Document:

exv10w22

 

Exhibit 10.22

[***] = CONFIDENTIAL PORTIONS OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

SETTLEMENT AGREEMENT

     SETTLEMENT AGREEMENT (“Agreement”) dated as of the 31st day of March, 2005 (the “Effective
Date”) between SYNAPTICS INCORPORATED (“Synaptics”), ALPS ELECTRIC CO., LTD. (“Alps”), and CIRQUE
CORPORATION (“Cirque”).

RECITALS

     On or about February 5, 2003, Synaptics informed Alps that Synaptics had concerns regarding
the violation by Alps of various intellectual property rights of Synaptics.

     Synaptics requested Alps pay a substantial up-front license fee and a royalty on touch pad
sales by Alps utilizing technology that Synaptics believes it has the exclusive right to use.

     Alps subsequently informed Synaptics that it denied infringing any intellectual property
rights of Synaptics and asserted that Synaptics was violating various intellectual property rights
of Alps.

     Alps then requested that Synaptics pay a royalty to Alps for the use by Synaptics of
intellectual property that Alps claims to own, and that Alps’ affiliate Cirque claims to own.

     Synaptics, Alps and Cirque all desire to avoid complex, costly, and disruptive litigation.

     Each of Synaptics, Alps and Cirque has devoted significant efforts to evaluate the claims of
the others and the strengths of their respective intellectual property rights.

     Synaptics, Alps and Cirque have reached a satisfactory resolution to their respective claims,
involving the payment of a fee by Alps and Cirque to Synaptics.

     Now, Therefore, the parties agree as follows:

AGREEMENT

     1. One Time Fee for Settlement. On or before the 31st day of March, 2005, Alps and
Cirque shall pay to Synaptics a fee in the amount of US$[***] for the purpose of settlement of
dispute among the parties in consideration of the balance of certain patent rights owned by the
parties, and this Agreement shall become effective only if such payment is made.

     2. Synaptics License. Synaptics hereby grants to Alps and Cirque:

     A. (i) a worldwide, non-exclusive, non-transferable (except as otherwise permitted in Section
9 (“Binding Nature of Agreement; No Assignment”)), irrevocable, royalty-free license (without the
right to grant sublicenses) to make, have made, use, sell, lease, offer for sale, import, and
otherwise transfer products, devices, computer software, machines, equipment, components,
and parts and offer services related thereto, to use methods and processes, and to engage in
any other activities that may constitute infringement (whether directly, contributorily, or by

 

 

inducement); and (ii) a worldwide, non-exclusive, non-transferable, irrevocable, royalty-free
license (without the right to grant sublicenses) to distributors, customers (direct or indirect),
and users of or for Alps and Cirque products, devices, computer software, machines, equipment,
components, and parts which are or will be sold or otherwise transferred by Alps or Cirque under
the license granted by this Section 2(A), to use such Alps and Cirque products, devices, computer
software, machines, equipment, components, and parts, incorporate such Alps and Cirque products,
devices, computer software, machines, equipment, components, and parts into end products, and sell,
lease, offer for sale, import or otherwise transfer such Alps and Cirque products, devices,
computer software, machines, equipment, components, and parts or such end products into which such
Alps and Cirque products, devices, computer software, machines, equipment, components and parts
have been incorporated, in all cases under the patents identified on Schedule A to this Agreement,
and also under all foreign equivalents of those patents, and all patents and utility models that
issue from applications that are, in whole or in part, entitled to priority or an effective filing
date of any of the applications from which those patents listed on Schedule A issued, whether such
applications are divisional, continuation, continuation-in-part, or renewal applications, and all
reissues and re-examinations of any such patents (the patents and utility models referred to in
this Section 2A are herein referred to as the “Synaptics Patents”).

