Document:

cub_Ex10_1

		
			Exhibit 10.1
		

		
			 
		

		
			CERTAIN INFORMATION (INDICATED BY ASTERISKS) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED INFORMATION HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
		

		
			 
		

		
			 
		

		
			SEPARATION AGREEMENT AND GENERAL RELEASE
		

		
			 
		

		
			This Separation Agreement and General Release ("Agreement") is made by and between Cubic Global Defense, Inc.("CUBIC") and Bill Toti (“EMPLOYEE"), as of the date both parties have signed it below, with respect to the following facts:
		

		
			 
		

		
			A. EMPLOYEE and CUBIC have mutually agreed to separate their employment relationship. 
		

		
			 
		

		
			B. CUBIC and EMPLOYEE wish to enter into an agreement with regard to the separation of that employment relationship to resolve any and all issues relating to CUBIC’s employment of EMPLOYEE and the separation thereof.
		

		
			 
		

		
			THE PARTIES THEREFORE AGREE AND PROMISE in consideration of all of the following terms and conditions as follows:
		

		
			 
		

		
			1.  Separation Date. EMPLOYEE’s last day acting as President of Cubic Global Defense, Inc. will be May 24, 2016 (“Last Active Date”); however, EMPLOYEE will remain an inactive, paid employee of CUBIC through July 1, 2016 (the “Separation Date”). EMPLOYEE agrees to resign as an officer and director of Cubic Corporation and all of its subsidiaries, as applicable, no later than his Separation Date. 
		

		
			 
		

		
			2.  Separation Pay and Benefits. In full consideration of EMPLOYEE signing, returning, and not revoking this Agreement within the time periods specified below in section 20, CUBIC will provide EMPLOYEE with the following separation benefits to which employee is not otherwise entitled:
		

		
			 
		

		
			a. Separation Pay. CUBIC will provide EMPLOYEE separation pay in the total gross amount of six hundred and seventy-five thousand dollars ($675,000.00) (“Separation Pay”). The Separation Pay will be provided to EMPLOYEE in two lump sum payments. The first lump sum payment in the total gross amount of four hundred thirty-seven thousand five hundred dollars ($437,500.00) will be made on the first regular CUBIC pay day after the Effective Date of this Agreement, as defined below, or EMPLOYEE’s Separation Date, whichever is later. Provided EMPLOYEE remains in compliance with all provisions of this Agreement for a period of twelve (12) months following his Separation Date, CUBIC will pay EMPLOYEE the balance of the Separation Pay in the total gross amount of two hundred thirty-seven thousand five hundred dollars ($237,500.00) on the next regular CUBIC payroll date following the 12-month anniversary of EMPLOYEE’s Separation Date. All Separation Pay will be subject to usual and customary payroll deductions and required tax withholdings.
		

		
			 
		

		
			b.Insurance Benefit. If EMPLOYEE timely elects to continue EMPLOYEE’s insurance benefits under the provisions of COBRA subsequent to his Separation Date, CUBIC will pay EMPLOYEE’s COBRA premiums for twelve (12) months following EMPLOYEE’s 
		

		
			

		 

 

Separation Date, subject to any group coverage changes. After twelve (12) months’ time, EMPLOYEE will be responsible for any COBRA premiums necessary to provide medical and dental coverage. If any of CUBIC's health benefits are self-funded as of the date of Employee's separation, or if CUBIC cannot provide the foregoing benefits in a manner that is exempt from Section 409A of the Code or that is otherwise compliant with applicable law (including, without limitation, Section 2716 of the Public Health Service Act), instead of providing the benefits as set forth above, CUBIC shall instead pay to Employee the foregoing monthly amount as a taxable monthly payment for the Separation Pay Period (or any remaining portion thereof). The “COBRA qualifying event” will be EMPLOYEE’s separation from CUBIC. COBRA election materials and forms will be provided to EMPLOYEE separately. EMPLOYEE must sign and return these forms in a timely manner to be eligible for the foregoing COBRA benefits.
		

		
			 
		

		
			c.Restricted Stock Units. Pursuant to the Cubic Corporation 2015 and 2016 Equity Incentive Plan(s), EMPLOYEE has been granted restricted stock units ("RSUs") pursuant to Restricted Stock Unit Award Grant Notices and Restricted Stock Unit Award Agreements between EMPLOYEE and the Company (each, an "RSU Agreement"). EMPLOYEE will continue to be eligible to vest in those RSUs the vesting of which is time-based through EMPLOYEE'S Separation Date in accordance with the terms of the applicable RSU Agreements. EMPLOYEE will retain only those RSUs that vest in accordance with their terms on or before EMPLOYEE’s Separation Date and any unvested RSUs shall terminate. 
		

		
			 
		

		
			For purposes of EMPLOYEE’s performance-based RSUs granted on November 6, 2014, upon the Separation Date, EMPLOYEE will vest in a prorated portion of the Target RSUs (as defined in the applicable RSU Agreement) based on the amount of time EMPLOYEE was employed since the grant date(s) through the Separation Date as provided in the applicable RSU Agreement evidencing such awards.
		

