Document:

Exhibit 10.3

 

 

August 18, 2011

 

David James Stevens

[address]

 

Dear David,

 

We are delighted to offer you the position of Managing Director of Investment Technology Group, Inc., as Head of the US and Latin America, (“ITG” or the “Company”), in accordance with the terms stated herein (the “Agreement”).   You will report to Robert C. Gasser in the New York office located at 380 Madison Avenue, New York, NY.  All compensation described herein is subject to applicable taxes and other withholdings.

 

1.               Your expected first day of employment with ITG in the US will be October 1, 2011 (the “Start Date”).  You will be eligible for compensation as follows:

 

a)              Your base salary will be paid to you at a semi-monthly rate of $20,833.33 (the “Base Salary”) in equal installments on approximately the 15th and the last day of each month as determined by the Company and in accordance with its payroll practices.

 

b)             Contingent upon the performance of the Company and your performance, you may also be eligible for  a discretionary annual bonus pursuant to the Company’s discretionary bonus program, a portion of which, at the Company’s sole discretion, may be awarded in Stock Units (“Stock Award”).  Any such Stock Award shall be subject to terms and conditions which are consistent with ITG’s 2007 Omnibus Equity Compensation Plan (“Equity Plan”), as may be amended from time to time.   Such bonuses, if paid, shall be awarded within sixty (60) days of the end of the Company’s fiscal year-end (currently, December 31).  The amount of any bonus paid by ITG shall be determined at the sole discretion of the Company, and the award of a bonus in one year does not guarantee or imply the award of a bonus in any future year. In no event will you be eligible for, and you shall not be entitled to, earn or receive, any discretionary bonus if you are not an employee of ITG in good standing on the date such bonuses are paid.

 

2.               Your employment with the Company is contingent upon:

 

a)              your acceptance of all applicable Company policies and agreements, including, but not limited to, the Employment Agreement With Respect To Non-Solicitation and Confidential and Proprietary Information and the Notice Policy; and

 

b)             your providing proper documentation demonstrating your eligibility to work in the United States;

 

3.               This Agreement (once you are employed by ITG in the U.S.) supersedes the employment agreement dated August 16, 2010 between you and ITG Securities (Asia) Limited and any other related documents.

 

4.               Your employment will be subject to all applicable laws, rules, regulations and ITG policies as may be in effect, including ITG’s compliance and regulatory procedures.

 

5.               You will be entitled to participate in the same benefit programs provided to all full-time employees of ITG in accordance with the plans’ terms, which may be terminated or amended by ITG from time to time in its sole and absolute discretion. Notwithstanding the foregoing, you will be entitled to 5 weeks of vacation each year.  You may be fingerprinted in accordance with SEC Rule 17f-2.

 

6.               You will be expected to devote your full working time and attention and all of your efforts, skills, and abilities to performing your duties in the sole interest of ITG.  By signing this letter you confirm that you are not subject to, and you will not be in violation or breach of, any agreement or restriction that in any

 

 

way prohibits you from working with us and performing your duties.  You also agree that you will not disclose to ITG any confidential information of any third party.

 

7.               You are required to maintain all licenses and registrations necessary to perform your job duties during the course of your employment with ITG.

 

8.               If your employment contract is terminated by ITG without Cause (as defined in Appendix A), and not (i) due to your death or disability or (ii) in connection with a change in control of the Company, at any time prior to the third anniversary of your Start Date, then:

 

a)              ITG shall pay you, through the date of your termination of employment, your base salary at the rate then in effect in accordance with the standard payroll practices of ITG together with your housing allowance described below, and you will continue to participate in ITG’s benefit plans until the termination of your employment;

 

b)             ITG shall pay you an amount in cash equal to your Average Bonus (as defined below) pro rated for the number of full and partial months during the calendar year in which such termination of employment occurs, and such payment shall be made in a lump sum within 7 days after the date of such termination of employment (or, if the Average Bonus is calculated based upon the actual achievement of applicable performance objectives, then at the time provided in accordance with the applicable terms of any applicable bonus plan in effect during the year in which your termination of employment occurs); and

 

c)              ITG shall pay you an amount in cash equal to one (1) times the sum of (A) your annual base salary in effect immediately prior to the date of your notice of termination of employment, and (B) your Average Bonus; and such payment shall be made in a lump sum within 7 days after the date of such termination of employment (or, if the Average Bonus is calculated based upon the actual achievement of applicable performance objectives, then the payment representing your Average Bonus amount will be paid at the time provided in accordance with the applicable terms of the bonus plan in effect during the year in which your termination of employment occurs).

 

Average Bonus means the average of the annual bonuses paid to you by ITG or any ITG group company for the three years immediately preceding the year in which your termination of employment with ITG occurs. For the avoidance of doubt, annual bonuses shall include any bonus amounts paid in the form of Basic Units awarded under the Company’s Equity Deferral Award Program Subplan (or any successor plan thereto).

 

9.               In addition to the payments and benefits described above, ITG shall provide you with the following additional benefits.

