Document:

exv10w5

 

Exhibit 10.5

RESTRICTED STOCK AWARD AGREEMENT

pursuant to the

2007 PERFORMANCE AND EQUITY INCENTIVE PLAN

of

DELTA PETROLEUM CORPORATION

     This Agreement, effective as of February 9, 2007 (“Date of Grant”), is between Delta Petroleum
Corporation, a Delaware corporation (the “Company”) and the undersigned participant (the
“Participant”) who is an officer of the Company.

     WHEREAS, the Board has adopted, and the stockholders have approved, the 2007 Performance and
Equity Incentive Plan of Delta Petroleum Corporation (the “Plan”), all terms defined in the Plan
will have the same meanings in this Agreement unless otherwise defined herein; a copy of the Plan
has been delivered to Participant contemporaneously herewith;

     WHEREAS, the Plan provides for the granting of restricted stock awards to eligible
participants as determined by a Committee of the Board of Directors consisting of two or more
persons, each of whom shall be a “non-employee director” within the meaning of Rule 16b-3(b)(3)
promulgated under Section 16 of the Securities Exchange Act; and

     WHEREAS, the Committee has determined that Participant is a person eligible to receive a
restricted stock award under the Plan and has determined that it would be in the best interest of
the Company to grant the restricted stock award provided for herein (the “Award”).

     NOW, THEREFORE, in consideration of the Participant’s service to the Company and the mutual
promises made herein and the mutual benefits derived therefrom, the parties agree as follows:

     1. Summary of Terms. The following is a summary of the terms of the Award:

	 	 	 
	Name of Participant:

	 	Ted Freedman
	 
	 	 
	Number of Shares:

	 	240,000 shares of the Company’s Common Stock (“Common Stock”), subject to
vesting in tranches as set forth below (the “Award Shares”).
	 
	 	 
	Issue Date:

	 	The Award Shares shall be issued on the date first set forth above.
	 
	 	 
	Vesting Schedule:

	 	(a) 40,000 of the Award Shares (the “Tranche 1 Award Shares”) shall become
vested in full as of the date that the average daily closing price of the Common Stock
on the principal United States securities exchange or trading market on which the
Common Stock is traded (the “Applicable Market”) equals or exceeds $40.00 for trading
days within any period of 90 calendar days during the Term

 

 

	 	 	 
	 

	 	(as defined in Section 3), provided that the average closing
price over the last 20 trading days of such period shall have
equaled or exceeded $40.00.
	 
	 	 
	 

	 	(b) 40,000 of the Award Shares (the “Tranche 2 Award Shares”)
shall become vested in full as of the date that the average
daily closing price of the Common Stock on the Applicable
Market equals or exceeds $50.00 for trading days within any
period of 90 calendar days during the Term, provided that the
average closing price over the last 20 trading days of such
period shall have equaled or exceeded $50.00 and provided,
further that the Tranche 2 Award Shares shall not vest unless
the foregoing vesting criteria are met at least 365 days
after the date the Tranche 1 Award Shares vested.
	 
	 	 
	 

	 	(c) 40,000 of the Award Shares (the “Tranche 3 Award Shares”)
shall become vested in full as of the date that the average
daily closing price of the Common Stock on the Applicable
Market equals or exceeds $60.00 for trading days within any
period of 90 calendar days during the Term, provided that the
average closing price over the last 20 trading days of such
period shall have equaled or exceeded $60.00 and provided,
further that the Tranche 3 Award Shares shall not vest unless
the foregoing vesting criteria are met at least 365 days
after the date the Tranche 2 Award Shares vested.
	 
	 	 
	 

	 	(d) 60,000 of the Award Shares (the “Tranche 4 Award Shares”)
shall become vested in full as of the date that the average
daily closing price of the Common Stock on the Applicable
Market equals or exceeds $75.00 for trading days within any
period of 90 calendar days during the Term, provided that the
average closing price over the last 20 trading days of such
period shall have equaled or exceeded $75.00 and provided,
further that the Tranche 4 Award Shares shall not vest unless
the foregoing vesting criteria are met at least 365 days
after the date the Tranche 3 Award Shares vested.
	 
