Document:

sup-ex101_808.htm

Exhibit 10.1

 

SALARY CONTINUATION PLAN

Amended and Restated as of August 19, 2011

This Salary Continuation Plan ("Plan") has been established by SUPERIOR INDUSTRIES INTERNATIONAL, INC., a California Corporation (the "Company"), effective March 28, 2008, and amended and restated effective as of August 19, 2011, based upon the following facts and circumstances:

A.The Company wishes to promote in its executive employees and directors increased efficiency in their work and the strongest possible interest in the successful operation of the Company and to provide certain executive employees and directors (each, a "Participant") and their families with benefits upon the retirement or death of such directors or employees.

B.The Company recognizes the valuable services heretofore performed for it by the Participant and wishes to encourage the Participant's continued relationship with the Company.

C.In order to achieve these goals, the Company is establishing this Plan.

D.Effective March 3, 2011, the Company froze the Plan so that no person is eligible to become a new Participant in the Plan on or after such date.

NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

1.Definitions. 

1.1Administrative Committee. "Administrative Committee" shall mean the committee appointed pursuant to Section 5 hereof.

1.2Affiliate. "Affiliate" shall mean all persons with whom the Company would be considered a single employer under Section 414(b) or Section 414(c) of the Code, except that, for purposes of determining whether there is a controlled group or common control, the language "at least 50 percent" is used instead of "at least 80 percent."

1.3Agreement. "Agreement" shall mean the agreement entered into between the Company and the Participant evidencing a grant of benefits under the Plan.

1.4Beneficiary. "Beneficiary" shall mean the Beneficiary, or each Beneficiary, designated by the Participant pursuant to Section 4 hereof.

1.5Change in Control. "Change in Control" means any transaction or series of transactions qualifying as a "change in control" under Section 409A of the Code.

1.6Code. "Code" shall mean the Internal Revenue Code of 1986, as amended from time to time, and any successor, along with related rules, regulations, and interpretations.

1.7Company. "Company" shall mean Superior Industries International, Inc. Where the context requires, reference to the Company shall include an Affiliate.

 

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1.8Compensation. "Compensation" shall mean the base salary and any annual directors' retainer paid or accrued to or for the Participant with respect to each calendar month for personal services rendered by the Participant to the Company during such month, but shall not include any commission, bonus, meeting fee or other payment.

1.9Disability. "Disability" shall mean that a Participant meets one of the following requirements:

(a)the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve months; or

(b)if the Participant is covered by an accident and health plan covering employees of the Company, the Participant is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company.

1.10Final Average Compensation. "Final Average Compensation" shall mean the average monthly Compensation paid to, or accrued for the benefit of, the Participant with respect to the 36 months of the Participant's employment or service (or the entire period of the Participant's employment or service if shorter than 36 months) immediately preceding the month in which occurs the Participant's Separation from Service.

1.11Retirement Date. "Retirement Date" shall mean the later of (i) the Participant's sixty-fifth (65th) birthday or (ii) the day upon which occurs the Participant's Separation from Service on or after the Vesting Date.

1.12Separation from Service. "Separation from Service" shall mean a separation from services from the Company and the Company's Affiliates as defined for purposes of Section 409A(a)(2)(A)(i) of the Code, except that a reduction in level of services performed by a Participant to a level equal to twenty one (21) percent or less of the average level of services performed during the immediately preceding thirty-six (36) months (or such shorter period as the Participant shall have performed services for the Company) shall be presumed to be a "Separation from Service."

1.13Vesting Date. "Vesting Date" with respect to the Participant shall mean the earliest to occur of: (a) the date set forth in the Participant's Agreement; (b) the date upon which the Participant becomes Disabled; or (c) the date upon which a Change in Control occurs. Notwithstanding the foregoing, the Company retains the right, at any time and in its sole and absolute discretion, to accelerate a Participant's vested interest in the benefits granted under such Participant's Agreement.

 

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2.Retirement Benefits. 

2.1Amount of Benefit. If the Participant's Separation from Service occurs on or after the Vesting Date for reasons other than his death, the Company shall pay to the Participant a monthly benefit equal to thirty percent (30%) of the Participant's Final Average Compensation.

2.2Period of Payment. Payment of the retirement benefit specified in Section 2.1 shall commence on the first day of the month coinciding with or next following the Participant's Retirement Date and shall continue on the first day of each month thereafter through and including the first day of the month coinciding with or next preceding the Participant's death. Notwithstanding the foregoing, if the Participant is a "specified employee" for purposes of Section 409A of the Code as of the Participant's Separation from Service and payment of an amount that is subject to Section 409A of the Code is otherwise required to be made on the first day of the month coinciding with or next following the Retirement Date described in Section 1.10(ii) of the Plan, payments to which the Participant would otherwise be entitled during the first six months following the date of Separation from Service shall be accumulated and paid on the first day of the seventh month following the date of the Separation from Service.

