Document:

Exhibit 10.27

 

ABBOTT LABORATORIES
 NON-EMPLOYEE DIRECTOR NON-QUALIFIED STOCK OPTION AGREEMENT

 

On this «Grant_Day» day of «Grant_Month», 201   (the “Grant Date”), Abbott Laboratories hereby grants to «First Name» «MI» «Last Name», (the “Director”) an Option (the “Option”) to purchase a total of «NoShares12345» Shares, at the price of $«Option_Price» per Share (the “Exercise Price”), such price being not less than 100% of the Fair Market Value of the Shares on the Grant Date.

 

The Option is granted under the Program and is subject to the provisions of the Program, the Program prospectus, the Program administrative rules, applicable Company policies, and the terms and conditions set forth in this Agreement.  In the event of any inconsistency among the provisions of this Agreement, the provisions of the Program, the Program prospectus, and the Program administrative rules, the Program shall control.

 

The terms and conditions of the Option granted to the Director are as follows:

 

1.                                      Definitions.  To the extent not defined herein, capitalized terms shall have the same meaning as in the Program.

 

(a)                                 Agreement:  This Non-Employee Director Non-Qualified Stock Option Agreement.

 

(b)                                 Data:  Certain personal information about the Director held by the Company and the Subsidiary for which the Director provides services (if applicable), including (but not limited to) the Director’s name, home address and telephone number, date of birth, social security number or other identification number, salary, nationality, job title, any Shares held in the Company, details of all Options or any other entitlement to Shares awarded, canceled, purchased, vested, unvested or outstanding in the Director’s favor, for the purpose of managing and administering the Program.

 

(c)                                  Director’s Representative:  The Director’s legal guardian or other legal representative.

 

(d)                                 Option:  The Non-Qualified Stock Option granted pursuant to this Agreement.

 

(e)                                  Program:  The Abbott Laboratories 2017 Incentive Stock Program.

 

(f)                                   Termination:  A termination from service with the Board of Directors of the Company and all Subsidiaries.

 

2.                                      Term of Option.  The Director may exercise all or a portion of the vested Option at any time prior to the 10th anniversary of the Grant Date (the “Expiration Date”); provided that the Option may be exercised with respect to whole Shares only.  In no event shall the Option be exercisable on or after the Expiration Date.  To the extent the Option is not exercised prior to the Expiration Date, it shall be canceled and forfeited.

 

3.                                      Vesting.  The Option is 100% vested on the Grant Date.

 

 

4.                                      Exercise of the Option.  To the extent vested, the Option may be exercised in whole or in part as follows:

 

(a)                                 Who May Hold/Exercise the Option.

 

(i)                                     General Rule - Exercise by Director Only.  During the lifetime of the Director, the Option may be exercised only by the Director or the Director’s Representative.

 

(ii)                                  Death Exception.  If the Director dies, then the Option may be exercised only by the executor or administrator of the estate of the Director or the person or persons to whom rights under the Option have passed by will or the laws of descent or distribution, and only on or before the day prior to the Expiration Date.  Such person(s) shall furnish the appropriate tax clearances, proof of the right of such person(s) to exercise the Option, and other pertinent data as the Company may deem necessary.

 

(iii)                               Transferability.  Except as otherwise provided by the Committee or its delegate, the Option is not transferable other than: (A) by will or the laws of descent and distribution; or (B) by the Director as a gift to the Director’s spouse, child or grandchild (the Director’s “Immediate Family”) or to a family trust, a family partnership, a family limited liability company, or a similar arrangement for the benefit of members of the Director’s Immediate Family.  It may not be assigned, transferred (except by will or the laws of descent and distribution), pledged or hypothecated in any way, whether by operation of law or otherwise, and shall not be subject to execution, attachment, or similar process.  Any attempt at assignment, transfer, pledge, hypothecation, or other disposition of the Option contrary to the provisions hereof, and the levy of any attachment or similar process upon such Option, shall be null and void.

