Document:

exv10w45

 

ARI / ARL SERVICES SEPARATION AGREEMENT

     ARI / ARL SERVICES SEPARATION AGREEMENT (this “Services Separation Agreement”) made
this 30th day of March 2007, between AMERICAN RAILCAR INDUSTRIES, INC., a Delaware corporation
(“ARI”), and AMERICAN RAILCAR LEASING LLC, a Delaware limited liability company
(“ARL”), effective as of December 31, 2006 (the “Effective Date”).

RECITALS

     WHEREAS, ARI and ARL are parties to that certain Services Agreement dated as of April 1, 2005,
as amended June 30, 2005 (the “Transitional Services Agreement”), pursuant to which, among
other things (i) ARI provides ARL the ARI Services, which consist of Engineering Services and
Purchasing Services, as each such term is defined in the Transitional Services Agreement and (ii)
ARL provides ARI the ARL Services, which consist of Accounting and Finance Services, Employee
Compensation and Benefits Administration Services, Information Processing Services, Leasing
Services, Rent and Building Services, and Treasury Services, as each such term is defined in the
Transitional Services Agreement;

     WHEREAS, ARI and ARL each have developed, or are in the process of developing, the independent
ability to perform certain of the services currently performed for each such party by the other
under the Transitional Services Agreement; and

     WHEREAS, ARI and ARL desire to terminate certain of the services performed for each other
under the Transitional Services Agreement effective as of the Effective Date, and to otherwise
facilitate the termination of certain other remaining services under the Transitional Services
Agreement, in order to allow each such party to further separate its business from the other in
accordance with the terms and conditions set forth herein;

     NOW, THEREFORE, in consideration of these premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, ARI and ARL agree as
follows:

     1. Definitions. Unless otherwise defined herein, capitalized terms used in this
Services Separation Agreement shall have the meanings ascribed to such terms in the Transitional
Services Agreement and/or as the context shall require.

     2. Transitional Services Agreement.

          (a) ARI Services. The parties acknowledge and agree that the Term of and payment for
all of the ARI Services being provided by ARI to ARL pursuant to the Transitional Services
Agreement shall be terminated effective as of the Effective Date.

          (b) ARL Services. The parties acknowledge and agree that the Term of and payment for
all of the ARL Services being provided by ARL to ARI pursuant to the Transitional
Services Agreement, other than the Rent and Building Services, shall be terminated effective
as of the Effective Date.

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          (c) Rent and Building Services. The parties acknowledge that, in connection with the
Rent and Building Services, ARI currently pays a fee to ARL for use of ARI’s headquarters space,
which comprises a portion of office space leased by ARL from a third party lessor. All of the
space currently leased by ARL from the lessor is referred to herein as the “Space.” ARI and
ARL hereby covenant and agree: (i) to cooperate in good faith to restructure their leasing
arrangements with regard to the Space, as soon as reasonably practicable following the execution of
this Agreement, by entering into new leases, through the assignment of existing leases and/or
through other reasonable means (the “Lease Restructuring”); (ii) that the Term of the Rent
and Building Services provided by ARL to ARI under the Transitional Services Agreement shall be
terminated simultaneously with the effectiveness of the Lease Restructuring; and (iii) to take any
and all actions reasonably necessary to implement the foregoing. In connection therewith, ARL
hereby agrees to waive the six (6) month notice provision of Section 3.2(a) of the Transitional
Services Agreement with respect to the termination of the Term of the Rent and Building Services,
and acknowledges that the Rent and Building Services shall terminate simultaneously with the Lease
Restructuring.

          (d) Cooperation. Notwithstanding Sections 2(a) and 2(b) hereof, and subject to
Section 2(c) hereof, to the extent any ARI Services or ARL Services may be provided on a residual
basis after the Effective Date in order to achieve the orderly transition of services, each of ARI
and ARL hereby agrees to cooperate in good faith to effect the separation of the parties’
businesses contemplated hereby.

     3. Entire Agreement; Modification and Waiver. Except as expressly modified herein,
the terms of the Transitional Services Agreement remain in full force and effect. No provision of
this Services Separation Agreement may be waived, changed, altered, modified or amended in any
respect without a writing to that effect, signed by both of the parties hereto.