     3. Alps and Cirque License. Alps and Cirque hereby grant to Synaptics:

     A. (i) a worldwide, non-exclusive, non-transferable (except as otherwise permitted in Section
9 (“Binding Nature of Agreement; No Assignment”)), irrevocable, royalty-free license (without the
right to grant sublicenses) to make, have made, use, sell, lease, offer for sale, import, and
otherwise transfer products, devices, computer software, machines, equipment, components and parts,
and offer services related thereto, to use methods and processes, and to engage in any other
activities that may constitute infringement (whether directly, contributorily, or by inducement);
and (ii) a worldwide, non-exclusive, non-transferable, irrevocable, royalty-free license (without
the right to grant sublicenses) to distributors, customers (direct or indirect), and users of or
for Synaptics products, devices, computer software, machines, equipment, components, and parts
which are or will be sold or otherwise transferred by Synaptics under the license granted by this
Section 3(A), to use such Synaptics products, devices, computer software, machines, equipment,
components, and parts, incorporate such Synaptics products, devices, computer software, machines,
equipment, components, and parts into end products and sell, lease, offer for sale, import or
otherwise transfer such Synaptics products, devices, computer software, machines, equipment,
components, and parts or such end products into which such Synaptics products, devices, computer
software, machines, equipment, components, and parts have been incorporated, in all cases under the
patents identified on Schedule B to this Agreement, and also under all foreign equivalents of those
patents, and all patents and utility models that issue from applications that are, in whole or in
part, entitled to priority or an effective filing date of any of the applications from which those
patents listed on Schedule B issued, whether such applications are divisional, continuation,
continuation-in-part, or renewal applications, and all reissues and re-examinations of any such
patents.

     B. (i) a worldwide, non-exclusive, non-transferable (except as otherwise permitted in Section
9 (“Binding Nature of Agreement; No Assignment”), irrevocable, royalty-free license (without the
right to grant sublicenses) to make, have made, use, sell, lease, offer for sale, import, and
otherwise transfer: (a) pointing solutions; and (b) user interface products employing capacitive
sensing, devices employing capacitive sensing, and components employing capacitive sensing,
and computer software related to use of any of the foregoing, to offer services related to any of
the

 

 

foregoing, and to use methods and processes for making or using such solutions, products,
devices or components; and (ii) a worldwide, non-exclusive, non-transferable, irrevocable,
royalty-free license (without the right to grant sublicenses) to distributors, customers (direct or
indirect), and users of or for Synaptics products, devices, computer software, machines, equipment,
components, and parts which are or will be sold or otherwise transferred by Synaptics under the
license granted by this Section 3(B), to use such Synaptics products, devices, computer software,
machines, equipment, components, and parts, incorporate such Synaptics products, devices, computer
software, machines, equipment, components, and parts into end products and sell, lease, offer for
sale, import or otherwise transfer such Synaptics products, devices, computer software, machines,
equipment, components, and parts or such end products into which such Synaptics products, devices,
computer software, machines, equipment, components, and parts have been incorporated, and in all
cases under all patents, utility models, divisionals, continuations, re-examinations, renewals,
provisionals, continuations-in-part, re-issues, applications and all foreign equivalent patents,
which claim priority based on an application or applications that was filed on or before December
31, 1998, with any government agency authorized to issue patents and which are owned or licensable
by Alps or Cirque without payment of any third party royalty or other similar payment, provided
that patents owned or licensable by Alps or Cirque shall not include any patents owned by
Subsidiaries other than Cirque even if otherwise licensable by Alps (the patents and utility models
referred to in Sections 3A and 3B are herein referred to as the “Alps Patents”).

     4. No Other Payments. The parties understand that the entire consideration for the licenses
granted in this Agreement shall be as contained herein, and that there shall be no other royalty or
fee obligation owed or paid by any party.

     5. Term. The term of this Agreement shall commence as of the Effective Date and shall end on
the last to expire of the patents related to this Agreement. No party shall have the right to
terminate this Agreement or any license or release granted by it in this Agreement for breach,
default, or any other basis.