	 	 
	 

	 	(e) 60,000 of the Award Shares (the “Tranche 5 Award Shares”)
shall become vested in full as of the date that the average
daily closing price of the Common Stock on the Applicable
Market equals or exceeds $90.00 for trading days within any
period of 90 calendar days during the Term, provided that the
average closing price over the last 20 trading days of such
period shall have equaled or

-2-

 

	 	 	 
	 

	 	exceeded $90.00 and provided, further that the Tranche 5
Award Shares shall not vest unless the foregoing vesting
criteria are met at least 365 days after the date the Tranche
4 Award Shares vested.
	 
	 	 
	 

	 	(f) Notwithstanding the foregoing and without regard to any
time frames contemplated above, immediately prior to a Change
in Control, the Award Shares then available for vesting shall
vest to the extent that the Fair Market Value of a share of
Common Stock equals or exceeds the relevant vesting threshold
contemplated in subsections (a) through (e) above and, to the
extent that such Fair Market Value of a share of Common Stock
is greater than one vesting threshold but less than the next
vesting threshold, the number of Award Shares in the next
vesting segment will vest according to the following formula: (i) Total shares of Common Stock in such segment, multiplied
by (ii) (A) the acquisition price per share of Common Stock
less (B) the prior vesting threshold, divided by (iii) the
difference between the two applicable price thresholds.

     2. Award of Award Shares. Subject to the terms and conditions of the Plan and this
Agreement, the Company grants to the Participant the Award Shares under the Plan to be issued on
the date first set forth above.

     3. Term; Termination of Award Shares. All Award Shares not vested on or before the
10th anniversary of the Issue Date (“Term”) shall be forfeited and Participant shall
have no further rights with respect thereto, unless earlier forfeited as follows:

          (a) Termination as Employee. If Participant ceases for any reason to be an employee
of the Company (whether due to resignation, death, disability, termination for cause, termination
without cause, or otherwise; such date of termination, the “Service Termination Date”)), the
unvested Award Shares shall be forfeited immediately upon such Service Termination Date and the
Participant shall have no further rights with respect thereto.

          (b) Termination of Tranche 4 and 5 Award Shares. The Tranche 4 and 5 Award Shares
shall be forfeited immediately in the event that the Tranche 1 Award Shares have not vested on or
before March 31, 2008, and the Participant shall have no further rights with respect thereto.

          (c) Termination of Tranche 2 and 3 Award Shares. The Tranche 2 and 3 Award Shares
shall be forfeited immediately in the event that the Tranche 1 Shares have not vested on or before
March 31, 2009, and the Participant shall have no further rights with respect thereto.

-3-

 

     4. Withholding Taxes; Excise Taxes.

          (a) The Company shall have the right to deduct from the Award Shares paid any federal, state,
local, or employment taxes which it deems are required by law to be withheld with respect to such
payments. The Participant receiving Award Shares pursuant to the Award may be required to pay to
the Company an amount required to be withheld with respect to the vesting of the Award Shares. At
the request of the Participant, or as required by law, such sums as may be required for the payment
of any estimated or accrued income tax liability may be withheld and paid over to the governmental
entity entitled to receive the same. Notwithstanding the foregoing, the Company may establish
procedures to permit a recipient to satisfy such obligation, if any, in whole or in part, and any
other local, state or federal income tax obligations relating to such Award, by electing (the
“Election”) to pay to the Company the amount of any such obligation (i) in cash or by certified or
bank cashier’s check or by personal check (subject to collection); (ii) by delivery (by either
actual delivery or attestation) of shares of Common Stock owned by the participant at the time of
exercise for a period of at least six months and otherwise acceptable to the Committee, provided
that no securities may be surrendered in payment of such obligation if such action would cause the
Company to recognize compensation expense (or additional compensation expense) with respect to this
Award for financial reporting purposes; or (iii) a combination of the foregoing methods. The value
of shares tendered in payment of such obligation shall be the Fair Market Value of the Company’s
Common Stock on the date that such shares are tendered to the Company, and the number of shares to
be tendered shall, when aggregated with the value of any other permitted form of payment provided
by the Participant, approximate as nearly as possible (but not exceed) the amount of such
obligation being satisfied. Each Election must be made in writing to the Committee in accordance
with election procedures established by the Committee.