 

A.           The Company will coordinate with its Immigration Representative to assist in obtaining the proper visas and work permits for you, and visas for your family.  To the extent that you pay any visas, passport, and/or immigration expenses personally, you will be reimbursed per the instructions provided to you.

 

B.             Upon receipt of this Agreement signed by you, and confirmation that your pre-transfer tax consultations were conducted, ITG will provide a lump sum payment to you in accordance with the Company’s International Transfer Policy.

 

C.             The Company will assist you in contracting with a relocation company to move your household belongings to your new location.  You will be entitled to (a) air ship 500 pounds plus 250 pounds per additional family member to your new location and (b) surface ship your other household goods, limited to a 40-foot container, in each case in accordance with the International Transfer Policy.

 

D.            During the first three years of your assignment in New York, ITG will provide you with a gross housing allowance of up to $15,000 per month to offset the cost of renting an accommodation.

 

E.              You will be provided with a pre-transfer tax consultation with a Company-designated tax services provider.  Tax preparation services will be provided by the designated tax services provider for your

 

 

home country and your U.S. tax returns for the first year of transfer and the year after transfer.  The tax services program does not cover personal financial tax planning.

 

12.           This Agreement shall be interpreted to avoid any penalty sanctions under section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).  If any payment or benefit cannot be provided or made at the time specified herein without incurring sanctions on you or the Company under section 409A of the Code, then such benefit or payment shall be provided in full at the earliest time thereafter when such sanctions will not be imposed.

 

13.           Except as prescribed in this Agreement, nothing contained herein alters your status as an employee at-will.  In this regard, nothing in this letter guarantees that ITG will continue to employ you for any specific period of time. Either you or ITG may terminate your employment at any time, with or without cause, with or without notice, for any reason or for no reason.

 

This letter, and all policies and documents referenced herein, contain all of the terms of the proposed relationship between you and ITG, and this letter may only be subsequently modified by an instrument in writing, signed by an authorized officer of ITG.

 

	
 
    	
 
    	
Sincerely,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Peter A. Goldstein
    
	
 
    	
 
    	
Peter   A. Goldstein
    
	
 
    	
 
    	
Head   of Human Resources
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Agreed   to and Accepted By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   David James Stevens
    	
 
    	
 
    
	
David James Stevens
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
September 14,   2011
    	
 
    	
 
    
	
Date
    	
 
    	
 
    

 

 

Appendix A

 

“Cause” shall mean the occurrence of anyone or more of the following: (i) the executive’s willful failure to substantially perform his duties with the Company (other than any such failure resulting from the executive’s disability), after a written demand for substantial performance is delivered to the executive that specifically identifies the manner in which the Company believes that the executive has not substantially performed his duties, and the executive has failed to remedy the situation within fifteen (15) business days of such written notice from the Company; (ii) gross negligence in the performance of the executive’s duties which results in material financial harm to the Company; (ii) the executive’s conviction of, or plea of guilty or nolo contendere, to any felony or any other crime involving the personal enrichment of the executive at the expense of the Company; (iv) the executive’s willful engagement in conduct that is demonstrably and materially injurious to the Company, monetarily or otherwise; or (v) the executive’s willful material violation of any provision of the Company’s code of conduct.Exhibit 10.9

 

SHARE PURCHASE AGREEMENT

 

I.                                        Parties

 

1.                                      Josef Scherer, c/o S & P Clever Reinforcement Company AG, Seewernstrasse 127, CH-6423 Seewen, Switzerland

 

2.                                      Yvonne Scherer, c/o S & P Clever Reinforcement Company AG, Seewernstrasse 127, CH-6423 Seewen, Switzerland

 

(each a “Seller”)
  (together “Sellers”)

 

3.                                      Simpson Manufacturing Co., Inc., 5956 West Las Positas Boulevard, Pleasanton, California 94588

 

(“Buyer”)

 

(each a „Party”)

(together „Parties”)

 

II.                                    Introduction

 

1                                         Sellers together own all shares in S&P Clever Reinforcement Company AG (“S&P Clever”) and S&P Reinforcement International AG (“S&P International”), both companies incorporated under the laws of Switzerland, with registered offices in Schwyz, Switzerland (both companies together “S&P Companies”). Buyer intends to purchase and Sellers intend to sell the aforesaid shares in accordance with the terms of this share purchase agreement (hereinafter the “SPA”).

 

III.                                Object of Sale

 

2                                         Buyer shall purchase from Sellers the following shares (together “Shares”):

 

2.1                               1’000 registered shares of S&P Clever with a nominal value of CHF 1’000.— each, equal to 100 % of the share capital of S&P Clever;

 

2.2                               100 registered shares of S&P International with a nominal value of CHF 1’000 each, equal to 100 % of the share capital of S&P International.

 

IV.                               Purchase Price

 

3                                         The purchase price for all Shares is 54,000,000 Swiss Francs (“Purchase Price”) and is payable in cash at Closing (as defined in clause V.1) as follows:

 

3.1                               50,000,000 Swiss Francs to the bank account to be designated by Sellers;

 

 

3.2                               4,000,000 Swiss Francs to the escrow account in accordance with an escrow agreement, subject to the terms and conditions as substantially set forth in Annex 3.2.