 

(b)                                 Method of Exercise.  Subject to the requirements of local law, the Option may be exercised only by:

 

(i)                                     delivery to the designated employee or agent of the Company of a written, electronic, or telephonic notice of exercise, specifying the number of Shares with respect to which the Option is then being exercised, and payment of the full Exercise Price of the Shares being purchased in cash or with other Shares held by the Director having a then Fair Market Value equal to the Exercise Price;

 

(ii)                                  delivery of a properly-executed exercise notice together with a copy of irrevocable instructions to a broker to deliver promptly to the Company the amount of sale or loan proceeds to pay the Exercise Price;

 

(iii)                               a combination of (i) and (ii) above; or

 

(iv)                              any other manner approved by the Committee from time to time.

 

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Each method of exercise requires payment of the full amount of any federal, state, local or other applicable taxes which the Company believes are required to be withheld and paid with respect to such exercise, as described below.

 

(c)                                  Payment of Taxes.  The Company shall be entitled to withhold, or require the Director to remit, any federal, state, local, and other applicable taxes (in U.S. or non-U.S. jurisdictions), including income, social security and Medicare withholding taxes arising in connection with the receipt or exercise of the Option by, without limitation:

 

(i)                                     having the Company withhold Shares;

 

(ii)                                  tendering Shares received in connection with the Option back to the Company;

 

(iii)                               delivering other previously acquired Shares having a Fair Market Value approximately equal to the amount to be withheld;

 

(iv)                              selling Shares issued pursuant to the Option and having the Company withhold from the proceeds of the sale of such Shares;

 

(v)                                 having the Company or a Subsidiary, as applicable, withhold from any cash compensation payable to the Director; or

 

(vi)                              requiring the Director to repay the Company or Subsidiary, in cash or in Shares, for taxes paid on the Director’s behalf.

 

Notwithstanding the foregoing, if the Director is subject to Section 16 of the Exchange Act pursuant to Rule 16a-2 promulgated thereunder, any tax withholding obligations shall be satisfied by having the Company withhold a number of Shares otherwise issuable pursuant to the Option that is sufficient to satisfy such obligations consistent with the Company’s withholding practices.

 

If, to satisfy tax withholding obligations, the Company withholds Shares otherwise issuable to the Director, the Director shall be deemed to have been issued the full number of Shares underlying the Option.

 

5.                                      No Right to Continued Service.  This Agreement and the Director’s participation in the Program is not and shall not be interpreted to:

 

(a)                                 form a contractual relationship with the Company or its Subsidiaries;

 

(b)                                 confer upon the Director any right to continue in the service of the Company or any of its Subsidiaries; or

 

(c)                                  interfere with the ability of the Company or its Subsidiaries to terminate the Director’s service at any time.

 

6.                                      No Contract as of Right.  The grant of an Option under the Program does not create any contractual or other right to receive additional Options or other Program Benefits.  Nothing contained in this Agreement is intended to create or enlarge any other 

 

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contractual obligations between the Company and the Director.  Future Option grants, if any, and their terms and conditions, will be at the sole discretion of the Committee.

 

7.                                      Data Privacy.

 

(a)                                   Pursuant to applicable personal data protection laws, the collection, processing and transfer of the Director’s personal Data is necessary for the Company’s administration of the Program and the Director’s participation in the Program.  The Director’s denial and/or objection to the collection, processing and transfer of personal Data may affect his or her ability to participate in the Program.  As such (where required under applicable law), the Director:

 

(i)                                    voluntarily acknowledges, consents and agrees to the collection, use, processing and transfer of personal Data as described herein; and

 

(ii)                                authorizes Data recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for purposes of implementing, administering and managing the Director’s participation in the Program, including any requisite transfer of such Data as may be required for the administration of the Program and/or the subsequent holding of Shares on the Director’s behalf to a broker or other third party with whom the Director may elect to deposit any Shares acquired pursuant to the Program.

 

(b)                                   Data may be provided by the Director or collected, where lawful, from third parties, and the Company will process the Data for the exclusive purpose of implementing, administering and managing the Director’s participation in the Program.  Data processing will take place through electronic and non-electronic means according to logics and procedures strictly correlated to the purposes for which the Data is collected and with confidentiality and security provisions as set forth by applicable laws and regulations in the Director’s country of residence.  Data processing operations will be performed minimizing the use of personal and identification data when such operations are unnecessary for the processing purposes sought.  The Data will be accessible within the Company’s organization only by those persons requiring access for purposes of the implementation, administration and operation of the Program and for the Director’s participation in the Program.

