Document:

Exhibit 10.1

 

	

	
Corporate Office: 4281 Technology Drive Fremont, CA 94538   Ph: 510-438-4700   Fax: 510-353-0668   www.axt.com

 

May 27, 2015

 

Hong Q. Hou

 

Dear Hong:

 

It is my pleasure to offer you an employment position with AXT, Inc. (“AXT” or the “Company”), in a new position on the following terms.

 

		1.	Employment and Duties

 

You will be employed by AXT as Chief Operating Officer (“COO”).  You will be employed on a full-time basis and will report to AXT’s Chief Executive Officer (“CEO”).  Your duties and responsibilities will be consistent with your title and position as AXT’s COO, and any other duties assigned or requested by the CEO, including, without limitation, responsibility for AXT’s China Operation.   You will devote your full time, ability, attention, energy, knowledge, skill, and productive employment time solely to performing your duties as an employee of AXT.  You will comply with all of AXT’s rules and policies.

 

		2.	Start Date

 

If you accept this offer, you will assume your role as COO on June 29, 2015.

 

		3.	Compensation

 

(a)            Base Salary.  In consideration for your services to AXT under this Offer Letter, you will receive an annual base salary of $340,000 plus10% Expatriate salary bonus, paid in United States dollars in equal biweekly installments in accordance with AXT’s normal payroll practices, from which AXT will withhold and deduct all applicable taxes to the extent required by law.  Your base salary will be annually reviewed by the Company, which may be adjusted based upon various factors including, but not limited to, your and the Company’s performance.

 

(b)            Stock Award.  Subject to AXT’s Compensation Committee of the Board of Directors formal approval (of which verbal approval has been received) AXT will grant to you a Restricted Stock Award (the “RSA”) for 300,000 shares of AXT RSA stock (“Shares”). Among these 300,000 shares, 75,000 is for sign on bonus, vesting on your start date. For the remaining 225,000 shares, the vesting schedule shall be as follows: each June 30 and December 31 6/48 of the 225,000 shares shall vest (except there will be no such vesting for June 30, 3015).This semi-annual vesting is subject to your continued employment with AXT through each applicable vesting date.  No right to any Shares is earned or accrued until such time that vesting date occurs, nor does the grant confer any right to continue vesting or employment.

 

(c)            Annual Bonus. You will be eligible to participate in bonus plans as approved for your position by the Board or Committee. (60% target bonus)

 

(d)            Relocation Expenses. AXT will pay all your actual moving expenses, spouse and family travel allowance, $15,000/year. International school in China, $38,500/year. For these compensations, AXT will deduct all applicable taxes to the extent required by law.

 

(e)            Housing Allowance. AXT will pay up to $50,000/year on actual housing rental expenses for your home in China.

 

(f)            Business Expenses.  AXT will reimburse you for customary, ordinary, and necessary business expenses as are incurred by you in the performance of your duties and activities associated with promoting or doing AXT’s business, in accordance with AXT’s expense reimbursement policy as may be in effect from time to time.  All expenses as described in this paragraph will be subject to presentation by you of such documentation as may be reasonably necessary to substantiate that all such expenses were incurred in the performance of your duties.

 

(g)            Directors and Officers Insurance.  Directors and Officers Insurance currently is maintained by AXT and, to the extent that such insurance remains available to AXT upon terms acceptable to AXT, AXT will use its best commercial efforts to continue to maintain such insurance at such levels as the Board may approve from time to time.

 

(h)            Vacation and Sick Leave.  Your accrual of vacation and sick leave will be pursuant to AXT’s policies on the same terms as other, similarly situated executives, provided that at no time will you be permitted to have accrued more than forty (40) days of vacation.  At any time you accrue this amount of vacation, you will not earn additional vacation until you use vacation time so that your accrual drops below this forty (40) day maximum.  You agree to schedule your vacations at times that are approved by the CEO.

 

(i)             Benefits.  You will be eligible for health insurance, retirement, and other benefits on the same basis as other similarly situated employees of AXT. Your participation in the Company’s 401(k) plan will, to the extent allowed by the terms of the plan, be fully vested from the commencement of your employment.

 

		3.	Outside Activities

 

While employed by AXT, and unless otherwise agreed in writing, you will not:

 

(i)              undertake any other form of employment or other activity that may negatively affect the performance of your duties as an employee of AXT; or

 

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(ii)            directly or indirectly, either as an employee, employer, consultant, agent, principal, partner, shareholder, corporate officer, director, or in any other capacity, engage or assist any third party in engaging in any business competitive with the business of AXT or any parent, subsidiary or affiliate.

 

		4.	Proprietary Rights and Confidentiality, Code of Business Conduct and Ethics, and Insider Trading Policy

 

You have signed AXT’s Proprietary Information and Inventions Agreement (the “PIIA”), Code of Business Conduct and Ethics, and Insider Trading Policy.

 

		5.	Termination of Employment

 

(a)            At-will Employment. The Company is excited about your joining and looks forward to a beneficial and productive relationship. Nevertheless, you should be aware that your employment with the Company is for no specified period and constitutes at‐will employment. As a result, you are free to resign at any time, for any reason or for no reason. Similarly, the Company is free to conclude its employment relationship with you at any time, with or without cause, and with or without notice. We request that, in the event of resignation, you give the Company at least six weeks’ notice.

 

(b)            Resignation from All Positions.  Upon termination of your employment for any reason whatsoever, you automatically will deemed to have resigned from all offices and directorships then held with AXT or any of its affiliates.