     4. Communications. All notices, requests, demands, consents, approvals, reports,
statements and other communications under this Services Separation Agreement shall be in writing
and shall be deemed to have been given (a) upon receipt when delivered by hand, overnight delivery
service or facsimile transmission with respect to which receipt has been acknowledged or (b) three
(3) business days after mailing, by registered or certified mail, postage prepaid, return receipt
requested or (c) upon delivery when delivered by email, and addressed to the party for whom
intended at the following addresses or such changed address as such parties may have fixed by
notice:

To ARL:

American Railcar Leasing LLC

100 Clark Street

St. Charles, Missouri 63301

Attention: Umesh Choksi, Chief Financial Officer

Telecopy no.: (636) 940-6044

Telephone no.: (636) 940-6000

Email: uchoksi@arleasing.com

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To ARI:

American Railcar Industries, Inc.

100 Clark Street

St. Charles, Missouri 63301

Attention: William P. Benac, Senior Vice President, Chief Financial Officer and Treasurer

Telecopy no.: (636) 940-6044

Telephone no.: (636) 940-6000

Email: wbenac@americanrailcar.com

provided, however, that any notice of change of address shall be effective only
upon receipt.

     5. Counterparts. This Services Separation Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

[Signature Page Follows]

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Executed as an instrument as of the date first above written.

	 	 	 	 	 
	 	AMERICAN RAILCAR LEASING LLC

 	 
	 	By:  	/s/ Umesh Choksi
 	 
	 	 	Name:  	Umesh Choksi 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 
	 	AMERICAN RAILCAR INDUSTRIES, INC.

 	 
	 	By:  	/s/ William P. Benac
 	 
	 	 	Name:  	William P. Benac 	 
	 	 	Title:  	Senior Vice President, Chief Financial Officer and Treasurer 	 
	 

The undersigned hereby agrees to

cooperate to effect the Lease

Restructuring:

	 	 	 	 	 
	ST. CHARLES PROPERTIES, a Missouri partnership

 	 
	By:  	/s/ James J. Unger 	 
	Name:  	James J. Unger 	 
	Title:  	General Partner 	 
	 

-4-Ex-10.1

 

EXHIBIT 10.1

Private and Confidential

SEVERANCE AND RELEASE AGREEMENT

     THIS SEVERANCE AND RELEASE AGREEMENT (“Agreement”) is made and entered into as of
February 26, 2007 (the “Effective Date”) by and between Jeffrey G. Roberts (“Employee”) and Wright
Medical Technology, Inc. (“Company”).

DEFINITIONS:

     A. As used herein, the term “Employee” shall mean Jeffrey G. Roberts, Employee’s heirs,
personal representatives, and assigns.

     B. As used herein, the term “Company” shall mean Wright Medical Technology, Inc., its parent,
subsidiaries, affiliates and divisions (including, but not limited to, Wright Medical Group, Inc.),
its and their respective successors and assigns, and all of the past and present officers,
directors, employees and agents of such entities, in their individual and representative
capacities.

     WHEREAS, the Employee and the Company desire to settle and resolve all matters pertaining to
Employee’s employment with Wright Medical Technology, Inc. and the termination of that employment;

     NOW THEREFORE in consideration of the promises, agreements, releases and obligations as
hereinafter set forth, it is agreed by the Employee and the Company as follows:

     1. The Employee unconditionally releases the Company from any and all causes of action and
liability related to the Employee’s hire, employment, and termination of employment at the Company
occurring prior to and up to the effective date of this Agreement, including, but not limited to,
any and all breach of contract claims, common law tort claims, claims of discrimination, claims for
compensation and benefits (including claims under the Employee Retirement Income Security Act of
1974, as amended), as well as any and all claims which the Employee may have under or in connection
with any and all local, state or federal ordinances, statutes, or common law. The only exclusion
from this release is a claim that some term of this Agreement has been violated. The Company
represents to the Employee that as of the date of this Agreement, it does not have or know of any
claims or causes of actions which it may have against the Employee. The Employee shall be entitled
to indemnification by the Company for acts arising in the course of the Employee’s employment in
accordance with and subject to the indemnification provisions contained in the Certificate of
Incorporation and/or Bylaws of the Company as in effect from time to time.

