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Exhibit 10.3    
    

 
 

EMPLOYMENT AGREEMENT    
    

        This EMPLOYMENT AGREEMENT, dated as of August    , 2001 (this "Agreement"), is made and entered into by
and between UTI Corporation, a Maryland corporation (the "Company") and Stewart Fisher ("Employee"). 

        WHEREAS, the Company desires to retain the services of Employee, and Employee desires to be employed by the Company, on the terms and
subject to the conditions set forth in this Agreement. 

        NOW, THEREFORE, in consideration of the premises, the mutual agreements set forth herein and other good and valuable consideration, the
receipt and adequacy of which is hereby acknowledged, the parties hereto hereby agree as follows: 

        1.    Employment.    The Company hereby employs Employee, and Employee accepts such employment and agrees to perform
services for the Company, for the period and upon the other terms and conditions set forth in this Agreement. 

        2.    Position and Duties.    

        (a)    Service with the Company.    During the Term, Employee agrees to serve as Chief Financial Officer of the
Company with (i) oversight of the financial and accounting functions for the Company and all operating subsidiaries thereof and (ii) oversight of such other functions as agreed to by the
Chief Executive Officer and Employee, and to perform such reasonable employment duties as the Chief Executive Officer or the Board of Directors of the Company shall assign to him from time to time.
Employee's services pursuant to this Agreement shall be performed primarily at the offices of the Company in Collegeville, Pennsylvania or at such other facilities of the Company as the Company and
Employee may agree upon from time to time. 

        (b)    Performance of Duties.    Employee agrees to serve the Company faithfully and to perform Employee's duties and
responsibilities to the best of Employee's abilities in a reasonably diligent, trustworthy, businesslike and efficient manner. Employee further agrees to devote his full time, attention and efforts to
the business and affairs of the Company during the Term. Employee hereby confirms that he is under no contractual commitment inconsistent with his obligations set forth in this Agreement, and that,
during the Term, he will not render or perform services for any other corporation, firm, entity or person that are inconsistent with the provisions of this Agreement. Employee hereby further confirms
that he has terminated any existing employment agreement, if any, that he may have had with any other corporation, firm, entity or person, prior to the date hereof. 

        3.    Compensation.    

        (a)    Base Salary.    During the initial twelve (12) months of the Term, Employee's base salary shall be paid
at a rate of $300,000 per annum, which base salary shall be paid in regular installments in accordance with the Company's general payroll practices, including those related to withholding for taxes,
insurance and similar items. The base salary payable to Employee during each twelve-month period subsequent to the first twelve months of the Term shall be a minimum of $300,000 per annum and adjusted
annually thereafter based on the consumer price index and any other adjustments as may be determined by Company's Chief Executive Officer and the Compensation Committee of the Company's Board of
Directors. 

        (b)    Incentive Compensation.    In addition to the base salary, Employee shall be eligible to receive annual bonuses
as follows: 

        (i)    Annual Bonus.    In any given year, Employee shall be eligible to receive an annual cash bonus equal to up to
seventy five percent of Employee's then applicable base salary. Such bonus shall be determined in the sole discretion of the Compensation Committee of the Company's Board of Directors based on the
achievement of certain performance objectives set by the Compensation Committee of the Company's Board of Directors on an annual basis that will 

 

include
earnings per share, operating cash flow, return on capital and appreciation of the Company's stock on the Nasdaq National Market or other national market or exchange, if the Company becomes
listed thereon. 

        (ii)    Additional Discretionary Bonus.    In any given year, Employee shall be entitled to receive additional bonuses
at the sole discretion of the Company's Board of Directors or the Compensation Committee of the Company's Board of Directors. 

        (c)    Participation in Benefit Plans.    During the Term, Employee shall be eligible to participate in all of the
benefit plans or programs that have been established for the other employees of the Company at the same level as Employee, to the extent that Employee meets the requirements for each individual plan.
The Company provides no assurances as to the adoption or continuance of any particular benefit plan or program, and Employee's participation in any such plan or program shall be subject to the terms,
provisions, rules and regulations applicable thereto. 

        (d)    Starting Bonus.    Upon commencement of Employee's employment on the Start Date (as defined below), as partial
compensation for forfeited benefits from Employee's previous employment, the Company shall pay to Employee a cash bonus in an amount equal to $75,000, subject to withholding for taxes, insurance and
similar items (the "Cash Start Bonus"). In addition to the Cash Start Bonus, the Company shall pay to Employee over the twelve (12) month period
following the Start Date (on such schedule and in such increments to be determined in the Company's discretion) an additional cash bonus in an amount equal to $75,000, subject to withholding for
taxes, insurance and similar items. 

        (e)    Options.    Subject to the terms and conditions of the Company's 2000 Stock Option and Incentive Plan, as
amended from time to time (the "Option Plan"), the Company shall grant Employee an option to purchase 135,000 shares of the Company's common stock at an
exercise price of $9.78 per share, which option shall vest twenty percent per year over a period of five (5) years and will otherwise be subject to the terms of an option agreement to be
entered into between Employee and the Company. Such option is intended to be an incentive stock option, subject to the terms and conditions of the Option Plan, including but not limited to
Section 7.1 thereof, which provides that an option shall constitute an incentive stock option to the extent the aggregate Fair Market Value (as such term is defined in the Option Plan)
(determined at the time such option is granted) of the shares of stock with respect to which all incentive stock options held by a grantee become exercisable for the first time during any calendar
year does not exceed $100,000. 