 

(c)                                    The Company will transfer Data as necessary for the purpose of implementation, administration and management of the Director’s participation in the Program, and the Company and the Subsidiary that served by the Director (if applicable) may further transfer Data to any third parties assisting the Company in the implementation, administration and management of the Program.  These recipients may be located throughout the world.

 

(d)                                   The Director may, at any time, exercise his or her rights provided under applicable personal data protection laws, which may include the right to:

 

(i)                                    obtain confirmation as to the existence of the Data;

 

(ii)                                 verify the content, origin and accuracy of the Data;

 

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(iii)                              request the integration, update, amendment, deletion or blockage (for breach of applicable laws) of the Data; and

 

(iv)                             oppose, for legal reasons, the collection, processing or transfer of the Data which is not necessary or required for the implementation, administration and/or operation of the Program and the Director’s participation in the Program.

 

The Director may seek to exercise these rights by contacting the Company’s corporate human resources department.

 

8.                                      Private Placement.  This Option grant is not intended to be a public offering of securities in the Director’s country.  The Company has not submitted any registration statement, prospectus or other filings with the local securities authorities (unless otherwise required under local law), and this Option grant is not subject to the supervision of the local securities authorities.

 

9.                                      Exchange Controls.  As a condition to this Option grant, the Director agrees to comply with any applicable foreign exchange rules and regulations.

 

10.                               Exchange Rate Fluctuations.  Neither the Company nor any of its Subsidiaries shall be liable for any change in value of the Option, the amount realized upon exercise of the Option or the amount realized upon a subsequent sale of any Shares acquired upon exercise of the Option, resulting from any fluctuation of the United States Dollar/local currency foreign exchange rate.

 

11.                               Compliance with Applicable Laws and Regulations.

 

(a)                                 The Company shall not be required to issue or deliver any Shares pursuant to this Agreement pending compliance with all applicable federal and state securities and other laws (including any registration requirements or tax withholding requirements) and compliance with the rules and practices of any stock exchange upon which the Company’s Shares are listed.

 

(b)                                 Regardless of any action the Company or its Subsidiaries take with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related items related to the Director’s participation in the Program and legally applicable to the Director or deemed by the Company or its Subsidiaries to be an appropriate charge to the Director even if technically due by the Company or its Subsidiaries (“Tax-Related Items”), the Director acknowledges that the ultimate liability for all Tax-Related Items is and remains the Director’s responsibility and may exceed the amount actually withheld by the Company or its Subsidiaries.  The Director further acknowledges that the Company and/or its Subsidiaries: (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Option, including, but not limited to, the grant, vesting or exercise of the Option, the issuance of Shares upon exercise of the Option, the subsequent sale of Shares acquired pursuant to such issuance and the receipt of any dividends; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Option to reduce or eliminate the Director’s liability for Tax-Related Items or achieve any particular tax result.  Further, if the Director has become subject to tax in 

 

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more than one (1) jurisdiction between the date of grant and the date of any relevant taxable event, the Director acknowledges that the Company and/or its Subsidiaries may be required to withhold or account for Tax-Related Items in more than one (1) jurisdiction.

 

12.                               Code Section 409A.  The Option is intended to be exempt from the requirements of Code Section 409A.  The Program and this Agreement shall be administered and interpreted in a manner consistent with this intent.  If the Company determines that the Option is subject to Code Section 409A and this Agreement fails to comply with that section’s requirements, the Company may, at the Company’s sole discretion, and without the Director’s consent, amend this Agreement to cause it to comply with Code Section 409A or otherwise be exempt from Code Section 409A.

 

Although this Agreement and the Benefits provided hereunder are intended to be exempt from the requirements of Code Section 409A, the Company does not represent or warrant that this Agreement or the Benefits provided hereunder will comply with Code Section 409A or any other provision of federal, state, local, or non-United States law.  None of the Company, its Subsidiaries, or their respective directors, officers, employees or advisers shall be liable to the Director (or any other individual claiming a benefit through the Director) for any tax, interest, or penalties the Director may owe as a result of compensation paid under this Agreement, and the Company and its Subsidiaries shall have no obligation to indemnify or otherwise protect the Director from the obligation to pay any taxes pursuant to Code Section 409A.