     6. Controlling Law. This Agreement, and all questions relating to its validity,
interpretation, performance, and enforcement, shall be governed by and construed in accordance with
the laws of California, notwithstanding any California or other conflict-of-law provisions to the
contrary. The state and federal courts located in Santa Clara County, California, shall have sole
jurisdiction over any disputes arising hereunder and the parties hereby consent to the personal
jurisdiction of such courts.

7. Release.

          7.1 Statement.

          A. Alps, Cirque and Synaptics do hereby forever release and discharge each other, the agents,
servants, employees, attorneys, successors, assigns, and parent or subsidiary or related companies
of each of the foregoing, including the owners, shareholders, directors and officers of each of the
foregoing from any and all claims, demands, rights or causes of action that Alps, Cirque or
Synaptics may now have or claim to have or may hereafter have or claim to have
against any other party hereto in any way arising out of the Synaptics Patents or the Alps
Patents (including, but not limited to, claims of infringement thereof), prior to the Effective
Date; and

 

 

          B. Alps, Cirque and Synaptics do hereby forever release and discharge, solely to the extent
that any corresponding claim, demand, right or cause of action arises from the use, sale, or other
transfer of products purchased from a party hereto or from the use, sale or other transfer of end
products into which such products have been incorporated, each other’s distributors, customers
(direct and indirect), and users of each other’s products, devices, computer software, machines,
equipment, components and parts, and related services from any and all claims, demands, rights or
causes of action that Alps, Cirque or Synaptics may now have or claim to have or may hereafter have
or claim to have against any such distributors, customers, and users in any way arising out of the
Synaptics Patents or the Alps Patents (including, but not limited to, claims of infringement
thereof), prior to the Effective Date.

          7.2 No Admission. The provisions of this Section 7 (“Release”) express a full and complete
settlement of any and all liabilities of the persons and entities released hereby, whether said
alleged liabilities have been claimed or denied, and regardless of adequacy of the above
consideration, and the execution or acceptance of this Agreement shall not operate as an admission
of liability on the part of anyone.

          7.3 California Civil Code § 1542. Alps, Cirque and Synaptics hereby waive any rights each of
them may have under California Civil Code § 1542, or any similar code section or law of any other
state. Said § 1542 provides as follows:

“CERTAIN CLAIMS NOT AFFECTED BY GENERAL RELEASE — A general release
does not extend to claims which the creditor does not know or suspect
to exist in his favor at the time of executing the release, which if
known by him must have materially affected his settlement with the
debtor.”

     8. Notices. All notices, requests, demands, and other communications required or permitted
under this Agreement shall be in writing and shall be deemed to have been duly given, made, and
received when delivered by Federal Express, DHL, or similar third-party carrier against receipt or
12 hours after being sent by facsimile or e-mail, provided receipt of such facsimile or e-mail has
been confirmed, as set forth below:

If to Synaptics:

2381 Bering Drive

San Jose, California 95131

Attention: Francis F. Lee and Russell J. Knittel

Phone: (408) 434-0110

Fax: (408) 432-3361

E-mail: francis@synaptics.com

E-mail: russk@synaptics.com

 

 

with a copy given in the manner

prescribed above, to:

Greenberg Traurig, LLP

2375 East Camelback Road, Suite 700

Phoenix, Arizona 85016

Attention: Robert S. Kant, Esq.

Phone: (602) 445-8302

Fax: (602) 445-8100

E-mail: KantR@GTLaw.com

If to Alps or Cirque:

1-7, Yukigaya-Otsuka-cho

Ota-ku, Tokyo, 145-8501 JAPAN

Attention: Junichi Umehara

Phone: (81) 3-5499-8021

Fax: (81)3-3720-8207

E-mail: junichi.umehara@jp.alps.com

with a copy given in the manner

prescribed above, to:

Guy W. Shoup

Law Office of Guy W. Shoup

160 Santa Clara Street, Suite 975

San Jose, CA 95113

Phone: (408) 971-0627

Fax: (408) 971-0941

E-mail: gwshoup@sbcglobal.net

Any party may alter the address to which communications or copies are to be sent by giving notice
thereof to all other parties of change of address in conformity with the provisions of this
paragraph for the giving of notice.