 

(c)            Change in Control Severance.  If a Change in Control of AXT (as defined in Appendix A attached hereto) takes place, and within twelve (12) months thereafter you incur an Involuntary Termination, as defined in Appendix A, then, subject to the terms and conditions set forth in Appendix A, AXT will provide you with the following:

 

(i)              Accrued Payments.  All accrued but unpaid vacation, expense reimbursements, wages, and other benefits due to you under any AXT-provided plans, policies, and arrangements as of the date of Involuntary Termination (the “Termination Date”);

 

(ii)            Cash Severance.  A lump sum cash severance payment in a gross amount equal to twelve (12) months of your then‐current annual base salary;

 

(iii)            Health Benefits.  If you, and any of your spouse and/or dependents (“Family Members”), have coverage on the Termination Date under a group health plan sponsored by the Company, the Company will reimburse you the total applicable premium cost for continued group health plan coverage under the Consolidated Omnibus Budget Reconciliation Act of 1986, as amended (“COBRA”) for a period of twelve (12) months following the Involuntary Termination, provided that you validly elect and are eligible to continue coverage under COBRA for you and your Family Members, and, provided further, that if the Company determines in its sole discretion that it cannot provide the COBRA reimbursement benefits without potentially violating applicable laws (including, without limitation, Section 2716 of the Public Health Service Act and the Employee Retirement Income Security Act of 1974, as amended), the Company in lieu thereof will provide to you a taxable lump sum payment in an amount equal to the monthly COBRA premium that you would be required to pay to continue the group health coverage in effect on the Termination Date (which amount will be based on the premium for the first month of COBRA coverage) for a period of twelve (12) months following the Termination Date, which payment will be made regardless of whether you elect COBRA continuation coverage; and

 

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(iv)            Equity Award Vesting Acceleration.  One hundred percent (100%) vesting acceleration of your then-outstanding and unvested equity awards granted by AXT as of immediately prior to the Involuntary Termination.

 

		6.	Arbitration

 

(a)            Arbitration Required.  Any dispute, claim, or controversy arising out of or related to your employment with AXT or the termination of that employment shall be resolved exclusively through final and binding arbitration.  This agreement to arbitrate includes all state, federal and foreign statutory or common law claims, including but not limited to discrimination claims arising under the California Fair Employment and Housing Act, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination in Employment Act, or under the California Labor Code.  Any demand for arbitration must be made within one (1) year of the termination of employment, provided, however, that if a claim arose under a statute providing for a longer time to file a claim, that statute shall govern.

 

(b)            Costs or Fees.  All administrative costs of the arbitration, such as arbitrator and court reporting fees, shall be divided equally between AXT and you, unless otherwise required by law.  Each party shall bear its other costs of arbitration, including attorney’s fees, provided, however, that the arbitrator(s) may award attorney’s fees to the prevailing party under the provisions of any applicable law.

 

(c)            Representation.  You may, but are not required to, have an attorney represent you in preparation for and during the arbitration.  If you decide to use an attorney, you shall be solely responsible for the payment of attorney’s fees and costs, subject to any statutory authority of the arbitrator to order reimbursement by AXT.

 

(d)            Arbitration Procedure.  All disputes subject to arbitration under this Offer Letter shall be resolved by a single arbitrator selected by the parties, and judgment on the award rendered by the arbitrator(s) may be entered by any court having jurisdiction thereof.  The arbitrator shall have the authority to make any award that would be made by a court, but the arbitrator shall not have the authority to amend, modify, supplement or change the terms and conditions of employment set forth in this Offer Letter or AXT’s policies.

 

(e)            Location.  The location of the arbitration shall be Alameda County or San Francisco, California.

 

(f)            Waiver of Right to Jury Trial.  You agree that if for any reason any dispute or controversy between you and AXT arising from or related to your employment or the termination of your employment is resolved in court rather than through arbitration, then, to the extent permitted by law, trial of that dispute will be to a judge sitting without a jury, and you specifically waive any right you may have to trial by jury of any such dispute or controversy.

 

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(g)            Survival.  Your agreement to arbitrate and the terms of this Section will survive the termination of your employment with AXT.

 

(h)            Employee Acknowledgment.  YOU UNDERSTAND THAT YOU ARE ELECTING TO RESOLVE ANY DISPUTE, CLAIM OR CONTROVERSY DESCRIBED IN SECTION 7(a), ABOVE, IN AN ARBITRAL FORUM RATHER THAN A JUDICIAL FORUM AND THAT YOU ARE GIVING UP THE RIGHT TO A JURY TRIAL OF ANY SUCH DISPUTE, CLAIM, OR CONTROVERSY.

 

		7.	Miscellaneous

 

(a)            Modification.  Any modification of the terms of this Offer Letter will be effective only if and to the extent such modification is in a writing and signed by you and by the CEO.

 

(b)            Assignment.  In view of the personal nature of the services you will perform by AXT, you cannot assign or transfer any of your rights or obligations under this Offer Letter.

 

(c)            Severability.  If any of the provisions (or any part of any provision) of this Offer Letter are found to be unenforceable, then the remaining provisions (or part(s) thereof) shall nonetheless remain in full force and effect.

 

(d)            Entire Agreement.  The terms of this Offer Letter (which includes the Appendix A attached hereto), along with the PIIA and any other agreements relating to proprietary rights between you and the Company, constitute the entire agreement between AXT and you pertaining to the subject matter hereof and supersede all prior or contemporaneous written or verbal agreements and understandings in connection with the subject matter hereof, including, without limitation, the Consulting Agreement (except as to any proprietary rights).

 

(e)            Governing Law.  Your rights and obligations as an employee of AXT will be governed by the laws of the State of California without regard to the choice-of-law provisions thereof.  In any action relating to your employment by AXT, including one to compel arbitration or to enforce an arbitration award under Section 7, AXT and you specifically consent to the jurisdiction of the federal and state courts located in Alameda County, California.