 

4                                         The amount of the Purchase Price shall be reduced as follows in the following events:

 

4.1                         If S&P Clever transfers the “real estate property Brunnen” to Sellers before the Closing Date, the Purchase Price shall be reduced by 275’000 Euros as per the actual currency rate, and the amount according to clause IV/3.1 shall be reduced by the same amount.

 

4.2                         If S&P Clever transfers the solar panels on the “Seewen property” to Sellers before the Closing Date (as defined in clause V.1), the Purchase Price shall be reduced by 430,000 Swiss Francs, and the amount according to clause IV/3.1 shall be reduced by the same amount.

 

4.3                         In case the soil and water sampling conducted by Buyer between signing of the SPA and the Closing Date at S&P Clever and at the subsidiaries in Germany, Poland and Portugal (see clause VIII hereinafter) will evidence remediation expenses exceeding 3,000,000 Swiss Francs for the examinated properties, Buyer shall have the right (but not the obligation) to have such property (or properties) sold by S&P Clever, or the respective subsidiary, to Sellers, and to lease back such property (or properties) from Sellers immediately after the sale of such property. Sellers hereby accept such sale and lease-back for the aforesaid case. The purchase price for such property sale shall be the value of the contaminated land and the building on such land. This value shall be based on the original costs of land and building plus yearly local index rate adjustments (usually between 2-3%). The lease agreement with Sellers (lease back of property sold to Sellers in accordance with this paragraph) shall provide for an annual rent of 6.5% of the purchase price of the respective property sale (calculated specified above), adjusted by a yearly local index rate (usually between 2-3%), and a fixed lease term of eight years. In case of a sale and lease back of property in accordance with this paragraph, Sellers shall pay the purchase price for the property sale to Buyer or the respective S&P company against transfer of the property. In case the Purchase Price according to clause IV/3.1 has not been paid by the time of such property transfer, the Purchase Price amount according to clause IV/3.1.1 is reduced by (i.e. set-off against) the purchase price for such property transfer.

 

V.                                   Closing

 

1.                                       Place and Date

 

5                                           The closing of the SPA (hereinafter the “Closing”) will take place on January 10, 2012, or any other date mutually agreed by the Parties, but in any event no later than January 16, 2012 (“Closing Date”). Closing will take place at the premises of Bratschi Wiederkehr & Buob, Bahnhofstrasse 70, 8021 Zurich.

 

2.                                       Conditions Precedent

 

6                                           The obligations of both Parties to perform the closing actions set forth in clause V/3 hereinafter is subject to the execution of employment agreements with, among others, the following provisions:

 

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6.1                         Employment agreement between S&P Clever and Mr Josef Scherer, substantially reflecting the following terms: Employment as general counsel and advisor, 160,000 Swiss Francs yearly gross salary for a 80%-employment (or, subject to mutual agreement, 120,000 Swiss Francs yearly gross salary for a 60%-employment);

 

6.2                         Employment agreement between S&P Clever and Ms Yvonne Scherer, substantially reflecting the following terms: Employment as advisor, 56,000 Swiss Francs yearly gross salary for a 40%-employment (or, subject to mutual agreement, 84,000 Swiss Francs yearly gross salary for a 60%-employment).

 

7                                           The obligations of Buyers to perform the closing actions set forth in clause V/3  hereinafter are subject to the execution of share purchase agreements between S&P Clever and at least three of the current five minority shareholders in subsidiaries of S&P Clever; provided that Buyer will contribute at least 100,000 Euros to accelerate the share purchase from Mr Dirk Grunewald, CEO of the German subsidiary of S&P Clever. Sellers undertake to support Buyer in the negotiations with the minority shareholders.

 

3.                                       Closing Actions

 

8                                           At Closing, Sellers shall deliver to Buyer, against payment of the Purchase Price as set forth in clause IV above,  the following documents:

 

8.1                         the share certificates representing all Shares, duly endorsed to Buyer and free and clear of any lien or encumbrance;

 

8.2                         a copy of a resolution of the board of directors of S&P Clever, resolving the approval of the transfer of the Shares in S&P Clever to Buyer and the entering of the Buyer as the new holder of the Shares in S&P Clever in the share register of S&P Clever as of the Closing Date;

 

8.3                         a copy of a resolution of the board of directors of S&P International, resolving the approval of the transfer of the Shares in S&P International to Buyer and the entering of the Buyer as the new holder of the Shares in S&P International in the share register of S&P International as of the Closing Date;

 

8.4                         the share register of S&P Clever, evidencing the Buyer as the new holder of the Shares in S&P Clever;

 

8.5                         the share register of S&P International, evidencing the Buyer as the new holder of the Shares in S&P International;

 

8.6                         resignation letters of such members of the board of directors of each S&P Company and/or each subsidiary of S&P Clever  Buyer does not wish to remain in the aforesaid boards of directors (the names of such board members to be communicated to Sellers until November 15, 2011); in the aforesaid resignation letters the members of the board shall (i) resign from such board and (ii) waive any rights and declare to have no claims towards the relevant company;

 

8.7                         the share register or any equivalent document available under applicable laws of subsidiaries of S&P Clever evidencing S&P Clever as their sole shareholder.