     9. Binding Nature of Agreement; No Assignment. This Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and assigns (whether as a
result of merger, consolidation, sale of all or substantially all assets, or any similar
transaction), except that no party may otherwise assign, delegate, or transfer such party’s rights
or obligations under this Agreement without the prior written consent of all other parties hereto.
Any assignment, delegation, or transfer made in violation of this Agreement shall be null and void.

     10. Entire Agreement. This Agreement and the Schedules hereto contain the entire
understanding among the parties hereto with respect to the subject matter hereof and supersede all
prior and contemporaneous agreements and understandings, inducements, or conditions, express or
implied, oral or written, except as herein contained. This Agreement may not be modified or
amended other than by an agreement in writing.

 

 

     11. Section Headings. The section headings in this Agreement are for convenience only; they
form no part of this Agreement and shall not affect its interpretation.

     12. Gender. Words used herein, regardless of the number and gender specifically used, shall
be deemed and construed to include any other number, singular or plural, and any other gender,
masculine, feminine, or neuter, as the context requires.

     13. Counterparts; Facsimile. This Agreement may be executed in two or more counterparts, each
of which shall be deemed to be an original, but all of which shall constitute one and the same
agreement, and this Agreement may be executed by facsimile provided that the parties deliver the
original execution pages within 48 hours of such execution.

     14. Subsidiaries. For purposes of this Agreement, all references to Synaptics, Alps or Cirque
shall include any corporation, partnership, or limited liability company in which Synaptics, Alps
or Cirque, as the case may be, owns a majority interest or otherwise controls (provided, however,
that such inclusion shall exist only so long as any corresponding majority interest or control
shall likewise exist, and the parties hereby agree that any rights extended to third parties
pursuant to this Section 14 shall exist only for the duration of such period), and provided that
references to Alps shall not include Cirque by operation of this Section 14.

     15. Non-Disclosure of Information. Each party hereto covenants and agrees on behalf of its
directors, officers, employees and agents:

     (A) not to disclose to others the terms and conditions of this Agreement, without the prior
written consent of the all other parties, except that each party may disclose (i) the fact it has
been granted a license hereunder, (ii) the nature and scope of such license in confidence to any
existing or potential supplier or customer (direct or indirect) who requests such information, and
(iii) the terms and conditions of this Agreement in confidence in connection with any business
transaction governed by Section 9; provided, however, that such limitations shall not apply if
disclosure of the terms and conditions of this Agreement is required by law or in connection with
any legal proceeding; and

     (B) not to disclose to others or use, without the prior written consent of all other parties,
all secret and confidential business information and information contained in any unpublished
patent application received from any other party during the course of the discussions and
negotiations between the parties that preceded this Agreement, provided, however, that nothing
shall prevent disclosure or use of such information if (i) it was known to the recipient at the
time of disclosure, (ii) it was generally available to the public at the time of its disclosure;
(iii) it became generally available to the public after its disclosure and other than through any
act or omission of the recipient party in breach of this Agreement; (iv) it was properly obtained
by the recipient from some other source other than directly or indirectly from any other party, or
(v) such disclosure is required by law or in connection with any legal proceeding.

     16. Press Release. Promptly following the Effective Date, the parties shall issue the joint
press release attached hereto as Exhibit A.

 

 

[***] =
CONFIDENTIAL PORTIONS OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION

     17. Severability. If any provision of this Agreement are invalid, illegal or unenforceable,
such provision shall be considered severed from this Agreement, and all other provisions shall
continue without regard to the severed provision.