 

If you wish to accept this offer of employment, please sign and date this Offer Letter in the space provided below.  By signing below, you acknowledge that you have received no inducements or representations other than those contained in this Offer Letter that caused you to accept this offer of employment.

 

We look forward to your continued contributions to AXT.

	 	
Sincerely,

	 	
	 	
/s/ MORRIS S. YOUNG

	 	
Dr. Morris S. Young

	 	
Chief Executive Officer

 

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Agreed to and accepted:

	
	 		
	
Signature:

	
/s/ HONG Q. HOU

	
	 		
	
Printed Name:

	
Hong Q. Hou

	
	 		
	
Date:

	
06/24/2015

	

 

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Appendix A

The following additional provisions will apply to your Offer Letter, including with respect to the severance benefits set forth in Sections 5(c) (the “Severance”) of your Offer Letter.

 

A.      “Cause” Definition.  For purposes of your Offer Letter, “Cause” means any one or more of the following:

 

(i)             You commit any act of fraud, misappropriation, theft, dishonesty, or other act of moral turpitude;

(ii)            You breach or neglect the duties you are required to perform under the terms of the Offer Letter;

(iii)          You engage in willful misconduct in the performance of your duties hereunder, commit insubordination (in the sole, reasonable discretion of the CEO or the Board), or otherwise fail to perform your duties hereunder as directed by the CEO or the Board; and

(iv)          You are guilty of, convicted of, or plead guilty or nolo contendere to, a felony, crime of moral turpitude or other serious offense.

 

B.       “Change in Control” Definition.  For purposes of your Offer Letter, “Change in Control” means the occurrence of any of the following events:

 

(i)             Change in Ownership of the Company.  A change in the ownership of the Company which occurs on the date that any one person, or more than one person acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than 50% of the total voting power of the stock of the Company; or

(ii)           Change in Effective Control of the Company.  If the Company has a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended, a change in the effective control of the Company which occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by members of the Board whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election.  For purposes of this subsection (ii), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change in Control; or

(iii)          Change in Ownership of a Substantial Portion of the Company’s Assets.  A change in the ownership of a substantial portion of the Company’s assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than 50% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions.  For purposes of this subsection (iii), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.

 

For purposes of this Section B, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.

 

Notwithstanding the foregoing, a transaction will not be deemed a Change in Control unless the transaction qualifies as a change in control event within the meaning of Section 409A (as defined below).

 

C.       “Good Reason” Definition.  For purposes of your Offer Letter, “Good Reason” means the occurrence of one or more of the following, without your written consent:

 

(i)        A material diminution in your base compensation, other than as part of a general reduction in the base compensation of all similarly situated employees;

(ii)           A material diminution in your authority, duties or responsibilities;

(iii)         A material diminution in the authority, duties or responsibilities of the CEO or the requirement that you report to a corporate officer or employee other than the CEO or the Board;

(iv)         A material diminution in the budget over which you retain authority;

(v)           A material change in the geographic location at which you must perform services; and

(vi)      Any other action or inaction that constitutes a material breach by the Company of this Offer Letter.

 

Notwithstanding any other provision of this Offer Letter to the contrary, your resignation will not be for Good Reason unless: (a) you notify the Company in writing of the condition that you believe constitutes Good Reason within ninety (90) days after the initial existence thereof (which notice reasonably identifies such condition and the details regarding its existence), (b) the Company fails to remedy such condition within thirty (30) days after the date on which it receives such notice (the “Cure Period”), and (c) you terminate employment with the Company (and its subsidiaries and affiliates) within twelve (12) months of the initial existence of the conditions giving rise to Good Reason.

 

D.      “Involuntary Termination” Definition.  For purposes of your Offer Letter, “Involuntary Termination” means either (i) the Company terminates your employment without Cause; or (ii) you resign for Good Reason.

 

E.        Release of Claims. As a condition to receiving the Severance, you will be required to sign a waiver and release of all claims arising out of your employment with AXT and its subsidiaries and affiliates (the “Release”). The Release will be in a form specified by AXT.  The Release will include specific information regarding the amount of time you will have to consider the terms of the Release and return the signed agreement to AXT; provided, however, that in all cases the Release must become effective and irrevocable no later than the sixtieth (60th) day following the date of termination of your employment with AXT (the “Release Deadline Date”).  If the Release does not become effective and irrevocable by the Release Deadline Date, you will forfeit any right to the Severance.  In no event will the Severance be paid to you until the Release becomes effective and irrevocable.

 

F.        Severance Payment Timing.  Provided that the Release becomes effective and irrevocable by the Release Deadline Date and subject to Section G below, the Severance will be paid, or in the case of installments, will commence, within ten (10) days following the date that the Release becomes effective and irrevocable (such payment date, the “Severance Start Date”), and any Severance otherwise payable to you during the period immediately following your termination of employment with AXT through the Severance Start Date will be paid in a lump sum to you on the Severance Start Date, with any remaining payments to be made as provided in your Offer Letter.

 

G.       Section 409A.

 

(i)           Notwithstanding anything to the contrary in your Offer Letter (including this Appendix A), no Severance to be paid to you, if any, that, when considered together with any other severance payments or separation benefits, are considered deferred compensation under Section 409A of the Internal Revenue Code of 1986, as amended, and the final regulations and any guidance promulgated thereunder (“Section 409A”) (together, the “Deferred Payments”) will be paid or provided until you have a “separation from service” within the meaning of Section 409A.  Similarly, no Severance payable to you, if any, that otherwise would be exempt from Section 409A pursuant to Treasury Regulation Section 1.409A‐1(b)(9) will be payable until you have a “separation from service” within the meaning of Section 409A.

