Document:

gtx-ex101_126.htm

 

Exhibit 10.1

AGREEMENT 

among

Garrett Motion Sàrl
Zone d’activités La Pièce 16,
1180 Rolle 

(the “Company”)

Garrett Motion Inc.
251 Little Falls Drive 
Wilmington New Castle County 
Delaware 19808 

(“GTX”)

and

Alessandro Gili

(the “Employee”)

WHEREAS:

	
 
	
(A)
	
The Company as employer and the Employee have entered into an employment agreement made on May 2, 2018 (the “Employment Agreement”).

	
 
	
(B)
	
The Employee is Senior Vice President and Chief Financial Officer of the Company and an executive officer of GTX.

	
 
	
(C)
	
The Company, GTX and the Employee have decided to enter into this Agreement in order to set forth the terms and conditions of the termination of the Employment Agreement and executive officer by mutual consent in full and final settlement of any claims there under.

 

 

NOW, THEREFORE, the Company and the Employee (the “Parties”) agree as follows:

	
1.
	
Termination of Employment Agreement

	
 
	
(a)
	
The Parties hereby agree that the Employment Agreement shall terminate with effect at the latest on February 29, 2020 (the “Termination Date”). Should the Employee find a new position and provided that the company he would join is not a Competing Business as defined in the Non-compete Agreement referred to in Section 4 below, the Employee shall have the right to anticipate the termination of the Employment Agreement to an earlier date (the “Earlier Termination Date”) by giving notice to the Company by registered letter seven (7) days in advance. In consideration that the Final Payment is exceeding contractual minimum requirements, the Employee hereby agrees that the term of his employment contract shall not be postponed to a later date than the Termination Date or the Earlier Termination Date in case of any incapacity (such as illness or accident) occurring before the Termination Date or the Earlier Termination Date.

	
 
	
(b)
	
The Employee will resign from his position of executive officer, Senior Vice President and CFO of the Company and GTX with effect from September 30, 2019.

	
 
	
(c)
	
The Employee shall be irrevocably released from the obligation to work from September 30, 2019. The Employee undertakes to provide the Company with all information and assistance necessary to allow a smooth transition of his duties. If required by the Company, the Employee will provide such information and assistance after the Termination Date or the Earlier Termination Date, if applicable for a period of six months.

	
 
	
(d)
	
The Employee further undertakes to sign any document provided in compliance with this Agreement and necessary to reflect the termination of the employment relationship.

	
 
	
(e)
	
From the date of signature of this Agreement until the earliest to occur between the Termination Date or the Earlier Termination Date, all the remaining vacation days will be deemed, as part of this Agreement, to be taken by the Employee.

	
2.
	
Compensation

	
 
	
(a)
	
The Company shall pay to the Employee his usual salary, subject to all legal and contractual deductions, as well as the cash allowance in accordance with the applicable Company Car Policy until the earliest to occur between the Termination Date and the Earlier Termination Date.

	
 
	
(b)
	
In consideration for his acceptance of the undertakings and obligations under this Agreement, the Company shall pay to the Employee a severance payment in the amount of CHF 1’450’000.00 gross. In addition, the Company shall pay to the Employee a prorated Annual Incentive Compensation pursuant to Art. 5 of the Employment Agreement in the amount of CHF 328’845.00 gross. The Employee acknowledges that these payments include all and any amounts due to, or which 

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might be claimed by, the Employee whether as salary, bonus, remuneration under the Annual Incentive Compensation or the Annual Long Term Incentive Award, severance, or for any other ground based on, or in relation with the Employee’s employment with the Company or office with GTX or any of its affiliates (the “Final Payment”).

	
 
	
(c)
	
The Final Payment set forth in Section 2(b) above will be paid within 15 days after the earliest to occur between the Termination Date or the Earlier Termination Date on the Employee’s usual salary account.

	
 
	
(d)
	
It is expressly understood that the Final Payment shall be paid after deduction of all applicable social security contributions and, as the case may be, as of any payroll taxes or other deductions which might be due pursuant to the legislation applicable to such payments. Upon request of the Employee, the Company undertakes to collaborate in relation to the termination of the complementary pension plan with AXA Life Ltd.

