Document:

Exhibit 10.4

 

INDEPENDENT CONTRACTOR AGREEMENT

LMI AEROSPACE, INC.

This Independent Contractor Agreement (“Agreement”) is made and entered into as of October 31, 2013, by and between LMI Aerospace, Inc., a Missouri corporation (“Company”), and Henry H. Newell (“Contractor”).

For and in consideration of the mutual promises herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.    Consulting Services; Statements of Work.

 

1.1.     Contractor shall provide to Company such consulting services (“Services”) as are described in the Statement of Work (“SOW”) entered into between Contractor and Company, which is incorporated herein by this reference as Exhibit A.  Contractor will provide the Services set forth in the SOW on the terms and subject to the conditions set forth in this Agreement and in the SOW.

 

1.2.     Except as may be set forth in the SOW, Contractor is not required to provide Services for any set number of hours, at any specific location, in any particular sequence, or to provide such services full-time on behalf of the Company.

 

1.3.     The SOW may be amended from time to time by mutual written consent of the parties.  If a term in the SOW conflicts with a term in this Agreement, the provisions of this Agreement will prevail unless the SOW specifically states that the term in the SOW will prevail.

 

2.    Term and Termination.

 

2.1.     This Agreement shall become effective as of November 1, 2013 (“Effective Date”) and shall continue in full force and effect until April 30, 2014 (“Termination Date”), unless sooner terminated as hereinafter provided.

 

2.2.     Company may terminate this Agreement for its convenience, without cause, at any time without further liability, charge or expense, upon at least thirty (30) calendar days prior written notice; provided, however, that if the Company terminates this Agreement without cause, it shall remain liable for any Expenses incurred by the Contractor prior to termination in accordance with the SOW. The fee set forth in the SOW is fully earned as of the date hereof and is non-refundable in the event of a termination hereunder.

 

2.3.     Reimbursement of all extraordinary costs and expenses incurred outside of the Agreement terms and conditions will be agreed upon by Contractor and Company in writing prior to their incurrence.

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3.    Compensation and Expenses; Payment Dates.

 

3.1.     Company shall pay Contractor for Services provided under this Agreement as set forth in the SOW.

 

3.2.     No fees for additional Services shall be due unless such Services and fees are agreed to in writing by Company prior to Contractor’s performance thereof.

 

3.3.     Unless otherwise set forth in the SOW, Contractor shall be responsible for any expenses expended by Contractor in fulfilling Contractor’s obligations under this Agreement and under the SOW and Company shall have no duty to reimburse Contractor for any expenses.

 

4.    Mutual Representations and Warranties.  Each party represents and warrants to the other party the following:  (a) the party’s execution, delivery and performance of this Agreement:  (i) have been authorized by all necessary corporate or other applicable action, (ii) do not violate the terms of any law, regulation, or court order to which such party is subject or the terms of any material agreement to which the party may be subject and (iii) are not subject to the consent or approval of any third party; (b) this Agreement is the valid and binding obligation of the representing party, enforceable against such party in accordance with its terms; and (c) such party is not subject to any pending or threatened litigation or governmental action which could interfere with such party's performance of its obligations hereunder.

 

5.    Contractor Representations and Warranties. Contractor represents and warrants that all information provided by Contractor shall be true and correct to the best of Contractor’s knowledge.

 

6.    Warranty and Indemnification.  The services provided hereunder are on an "as is" basis and Contractor shall have no liability to Company, except as set forth herein,  in connection with the services provided hereunder. Company shall indemnify, defend, and hold harmless Contractor, his successors and permitted assigns for all claims related to the Services performed hereunder including Company's reliance on the same. Notwithstanding the foregoing, Contractor shall indemnify, defend, and hold harmless Company, its affiliates, shareholders, members, officers and employees, from and against any and all claims or legal actions of whatever kind or nature and all related losses, expenses, damages, costs and liabilities, including reasonable attorneys' fees and expenses incurred in investigation, defense or settlement (“Damages”), which arise out of, are alleged to arise out of, or relate to any grossly negligent act or omission, intentionally false statement or other willful misconduct on the part of Contractor.