 

13.                               No Advice Regarding Grant.  The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Option, the Director’s participation in the Program or the Director’s acquisition or sale of the underlying Shares.  The Director is hereby advised to consult with the Director’s own personal tax, legal and financial advisors regarding participation in the Program before taking any action related to the Program.

 

14.                               Imposition of Other Requirements.  The Company reserves the right to impose other requirements on the Director’s participation in the Program, on the Option and on any Shares acquired under the Program, to the extent the Company or its Subsidiaries determines it is necessary or advisable in order to comply with local law or facilitate the administration of the Program, and to require the Director to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.  The Director agrees to take any and all actions, and consents to any and all actions taken by the Company and its Subsidiaries, as may be required to allow the Company and its Subsidiaries to comply with local laws, rules and regulations in the Director’s country.  In addition, the Director agrees to take any and all actions as may be required to comply with the Director’s personal obligations under local laws, rules and regulations in the Director’s country.

 

15.                               Determinations.  Each decision, determination, interpretation or other action made or taken pursuant to the provisions of this Agreement by the Company, the Committee or any delegate of the Committee shall be final, conclusive and binding for all purposes and upon all persons, including, without limitation, the Company, the Director, the Director’s Representative, and the person or persons to whom rights under the Option have passed by will or the laws of descent or distribution.

 

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16.                               Electronic Delivery.  The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Program by electronic means.  The Director hereby consents to receive such documents by electronic delivery and agrees to participate in the Program through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

 

17.                               Addendum.  This Option grant shall be subject to any special terms and conditions set forth in any Addendum to this Agreement for the Director’s country.  Any such Addendum shall constitute part of this Agreement.

 

18.                               Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.  To the extent a court or tribunal of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, in whole or in part, the Company, in its sole discretion, shall have the power and authority to revise or strike such provision to the minimum extent necessary to make it valid and enforceable to the full extent permitted under local law.

 

19.                               Entire Agreement.  This Agreement and the Program constitute the entire agreement between the Director and the Company regarding the Option and supersede all prior and contemporaneous agreements and understandings, oral or written, between the parties regarding the Option.  Except as expressly set forth herein, this Agreement (and any provision of this Agreement) may not be modified, changed, clarified, or interpreted by the parties, except in a writing specifying the modification, change, clarification, or interpretation, and signed by a duly authorized Company officer.

 

20.                               Succession.  This Agreement shall be binding upon and operate for the benefit of the Company and its successors and assigns, and the Director, the Director’s Representative, and the person or persons to whom rights under the Option have passed by will or the laws of descent or distribution.

 

21.                               Language.  If the Director has received this Agreement or any other document related to the Program translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

 

22.                               Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois without giving effect to any state’s conflict of laws principles.

 

*              *              *

 

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer as of the grant date above set forth.

 

	
 
    	
ABBOTT   LABORATORIES
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Miles D. White
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Chairman and   Chief Executive Officer
    

 

8Exhibit 10.1

 

SEPARATION AND RELEASE AGREEMENT

 

This Separation and Release Agreement (“Release”) is made by and between David J. Castagnola (“Employee”), Wesco Aircraft Hardware Corp. (the “Company”) and Wesco Aircraft Holdings, Inc. (“Parent”) (collectively, referred to as the “Parties” or individually referred to as a “Party”).  Capitalized terms used in this Release but not defined herein shall have the meanings assigned to them in the Agreement (as defined below).

 

WHEREAS, Employee and the Company are parties to that certain Executive Severance Agreement dated as of April 6, 2015 (the “Agreement”);

 

WHEREAS, the Employee’s employment with the Company has terminated effective as of April 26, 2017 (the “Separation Date”) and the Company has delivered this Release to the Employee prior to the Separation Date;

 

WHEREAS, this Release constitutes the release of claims referred to in Section 3(d) of the Agreement and the execution of this Release by the Employee is a condition to Employee’s right to receive the severance payments and benefits set forth in Section 3(a) of the Agreement; and

 

WHEREAS, the Company and Employee wish to fully and finally resolve all matters between them as provided in this Release.

 

NOW, THEREFORE, the Parties, intending to be legally bound hereby, agree as follows:

 

1.     Separation.

 

a.             The Employee understands and acknowledges that the Employee’s employment with the Company shall terminate and has terminated effective on the Separation Date (the “Separation”).