 

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VI.                               Representations and Warranties

 

9                                           Sellers represents and warrants for the S&P Companies as of the Closing Date as follows:

 

9.1                         Title to Shares: Sellers are the sole legal and beneficial owners of the Shares, free and clear of any lien or encumbrance. All Shares are validly issued and fully paid-up. The Shares in S&P Clever constitute and represent 100% of all shares in S&P Clever that are outstanding, and the Shares in S&P International constitute and represent 100% of all shares in S&P International that are outstanding. There are no outstanding options, warrants, calls, rights, commitments or agreements regarding the sale or issuance of any shares in either of S&P Companies or any of their subsidiaries.

 

9.2                         Tax Exposures: The tax exposures set forth in Annex 9.2 do not exist.

 

9.3                         Intellectual Property:  Sellers have validly transferred all those intellectual property rights used for the business of the S&P Companies that have formerly been registered in the name of Sellers or otherwise owned by Sellers (including, but not limited to, patents, patent applications, trademarks, copyrights, formula S&P RESIN 220 used or to be used by the German subsidiary of S&P Clever, and software).

 

9.4                         Employment Matters: There are no claims of employees of any of the S&P Companies or any of their subsidiaries for due but outstanding wages, commissions, holiday pay, or pension fund contributions.

 

9.5                         Environmental Issues: There are no contaminated soils on the properties of the subsidiaries of S&P Companies in Austria, Germany, Poland and Portugal.

 

10                                     Other than as expressly provided in clauses 9.1 to 9.5 above, there are no representations or warranties of Sellers, express or implied, pertaining to the subject matter of the SPA.

 

The Parties agree that art. 197 para. 1 and art. 200 para. 1 Swiss Code of Obligations (“CO”) shall not apply.

 

VII.                          Remedies

 

1.                                    Misrepresentation or Breach of Warranties

 

11                                  Subject to the limitations set forth in clause VII/3 and VII/4, Sellers are jointly and severally obliged to remedy any loss, costs or damages of Buyer, or any of the S&P Companies or their subsidiaries, as the case may be, resulting from any misrepresentation or breach of warranties, it being understood that such damage shall be determined on a Swiss Franc by Swiss Franc basis. The liability of Sellers for indirect damage caused by such breach of obligation, warranty or misrepresentation shall be limited to the extent attributable to Sellers’ fault.

 

2.                                    Notice of Misrepresentation or Breach of Warranties

 

12                                  Buyer shall deliver to Sellers a notice in writing reasonably describing the under-lying facts of a claim for Sellers’ misrepresentation or breach of warranty referring to the specific representation or warranty allegedly breached and stating, to the extent reasonable, the amount of reasonably anticipated damage relating to such

 

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claim as well as disclosing to Sellers such documents and information supporting its claim as is reason-able (the “Notice of Breach”) within 90 days after Buyer obtains actual knowledge of a misrepresentation or breach of warranty pursuant to clause VI/9 or breach of obligation.

 

13                                     Failure to give Notice of Breach within the time period set forth above shall not exclude Sellers’ liability hereunder; provided, however, that Sellers shall not be liable for any damage to the extent that the same is caused by Buyer’s failure to give due and timely notice set forth in the previous paragraph.

 

14                                     The regime provided in this clause VII/2 shall be in lieu of, not in addition to, Buyer’s duty to immediately inspect and notify the Sellers in accordance with article 201 CO.

 

3.                                    Time Limitations

 

15                                  Claims by Buyer against Sellers under this clause VII shall be time-barred unless Buyer has delivered to Sellers a Notice of Breach in accordance with clause VII/2 within the following time periods, art. 210 para. 1 CO not being applicable:

 

15.1                         Ten years after the Closing Date with respect to the representation and warranty in clause VI/9.1 (“Title to Shares”);

 

15.2                         Four years after the Closing Date with respect to the representation and warranty in clause VI/9.2 (“Tax Exposure”);

 

15.3                         Three years after the Closing Date with respect to the representation and warranty in clause VI/9.4 (“Employment Matters”);

 

15.4                         One year after the Closing Date with respect to the representations and warranties in clause VI/9.3 (“Intellectual Property”) and 9.5 (“Environmental Issues”).

 

4.                                    Limitations on Liability

 

16                                  Sellers’ total liability under this SPA shall be limited to the following amounts:

 

16.1                         With respect to the representation and warranty in clause VI/9.1 (“Title to Shares”): The Purchase Price in accordance with clause IV/3;

 

16.2                         With respect to the representation and warranty in clause VI/9.2 (“Tax Exposure”); 2,000,000 Swiss Francs from the amount held in the escrow account as set forth in clause IV/3.2;

 

16.3                         With respect to the representation and warranty in clause VI/9.4 (“Employment Matters”); 1,000,000 Swiss Francs from the amount held in the escrow account as set forth in clause IV/3.2;

 

16.4                         With respect to the representation and warranty in clause VI/9.5 (“Environmental Issues”): 1,000,000 Swiss Francs from the amount held in the escrow account as set forth in clause IV/3.2.