3.Survivorship Benefits. 

3.1Death Prior to Separation from Service. If the Participant's Separation from Service occurs due to the Participant's death, the Company shall pay to the Participant's Beneficiary 120 monthly payments, each in an amount equal to thirty percent (30%) of the Participant's Final Average Compensation. Such payments shall commence within 90 days following the Participant's death and shall continue on the first day of each of the 119 months after the first payment.

3.2Death After Separation from Service but Prior to Retirement Date. If the Participant's Separation from Service occurs on or after the Vesting Date for reasons other than his death and the Participant subsequently dies prior to the commencement of retirement benefit payments under Section 2.2, the Company shall pay to the Participant's Beneficiary 120 monthly payments, each in an amount equal to thirty percent (30%) of the Participant's final Average Compensation. Such payments shall commence within 90 days following the Participant's death and shall continue on the first day of each of the 119 months after the first payment.

3.3Death After Commencement of Retirement Benefits. If the Participant dies after retirement benefit payments have commenced under Section 2 hereof, but prior to his having received 120 such monthly payments, the Company shall continue such monthly payments to the Participant's Beneficiary in the same amount and at the same time said payments would have been paid to the Participant until the total of the monthly payments made to the Participant, plus the payments made to the Participant's Beneficiary, equals 120.

3.4Death of Beneficiary. In the event a Beneficiary receiving payments under this Section 3 dies before receiving all the payments due to such Beneficiary, the Company shall continue such monthly payments to the Beneficiary's estate in the same amount and at the same time said payments would have been paid to the Beneficiary until the total of the monthly payments made to the Participant, plus the payments made to the Participant's Beneficiary and the Beneficiary's estate, equals 120.

 

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4.Beneficiaries. 

4.1Designation of Beneficiary. Subject to the limitations specified in Section 4.2, hereof, the Participant may designate a Beneficiary or Beneficiaries by filing a written notice of such designation with the Administrative Committee in such form as the Administrative Committee may prescribe. The Participant may revoke or modify such designation at any time by a further written designation. The Participant's designation of a Beneficiary shall be deemed automatically revoked in the event that the Beneficiary predeceases the Participant. If no designation shall be in effect at the time the benefits are payable under this Plan, the Beneficiary or Beneficiaries shall be the Participant's spouse, or if no spouse is then living, the Participant's children or the issue of any deceased child by right of representation or, if none of the foregoing is living, then the Participant's estate. If more than one Beneficiary becomes entitled to a survivorship benefit either by designation of the Participant or otherwise, the benefit specified herein shall be divided equally among such Beneficiaries.

4.2Limitations on Designation of Beneficiary. If the Participant's Compensation constitutes community property, no person other than the Participant's spouse shall be designated as a Beneficiary unless (i) such spouse shall approve such designation in writing and (ii) such designation is approved by the Administrative Committee.

4.3Minors; Persons Declared Incompetent. In the event a benefit is payable to a minor or to a person who is declared incompetent the Company may pay such benefit to the guardian, legal representative or person or persons having the care or custody of such minor or incompetent. The Administrative Committee may require such proof of incompetency, minority or guardianship as it may deem appropriate prior to the distribution of the benefit. Such distribution shall completely discharge the Administrative Committee and the Company from all liability with respect to such benefit.

5.Administrative Committee

5.1Appointment of Committee. The Board of Directors of the Company shall appoint an Administrative Committee consisting of three (3) or more persons to administer and interpret this Plan. The interpretation and construction of this Plan by the Administrative Committee, and any action taken thereunder, shall be binding and conclusive upon all parties in interest. No member of the Administrative Committee shall, in any event, be liable to any person for any action taken or omitted to be taken in connection with the interpretation, construction or administration of this Plan, so long as such action or omission to act is made in good faith. The Administrative Committee may adopt rules and regulations relating to this Plan as it may deem necessary or advisable.

5.2Named Fiduciary. The Administrative Committee is hereby designated as the named fiduciary under this Plan. The named fiduciary shall have authority to control and manage the operation and administration of this Plan, and it shall be responsible for establishing and carrying out a funding policy and method consistent with the objectives of this Plan.