		
			 
		

		
			For purposes of EMPLOYEE’s performance-based RSUs granted on November 6, 2015, EMPLOYEE will remain eligible to vest, on the Determination Date (as defined in the RSU Agreement) in a prorated portion of such RSUs based on the amount of time EMPLOYEE was employed since the grant date(s) through the Separation Date as provided in the RSU Agreement evidencing such awards.
		

		
			 
		

		
			b.Performance Bonus. EMPLOYEE will be paid a prorated FY16 performance bonus at the target amount, based on the amount of time EMPLOYEE worked during the 2016 fiscal year, through his Last Active Date. The prorated performance bonus shall be paid to EMPLOYEE in one lump, minus required tax withholdings, within seven (7) business days of EMPLOYEE’s Separation Date. 
		

		
			 
		

		
			c.Sign On/Retention Bonus. CUBIC shall have no obligation to pay any additional sign on/retention bonus payments to EMPLOYEE, and EMPLOYEE shall have no obligation to repay any sign on/retention bonus payments provided to him prior to his Separation Date, pursuant to his Offer Letter dated May 15, 2014. 
		

		
			 
		

		
			d.Outplacement. EMPLOYEE will be provided, at his option, with a paid three (3) month executive career assistance program via Lee Hecht Harrison or similar provider during the three months following the Separation Date.
		

		
			 
		

		
			
		

		
			

		 

 

e.Attorneys’ Fees. CUBIC shall reimburse EMPLOYEE for attorneys’ fees actually incurred for legal advice regarding his separation from CUBIC and review of this Agreement, up to a maximum amount of ten thousand dollars ($10,000.00), upon submission to CUBIC of documentary proof of the incurred fees. 
		

		
			 
		

		
			EMPLOYEE agrees that the above separation pay and benefits constitute adequate consideration for the full and final satisfaction of any and all claims of any nature and kind whatsoever that EMPLOYEE ever had, now has or may have against CUBIC and all other persons and entities released herein, arising through the date of this Agreement, including but not limited to any claims relating in any way to CUBIC’s employment of EMPLOYEE or the separation of EMPLOYEE’s employment.
		

		
			 
		

		
			3.  GeneralRelease of All Claims. As a material inducement to CUBIC to enter into this Agreement, and in consideration of the other conditions herein, EMPLOYEE irrevocably and unconditionally releases CUBIC, its parent company, and any of their subsidiaries, divisions, affiliates, stockholders, predecessors, successors, assigns, agents, attorneys, directors, officers, employees, representatives and all persons acting by, through, under or in concert with any of them (collectively referred to as "Releasees"), from any and all claims, complaints, liabilities, obligations, agreements, damages, actions of any nature, known or unknown, suspected or unsuspected, that EMPLOYEE ever had, now has, or hereafter may have arising through the date of this Agreement, including but not limited to any claims arising out of EMPLOYEE’s employment relationship or the separation of EMPLOYEE’s employment relationship with CUBIC.  
		

		
			 
		

		
			Also, without limiting the generality of the foregoing, EMPLOYEE agrees to waive any and all claims for breach of contract, breach of the covenant of good faith and fair dealing, employment discrimination, harassment, and retaliation in violation of any Virginia or other state or federal statute or regulation, including but not limited to, claims for violation of Title VII of the Civil Rights Act of 1964, the Family and Medical Leave Act, the Age Discrimination in Employment Act (“ADEA”), the Older Workers Benefit Protection Act, the Americans with Disabilities Act, the Virginia Human Rights Act, the Virginians with Disabilities Act, the Employee Retirement Income Security Act of 1974, the federal Worker Adjustment and Retraining Notification (“WARN”) Act of 1988, the National Labor Relations Act, as well as claims for violation of Virginia public policy or similar state or federal laws, violation of constitutional rights, as well as intentional and negligent infliction of emotional distress, defamation, fraud, and violation of Virginia’s labor statutes or similar state or federal laws. 
		

		
			 
		

		
			This General Release provision does not apply to: (1) claims by EMPLOYEE for workers’ compensation benefits or unemployment insurance benefits, except claims for wrongful termination or discrimination under the Workers’ Compensation Act or the Unemployment Insurance Code; (2) any action to enforce or challenge the enforceability of this Agreement; or (3) any other claims that, by statute, cannot be released by this Agreement. 
		

		
			4.  Discovery of Different or Additional Facts. EMPLOYEE acknowledges that EMPLOYEE may discover facts different from, or in addition to, those EMPLOYEE now knows or believes to be true with respect to the claims, complaints, liabilities, obligations, agreements, damages and actions herein released, and agrees the release herein shall be and remain in effect in all respects as a complete and general release as to all matters released herein, notwithstanding any such different or additional facts.
		

