EMPLOYMENT AGREEMENT BETWEEN ASAHI TEC CORPORATION AND JEFFREY STAFEIL
Exhibit
10.2
EMPLOYMENT
AGREEMENT BETWEEN ASAHI TEC CORPORATION AND XXXXXXX
XXXXXXX
This
Agreement is made by and between Asahi Tec Corporation, a Japanese corporation
(“Company”),
and
Xxxxxxx X. Xxxxxxx (“Executive”),
effective as of the Effective Time (as defined in the Agreement and Plan
of
Merger, dated as of August 31, 2006, among Company, Argon Acquisition Corp.
and
Metaldyne Corporation (“Metaldyne”)
(the
“Merger
Agreement”))
(hereinafter, the “Effective
Date”).
This
Agreement replaces and supercedes the Employment Agreement between Metaldyne
and
Executive with an Effective Date of July 16, 2003, as amended effective as
of
September 10, 2004 and September 27, 2005 (as so amended, the “Original
Employment Agreement”).
In
order to induce Executive to be employed as described herein, Company enters
into this Agreement with Executive to set out the terms and conditions that
will
apply to Executive’s employment. Executive is willing to accept such employment
and assignment and to perform services on the terms and conditions hereinafter
set forth. It is therefore hereby agreed by and between the parties as
follows:
SECTION
1. Employment. (a)
Company
agrees to (i) employ Executive, and shall appoint Executive, as its Co-Chief
Financial Officer and Chief Integration Officer (for clarification, such
position shall be shikko-yaku
(executive officer) under the Japanese Corporation Act), (ii) cause Metaldyne
to
continue to employ Executive as Chief Financial Officer of Metaldyne and
(iii)
appoint Executive as a director of Company, subject to shareholder approval.
In
his capacity as Co-Chief Financial Officer and Chief Integration Officer
of
Company, Executive shall have duties commensurate with his positions as directed
from time to time by the Co-Chairmen of the Company (the “Chairmen”)
and
shall report to the Chairmen. In his capacity as Chief Financial Officer
of
Metaldyne, Executive shall have duties commensurate with his position as
directed from time to time by the Chief Executive Officer of Metaldyne (the
“Metaldyne CEO”) and shall report to the Metaldyne CEO. Executive accepts
employment in accordance with this Agreement and agrees to devote his full
business time and efforts to the performance of his duties and responsibilities
hereunder, subject at all times to review and control of the Chairmen and
the
Metaldyne CEO, as applicable. During the Term of Employment (as defined below),
Executive also agrees to serve, if elected, as an officer or director, or
both,
of Company or any subsidiary, limited liability company or other business
entity
of which Company or Metaldyne holds at least a fifty percent (50%) ownership
interest, without the payment of any additional compensation therefor,
provided
that if
Executive serves as an officer or director of Company or any such subsidiary,
limited liability company or other business entity, Executive shall be entitled
to the same director and officer liability protections as the other officers
or
directors, as applicable, of Company or such subsidiary, limited liability
company or other business entity.
(b)
Nothing
in this Agreement shall preclude Executive from engaging in charitable and
community affairs, from managing any passive investment (i.e., an investment
with respect to which Executive is in no way involved with the management
or
operation of the entity in which Executive has invested) made by him in publicly
traded equity securities or other property (provided that no such investment
may
exceed five percent (5%) of the equity of any entity, without the prior approval
of the Board of Directors of Company (the “Board”))
or
from serving, subject to the prior approval of the
Board,
as
a member of boards of directors or as a trustee of any other corporation,
association or entity, to the extent that any of the above activities do
not
conflict with any provision of this Agreement.
(c)
During
the Term of Employment, Executive’s principal place of employment shall be at
such location or locations as determined from time to time by agreement of
the
Chairmen and Executive, consistent with the needs of Company and Metaldyne
and
as required in connection with the performance of Executive’s duties and
responsibilities hereunder; provided
that
Executive may be required to spend up to 50% of his business time in Japan
as
required in connection with the performance of his duties and responsibilities;
provided,
however,
that
Executive shall not be required to establish a permanent residence in Japan
unless otherwise mutually agreed by Company and Executive. Executive
acknowledges that his duties and responsibilities hereunder shall require
him to
travel on business, including to Japan, to the extent necessary to perform
such
duties and responsibilities.