	
 
	
(e)
	
The Company shall pay the reasonable costs of the Employee’s relocation to his home country, i.e. Italy. Shipment expenses (for furniture and personal belongings) for the Employee shall be directly paid by the Company to the service providers appointed by the Employee. The Employee will first submit quotes to be approved by the Company, before any expense will be paid. The Company will only pay such costs provided that the Employee relocates to Italy in the period of twelve months from the date of signature of this Agreement.

	
 
	
(f)
	
The Company shall also bear the costs of the preparation of the Employee 2019 tax return and the Employee 2020 tax return, in case the Employment Agreement terminates after December 31, 2019.

	
3.
	
Equity

	
 
	
(a)
	
In addition to the payment set forth in Section 2 above, the Employee acknowledges that he was granted 111’139 Company restricted stock units, 55’570 of which vested in accordance with the terms of the Employment Agreement and the applicable Stock Incentive Plan of the Company. Notwithstanding the terms of the Employment Agreement and the applicable Stock Incentive Plan of the Company, the retention ratio on such 55’570 vested stock units will not apply and the Employee will have full and unconditional disposal on such 55’570 vested stock units as of October 1st, 2019. The remaining 55’569 unvested stock units shall vest as of the Termination Date or Earlier Termination Date. The Company agrees that the retention ratio and the forfeiture provisions will not apply on such 55’569 stock units and the Employee will have full and unconditional disposal on such 55’569 stock units as of their vesting date.

	
 
	
(b)
	
The Employee acknowledges that all the other equity awards granted to him will not vest by either the Termination Date or the Earlier Termination Date and shall thus be forfeited.

3

 

	
4.
	
Non-compete agreement

The Employee agrees that as a condition of settlement, he will comply with the terms of Honeywell AG (Switzerland) Non-compete Agreement for Senior Executives signed by the Employee on April 23, 2018, together with its Addendum, substituting all existing references to Honeywell AG (Switzerland) and TS Spinco to be replaced by Garrett Motion Sàrl and existing references to Honeywell International to be substituted by Garrett Motion Inc. Such agreement with the Company shall remain valid and in force for a period of two (2) years following the earliest to occur between the Termination Date and the Earlier Termination Date.

	
5.
	
Return of Property

The Employee shall, on or before the Termination Date or Earlier Termination Date, return all Company property and information he has received in the course of his employment with the Company, including but not limited to documents, laptop computer, computer‐generated information, reports, books, studies, data, credit cards, employee identification, access cards and other such materials and he shall retain no copies of any such property or information. All of the above property shall be in good condition, save for normal wear and tear.

	
6.
	
Confidentiality

	
 
	
(a)
	
The Employee hereby undertakes to keep the terms hereof strictly confidential and not to disclose them to any third party unless required by law or any court or governmental authority. The termination of the Employment Agreement pursuant to the terms hereof shall not relieve the Employee from his obligation to keep confidential any confidential and/or non-public information pertaining to the Company and/or its affiliates and/or their activities that has been disclosed and/or became known to her during the term of the Employment Agreement.

	
 
	
(b)
	
The Company and GTX hereby undertake to keep the terms hereof strictly confidential and not to disclose them to any third party unless required by law or any court or governmental authority or reporting requirements. Within the Company and GTX, the terms hereof must remain strictly confidential and access to this Agreement shall be limited to the maximum extent possible.

	
7.
	
Non-Disparagement

	
 
	
(a)
	
The Employee shall not make, participate in the making of, or encourage any other person to make, any public statements, written or oral, which are intended to criticize, disparage, or defame the goodwill or reputation of, or which are intended to embarrass the Company and/or any of the Company’s directors, officers, executives, employees, partners, stakeholders, agents or attorneys. The Employee further agrees not to make any negative public statements, written or oral, relating to the employment, the termination of employment, and/or any aspect of the business of the Company.