 

 

     2. Employee agrees to resign from the position of Senior Vice President and Chief Technology
Officer and as an officer of the Company’s affiliates or subsidiaries as and when requested by the
Company. The Employee’s employment with the Company will be terminated at the close of business on
April 5, 2007 (the “Termination Date”).

     3. The Employee certifies that (a) this Agreement is fully understood by the Employee and is
entirely satisfactory to the Employee, (b) the Employee’s signing of this Agreement is the
Employee’s own free and informed act and deed, and (c) the Employee has been given the opportunity
to discuss it with counsel of the Employee’s choosing.

     4. The Employee acknowledges that they are currently able to work in their current position
without limitations, either physical or mental and without any accommodation for any physical or
mental ailment.

     5. To the extent permitted by law, the Employee and the Company agree that each will maintain
the strictest secrecy and will not disclose the terms of this Agreement to any person or entity,
except (a) where such disclosure is required by law or compelled pursuant to legal process, (b) for
reporting purposes to federal, state, or local governmental authorities, or (c) in discussions with
legal and financial advisors and the Employee’s immediate family members. The Employee further
agrees not to disclose to any person any matters relating to the confidential business affairs of
the Company or the confidential business affairs or the personal affairs of any officer, director
or employee of the Company, or to take any action or make any written or oral statement at any time
which could tend, in the sole discretion of the Company, to disparage, demean or embarrass the
Company, or its subsidiaries, divisions, officers, directors or employees. The Company shall not
take any action or make any statement to disparage, demean, or embarrass the Employee. The Company
shall confirm the last job title of Employee and confirm the dates of employment for Employee. The
Company shall provide Employee with a letter of reference which is attached to this Agreement.

     6. With respect to the Employment Agreement dated as of November 22, 2005 between the Company
and the Employee (collectively, the “Employment Agreement”), the Employee agrees (a) that the
Employee is not entitled to any compensation or benefits under the Employment Agreement other than
as provided in paragraphs 4, 5, and 6 thereof through the Effective Date; (b) to comply with the
covenants and to perform his obligations in full under the provisions of paragraphs 9, 10 and 11 of
the Employment Agreement; and (c) that in the event of any breach or threatened breach by the
Employee of any provision of paragraphs 9,

 

 

10 and 11 of the Employment Agreement, the Company shall
be entitled to any and all rights and remedies available to the Company under paragraphs 11(c) and
12 of the Employment Agreement or otherwise.

     7. The Employee hereby delivers to the Company an executed original of the ADEA Release and
Agreement attached hereto as Exhibit A, which releases the Company from any and all liabilities
under the Age Discrimination in Employment Act of 1967, as amended.

     8. Upon request by the Company, the Employee agrees to cooperate with the Company during the
Severance Period (as defined herein), without further compensation by the Company other than for
reasonable and necessary expenses, by meeting with and providing information to the Company’s
representatives and others relating to the Employee’s duties performed heretofore or any
governmental or other investigation or litigation involving or affecting the Company. After the
Severance Period, the Employee agrees to further cooperate with the Company as provided above, and
the Company agrees to compensate the Employee for the time and expenses related to such cooperation
on a reasonable and customary basis. The person through whom this information shall be requested
by the Company will be the Employee’s direct report as the date of this Agreement or such person’s
designee.

     9. This Agreement, and any dispute arising in connection with its operation or execution,
shall be construed in accordance with and governed by the statutes and common law of the State of
Tennessee and shall be resolved by binding arbitration in Memphis, Tennessee. Each party to this
Agreement will select one arbiter. The two arbiters so selected shall then select a third arbiter.
Decisions of the arbitration panel shall be binding upon the parties hereto. The prevailing party
shall be entitled to have all expenses, including, but not limited to, attorney fees and any fees
submitted by the arbitrators to be paid by the non-prevailing party.