 

7.    Independent Contractor Status.  Company and Contractor agree that the services of Contractor utilized pursuant to this Agreement shall be deemed those of an independent contractor and not those of an employee.  The Contractor shall not be viewed as, or deemed, an employee of the Company for any purpose, including any benefits offered by the Company to employees.

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8.    Work for Hire.  Contractor agrees that each written work, data compilation and other “work of authorship” (as that term is defined in the United States Copyright Act, 17 U.S.C. Section 102) created by Contractor pursuant to this Agreement or the SOW or using Confidential Information of Company or its affiliates shall be deemed to be a “work made for hire” (as that term is defined in the United States Copyright Act, 17 U.S.C. Section 101) for Company.  Contractor hereby agrees to disclose to, and hereby assigns to, Company all of its all rights in and to (i) any ideas, inventions, discoveries, processes, trademarks, trade dress and trade secrets, whether or not patentable, copyrightable, reduced to writing or based on or inclusive of Confidential Information and (ii) any work of authorship not deemed to be a work for hire (collectively, “Work Products”) that Contractor creates or conceives, in whole or in part, during the course of performing any obligations under this agreement.  Contractor agrees to execute any and all applications for domestic and foreign patents, copyrights or other proprietary rights and to do such other acts (including without limitation execution and delivery of instruments of further assurance or confirmation) requested by Company to assign any Work Product to Company and to permit Company to enforce any patents, copyrights or other proprietary rights to any Work Product.  Contractor will not charge Company for time spent in complying with these obligations.  For purposes of this Section 8, “Confidential Information” shall have the meaning set forth in the Nondisclosure Agreement (as defined in Section 10).

 

9.    Miscellaneous.  The laws of the State of Missouri shall govern this Agreement without regard to any laws relating to conflicts of laws.  The parties hereto agree that any suit filed arising out of or in connection with this Agreement shall be brought only in the United States District Court for the Eastern District of Missouri, unless that court lacks jurisdiction, in which case such action shall be brought only in the Circuit Court for St. Charles County, Missouri.  This Agreement constitutes the entire agreement of the parties and supersedes and nullifies any prior oral or written agreements with respect to the subject matter hereof.  This Agreement may not be assigned, amended, or otherwise modified except in writing signed by each of the parties except that Company may assign its interest hereunder to an affiliate without the consent of Contractor.  If any provision, in whole or in part, is held invalid, that provision or specific part of the provision shall be deemed severed from this Agreement and shall not invalidate the remainder of this Agreement or that provision.  Notice to any party under this Agreement shall be deemed delivered upon receipt by such party at the notice address for such party set forth herein.

 

10.    Confidentiality.  Contractor and Company acknowledge that they have entered into and executed that certain Nondisclosure Agreement dated October 31, 2013, which is incorporated herein by this reference as Exhibit B.  For clarity, disclosure of this Agreement by Company, as required by law, to auditors, tax and financial advisors, insurers, lenders, the Securities and Exchange Commission, or other governmental entities shall not be deemed a breach of confidentiality.

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IN WITNESS WHEREOF, the Company and Contractor have executed this Agreement as of the day and year first above written.

 

	
LMI AEROSPACE, INC.

		
HENRY H. NEWELL

	
	
 

	
 

		
 

	
 

	
	
By:

	
/s/ Lawrence E. Dickinson

		
By:

	
/s/  Henry H. Newell

	
	
Name:

	
Lawrence E. Dickinson

		
Name:

	
Henry H. Newell

	
	
Title:

	
CFO  

		
Title:

	
 

	
	
 

	
 

		
 

	
 

	
	
Address for notices:

		
Address for notices:

	
	
LMI Aerospace, Inc

		
Henry H. Newell

	
	
Attn: General Counsel

		
800 W. Meyer Blvd.

	
	
P.O. Box 900

		
Kansas City, MO 64113

	
	
St. Charles, MO 63302-0900

		
 

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Exhibit A

STATEMENT OF WORK

In accordance with the Independent Contractor Agreement (“Agreement”) dated October 31, 2013 between Henry H. Newell ("Contractor") and LMI Aerospace, Inc. (“Company”), Company engages Contractor to provide, and Contractor agrees to provide, the following Services under this SOW:

		1.	Contractor Services

		a.	General Description of Services to be performed by Contractor for Company:  Contractor shall provide, at all time to the best of his knowledge and ability, information, interpretations, advice, assessments and general consulting services to Company, as and when requested by Company, regarding the: strategy, operations, financial performance, customers, suppliers, contractual commitments, employees, historical data, metrics and any other similar information pertaining to Valent Aerostructures, LLC and its subsidiaries (“Valent”).

		b.	Communication:  Contractor shall report directly to Ed Dickinson and shall interface with members of Company’s Executive Steering Team (EST) as needed.  Contractor shall not consult with, contact, respond to contact from or otherwise engage with any other employees of Company or any of its subsidiaries or affiliates, including Valent, without the prior consent of Company unless such communication is limited to personal, non-business related matters.

		c.	Locations:  Contractor will perform Services at their individual residences or office locations.  Services will be conducted via offsite meetings with Company personnel, telephone conversations; email and other electronic correspondence. At no time shall Contractor perform any work at any Company or Valent owned or leased office or plant location unless specifically authorized in writing by Company.

		d.	Time:  Contractor will not be required to work a specified number of hours per week, however Contractor shall respond promptly to all reasonable Company requests for assistance on any matter under the scope of this SOW.

 

		2.	Company Responsibilities

		a.	Access to Company Information:  Company will provide access to employees, business plans, marketing plans, strategic plans, metrics, program reviews and other materials as necessary, subject to the terms of the Agreement and the approval of Ed Dickinson.

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		3.	Compensation

		a.	Fees:   Company will pay Contractor a flat, lump sum fee of $100,000 payable in full on the Effective Date for performance of the Services hereunder.  This fee will be reported on IRS Form 1099.

		b.	Travel, Accommodations and Other Expenses:  Travel, accommodations, and other expenses (“Expenses”) are not anticipated under this SOW.  Any Expenses incurred in the provision of Services will be at Contractor’s expense.

 

		4.	Additional Terms and Conditions:

		a.	Specified Personnel:  The Services provided for hereunder shall be performed exclusively by Henry H. Newell.

 

	
Accepted and Agreed:

		
Accepted and Agreed:

				
Company:

	
LMI AEROSPACE, INC.

	
By:

	
/s/ Henry H. Newell

		
By:

	
/s/  Lawrence E. Dickinson

	
Print Name:

	
Henry H. Newell

		
Print Name:

	
Lawrence E. Dickinson

				
Title:

	
CFO

	
Date:

	
10/31/2013

		
Date:

	
10/31/2013

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Exhibit B

Nondisclosure Agreement

See attached

 

 

-7-Exhibit 10.5

 

RESIGNATION AGREEMENT AND GENERAL RELEASE

This Resignation Agreement and General Release (“Agreement”) is made and entered into this 31st day of October, 2013,  by and between Charles M. Newell (“Mr. Newell”) and LMI Aerospace, Inc., including its wholly-owned subsidiaries and affiliates, (“LMI”), each a “Party” and collectively “the Parties”.

RECITALS

WHEREAS, Mr. Newell was employed by LMI as a Co-President of its Aerostructures Division under the terms of an Employment Agreement (“Employment Agreement”) which became effective January 1, 2013;

WHEREAS, Mr. Newell has submitted his resignation effective October 31, 2013;

WHEREAS, the Parties desire that Mr. Newell’s resignation and separation be affected in a positive and constructive manner, without any disagreements or disputes;

WHEREAS, the Parties have agreed on a settlement covering the terms of Mr. Newell’s resignation and separation from employment from LMI; and

WHEREAS, the Parties desire to reduce their settlement agreement to writing.

TERMS

NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements herein contained, the adequacy and sufficiency of which are hereby acknowledged and confessed, the undersigned Parties do hereby promise, covenant and agree as follows:

1.            Resignation Date.  Mr. Newell’s resignation from LMI and all positions Mr. Newell holds or has held with LMI or any of its subsidiaries or affiliates is effective October 31, 2013 (“Resignation Date”).