        (f)    Relocation Expenses.    The Company shall reimburse Employee for all reasonable, necessary and
pre-approved out-of-pocket and documented direct costs of relocating household goods and for the sales commission to be paid by Employee upon the sale of his
current primary residence, subject to the presentment of appropriate vouchers in accordance with the Company's normal policies for expense verification. Such reimbursement will be "grossed up" to
include an additional amount calculated to compensate Employee for any tax consequences suffered as a result of such payment, including but not limited to the value of the sales commission paid by
Employee on the sale of his current residence. 

        (g)    Expenses.    During the Term, the Company shall reimburse Employee for all reasonable and necessary
out-of-pocket expenses incurred by Employee in the performance of his duties under this Agreement in accordance with the Company's customary and normal practices,
subject to the presentment of appropriate vouchers in accordance with the Company's normal policies for expense verification. 

        4.    Term.    

        (a)    Duration of Employment.    Employee's employment hereunder shall commence on October 1, 2001 (the
"Start Date") and shall be for a period of five (5) years from the Start Date (the "Term"); 

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provided,
however, that Employee's employment hereunder shall terminate prior to the expiration of the Term in the event that at any time during such Term: 

          (i)  Employee
dies; 

         (ii)  Employee
becomes Disabled (as hereinafter defined); 

        (iii)  The
Board of Directors of the Company elects to terminate this Agreement for Cause and notifies Employee in writing of such election; 

        (iv)  The
Board of Directors of the Company elects to terminate this Agreement without Cause and notifies Employee in writing of such election; 

         (v)  Employee
elects to terminate this Agreement for "Good Reason" and notifies the Company in writing of such election; or 

        (vi)  Employee
elects to terminate this Agreement without "Good Reason" and notifies the Company in writing of such election. 

        If
this Agreement is terminated pursuant to clause (i), (ii), (iii) or (v) of this Section 4(a), such
termination shall be effective immediately. If this Agreement is terminated pursuant to clause (iv) or (vi) of this Section 4(a),
such termination shall be effective thirty (30) days after delivery of the notice of termination. 

        (b)    "Cause" Defined.    "Cause" means: 

          (i)  Employee
has breached the provisions of this Agreement, any material written Company policy or any material contract between Employee and the Company, and Employee has
failed to cure such breach within thirty (30) days after receipt of written notice of breach from the Company; 

         (ii)  Employee
has failed to perform Employee's duties and responsibilities in accordance with the provisions of  Section 2 of this Agreement, as reasonably determined by the Company's Board of Directors, and
Employee has failed to cure such failure within
thirty (30) days after receipt of written notice of default from the Company; 

        (iii)  Employee
has engaged in willful misconduct, including, without limitation, willful failure to perform Employee's duties as an officer or employee of the Company, and
Employee has failed to cure such misconduct within thirty (30) days after receipt of written notice of default from the Company; 

        (iv)  Employee
has committed fraud, misappropriation or embezzlement in connection with the Company's business or has otherwise breached his fiduciary duty to the Company; 

         (v)  Employee
has been convicted or has pleaded nolo contendere to any act constituting a felony under the laws of any state
or of the United States of America, or any crime involving moral turpitude that, in the reasonable determination of the Company's Board of Directors, causes material harm to the Company; or 

        (vi)  Employee
abuses illegal drugs, alcohol or other controlled substances. 

        (c)    Effect of Termination    Notwithstanding any termination of this Agreement, Employee, in consideration of his
employment hereunder to the date of such termination, shall remain bound by the provisions of this Agreement, which specifically relate to periods, activities or obligations upon or subsequent to the
termination of Employee's employment. 

        (d)    "Disabled" Defined.    As used in this Agreement, the term
"Disabled" means any mental or physical condition that renders Employee unable to perform the essential functions of his position, with or without
reasonable accommodation, as is consistent with the Americans with Disabilities Act and the 

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Family
and Medical Leave Act; for a period in excess of ninety (90) consecutive days or more than one hundred twenty (120) days during any period of three hundred sixty-five
(365) calendar days. 

        (e)    Surrender of Records and Property.    Upon termination of Employee's employment with the Company, Employee
shall deliver promptly to the Company all records, manuals, books, blank forms, documents, letters, memoranda, notes, notebooks, reports, data, tables, calculations or copies thereof that relate in
any way to the business, products, practices or techniques of the Company or any of its Affiliates (as hereinafter defined), and all other property, trade secrets and confidential information of the
Company or any of its Affiliates, including, but not limited to, all documents that in whole or in part contain any trade secrets or confidential information of the Company or any of its Affiliates,
which in any of these cases are in Employee's possession or under Employee's control. 

        (f)    Wage Continuation.    If Employee's employment by the Company is terminated by Employee or the Company pursuant
to clause (i), (ii), (iv) or (v) of Section 4(a), then, in consideration for the execution by Employee of a release in form
and substance satisfactory to the Company (which condition shall not apply in the event of termination pursuant to clause (i) of  Section 4(a)), the Company shall continue to pay to Employee or
his estate, as the case may be, his base salary then in effect (less any payments
received by Employee from any disability income insurance policy provided to him by the Company) and shall continue to provide health insurance benefits for Employee through the earlier of
(i) the date that Employee has obtained other full-time employment, including health insurance benefits, or (ii) eighteen (18) months from the date of termination of
employment. If this Agreement is terminated pursuant to clause (iii) or (vi) of Section 4(a), other than pursuant to
clause (ii) of Section 4(b), Employee's right to base salary and all benefits shall immediately terminate, except as may otherwise be
required by applicable law. If Employee's employment by the Company is terminated by the Company pursuant to clause (ii) of Section 4(b),
then, in consideration for the execution by Employee of a release in form and substance satisfactory to the Company, the Company shall continue to pay to Employee his base salary then in effect and
shall continue to provide health insurance benefits for Employee through the earlier of (i) the date that Employee has obtained other full-time employment, including health
insurance benefits, or (ii) twelve (12) months from the date of termination of employment. 