5.3Claims Procedure. If the Participant or a Beneficiary is denied all or a portion of an expected benefit under this Plan for any reason, he or she may file a claim with the Administrative Committee within thirty (30) days of such denial. The Administrative Committee shall 

 

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notify the claimant within sixty (60) days of allowance or denial of the claim, unless the claimant receives written notice from the Administrative Committee prior to the end of the sixty (60) day period stating that special circumstances require extension of time for decision, which extension of time shall not exceed an additional sixty (60) days. The notice of the Administrative Committee's decision shall be in writing, sent by mail to the claimant's last known address, and, if a denial of the claim, must contain the following information:

(a)the specific reasons for denial,

(b)specific reference to pertinent provisions of this Plan on which the denial is based,

(c)if applicable, a description of any additional information or material necessary to perfect the claim and an explanation of why such information or additional material is necessary, and

(d)an explanation of the claims review procedure.

5.4Review Procedure. A claimant is entitled to request a review of any denial of his claim by the Administrative Committee, which request for review must be submitted in writing within sixty (60) days of the mailing of the notice of denial. Absent a request for review within the sixty (60) day period, the claim will be deemed to be conclusively denied. The claimant or his representative shall be entitled to review all pertinent documents. The review shall be conducted by the Administrative Committee, which shall afford the claimant a hearing and the opportunity to submit issues, records, documents, and comments orally and in writing. The Administrative Committee shall render a review decision in writing, all within sixty (60) days after a receipt of a request for review, unless the claimant receives written notice from the Administrative Committee prior to the end of the sixty (60) day period stating that special circumstances require extension of time for decision, which extension of time shall not exceed an additional sixty (60) days. The claimant shall be given written notice of the Administrative Committee's review decision, together with specific reasons for the decision and reference to the pertinent provisions of this Plan.

5.5Disability Benefits Claims and Review Procedures. If a Participant's claim is a claim for disability benefits subject to Department of Labor ("DOL") regulation § 2560.503-1, the procedures in Sections 5.3 and 5.4 above shall be modified to comply with the DOL regulations governing disability claims.

6.Funding. 

6.1No Trust. Nothing contained in this Plan, and no action taken pursuant to its provisions by either party hereto, shall create, or be construed to create, a trust of any kind for the benefit of the Participant, his Beneficiary, or his estate. Payments to the Participant or his designated Beneficiary hereunder shall be made from assets which shall continue, for all purposes, to be a part of the general assets of the Company, and no person, other than the Company, shall have, by virtue of the provisions of this Plan, any interest in such assets. To the extent that any person acquires a right to receive payments from the Company under the provisions hereof, such rights shall be no greater than the rights of any unsecured general creditor of the Company.

 

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6.2Life Insurance. The Company may, in its discretion, apply for and procure as owner and for its own benefit, insurance or annuity contracts on the life of the Participant in such amounts and in such forms as the Company may choose. In such event, neither the Participant nor any Beneficiary shall have any rights whatsoever in such contract or contracts and the Company shall possess and may exercise all incidents of ownership therein. At the request of the Company, the Participant shall submit to medical examinations and shall supply such information and execute such documents as may be required by the insurance company or companies to whom the Company has applied for such insurance, including but not limited to any consents which may be required under the Pension Protection Act or other applicable laws.

7.Miscellaneous. 

7.1Assignment. Neither the Participant nor any Beneficiary shall have any right to assign the right to receive any benefits hereunder and any attempted assignment or transfer shall excuse the Company from making any further payments to the purported assignor.

7.2No Guarantee of Employment. Neither this Plan nor any action taken hereunder shall be construed as giving the Participant the right to be retained as an employee of the Company for any period.

7.3Lack of Vesting. No benefit hereunder shall be paid to, or with respect to the employment or service of, a Participant whose Separation from Service is for reasons other than death and occurs before the Vesting Date.

7.4Taxes. The Company shall deduct from all payments made hereunder all applicable federal and state taxes required by law to be withheld from any such payment. Taxes required by law to be withheld at vesting of benefits hereunder shall be collected from the Participant in the year of vesting. The Company is authorized to satisfy any tax withholding obligation at vesting by deducting such taxes from any other compensation due the Participant, collecting from the Participant cash or a certified check, or reducing the benefit payable under the Plan.

7.5Amendment and Termination. This Plan may be amended or terminated by the Company; provided, however, that no such amendment or termination may adversely affect the rights of individuals who are Participants or Beneficiaries as of the date of such amendment or termination.

7.6Form of Communication. Any notice, claim, application or other communication required or permitted to be given under the provisions of this Plan shall be in writing and in such form as the Administrative Committee may prescribe. If such communication is made to Participant, it shall be made by personal delivery or sent by United States certified mail, postage pre-paid, addressed to the Participant's last known address as shown on the records of the Company. Any communication to the Company or to the Administrative Committee shall be made by personal delivery or sent by United States certified mail, postage pre-paid, addressed to the Company's executive offices at 7800 Woodley Avenue, Van Nuys, California 91406, or such other address as may be designated in writing by the Company. The date of mailing shall be deemed the date of any such notice, consent, application or demand.