     10. This Agreement, together with paragraphs 9, 10, 11 and 12 of the Employment Agreement,
reflect the entire agreement of the parties relating to the subject matter hereof and supersede all
prior or contemporaneous oral or written understandings, statements, representations, promises,
arrangements or agreements between the parties. The Confidentiality and Inventions Agreement
between the parties remains in full force and effect.

     11. The parties agree that each provision of this Agreement is severable and further agree
that if any term or provision is held to be invalid, void, or unenforceable by a court of competent
jurisdiction or an administrative agency for any reason whatsoever, such ruling shall not affect
the validity of the remainder of this Agreement.

 

 

     12. In consideration and exchange for this Agreement and the ADEA Release and Agreement, the
Company shall provide to the Employee the following:

          (a) an amount in cash equal to the Base Salary (as defined in the Employment Agreement) of the
Employee with respect to a period of twelve (12) months after the Termination Date (the “Severance
Period”), which amount (after deduction of applicable payroll taxes) shall be paid to the Employee
in accordance with the Company’s customary payroll practices in effect from time to time and with a
final payment of the remaining balance on March 10, 2008;

          (b) an amount in cash equal to the Base Salary equivalent of the Employee’s earned and unused
vacation for 2007, if any, which amount (after deduction of applicable payroll taxes) shall be paid
to the Employee within thirty (30) days after the Termination Date;

          (c) an amount in cash equal to the total premiums payable by the Employee for continued group
medical, dental and vision plan coverage under COBRA at the current COBRA rate during the twelve
(12) month period immediately following the Termination Date, which amount (after deduction of
applicable payroll taxes) shall be paid to the Employee within thirty (30) days after the
Termination Date;

          (d) professional outplacement services provided by Russell, Montgomery & Associates at the
Executive Career Transition Program; and

          (e) the attorney’s fee for review of this Agreement and the ADEA Release and Agreement of up
to $200, which amount shall be paid to the Employee within thirty (30) days after the Effective
Date.

          Any stock options that the Employee has are governed by the specific stock option agreement
and the applicable stock option plan, and this Agreement does not supersede those stock option
agreements and plans. The Employee is urged to review such stock option agreements and plans for
the specific terms that apply to his stock options.

 

 

          THE EMPLOYEE ACKNOWLEDGES THAT EMPLOYEE READ THIS SEVERANCE AND RELEASE AGREEMENT, THAT
EMPLOYEE UNDERSTANDS ALL OF ITS TERMS AND EXECUTES IT VOLUNTARILY AND WITH FULL KNOWLEDGE OF ITS
SIGNIFICANCE AND THE CONSEQUENCES THEREOF.

AGREED AND ACCEPTED as of the Effective Date.

	 	 	 	 	 	 	 
	EMPLOYEE:	 	WRIGHT MEDICAL TECHNOLOGY, INC.
	 
	 	 	 	 	 	 
	/s/ Jeffrey G. Roberts
 

	 	By:
	 	/s/ Jason P. Hood
 

	 	 
	Jeffrey G. Roberts

	 	 	 	     Jason P. Hood, Vice President	 	 
	 

	 	Title:
	 	General Counsel and Secretary	 	 
	 

	 	 	 	     Mar 30 2007	 	 

 

 

Private and Confidential

EXHIBIT A

ADEA RELEASE AND AGREEMENT

     As a material inducement to Wright Medical Technology, Inc. (hereinafter referred to as
“Wright” or “Employer”) to enter into this ADEA Release and Agreement (the “Release or “Agreement”)
with Jeffrey G. Roberts (hereinafter referred to as “Employee”) (for Employee, Employee’s heirs,
executors, administrators and assigns), Employee hereby unconditionally releases and forever
discharges Wright and each of the Wright’s stockholders, predecessors, successors, assigns, agents,
directors, officers, employees, representatives, attorneys, divisions, subsidiaries, affiliates and
all persons acting by, through, under, or in concert with any of them from any and all charges,
complaints, claims, liabilities, obligations, promises, agreements, controversies, damages,
actions, causes of action, suits, rights, demands, costs, losses, debts and expenses (including
attorney’s fees and costs actually incurred) of any nature whatsoever, known or unknown, suspected
or unsuspected, including, but not limited to, rights, under the Age Discrimination in Employment
Act of 1967, as amended from time to time, and other federal, state, or local laws prohibiting
discrimination, any claims the employee may have with regard to Employee’s hiring, employment, or
electing the re-employment program and termination of employment claims growing out of any legal
restrictions on Wright’s right to terminate its employees (“Claim” or Claims”), which the Employee
now has, owns or holds, or claims to have owned or held, or which the Employee at any time
hereinafter may have owned or held or claimed to have owned or held against Wright.