		
			5.  Confidentiality of Agreement.  EMPLOYEE agrees to maintain and hold this Agreement, and all of its terms, specifically including but not limited to the nature and amount of the 
		

		
			

		 

 

Separation Pay, in strict confidence. Accordingly, except as specifically provided in this section 5, EMPLOYEE agrees not to make any public statement about or to otherwise disseminate or disclose this Agreement or any of its terms, to any other person or business entity, including without limitation any present or former CUBIC employee, customer or business partner. It shall not be a violation of this provision for EMPLOYEE to reveal or discuss any terms of this Agreement with his spouse, or to the extent reasonably necessary to obtain legal or financial advice related to this Agreement or the parties’ respective obligations under it, to enforce this Agreement, or as required in order to respond to an audit or inquiry by a government entity or a duly issued subpoena. In the event EMPLOYEE concludes he is obligated to disclose any term of this Agreement in response to an audit or inquiry by a government entity or a subpoena, unless prohibited by law from doing so, EMPLOYEE shall provide CUBIC, through its General Counsel, no less than five (5) business days’ notice of the audit, inquiry or subpoena along with a copy of any document(s) constituting or relating to such audit, inquiry or subpoena.
		

		
			6.  Nondisparagement.  EMPLOYEE shall not make any disparaging comments, whether oral, written or via any web-based or social media vehicle, to any third person or party about CUBIC, any of its executives or employees, or its products or services, as the term “disparage” and “disparaging” is set forth in any dictionary of English or of law. Likewise, CUBIC shall instruct its corporate officers and board of directors that they are not to make any disparaging comments, whether oral, written or via any web-based or social media vehicle, to any third person or party about EMPLOYEE. This provision is not intended to prevent EMPLOYEE or CUBIC’s corporate officers and directors from providing truthful information to CUBIC or any government or law enforcement entity in response to an official request for information, or from providing truthful information in response to a duly issued subpoena. In the event EMPLOYEE receives an official request for information from a government or law enforcement entity, or a subpoena, and he concludes such request or subpoena will likely require him to provide information about CUBIC, unless prohibited by law from doing so, EMPLOYEE shall provide CUBIC, through its General Counsel, no less than (5) business days’ notice of the request or subpoena along with a copy of any document(s) constituting or relating to such request or subpoena.
		

		
			7.  Consulting Assistance During Separation Pay Period.  The twelve (12) month period following EMPLOYEE’s Separation Date is “the Separation Pay Period.” During the Separation Pay Period, EMPLOYEE agrees to be available to provide information to CUBIC related to activities EMPLOYEE was engaged in during EMPLOYEE’s employment with CUBIC (“Consulting Activities”). Such Consulting Activities shall not require more than eight (8) hours in any single work week. Compensation to EMPLOYEE for the Consulting Activities shall be included within the Separation Pay, and therefore, EMPLOYEE shall not be entitled to any additional compensation for these activities, other than any out-of-pocket expenses necessarily incurred by EMPLOYEE in connection with such activities, provided such expenses are approved in writing by CUBIC before they are incurred.
		

		
			8.  Restrictions During Separation Pay Period.  As a condition of receiving the Separation Pay and Benefits, and in order that EMPLOYEE may remain available to provide consulting assistance to CUBIC as provided in section 7 above during the Separation Pay Period, EMPLOYEE shall:(a) continue to comply with all provisions of this Agreement; and (b) shall not accept or engage in any employment, nor provide any services for remuneration in any other capacity (e.g., as an independent contractor, sole proprietor, partner, or joint venture) on any project or program for the provision of services or the design, manufacturing or sale of products or services in direct and active competition (as delineated below) with the products or services of CUBIC and its affiliated companies over which EMPLOYEE served as President (“Competitive Activities”). In the event EMPLOYEE engages in Competitive Activities during the Separation Pay 
		

		
			

		 

 

Period, or otherwise breaches a provision in this Agreement, EMPLOYEE agrees that any Separation Pay that has been paid while EMPLOYEE was engaged in Competitive Activities shall be returned to CUBIC, and EMPLOYEE’s right to receive any payments constituting Separation Pay and Benefits after the date such Competitive Activity commenced shall be irrevocably waived.
		

		
			 
		

		
			The Parties agree that projects or programs that EMPLOYEE is prohibited from participating in as an employee or consultant, i.e., will be “firewalled” from, any activities involving:[***]
		

		
			 
		

		
			In addition, during the Separation Pay Period, EMPLOYEE agrees to not accept or engage in employment or consulting services with any of the following active, direct competitors to CUBIC: [***].
		