 

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7.7Captions. The captions at the head of a section or paragraph of this Plan are designed for convenience of reference only and are not to be used for the purpose of interpreting any provision of this Plan.

7.8Construction. This Plan shall be construed according to the laws of the State of California.

7.9Gender and Form. In this Plan, where appropriate, the masculine gender includes the feminine and neuter gender and words in the singular form include the plural form, and vice versa.

7.10Severability. The invalidity of any portion of this Plan shall not invalidate the remainder thereof and said remainder shall continue in force and effect to the fullest extent permitted by law.

7.11Binding Agreement. This Plan shall be binding upon and inure to the benefit of the Company and its successors and assigns and the Participant and, to the extent its context permits, to his successors, heirs, executors, administrators and Beneficiaries.

7.12Funding. Notwithstanding any other provision of this Plan, (a) this Plan constitutes a mere promise by the Company to make benefit payments in the future; (b) the Participant shall have no rights to amounts under this Plan or to any specified assets of the Company; (c) the Participant shall have the status of a general unsecured creditor of the Company; (d) the Company in no way guarantees any payments under the Plan; and (e) any and all investments remain the property of the Company.

7.13Top Hat Plan. This Plan is intended (a) to be unfunded for tax purposes and (b) to qualify as an unfunded plan maintained primarily for the purpose of providing deferred compensation for directors and for a select group of management and highly compensated employees (a "top hat" plan) for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended.

7.14Existing Agreements, Effective Date and Section 409A Compliance. For any Participant who is party to an existing Salary Continuation Agreement as of the date of adoption of the Plan, such Agreement shall continue to govern unless amended with the consent of the Company and the Participant (or the Beneficiary, if the Participant has died).

With the consent of the Company and the Participant, this Plan shall apply both to amounts deferred before 2005 ("Grandfathered Amounts") and to amounts deferred after 2004 ("Section 409A Amounts"), except that the six-month delay in Section 2.2 of the Plan shall not apply to Grandfathered Amounts. The Plan does not represent a material modification of the Salary Continuation Agreements that were in effect October 3, 2004. No future amendment of the Plan shall apply to Grandfathered Amounts to the extent such provision or amendment would constitute a material modification of such Grandfathered Amounts (unless the amendment expressly indicates otherwise). With respect to Section 409A Amounts, the Plan, as amended in November 2008, is intended to conform to the requirements of Section 409A of the Code and the regulations thereunder and, in all respects, shall be administered and construed in accordance with such 

 

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requirements. Prior to amendment in November 2008, the Salary Continuation Agreements and the Plan were administered in good faith compliance with Section 409A of the Code.

IN WITNESS WHEREOF, the Company has adopted this amended and restated Plan on August 19, 2011, effective as of the day and year first above written.

 

	
"Company":
	
SUPERIOR INDUSTRIES INTERNATIONAL, INC.

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
By:
	
/s/.Steven J. Borick

	
 
	
Steven J. Borick

	
 
	
Chairman, CEO & President

 

 

8sup-ex1034_1098.htm

	
	
 

 

 

Exhibit 10.34

 

 

 

 

September 10, 2020

 

Andreas Meyer

 

Dear Andy,

We consider your continued service and dedication to Superior Industries International, Inc. (the “Company” or “Superior”) essential to our business. To retain you as a key leader of the Company, we are pleased to offer you this Retention Bonus Agreement.   

Retention Awards

You will be eligible for a restricted cash retention bonus of $300,000 (USD) subject to the terms of this letter and the attached Restricted Cash Retention Award Agreement and its Exhibits. The retention bonus will be paid to you on the next reasonable payroll date following the Vesting Date indicated below (the “Vesting Date”) provided you remain an employee of the Company on the Vesting Date. Any payout will be in Euros using the effective exchange rate at time of payment.

 

			
	
Restricted Cash Award Amount:
	
$300,000 USD

	
Grant Date:
	
September 10, 2020

	
Vesting Date (Restricted Period):
	
Vesting Date:
	
 

	
 
	
 

	
August 31, 2022
	
 

	
 
	
 

	
 

 

Termination of Employment

If the Company terminates your employment before the Vesting Date other than for cause, the Company will be obligated to pay you the full amount of the cash retention bonus on the next reasonable payroll date following your termination date. 

If you are terminated for cause at any point before the Vesting Date, you will not be eligible for the cash payment related to the Vesting Date.

For purposes of this Agreement, cause means:

Your willful and continued failure to perform substantially your duties with the Company.