        (g)    Termination of Benefits.    All of Employee's rights to any other employee benefit hereunder (except as
described in Section 4(f) or pursuant to law) accruing after the termination of Employee's employment with the Company shall cease upon such
termination. Upon termination of this Agreement for any reason whatsoever, Employee shall have the right to receive compensation at the rate of Employee's then applicable base salary for any accrued
but unused vacation time. Notwithstanding the foregoing, if Employee's employment by the Company is terminated by Employee or the Company pursuant to clause (i), (ii), (iv) or
(v) of Section 4(a) or pursuant to clause (iii) of Section 4(a) for Cause
pursuant to
clause (ii) of Section 4(b), all shares subject to the option described in  Section 3(e) hereof shall become immediately vested. 

        (h)    Bonus Continuation.    If Employee's employment by the Company is terminated by Employee or the Company
pursuant to clause (i), (ii), (iv) or (v) of Section 4(a), then, in consideration for the execution by Employee of a release
in form and substance satisfactory to the Company (which condition shall not apply in the event of termination pursuant to clause (i) of  Section 4(a)), the Company shall pay to Employee or his
estate, as the case may be, pursuant to  Section 3(b) Employee's pro rata share of all amounts earned or accrued thereunder through such date of termination (subject to applicable
withholdings pursuant to the Company's standard payroll practices). In the case of bonuses under Section 3(b) that are calculated based on an
annual basis or other specified period of time, Employee, or his estate, as the case may be, shall receive payment of Employee's pro rata portion (subject to applicable withholdings pursuant to the
Company's standard payroll practices) following the termination of the period for which such bonuses are calculated notwithstanding the fact that Employee is not employed by the Company on the last
day of such period. If Employee's employment is 

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terminated
pursuant to clause (iii) or (vi) of Section 4(a), Employee's right to payments pursuant to all clauses of  Section 3(b) shall
immediately terminate, except as may otherwise be required by applicable law. 

        (i)    "Affiliate" Defined.    As used in this Agreement, the term
"Affiliate" of a person or entity means any person or entity controlled by, controlling or under common control with such person or entity, or any
member of the immediate family, including parents, spouse, children or siblings, of such person. 

        (j)    "Good Reason" Defined.    As used in this Agreement, the term "Good
Reason" means (i) any non-consensual reduction in base salary as provided in Section 3(a) hereof (that
does not correspond to any material change or reduction in the duties of Employee which is at the request or consent of Employee); (ii) any non-consensual material reduction in
benefits as provided in Section 3(b) hereof (that does not correspond to any material change or reduction in the duties of Employee which is at
the request or consent of Employee); (iii) any non-consensual material change in the title or duties of Employee; (iv) any non-consensual required relocation of
Employee's principal place of employment outside of a sixty (60) mile radius of Employee's then principal place of employment that is permanent or lasts for longer than six (6) months;
or (v) any circumstance whereby the Company is engaging in unethical or illegal activity and the Company has failed to cure, correct or discontinue such activity within thirty (30) days
after receipt of written notice of such activity from Employee. 

        (k)    Change of Control.    In the event of an anticipated Change of Control as defined in
Section 2.5(ii) or 2.5(iii) of the Option Plan, and irrespective of the exceptions set forth in the last sentence of Section 18.3 of the Plan, all options granted to
Employee shall become immediately exercisable and shall remain exercisable for a period of fifteen (15) days prior to the scheduled consummation of such Change of Control. Any exercise of an
option during such fifteen (15) day period shall be conditioned
upon the consummation of the Change of Control event and shall be effective only immediately before the consummation of such event. Upon consummation of any such Change of Control all of Employee's
outstanding but unexercised options shall terminate. The Board of Directors of the Company shall send written notice to Employee of an anticipated Change of Control event that will result in such
options becoming exercisable or such unexercised options terminating not later than the time at with the Company gives notice thereof to its Shareholders. 

        (l)    Payment of Excise Tax.    In the event Employee will be subject to the excise tax imposed by
Section 4999 of the Internal Revenue Code (the "Code"), or any interest or penalties with respect to such excise tax, as a result of any payments
(including any "parachute payment" within the meaning of Section 280(G)(b)(2) of the Code) or distribution by the Company to or for the Employee's benefit, whether paid or payable or
distributed or distributable, then the Company shall make an additional payment to Employee in an amount sufficient to cover the amount of all excise tax due (including any interest or penalties
imposed with respect to such taxes). 

        5.    Ventures.    If, during the Term, Employee is engaged in or associated with the planning or implementing of any
project, program or venture involving the Company, or any of its Affiliates, and a third party or parties, all rights in such project, program or venture shall belong to the Company or its Affiliates,
as applicable. Except as approved by the Company's Board of Directors, Employee shall not be entitled to any interest in such project, program or venture or to any commission, finder's fee or other
compensation in connection therewith other than the compensation to be paid to Employee as provided in this Agreement. Employee shall have no interest, direct or indirect, in any vendor or customer of
the Company or any of its Affiliates, except that nothing in this Agreement shall preclude Employee from owning less than 1% of the total number of outstanding shares of a publicly traded company,
regardless of whether such company is a vendor or customer of the Company. 

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        6.    Intellectual Property.    