     18. Disputes. The parties desire to resolve disputes arising under this Agreement in an
expedient manner by mutual cooperation and without resort to litigation. The parties shall follow
the procedures set forth in this Section 18 if and when a dispute arises under this Agreement. If
a party believes a dispute arises, that party shall notify the other parties in writing of the
nature of the dispute, that party’s position regarding the dispute, and any information that party
believes relevant to such matter. Within thirty days of such notification, the parties shall meet
and attempt to resolve the dispute. If the parties are unable to resolve the dispute within that
time, the parties shall within thirty days of the end of that period refer the dispute for
resolution by senior decision-makers of each party, including an executive officer of Synaptics
designated by Synaptics, a general manager or higher official of Alps designated by Alps, and, if
the matter involves any interests of Cirque, an executive office of Cirque designated by Cirque. A
matter shall be considered referred to that group by each party providing a written description of
the disputed matter, the positions taken by that party as to such matter, and all other information
relevant to such matter. Within thirty days after such matter is presented to that group, the
group shall meet to discuss such matter. All meetings may be in person, by telephone or by
video-conference. If within thirty days of the meeting between the parties’ senior decision-makers
a resolution of the matter has not been reached, the parties shall attempt to resolve the dispute
by mediation conducted with one mediator knowledgeable in the subject matter which is at issue in
the dispute, and selected by the parties. An initial meeting with the mediator shall be held
thirty days after the parties senior decision-makers have failed to resolve the dispute. If the
parties have not resolved the dispute within sixty days of this meeting with the mediator, any
party may commence a legal action.

     19. Representations and Warranties.

     Synaptics represents and warrants that it is the sole owner of the entire right, title and
interest in and to the Synaptics Patents identified in Schedule A, and that no title or interest in
any of them has been assigned or conveyed to others.

     Alps represents and warrants that it is the sole owner of the entire right, title and interest
in and to the Alps Patents identified in Schedule B, and that no title or interest in any of them
has been assigned or conveyed to others, with the exception of [***].

     Cirque represents and warrants that it is the sole owner of the entire right, title and
interest in and to the Alps Patents identified in Schedule B
 [***], and that no title or interest in such patent has been assigned or
conveyed to others.

     Synaptics represents and warrants that it has the right and power to grant the license set
forth in Section 2, and that there are no outstanding agreements, assignments, or encumbrances
which would prevent Synaptics from granting such license.

     Alps and Cirque each represents and warrants that it has the right and power to grant the
license set forth in Section 3, and that there are no outstanding agreements, assignments, or
encumbrances which would prevent Alps and Cirque from granting such license.

 

 

     20. No License or Rights Under Other Patents. No license is granted by Synaptics, Alps or
Cirque under any patents other than the Synaptics Patents and Alps Patents, respectively, and no
such license or other authority to infringe any patents other than the Synaptics Patents and Alps
Patents shall be deemed to arise by implication or estoppel or to exist as a matter of law.

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 	 	 	 	 
	SYNAPTICS INCORPORATED:	 	 	 	ALPS ELECTRIC CO., LTD.:
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Francis F. Lee
	 	 	 	By:	 	/s/ Yasuhiro Fujii
	

	 	 
	 	 	 	 	 	 
	Its:

	 	President & CEO
	 	 	 	Its:
	 	Director / General Manager
	

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	CIRQUE CORPORATION:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	/s/ Chris Oshima	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	Its:

	 	President<PAGE>
                                                                   EXHIBIT 10.16

                          EXECUTIVE SEVERANCE AGREEMENT

         THIS AGREEMENT is entered into this 29th day of March, 2005, by and
between MSX International, Inc., a Delaware corporation (the "Company"), and
Robert Netolicka ("Executive").

                                   WITNESSETH

         WHEREAS, the Company considers the establishment and maintenance of a
sound and vital management to be essential to protecting and enhancing the best
interests of the Company and its stockholders; and

         WHEREAS, Executive currently serves as Chief Executive Officer and
President of the Company;

         WHEREAS, the Board, as defined herein, has determined that it is in the
best interests of the Company and its stockholders to secure Executive's
continued services and to ensure Executive's continued and undivided dedication
to his duties; and

         WHEREAS, the parties hereto desire to set forth the terms relating to,
among other things, payments to Executive upon a termination of the employment
of Executive during the Term (as defined in Section 7) of this Agreement; and

         WHEREAS, the Board has authorized the Company to enter into this
Agreement.