 

b.             Effective as of the Separation Date, the Employee hereby resigns from all officer, director or other positions with the Company, Parent and any of their subsidiaries and affiliates, including, for the avoidance of doubt, the Employee’s position as a member of the board of directors of Parent, such that, as of the Separation Date, the Employee shall not and does not hold any position (whether as an officer, director, manager, employee, trustee, fiduciary, or otherwise) with, and shall cease to exercise or convey any authority (actual, apparent, or otherwise) on behalf of, the Company, Parent and their subsidiaries and affiliates.

 

c.             The Employee agrees that Employee shall promptly return all Company property in Employee’s possession, including, but not limited to, Company confidential information and trade secrets, computer hardware/software, credit and telephone cards, access cards and keys, Company cars (subject to Employee’s entitlements under Section 3(a)(iv) of the Agreement), PDAs and cellular phones.

 

d.             The Employee agrees that the Employee will take any further action, including executing any documents or instruments, reasonably requested by the Company in connection with the foregoing.

 

2.     Severance Payments and Benefits.

 

a.             Subject to Employee’s compliance with the terms of this Release and the Agreement (including but not limited to Sections 4, 5, 6 and 8 thereof) and with Employee’s other continuing obligations to the Company, Employee will receive the severance payments and benefits set forth in Section 3(a) of the Agreement.  Such payments will be made in accordance with and subject to the terms

 

 

and conditions of Section 3(a) and the other relevant provisions of the Agreement.

 

b.             Upon his commencement of employment with the Company in April 2016, the Employee was granted an award of 94,280 shares of restricted stock in Parent (the “Initial Restricted Stock Grant”), which was scheduled to vest in a single installment on the three year anniversary of the date grant, subject to the Employee’s continued employment with the Company on such date and the Company’s attaining a return on invested capital of at least 12% for the twelve month period ending March 31, 2018 (the “Performance Condition”).  Subject to Employee’s compliance with the terms of this Release and the Agreement (including but not limited to Sections 4, 5, 6 and 8 thereof) and with Employee’s other continuing obligations to the Company, the Company and Parent agree that as of the Effective Date (as defined below) of this Agreement, two-thirds of the Initial Restricted Stock Grant (62,853 shares) shall become immediately vested and non-forfeitable and, for the avoidance of doubt, the Performance Condition shall no longer apply.  The remaining one-third of the Initial Restricted Stock Grant shall be forfeited by Employee without consideration as of the Separation Date.

 

c.             The parties acknowledge that on October 1, 2015, the Executive was granted, with respect to Parent’s common stock, 106,412 stock options (the “2015 Stock Option Grant”), 39,469 restricted shares (the “2015 Restricted Stock Grant”) and 38,308 performance share units (the “2015 PSU Grant” and, together with the 2015 Stock Option Grant and the 2015 Restricted Stock Grant, the “2015 Equity Grant”).  Subject to Employee’s compliance with the terms of this Release and the Agreement (including but not limited to Sections 4, 5, 6 and 8 thereof) and with Employee’s other continuing obligations to the Company, the Company and Parent agree that as of the Effective Date, the Executive will vest in that portion of the 2015 Equity Grant that was otherwise scheduled to vest on September 30, 2017.  The number of restricted shares that will vest pursuant to the foregoing is 13,156 shares and the number of stock options that will vest pursuant to the foregoing is 35,470 options, which options have an exercise price of $12.06.  The Executive will not vest in any performance share units as a result of this Section 2.c.

 

d.             On September 30, 2016, the Employee vested in options to purchase 35,471 shares of Parent’s common stock, representing the first one-third tranche of the 2015 Stock Option Grant, such that the total number of vested stock options held by the Executive (including the stock options that vest pursuant to Section 2.c.) is 70,941, which options have an exercise price of $12.06 (the “Vested Options”).  Subject to Employee’s compliance with the terms of this Release and the Agreement (including but not limited to Sections 4, 5, 6 and 8 thereof) and with Employee’s other continuing obligations to the Company, the Company and Parent agree that, with respect to the Vested Options, Employee’s Separation from the Company will be treated as a Wesco Approved Retirement under Parent’s stock option Retirement Policy, such that, notwithstanding the provisions of the applicable stock option agreement providing for termination of the Vested Options 90 days after the Separation Date, the Vested Options shall remain exercisable until the one year anniversary of the Separation Date (subject to earlier termination of the Vested Options pursuant to Parent’s 2014 Incentive Award Plan in connection with a corporate event).