 

16.5                         With respect to the representation and warranty in clause VI/9.3 (“Intellectual Property”): 1,000,000 Swiss Francs.

 

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5.                                    Exclusive Remedies

 

17                                  The remedies in this clause VII for breach of representations and warranties shall be in lieu of, and not in addition to, the remedies provided for by law. All other remedies, including, but not limited to, the right to rescind this SPA following Closing, for mistake, breach of warranty or any other ground, shall not apply and are hereby explicitly waived.

 

VIII.                      Specific Provisions for Real Estate Property

 

18                                  Between signing and Closing of the SPA, Buyer is entitled to conduct or have conducted soil and water samplings at the sites of S&P Clever and all its subsidiaries, except for the subsidiary in the Netherlands. All costs of such samplings are to be borne by Buyer.

 

19                                  In case a contamination of one ore more of the aforesaid sites is detected, firstly the representation and warranty in accordance with clause VI/9.5 applies. Remediation expenses between 1,000,000 and 3,000,000 Swiss Francs are to be borne by Buyer. In case proven remediation expenses for one site should exceed 3,000,000 Swiss Francs, Buyer is entitled to a reduction of the purchase price in accordance with clause IV/4.3.

 

20                                  It is the intention of Buyer that the real estate property of the S&P Clever subsidiary in the Netherlands will be sold to the current CEO of this subsidiary, Mr Michael Van Beek, and subsequently leased from Mr Van Beek. The purchase price for such sale should possibly be based on the original costs of land and building plus a yearly local index rate (usually 2-3%). The lease agreement with Mr Van Beek should possibly provide for an annual rent of 6.5% of the purchase price, adjusted by a yearly local index rate, and a fixed lease term of eight years. Sellers undertake to support Buyer in its negotiations with Mr Van Beek about a property sale agreement and a lease agreement between signing and Closing of the SPA.

 

IX.                              Non-Compete Covenant of Sellers

 

21                                  For a period of 3 years following the Closing Date, none of the Sellers shall, directly or in-directly, including, without limitation, through any entity owned or controlled by a Seller, neither as business owner nor as employee or independent advisor, conduct or support the conduct of any activity that competes with the business of any of the S&P Companies or any of their subsidiaries or conducts a business that is equal or similar to the business as conducted by any of the S&P Companies or any of their subsidiaries in any country worldwide, including, without limitation, establishing or acquiring any business anywhere in the world that competes with or conducts or is intended to conduct a business that is equal or similar to the business as conducted by any of the S&P Companies or any of their subsidiaries.

 

X.                                  Tax Covenant of Buyer

 

22                                  Buyer shall hold Sellers fully harmless against any tax liabilities and costs resulting from any act of Buyer or an affiliated company of Buyer that leads to the classification of the present sale for tax purposes as indirect partial liquidation on the part of Sellers.

 

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XI.                               Miscellaneous

 

1.                                       Binding Effect

 

1                                         This SPA shall become binding on the Parties if and when it has been duly exe-cuted by both Parties.

 

2.                                       Entire Agreement; Amendments

 

2                                         This SPA (including the Annexes and any other documents referred to herein or therein) constitutes the entire agreement of the Parties regarding the transactions contemplated by this SPA and supersedes all previous agreements or arrangements, negotiations, discussions, correspondence, undertakings and communications, whether oral or in writing, explicit or implied, with respect to the transactions contemplated by this SPA.

 

3                                         This SPA (including this clause XI/2/3) may only be modified by an instrument in writing executed by both Parties.

 

3.                                       No Waiver

 

4                                         The failure of a Party to enforce any of the provisions of this SPA or any rights with respect to this SPA shall in no way be considered as a waiver of such provisions or rights or in any way affect the validity of this SPA. The waiver of any breach of this SPA by a Party shall not operate or be construed as a waiver of any other prior or subsequent breach.

 

4.                                       Severability

 

5                                         If any provision of this SPA is held to be invalid or unenforceable for any reason, such provision shall, if possible, be adjusted rather than voided, in order to achieve a result which corresponds to the fullest possible extent to the intention of the Parties. The nullity or adjustment of any provision of this SPA shall not affect the validity and enforceability of any other provision of this SPA.

 

5.                                       Notices

 

6                                           All notices, requests, demands or other communications made under or in connection with this SPA shall be made in English and be delivered in writing (including electronic transmission) to the following addresses (or such other addresses as may from time to time have been notified according to this clause XI/5):

 

7                                           If to Sellers:

 

8                                           SwissLegal (Zürich) AG

Attn.: Michel Pola

Zolliker-/Alfred Ulrich-Strasse 2

P.O. Box 575

8072 Zürich / Switzerland

 

9                                           If to Buyer:

 

Bratschi Wiederkehr & Buob

Attn.: Florian Jörg

Bahnhofstrasse 70

P.O. Box 1130

8021 Zürich / Switzerland

 

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10                                     Any notice made under or in connection with this SPA shall be given prior to the expiry of a term or deadline set forth in this SPA (if any) or the notice shall be deemed null and void. All notices, communications or instructions made under or in connection with this SPA shall only be effective when received by the Party to whom it is addressed.