        (a)    Disclosure and Assignment.    Employee will promptly disclose in writing to the Company complete information
concerning each and every invention, discovery, improvement, device, design, apparatus, practice, process, method or product, whether patentable or not, made, developed, perfected, devised, conceived
or first reduced to practice by Employee, either solely or in collaboration with others, during the Term, or within six (6) months thereafter, whether or not during regular working hours,
relating either directly or indirectly to the business, products, practices or techniques of the Company or any of its Affiliates ("Developments").
Employee, to the extent that he has the legal right to do so, hereby acknowledges that any and all of the Developments are the property of the Company and hereby assigns and agrees to assign to the
Company any and all of Employee's right, title and interest in and to any and all Developments. At the request of the Company, Employee will confer with the Company and its representatives for the
purpose of disclosing all Developments to the Company as the Company shall reasonably request during the period ending one (1) year after termination of Employee's employment with the Company. 

        (b)    Future Developments.    As to any future Developments made by Employee that relate to the business, products or
practices of the Company, or any of its Affiliates, and that are first conceived or reduced to practice during the Term, or within six (6) months thereafter, but which are claimed for any
reason to belong to an entity or person other than the Company or any of its Affiliates, Employee will promptly disclose the same in writing to the Company and shall not disclose the same to others if
the Company, within twenty (20) days thereafter, shall claim ownership of such Developments under the terms of this Agreement. If Employee makes such disclosure and the Company does not make a
claim, the Company agrees to make all reasonable efforts to receive and hold in confidence any such information disclosed by Employee. 

        (c)    Limitation on Sections 6(a) and 6(b).    The provisions of Sections
6(a) and 6(b) shall not apply to any Development meeting the following conditions: 

          (i)  such
Development was developed entirely on Employee's own time; 

         (ii)  such
Development was made without the use of any equipment, supplies, facility or trade secret information of the Company or any of its Affiliates; 

        (iii)  such
Development does not relate (A) directly to the business of the Company or any of its Affiliates or (B) to the Company's, or any of its Affiliate's,
actual or demonstrably anticipated research or development; and 

        (iv)  such
Development does not result from any work performed by Employee for the Company or any of its Affiliates. 

        (d)    Assistance of Employee.    Upon request and without further compensation therefor, but at no expense to
Employee, and whether during the Term or thereafter, Employee will do all lawful acts, including but not limited to, the execution of papers and lawful oaths and the giving of testimony, that, in the
opinion of the Company, may be necessary or desirable in obtaining, sustaining, reissuing, extending and enforcing United States and foreign patents, including but not limited to, design patents, on
the Developments, and for perfecting, affirming and recording the Company's, or any of its Affiliate's, complete ownership and title thereto, and to cooperate otherwise in all proceedings and matters
relating thereto. 

        (e)    Records.    Employee will keep complete, accurate and authentic accounts, notes, data and records of the
Developments in the manner and form requested by the Company. Such accounts, notes, data and records shall be the property of the Company, and, upon its request, Employee will promptly surrender same
to it or, if not previously surrendered upon its request or otherwise, Employee will surrender the same, and all copies thereof, to the Company upon the conclusion of his employment. 

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        (f)    Obligations, Restrictions and Limitations.    Employee understands that the Company, or its Affiliates, may
enter into agreements or arrangements with agencies of the United States Government, and that the Company, or its Affiliates, as applicable, may be subject to laws and regulations which impose
obligations, restrictions and limitations on it with respect to inventions and patents which may be acquired by it or which may be conceived or developed by employees, consultants or other agents
rendering services to it. Employee shall be bound by all such obligations, restrictions and limitations applicable to any such invention conceived or developed by him during the Term and shall take
any and all further action that may be required to discharge such obligations and to comply with such restrictions and limitations. 

        (g)    Copyrightable Material.    All right, title and interest in all copyrightable material that Employee shall
conceive or originate, either individually or jointly with others, and which arise out of the performance of this Agreement, will be the property of the Company and are by this Agreement assigned to
the Company along with ownership of any and all copyrights in the copyrightable material. Upon request and without further compensation therefor, but at no expense to Employee, and whether during the
Term or thereafter, Employee shall execute all papers and perform all other acts necessary to assist the Company to obtain and register copyrights on such materials in any and all countries. Where
applicable, works of authorship created by Employee for the Company in performing his responsibilities under this Agreement shall be considered "works made for hire," as defined in the U.S. Copyright
Act. 

        (h)    Know-How and Trade Secrets.    All know-how and trade secret information conceived or
originated by Employee that arises out of the performance of his obligations or responsibilities under this Agreement or any related material or information shall be the property of the Company, and
all rights therein are by this Agreement assigned to the Company. 

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        7.    Settlement of Disputes.    

        (a)    Arbitration.    Except as provided in Section 7(c), any
claims or disputes of any nature between the Company and Employee arising from or related to the performance, breach, termination, expiration, application or meaning of this Agreement or any matter
relating to Employee's employment and the termination of that employment by the Company shall be resolved exclusively by arbitration in Philadelphia, Pennsylvania, in accordance with the then existing
Commercial Arbitration Rules for Resolution of Employment Disputes of the American Arbitration Association. In the event of submission of any dispute to arbitration, each party shall, not later than
thirty (30) days prior to the date set for hearing, provide to the other party and to the arbitrator(s) a copy of all exhibits upon which the party intends to rely at the hearing and a list of
all persons each party intends to call at the hearing (other than rebuttal witnesses). The arbitrator(s)' fees shall be paid by the party who or which is unsuccessful in such arbitration. The
arbitrator(s) shall have the authority to require the non-prevailing party to reimburse the prevailing party for all other costs and fees incurred by the prevailing party in connection
with such arbitration, while leaving the non-prevailing party responsible for payment of the costs and fees it or he may incur. 