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(b)
	
The Company and any Company’s affiliates shall not make, participate in the making of, or encourage any other person to make, any public statements, written or oral, which are intended to criticize, disparage, or defame the goodwill or reputation of, or which are intended to embarrass the Employee. The Company and any Company’s affiliates further agrees not to make any negative public statements, written or oral, relating to the employment, the termination of employment, and/or any aspect related to the Employee and its contribution to the Company.

	
 
	
(c)
	
The Company further acknowledges that the Parties will agree on a common language on in particular the reasons for termination and with the wording set forth in Annexe 1 to this Agreement. No other external communication which is inconsistent with the general wording of Annexe 1 shall be made without the prior written consent of the Employee.

	
8.
	
Work Certificate

The Company shall deliver a work certificate to the Employee by September 30, 2019.

	
9.
	
Accident and Loss of Earnings Insurances

	
 
	
(a)
	
The Employee acknowledges that the Company’s accident insurance cover will expire 31 days after the Termination Date or Earlier Termination Date. The Company therefore recommends the Employee to contract or change the terms of his current medical insurance to cover global risks on occupational and non‐occupational accidents if he has not contracted employment with another employer in Switzerland after this date.

	
 
	
(b)
	
The Employee also acknowledges that, after the Termination Date or Earlier Termination Date, he will no longer be insured by the Company’s collective insurance for loss of earnings in case of accidents and illness. The Employee acknowledges that he has to undertake the necessary steps in writing with the Company’s insurance within ninety (90) days after the Termination Date if the employee wants to continue this insurance on an individual basis.

	
10.
	
Directors and Officers Liability Insurance

	
 
	
(a)
	
The Directors and Officers liability insurance provided in relation to the Employee’s office as officer of GTX. shall continue for an unlimited period of time, subject at all times to the terms of GTX’s relevant insurance policy. For the avoidance of doubt, the costs of such insurance are to be borne by GTX.

	
 
	
(b)
	
The Company undertakes to cover the Employee’s costs wholly and necessarily incurred in relation to legal action by a third party involving the GTX Board of Directors or officers, including but not limited to travel expenses and attorney fees.

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11.
	
Discharge

By September 30, 2019, the Company undertakes to grant the Employee full, complete and unconditional discharge from his executive and officer duties of the Company and GTX under Swiss and U.S. law respectively.

	
12.
	
Full and Final Settlement

In consideration for the Final Payment, the Employee irrevocably and unconditionally releases and forever discharges the Company and GTX and its affiliates, including without limitation their directors, officers, executives, partners, stakeholders, agents, attorneys, insurers and employees, past and present, and each of them, from any and all claims in full and final settlement of any rights or obligations that may exist on the date hereof or at any time hereafter in connection with or arising out of the Employment Agreement and/or this Agreement. The Company agrees that in connection with the Employment Agreement and/or this Agreement, any and all claims of the Company against the Employee shall be considered to be discharged and settled in full.

	
13.
	
Binding Effect

This Agreement shall enter into effect upon its execution. 

	
14.
	
Written Form

This Agreement may not be modified or amended except by written amendments duly executed by the Parties. This requirement of written form can only be waived in writing.

	
15.
	
Voluntary Nature

The Employee acknowledges that he enters this Agreement voluntarily and willingly after having had sufficient time to assess this Termination Agreement with a qualified lawyer of his choice.

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16.
	
Governing law and Jurisdiction

	
 
	
(a)
	
This Agreement shall be governed by Swiss substantive law in all respects.

	
 
	
(b)
	
The courts of Geneva shall have exclusive jurisdiction for any dispute arising out of or in connection with this Agreement.

This Agreement is executed in two counterparts in Rolle, Switzerland, on September 2, 2019.