(ii)          It is intended that the Severance will not constitute Deferred Payments but rather will be exempt from Section 409A as a payment that would fall within the “short-term deferral period” as described in subsection (iv) below or resulting from an involuntary separation from service as described in subsection (v) below.  In no event will you have discretion to determine the taxable year of payment of any Deferred Payment.  Any Severance that would be considered Deferred Payments will be paid on, or in the case of installments, commence on, the sixty-first (61st) day following your separation from service, or if later, such time as required by subsection (iii) below.  Further, except as required by subsection (iii) below, any Severance that otherwise would have been paid to you during the sixty (60) day period immediately following your separation from service but for the preceding sentence will be paid to you on the sixty-first (61st) day following your separation from service and any remaining payments will be made as provided in your Offer Letter.

(iii)         Notwithstanding anything to the contrary in your Offer Letter (including this Appendix A), if you are a “specified employee” within the meaning of Section 409A at the time of your separation from service (other than due to death), then the Deferred Payments, if any, that are payable within the first six (6) months following your separation from service, will become payable on the date six (6) months and one (1) day following the date of your separation from service.  All subsequent Deferred Payments, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, in the event of your death following your separation from service, but before the six (6) month anniversary of the separation from service, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of your death and all other Deferred Payments will be payable in accordance with the payment schedule applicable to each payment or benefit.  Each payment and benefit payable under your Offer Letter is intended to constitute a separate payment under Section 1.409A‐2(b)(2) of the Treasury Regulations.

(iv)         Any amount paid under your Offer Letter that satisfies the requirements of the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations will not constitute Deferred Payments for purposes of subsection (i) above.

 

(v)          Any amount paid under your Offer Letter that qualifies as a payment made as a result of an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that does not exceed the Section 409A Limit (as defined below) will not constitute Deferred Payments for purposes of subsection (i) above.

 

The foregoing provisions are intended to comply with or be exempt from the requirements of Section 409A so that none of the payments and benefits to be provided under your Offer Letter will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply or be exempt.  Notwithstanding anything to the contrary in your Offer Letter, AXT reserves the right to amend the Offer Letter as it deems necessary or advisable, in its sole discretion and without your consent, to comply with Section 409A or to avoid income recognition under Section 409A prior to the actual payment of the Severance or imposition of any additional tax.  In no event will AXT reimburse you for any taxes that may be imposed on you as result of Section 409A.

 

For purposes of this Section G, “Section 409A Limit” means two (2) times the lesser of: (a) your annualized compensation based upon the annual rate of pay paid to you during your taxable year preceding your taxable year of your termination of employment as determined under, and with such adjustments as are set forth in, Treasury Regulation Section 1.409A‐1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto; or (b) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Internal Revenue Code of 1986, as amended, for the year in which your employment is terminated.Exhibit 10.1

 Exhibit 10.1 

SEPARATION AGREEMENT 

THIS SEPARATION AGREEMENT (this “Agreement”) is made and entered into on June 28, 2015, by and between
Martin T. Thall (“Employee”) and Visteon Corporation (together with its subsidiaries, “Visteon” or the “Company”). 

WHEREAS, Employee and the Company are parties to that certain change in control agreement, dated November, 2013 (the “Change in Control
Agreement”); 
 WHEREAS, Employee and the Company have mutually agreed that Employee’s employment will terminate effective on
July 1, 2015 (the “Effective Date”); and 
 WHEREAS, Employee and the Company desire to mutually, amicably and finally
resolve and compromise all matters arising from Employee’s employment by the Company and the termination thereof. 
 NOW, THEREFORE,
for and in consideration of the covenants, promises, and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

1. Separation. Employee acknowledges that his employment will terminate effective on the Effective Date. Except as otherwise provided
in this Agreement, all benefits and perquisites of employment shall cease as of the Effective Date, and Employee will not be entitled to any further wages, other forms of compensation, or other benefits, except any vested benefits under any employee
benefit plans in which Employee participated, or as otherwise required by law. 
 2. Separation Benefits. 

a. In consideration of Employee’s execution of this Agreement, provided that the Employee signs and delivers to the Company, and does not
revoke, a general release of claims agreement in favor of the Company substantially in the form of Exhibit A hereto (the “Release”) and provided that such Release becomes effective within forty-five (45) days following the
Effective Date, Employee shall be entitled to receive the following: 
 i. the payments and benefits referred to in Sections 5 and 6 of the
Change in Control Agreement calculated as of the Effective Date pursuant to the terms of such agreement; 
 ii. full vesting of
Employee’s restricted stock units that remain unvested as of immediately prior to the Effective Date pursuant to the terms of such award; 