(d)
Effective
as of the Effective Time, this Agreement shall become effective and the parties
hereto shall be bound hereby and the Original Employment Agreement shall
terminate and have no further force or effect. Without limiting the generality
of the foregoing, Executive shall not be entitled to, and Company and Metaldyne
shall have no obligation to provide, any payments, benefits, gross-ups or
other
entitlements pursuant to Sections 6(d) or 8 of the Original Employment
Agreement.
(e)
For
the
avoidance of doubt, Executive acknowledges and agrees that, during the Term
of
Employment, he is not an “employee” of the Company for purposes of the Labor
Standard Law of Japan and as such he does not have the rights of an “employee”
for purposes of the Labor Standard Law of Japan.
2
SECTION
2. Term
of Employment.
The term
of Executive’s employment under this Agreement (“Term
of Employment”)
shall
commence on the Effective Date and, subject to the terms hereof, shall terminate
on the earlier of the fifth anniversary of the Effective Date (“Initial
Period”)
and
the date that either party terminates Executive’s employment under this
Agreement; provided
that the
Term of Employment shall automatically renew on the fifth anniversary of
the
Effective Date and on each subsequent anniversary thereof for one year
(“Renewal
Period”),
unless either party terminates Executive’s employment or Company delivers to
Executive or Executive delivers to Company written notice at least 180 days
in
advance of the expiration of the Initial Period or any Renewal Period that
the
Term of Employment shall not be extended, in which case the Term of Employment
shall end at the end of the Initial Period or the Renewal Period in which
such
notice was delivered and shall not be further extended except by written
agreement of Company and Executive. The expiration of the Term of Employment
under this Agreement shall not be a termination of this Agreement to the
extent
that other provisions of this Agreement by their terms survive the Term of
Employment. At the expiration of the Term of Employment, Executive shall
resign
from all employment and director positions with Company, Metaldyne and their
subsidiaries and affiliates, unless otherwise requested by Company.
SECTION
3. Compensation.
(a)
Salary.
As of
the Effective Date, Company or Metaldyne shall pay Executive, for all services
rendered hereunder, at the rate of Four Hundred Seventy-Five Thousand Dollars
($475,000) per annum (“Base
Salary”).
Base
Salary shall be payable in accordance with the ordinary payroll practices
of
Company and shall be subject to all applicable federal, state and local
withholding and reporting requirements.
(b)
Metaldyne
Annual Value Creation Plan (“AVCP”).
During
the Term of Employment, Executive shall continue to be eligible to participate
in the AVCP, a copy of which has been provided to Executive, subject to all
the
terms and conditions of such plan, as such plan may be modified from time
to
time. For purposes of the 2006 AVCP, Executive’s award shall be subject to the
terms of any communication previously provided by Metaldyne to Executive
regarding Executive’s participation in the AVCP. For purposes of the AVCP for
Company’s subsequent fiscal years, Executive’s target bonus opportunity shall be
60% of Base Salary, which shall be payable based on achievement of a
consolidated business plan that reflects both Company’s and Metaldyne’s
performance, subject to such other terms and conditions as the Board may
establish from time to time.
(c)
Special
Bonus.
On the
Effective Date, Company shall pay Executive a one-time bonus consisting of
(i)
$600,000 in cash and (ii) a number of fully vested shares of common stock
of
Company with an aggregate value of $500,000, based on the Purchase Price
(as
defined in the Parent Stock Purchase Agreement (as defined in the Merger
Agreement)). Executive shall be responsible for the payment of all taxes
required to be deducted or withheld or otherwise paid with respect to such
bonus.
3
SECTION
4. Employee
Benefits.
(a)
Employee
Retirement Benefit Programs, Welfare Benefit Programs, Plans and
Practices.
Company
and Metaldyne shall provide Executive with retirement and welfare benefits
that
are commensurate with current levels.
(b)
Vacation.
During
the Term of Employment, Executive shall be entitled to twenty (20) business
days
of paid vacation each calendar year, which shall be taken at such times as
are
consistent with Executive’s responsibilities hereunder. Vacation days shall be
subject to Company’s and Metaldyne’s general policies regarding vacation days,
as such policies may be modified from time to time.
(c)
Executive
Vehicle Program.
During
Metaldyne’s 2006 fiscal year and, subject to review and approval by the
Compensation Committee of the Board (the “Compensation
Committee”),
during the remainder of the Term of Employment, Executive shall be entitled
to
participate in Metaldyne’s Executive Vehicle Program, as such program exists on
the date of this Agreement. Executive acknowledges that some portion of his
personal use of the automobile will represent additional personal income
to him
and will be reported to him as such.