 

e.             The Executive acknowledges that as of the Separation Date, he will forfeit without consideration the remaining unvested portion of the 2015 Equity Grant and all other outstanding equity awards held by him that have not vested prior to the Separation Date, including all such awards granted to him in calendar year 2016.

 

f.             All payments and benefits provided under or pursuant to this Release shall be subject to Section 3(h) of the Agreement.

 

3.     Release of Claims.  Employee agrees that the foregoing consideration represents settlement in full

 

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of all outstanding obligations owed to Employee by the Company and any of its direct or indirect subsidiaries and affiliates (including, without limitation, Parent, Haas Group Inc., The Carlyle Group and each of their affiliated entities), and any of their current and former officers, directors, equity holders, managers, employees, agents, investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, insurers, trustees, divisions, and subsidiaries and predecessor and successor corporations and assigns (collectively, the “Releasees”).  Employee, on Employee’s own behalf and on behalf of any of Employee’s affiliated companies or entities and any of their respective heirs, family members, executors, agents, and assigns, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Employee may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and including the Effective Date of this Release (as defined in Section 10 below), including, without limitation:

 

a.             any and all claims relating to or arising from Employee’s employment  or service relationship with the Company or any of its direct or indirect subsidiaries or affiliates and the termination of that relationship;

 

b.             any and all claims relating to, or arising from, Employee’s right to purchase, or actual purchase of any shares of stock or other equity interests of the Company or any of its affiliates, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law;

 

c.             any and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits;

 

d.             any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Pennsylvania Human Relations Act; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act; and the Sarbanes-Oxley Act of 2002;

 

e.             any and all claims for violation of the federal or any state constitution;

 

f.             any and all claims arising out of any other laws and regulations relating to employment or employment discrimination;

 

g.             any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other tax treatment of any of the proceeds received by Employee as a result of this Release; and

 

h.             any and all claims for attorneys’ fees and costs not otherwise provided for in this Release.

 

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Employee agrees that the release set forth in this Section 3 shall be and remain in effect in all respects as a complete general release as to the matters released.  This release does not release claims that cannot be released as a matter of law, including, but not limited to, Employee’s right to file a charge with or participate in a charge by the Equal Employment Opportunity Commission, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, against the Company (with the understanding that Employee’s release of claims herein bars Employee from recovering such monetary relief from the Company or any Releasee), claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of applicable state law, claims to continued participation in certain of the Company’s group benefit plans pursuant to the terms and conditions of COBRA, and claims to any benefit entitlements vested as the date of separation of Employee’s employment, pursuant to written terms of any employee benefit plan of the Company or its affiliates.  This release further does not release claims for breach of the Company’s obligations under this Release, any claims arising from any omissions or acts that occur after the Effective Date of this Release, or any claims for or rights to indemnification pursuant to any separate agreement entered into with the Company or any of its affiliates, any directors and officers liability insurance, the Company’s or any of its affiliate’s bylaws or articles or certificate of incorporation or applicable law.  Nothing in this Agreement shall be deemed to prohibit the Employee from providing information to or testifying or otherwise assisting in any investigation or proceeding brought by any state, federal or local regulatory or law enforcement agency or legislative body and nothing in this Agreement is intended to limit the Employee’s right to receive an award for information provided to any government agency.