		
			9.  Nonsolicitation. EMPLOYEE agrees that, until the passage of one (1) year after his Separation Date, EMPLOYEE shall not take any action to directly or indirectly solicit any employee or contractor of CUBIC or its affiliated companies to terminate his, her or its relationship with CUBIC, including by making any solicitation or by providing to any person or entity information about the skills, capabilities, background, or compensation of any CUBIC employee or contractor (“Solicitation Activities”). In the event EMPLOYEE engages in Solicitation Activities in breach of this provision, EMPLOYEE agrees that, in addition to any damages caused to CUBIC by such Solicitation Activities, EMPLOYEE’s right to receive any payments constituting Separation Pay and Benefits after the date such Solicitation Activity commenced shall be irrevocably waived. Nothing in this provision shall limit CUBIC’s right to seek injunctive relief related to any Solicitation Activities in breach of this provision.
		

		
			10.  Non-Disclosure of CUBIC Confidential Information. EMPLOYEE agrees that EMPLOYEE shall not use or disclose to any person(s) or entity(ies), public or private, at any time or in any manner, directly or indirectly, any “CUBIC Confidential Information,” including but not limited to, all forms and types of business, technical, financial, economic, sales, marketing or customer information of CUBIC or its affiliated companies that EMPLOYEE received, developed or had access to as a result of his employment with CUBIC, which has not been previously disclosed to the general public by an authorized CUBIC representative or customer, regardless of whether such information would be deemed a trade secret under applicable law.  
		

		
			CUBIC Confidential Information shall be interpreted broadly and also includes, but is not limited to, business strategies and plans, financial information, projections, pricing and cost information, proposals, lists of present or future customers, all information obtained from or about current or future customers, supplier lists and information, plans and results of research and development, reports, manuals, policies, personnel information (other than EMPLOYEE’s own information), evaluations, designs, specifications, blueprints, drawings, patterns, compilations, formulas, programs, software, prototypes, methods, processes, devices, procedures, inventions, special techniques of any kind peculiar to CUBIC’s operations, or other confidential or proprietary information or intellectual property related to the business, products, services, or plans of Company, whether tangible or intangible, and whether stored or memorialized physically, electronically, photographically, or in EMPLOYEE’s memory.This 
		

		
			 
		

		
			 
		

		

		
			***Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
		

		
			
		

		
			

		 

 

specifically includes all information CUBIC has received from customers or other third parties that is not generally known to the public or is subject to a confidentiality agreement.
		

		
			 
		

		
			The federal Defend Trade Secrets Act of 2016 provides immunity in certain circumstances to employees, contractors, and consultants for limited disclosures of a company’s trade secrets. Specifically, employees may disclose trade secrets: (1) in confidence, either directly or indirectly, to a federal, state, or local government official, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law; or (2) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, employees who file retaliation lawsuits for reporting a suspected violation of law may also: (1) disclose the trade secret to his/her attorney, and (2) use the information in related court proceeding, as long as the individual files documents containing the trade secret under seal, and does not otherwise disclose the trade secret except pursuant to court order.
		

		
			 
		

		
			11.  Code Section 409A.  All separation payments to be made upon a termination of employment under this Agreement may be made only upon a “separation of service” within the meaning of Section 409A of the Code and the Department of Treasury regulations and other guidance promulgated thereunder. Notwithstanding any provision to the contrary in this Agreement, if EMPLOYEE is deemed by CUBIC at the time of EMPLOYEE's separation from service to be a “specified employee” for purposes of Code Section 401A(a)(2)(B)(i), to the extent delayed commencement of any portion of the benefits to which EMPLOYEE is entitled under this Agreement is required in order to avoid a prohibited distribution under Code Section 409A(a)(2)(B)(i), such portion of EMPLOYEE'S benefits shall not be provided to EMPLOYEE prior to the earlier of (i) the expiration of the six-month period measured from the date of Employee’s “separation of service” with CUBIC or (ii) the date of Employee’s death. Upon the first business day following the expiration of the applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this Section 25 shall be paid in a lump sum to Employee, and any remaining payments due under this Agreement shall be paid as otherwise provided herein. To the extent applicable, this Agreement shall be interpreted in accordance with the applicable exemptions from Section 409A of the Code. To the extent that any provision of the Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner that no payments payable under this Agreement shall be subject to an “additional tax” as defined in Section 409A(a)(1)(B) of the Code.  Each series of installment payments made under this Agreement is hereby designated as a series of “separate payments” within the meaning of Section 409A of the Code. Any reimbursement of expenses or in-kind benefits payable under this Agreement shall be made in accordance with Treasury Regulation Section 1.409A-3(i)(1)(iv) and shall be paid on or before the last day of EMPLOYEE'S taxable year following the taxable year in which EMPLOYEE incurred the expenses.  The amount of expenses reimbursed or in-kind benefits payable during any taxable year of EMPLOYEE'S will not affect the amount eligible for reimbursement or in-kind benefits payable in any other taxable year of EMPLOYEE'S, and EMPLOYEE'S right to reimbursement for such amounts shall not be subject to liquidation or exchange for any other benefit
		

		
			 
		