Your willful engagement in illegal conduct, gross misconduct, breach of fiduciary duty or willful disregard of published Company policies and procedures or code of conduct.

Employment Relationship

This Agreement does not constitute, and may not be construed as, a commitment by Company to employ you for any specific duration. This Agreement does not change the at will nature of your employment relationship with 

 

 

Company. Consequently, either you or the Company may terminate your employment relationship at any time, with or without cause, and with or without notice. 

Confidentiality

You agree that the monetary terms of this Agreement are confidential and will not be disclosed to any other person apart from attorney-client privileged communications, conversations with immediate family members and tax and financial advisors (whom you have informed of this confidentiality agreement and requested to abide by it) or as required by law. 

Governing Law

The validity, interpretation and performance of this Agreement shall, in all respects, be governed by the relevant laws of the State of Michigan. 

Modification

No provision of this Agreement may be modified, altered or amended, except by collective agreement between the Company and you in writing.

If you accept the terms of this Agreement, please sign below in the space provided.

Again, thank you for your leadership and dedication.

Sincerely,

 

 

					
	
/s/ Majdi Abulaban
	
 
	
 

	
Majdi Abulaban
	
 
	
Date

	
President and Chief Executive Officer
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
Acceptance
	
 
	
 
	
 
	
 

	
Signature:
	
 
	
/s/ Andreas Meyer
	
 
	
September 15, 2020

	
 
	
 
	
 
	
 
	
 

	
Andreas Meyer
	
 
	
Date

	
 
	
 
	
 
	
 
	
 

	
Address:
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

 

 

 

RESTRICTED CASH RETENTION AWARD AGREEMENT

 

1. Grant of Restricted Award.  The Company has granted to you the Restricted Cash Award (as specified in the preceding letter (“Notice of Grant”)) that represents the right to receive up to three cash payments, subject to the terms and conditions of the Notice of Grant and this Restricted Cash Retention Award Agreement (including the vesting conditions provided in the Notice of Grant).

 

2. Restricted Period and Vesting.   The Restricted Period shall expire on the Vesting Date. and the cash retention bonus payment, if any (“Vested Cash”), shall be distributed to the Participant as soon as reasonably practicable. Prior to the Vesting Date specified in the Notice of Grant, the remaining cash amount in the Restricted Award shall be defined in this Agreement as “Unvested Cash.”

3. Forfeiture of Unvested Cash. If the Participant breaches any of the restrictive covenants contained in Exhibit A, then the Participant shall forfeit any cash payment contemplated under the Notice of Grant, whether Vested or Unvested and whether or not distributed to the Participant.

 

4. Restriction on Payment. None of the Unvested Cash or any beneficial interest therein shall be transferred, encumbered or otherwise disposed of in any way until the occurrence of the Vesting Date.  In addition, as a condition to any payment of Vested Cash after the Vesting Date, the Company may, in its discretion, require fulfillment of any requirements deemed necessary by counsel for the Company to comply with applicable law, including tax withholding requirements.

 

5. Restrictive Covenants.  Notwithstanding anything to the contrary in the Notice of Grant, to the extent permitted by applicable law, as a condition precedent to the Company granting you the Restricted Award, and in order to receive any payments pursuant to Section 6,  Participant must have complied with the time-vesting restrictive conditions, as set forth in Exhibit A, through and including the Vesting Date and any post-employment restrictions that are applicable. For the avoidance of doubt, the restrictive conditions set forth in Exhibit A shall apply in addition to (and shall not be limited by the provisions of) any other non-competition, non-pooling, non-solicitation, confidentiality, non-disparagement or similar covenants or conditions to which the Participant is a party with the Company or any affiliate thereof.

 

6. Distribution of Cash.  The Company shall hold the Unvested Cash until the Vesting Date.  When the Vesting Date occurs, as soon as reasonably practicable, the Company shall promptly distribute the Vested Cash to the Participant, if any, subject to the terms of the Notice of Grant.

 

8. Tax Consequences. The Participant has reviewed with the Participant’s own tax advisors the federal, state, local and foreign tax consequences of the transactions contemplated by the Notice of Grant. The Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its employees or agents. The Participant understands that only the Participant (and not the Company) shall be responsible for the Participant’s own tax liability that may arise as a result of the transactions contemplated by the Notice of Grant. 

 

9. Withholding. No later than the date as of which an amount first becomes includible as income of Participant for any income and/or employment tax purposes with respect to any Vested Cash hereunder, Participant shall pay to the Company, or make arrangements satisfactory to the Company regarding the payment of, all federal, state, local and foreign income and/or employment taxes that are required by applicable law to be withheld with respect to such amount. Participant authorizes the Company to withhold from his or her compensation to satisfy any income and/or employment tax withholding obligations in connection with the Restricted Award. If Participant is no longer employed by the Company at the time any applicable taxes are due and must be remitted by the Company, Participant agrees to pay applicable taxes to the Company, and the Company may delay distribution of the Vested Cash until proper payment of such taxes has been made by Participant. 