        (b)    Binding Effect.    The decision of the arbitrator(s) shall be final and binding upon both parties. Judgment of
the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. 

        (c)    Resolution of Certain Claims—Injunctive
Relief.    Section 7(a) shall have no application to claims by the Company asserting a violation of  Section 4(e) or
6 or seeking to enforce, by injunction or otherwise, the terms of Section 4(e) or
6. Such claims may be maintained by the Company in a lawsuit subject to the terms of Section 7(d). Employee acknowledges
that it would be difficult to fully compensate the Company for damages resulting from any breach by him of the provisions of this Agreement. Accordingly, Employee agrees that, in addition to, but not
to the exclusion of any other available remedy, the Company shall have the right to enforce the provisions of Section 4(e) or 6 by applying for
and obtaining temporary and permanent restraining orders or injunctions from a court of competent jurisdiction without the necessity of filing a bond therefor, and without the necessity of proving
actual damages, and the Company shall be entitled to recover from Employee its reasonable attorneys' fees and costs in enforcing the provisions of Section 4(e) or
6. 

        (d)    Venue.    Any action at law, suit in equity or judicial proceeding arising directly, indirectly, or otherwise
in connection with, out of, related to or from this Agreement, or any provision hereof, shall be litigated only in the courts of the Philadelphia County, Pennsylvania. Employee and the Company consent
to the jurisdiction of such courts over the subject matter set forth in Section 7(c). Employee waives any right
Employee may have to transfer or change the venue of any litigation brought against Employee by the Company. 

        8.    Representations.    

        (a)    Employee's Representations.    Employee hereby represents and warrants to the Company that (i) the
execution, delivery and performance of this Agreement by Employee does not and will not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or
decree to which Employee is a party or by which Employee is bound, (ii) Employee is not a party to or bound by any employment agreement, covenant not to compete or confidentiality agreement
with any other person or entity, and (iii) upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid and binding obligation of Employee, enforceable in
accordance with its terms. 

        (b)    Company's Representations.    Company hereby represents and warrants to Employee that (i) the execution,
delivery and performance of this Agreement by the Company does not and will not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, 

8

 

judgment,
or decree to which the Company is a party or by which the Company is bound, and (ii) upon the execution and delivery of this Agreement by Employee, this Agreement shall be the valid
and binding obligation of the Company, enforceable in accordance with its terms. 

        9.    Miscellaneous.    

        (a)    Entire Agreement.    This Agreement (including the exhibits, schedules and other documents referred to herein)
contains the entire understanding between the parties hereto with respect to the subject matter hereof and supersedes any prior understandings, agreements or representations, written or oral, relating
to the subject matter hereof. The Company and Employee are also party to that certain Non-Competition Agreement of even date herewith. In the event of any direct conflict between any term
of this Agreement and any term of any other agreement executed by Employee, the terms of this Agreement shall control. If Employee signed or signs any other agreement(s) relating to or arising from
Employee's employment with Company, all provisions of such Agreement(s) that do not directly conflict with a provision of this Agreement shall not be affected, modified or superseded by this
Agreement, but rather shall remain fully enforceable according to their terms. 

        (b)    Counterparts.    This Agreement may be executed in separate counterparts, each of which will be an original and
all of which taken together shall constitute one and the same agreement, and any party hereto may execute this Agreement by signing any such counterpart. 

        (c)    Severability.    Whenever possible, each provision of this Agreement shall be interpreted in such a manner as
to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable under any applicable law or rule, the validity, legality and
enforceability of the other provision(s) of this Agreement will not be affected or impaired thereby. To the extent that any court concludes that any provision of this Agreement is void or voidable,
the court shall reform such provision(s) to render the provision(s) enforceable, but only to the extent absolutely necessary to render the provision(s) enforceable and only in view of the parties'
express desire that the Company be protected to the greatest extent allowed by law from the misuse or disclosure of confidential information or Developments. 

        (d)    Successors and Assigns.    This Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective heirs, personal representatives and, to the extent permitted by Section 9(e), successors and assigns. 

        (e)    Assignability.    Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by
reason hereof shall be assignable (including by operation of law) by either party without the prior written consent of the other party to this Agreement, except that the Company may, without the
consent of Employee, assign its rights and obligations under this Agreement to any corporation, firm or other business entity with or into which the Company may merge or consolidate, or to which the
Company may sell or transfer all or substantially all of its assets, or of which fifty percent (50%) or more of the equity investment and of the voting control is owned, directly or indirectly, by, or
is under common ownership with, the Company. After any such assignment by the Company, the Company shall be discharged from all further liability hereunder and such assignee shall thereafter be deemed
to be the Company for the purposes of all provisions of this Agreement including this Section 9. 

        (f)    Modification, Amendment, Waiver or Termination.    No provision of this Agreement may be modified, amended,
waived or terminated except by an instrument in writing signed by the parties to this Agreement. No course of dealing between the parties will modify, amend, waive or terminate any provision of this
Agreement or any rights or obligations of any party under or by reason of this Agreement. No delay on the part of the Company in exercising any right hereunder shall operate as a waiver of such right.
No waiver, express or implied, by the Company of any right or any breach by Employee shall constitute a waiver of any other right or breach by Employee. 

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        (g)    Notices.    All notices, consents, requests, instructions, approvals or other communications provided for
herein shall be in writing and delivered by personal delivery, overnight courier, mail, electronic facsimile or e-mail addressed to the receiving party at the address set forth herein. All
such communications shall be effective when received. 