          (b) To the extent a Participant and the Company have entered into a Change in Control
Executive Severance Agreement (“CIC Agreement”), then to the extent receipt or vesting of any Award
Shares hereunder would be subject to the Excise Taxes (as defined in the CIC Agreement), then the
Participant shall receive a Gross-Up Payment (as defined in the CIC Agreement) and all other
applicable benefits under Section 14 of the CIC Agreement in respect of such Excise Taxes.

     5. No Rights of a Stockholder. Except as set forth in the Plan, neither the
Participant nor any legal representative, legatee or heir shall have any rights or privileges of a
stockholder of the Company with respect to any Award Shares, in whole or in part, prior to the date
that the Award Shares vests.

     6. Non-Transferability of the Award.

          (a) During the Participant’s lifetime, the Participant shall not sell, transfer, assign,
pledge or otherwise encumber the Award Shares until all conditions to vesting have been met and the
shares have been vested.

          (b) This Award shall not be transferable other than by will or the laws of intestate
succession. The designation of a beneficiary does not constitute a transfer.

          (c) In the event of (i) any attempt by the Participant to alienate, assign, pledge,
hypothecate or otherwise dispose of the Award, except as provided for herein, or (ii) the

-4-

 

levy of any attachment, execution or similar process upon the rights or interests herein
conferred, the Company may terminate the Award by notice to the Participant and it shall thereafter
become null and void.

     7. Amendments and Termination. The Company may (a) amend, alter or discontinue the
Plan, (b) amend the terms of this Award prospectively or retroactively, or (c) substitute a new
Award for this Award, but no amendment, alteration, substitution or discontinuation shall be made
(except those specifically permitted under other provisions of this Agreement or the Plan) which
would impair the rights of the Participant under the Award without the Participant’s consent.

     8. Tax Treatment of this Award. The tax treatment of shares subject to this Award and
any events or transactions with respect thereto, may be dependent upon various factors or events
that are not determined by this Agreement. The Company makes no representation with respect to,
and disclaims all responsibility as to, such tax treatment. Participant acknowledges that he has
been advised and has had the opportunity to consult with his own tax advisor with respect to this
Agreement.

     9. Public Offering Restriction. In connection with any underwritten public offering
by the Company of its equity securities pursuant to an effective registration statement filed under
the Securities Act, the Participant shall not directly or indirectly sell, make any short sale of,
loan, hypothecate, pledge, offer, grant or sell any Award Shares or other contract for the purchase
of, purchase any option or other contract for the sale of, or otherwise dispose of or transfer, or
agree to engage in any of the foregoing transactions with respect to, any Award Shares without the
prior written consent of the Company and its underwriters. Such restriction shall be in effect for
such period of time following the date of the final prospectus for the offering as may be required
by the Company or its underwriters. In order to enforce the provisions of this Section, the
Company may impose stop transfer instructions with respect the Award Shares and/or may require the
Participant to deposit the Award Shares in escrow until the end of the applicable stand-off period.
The Company’s underwriters shall be beneficiaries of the agreement set forth in this Section, and,
if requested by the underwriters, the Participant agrees to execute the underwriters’ standard form
of lock-up agreement. This Section shall not apply to shares that are specifically included in
shares registered under the Securities Act.

     10. Legend. All certificates evidencing shares purchased under this Agreement while
the Participant is an “affiliate” of the Company (as such term is defined in Rule 144 promulgated
under the Securities Act of 1933), shall bear the following legend:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE “RESTRICTED
SECURITIES” AS DEFINED IN RULE 144 PROMULGATED UNDER THE SECURITIES ACT
OF 1933 (THE “ACT”). THE SECURITIES MAY NOT BE SOLD OR OFFERED FOR SALE
OR OTHERWISE DISTRIBUTED EXCEPT (i) IN COMPLIANCE WITH RULE 144, OR (ii)
PURSUANT TO AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
COMPLIANCE IS NOT REQUIRED AS TO SAID SALE, OFFER OR DISTRIBUTION.