2.            Compensation and Benefits.  Except for the payments described in this Agreement, Mr. Newell acknowledges that he has received all compensation and employee benefits to which he is otherwise entitled and that all other pay and benefits shall cease as of the Resignation Date.

a.      Salary Compensation through the Resignation Date.  Regardless of whether Mr. Newell executes this Agreement and to the extent that Mr. Newell has not already received payment, LMI shall ensure to Mr. Newell the payment of all: (i) all unpaid base compensation to which he is otherwise entitled at his current rate and status (“Base Salary”) as of the Resignation Date, for all time worked through the Resignation Date.

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b.      Bonus.  LMI shall pay to Mr. Newell a bonus of Six Hundred Sixteen Thousand Dollars $616,000 (“Bonus Payment”), which shall not be considered, for any purpose, a Performance Bonus.  The compensation described in this section 2, is in full accord and satisfaction and inclusive of, any bonus, commission, or other incentive pay due to Mr. Newell for employment up to and including the Resignation Date.  The Bonus Payment will be paid in a lump sum amount, less any required withholdings, to an escrow agent on the Resignation Date. .  Except as explicitly provided for in this Agreement, Mr. Newell shall have no right to any further payments by LMI, including payment of bonuses, commissions, deferred compensation, or any other incentive payments including any Performance Bonus or Annual Profit Sharing Bonus.

 

c.      Severance.  Pursuant to the terms of his Employment Agreement, Mr. Newell will be entitled to the total gross amount of One Hundred Seventy Five Thousand Dollars ($175,000.00) (“Resignation Payment”) on the date which is six (6) months and one (1) day after the Resignation Date or, if earlier, the date of Mr. Newell’s death (the “Payment Date”).  The Resignation Payment will be provided in a lump sum amount, less any required withholdings, to an escrow agent on the Resignation Date.  Ordinary payroll deductions, including but not limited to federal and state income taxes and social security withholding, shall be made from the Resignation Payment.

d.      Escrow.  The amounts set forth in (b) and (c) above shall be held in escrow, in separate accounts, by an agent of Mr. Newell’s choosing.  The amount in (b) shall be released only after expiration of the revocation period identified in Section 4 (f) of this Agreement having occurred and without Mr. Newell having revoked this Agreement. The amount in (c) shall be released on the Payment Date, as required by Internal Revenue Code, section 409 (a).

3.             Releases.

a.      In consideration of the stipulations and covenants made hereunder and the release provided herein by Mr. Newell in addition to other consideration, the receipt and sufficiency of which is hereby acknowledged, LMI, with the intent of binding itself, its  affiliates, subsidiaries and other related companies, including, without limitation, each of their executive officers and directors (the “LMI Releasing Parties”), hereby releases and forever discharges Mr. Newell and his successors, heirs, assigns, attorneys, and family members, from and against any and all liabilities, claims, grievances, demands, charges, actions and causes of action whatsoever, including but not limited to, any and all claims, which an LMI Releasing Party had, now has, or may hereafter have, whether known or unknown, absolute or contingent, asserted or unasserted, at law or in equity, arising out of any event, action or omission, as well as those consequences thereof that may hereafter develop and those that have already developed or are now apparent (the “Released LMI Claims”). Notwithstanding the foregoing, nothing in this Agreement will release or discharge any Released LMI Claim: (a) under or pursuant to the Membership Interest Purchase Agreement among LMI Aerospace, Inc. Valent Aerostructures, LLC and Its Members, dated December 5, 2012; (b) under or pursuant to the Escrow Agreement dated as of December 28, 2012 or the escrowed funds thereunder; (c) under or pursuant to this Agreement, the Independent Contractor Agreement, the Mutual Release and Settlement Agreement, Mutual Non-Disclosure Agreement or Amendment to Escrow Agreement each dated as of the date hereof between the Parties; or (d) otherwise involving fraud or willful misconduct occurring after the Effective Date of this Agreement.