Notices to Employee: 

Stewart
Fisher

26 Wilkeshire Blvd.

Randolph, NJ 07869 

Notices to Company: 

UTI
Corporation

200 W. 7th Avenue

Collegeville, PA 19426

Attn: Andrew D. Freed

Fax: (610) 409-2470 

with a copy to: 

Hogan &
Hartson L.L.P.

1200 17th Street, Suite 1500

Denver, Colorado 80202

Attn: Christopher J. Walsh

Fax: (303) 899-7333 

        Any
party may change the address set forth above by notice to each other party given as provided herein. 

        (h)    Headings.    The headings contained in this Agreement are for reference purposes only and shall not in any way
affect the meaning or interpretation of this Agreement. 

        (i)    Governing Law.    All matters relating to the interpretation, construction, validity and enforcement of this
Agreement shall be governed by the internal laws of the Commonwealth of Pennsylvania, without giving effect to any choice of law provisions thereof. 

        (j)    Withholding Taxes.    The Company may withhold from any benefits payable under this Agreement all federal,
state, city or other taxes as shall be required pursuant to any law or governmental regulation or ruling. 

[SIGNATURE PAGE FOLLOWS]

10

 

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date set forth in the first paragraph. 

	UTI CORPORATION	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	 	/s/  ANDREW D. FREED      
	 	 
	Name:	 	Andrew D. Freed	 	 
	Title:	 	President & Chief Executive Officer	 	 
	 	 	 	 	 
	 	 	 	 	 
	EMPLOYEE	 	 
	 	 	 	 	 
	 	 	 	 	 
	/s/  STEWART FISHER      
 Stewart Fisher	 	 

11

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Exhibit 10.3

EMPLOYMENT AGREEMENTQuickLinks
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Exhibit 10.5    
    

        [UTI LETTERHEAD]  

Stewart Fisher

Chief Financial Officer  

March 18, 2004 

Barry
Aiken

846 Hunsicker Road

Telford PA 18969 

Dear
Barry: 

In
connection with your resignation from UTI Corporation (the "Company") on December 31, 2003, you are eligible to receive the severance benefits described in the "Description of Severance
Benefits" attached to this letter as Attachment A if you sign and return this letter agreement to my attention by April 8, 2004. By signing and returning this letter, you will be entering into
a binding agreement with the Company and will be agreeing to the terms and conditions set forth in the numbered paragraphs below, including the release of claims set forth in Section 3.
Therefore, you are advised to consult with your attorney before signing this letter and you may take up to twenty-one (21) days to do so. If you sign this letter, you may change your mind and
revoke your agreement during the seven (7) day period after you have signed it. If you do not so revoke, this letter will become a binding agreement between you and the Company upon the
expiration of the seven (7) day revocation period (the "Effective Date"). 

If
you choose not to sign and return this letter agreement by April 8, 2004, you will not receive the severance benefits provided under this agreement. Rather, you will only receive, regardless
of your signing, payments equal to six (6) months of your base salary paid in accordance with the Company's normal payroll procedures and pursuant to the Employment Agreement you signed with
the Company. The Company shall also continue for six (6) months, pursuant to the federal "COBRA" law, 29 U.S.C. § 1161 et
seq., the health insurance benefits you received while employed by the Company. Thereafter, you may elect to continue receiving group medical insurance pursuant to COBRA for an
additional twelve (12) months. All premium costs shall be paid by you on a monthly basis for as long as, and to the extent that, you remain eligible for COBRA continuation. You should
consult the COBRA materials to be provided by the Company for details regarding these benefits. All other benefits, including life insurance and long-term disability, will cease upon your Termination
Date. 

In
connection with your resignation, we have also attached your final Supplemental Executive Retirement Plan (see Attachment B). Per our conversation, it is our understanding that you have elected to
receive a lump sum distribution in the amount of $422,870 less all applicable state and federal withholdings. 

The
following numbered paragraphs set forth the terms and conditions which will apply if you timely sign and return this letter agreement and do not revoke it during the seven (7) day
revocation period: 

	1.
	Termination Date—Your resignation from employment was effective at the end of the business day on
December 31, 2003 (the "Termination Date").

	2.
	Description of Severance Benefits—The severance benefits paid to you if you timely sign and return this letter
are described in the "Description of Severance Benefits" attached as Attachment A (the "severance benefits").

	3.
	Release—In consideration of the payment of the severance benefits, which you acknowledge certain of which
benefits you would not otherwise be entitled to receive, you hereby fully, forever, irrevocably and unconditionally release, remise and discharge the Company, its officers, directors, stockholders,
corporate affiliates, subsidiaries, parent companies, agents and employees (each in their individual and corporate capacities) (hereinafter, the "Release Parties") from any and all claims, charges,
complaints, demands, actions, causes of action, 

suits,
rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses (including
attorneys' fees and costs), of every kind and nature which you ever had or now have against the Released Parities arising out of your employment with and/or separation from the Company, including, but
not limited to, all employment discrimination claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. §2000e et
seq., the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Americans With
Disabilities Act of 1990, 42 U.S.C., §12101 et seq., the Family and Medical Leave Act, 29 U.S.C. § 2601  et seq., and the Worker
Adjustment and Retraining Notification Act ("WARN"), 29 U.S.C. § 2101 et
seq., the Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq., all as amended; all claims arising out
of the Fair Credit Reporting Act, 15 U.S.C. §1681 et seq., the Employee Retirement Income Security Act of 1974 ("ERISA"), 29 U.S.C.
§1001 et seq., the Pennsylvania Human Relations Act, 43 Pa. Cons. Stat. § 951 et
seq.; the Pennsylvania Equal Pay Act, 43 Pa. Cons. Stat. § 336.1 et seq.; and the Pennsylvania Family
and Medical Leave Law, Pa. Admin. Code at Title 16, Part II, Subpart A, Chapter 41, Subchapter C, et seq.; all common
law claims including, but not limited to, actions in tort, defamation and breach of contract; all claims to any non-vested ownership interest in the Company, contractual or otherwise, including but
not limited to claims to stock or stock options; and any claim or damage arising out of your employment with or separation from the Company (including a claim for retaliation) under any common law
theory or any federal, state or local statute or ordinance not expressly referenced above; provided, however, that nothing in this Agreement prevents you from filing, cooperating with, or
participating in any proceeding before the EEOC or a state Fair Employment Practices Agency (except that you acknowledge that you may not be able to recover any monetary benefits in connection with
any such claim, charge or proceeding). 