(d)
Stock
Options.
All
stock options with respect to Metaldyne stock that Executive holds as of
the
Effective Date shall be treated in the manner provided in the Merger Agreement;
provided
that
Executive acknowledges and agrees that (i) each of his Metaldyne Options
will,
in accordance with the Merger Agreement and the terms of the 2001 Long Term
Equity Incentive Plan, be converted on the Effective Date into a right to
receive the excess, if any, of the Common Merger Consideration (as defined
in
the Merger Agreement) over the exercise price per share of Metaldyne common
stock subject to such Metaldyne Option, and (ii) both before and after the
adjustment of the exercise price of each of his Metaldyne Options to reflect
the
decrease in the fair market value of Metaldyne common stock as a result of
the
distribution of all the TriMas shares held by Metaldyne to its shareholders,
as
provided for in the Merger Agreement, the excess referred to in clause 4(d)(i)
will be $0. Accordingly, Executive agrees that, contingent on the Closing
(as
defined in the Merger Agreement) and effective on the Effective Date, each
of
his Metaldyne Options will be cancelled and Executive will not, at any time,
be
entitled to any payment in respect of, or arising out of, such cancellation
and
he will not otherwise have any right or claim relating in any way to, or
arising
out of, any of his Metaldyne Options. In addition, on the Effective Date,
Executive shall be granted stock options with respect to Company common stock
in
an amount and subject to the terms set forth in the Merger Agreement and
the
schedules thereto.
SECTION
5. Expenses.
Subject
to prevailing Company policy or such guidelines as may be established by
the
Board, Company will reimburse Executive for all reasonable expenses incurred
by
Executive in carrying out his duties.
SECTION
6. Termination
of Employment.
Executive’s employment during or after the Term of Employment shall be
terminable at will by either party at any time for any reason; provided
that
4
any
termination of employment, whether by Company or Executive, shall apply to
Executive’s employment with both Company and Metaldyne.
(a)
Termination
Without Cause or for Good Reason.
If Executive’s employment is terminated during the Term of Employment (i)
by Company for any reason other than Cause (as defined in Section 6(c) hereof),
Disability (as defined in Section 6(d) hereof) or death or (ii) by
Executive for Good Reason (as defined in Section 6(a)(ii) hereof), then,
in each
case, Company shall pay Executive the Severance Package. A termination by
Executive without Good Reason, or with Good Reason prior to the first
anniversary of the Effective Date, shall be deemed to be a termination under
Section 6(b) below and not a termination under this Section 6(a).
(i)
For
purposes of this Agreement, “Severance
Package”
shall
mean:
(A)
Base
Salary continuation for twelve (12) months (the “Severance
Period”)
at
Executive’s annual Base Salary rate in effect on the date of termination,
subject to all applicable federal, state and local withholding and reporting
requirements. These salary continuation payments shall be paid in accordance
with usual Company payroll practices;
(B)
A
bonus
equal to one hundred percent (100%) of the target bonus opportunity under
AVCP,
payable in equal installments over the Severance Period, subject to the same
withholding and reporting requirements described in Section 6(a)(i)(A). In
addition, Executive shall receive the bonus for the most recently completed
bonus term if a bonus has been earned and declared for such term but not
paid,
which bonus shall be paid in accordance with customary practices for payment
of
bonuses under AVCP; and
(C)
Continuation
of benefits under any life, group health, and dental insurance benefits
substantially similar to those which Executive was receiving immediately
prior
to termination of employment until the earlier of:
(1)
the
end
of the Severance Period and
(2)
the
date
on which Executive becomes eligible to receive any benefits under any plan
or
program of any other employer.
The
continuing coverage provided under this Section 6(a)(i)(C) is subject to
Executive’s eligibility to participate in such plans and all other terms and
conditions of such plans, including Company’s and Metaldyne’s ability to modify
or terminate such plans or coverages. Company may satisfy this obligation
in
whole or in part by paying the premium otherwise payable by Executive for
continuing coverage under Section 601 et seq. of the Employee Retirement
Income
Security Act of 1974, as it may be
5
amended
or replaced from time to time, or under any similar provision of non-United
States law. If Executive is not eligible for continued coverage under one
of the
benefit plans noted in this paragraph (C) that he was participating in during
his employment, Company shall pay Executive the cash equivalent of the insurance
cost for the duration of the applicable period at the rate of Company’s or
Metaldyne’s cost of coverage for Executive’s benefits as of the date of
termination. Any obligation to pay the cash equivalent of such cost under
this
item may be settled, at Company’s discretion, by a lump-sum payment of any
remaining premiums.