 

10. General.

 

	
 
	
(a)
	
The Notice of Grant shall be governed by and construed under the laws of the State of Michigan.

 

	
 
	
(b)
	
The Notice of Grant, including this Restricted Cash Retention Award Agreement and its Exhibits, represent the entire agreement between the parties with respect to the Restricted Award granted to the Participant.

 

 

	
 
		

 

(c)Any notice, demand or request required or permitted to be delivered by either the Company or the Participant pursuant to the terms of the Notice of Grant shall be in writing and shall be deemed given when delivered personally, deposited with an international courier service, or deposited in the U.S. Mail, First Class with postage prepaid, and addressed to (i) the Participant at the addresses set forth in the Notice of Grant or as the Participant may request by notifying the Company in writing and (ii) the Company at its corporate headquarters to the attention of its Chief Financial Officer.

 

(d)The rights of the Company under the Notice of Grant shall be transferable to any one or more persons or entities, and all covenants and agreements hereunder shall inure to the benefit of, and be enforceable by, the Company’s successors and assignees. The rights and obligations of the Participant under the Notice and Agreement may only be assigned with the prior written consent of the Company.

 

(e)Upon a request by the Company to the Participant, the Participant agrees to execute any further documents or instruments necessary or desirable to carry out the purposes or intent of the Notice of Grant.

 

	
 
	
(f)
	
Participant acknowledges and agrees that the Restricted Award granted pursuant to the Notice of Grant shall be vested only by providing Continuous Service through the Vesting Date as an Employee.

 

(g)If any term, provision, covenant, paragraph, or condition of this Agreement is held to be invalid, illegal, or unenforceable by any court of competent jurisdiction, that provision shall be modified or eliminated to the minimum extent necessary so this Agreement shall otherwise remain enforceable in full force and effect.

 

 

EXHIBIT A: TO THE 2020 NOTICE OF GRANT AND

RESTRICTED CASH RETENTION AWARD AGREEMENT

As a condition precedent to the Company granting you the Restricted Award, and in order to receive any cash payments pursuant to such grant, Participant must have complied with the following restrictive conditions, through and including the Vesting Date and any post-employment restrictions that are applicable. Any capitalized term in this Exhibit A that is not defined herein shall have the meaning set forth in the Notice of Grant and Restricted Cash Retention Award Agreement.

	
1.
	
Nondisclosure and Nonuse of Confidential Information. 

Participant shall not use or disclose to any person, either during Participant’s Continuous Service or thereafter, any Confidential Information (as defined below) of which Participant is or becomes aware, whether or not such information is developed by him or her, for any reason or purpose whatsoever, nor shall he or she make use of any of the Confidential Information for his or her own purposes or for the benefit of any person except the Company or its affiliates, except (i) to the extent that such disclosure or use is directly related to and required by Participant’s performance in good faith of duties assigned to Participant by the Company or an affiliate thereof or (ii) to the extent required to do so by a court of competent jurisdiction.  Participant will take all appropriate steps to safeguard Confidential Information and to protect it against disclosure, misuse, espionage, loss and theft.  Participant shall deliver to the Company at the termination of Participant’s Continuous Service, or at any time the Company may request, all memoranda, notes, plans, records, reports, computer tapes and software and other documents and data (and copies thereof) relating to the Confidential Information or the Work Product (as defined below) of the Company or any affiliate thereof that Participant may then possess or have under his or her control.

“Confidential Information” means information that is not generally known to the public (including the existence and content of the Notice of Grant) and that is used, developed or obtained by the Company or any of its affiliates in connection with its business, including, but not limited to, information, observations and data obtained by Participant during Participant’s Continuous Service with the Company, an affiliate or any predecessors thereof (including those obtained prior to the date of the Notice of Grant) concerning (i) the business or affairs of the Company or any affiliate (or such predecessors) and (ii) products, services, fees, costs, pricing structures, analyses, drawings, photographs and reports, computer software (including operating systems, applications and program listings), data bases, accounting and business methods, inventions, devices, new developments, methods and processes (whether patentable or unpatentable and whether or not reduced to practice), customers and clients and customer and client lists, all technology and trade secrets, and all similar and related information in whatever form.  Notwithstanding the foregoing, “Confidential Information” will not include any information that has been published in a form generally available to the public prior to the date Participant proposes to disclose or use such information.