  
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 iii. full vesting of Employee’s Special Electronics Incentive Award pursuant to the terms
of such award payable in a lump sum promptly after determination of the amount of such award; 
 iv. payment in lieu of untaken vacation
accrued as of the Effective Date; and 
 v. in lieu of any entitlements Employee may have under the Company’s International Long-Term
Assignment Policy, (u) reimbursement for reasonable expenses incurred in connection with the repatriation of Employee’s household goods to the United States and for transporting Employee’s household goods to his home in Seattle,
Washington, including any associated taxes; (v) reimbursement for reasonable expenses incurred in connection with transporting Employee’s household goods in Detroit to Seattle up to an aggregate of $10,000; (w) the Company’s
assumption of the car lease and the house lease Employee entered into in connection with his service to the Company in Germany, (x) reimbursement for up to $10,000 for business class airfare in connection with Employee’s return from
Germany; (y) reimbursement for Employee’s hotel costs for thirty (30) days at up to $300 per night in connection with Employee’s return from Germany; and (z) an allowance of up to $10,000 for other reasonable expenses
associated with Employee’s return from Germany, subject, in each case (u) through (z), to documentation of such expenses to the reasonable satisfaction of the Company. Employee shall be entitled to continue to utilize the tax accounting
services of Deloitte at the Company’s expense for the 2015 and 2016 tax years. 
 b. Within forty-five (45) days following the
Effective Date, Employee shall submit all unpaid business-related expenses incurred during Employee’s employment with the Company, and the Company shall reimburse Employee, in accordance with the Company’s policies and procedures, within
thirty (30) business days after Employee’s submission of such expenses. 
 c. Subject to Sections 2(a) and 11, the payments and
benefits set forth in Section 2(a)(i) through (iii) above shall be paid and/or provided to Employee in accordance with the terms of the Change in Control Agreement, Employee’s applicable equity award agreements and Employee’s
Special Electronics Incentive Award. Employee acknowledges that, upon and following the payment and provision of the amounts and benefits set forth in Section 2(a)(i) through (v), he shall have no right to any additional payments or benefits
under the Change in Control Agreement (except as otherwise provided in Section 6.4 thereof), any equity or equity-related plan or agreement or any other agreement, plan or arrangement of or with the Company except for (x) vested benefits
under any employee benefit plan in which Employee participated or as otherwise required by law, and (y) indemnification as provided in the Company’s Second Amended and Restated Certificate of Incorporation and Third Amended and Restated
Bylaws. 
 3. Continued Adherence to Covenants. Employee acknowledges and agrees that he shall continue to be subject to and bound by
all the covenants set forth in Section 4 of the 

  
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Change in Control Agreement pursuant to the terms set forth therein. For purposes of clarification, it is understood that the non-competition provisions in Section 4.2 thereof are for a
period of twelve (12) months following the Effective Date. 
 4. Cooperation. 

a. Employee agrees to cooperate with the Company in regard to the transition of business matters handled by Employee on behalf of the Company
prior to the Effective Date as may be requested of Employee by the Company from time to time following the Effective Date, including without limitation that Employee specifically agrees that for a period of six (6) months following the
Effective Date, he will forward to the Company’s Chief Executive Officer (or any representative delegated by the Chief Executive Officer) any business-related request or other communication the he receives from any customer, client or employee
of the Company and will by the Effective Date provide to the Company’s Chief Executive Officer (or any representative delegated by the Chief Executive Officer) to the best of his reasonable ability under the circumstances (i) customer
contact information and a summary of new or pending business, including current status; (ii) documentation of the current status of the top 15 technical programs; (iii) a list of merger and acquisition targets based on Employee’s
current knowledge of the Company’s industry, position and strategies; and (iv) a summary of the current employees and employee projects of those employees who report directly or indirectly to Employee. 

b. Employee agrees to reasonably cooperate with the Company and its counsel in relation to any internal investigation and in the defense or
prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company which relate in any way to events or occurrences that transpired while Employee was employed by the Company.
Employee’s cooperation in connection with such claims or actions will include, but not be limited to, being reasonably available on reasonable advance notice to meet with Company counsel to prepare for discovery or any legal proceeding, and to
act as a witness on behalf of the Company at mutually convenient times. The Company will reimburse Employee for all reasonable, pre-approved out-of-pocket costs and expenses (but not including attorney’s fees and costs, or compensation for
time) that Employee incurs in connection with Employee’s obligations under this Section 4(b) of this Agreement. 
 5.
Assignment of Inventions. Employee hereby assigns to the Company, or its designee, all of Employee’s right, title and interest throughout the world in and to any and all inventions, original works of authorship, designs, trademarks,
formulae, processes, domain names, databases (and the contents thereof), developments, concepts, know-how, improvements of trade secrets, whether or not patentable or registrable under patent, copyright, trademark or similar laws, which Employee
solely or jointly conceived or developed or reduced to practice, or caused to be conceived or developed or reduced to practice, during Employee’s employment with the Company, except for any invention listed on Exhibit B, if applicable,
which in each case either: (i) was made by Employee prior to the commencement of Employee’s employment with 

  
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the Company or (ii) was developed by Employee entirely on his own time without using the Company’s or any of its affiliates’ equipment, supplies, facilities, or trade secret
information (other than inventions that either relate at the time of conception or reduction to practice of the invention to the Company’s business, or actual or demonstrably anticipated research or development of the Company or result from any
work performed by Employee for the Company). Unless Employee has completed, signed and returned Exhibit B together with this Agreement, Employee acknowledges and agrees that Employee does not have any inventions that qualify fully under
provisions (i) or (ii) above. Upon request by the Company, Employee agrees to execute any and all applications, assignments or other instruments that the Company deems necessary to evidence the foregoing assignment or to apply for and
obtain patents or trademark or copyright registrations in the United States or any foreign country or otherwise to protect the Company’s interest therein (without additional compensation to Employee). Furthermore, Employee hereby appoints each
of the Company’s managers, acting severally, as Employee’s attorney-in-fact to execute such documents on Employee’s behalf. 

6. Return of Property. Employee agrees that he will return to the Company on or prior to the Effective Date all of the Company’s
property in his possession or control, including records, vendor/client lists, other lists, data, notes, reports, proposals, correspondence, specifications, drawings, blueprints, sketches, laboratory notebooks, flow charts, materials, equipment,
other documents or property or other non-public information, or copies or reproductions of any of the aforementioned items, electronic devices (including, but not limited to, any laptop computer, tablet, smartphone or similar device, or other
cellphone), or other documents or property which, in each case, Employee obtained, received or produced in connection with his employment with the Company or that was within Employee’s possession or control, and will confirm on such date that
he has made reasonable efforts to locate all such property. Irrespective of the foregoing, in the event that Company property, which was inadvertently retained, is located in Employee’s control or possession after the Effective Date, Employee
will return such property to the Company as soon as practicable upon its discovery by Employee. 
 7. Resignation from Boards, Industry
Associations. Employee agrees that within thirty (30) days following the Effective Date, he will resign from all board and industry association memberships that were undertaken on behalf of and in connection with his role at the Company.