(ii)
For
purposes of this Agreement, a termination of employment by Executive for
“Good
Reason”
shall
be a termination by Executive following the occurrence of any of the following
events unless Company has cured as provided below:
(A)
Removal
from the position of Co-Chief Financial Officer or Chief Integration Officer
of
Company or Chief Financial Officer of Metaldyne (other than as a result of
a
promotion or change in position which is not material);
(B)
Any
material and permanent diminution in Executive's duties or responsibilities
hereunder as set forth in Section 1(a);
(C)
A
material reduction in the aggregate value of Base Salary or bonus opportunity
or
a material and permanent reduction in the aggregate value of other benefits
provided to Executive by Company and Metaldyne; or
(D)
A
permanent reassignment of Executive, without his advance written consent,
to
another primary office, or a relocation of the office that is Executive’s
primary office as of the Effective Date, unless Executive’s primary office
following such reassignment or relocation is within a thirty-five (35) mile
radius of Executive’s primary office before the reassignment or relocation or
Executive’s permanent residence on the date of the reassignment or relocation;
provided
that no
such reassignment or relocation shall be deemed to have occurred as a result
of
Executive’s travel to and from, or provision of services in, Japan in accordance
with Section 1(c).
Executive
must notify Company of any event constituting Good Reason within one hundred
twenty (120) days after Executive becomes aware of such event or such event
shall not constitute Good Reason for purposes of this Agreement, provided
that
Company shall have fifteen (15) days from the date of such notice to cure
the
Good Reason event. Executive cannot terminate his employment for Good Reason
if
Cause exists at the time of such termination. A termination by Executive
following cure shall not be a termination for Good Reason. A failure
6
of
Executive to notify Company after the first occurrence of an event constituting
Good Reason shall not preclude any subsequent occurrences of such event (or
similar event) from constituting Good Reason.
(b)
Voluntary
Termination by Executive; Nonrenewal of Agreement.
If
Executive terminates his employment with Company without Good Reason during
or
after the Term of Employment, or if the Term of Employment expires following
notice of nonrenewal by either party under Section 2, then Company shall
pay Executive his accrued unpaid Base Salary through the date of termination
and
the AVCP award for the most recently completed year if an award has been
earned
and declared for such year but not paid. The accrued unpaid Base Salary amounts
payable under this Section 6(b) shall be payable in a lump sum within ten
(10)
days of termination of employment. Any accrued unpaid bonus amounts payable
under this Section 6(b) shall be payable in accordance with customary practices
for payment of bonuses under AVCP. No prorated bonus for the year of termination
shall be paid. Any other benefits under other plans and programs of Company
or
Metaldyne in which Executive is participating at the time of Executive’s
termination of employment shall be paid, distributed or settled, or shall
expire, in each case in accordance with their terms, and Company and Metaldyne
shall have no further obligations hereunder with respect to Executive following
the date of termination of employment.
(c)
Termination
for Cause.
If
Executive’s employment is terminated for Cause, Company shall pay Executive his
accrued but unpaid Base Salary through the date of the termination of
employment, and no further payments or benefits shall be owed. The accrued
unpaid Base Salary amounts payable under this Section 6(c) shall be payable
in a
lump sum within ten (10) days of termination of employment. As used herein,
the
term “Cause”
shall
be limited to:
(i)
Executive’s
conviction of or plea of guilty or nolo contendere to a crime constituting
a
felony under the laws of the United States or any state thereof, a crime
under
Japanese law with respect to which imprisonment is the minimum prescribed
penalty or any similar crime in any other jurisdiction in which Company or
Metaldyne conducts business;
(ii)
Executive’s
willful misconduct in the performance of his duties hereunder;
(iii)
Executive’s
willful and continued failure to follow the reasonable and lawful instructions
of the Chairmen, the Metaldyne CEO or the Board; or
(iv)
Executive’s
willful and/or continued neglect of duties (other than any such neglect
resulting from incapacity of Executive due to physical or mental
illness);
provided,
however,
that
Cause shall arise under items (iii) or (iv) only following ten (10) days’
written notice thereof from Company which specifically identifies such failure
or neglect and the continuance of such failure or neglect during such notice
period. Any
7
failure
by Company to notify Executive after the first occurrence of an event
constituting Cause shall not preclude any subsequent occurrences of such
event
(or a similar event) from constituting Cause.