 

6.                                       Assignments

 

11                                   Neither Seller shall assign this SPA (in whole or in part) or any rights, claims, obligations or duties hereunder to any person without the prior written consent of Buyer.

 

12                                   Buyer is entitled to assign this SPA (in whole or in part) or any rights, claims, obligations or duties hereunder to any of its affiliated companies and the Sellers hereby explicitly consent to any such assignment. However, in case of such assignment, Simpson Manufacturing Co., Inc., shall be jointly and severally liable together with Buyer for all obligations of Buyer under this SPA.

 

7.                                       Effects on Third Parties

 

13                                   No person other than the Parties shall have any rights or benefits under this SPA, and nothing in this SPA is intended to confer on any person other than the Parties any rights, benefits or remedies.

 

8.                                       Communication

 

14                                   Any public announcement, press release or similar publicity with respect to this SPA or the transactions contemplated hereby will be issued, if at all, at such time and in such manner as the Parties may mutually agree. Except with the prior consent of Buyer or as otherwise permitted by this SPA, none of Sellers, S&P Companies, their subsidiaries or any of their representatives shall disclose to any person any information relating to this SPA or the transactions contemplated hereby.

 

15                                   The Parties will consult with each other concerning the means by which the employees, customers, suppliers of the S&P Companies or any of their subsidiaries and others having dealings with any S&P Companies or any of their subsidiaries will be informed of the entering into this SPA, and Buyer will have the right to be, or have a representative be, present for any such communication.

 

16                                   Notwithstanding any other provision hereof to the contrary:

 

16.1                                 without the prior consent of Buyer, Sellers shall not, and shall not suffer or permit any person to, issue any public notice, press release or other publicity concerning the existence or any of the terms and conditions of this SPA or any of the transactions contemplated hereby; and

 

16.2                                 Buyer may issue any public notice, press release or other publicity concerning this SPA or any transaction contemplated hereby that Buyer believes in good faith is required by the United States Securities Exchange Act of 1934 and the rules and regulations thereunder, by any other applicable law or by the rules of the New York Stock Exchange, Inc.

 

9.                                       Costs

 

17                                   Sellers and Buyer shall each bear one half of the drafting costs of SwissLegal (Zurich) AG for this SPA and its Annexes

 

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10.                                Applicable Law and Arbitration

 

18                                   This SPA shall be subject to and governed by Swiss substantive law (excluding its provisions on the conflict of laws and the UN Convention on the International Sale of Goods).

 

19                                   Any dispute, controversy or claim arising out of or in relation to this SPA, including the validity, invalidity, breach or termination thereof, shall be exclusively resolved by arbitration in accordance with the Swiss Rules of International Arbitration of the Swiss Chambers of Commerce in force on the date when the notice of arbitration is submitted in accordance with these rules. The number of arbitrators shall be three. The seat of the arbitration shall be in Zurich, Switzerland. The arbitral proceedings shall be conducted in English.

 

 

Sellers:

 

 

	
Seewen October 26, 2011
    	
 
    	
Seewen October 26, 2011
    
	
Place and Date
    	
 
    	
Place and Date
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Josef Scherer
    	
 
    	
/s/ Yvonne Scherer
    
	
Josef Scherer
    	
 
    	
Yvonne Scherer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Buyer:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Pleasanton, Calif. October 26, 2011
    	
 
    	
 
    
	
Place and Date
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Karen Colonias
    	
 
    	
 
    
	
Karen Colonias
    	
 
    	
 
    
	
(CFO)
    	
 
    	
(                                 )
    

 

 

Table of Annexes

 

Annex 3.2      Escrow Agreement

Annex 9.2      Tax Exposures

 

9

 

Annex 3.2                                         Escrow Agreement

 

ESCROW AGREEMENT

 

between

 

1.         Josef Scherer, Schiller 16, 6440 Brunnen/SZ

 

(“JS”)

 

and

 

2.         Yvonne Scherer, Schiller 16, 6440 Brunnen/SZ

 

(“YS”)

 

and

 

3.         Simpson Manufacturing Co., Inc., 5956 West Las Positas Boulevard, Pleasanton, California 94588

 

(“Buyer”)

 

and

 

4. [Name of Escrow Agent]

 

(“Escrow Agent”)

(Parties 1 and 2 jointly “Sellers” or a “Party”,

Party 3 and Party 4 a “Party” and

Parties 1-4 collectively “Parties”)

 

Regarding

 

an amount of 4,000,000 Swiss Francs deposited by Buyer

 

(“Escrow Amount”)

 

WHEREAS, Sellers and Buyer have entered into a share purchase agreement regarding all shares of S&P Clever Reinforcement Company AG and S&P Reinforcement International AG on [date] (“SPA”), and Sellers and Buyer are delivering herewith to the Escrow Agent a true and complete copy of the SPA;

 

WHEREAS, clause VI/3.2 of the SPA provides for a part of the purchase price equal to the Escrow Amount to be deposited with the Escrow Agent;

 

WHEREAS, the Escrow Agent has agreed to safeguard the Escrow Amount;

 

NOW, THEREFORE, the Parties agree as follows (this “Agreement”):

 

10

 

1.                                     Definitions

 

Capitalised terms used in this Agreement and not otherwise defined herein have the meanings respectively given to them in the SPA.