 8. Complete Agreement; Governing Law; Arbitration. This Agreement, along with the surviving provisions of the Change in Control
Agreement, constitute the entire agreement between Employee and the Company pertaining to the subjects contained in them and supersedes any and all prior and/or contemporaneous agreements, representations, or understandings, written or oral,
applicable to Employee’s employment. It is expressly understood and agreed that this Agreement may not be altered, amended, modified or otherwise changed in any respect whatsoever except in writing duly executed by Employee and a duly
authorized representative of the Company. This Agreement is intended to fully, completely and forever resolve all disputes 

  
 4 

 
based upon events, omissions or acts occurring on or prior to the time of its execution as well as all other issues or claims in any way arising out of or connected with the prior employment of
Employee with the Company or the separation of that employment. 
 a. This Agreement shall be deemed to be made in, and in all respects
shall be interpreted, construed, and governed by and in accordance with the laws of the State of Delaware, notwithstanding any choice of law provisions otherwise requiring application of other laws. It shall be interpreted according to the fair
meaning of the terms herein and not strictly in favor of, or against, either party. 
 b. Any dispute or controversy arising under or in
connection with this Agreement, the Change in Control Agreement or the Employee’s employment with or termination from the Company shall be settled by arbitration, conducted before a single arbitrator in accordance with the National Rules for
the Resolution of Employment Disputes of the American Arbitration Association then in effect. The decision of the arbitrator will be final and binding upon the parties hereto. Judgment may be entered on the arbitrator’s award in any court
having jurisdiction. The parties acknowledge and agree that in connection with any such arbitration the non-prevailing party (if one is so determined by the arbitrator) shall pay all costs and expenses, including, without limitation, legal fees and
expenses, of the prevailing party to the extent determined by the arbitrator. Notwithstanding the foregoing or anything else in this Agreement to the contrary, either party may seek specific performance and injunctive and other equitable relief from
any court of competent jurisdiction. 
 9. Notices. Any notice required or permitted to be given hereunder shall be deemed properly
given and received if sent by (a) registered or certified United States First Class Mail, postage prepaid and return receipt requested, the earlier of actual receipt or ten (10) days after being sent, or (b) upon actual receipt if
sent by (i) hand delivery, or (ii) a commercially reputable overnight courier, to the parties at their respective addresses shown on the signature page hereto, or to such other address(es) either party may give notice from time to time by
the same means as provided in this Section. 
 10. Statement of Non-Admission. Nothing in this Agreement is intended as or shall be
construed as an admission or concession of liability or wrongdoing by the Company or any of the Released Parties (as defined in the Release). Rather, the proposed Agreement is being offered for the sole purpose of settling cooperatively and amicably
any and all possible disputes described in the Release. 
 11. Section 409A. Notwithstanding any other payment schedule provided
herein to the contrary, if the Employee is deemed on the date of termination to be a “specified employee” within the meaning of that term under Section 409A(a)(2)(B) of the Internal Revenue Code (the “Code”), then with
regard to any payment or the provision of any benefit that is considered “nonqualified deferred compensation” under Section 409A of the Code payable on account of a “separation from service,” that would, but for this
sentence, be paid or provided before the 

  
 5 

 
expiration of the six-month period measured from the date of the Employee’s “separation from service,” such payment or benefit shall be made on the date which is the earlier of
(A) the expiration of the six-month period measured from the date of the Employee’s “separation from service,” and (B) the date of the Employee’s death, to the extent required under Section 409A of the Code. Upon
the expiration of the foregoing delay period, all payments and benefits delayed pursuant to this Section (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to
the Employee in a lump sum, and all remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein. 

12. Withholding Taxes. The Company may withhold from any amounts payable under this Agreement such Federal, state and local taxes as
may be required to be withheld pursuant to any applicable law or regulation. 
 13. Discontinuation of Separation Benefits. Employee
agrees that the Company may recover from benefits payable to Employee pursuant to this Agreement all damages incurred following the Effective Date as a result of (i) Employee engaging in any misconduct that materially injures the Company;
(ii) Employee materially violating any of the covenants in Section 4 of the Change in Control Agreement; (iii) Employee misappropriating, misusing or disclosing any confidential, proprietary or trade secret information learned while
employed with the Company; or (iv) Employee failing to return Company documents, records or property, as required pursuant to Section 6 above. 

14. Interpretation and Severability. The terms and provisions of this Agreement shall inure to the benefit of any of the Company’s
successors or assigns. Nothing in this Agreement is intended to violate any law or shall be interpreted to violate any law. The terms, conditions, covenants, restrictions, and other provisions contained in this Agreement are separate, severable and
divisible. If any Section or part or subpart of any Section in this Agreement or the application thereof is construed to be overbroad and/or unenforceable, then the court making such determination shall have the authority to narrow the Section or
part or subpart of the Section as necessary to make it enforceable and the Section or part or subpart of the Section shall then be enforceable in its/their narrowed form. Moreover, each Section or part or subpart of each Section in this Agreement is
independent of and severable (separate) from each other. In the event that any Section or part or subpart of any Section in this Agreement is determined to be legally invalid or unenforceable by a court and is not modified by a court to be
enforceable, the affected Section or part or subpart of such Section shall be stricken from this Agreement, and the remaining Section or parts or subparts of such Sections of this Agreement shall remain in full force and effect. 