         NOW, THEREFORE, for and in consideration of the premises and the mutual
covenants and agreements herein contained, the Company and Executive hereby
agree as follows:

         1. Definitions: As used in this Agreement, the following terms shall
have the respective meanings set forth below:

                  (a) "Affiliate" means, with respect to any Person, any other
Person who directly or indirectly, through one or more intermediaries, controls,
is controlled by, or is under common control with, such Person including,
without limitation, any employee of such Person, The term "control" means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities or other ownership interests, by contract or
otherwise, and the terms "controlled" and "controlling" have meanings
correlative thereto.

                  (b) "Board" means the Board of Directors of the Company.

                  (c) "Cause" means (i) Executive's gross negligence or willful
misconduct which results in material harm to the Company, (ii) failure by
Executive to observe, perform or fulfill any material duties or obligations to
the Company following written notice from the Board describing such failure and
providing for a reasonable opportunity to cure, (iii) Executive's
misappropriation of Company's funds, or (iv) if Executive shall be convicted of
any felony offense or any non-felony offense (for which no appeal is sought or
for which any such appeal is unsuccessful) which, in the reasonable opinion of
the Board, reflects negatively on the moral and ethical values of the Company.

                  (d) "Date of Termination" means (1) the effective date on
which Executive's employment by the Company terminates as specified in a prior
written notice by the Company or Executive, as the case may be, to the other,
delivered pursuant to Section 9, or (2) if Executive's employment by the Company
terminates by reason of death, the date of death of Executive.

<PAGE>

                  (e) "Good Reason" means the occurrence of any of the following
events without Executive's express written consent:

                           (1) a breach by the Company of any provision of this
         Agreement;

                           (2) a reduction in Executive's rate of annual base
         salary or annual bonus opportunity as in effect immediately prior to
         the Date of Termination; or

                           (3) any requirement that Executive (i) be based
         anywhere more than fifty (50) miles from the facility where Executive
         is located immediately prior to the Date of Termination or (ii) travel
         on Company business to an extent that requires extended, overnight
         travel which is substantially greater than the travel obligations of
         Executive immediately prior to the Date of Termination.

                  (f) "Nonqualifying Termination" means a termination of
Executive's employment (1) by the Company for Cause, (2) as a result of
Executive's death, (3) by the Company due to Executive's Permanent Disability or
(4) voluntarily by Executive for any reason other than Good Reason.

                  (g) "Permanent Disability" means Executive is unable to
perform, in the written opinion of a medical doctor mutually agreed to by the
Company and by Executive or his legal representative (and if the Company and
Executive are unable to agree upon a medical doctor, a third doctor selected by
the doctor selected by the Company and the doctor selected by Executive or his
legal representative), by reason of physical or mental incapacity, his duties or
obligations under this Agreement, for a period of one hundred twenty (120)
consecutive calendar days or a total period of two hundred ten (210) calendar
days in any three hundred sixty (360) calendar day period.

                  (h) "Person" means an individual, a partnership, a
corporation, an association, a joint stock company, a limited liability company,
a trust, a joint venture, an unincorporated organization, a governmental entity,
or any department, agency or political subdivision thereof, or any other entity.

                  (i) "Subsidiary" means, with respect to any Person, any
corporation, partnership, association or other business entity of which (i) if a
corporation, a majority of the total voting power of shares of stock entitled
(without regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more of the other Subsidiaries
of that Person or a combination thereof, or (ii) if a partnership, association
or other business entity, a majority of the partnership or other similar
ownership interest thereof is at the time owned or controlled, directly or
indirectly, by any Person or one or more Subsidiaries of that Person or a
combination thereof. For purposes hereof, a Person or Persons shall be deemed to
have a majority ownership interest in a partnership, association or other
business entity if such Person or Persons shall be allocated a majority of
partnership, association or other business entity gains or losses or shall be or
control the managing director or general partner of such partnership,
association or other business entity.