-5-

 

     11. Notices. All notices under this Agreement shall be in writing and shall be deemed
delivered when personally delivered to the Secretary of the Company or to the Participant or upon
deposit of the same in the United States mail, first class postage prepaid, or upon delivery to a
recognized overnight delivery service addressed in the case of mail or delivery service to the
Secretary of the Company at the Company’s executive offices or to the Participant at Participant’s
current address as shown on the records of the Company.

     12. Interpretation of this Agreement. The Award is granted pursuant to the terms of
the Plan, which are incorporated herein by reference, and the Award and this Agreement shall in all
respects be interpreted in accordance with the Plan. The Committee shall interpret and construe
the Plan and this Agreement, and the Committee’s interpretations and determinations shall be
conclusive and binding on the parties hereto and any other person claiming an interest hereunder.

     13. Governing Law. The validity, interpretation and effect of this Agreement shall be
governed by and determined in accordance with the laws of the State of Colorado, without giving
effect to principles of conflict of laws.

     14. Preemption by Applicable Law or Regulations. Anything in this Agreement to the
contrary notwithstanding, if, at any time specified herein for the issuance of shares to the
Participant, any law, regulation, or requirements of any governmental authority having appropriate
jurisdiction shall require either the Company or the Participant to take any action prior to or in
connection with the shares of Common Stock then to be issued, sold, or repurchased, the issue,
sale, or repurchase of such shares of Common Stock shall be deferred until such action shall have
been taken.

     15. Resolution of Disputes. Any dispute or disagreement which shall arise under, or
as a result of, or pursuant to, this Agreement shall be determined by the Committee in its absolute
and uncontrolled discretion, and any such determination or any other determination by the Committee
under or pursuant to this Agreement and any interpretation by the Committee of the terms of this
Agreement shall be final, binding, and conclusive on all persons affected thereby.

     16. Construction. This Agreement has been entered into in accordance with the terms
of the Plan, and wherever a conflict may arise between the terms of this Agreement and the terms of
the Plan, the terms of the Plan shall control.

     17. Regulatory Compliance. No stock shall be issued hereunder until the Company has
received all necessary regulatory approvals and has taken all necessary steps to assure compliance
with federal and state securities laws or has determined to its satisfaction and the satisfaction
of its counsel that an exemption from the requirements of the federal and applicable state
securities laws are available.

[Signature page follows]

-6-

 

     IN WITNESS WHEREOF, this Agreement has been executed as of the date first set forth above.

	 	 	 	 	 	 	 
	 	 	DELTA PETROLEUM CORPORATION, a Delaware	 	 
	 	 	corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kevin K. Nanke	 	 
	 

	 	 	 	 

Kevin K. Nanke,
	 	 
	 

	 	 	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	PARTICIPANT:	 	 
	 
	 	 	 	 	 	 
	 	 	Ted Freedman	 	 
	 	 	 	 	 
	 	 	Name: Ted Freedman	 	 

-7-STRATTEC April 1, 2007 Form 10-Q

    Exhibit
      10.1

    

    EMPLOYMENT
      AGREEMENT

    

    

    THIS
      EMPLOYMENT AGREEMENT is made as of January 1, 2007, by and between STRATTEC
      SECURITY CORPORATION, a Wisconsin corporation (the "Company"), and Brian J.
      Reetz (the "Employee").

    

    RECITAL

    

    The
      Company desires to employ the Employee and the Employee is willing to make
      his
      services available to the Company on the terms and conditions set forth
      below.

    

    AGREEMENTS

    

    In
      consideration of the premises and the mutual agreements which follow, the
      parties agree as follows:

    

    1.  Employment.
      The
      Company hereby employs the Employee and the Employee hereby accepts employment
      with the Company on the terms and conditions set forth in this
      Agreement.

    

    2.  Term.
      The
      term of the Employee's employment hereunder shall commence effective on January
      1, 2007 and shall continue through June 30, 2007,
      and
      shall thereafter be automatically renewed for successive fiscal year terms
      unless either the Company or Employee gives notice of nonrenewal not less than
      30 days prior to the end of the then current term (the "Employment
      Period").