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b.      In consideration of the payments and other benefits provided by this Agreement and the stipulations and covenants made hereunder, Mr. Newell, with the intent of binding himself and his successors, heirs, assigns, attorneys, and family members (the “Newell Releasing Parties”), hereby releases and forever discharges LMI, and its affiliates, subsidiaries and other related companies, including, without limitation, each of their officers, shareholders, partners, directors, agents, representatives, attorneys and employees (the “Released Parties”) from and against any and all liabilities, claims, grievances, demands, charges, actions and causes of action whatsoever, including but not limited to, any and all claims, which any Newell Releasing Party had, now has, or may hereafter have, whether known or unknown, absolute or contingent, asserted or unasserted, at law or in equity, arising out of any event, action or omission, as well as those consequences thereof that may hereafter develop and those that have already developed or are now apparent (the “Released Newell Claims”). The Released Newell Claims include, without limitation, any and all claims arising out of or pursuant to the Age Discrimination in Employment Act of 1967 as amended, 29 U.S.C. § 621 et seq.; Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e et seq.; the Civil Rights Act of 1991, 42 U.S.C. § 1981(a) et seq.; the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq.; the Missouri Human Rights Act, Mo. Rev. Stat. § 213.010 et seq.; the Missouri Service Letter Statute Mo. Rev. Stat. § 290.140; and any and all other statutes or ordinances, and any and all claims arising under or pursuant to common law or contract.  Notwithstanding the foregoing, nothing in this Agreement will release or discharge any Released Newell Claim (a) with respect to Mr. Newell’s rights as Seller’s Representative under or pursuant to the Membership Interest Purchase Agreement among LMI Aerospace, Inc. Valent Aerostructures, LLC and Its Members, dated December 5, 2012, (b) under or pursuant to the Escrow Agreement dated as of December 28, 2012 or the escrowed funds thereunder, (c) the continuing ownership of any shares of stock of LMI, provided such Claim(s) arise out of or relate to actions occurring after the Effective Date of this Agreement., (d) under or pursuant to this Agreement, the Independent Contractor Agreement, with respect to Mr. Newell’s rights as Seller’s Representative under or pursuant to the Mutual Release and Settlement Agreement, Mutual Non-Disclosure Agreement. or Amendment to Escrow Agreement each dated as of the date hereof between the Parties or (e) otherwise involving fraud or willful misconduct occurring after the Effective Date of this Agreement.

 

c.      The Parties expressly waive the benefit of any statute or rule of law which, if applied to this Agreement, would otherwise exclude from its binding effect any claims not known by such Party to exist.

 

d.      The Parties promise never to file any lawsuit or initiate any other legal action based on a claim purportedly released by this Agreement, and will withdraw with prejudice any such lawsuit or other legal action that may already be pending.

 

e.      Mr. Newell promises never to seek or accept any damages, remedies, or other relief for himself personally (any right to which he hereby waives) by prosecuting an administrative charge, or otherwise, with respect to any claim purportedly released by this Agreement.

 

f.      Mr. Newell represents that no Released Newell Claims are pending in any court, administrative agency, commission or other forum relating directly or indirectly to his employment by LMI.  LMI represents that no Released LMI Claims are pending in any court, administrative agency, commission or other forum relating directly or indirectly to his employment by LMI.

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g.      Mr. Newell understands that he is releasing claims that he may not know about at this time and that is his intent.

 

h.      Notwithstanding the foregoing, nothing in this Agreement shall:

 

(i)            Interfere with Mr. Newell’s right to file a charge with the Equal Employment Opportunity Commission (“EEOC”), or participate in an EEOC proceeding or to engage in any activity or make any filing or claim that may be made or permitted under federal or state law and that cannot be waived by this Agreement. However, Mr. Newell agrees to waive any right to recover or accept any money damages or personal relief upon the filing of any such administrative or judicial charges or complaints by Mr. Newell or by anyone else on his behalf.