 

2.                                     The Escrow Agent

 

2.1                               Appointment of the Escrow Agent

 

Sellers and Buyer hereby appoint the Escrow Agent as escrow agent under the terms and conditions of this Agreement.

 

Escrow Agent hereby declares that it assumes all rights and duties as escrow agent according to the terms of this Agreement.

 

2.2                               Duties of the Escrow Agent

 

2.2.1                     Safe custody

 

Escrow Agent shall hold the Escrow Amount in safe custody in the separate and bankruptcy remote Escrow Account and release it in accordance with clause 3.

 

2.2.2                     Investment policy

 

The Escrow Amount shall be placed by the Escrow Agent in Swiss Franks deposits with a sign A (or higher rated) financial institution(s) or in other investments to be indicated by Sellers and Buyer jointly.

 

Escrow Agent shall provide the Parties biannually with account statements concerning the Escrow Account and shall, in addition, on request by any Party at any time, promptly give such Party detailed information as to the balance and investments of the Escrow Account.

 

2.3                              Remuneration of the Escrow Agent

 

The remuneration for all services rendered by the Escrow Agent as escrow agent under this Agreement shall be [amount] Swiss Francs per calendar year, on a pro rata basis, plus out of pocket expenses, to be borne equally by Sellers and Buyer.

 

The fee according to the preceding paragraph does not cover any work by Escrow Agent in connection with the drawing up and entering into this Agreement and the opening of the Escrow Account, nor any extraordinary work in connection with this Agreement during the term of this Agreement, nor any out-of-pocket expenses for telephone, faxes, postage, photocopies, travelling etc. Escrow Agent shall be paid for such extraordinary work at an hourly rate of [amount] Swiss Francs plus VAT, if applicable, and shall be reimbursed for such out-of-pocket expenses, in each case payable one-half by Sellers and one-half by Buyer. The giving of instructions to the Escrow Agent in the ordinary and necessary course of this Agreement as well as the Escrow Agent’s provision of biannual account statements concerning the Escrow Account shall not be deemed extraordinary work.

 

2.4                               Replacement of the Escrow Agent

 

Escrow Agent shall be allowed to renounce its appointment upon 30 Business Days’ notice to the other Parties. If Sellers and Buyer do not jointly appoint a new Escrow Agent within such notice period, Escrow Agent shall deposit the Escrow Amount and all interest thereon then accrued or received with a fiduciary or attorney appointed by the President

 

11

 

of the Zurich District court or, if this is not possible, directly with the Zurich District Court. The same applies if the Escrow Agent ceases to have legal capacity or is for any other reason no longer in a position to fulfil the Escrow Agent’s duties hereunder.

 

Sellers and Buyer shall also be allowed jointly to replace the Escrow Agent at any time, provided that the replacement escrow agent has capacity to, and agrees to, take over all the rights and obligations of the Escrow Agent under this Agreement.

 

3.                                    Release of the Escrow Amount

 

Escrow Agent shall release the Escrow Amount plus interest received thereon not in excess of 3% of the Escrow Amount to Sellers and shall release the remaining interest, if any, to Buyer at the following dates (the “Release Dates”) and in the following partial amounts, unless the Escrow Agent receives a copy of a Notice of Breach in accordance with clause VII/2 of the SPA and as specified below before the respective Release Date:

 

	
Part of Escrow Amount
    (Swiss Francs)
    	
 
    	
Release Date
    	
 
    	
To be released unless receipt
   of specified Notice of Breach:
    
	
1,000,000
    	
 
    	
[Closing Date + 2   months]
    	
 
    	
Relating to clause   VI/9.5 (“Environmental Issues”)
    
	
1,000,000
    	
 
    	
[Closing Date + 3   years]
    	
 
    	
Relating to clause   VI/9.4 (“Employment Matters”)
    
	
2,000,000
    	
 
    	
[Closing Date + 4   years]
    	
 
    	
Relating to clause   VI/9.2 (“Tax Exposure”)
    

 

If the Escrow Agent receives a copy of a Notice of Breach specified above before the respective Release Date, the Escrow Agent will not release any of the Escrow Amount or any interest; provided that, if all Notices of Breach state maximum amounts and if the sum of such maximum amounts (the “Total Claims”) is less than the Escrow Amount plus 3% of the Escrow Amount, the Escrow Agent may release to Sellers on the respective Release Date the difference between the Total Claims and the sum of the Escrow Amount plus 3% of the Escrow Amount.

 

Notwithstanding the foregoing, the Escrow Agent shall at any time release funds from the Escrow Account:

 

a)                                               According to joint instructions by JS, YS and Buyer;

 

b)                                              According to a final award of a competent arbitration court or state court as provided for in the SPA or this Agreement and subject to the terms and conditions as may be set out in the arbitration award or the judgment provided that such arbitration award or judgment has been declared enforceable by a competent Swiss court or is enforceable in Switzerland, in which case the award itself shall replace the instruction(s) by the Party/Parties according to the preceding paragraph a).