    

    3.  Duties.
      The
      Employee shall serve as the Vice President - Product Development and
      Management of
      the
      Company and will, under the direction of Vice President - Engineering and
      Product Development,
      faithfully
      and to the best of Employee's ability, perform the duties of the Vice President
      - Product Development and Management. The Vice President - Product Development
      and Management shall be one of the principal executive officers of the Company
      and shall, subject to the control of Vice President - Engineering and Product
      Development, supervise the Product Development and Management functions of
      the
      Company. The Employee shall also perform such additional duties and
      responsibilities which may from time to time be reasonably assigned or delegated
      by the Vice President - Engineering and Product Development of the Company.
      The
      Employee agrees to devote Employee's entire business time, effort, skill and
      attention to the proper discharge of such duties while employed by the Company.
      However, the Employee may engage in other business activities unrelated to,
      and
      not in conflict with, the business of the Company if the Vice President -
      Engineering and Product Development consents in writing to such other business
      activity.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.  Compensation.
      The
      Employee shall receive a base salary of $141,000 per year, payable in regular
      and semi-monthly installments (the "Base Salary"). Employee's Base Salary shall
      be reviewed annually by the Board of Directors of the Company to determine
      appropriate increases, if any, in such Base Salary.

    

    5.  Fringe
      Benefits.

    

    (a)  Medical,
      Health, Dental, Disability and Life Coverage.
      The
      Employee shall be eligible to participate in any medical, health, dental,
      disability and life insurance policy in effect for senior management of the
      Company (collectively, the "Senior Management").

    

    (b)  Incentive
      Bonus and Stock Ownership Plans.
      The
      Employee shall be entitled to participate in any incentive bonus or other
      incentive compensation plan developed generally for the Senior Management of
      the
      Company, on a basis consistent with Employee's position and level of
      compensation with the Company. The Employee shall also be entitled to
      participate in any incentive stock option plan or other stock ownership plan
      developed generally for the Senior Management of the Company, on a basis
      consistent with Employee's position and level of compensation with the
      Company.

    

    (c)  Reimbursement
      for Reasonable Business Expenses.
      Subject
      to the terms and conditions of the Company's expense reimbursement policy,
      the
      Company shall pay or reimburse the Employee for reasonable expenses incurred
      by
      Employee in connection with the performance of Employee's duties pursuant to
      this Agreement, including, but not limited to, travel expenses, expenses in
      connection with seminars, professional conventions or similar professional
      functions and other reasonable business expenses.

    

    6.  Termination
      of Employment.

    

    (a)  Termination
      for Cause, Disability or Death.
      During
      the term of this Agreement, the Company shall be entitled to terminate the
      Employee's employment at any time upon the "Disability" of the Employee or
      for
      "Cause" upon notice to the Employee. The Employee's employment hereunder shall
      automatically terminate upon the death of the Employee. For purposes of this
      Agreement, "Disability" shall mean a physical or mental sickness or any injury
      which renders the Employee incapable of performing the essential functions
      of
      Employee's job (with or without reasonable accommodations) and which does or
      may
      be expected to continue for more than 4 months during any 12-month period.
      In
      the event Employee shall be able to perform the essential functions of
      Employee's job (with or without reasonable accommodations) following a period
      of
      disability, and does so perform such duties, or such other duties as are
      prescribed by the President of the Company, for a period of three continuous
      months, any subsequent period of disability shall be regarded as a new period
      of
      disability for purposes of this Agreement. The Company and the Employee shall
      determine the existence of a Disability and the date upon which it occurred.
      In
      the event of a dispute regarding whether or when a Disability occurred, the
      matter shall be referred to a medical doctor selected by the Company and the
      Employee. In the event of their failure to agree upon such a medical doctor,
      the
      Company and the Employee shall each select a medical doctor who together shall
      select a third medical doctor who shall make the determination. Such
      determination shall be conclusive and binding upon the parties
      hereto.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

                       The
      Company may terminate
      the Employee's employment under this Agreement
      for "Cause," effective immediately upon delivery of notice to the Employee.
      Cause shall be deemed to exist if the Employee shall have (1) materially
      breached the terms of this Agreement; (2) willfully failed to substantially
      perform his duties, other than a failure resulting from incapacity due to
      physical or mental illness; or (3) serious misconduct which is demonstrably
      and substantially injurious to the Company. No act or failure to act will be
      considered "cause" if such act or failure is done in good faith and with a
      reasonable belief that it is in the best interests of the Company. 