(ii)            Interfere with Mr. Newell’s right to challenge the validity, enforceability, or knowing and voluntary nature, of this release under the Age Discrimination in Employment Act of 1967 (“ADEA”).

i.      If any person brings any claim contrary to the above releases and waivers of claims provided in Sections 4 (a) and (f) (except for any action brought pursuant to Section 2 (h)(ii) to challenge the validity, enforceability, or knowing and voluntary nature of the general release provided in Section 2 (a) and (f).  pursuant to the ADEA or any charge of discrimination filed with the EEOC), then any party, including any Released Party(ies), who are defendant to that action shall be entitled to reimbursement from the party(ies) who brought such claim or action for costs and attorneys’ fees incurred in defense of that claim.

j.      This Release does not discharge the Parties from obligations they have under this Agreement.  Mr. Newell also waives any rights to, or to be considered for, future employment with LMI.

 

4.            Provisions Relating to ADEA Release.  Mr. Newell understands that the foregoing general release of claims also releases any claims that Mr. Newell may have against any Released Party under the Age Discrimination in Employment Act of 1967.  Mr. Newell represents that he is aware, understands and agree that:

 

a.      The claims released in Sections 2 (a) and (f) above includes all claims he has or may have arising out of or related to the Age Discrimination in Employment Act (the “ADEA”).

 

b.      Those claims waived, released and discharged in Sections 2 (a) and (f) above do not include any claims that may arise after the Date of this Agreement;

 

c.      The Resignation Payment provided pursuant to Section 3 provides consideration that Mr. Newell was not entitled to receive before signing this Agreement;

 

d.      Mr. Newell has at least twenty-one (21) days within which to consider this Agreement, which period commenced on October 31, 2013;

 

e.      Mr. Newell is advised to consult with an attorney regarding, and before signing, this Agreement;

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f.      Mr. Newell may revoke this Agreement at any time within seven (7) days after the day he signs it, and this document will not become effective or enforceable and no payments or benefits under this Agreement will be payable until at least the eighth day after the Date of this Agreement, on which day (the “Effective Date”), this Agreement will automatically become effective and enforceable unless revoked within that seven-day period.  Should Mr. Newell decide to revoke this Agreement, notice must be hand-delivered via courier to the Executive Legal Director of the Company at 411 Fountain Lakes Blvd. St. Charles, MO 63301 no later than close of business on the seventh (7th) day after execution of this Agreement; and

 

g.      This Agreement is not being provided in connection with a uniform or standard group employment termination or exit incentive program.

 

5.             Continuation of Obligations.

a.      As a party to an Employment Agreement with LMI, Mr. Newell has certain continuing obligations to LMI including specific obligations relating to non-disclosure, confidentiality and non-solicitation as specified in the Employment Agreement.

b.     The Parties agree that nothing in this Agreement alters the obligations of Mr. Newell in Section 7 of the Employment Agreement.  Accordingly, such provisions will continue in full force and effect regardless of any provision of this Agreement and regardless of whether Mr. Newell executes this document or not.

c.  To the extent that any other oral or written employment contract(s) previously existing between LMI or any of its subsidiaries or affiliates and Mr. Newell existed, they and the other obligations of all parties thereunder are hereby terminated and are of no further force or effect.

d.  Notwithstanding anything else in this Agreement, the Employment Agreement or any other agreement to which Mr. Newell and LMI are parties, Mr. Newell shall be permitted to hire as an employee or engage as a consultant, directly or indirectly, Deb Guse and/or Chip Newell at any time after the date which is 90 days from the date hereof.

6.            Return of LMI Property.  Mr. Newell hereby warrants that he has returned to the LMI all LMI property and documents in his possession and control including, but not limited to, LMI files and, notes, records, computer recorded information, tangible property, credit cards, entry cards, pagers, identification badges, and keys, and all other equipment and property issued by LMI to Mr. Newell, including, but not limited to, any materials of any kind which contain or embody any proprietary or confidential Information.  Notwithstanding the foregoing, LMI shall provide to Mr. Newell, and Mr. Newell shall be entitled to retain, a copy of his personal e-mail files and those relating to Tech Investments, LLC, provided such emails do not contain any LMI Confidential or Proprietary Information.