			
	
/s/ Fabrice Spenninck
	
 
	
/s/ Alessandro Gili

	
[name of signatory]
	
 
	
Alessandro Gili

	
On behalf of Garrett Motion Sàrl

CHRO & Communications Officer
	
 
	
 

 

 

		
	
/s/ Fabrice Spenninck 
	
 

	
[name of signatory]
	
 

	
On behalf of Garrett Motion Sàrl

CHRO & Communications Officer
	
 

 

 

 

7

 

Annexe 1

[Agreed Form of Press Release]gtx-ex102_240.htm

Exhibit 10.2

 

 

May 31, 2018 

 

Peter Bracke
Z.A. La Piece 16 
Rolle, VD, 1180 
CHE

 

Re: Offer Letter

Dear Peter:

I am pleased to confirm our offer to you to become the Vice President, Financial Planning & Analysis and Commercial Finance of Honeywell Transportation Systems (“TS”), a strategic business unit of Honeywell International Inc. (“Honeywell”). This offer, which will be effective on a mutually agreed upon date (“Effective Date”), is based in Rolle, Switzerland and reports directly to Olivier Rabiller, President & CEO of TS.1 As you know, we anticipate that TS will be spun off as an independent public company (the “Company”) on or about June 30, 2018 (the actual spin-off date, if applicable, is hereinafter referred to as the “Separation Date”). Your employment with Honeywell (and ultimately the Company) shall be subject to the terms and conditions of this offer letter.

In connection with your new role, you will be entitled to the following compensation and benefits package:

COMPENSATION

Base Salary: As of the Effective Date, your annual base salary will be CHF 360,000. After the Separation Date, any base salary adjustments shall be made by the Company’s Board of Directors from time to time. Adjustments will be based on your performance and other relevant factors.

	
	 

	
1 
	
 Upon the installation of TS’s new Chief Financial Officer, you will report directly to such Chief Financial Officer.

 

*For Employee File Management Purpose Only

Page 1 of 4

 

US-DOCS\111549657.1

Annual Incentive Compensation From the Company: As of the Effective Date, your target incentive compensation opportunity will be 40% of your annual cash base salary earnings during the year. For 2018, your incentive compensation award will be prorated based on the number of days your target incentive was 45% and the number of days your target incentive will be 40%. Incentive compensation awards are paid in the first quarter of the following year.

For the full 2018 performance year, your incentive compensation award shall be paid entirely by the Company (i.e., no pro-rated incentive award shall be paid by Honeywell), provided the spin is effectuated as planned.

Annual Long-Term Incentive Awards From the Company: As of the Separation Date, you will be eligible for annual long-term incentive (“LTI”) awards with an initial target value of 100% of your Base Salary. The size and mix of future LTI awards will be determined by the Company’s Board of Directors based on your performance and future career potential. The terms of all LTI awards will be governed by the terms of the applicable stock plan and the relevant award agreements.

Honeywell Growth Plan Units: The second tranche of your award for the 2016-2017 Growth Plan performance cycle shall be paid out in the normal course during the first quarter of 2019. You understand and acknowledge that Honeywell may assign the liability for such amount to the Company and you agree and acknowledge that any such payments received from the Company shall be in full satisfaction of Honeywell’s liability for such payments.

Vested Honeywell Stock Options: You will retain any vested Honeywell stock options. Notwithstanding anything in the Stock Incentive Plan of Honeywell International Inc. and its Affiliates (the “Stock Incentive Plan”) and governing award agreements to the contrary, you will have the original full remaining term to exercise such vested stock options.

Unvested Honeywell Stock Options: Any Honeywell stock options that were granted prior to 2018 and have not vested as of Separation Date shall be replaced with Company restricted stock units. Such Company restricted stock units shall vest on the same dates as the underlying unvested Honeywell stock options that were replaced.

2018 Honeywell Stock Options: Honeywell stock options granted in 2018 that have not vested as of Separation Date shall be replaced with Company restricted stock units at their original grant date value (i.e., the Black-Scholes value). Such Company restricted stock units shall vest on the same dates as the underlying unvested 2018 Honeywell stock options that were replaced.

Honeywell Time-Based Restricted Stock Units: Any unvested Honeywell time-based restricted stock units shall be replaced with Company restricted stock units. Such Company restricted stock units shall vest on the same schedule as if they had remained Honeywell restricted stock units.