(d)
Disability.
In the
event that Executive is unable to perform his duties during the Term of
Employment on account of a disability which continues for one hundred eighty
(180) consecutive days or more, or for an aggregate of one hundred eighty
(180)
days in any period of twelve (12) months, Company may, in its discretion,
terminate Executive’s employment hereunder. Company’s obligation to make
payments under this Agreement shall, except for earned but unpaid Base Salary
and earned and declared but unpaid AVCP awards and the payment described
in the
next sentence, cease on the first to occur of (i) the date that is six (6)
months after such termination or (ii) the date Executive becomes entitled
to
benefits under a long-term disability program of Company or Metaldyne. For
purposes of this Agreement, “Disability”
shall
be defined by the terms of Metaldyne’s long-term disability policy, or, in the
absence of such policy, as a physical or mental disability that prevents
Executive from performing substantially all of his duties under this Agreement
and which is expected to be permanent. Company may only terminate Executive
on
account of Disability after giving due consideration to whether reasonable
accommodations can be made under which Executive is able to fulfill his duties
under this Agreement. The commencement date and expected duration of any
physical or mental condition that prevents Executive from performing his
duties
hereunder shall be determined by a medical doctor selected by Company. Company
may, in its discretion, require written confirmation from a physician of
Disability during any extended absence.
(e)
Death.
In the
event of Executive’s death during the Term of Employment, all obligations of
Company to make any further payments, other than an obligation to pay any
accrued but unpaid Base Salary to the date of death and any earned and declared
but unpaid bonuses under AVCP to the date of death and the payment described
in
the next sentence, shall terminate upon Executive’s death.
(f)
No
Duplication of Benefits.
Notwithstanding any provision of this Agreement to the contrary, if Executive’s
employment is terminated for any reason, in no event shall Executive be eligible
for payments under more than one subsection of this Section 6.
(g)
Payments
Not Compensation.
Any
participation by Executive in, and any terminating distributions and vested
rights under, retirement or savings plans, regardless of whether such plans
are
qualified or nonqualified for tax purposes, shall be governed by the terms
of
those respective plans. For purposes of determining benefits and the amounts
to
be paid to Executive under such plans, any salary continuation or severance
benefits other than salary or bonus accrued before termination shall not
be
compensation for purposes of accruing additional benefits under such
plans.
(h)
Executive’s
Duty to Provide Materials.
Upon the
termination of Executive’s employment for any reason, Executive or his estate
shall surrender to Company all correspondence, letters, files, contracts,
mailing lists, customer lists,
8
advertising
material, ledgers, supplies, equipment, checks and all other materials and
records of any kind that are the property of Company or any of its subsidiaries
or affiliates, that may be in Executive’s possession or under his control,
including all copies of any of the foregoing.
9
SECTION
7. Notices.
All
notices or communications hereunder shall be in writing, addressed as
follows:
|
To
Company:
|
Asahi
Tec Corporations
000-0
Xxxxxxxxxx, Xxxxxxxx Xxxx,
Xxxxxxxx
000-0000, Xxxxx
Fax:
00-000-00-0000
Attention:
Xxxxxx Xxxxxx
|
||
|
with
a copy to:
|
Xxxxxxxx
Mori & Tomotsune
Izumi
Xxxxxx Xxxxx
0-0-0,
Xxxxxxxx, Xxxxxx-xx,
Xxxxx
000-0000, Xxxxx
Fax:
(00) 0000-0000
Attention:
Xxxxxxxx Xxxxxx, Esq.
|
||
|
To
Executive:
|
Xxxxxxx
X. Xxxxxxx
|
||
Any
such
notice or communication shall be delivered by hand or by courier or sent
certified or registered mail, return receipt requested, postage prepaid,
addressed as above (or to such other address as such party may designate
in a
notice duly delivered as described above), and the third (3rd) business day
after the actual date of mailing shall constitute the time at which notice
was
given.
SECTION
8. Separability;
Legal Fees.
If any
provision of this Agreement shall be declared to be invalid or unenforceable,
in
whole or in part, such invalidity or unenforceability shall not affect the
remaining provisions hereof which shall remain in full force and effect.