		
			12.  Pending and Future Claims. EMPLOYEE agrees to withdraw, with prejudice, any demand for arbitration or lawsuit EMPLOYEE may have against CUBIC and any other Releasees that is pending on the date that EMPLOYEE signs this Agreement. EMPLOYEE further agrees that, to the fullest extent permitted by law, EMPLOYEE will not initiate any demand for arbitration or lawsuit related to the matters released above, it being the intention of the parties that with the execution of this release, the Releasees will be absolutely, unconditionally and forever discharged of and from all obligations to or on behalf of EMPLOYEE related in any way to the matters discharged herein. In addition, EMPLOYEE agrees not to assist any other person or 
		

		
			

		 

 

entity bringing any arbitration, lawsuit, or other legal action, that is opposed to CUBIC or any other Releasees unless compelled to do so by a court of law. However, this Agreement shall not preclude EMPLOYEE from filing a complaint with or participating in an investigation or proceeding conducted by a federal or state government agency. EMPLOYEE nonetheless expressly releases EMPLOYEE’s right to receive any monetary damages, reward, or other personal relief based on a complaint or charge filed with a federal or state government agency by EMPLOYEE or on EMPLOYEE’s behalf.
		

		
			 
		

		
			13.  Return of Company Property. EMPLOYEE agrees to return any and all equipment, property and materials in EMPLOYEE’s possession that belong to, or identify EMPLOYEE as an employee or representative of CUBIC, including but not limited to, files, records, credit cards, badges, card key passes, computers, and keys by May 27, 2016.
		

		
			 
		

		
			14.  Virginia Law. This Agreement shall be governed by and interpreted according to the laws of the Commonwealth of Virginia.
		

		
			 
		

		
			15.  Review of the Agreement and Voluntariness. EMPLOYEE acknowledges that EMPLOYEE has read this Agreement, fully understands EMPLOYEE’s rights, privileges and duties under the Agreement, and enters this Agreement freely and voluntarily, without coercion or duress.  
		

		
			 
		

		
			16.  Severability. If any term, part or provision of this Agreement is invalid or illegal, the validity of the Agreement's other terms, parts and provisions shall not be affected thereby and said invalid or illegal term, part or provision shall be deemed not to be a part of this Agreement.
		

		
			 
		

		
			17.  Binding on Successors. This Agreement and all of its provisions shall be binding upon, and inure to the benefit of, any successors, assigns, personal representatives or heirs of the parties hereto.
		

		
			 
		

		
			18.  No External or Prior Representations. EMPLOYEE represents and acknowledges that, in executing this Agreement, EMPLOYEE does not rely and has not relied upon any representation or statement not set forth herein made by any of the Releasees, their agents or representatives.  
		

		
			 
		

		
			19.  Entire Agreement. Except as expressly stated herein, the parties acknowledge and represent that this Agreement contains the entire understanding between them with respect to the matters set forth herein and supersedes any prior inconsistent agreements or understandings. The parties further acknowledge that the terms of this Agreement are contractual and not a mere recital. This Agreement may only be modified by a writing signed by both parties.
		

		
			 
		

		
			20.  Time for Consideration of Agreement. This Agreement is intended to satisfy the requirements of the Older Workers’ Benefit Protection Act, 29 U.S.C. sec. 626(f), for the release of claims under the ADEA.  The following general provisions, along with the other provisions of this Agreement, are agreed to for this purpose: 
		

		
			 
		

		
			a. EMPLOYEE is advised to consult with an attorney concerning the terms of this Agreement and the consequences of signing it and EMPLOYEE acknowledges and agrees that EMPLOYEE has obtained and considered any such legal advice EMPLOYEE deems necessary, such that EMPLOYEE is entering into this Agreement freely, knowingly, and voluntarily; 
		

		
			 
		

		
			
		

		
			

		 

 

b. EMPLOYEE has twenty-one (21) days from receipt to review and consider this Agreement; EMPLOYEE may use as much of this time as EMPLOYEE wishes prior to signing; 
		

		
			 
		

		
			c. For a period of seven (7) days following the execution of this Agreement, EMPLOYEE may revoke the Agreement, and the Agreement shall not become effective or enforceable until the revocation time has expired; 
		

		
			 
		

		
			d. To be effective, any revocation of this Agreement must be made by EMPLOYEE in writing, signed, dated and delivered to Darryl Albertson in Cubic Corporation’s Human Resources Department no later than seven (7) days from the execution of the Agreement.  If the seventh day falls on a weekend or a holiday, EMPLOYEE’s revocation must be delivered on the next business day; 
		

		
			 
		

		
			e. This Agreement shall become effective eight (8) days after it is signed by EMPLOYEE (“Effective Date”), unless revoked by EMPLOYEE prior to that time as set forth above; and 
		

		
			 
		

		
			f. This Agreement does not waive or release any rights or claims that EMPLOYEE may have that arise after the execution of this Agreement.  
		