 

Notwithstanding anything herein to the contrary, Escrow Agent shall have no obligation to make any payment from the Escrow Account if to do so would result in a debit balance in the Escrow Account or to make any payment or take any other positive action of any kind pursuant to this Agreement, other than for the purposes of giving notices and except as otherwise provided in this Agreement, unless the Parties jointly agree to do so.

 

If the total interest earned exceeds 3% of the Escrow Amount, such surplus shall be released by the Escrow Agent to the Buyer on the respective Release Date or, if earlier, concurrently with any other release of any of the Escrow Amount. If the total interest does not reach 3% of the Escrow Amount, and if the Total Claims are less than the sum of the Escrow Amount and the interest earned, the difference shall be paid by Buyer directly to the Sellers within 30 days after the respective Release Date.

 

12

 

4.                                    Release of liability

 

Sellers and Buyer hereby release the Escrow Agent from any and all liabilities incurred in connection with the due performance of the Escrow Agent’s duties under this Agreement, except for liabilities resulting from the Escrow Agent’s gross negligence or wilful misconduct.

 

5.                                    Term and termination

 

This Agreement is entered into for an indefinite period of time.

 

It shall terminate automatically on the release, in accordance with this Agreement, by the Escrow Agent of the entire amount remaining in the Escrow Account.

 

The provisions of clauses 6.6 (Confidentiality), 6.7 (Governing Law) and 6.8 (Arbitration) shall survive the termination of this Agreement and continue in effect for an indefinite period of time.

 

6.                                    General provisions

 

6.1                              Costs

 

Each Party shall bear its own costs and expenses (including the fees of such Party’s counsel and advisors) incurred in the negotiation, preparation and completion of this Agreement.

 

6.2                              Notice

 

Any notice, request, instruction or other document deemed to be necessary or desirable by any Party to be given to any other Party, shall be in writing and shall be forwarded by registered mail or courier, addressed as stated on the cover page of this Agreement.

 

Any change of address needs to be communicated as set forth under this clause.

 

6.3                              No waiver

 

The failure of any of the Parties to enforce any of the provisions of this Agreement or any rights with respect thereto shall in no way be considered as a waiver of such provisions or rights or in any way to affect the validity of this Agreement. The waiver of any breach of any provision of this Agreement by any Party hereto shall not operate to be construed as a waiver of any prior or subsequent breach of the same provision or any breach of any other provision of this Agreement.

 

6.4                              Entire Agreement

 

This instrument embodies the entire agreement among the Parties with respect to the Escrow Account. This Agreement may be amended only in writing through a document signed by all of the Parties.

 

6.5                             No Assignment

 

Unless otherwise provided herein, a Party may not assign all or part of its rights and obligations under this Agreement without the written consent of the other Parties, except that Buyer may, without the consent of any other Party, assign this Agreement or any rights hereunder or delegate any duties hereunder to any affiliate of Buyer.

 

13

 

6.6                              Confidentiality

 

Except with the prior consent of Buyer or as otherwise permitted by this Agreement or required by statutory law or by any competent judicial or regulatory authority, none of the Parties shall disclose to any person any information relating to this Agreement or the transactions contemplated hereby.

 

The Parties also undertake to limit any disclosure of the terms of this Agreement to those of their directors, officers, employees, agents or advisors who are absolutely required to receive such information to carry out their duties.

 

6.7                              Governing Law

 

This Agreement shall be subject to and governed by Swiss substantive laws.

 

6.8                              Arbitration

 

Any dispute, controversy or claim arising out of or in relation to this Agreement, including the validity, invalidity, breach or termination thereof, shall be exclusively resolved by arbitration in accordance with the Swiss Rules of International Arbitration of the Swiss Chambers of Commerce in force on the date when the notice of arbitration is submitted in accordance with these rules. The number of arbitrators shall be three. The seat of the arbitration shall be in Zurich, Switzerland. The arbitral proceedings shall be conducted in English.

 

 

	
Seewen October 26,   2011  
    	
 
    	
/s/Josef Scherer
    	
 
    	
/s/Yvonne Scherer
    
	
Place, date
    	
 
    	
Josef Scherer
    	
 
    	
Yvonne Scherer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Simpson Manufacturing Co., Inc.
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Pleasanton, Calif. October 26, 2011
    	
 
    	
/s/Karen Colonias
    	
 
    	
 
    
	
Place, date
    	
 
    	
Karen Colonias
    	
 
    	
[Name]
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Escrow Agent
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Place, date
    	
 
    	
[Name]
    	
 
    	
 
    

 

14

 

Annex 9.2      Tax Exposures

 

S&P Tax Exposure  (total €1.76M)

 

Switzerland (any amount)

Germany  (total €793K)

Austria  (total €110K)

Netherlands (any amount)

Poland  (total €507K)

Portugal  (total €346K)

 

15

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