         2. Payments Upon Termination of Employment. If during the Term (as
defined in Section 7) of this Agreement the employment of Executive shall
terminate, other than by reason of a Nonqualifying Termination, the Company
shall pay to Executive his base salary through the Date of Termination, to the
extent not theretofore paid. In addition, if Executive agrees within one (1)
week after such termination to execute a release, in the same form as attached
hereto as Exhibit A, with respect to all tort and contract claims, as well as
claims brought under all applicable federal, state or local statutes, laws,
regulations or ordinances, then the Company shall pay to Executive (or
Executive's beneficiary or estate) within thirty (30) calendar days after the
Company's receipt of the signed release (and upon the expiration of any
revocation rights in the release), as compensation for services rendered to the
Company, an amount (the "Severance Payment") equal to the sum of:

                                       -2-
<PAGE>

                  (a) Two times Executive's annualized base salary in effect
immediately prior to the Date of Termination; and

                  (b) Two times Executive's annual bonus, if any, for the fiscal
year prior to when Executive's Date of Termination occurs.

         Any amount paid pursuant to this Section 2 shall be in lieu of any
other amount of severance relating to salary or bonus continuation to be
received by Executive upon termination of employment of Executive under any
employment agreement or under any severance plan or policy of the Company during
the Term (as defined in Section 7) of this Agreement. The Company shall pay
Executive the Severance Payment in equal installments over a two (2) year period
consistent with the Company's then-existing payroll schedule.

         3. Withholding Taxes. The Company may withhold from all payments due to
Executive (or his beneficiary or estate) hereunder all taxes which, by
applicable federal, state, local or other law, the Company is required to
withhold therefrom.

         4. Insurance. The Company hereby agrees that, during the Term of this
Agreement, it will maintain (a) life insurance coverage for Executive in an
amount equal to the Severance Payment, and (b) disability insurance coverage for
Executive in an amount equal to the Severance Payment, if obtainable at
reasonable cost to the Company.

         5. Confidential Information. Executive agrees that he will not disclose
any Confidential Information of the Company, its Subsidiaries and/or Affiliates
that came into his knowledge during his employment by the Company without the
prior written consent of the Company. "Confidential Information" means any data
or information that the Company treats as confidential, that is valuable to the
Company and that is not known to the public or to vendors or to competitors of
the Company, its Subsidiaries or Affiliates. In the event Executive's employment
with the Company is terminated for any reason during the term of this Agreement,
Employee will promptly deliver to the Company all copies of all materials of any
nature belonging to the Company, its Subsidiaries or Affiliates, and Employee
will not take with him any such materials or reproductions thereof (in whole or
in part) or any proprietary information of the Company, its Subsidiaries or
Affiliates in tangible form.

         6. Non-Competition; Non-Solicitation. Executive hereby agrees that in
consideration of Employee's covenants, obligations and agreements in this
Section 6, Employee shall receive from the Company the payments set forth in
Section 2 hereof. Executive acknowledges and recognizes the highly competitive
nature of the Company's business, and that his duties hereunder justify
restricting his further employment following any termination of employment
hereunder; accordingly, Executive agrees that so long as Executive is employed
by the Company, and for a period of one year following the termination of
Executive's employment with the Company for any reason Executive, except when
acting on behalf of or for the benefit of the Company and at the direction of
the Company, will not personally, directly or through subterfuge:

                  (a) Induce or solicit any employee of the Company (i) to
interfere with the business of the Company, or (ii) to discontinue his or her
employment with the Company;

                  (b) Induce or solicit any customers, agents or other sources
of distribution of Company business under contract or doing business with the
Company to terminate, reduce, alter or divert business with or from the Company;
or