Participant acknowledges and agrees that the existence, terms and amount of the Notice of Grant is confidential in nature.  In consideration of the Company granting the Restricted Award to Participant, Participant agrees that the Notice of Grant (i) will be kept confidential by Participant and (ii) will not, without the Company’s prior written consent, be disclosed to any employee of the Company or any other person (other than any attorney, accountant, or spouse of a Participant or as required by law).

For the avoidance of doubt, this Section 1 does not prohibit or restrict the Participant (or the Participant’s attorney) from responding to any inquiry about the Notice of Grant or its underlying facts and circumstances by the Securities and Exchange Commission, the Financial Industry Regulatory Authority, any other self-regulatory organization or governmental entity, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. The Participant understands and acknowledges that he or she does not need the prior authorization of the Company or an affiliate thereof to make any such reports or disclosures and that he or she is not required to notify the Company that he has made such reports or disclosures.

Notwithstanding anything in this Section 1 or elsewhere in the Notice of Grant to the contrary, the Participant understands that he or she may, pursuant to the U.S. Defend Trade Secrets Act of 2016 (“DTSA”), without informing the Company prior to any such disclosure, disclose Confidential Information (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  Additionally, without informing the Company prior to any such disclosure, if the 

 

 

Participant files a lawsuit against the Company for retaliation for reporting a suspected violation of law, the Participant may, pursuant to the DTSA, disclose Confidential Information to his or her attorney and use the Confidential Information in the court proceeding or arbitration, provided that the Participant files any document containing the Confidential Information under seal and does not otherwise disclose the Confidential Information, except pursuant to court order. Without prior authorization of the Company, however, the Company does not authorize the Participant to disclose to any third party (including any government official or any attorney the Participant may retain) any communications that are covered by the Company’s attorney-client privilege.

	
2.
	
Covenants Not to Compete or Solicit.  

Non-Competition.  During Participant’s Continuous Service (as defined below) and ending twelve (12) full months after the later of (i) the effective date of the termination of such Continuous Service and (ii) the last date on which Participant receives compensation from Company or any of its affiliates related to Participants’ employment or service relationship with the Company or any of its affiliates or any termination thereof (the “Exhibit A Restricted Period”), Participant shall not, and will cause his/her affiliates not to, directly or indirectly, through or in association with any third party, in the applicable geographical area described in Exhibit B (the “Restricted Area”), (i) engage in, sell or provide any products or services which are the same or similar to or otherwise competitive with the products and services sold or provided by the Company or any Affiliate; and/or (ii) own, acquire, or control any interest, financial or otherwise, in a third party or business engaged in selling or providing the same, similar or otherwise competitive services or products which the Company or any affiliate is selling or providing, other than ownership of one percent (1%) or less of the equity of a publicly-traded company.  

“Continuous Service” means that a Participant’s employment or service relationship with the Company or any of its affiliates is not interrupted or terminated. Continuous Service shall not be considered interrupted in the following cases: (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company and any Subsidiary or successor. A leave of absence approved by the Company shall include sick leave, military leave or any other personal leave approved by an authorized representative of the Company. For purposes of any award that is subject to Section 409A of the Internal Revenue Code, the determination of a leave of absence must comply with the requirements of a “bona fide leave of absence” as provided in Treasury Regulations Section 1.409A-1(h).

Non-Solicitation. During the Exhibit A Restricted Period, Participant shall not (i) directly, or indirectly through another person, hire any employee of the Company or any of its affiliates or induce any employee of the Company or any of its affiliates to leave the employ of the Company or any of its affiliates, and/or (ii) directly, or indirectly through another person induce any customer, supplier, licensee, vendor or other business relation of the Company or any of its affiliates to cease doing business with the Company or any of its affiliates, or in any way intentionally interfere with the relationship between any such customer, supplier, licensee, vendor or business relation, on the one hand, and the Company or any of its affiliates, on the other hand.

	
3.
	
Intellectual Property Rights. 

(a)Participant hereby assigns, transfers and conveys to the Company all of Participant’s right, title and interest in and to all Work Product.  Participant agrees that all Work Product belongs in all instances to the Company.  Participant will promptly disclose such Work Product to the Company and perform all actions reasonably requested by the Company or an affiliate thereof (whether during or after the period of Participant’s Continuous Service with the Company or an affiliate thereof) to establish and confirm the Company’s ownership of such Work Product (including, without limitation, the execution and delivery of assignments, consents, powers of attorney and other instruments) and to provide reasonable assistance to the Company (whether during or after the period of Participant’s Continuous Service with the Company of an affiliate thereof) in connection with the prosecution of any applications for patents, trademarks, trade names, service marks or reissues thereof or in the prosecution or defense of interferences relating to any Work Product.  Participant recognizes and agrees that the Work Product, to the extent copyrightable, constitutes works for hire under the copyright laws of the United States. 