     

                      
In
      the event of termination for
      Disability or death, payments of the Employee's Base Salary shall be made to
      the
      Employee, his designated beneficiary or Employee's estate for a period of six
      months after the date of the termination (even if this period would extend
      beyond the Employment Period); provided, however that the foregoing payments
      in
      the event of a Disability shall be reduced by the amount, if any, that is paid
      to Employee pursuant to a disability plan or policy maintained by the Company.
      During this period, the Company shall also reimburse the Employee for amounts
      paid, if any, to continue medical, dental and health coverage pursuant to the
      provisions of the Consolidated Omnibus Budget Reconciliation Act. During this
      period, the Company will also continue Employee's life insurance and disability
      coverage, to the extent permitted under applicable policies, and will pay to
      the
      Employee the fringe benefits pursuant to section 5 which have accrued prior
      to
      the date of termination. Termination of this Agreement for a Disability shall
      not change Employee's rights to receive benefits, if any, pursuant to any
      disability plan or policy then maintained by the Company.

    

    (b)  Termination
      Without Cause.
      If the
      Employee's employment is terminated by the Company for any reason other than
      for
      Cause, Disability or death, or if this Agreement is terminated by the Company
      for what the Company believes is Cause or Disability, and it is ultimately
      determined that the Employee was wrongfully terminated, Employee shall, as
      damages for such a termination, receive Employee's Base Salary, for the
      remainder of the Employment Period or six months, if longer. During this period,
      the Company shall also reimburse the Employee for amounts paid, if any, to
      continue medical, dental and health coverage pursuant to the provisions of
      the
      Consolidated Omnibus Budget Reconciliation Act. During this period, the Company
      will also continue Employee's life insurance and disability coverage, to the
      extent permitted under applicable policies, and will pay to the Employee the
      fringe benefits pursuant to section 5 which have accrued prior to the date
      of termination. The Company's termination of the Employee's employment under
      this section 6(b) shall immediately relieve the Employee of all obligations
      under this Agreement (except as provided in sections 7 and 8) and, except as
      provided below, shall not be construed to require the application of any
      compensation which the Employee may earn in any such other employment to reduce
      the Company's obligation to provide severance benefits and liquidated damages
      under this section 6(b).

    

    (c)  Effect
      of Termination.
      The
      termination of the Employee's employment pursuant to section 6 shall not
      affect the Employee's obligations as described in sections 7
      and 8.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    7.  Noncompetition.
      The
      parties agree that the Company's customer contacts and relations are established
      and maintained at great expense and by virtue of the Employee's employment
      with
      the Company, the Employee will have unique and extensive exposure to and
      personal contact with the Company's customers, and that Employee will be able
      to
      establish a unique relationship with those individuals and entities that will
      enable Employee, both during and after employment, to unfairly compete with
      the
      Company. Further, the parties agree that the terms and conditions of the
      following restrictive covenants are reasonable and necessary for the protection
      of the Company's business, trade secrets and confidential information and to
      prevent great damage or loss to the Company as a result of action taken by
      the
      Employee. The Employee acknowledges that the noncompete restrictions and
      nondisclosure of confidential information restrictions contained in this
      Agreement are reasonable and the consideration provided for herein is sufficient
      to fully and adequately compensate the Employee for agreeing to such
      restrictions. The Employee acknowledges that Employee could continue to actively
      pursue Employee's career and earn sufficient compensation in the same or similar
      business without breaching any of the restrictions contained in this
      Agreement.

    

    (a)  During
      Term of Employment.
      The
      Employee hereby covenants and agrees that, during Employee's employment with
      the
      Company, Employee shall not, directly or indirectly, either individually or
      as
      an employee, principal, agent, partner, shareholder, owner, trustee,
      beneficiary, co-venturer, distributor, consultant or in any other capacity,
      participate in, become associated with, provide assistance to, engage in or
      have
      a financial or other interest in any business, activity or enterprise which
      is
      competitive with or a supplier to the Company or any successor or assign of
      the
      Company. The ownership of less than a one percent interest in a corporation
      whose shares are traded in a recognized stock exchange or traded in the
      over-the-counter market, even though that corporation may be a competitor of
      the
      Company, shall not be deemed financial participation in a
      competitor.