		
			 
		

		
			21.  Construction. This Agreement shall not be construed or interpreted for or against any party hereto based on the fact that one party's attorney drafted this Agreement or caused this Agreement to be drafted.
		

		
			 
		

		
			22.  Controversies Arising Out of Agreement.  The parties agree that any judicially cognizable controversy or claim arising out of or relating to this Agreement or its breach shall be resolved through a confidential and binding arbitration before a single neutral arbitrator in Herndon, Virginia in accordance with the rules and procedures of the Judicial Arbitration and Mediation Services (“JAMS”). The JAMS rules and procedures may be found online at www.jamsadr.org. Both EMPLOYEE and CUBIC expressly waive their right to a jury trial. This paragraph is intended to be the exclusive method for resolving any and all claims by the parties against each other for payment of damages under this Agreement or relating to EMPLOYEE'S employment; provided, however, that EMPLOYEE shall retain the right to pursue rights or claims expressly excluded from the ”General Release of Claims” section  above, as well as EMPLOYEE’s rights to file or participate in a complaint or investigation with a government agency under the “Pending and Future Claims” section above. This Agreement shall not limit either party’s right to obtain any provisional remedy, including, without limitation, injunctive or similar relief, from any court of competent jurisdiction as may be necessary to protect their rights and interests pending the outcome of arbitration, including without limitation injunctive relief, in any court of competent jurisdiction. Seeking any such relief shall not be deemed to be a waiver of such party’s right to compel arbitration. The parties shall each bear their own attorneys’ fees and costs related to such arbitration. Other costs of the arbitration, including the JAMS' administrative fees, the fee of the arbitrator, and all other necessary fees and costs, shall be borne equally by both parties.
		

		
			 
		

		
			23.  Non-Disclosure and Other Agreements.  The parties agree that this Agreement will not supersede any existing Employee Inventions And Secrecy Agreement executed by EMPLOYEE while employed at CUBIC or any other agreements relating to CUBIC’s confidential information, proprietary information, trade secrets, or intellectual property.
		

		
			 
		

		
			
		

		
			

		 

 

24.  No Admissions. The parties agree that this Agreement is not an admission of any liability or fault whatsoever by EMPLOYEE or CUBIC, and shall not be used as such in any legal or administrative proceeding.
		

		
			 
		

		
			25.  Other.  By signing below,EMPLOYEE is acknowledging that EMPLOYEE has carefully read this Agreement, fully understands what it means, is entering into it knowingly and voluntarily and that all of EMPLOYEE’s representations in it are true. EMPLOYEE understands that the consideration period described in section 20 started when EMPLOYEE was first given this Agreement, and EMPLOYEE waives any right to have it restarted or extended by any subsequent changes to this Agreement. EMPLOYEE acknowledges that CUBIC would not have given EMPLOYEE the Separation Pay and Benefits EMPLOYEE is getting in exchange for this Agreement but for EMPLOYEE’s representations and promises that EMPLOYEE is making by signing it.
		

		
			 
		

		
			
		

		
			

		 

 

PLEASE READ CAREFULLY.  THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN OR UNKNOWN CLAIMS.
		

		
			 
		

		
			AGREED AND ACCEPTED:
		

		
			 
		

		
			 
		

			
					
						EMPLOYEE

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						  /s/ Bill Toti

					
					
						 

				
	
					
						Bill Toti

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Executed this 12th day of June, 2016 at Leesburg, Virginia.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						CUBIC GLOBAL DEFENSE, INC.

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						  /s/ Darryl Albertson

					
					
						 

				
	
					
						Darryl Albertson

					
					
						 

				
	
					
						Vice President, Human Resources

					
					
						 

				
	
					
						Cubic Corporation

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Executed this 13th day of June, 2016 at San Diego, California.Exhibit 10.1

MODINE MANUFACTURING COMPANY

2008 INCENTIVE COMPENSATION PLAN

PERFORMANCE STOCK AWARD

AWARD AGREEMENT

We are pleased to inform you that you have been granted an opportunity to earn a Performance Stock Award of Modine Manufacturing Company (the “Company”), subject to the terms and conditions of the Modine Manufacturing Company 2008 Incentive Compensation Plan (the “Plan”) and of this Award Agreement.  Unless otherwise defined herein, all terms used in this Award Agreement shall have the same meanings as set forth in the Plan.

	
Full name of Grantee:

	 
	 	 
	
Date of Award:

	
May 31, 2016

	 	 
	
Target number of Common Stock:

	 
	 	 
	
Performance Period:

	
April 1, 2016 to March 31, 2019

1.  Performance Stock Award.  Pursuant to the Plan, you are hereby granted a Performance Stock Award, subject to the terms and conditions of this Award Agreement and the Plan.  The number of shares of Common Stock to be issued hereunder if the Target Performance Goals are achieved is set forth above.