15. Headings. The headings contained in this Agreement are for convenience of reference only and are not intended, and shall not be
construed, to modify, define, limit, or expand the intent of the parties as expressed in this Agreement, and they shall not affect the meaning or interpretation of this Agreement. 

  
 6 

 16. Assignment. Employee shall not assign or transfer rights or obligations under this
Agreement, but rather all such rights and obligations shall be binding upon and inure only to Employee and all heirs, legatees, and legal representatives of Employee, and upon and to the Company and each of the other Released Parties and their
respective successors, assigns, heirs, legatees, and legal representatives. 
 17. Acknowledgments. The parties acknowledge that the
Company is not undertaking to advise Employee with respect to any tax or other consequences of this Agreement and that Employee is solely responsible for determining those consequences. Employee has read this Agreement and understands its terms.
Employee has been provided with a full and fair opportunity to consult with an attorney of Employee’s choosing and to obtain any and all advice deemed appropriate with respect to this Agreement. Further, the parties acknowledge that, while
Employee agrees to maintain the confidentiality of this Agreement and waives claims for remedies, nothing in this Agreement shall limit the ability of Employee or the Company (or any of its officers, directors, employees, representatives, agents or
assigns) to confer with legal counsel, to testify truthfully under subpoena or court order, or to initiate, provide truthful information for, or cooperate with, an investigation by a municipal, state or federal agency for enforcement of laws. This
Agreement has been entered into with the understanding that there are no unresolved claims of any nature that Employee has against the Company. Employee acknowledges and agrees that, except with regard to the separation benefits described in
Section 2 of this Agreement, all wages and other compensation due Employee by the Company or any of the Released Parties, whether by contract or by law, have been paid in full, and Employee has received all rights and benefits to which Employee
is entitled without interference by the Company, including, but not limited to, vacation, sick time, paid or unpaid time off, family and medical leave, accommodation for any disability, or any contractual rights or privileges, and that Employee has
no outstanding claims for any compensation or benefits. Employee further agrees that the representations and understandings set forth in this Section have been relied upon by the Company and constitute consideration for the Company’s execution
of this Agreement. In light of the foregoing, the parties are satisfied with the terms of this Agreement and agree that its terms are binding upon them. 

18. Counterparts. This Agreement may be executed by Employee and the Company in separate counterparts, each of which, when so executed
and delivered, when taken as a whole, shall constitute one and the same instrument. 
 THE UNDERSIGNED HAVE CAREFULLY READ THIS AGREEMENT.
THEY ACKNOWLEDGE THAT THEY HAVE HAD ACCESS TO LEGAL COUNSEL OF THEIR OWN CHOOSING AND HAVE OBTAINED ALL LEGAL ADVICE THEY DEEM NECESSARY TO FULLY UNDERSTAND THE TERMS AND CONDITIONS OF THIS AGREEMENT. EACH PARTY AGREES TO BE FULLY BOUND BY THIS
AGREEMENT. THE PARTIES ARE ENTERING INTO THIS AGREEMENT FREELY AND VOLUNTARILY WITHOUT DURESS OR COERCION. 

  
 7 

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 8 

									
	ACCEPTED AND AGREED:		
					
	By:		 /s/ Martin T. Thall
				 6/28/2015
		
			Martin T. Thall				Date		
				
	Visteon Corporation						
					
	By:		 /s/ Francis M. Scricco
				 6/28/2015
		
			Francis M. Scricco				Date		
			Chairman						

  
 9 

 EXHIBIT A 

GENERAL RELEASE 
 I,
Martin T. Thall, in consideration of and subject to the performance by Visteon Corporation (together with its subsidiaries, the “Company”), of its obligations under Section 2 of the Separation Agreement, dated as of
                    (the “Agreement”), do hereby release and forever discharge as of the date hereof the Company and its respective
affiliates and subsidiaries and all present, former and future directors, officers, agents, representatives, employees, successors, and assigns of the Company and/or its respective affiliates and subsidiaries and direct or indirect owners, in each
case when acting in such a capacity (collectively, the “Released Parties”) to the extent provided herein (this “General Release”). 

1. I understand that a portion of the payments or benefits paid or granted to me under Section 2 of the Agreement represent, in part,
consideration for signing this General Release and are not salary, wages or benefits to which I was already entitled. I understand and agree that I will not receive the payments and benefits specified in Section 2 of the Agreement unless I
execute this General Release and do not revoke this General Release within the time period permitted hereafter or breach this General Release. Such payments and benefits will not be considered compensation for purposes of any employee benefit plan,
program, policy or arrangement maintained or hereafter established by the Company or its affiliates. 
 2. Except as provided in paragraph 4
below and except for the provisions of the Agreement which expressly survive the termination of my employment with the Company, I knowingly and voluntarily (for myself, my heirs, executors, administrators and assigns) release and forever discharge
the Company and the other Released Parties from any and all claims, suits, controversies, actions, causes of action, cross-claims, counter-claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages, other
damages, claims for costs and attorneys’ fees, or liabilities of any nature whatsoever in law and in equity, both past and present (through the date that this General Release becomes effective and enforceable) and whether known or unknown,
suspected, or claimed against the Company and/or any of the Released Parties which I, my spouse, or any of my heirs, executors, administrators or assigns, ever had, now have, or hereafter may have, by reason of any matter, cause, or thing
whatsoever, from the beginning of my initial dealings with the Company to the date of this General Release, and particularly, but without limitation of the foregoing general terms, any claims arising from or relating in any way to my employment
relationship with Company, the terms and conditions of that employment relationship, and the termination of that employment relationship (including, but not limited to, any allegation, claim or violation, arising under: Title VII of the Civil Rights
Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of
1990; the Family and Medical Leave Act of 1993; the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state or
local counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance; or under any public policy, contract or tort, or under common law; or arising under
any policies, practices or procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation; or any claim for costs, fees, or other expenses, including attorneys’ fees incurred in
these matters) (all of the foregoing collectively referred to herein as the “Claims”). 

