. Severability. If any provision of this Agreement is determined by any court
of competent jurisdiction to be unenforceable in whole or in part, and such
determination shall become final, such provision shall be severed or limited,
but only to the extent required to render the remaining provisions and portions
of this Agreement enforceable. This Agreement, as amended, will be enforced so
as to give effect to the intention of the parties insofar as that is possible;
provided that if Sections 7 or 8 are found to be unenforceable then (a) this
entire Agreement will be null and void at Holding's option and (b) Employee
agrees to return all Severance Benefits to the Company. In addition, the parties
hereby expressly empower a court of competent jurisdiction to modify any term or
provision of this Agreement as modified.

16. Governing Law. This Agreement shall be construed in accordance with the laws
of the State of Nebraska, without regard to the conflict of law provisions of
any state or jurisdiction.


17. Acknowledgement. Employee acknowledges that he has carefully read and fully
understands the terms and provisions of this Agreement; that he is legally
competent, and capable of signing this agreement; that he has been advised of
his right to consult with an attorney prior to signing this Agreement; and that
sufficient opportunity had been made available to him to consult with an
attorney to consider the terms of this Agreement and that he has availed himself
of that right. Employee acknowledges that he was given forty-five (45) days from
the date of presentment of this Agreement to decide whether or not to enter into
this Agreement and to waive his right to sue under the Age Discrimination in
Employment Act. Employee further acknowledges that he has not relied upon any
oral representation or statement by the Company or its representation or
statement by the Company or its representatives, which is not set forth in this
Agreement. Employee shall have the right to revoke this Agreement at any time up
to seven (7) days following his execution of the Agreement. This Agreement shall
not be enforceable or effective until after the seven-day revocation period has
expired.

 18. Entire Agreement. This Agreement, the Stock Option Agreements (as amended
hereby) and the surviving provisions of the AHC Agreement (4,5,8,9,12,13,15(g))
constitute the entire understanding of the parties, supersedes all prior oral or
written agreements, and cannot be modified in nor any of its conditions waived,
except by a writing signed by both parties. No agreements or representations,
oral or otherwise, expressed or implied, with respect to the subject matter
hereof have been made by any party which are not set forth expressly in this
Agreement and any of the agreements and provisions referred to above. This
Agreement may be signed in multiple counterparts, each of which shall be deemed
to be an original for all purposes.



IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set
forth below.


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                                            AMERITRADE HOLDING CORPORATION


                                            By:    /s/ Kurt D. Halvorson
                                                   ----------------------------
                                            Name:  Kurt D. Halvorson
Date:  April 7, 2003                        Title: Executive Vice President,
      --------------                               Chief Administrative Officer



                                            /s/ Vincent Passione
Date:  April 1, 2003                        -----------------------------------
      --------------                        Vincent Passione


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