Honeywell Performance Plan Units: Your Honeywell Performance Plan units for the 2017-2019 performance cycle shall be replaced with Company restricted stock units based upon the then latest estimate of Honeywell performance for the 2017-2019 performance cycle. Such Company restricted stock units shall vest on the same schedule as if they had remained Honeywell Performance Plan units. Your Honeywell Performance Plan units for the 2018-2020 performance cycle shall be forfeited.

Deal Incentive: You will receive an Incentive Payment of CHF 110,000 in full satisfaction of the Company’s liability to you under the letter agreement dated November 27, 2017 (the “Letter”). However, this payment shall be expressly conditioned upon (a) your acceptance of this role, (b) the successful spin-off of TS by September 30, 2018, (c) the achievement of Page 2 of 5 the cost and quality metrics set forth in the Letter relative to the TS spin-off, (d) you maintaining your current performance level and continued adherence to Honeywell’s Code of Conduct, and (e) you remaining employed by the Company for 90 days after the TS spin-off (you will be treated as satisfying this criterion if the Company terminates your employment other than for cause prior to end of such 90-day period).

You understand and acknowledge that Honeywell may assign the liability for such amount to the Company and you agree and acknowledge that any such payments received from the Company shall be in full satisfaction of Honeywell’s liability for such payments.

For purposes of this offer letter, unless otherwise noted, whenever Honeywell equity awards are being converted into Company equity awards, such conversion shall be based on (i) the “regular‐way” closing price of Honeywell common stock on the last trading day immediately prior to the Separation Date, and (ii) the “when-issued” closing price of Company common stock on the last trading day immediately prior to the Separation Date.

OTHER EXECUTIVE BENEFITS

You will also be entitled to the following Executive Benefits after the Separation Date:

	
 
	
•
	
Welfare and Retirement: As provided to other employees of the Company (to be determined).

	
 
	
•
	
Vacation: As provided to other executives of the Company (to be determined).

	
 
	
•
	
Executive Severance: As provided to other executives of the Company (to be determined).

INTELLECTUAL PROPERTY AND NON-COMPETITION AGREEMENTS

As a condition of this employment offer, you will be required to execute, in a form substantially similar to the corresponding Honeywell agreements, (i) the Company’s intellectual property agreement, and (ii) the Company’s noncompete agreement for senior executives, prior to the Separation Date.

AGREEMENT TO TRANSFER

As you are aware, Honeywell has announced its intention to spin-off it’s TS business in the summer of 2018. By accepting this position, you are acknowledging and consenting to the anticipated spin-off of the TS business by Honeywell. Therefore, you agree that the position you have accepted is dedicated to the Company and, as a result, could trigger the transfer of your employment contract. Accordingly, you agree that you (i) will not claim constructive dismissal from Honeywell, (iii) will not assert any rights under (A) the Acquired Right Directive, or (B) any local implementing laws or similar provisions to that effect, with respect to any transfer of your employment contract, and (iii) have been fully informed of the terms and conditions of your employment incident to the spin-off of Honeywell’s TS business, and that those terms and conditions may change if and when that business becomes an independent public company.

ACCEPTANCE OF OFFER

Please indicate your acceptance of this offer by electronically signing this offer letter via DocuSign.

Peter, we are excited to be extending this offer to you and look forward to your anticipated success with the Company.

If you have any questions or need any further information about our offer, please contact me directly.

Congratulations,

 

/s/ Olivier Rabiller

Olivier Rabiller 
President and CEO
Honeywell Transportation Systems 

 

Read and Accepted:

				
	
/s/ Peter Bracke
	
 
	
June 4, 2018
	
 

	
 
	
 
	
 
	
 

	
PETER BRACKE (E169642)
	
 
	
Date
	
 

 

All businesses experience changing conditions. Accordingly, we reserve the right to change work assignments, reporting relationships and staffing levels to meet business needs. There is no guarantee of employment for any specific period.

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