    

    (b) Upon
      Termination of Employment.
      The
      Employee agrees that during a period after termination of Employee's employment
      with the Company equal to the shorter of one year or the duration of Employee's
      employment with the Company, Employee will not, directly or indirectly, either
      individually or as an employee, agent, partner, shareholder, owner, trustee,
      beneficiary, co-venturer, distributor, consultant or in any other
      capacity:

    

    (i)  Canvass,
      solicit or accept from any person or entity who is a customer of the Company
      (any such person or entity is hereinafter referred to individually as a
      "Customer" and collectively as the "Customers") any business in competition
      with
      the business of the Company or the successors or assigns of the Company,
      including the canvassing, soliciting or accepting of business from any
      individual or entity which is or was a Customer of the Company within the
      two-year period preceding the date on which the canvassing, soliciting or
      accepting of business begins.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (ii)  Request
      or advise any of the Customers, suppliers, or other business contacts of the
      Company who currently have or have had business relationships with the Company
      within two years preceding the date hereof or within two years preceding the
      date of such action, to withdraw, curtail or cancel any of their business or
      relations with the Company.

    

    (iii)  Induce
      or
      attempt to induce any employee, sales representative, consultant or other
      personnel of the Company to terminate his or her relationship or breach his
      or
      her agreements with the Company.

    

    (iv)  Use,
      disclose, divulge or transmit or cause to be used by or disclosed, divulged
      or
      transmitted to any third party, any information acquired by the Employee during
      the Employment Period which relates to the trade secrets and confidential
      information of the Company, except as may be required by law.

    

    (v)  Participate
      in, become associated with, provide assistance to, engage in or have a financial
      or other interest in any business, activity or enterprise which is competitive
      with the business of the Company or any successor or assign of the Company
      to
      the extent such activities relate to products or services which are competitive
      with the products and services of the Company; provided, however, that the
      ownership of less than 1% of the stock of a corporation whose shares are traded
      in a recognized stock exchange or traded in the over-the-counter market, even
      though that corporation may be a competitor of the Company, shall not be deemed
      financial participation in a competitor.

    
              For
      purposes of this
      section 7, a competitive business is defined as a business which is
      involved in designing, developing, manufacturing or marketing mechanical,
      electro-mechanical and/or electronic security and access control products in
      the
      global motor vehicle industry.

    

    8.  Confidential
      Information.
      The
      parties agree that the Company's customers, business connections, suppliers,
      customer lists, procedures, operations, techniques, and other aspects of its
      business are established at great expense and protected as confidential
      information and provide the Company with a substantial competitive advantage
      in
      conducting its business. The parties further agree that by virtue of the
      Employee's employment with the Company, Employee will have access to, and be
      entrusted with, secret, confidential and proprietary information, and that
      the
      Company would suffer great loss and injury if the Employee would disclose this
      information or use it to compete with the Company. Therefore, the Employee
      agrees that during the term of Employee's employment, and for a period of two
      years after the termination of his employment with the Company, Employee will
      not, directly or indirectly, either individually or as an employee, agent,
      partner, shareholder, owner, trustee, beneficiary, co-venturer, distributor,
      consultant or in any other capacity, use or disclose, or cause to be used or
      disclosed, any secret, confidential or proprietary information acquired by
      the
      Employee during Employee's employment with the Company whether owned by the
      Company prior to or discovered and developed by the Company subsequent to the
      Employee's employment, and regardless of the fact that the Employee may have
      participated in the discovery and the development of that information. Employee
      also agrees and acknowledges that Employee will comply with all applicable
      laws
      regarding insider trading or the use of material nonpublic information in
      connection with the trading of securities.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    9.  Common
      Law of Torts and Trade Secrets.
      The
      parties agree that nothing in this Agreement shall be construed to limit or
      negate the common law of torts or trade secrets where it provides the Company
      with broader protection than that provided herein.