	4.
	Confidentiality, Non-Competition, Non-Solicitation and Invention Assignment—You acknowledge and reaffirm your
post-employment obligations, including, but not limited to, employment restrictions, confidentiality, non-solicitation and invention assignment, as such are contained in the Employment Agreement and
Non-Competition Agreement you entered into with the Company, which post-employment obligations are incorporated herein by reference and remain in full force and effect.

	5.
	Return of Company Property—You understand that you must immediately return all property of the Company with
the exception of the Company leased 2003 Mercedes E320W car. By signing, you confirm and acknowledge that you have returned to the Company all keys, files, records (and copies thereof), equipment
(including, but not limited to, computer hardware, software and printers, wireless handheld devices, cellular phones, pagers, etc.), Company identification, and any other Company-owned property in you
possession or control and have left intact all electronic Company documents, including, but not limited to, those which you developed or help develop during your employment. You further confirm that
you have cancelled all accounts for your benefit, if any, in the Company's name, including, but not limited to, credit cards, telephone charge cards, cellular phone and/or pager accounts and computer
accounts.

	6.
	Business Expenses and Compensation—You acknowledge that you have been reimbursed by the Company for all
business expenses incurred in conjunction with the performance of your employment and that no other reimbursements are owed to you. You further acknowledge that you have received payment in full for
all services rendered in conjunction with your employment by the Company and that no other compensation is owed to you.

	7.
	Non-Disparagement—You understand and agree that as a condition for payment to you of the consideration herein
described, you shall not make any false, disparaging or derogatory statements to any media outlet, industry group, financial institution or current or former employee, consultant, client or customer
of the Company regarding the Company or any of its directors, officers, employees, agents or representatives or about the Company's business affairs and financial condition. 

	8.
	Amendment—This letter agreement shall be binding upon the parties and may not be modified in any manner,
except by an instrument in writing of concurrent or subsequent date signed by duly authorized representatives of the parties hereto. This letter agreement is binding upon and shall inure to the
benefit of the parties and their respective agents, assigns, heirs, executors, successors and administrators.

	9.
	Waiver of Rights—No delay or omission by either party hereto in exercising any right under this letter
agreement shall operate as a waiver of that or any other right. A waiver or consent given by any such party on any one occasion shall be effective only in that instance and shall not be construed as a
bar or waiver of any right on any other occasion.

	10.
	Validity—Should any provision of this letter agreement be declared or be determined by any court of competent
jurisdiction to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provision shall be deemed not to
be a part of this letter agreement.

	11.
	Confidentiality—You understand and agree that as a condition for payment to you of the severance benefits
herein described, the terms and contents of this letter agreement, and the contents of the negotiations and discussions resulting in this letter agreement, shall be maintained as confidential and
shall not be disclosed except to the extent required by federal or state law or as otherwise agreed to in writing by the Company.

	12.
	Nature of Agreement—You understand and agree that this letter agreement is a severance agreement and does not
constitute an admission of liability or wrongdoing on the part of the Company or you.

	13.
	Acknowledgments—You acknowledge that you have been given at least twenty-one (21) days to consider
this letter agreement and that the Company advised you to consult with an attorney of your own choosing prior to signing this letter agreement. You understand that you may revoke this letter agreement
for a period of seven (7) days after you sign this letter agreement, and the letter agreement shall not be effective or enforceable until the expiration of this seven (7) day revocation
period.

	14.
	Voluntary Assent—You affirm that no other promises or agreements of any kind have been made to or with you by
any person or entity whatsoever to cause you to sign this letter agreement, and that you fully understand the meaning and intent of this letter agreement. You state and represent that you have had an
opportunity to fully discuss and review the terms of this letter agreement with an attorney. You further state and represent that you have carefully read this letter agreement, understand the contents
herein, freely and voluntarily assent to all of the terms and conditions hereof, and sign your name of your own free act.

	15.
	Applicable Law—This letter agreement shall be interpreted and construed by the laws on the Commonwealth of
Pennsylvania, without regard to conflict of laws provisions. You hereby irrevocably submit to and acknowledge and recognize the jurisdiction of the courts of the Commonwealth of Pennsylvania, or if
appropriate, a federal court located in Pennsylvania (which courts, for purposes of this letter agreement, are the only courts of competent jurisdiction), over any suits, action or other proceeding
arising out of, under or in connection with this letter agreement, the subject matter hereof or otherwise related to your employment with the Company.

	16.
	Entire Agreement—This letter agreement, contains and constitutes the entire understanding and agreement
between the parties hereto with respect to your severance benefits and the settlement of claims against the Company and cancels all previous oral and written negotiations, agreements, commitments,
writings in connection therewith. Nothing in this paragraph, however, shall modify, cancel or supersede your obligations set forth in Section 4 herein. 

If
you have any questions about the matters covered in this letter, please call me. 