     To comply with the Older Workers Benefit Protection Act of 1990, as amended from time to time,
the Release and Agreement has advised Employee of the legal requirements of this Act and fully
incorporates the legal requirements by reference into this Agreement as follows:

	 	a.	 	This Agreement is written in layman’s terms, and the Employee understands and
comprehends its terms;
	 
	 	b.	 	Employee has been advised of Employee’s rights to consult an attorney to review
the Agreement;
	 
	 	c.	 	Employee does not waive any rights or claims that may arise after the date the
Release is executed;
	 
	 	d.	 	Employee is receiving consideration beyond anything of value to which he
already is entitled;
	 
	 	e.	 	Employee has been given a reasonable period of time to consider this Agreement.

     As consideration for this Release, Wright agrees to provide the items listed previously in
paragraph 12 of the Severance and Release Agreement dated February 26, 2007. The Employee enters
into this Release with full knowledge of its contents and enters into this Agreement voluntarily.

 

 

	 	 	 
	ADEA Release and Agreement

February 26, 2007

Page 2

	 	Private and Confidential

AGREED AND ACCEPTED

	 	 	 	 	 	 	 	 	 
	EMPLOYEE:	 	WRIGHT MEDICAL TECHNOLOGY, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	I acknowledge that I fully
understand and agree that this
Agreement may be pleaded by
Wright Medical Technology, Inc.
as a complete defense to any
claim which hereafter may be
asserted by me or a claim
against Wright Medical
Technology, Inc. for or on
account of any matter or thing
whatsoever arising out of the
employment relationship or my
termination from active
employment.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Jeffrey G. Roberts	 	By:	 	/s/ Jason P. Hood	 	 
	 	 	 	 	 	 	 
	Jeffrey G. Roberts	 	 	 	Jason P. Hood, Vice President	 	 
	 

	 	 	 	Title:
	 	General Counsel and Secretary	 	 
	 
	 	 	 	 	 	 	 	 
	SWORN TO AND SUBSCRIBED, before me, a Notary
Public, in my presence this 22nd day of
March, 2007	 	SWORN TO AND SUBSCRIBED, before me, a Notary
Public, in my presence this 30th day of
March, 2007
	 
	 	 	 	 	 	 	 	 
	(SEAL)

	 	/s/ Samia Sidhom
 

Notary Public
	 	 	 	/s/ Thomas L. McAllister
 

Notary Public
	 	 
	 
	 	 	 	 	 	 	 	 
	County of      Shelby	 	Shelby County                (SEAL)

Tennessee
	 
	 	 	 	 	 	 	 	 
	State of      Tennessee	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	My Commission Expires:     July 28, 2009	 	My Commission Expires:      1-29-2008

NOTE: EMPLOYEE IS HEREBY ADVISED OF THE RIGHT TO RESCIND AND NULLIFY THIS AGREEMENT, WHICH RIGHT
MUST BE EXERCISED, IF AT ALL, WITHIN SEVEN (7) DAYS OF THE DATE OF EMPLOYEE’S SIGNATURE. EMPLOYEE
MUST REVOKE RELEASE BY LETTER TO WRIGHT MEDICAL TECHNOLOGY, INC., ATTENTION: GENERAL COUNSEL, 5677
AIRLINE ROAD, ARLINGTON, TN 38002, WITHIN SEVEN (7) DAYS. NO CONSIDERATION SHALL BE CONVEYED UNTIL
SUCH TIME PERIOD HAS EXPIRED.

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