    

    10.   
      Specific
      Performance.
      The
      Employee acknowledges and agrees that irreparable injury to the Company may
      result in the event the Employee breaches any covenant and agreement contained
      in sections 7 and 8 and that the remedy at law for the breach of any
      such covenant will be inadequate. Therefore, if the Employee engages in any
      act
      in violation of the provisions of sections 7 and 8, the Employee
      agrees that the Company shall be entitled, in addition to such other remedies
      and damages as may be available to it by law or under this Agreement, to
      injunctive relief to enforce the provisions of sections 7
      and 8.

    

    11.   
      Waiver.
      The
      failure of either party to insist, in any one or more instances, upon
      performance of the terms or conditions of this Agreement shall not be construed
      as a waiver or a relinquishment of any right granted hereunder or of the future
      performance of any such term, covenant or condition.

    

    12.   
      Notices.
      Any
      notice to be given hereunder shall be deemed sufficient if addressed in writing,
      and delivered by registered or certified mail or delivered personally, in the
      case of the Company, to its principal business office, and in the case of the
      Employee, to his address appearing on the records of the Company, or to such
      other address as he may designate in writing to the Company.

    

    13.   
      Severability.
      In the
      event that any provision shall be held to be invalid or unenforceable for any
      reason whatsoever, it is agreed such invalidity or unenforceability shall not
      affect any other provision of this Agreement and the remaining covenants,
      restrictions and provisions hereof shall remain in full force and effect and
      any
      court of competent jurisdiction may so modify the objectionable provision as
      to
      make it valid, reasonable and enforceable. Furthermore,
      the parties specifically acknowledge the above covenant not to compete and
      covenant not to disclose confidential information are separate and independent
      agreements.

    

    14.   
      Amendment.
      This
      Agreement may only be amended by an agreement in writing signed by all of the
      parties hereto.

    

    15.   
      Governing
      Law.
      This
      Agreement shall be governed by and construed exclusively in accordance with
      the
      laws of the State of Wisconsin, regardless of choice of law requirements. The
      parties hereby consent to the jurisdiction of the state courts of the State
      of
      Wisconsin and of any federal court in the venue of Wisconsin for the purpose
      of
      any suit, action or proceeding arising out of or related to this Agreement,
      and
      expressly waive any and all objections they may have as to venue in any of
      such
      courts.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    16.   
      Dispute
      Resolution.
      The
      parties hereto shall attempt to resolve disputes arising out of or relating
      to
      this Agreement. Any dispute not resolved in writing within 21 days may be
      referred by either party to mediation involving a mediator (a third party
      neutral), trained and experienced in the mediation process and mutually agreed
      to by the parties. The mediator shall ascribe to and follow the AAA/SPIDR or
      ABA
      code of ethics for mediators in conduct and management of the mediation process.
      Expenses for the mediation shall be shared equally by the parties unless
      otherwise agreed during the mediation process. The parties may be accompanied
      in
      the mediation process by legal counsel, and/or other persons mutually agreed
      to
      by the parties and the mediator. All participants will openly and honestly
      participate in the mediation. The mediation may be terminated at any time,
      for
      any reason by the mediator or by either party. Any resolution reached by the
      parties during the mediation shall be recorded in writing and agreed to by
      the
      parties. Such resolution may be drafted and/or revised by the parties' legal
      counsel and shall be legally binding on the parties.

    

    17.  
      Benefit.
      This
      Agreement shall be binding upon and inure to the benefit of and shall be
      enforceable by and against the Company, its successors and assigns and the
      Employee, his heirs, beneficiaries and legal representatives. It is agreed
      that
      the rights and obligations of the Employee may not be delegated or
      assigned.

    

    IN
      WITNESS WHEREOF, the parties have executed or caused this Agreement to be
      executed as of the day, month and year first above written.

    

    EMPLOYEE                         STRATTEC
      SECURITY CORPORATION

    

    /s/
      Brian J.
      Reetz                                   
           BY 
      /s/ Harold M. Stratton
      II                            

    Brian
      J.
      Reetz                                                                              
     Harold
      M.
      Stratton II, 

                                                                                                           
         Chairman
      of the Board and
      

                                                                                                           
         Chief Executive Officer

     

     

    

      7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]