In the
event of a dispute by Company, Executive or others as to the validity or
enforceability of, or liability under, any provision of this Agreement, Company
shall reimburse Executive for all reasonable legal fees and expenses incurred
by
him in connection with such dispute if Executive substantially prevails in
the
dispute, but in all other cases Executive shall be responsible for such fees
and
expenses.
SECTION
9. Assignment
and Assumption.
This
contract shall be binding upon and inure to the benefit of the heirs and
representatives of Executive and the assigns and successors of Company, but
neither this Agreement nor any rights or obligations hereunder shall be
assignable or otherwise subject to hypothecation by Executive (except by
will or
by operation of the laws of intestate succession) or by Company, except that
Company may assign this Agreement to any successor (whether by merger, purchase
or otherwise) to all or substantially all of the stock, assets or business
of
Company.
SECTION
10. Amendment.
This
Agreement may only be amended by written agreement of the parties
hereto.
SECTION
11. Non-Competition;
Non-Solicitation; Confidentiality. (a)
Executive
represents that acceptance of employment under this Agreement
10
and
performance under this Agreement are not in violation of any restrictions
or
covenants under the terms of any other agreements to which Executive is a
party.
(b)
Executive
acknowledges and recognizes the highly competitive nature of the business
of
Company and accordingly agrees that, in consideration of this Agreement,
the
rights conferred hereunder, and any payment hereunder, Executive shall not
engage, either directly or indirectly, as a principal for Executive’s own
account or jointly with others, or as a stockholder in any corporation or
joint
stock association, or as a partner or member of a general or limited liability
entity, or as an employee, officer, director, agent, consultant or in any
other
advisory capacity, while employed by Company and for the six-month period
following the termination of Executive’s employment for any reason
(“Non-Compete
Term”),
in
any business (other than Company, Metaldyne or their respective subsidiaries)
which designs, develops, manufactures, distributes, sells or markets the
type of
products or services sold, distributed or provided by Company, Metaldyne
or any
of their respective subsidiaries during the two (2) year period prior to
the
date of termination of Executive’s employment (the “Business”).
Nothing
herein shall prevent Executive from owning, directly or indirectly, not more
than five percent (5%) of the outstanding shares of, or any other equity
interest in, any entity engaged in the Business and listed or traded on a
national securities exchange or in an over-the-counter securities
market.
(c)
During
the Non-Compete Term, Executive shall not (i) directly or indirectly employ,
solicit or receive or accept the performance of services by, any active employee
of Company, Metaldyne or any of their respective subsidiaries who is employed
primarily in connection with the Business, except in connection with general,
non-targeted recruitment efforts such as advertisements and job listings,
or
directly or indirectly induce any employee of Company, Metaldyne or any of
their
respective subsidiaries to leave Company, Metaldyne or any of their respective
subsidiaries, or assist in any of the foregoing, or (ii) solicit for any
business that is engaged in the Business any person who is a customer or
former
customer of Company, Metaldyne or any of their respective subsidiaries, unless
such person shall have ceased to have been such a customer for a period of
at
least six (6) months.
(d)
Executive
shall not at any time (whether during or after his employment with Company)
disclose or use for Executive’s own benefit or purposes or the benefit or
purposes of any other person, firm, partnership, joint venture, association,
corporation or other business organization, entity or enterprise other than
Company, Metaldyne or any of their respective subsidiaries, any trade secrets,
information, data or other confidential information of Company, Metaldyne
or any
of their respective Subsidiaries, including but not limited to information
relating to customers, development programs, costs, marketing, trading,
investment, sales activities, promotion, credit and financial data, financing
methods, plans or the business and affairs of Company, Metaldyne or any of
their
respective subsidiaries generally, unless required to do so by applicable
law or
court order, subpoena or decree or otherwise required by law, with reasonable
evidence of such determination promptly provided to Company. The
11
preceding
sentence of this paragraph (d) shall not apply to information which is not
unique to Company, Metaldyne or any of their respective subsidiaries or which
is
generally known to the industry or the public other than as a result of
Executive’s breach of this covenant. Executive agrees that upon termination of
employment with Company for any reason, Executive will return to Company
immediately all memoranda, books, papers, plans, information, letters and
other
data, and all copies thereof or therefrom, in any way relating to the business
of Company, Metaldyne or any of their respective subsidiaries, except that
Executive may retain personal notes, notebooks and diaries. Executive further
agrees that Executive will not retain or use for Executive’s account at any time
any trade names, trademark or other proprietary business designation used
or
owned in connection with the business of Company, Metaldyne or any of their
respective subsidiaries.