(b)“Work Product” means all inventions, innovations, improvements, technical information, systems, software developments, methods, designs, analyses, drawings, reports, service marks, trademarks, trade names, trade dress, logos and all similar or related information (whether patentable or unpatentable) which relates to the Company’s 

 

 

or any of its affiliates’ actual or anticipated business, operations, research and development or existing or future products or services and which are conceived, developed or made by Participant (whether or not during usual business hours and whether or not alone or in conjunction with any other person) during the period of Participant’s Continuous Service together with all patent applications, letters patent, trademark, trade name and service mark applications or registrations, copyrights and reissues thereof that may be granted for or upon any of the foregoing. Notwithstanding the foregoing, “Work Product” shall not include the patents and other assets set forth on Exhibit C hereto. Participant hereby represents and warrants that the patents and other assets owned by Participant set forth on Exhibit C are not related in any way to the Company, except as stated therein. 

(c)Non-Disparagement. The Participant shall not, in any manner, directly or indirectly, make any oral or written statement to any person that disparages or places the Company or an affiliate thereof or any of their respective officers, shareholders or advisors, or any member of the Board, in a false or negative light; provided, however, that the Participant shall not be required to make any untruthful statement or to violate any law.

	
4.
	
Enforcement.

Participant understands that the restrictions set forth in Exhibit A to the Notice of Grant and Restricted Cash Retention Award Agreement may limit his or her ability to earn a livelihood in a business similar to the business of the Company or an affiliate thereof, but he or she nevertheless believes that he or she has received and will receive sufficient consideration and other benefits in connection with his or her Continuous Service with the Company or an affiliate thereof to clearly justify such restrictions which, in any event (given his or her education, skills and ability), Participant does not believe would prevent him or her from otherwise earning a living.  Participant has carefully considered the nature and extent of the restrictions placed upon him or her by  Exhibit A to the Notice of Grant and Restricted Cash Retention Award Agreement, and hereby acknowledges and agrees that the same are reasonable, do not confer a benefit upon the Company disproportionate to the detriment of Participant and are reasonable in time, scope and territory and necessary for the protection of the Company and its affiliate and are an essential inducement to the Company’s grant of the Restricted Award.

Because Participant’s services are unique and because Participant has access to Confidential Information and Work Product, the Parties hereto agree that money damages would be an inadequate remedy for any breach of the provisions of Exhibit A to the Notice of Grant and Restricted Cash Retention Award Agreement.  Therefore, in the event of a breach or threatened breach of the restrictions in Exhibit A to the Notice and Agreement, the Company or its successors or assigns may, in addition to other rights and remedies existing in their favor at law or in equity, apply to any court of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce, or prevent any violations of, the provisions hereof (without posting a bond or other security) or require Participant to account for and pay over to the Company all compensation, profits, moneys, accruals, increments or other benefits derived from or received as a result of any transactions constituting a breach of the covenants contained in Exhibit A to the Notice and Agreement, if and when the judgment of a court of competent jurisdiction is so entered against Participant.

If, at the time of enforcement of the restrictions provided in Exhibit A to the Notice and Agreement, a court or arbitrator holds that the restrictions stated herein are unreasonable under the circumstances then existing, the parties agree that the maximum period, scope or geographical area reasonable under such circumstances shall be substituted for the stated period, scope or area determined to be reasonable under the circumstances by such court or arbitrator, as applicable.

Participant covenants and agrees that he or she will not seek to challenge the enforceability of the covenants contained in Exhibit A to the Notice and Agreement against the Company or any of its affiliates, nor will Participant assert as a defense to any action seeking enforcement of the provisions contained in Exhibit A to the Notice and Agreement (including an action seeking injunctive relief) that such provisions are not enforceable due to lack of sufficient consideration received by Participant.

 

 

EXHIBIT B: RESTRICTED TERRITORY

 

For U.S. Employees: United States

 

For Mexican Employees: Mexico

 

For German Employees:  Germany

 

For Polish Employees: Poland

 

 

Exhibit C: Excluded Work Product

 

			
	
 
	
 
	
I have no inventions.

 

 

			
	
 
	
 
	
The following is a complete list of all Work Product relative to the subject matter of my Service with the Company that have been created by me, alone or jointly with others, prior to the Grant Date, which might relate to the Company’s present business:

 

 

		
	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 
	
 

 

			
	
 
	
 
	
Additional sheets attached.

 

							
	
Participant Signature:
	
 
	
/s/ Andreas Meyer
	
 
	
Date:
	
September 15, 2020
	
 

 

 

116087.000001  4844-8645-1131.3

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