  
 1 

 3. I represent that I have made no assignment or transfer of any right, claim, demand, cause of
action, or other matter covered by paragraph 2 above. 
 4. I agree that this General Release does not waive or release any rights or claims
that I may have under the Age Discrimination in Employment Act of 1967 which arise after the date I execute this General Release. I acknowledge and agree that my separation from employment with the Company in compliance with the terms of the
Agreement shall not serve as the basis for any claim or action (including, without limitation, any claim under the Age Discrimination in Employment Act of 1967). 

5. I agree that I hereby waive all rights to sue or obtain equitable, remedial or punitive relief from any or all Released Parties of any kind
whatsoever, including, without limitation, reinstatement, back pay, front pay, and any form of injunctive relief. Notwithstanding the foregoing, I acknowledge that I am not waiving and am not being required to waive any right that cannot be waived
under law, including the right to file an administrative charge or participate in an administrative investigation or proceeding; provided, however, that I disclaim and waive any right to share or participate in any monetary award resulting from the
prosecution of such charge or investigation or proceeding. 
 6. In signing this General Release, I acknowledge and intend that it shall be
effective as a bar to each and every one of the Claims hereinabove mentioned or implied. I expressly consent that this General Release shall be given full force and effect according to each and all of its express terms and provisions, including
those relating to unknown and unsuspected Claims (notwithstanding any state or local statute that expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating to any
other Claims hereinabove mentioned or implied. I acknowledge and agree that this waiver is an essential and material term of this General Release and that without such waiver the Company would not have agreed to the terms of the Agreement. I further
agree that in the event that I should bring a Claim seeking damages against the Company, or in the event that I should seek to recover against the Company in any Claim brought by a governmental agency on my behalf, this General Release shall serve
as a complete defense to such Claims to the maximum extent permitted by law. I further agree that I am not aware of any pending claim, or of any facts that could give rise to a claim, of the type described in paragraph 2 as of the execution of this
General Release. 
 7. I agree that neither this General Release, nor the furnishing of the consideration for this General Release, shall be
deemed or construed at any time to be an admission by the Company, any Released Party or myself of any improper or unlawful conduct. 
 8. I
agree that I will forfeit all amounts payable by the Company pursuant to the Agreement if I challenge the validity of this General Release and will return all payments received by me pursuant to the Agreement on or after the termination of my
employment.. I also agree that if I violate this General Release by suing the Company or the other Released Parties, I will pay all costs and expenses of defending against the suit incurred by the Released Parties, including reasonable
attorneys’ fees, if the Released Parties prevail in such suit, 

  
 2 

 9. I agree that this General Release and the Agreement are confidential and agree not to disclose
any information regarding the terms of this General Release or the Agreement, except to my immediate family and any tax, legal or other counsel that I have consulted regarding the meaning or effect hereof or as required by law, and I will instruct
each of the foregoing not to disclose the same to anyone. The Company agrees to disclose any such information only to any tax, legal or other counsel of the Company as required by law. 

10. Any non-disclosure provision in this General Release does not prohibit or restrict me (or my attorney) from responding to any inquiry
about this General Release or its underlying facts and circumstances by the Securities and Exchange Commission, the Financial Industry Regulatory Authority, or any other self-regulatory organization or governmental entity. 

11. I hereby acknowledge that Sections 2 through 13 and 15 of the Separation Agreement (and any provisions of this Agreement or any other
agreements referenced therein) shall survive my execution of this General Release. 
 12. I represent that I am not aware of any Claim by
me, and I acknowledge that I may hereafter discover Claims or facts in addition to or different than those which I now know or believe to exist with respect to the subject matter of the release set forth in paragraph 2 above and which, if known or
suspected at the time of entering into this General Release, may have materially affected this General Release and my decision to enter into it. 

13. Notwithstanding anything in this General Release to the contrary, this General Release shall not relinquish, diminish, or in any way
affect any right or claim arising out of any breach by the Company or by any Released Party of the Agreement after the date hereof. 
 14.
Whenever possible, each provision of this General Release shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this General Release is held to be invalid, illegal or unenforceable in any
respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this General Release shall be reformed, construed and enforced in such
jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein. 
 BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND
AGREE THAT: 
 1. I HAVE READ IT CAREFULLY; 

2. I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE
DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED, THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990, AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED;

  
 3 

 3. I VOLUNTARILY CONSENT TO EVERYTHING IN IT; 

4. I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL READING AND CONSIDERATION, I HAVE
CHOSEN NOT TO DO SO OF MY OWN VOLITION; 
 5. I HAVE HAD AT LEAST 21 DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE TO CONSIDER IT AND THE
CHANGES MADE SINCE MY RECEIPT OF THIS RELEASE ARE NOT MATERIAL OR WERE MADE AT MY REQUEST AND WILL NOT RESTART THE REQUIRED 21-DAY PERIOD; 

6. I UNDERSTAND THAT I HAVE SEVEN DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR
ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED; 
 7. I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE
OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND 
 8. I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED,
WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME. 
  

			
	SIGNED:		  

			MARTIN T. THALL
		
	DATE:		July    , 2015

  
 4 

 EXHIBIT B

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