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7.            Confidentiality.  The Parties agree that the existence and terms of this Agreement are confidential.  Neither Party shall at any time, without the prior written authorization of the other Party, directly or indirectly, discuss with or disclose to anyone (other than to a spouse,  attorneys, financial advisors or auditors and or as otherwise required by law), the terms or existence of this Agreement. The provisions of this paragraph shall specifically include any disclosure of the existence of this Agreement, the amount of monetary payment, and all the terms of this Agreement.  It is expressly understood and agreed that any breach of this paragraph by shall constitute a material breach of this Agreement.  Notwithstanding the foregoing, Mr. Newell acknowledges his understanding that federal securities law may require that the terms of this Agreement be disclosed by LMI and such disclosure shall not in any way be deemed to be a breach under this Section.

8.           No Assignment.  Each of Mr. Newell and LMI represents and warrants to the other party that that he or it has not sold, assigned, transferred, conveyed or otherwise disposed of to any third party by operation of law or otherwise, any liabilities, claims, grievances, demands, actions or causes of action of any nature relating to the matter covered by this Agreement.

9.            Non-Disparagement.  Each Party shall refrain from making any derogatory, disparaging or negative comments, written or oral and whether true or untrue, about the other, or any of the Released Parties, to the press, to present or former employees, customers, or suppliers, to any individual or entity with whom or which either Party has a current or prospective business relationship, or to anyone else which could adversely affect the conduct of the other Party’s business or reputation; provided, however, that solely for purposes of this Section 10, the term “Party” shall when referring to LMI mean the directors and executive officers of LMI.  Nothing in this paragraph prohibits either Party from complying with a court order or lawful subpoena that such Party has not caused to be issued.

10.         Choice of Law and Venue.  The Parties agree that this Agreement shall be construed pursuant to the laws of the State of Missouri.  The Parties further agree that any dispute related to this Agreement or its application, interpretation or enforcement shall be resolved only in the United States District Court for the Eastern District of Missouri, or in the Circuit Court of St. Charles County, Missouri.

11.         Non-Admission.  Both Parties to this Agreement agree that its existence and payments are not an admission of any wrongdoing, unlawful conduct or liability by either Party and both Parties agree not to assert that this Agreement is an admission of wrongdoing or liability.  The Parties agree that this Agreement is a compromise and settlement of claims.

12.         Construction; Costs and Attorneys’ Fees for Enforcement by LMI.  The Parties agree that each Party shall bear its own costs and attorneys’ fees incurred in any way with respect to the subject of this Agreement.  The Parties further agree that this Agreement shall not be construed so as to render any Party as the prevailing Party for purposes of any statute or otherwise.  Should a Party take any action to enforce any term or condition of this Agreement against any breach or threatened breach by the other Party, then the non-prevailing Party in any such action agrees that he or it will pay all costs and expenses associated with such action of the prevailing Party, including reasonable attorneys’ fees and related costs and expenses.

13.          Acceptance.  Mr. Newell acknowledges that he has been given twenty one (21) days from the date he receives this Agreement to consider, sign and accept it.  Mr. Newell further acknowledges and agrees that this period constitutes a reasonable amount of time during which to consider this Agreement.

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14.         No Other Inducement.  Mr. Newell represents and warrants that no promise or inducement has been offered or made except as set forth herein and that this Agreement is executed without reliance upon any statement or representation by LMI or any person acting on its behalf.

15.         Severability.In the event that any provision of this Agreement becomes or is declared by a Court of competent jurisdiction to be illegal, unenforceable, or void, this Agreement shall continue in full force and effect without said provision.

16.         Entire Agreement.  This Agreement and the Employment Agreement constitute the full and complete agreement between Mr. Newell and LMI with respect to the subject matter hereof.  No other agreement whether oral or written shall be construed to alter the terms of this Agreement.  Mr. Newell expressly acknowledges that paragraphs 7, 8, 9, 10 and 17 of the Employment Agreement, which survive the termination of his employment with LMI, remain in full force and effect.

IN WITNESS WHEREOF, the Parties hereby execute this Agreement as of the date written below.

	
Charles M. Newell

		
 

	
LMI Aerospace, Inc.

	
	
 

		
 

	
 

	
	
/s/  Charles M. Newell

		
By

	
 /s/  Lawrence E. Dickinson

	
	
 

		
 

	
 

	
	
Date: 10/31/2013

		
Date: 10/31/2013

	

 

 

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