2.  Terms of Performance Stock Award and Performance Goals.  You have been granted an opportunity to earn shares of Common Stock under this Performance Stock Award.  The actual number of shares of Common Stock earned by you will be determined as described below, based upon the actual results for the Performance Period set forth above compared to the Performance Goals set forth below, provided that you remain an employee of the Company or a Subsidiary for the entire Performance Period (subject to the provisions below regarding death or Disability) and the achievement of the Performance Goals is greater than the Threshold amount specified below (the “Conditions”).  If either of these Conditions is not satisfied, then except as otherwise provided in this Award Agreement and the Plan, no Common Stock shall be earned.  The Performance Goals for this Performance Stock Award are: Return on Average Capital Employed (“ROACE”) and Average Annual Revenue Growth (“Revenue Growth”), with each having a 50% weight.  The Threshold Performance Goals are the minimum Performance Goals necessary for the Performance Period that must be achieved by the Company in order for you to qualify for any Common Stock and the Maximum Performance Goals are the minimum Performance Goals for the Performance Period in order for you to qualify for the maximum number of shares of Common Stock earned under this Performance Stock Award.

 

	
Performance Goal: ROACE

	
Performance Stock Award Earned Based on Achievement of Performance Goal

	
Threshold:  5.0%

	
5% of Target number of Common Stock

	
Target:   9.0%

	
50% of Target number of Common Stock

	
Maximum:   ≥14.0%

	
100% of Target number of Common Stock

	
Performance Goal: Revenue Growth

	
Performance Stock Award Earned Based on Achievement of Performance Goal

	
Threshold:  3.0%

	
5% of Target number of Common Stock

	
Target: 8.0%

	
50% of Target number of Common Stock

	
Maximum: ≥13.0%

	
100% of Target number of Common Stock

“ROACE” or “Return on Average Capital Employed” means NOPAT divided by Average Capital Employed.  NOPAT means the Company’s Adjusted Operating Income, as reported on the Company’s audited financial statements, multiplied by .7 to account for an assumed 30% income tax rate, and further adjusted to exclude earnings (or losses) attributable to minority shareholders.  Adjusted Operating Income equals operating income plus or minus Permitted Adjustments.  Average Capital Employed means the Company’s total debt plus shareholders’ equity, as reported on the Company’s audited financial statements, excluding from shareholders’ equity any equity attributable to minority shareholders.  The NOPAT and Capital Employed calculations shall exclude the cumulative effect of changes in generally accepted accounting principles.  Annual ROACE shall be averaged over five points (i.e., the last day of each fiscal quarter and prior fiscal year-end).   Permitted Adjustments may include:

Restructuring Charges

		·	Fees and expenses for restructuring consultants or financial advisors

		·	Employee severance, outplacement and related benefits

		·	Employee insurance and benefits continuation

		·	Contractual salary continuation for terminated employees

		·	Equipment transfers and facility preparation

		·	Environmental services (e.g. plant clean-up prior to sale)

Acquisition and Integration Charges

		·	Fees and expenses for transaction advisors

		·	Integration expenses

		·	Other incremental costs and charges that are non-recurring and directly related to the transaction

Other

		·	Unusual, non-recurring or extraordinary cash and non-cash charges or income

		·	The cash flow impact of the timing of insurance reimbursements or settlements

		·	Cash proceeds from the sale of facilities or other assets

 

2

In addition, the calculation of ROACE will be adjusted if necessary for the impact of the adoption of new U.S. GAAP accounting standards and for significant changes in the Company’s accounting methods.

“Revenue Growth” means the simple three-year arithmetic average of the annual change in revenue over the Performance Period, as reported on the Company’s audited financial statements.

If actual ROACE or Revenue Growth for the Performance Period is between Threshold and Target and/or between Target and Maximum, the number of shares of Common Stock earned shall be determined on a linear basis.  In the event that the Company’s actual ROACE or Revenue Growth does not meet the Threshold for the Performance Period, no Common Stock shall be earned relative to such metric under this Performance Stock Award.  In the event that the Company’s actual ROACE or Revenue Growth exceeds the Maximum for the Performance Period, only the Maximum percentage of the Target number of shares of Common Stock set forth above shall be earned relative to such metric.

3.  Delivery of Shares of Common Stock.   Performance Stock earned shall be paid in shares of Common Stock delivered to you after the end of the Performance Period as soon as administratively practicable after the Committee has approved and certified the number of shares of Performance Stock that have been earned hereunder or, in the event of vesting covered under Paragraph 4 below, within thirty (30) days of the date of your termination of employment.

4.  Change in Control.    Notwithstanding anything in this Agreement to the contrary, upon a Change in Control, all outstanding Performance Stock shall be deemed to have satisfied the Target Performance Goals and shall vest pro-rata based upon the period worked during the Performance Period as of the date of an involuntary termination of your employment with the Company or a Subsidiary by the Company without Cause or by you for Good Reason within one (1) year following a Change in Control.  “Good Reason” means a material diminution in your base salary; material diminution in your annual target bonus opportunity; material diminution in your authority, duties or responsibilities; material diminution in authority, duties or responsibilities of the supervisor to whom you report; material diminution in the budget over which you retain authority; or material change in the geographic location at which you must perform services.