(e)
It
is
expressly understood and agreed that although Executive and Company consider
the
restrictions contained in this Section 11 to be reasonable, if a final judicial
determination is made by a court of competent jurisdiction that the time
or
territory or any other restriction contained in this Agreement is an
unenforceable restriction against Executive, the provisions of this Agreement
shall not be rendered void but shall be deemed amended to apply as to such
maximum time and territory and to such maximum extent as such court may
judicially determine or indicate to be enforceable. Alternatively, if any
tribunal of competent jurisdiction finds that any restriction contained in
this
Agreement is unenforceable, and such restriction cannot be amended so as
to make
it enforceable, such finding shall not affect the enforceability of any of
the
other restrictions contained herein.
(f)
As
a
condition to the receipt of any benefits described in this Agreement, Executive
shall be required to execute an agreement pursuant to which Executive releases
any claims he may have against Company, Metaldyne or any of their respective
subsidiaries and agrees to the continuing enforceability of the restrictive
covenants of this Agreement.
(g)
This
Section 11 will survive the termination of the Term of Employment and the
termination of this Agreement.
12
SECTION
12. Remedies.
Executive acknowledges and agrees that Company’s remedies at law for a breach or
threatened breach of any of the provisions of Section 11 would be inadequate
and, in recognition of this fact, Executive agrees that, in the event of
such a
breach or threatened breach, in addition to any remedies at law, Executive
shall
forfeit all payments otherwise due under this Agreement and shall return
any
Severance Package payment made. Moreover, Company, without posting any bond,
shall be entitled to seek equitable relief in the form of specific performance,
temporary restraining order, temporary or permanent injunction or any other
equitable remedy which may then be available.
SECTION
13. Survivorship.
The
respective rights and obligations of the parties hereunder shall survive
any
termination of this Agreement to the extent necessary to the intended
preservation of such rights and obligations. The provisions of this Section
13
are in addition to the survivorship provisions of any other section of this
Agreement.
SECTION
14. Governing
Law; Revenue and Jurisdiction.
If any
judicial or administrative proceeding or claim relating to or pertaining
to this
Agreement is initiated by either party hereto, such proceeding or claim shall
and must be filed in a state or federal court located in Xxxxx County, Michigan
and such proceeding or claim shall be governed by and construed under Michigan
law, without regard to conflict of law and principals.
SECTION
15. Dispute
Resolution.
Except
with respect to enforcement actions brought under Section 12, any dispute
related to or arising under this Agreement shall be resolved in accordance
with
the Metaldyne Dispute Resolution Policy in effect at the time such dispute
arises. The Metaldyne Dispute Resolution Policy in effect at the time of
this
Agreement is attached to this Agreement.
SECTION
16. Effect
on Prior Agreements.
This
Agreement contains the entire understanding between the parties hereto and
supersedes in all respects any prior or other agreement or understanding,
both
written and oral, between Company, Metaldyne, any affiliate of Company or
Metaldyne, any predecessor of Company or Metaldyne or any affiliate of any
such
predecessor and Executive, including the Original Employment Agreement;
provided
that
this Agreement shall have no force or effect, and the Original Employment
Agreement shall remain in effect, unless and until the Effective Time occurs.
SECTION
17. Withholding.
Company
shall be entitled to withhold from payment any amount of withholding required
by
law.
SECTION
18. Section
Headings and Construction.
The
headings of sections in this Agreement are provided for convenience only
and
will not affect its construction or interpretation. All references to “Section”
or “Sections” refer to the corresponding section or sections of this Agreement
unless otherwise specified. All words used in this Agreement will be construed
to be of such gender or number as circumstances require.
SECTION
19. Counterparts.
This
Agreement may be executed in one (1) or more counterparts, each of which
will be
deemed to be an original copy of this Agreement and all of which, when taken
together, will be deemed to constitute one and the same Agreement.
13
Intending
to be legally bound hereby, the parties have executed this Agreement on the
dates set forth next to their names below.
|
August
31, 2006
|
ASAHI
TEC CORPORATION,
|
|
by /s/ Xxxxx Xxxxxxxx
Name: Xxxxx Xxxxxxxx
Title: President and Chief Executive
Officer
|
|
|
August
31, 2006
|
XXXXXXX
XXXXXXX,
|
|
by /s/ Xxxxxxx Xxxxxxx
|
|