	 	 	Very truly yours,
	

 	
 	

/s/  STEWART FISHER      
 Stewart Fisher, Executive Vice President and Chief Financial Officer, UTI Corporation

I
have carefully read, fully understand and hereby agree to the terms and conditions set forth above. I have been given at least twenty-one (21) days to consider this agreement and I have
chosen to execute this on the date below. I intend that this letter agreement become a binding agreement between the Company and me if I do not revoke my acceptance in seven (7) days. 

	/s/  BARRY AIKEN      
 Employee Name: Barry Aiken

To be returned by April 8, 2004	 	Date	 	3/30/04

 
 

ATTACHMENT A    
    

 
  DESCRIPTION OF SEVERANCE BENEFITS    
    

Salary  

In
addition to the six (6) months salary being provided to you by the Company under your Employment Agreement, the Company will pay you an additional six (6) months of your base salary
(equivalent to $13,333 per month) less all applicable state and federal withholdings. The Company will make these salary payments in accordance with its normal payroll procedures, over a twelve
(12) month period commencing January 1, 2004. 

Medical Benefits  

In
addition to the six (6) months health insurance benefits being provided to you by the Company under your Employment Agreement pursuant to COBRA and paid by the Company (subject to the Employee's
normal share of the premium), the Company will provide you, for an additional period of six (6) months, Company paid COBRA benefits (subject to the Employee's normal share of the premium).
Thereafter, you may elect to continue receiving group medical insurance pursuant to COBRA and all premium costs shall be paid by you on a monthly basis for as along as, and to the extent that, you
remain eligible for COBRA continuation. You will continue to receive COBRA until the earlier of: (i) the expiration of the time frames previously stated; or (ii) your becoming eligible
for medical benefits from a new employer. You should consult the COBRA materials to be provided by the Company for details regarding these benefits. 

Additional Payment  

During
the severance period, the Company shall continue to provide you with an automobile allowance (net of your contribution) equal to and paid in the same manner as the automobile allowance provided
prior to your resignation. You understand and agree that the Mercedes E320W will not be used in connection with the Company's business after your termination date and that, as a result, any automobile
allowance paid therefore may be subject to tax. You are solely responsible for any taxes resulting from the Company's payment of the automobile allowance hereunder. You hereby indemnify and hold the
Company harmless for any action related to such vehicle arising after the Termination Date. 

You
also agree to return the Mercedes E320W in good operating condition (subject to normal wear) on or before December 31, 2004. To the extent the Mercedes E320W is not returned on or before
December 31, 2004, you agree to assume, if permitted by law, the monthly lease payments of $831.96 plus insurance and other operating costs and penalties if any. You will not be permitted to
retain such vehicle if such an assumption is not permitted. 

Should
you return the Mercedes E320W prior to December 31, 2004 in good operating condition, UTI will no longer deduct $454.88 per month from your severance payment that represents your
contribution towards the automobile allowance. 

 
 

ATTACHMENT B    
    

UTI
Corporation 

Supplemental
Executive Retirement Plan

Final Benefit Report for: 

Barry
R. Aiken 

	Basic Data:	 	 	 	 	 
	 	Date of Birth	 	 	August 26, 1948
	 	Date of Hire	 	 	December 4, 1972
	 	Retirement Date	 	 	January 2, 2004 (Age 55 and 30-plus Years of Service)
	 	SERP Benefit Objective	 	 	50.00%
	 	SERP Accrual Period	 	 	30 years
	 	Five-Year Final Average Compensation	 	$	213,660	 	 
	 	Profit Sharing Account Balance, 12/31/2003	 	$	233,438	 	 
	 	401(k) Employer-Provided Account Balance, 12/31/2003	 	$	47,262	 	 
	 	Pension Plan Monthly Benefit	 	$	696.90	 	per month as of Date of Plan Termination
	

SERP Results:	
 	
 	

 	
 	

 
	 	Annual SERP Benefit Objective Payable at age 65	 	$	106,830	 	 
	 	Annual Benefit—Other Sources	 	 	 	 	 
	 	 	Profit Sharing	 	$	20,318	 	 
	 	 	401(k) Employer-Provided Benefit	 	 	4,114	 	 
	 	 	Social Security—Estimated	 	 	20,700	 	 
	 	 	UTI Pension Plan	 	 	8,400	 	 
	 	 	
	 	 
	 	Total—Other Sources Payable at age 65	 	$	53,532	 	 
	

Estimated SERP Benefit Payable at age 65, Single Life Annuity	
 	
$	

53,298	
 	

 
	Estimated SERP Benefit Payable at age 55, Single Life Annuity	 	$	27,539	 	 
	

Lump Sum Value	
 	
$	

422,870	
 	

as of January 1, 2004, payable in 2004
	

Assumptions:	
 	
 	

 	
 	

 
	 	Interest Rate:	 	 	3.25% (PBGC Rate for January 2004)
	 	Mortality Rates:	 	 	UP-84
	 	 Provisions in SERP contract dated December 1, 1990 and precedents set in calculations after the contract date
	 	 Profit Sharing account balance does not include any rollover from the Pension Plan
	 	 Social Security benefits were estimated according to 2003 Social Security Law
	 	 SERP Benefit payable at age 65 is reduced by 5% per year early (48.33% at age 55 years, 4 months)
	 	 Information used for this calculation was provided by UTI Corporation
	

 	
 	
 	

 	
 	

 
	 	
 Prepared by Markley Actuarial Services, Inc.	
 	
 	

 	
 	

February 12, 2004

QuickLinks

Exhibit 10.5

ATTACHMENT A

DESCRIPTION OF SEVERANCE BENEFITS

ATTACHMENT B

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