5.  Death or Disability.  Notwithstanding anything in this Agreement to the contrary, upon your termination of employment due to death or Disability (as defined herein), a prorated portion (based on the period working during the Performance Period) of the Performance Stock granted to you hereunder shall vest based on the Company’s actual achievement of the Performance Goals at the end of the Performance Period as certified by the Committee and shares will be delivered to you after the Committee has approved and certified the number of shares of Performance Stock that have been earned hereunder.  For purposes of this Award Agreement, “Disability” shall mean “permanent and total disability” as defined in Section 22 (e)(3) of the Code.

6.  Forfeiture.  Other than as described above in Paragraph 4 regarding a Change in Control or Paragraph 5 regarding Death or Disability, upon your termination of employment with the Company or a Subsidiary for any reason during the Performance Period, you will forfeit all Performance Stock covered by this Agreement.

7.  Shareholder Status.  While this Performance Stock Award is outstanding and until Common Stock is issued hereunder, you shall not have any rights as a shareholder of the Company, including the right to vote and the right to receive dividends on any Common Stock potentially earned under this Performance Stock Award.

 

3

8.  Transfer.  The Performance Stock Award shall be nontransferable.  Notwithstanding the foregoing, you shall have the right to transfer the Performance Stock Award or Common Stock otherwise issued hereunder upon your death, either by the terms of your will or under the laws of descent and distribution.

9.  No Unlawful Issue of Common Stock.  If, in the opinion of its counsel, the issue of any Common Stock hereunder pursuant to this Performance Stock Award shall not be lawful for any reason, including the inability of the Company to obtain, from any regulatory body having jurisdiction, authority deemed by such counsel to be necessary to such issuance, the Company shall not be obligated to issue any such Common Stock pursuant to this Performance Stock Award.

10.  No Obligation of Employment.  This Performance Stock Award shall not impose any obligation on the Company to continue your employment with the Company or any Subsidiary.

11.  Controlling Provisions; Plan Controls.  In the event of a conflict between the terms of this Award Agreement and any employment agreement or change in control agreement between you and the Company, this Award Agreement shall control.   This Performance Stock Award is qualified in its entirety by reference to the terms and conditions of the Plan under which it is granted, a copy of which you may request from the Company.  The Plan empowers the Committee to make interpretations, rules and regulations thereunder, and, in general provides that the determinations of such Committee with respect to the Plan shall be binding upon you.  The Plan is incorporated herein by reference.

12.  Forfeiture Under Recoupment Policy.  The Company shall have the power and the right to require you to forfeit and return the shares of Common Stock issued hereunder or any proceeds therefrom consistent with any recoupment policy maintained by the Company under applicable law, as such policy is amended from time to time.

13.  Use of Words.  The use of words of the masculine gender in this Award Agreement is intended to include, wherever appropriate, the feminine or neuter gender and vice versa.

14.  Successors.  This Agreement shall be binding upon and inure to the benefit of any successor or successors of the Company.

15.  Taxes.  The Company may require payment of or withhold any minimum tax which it believes is required as a result of this Performance Stock Award, and the Company may defer making delivery with respect to shares issuable hereunder until arrangements satisfactory to the Company have been made with respect to such tax withholding obligations.

16. Committee Discretion.  Notwithstanding anything in this Agreement, the Committee retains the discretion to make negative adjustments to the final determination of the achievement of any Performance Goals.

17. Personal Information.  Solium Capital LLC and Wells Fargo Bank, N.A. assist the Company in the operation of the Plan and the administration of the Performance Stock Award granted pursuant to this Award Agreement.  If you choose to participate in the Plan, you acknowledge and consent to the Company sharing your name, email, and information regarding the grant of the Performance Stock Award under this Award Agreement with both Solium Capital LLC and Wells Fargo Bank, N.A.

SIGNATURES ON THE FOLLOWING PAGE

 

4

By your signature and the signature of the Company’s representative below, you and the Company agree that this Performance Stock Award awarded to you under this Award Agreement is subject to the terms and conditions of the Plan, a copy of which is available to you upon request.  As provided in the Plan, you hereby agree to accept as binding any decision of the Committee with respect to the interpretation of the Plan and this Award Agreement, or any other matters associated therewith.

IN WITNESS WHEREOF, the Company has caused this Award Agreement to be executed as of May 31, 2016.

	 	 	
MODINE MANUFACTURING COMPANY

	 	 	 
	 	
By:

	
/s/ Thomas A. Burke

	 	 	
Thomas A. Burke

	 	 	
President and Chief Executive Officer

The undersigned hereby accepts the foregoing Performance Stock Award and agrees to the terms and conditions of this Award Agreement and of the Plan.

	 	 

 

 

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}]]