 

4.     Acknowledgment of Waiver of Claims under ADEA.  Employee understands and acknowledges that Employee is waiving and releasing any rights Employee may have under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and release is knowing and voluntary.  Employee understands and agrees that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the Effective Date of this Release.  Employee understands and acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Employee was already entitled.  Employee further understands and acknowledges that Employee has been advised by this writing that:  (a) Employee should consult with an attorney prior to executing this Release; (b) Employee has 21 days within which to consider this Release; (c) Employee has 7 days following Employee’s execution of this Release to revoke this Release pursuant to written notice delivered to the Company (attention of John Holland, Executive Vice President and Chief Legal Officer of the Company at the following address:  Wesco Aircraft, 24911 Avenue Stanford, Valencia, California 91355); (d) this Release shall not be effective until after the revocation period has expired; and (e) nothing in this Release prevents or precludes Employee from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law.  In the event Employee signs this Release and returns it to the Company in less than the 21 day period identified above, Employee hereby acknowledges that Employee has freely and voluntarily chosen to waive the time period allotted for considering this Release.  In the event Employee revokes this Release, the Executive will receive none of the payments and benefits provided under Section 2 hereof and Section 3 shall not apply; however, the provisions of Section 1 hereof shall remain in effect.

 

5.     Severability.  In the event that any provision or any portion of any provision hereof or any surviving agreement made a part hereof becomes or is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or void, this Release shall continue in full force and effect without said provision or portion of provision.

 

6.     Section 409A.

 

a.             Employee’s right to receive any payments under this Release shall be treated as a right to

 

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receive a series of separate payments and, accordingly, each such payment shall at all times be considered a separate and distinct payment as permitted under Section 409A of the Code.  No payment hereunder shall be accelerated by the Company unless the Company chooses to accelerate a payment hereunder and such acceleration would not result in additional tax or interest pursuant to Section 409A of the Code.

 

b.             The intent of the Parties is that the payments and benefits under this Release comply with or be exempt from Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and guidance promulgated thereunder (collectively, “Section 409A”) and, accordingly, to the maximum extent permitted, this Release shall be interpreted to be in compliance therewith.  If the Employee or the Company believes, at any time, that any payment pursuant to this Release is subject to taxation under Section 409A of the Code, then (i) it shall advise the other and (ii) to the extent such correction is possible to avoid taxation under Section 409A without any material diminution in the value of the payments or benefits to Employee, the Company and Employee shall reasonably cooperate in good faith to take such steps as necessary, including amending (and, as required, consenting to the amendment of) the terms of any plan or program under which such payments are to be made, in the least restrictive manner necessary in order to comply with the provisions of Section 409A and the Section 409A Regulations in order to avoid taxation under Section 409A.

 

7.     No Oral Modification.  This Release may only be amended in a writing signed by Employee and a duly authorized officer of the Company.

 

8.     Governing Law and Venue.  The provisions of Section 12(d) of the Agreement shall apply to this Release.

 

9.     Notices.  Except as otherwise set forth herein, the provisions of Section 12(e) of the Agreement shall apply to this Release.

 

10.  Effective Date.  Employee has seven days after he signs this Release to revoke it and this Release will become effective on the eighth day after Employee signed this Release, so long as it has been signed by the Parties and has not been revoked by Employee before that date (the “Effective Date”).  Notwithstanding anything to the contrary herein, the Separation shall occur on the Separation Date in accordance with the provisions of Section 1 and the recitals hereto and all of the provisions of Section 1 are effective immediately upon the Employee’s execution of this Agreement.

 

11.  Voluntary Execution of Release.  Employee understands and agrees that Employee executed this Release voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of Employee’s claims against the Company and any of the other Releasees.  Employee acknowledges that:  (a) Employee has read this Release; (b) Employee has not relied upon any representations or statements made by the Company that are not specifically set forth in this Release; (c) Employee has been represented in the preparation, negotiation, and execution of this Release by legal counsel of Employee’s own choice or has elected not to retain legal counsel; (d) Employee understands the terms and consequences of this Release and of the releases it contains; and (e) Employee is fully aware of the legal and binding effect of this Release.

 

5

 

IN WITNESS WHEREOF, the Parties have executed this Release on the respective dates set forth below.

 

	
 
    	
EMPLOYEE
    
	
 
    	
 
    
	
 
    	
 
    
	
Dated:   April 27, 2017
    	
/s/   David J. Castagnola
    
	
 
    	
David J. Castagnola

 
    
	
 
    	
 
    
	
 
    	
COMPANY
    
	
 
    	
 
    
	
 
    	
 
    
	
Dated:   April 27, 2017
    	
By:
    	
/s/   John Holland
    
	
 
    	
 
    	
Name:   John Holland
    
	
 
    	
 
    	
Title:   Executive Vice President and Chief Legal Officer

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