                  (c) Compete with the Company, directly or indirectly, or
participate in any manner or capacity as an officer, principal, advisor, agent,
partner, director, stockholder, employee or consultant in any business that
develops or offers, directly or through Affiliates, any type of products or
services that are similar to or competitive in any respect with those offered by
the Company. Ownership by Executive, for investment purposes only, of less than
2% of any class of securities of a corporation if said securities are listed on
a national securities

                                      -3-
<PAGE>

exchange or registered under the Securities Exchange Act of 1934, as amended,
shall not constitute a breach of the foregoing covenant. For purposes of this
Section 6, the term "Company" shall include the Company and any Subsidiary or
Affiliate thereof. The provisions of this Section 6 shall apply in all states of
the United States. If for any reason any court of competent jurisdiction shall
find the provisions of this Section 6 unreasonable, the prohibitions herein
contained shall be restricted to such terms as such court determines to be
reasonable. Such restriction shall apply only with respect to the operation of
such provisions in the particular jurisdiction in which such adjudication is
made.

         Executive acknowledges and agrees that the covenants, obligations and
agreements of Executive contained in Sections 5 and 6 relate to special, unique
and extraordinary matters and that a violation of any of the terms of such
covenants, obligations or agreements will cause the Company irreparable injury
for which adequate remedies are not available at law. Therefore, Executive
agrees that the Company shall be entitled to an injunction, restraining order or
such other equitable relief (without the requirement to post bond unless
required by applicable law) as a court of competent jurisdiction may deem
necessary or appropriate to restrain Executive from committing any violation of
such covenants, obligations or agreements. These injunctive remedies are
cumulative and in addition to any other rights and remedies the Company may
have.

         7. Termination of Agreement. This Agreement shall be effective on the
date hereof and shall continue until the first to occur of (a) termination of
Executive's employment as Chief Executive Officer and President of the Company,
or (b) a Nonqualifying Termination. The effective period of this Agreement is
referred to herein as the "Term."

         8. Successors; Binding Agreement.

                  (a) This Agreement shall not be terminated by any merger,
consolidation, share exchange or similar form of corporate reorganization of the
Company or any such type of transaction involving the Company or any Subsidiary
of the Company (a "Business Combination"). In the event of any Business
Combination, the provisions of this Agreement shall be binding upon the
surviving or resulting corporation or the Person to which such assets are
transferred (the "Surviving Company") and such Surviving Company shall be
treated as the Company hereunder.

                  (b) This Agreement shall inure to the benefit of and be
enforceable by Executive's personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If
Executive shall die and, under the terms of this Agreement, any payment would be
required to Executive hereunder, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to such
Person or Persons appointed in writing by Executive to receive such amounts or,
if no Person is so appointed, to Executive's estate.

         9. Notice.

                  (a) For purposes of this Agreement, all notices and other
communications required or permitted hereunder shall be in writing and shall be
deemed to have been duly given when delivered or five (5) business days after
deposit in the United States mail, certified and return receipt requested,
postage prepaid, addressed as follows:

                  If to the Executive:      At the last known address shown in
                                            the Company's personnel records

                  If to the Company:        MSX International, Inc.
                                            275 Rex Boulevard
                                            Auburn Hills, MI 48236
                                            ATTN:
                                                  ---------------------

or to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

                                      -4-
<PAGE>

                  (b) A written notice of Executive's Date of Termination by the
Company to Executive shall (1) indicate the specific termination provision in
this Agreement relied upon, (2) to the extent applicable, set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of Executive's employment under the provision so indicated and (3)
specify the termination date. The failure by the Company to set forth in such
notice any fact or circumstance which contributes to a showing of Cause shall
not waive any right of the Company hereunder or preclude the Company from
asserting such fact or circumstances in enforcing the Company's rights
hereunder.

         10. Full Settlement. Payment by the Company of its obligations
hereunder and performance of the Company's other obligations hereunder shall be
in lieu and in full settlement of all other severance obligations to Executive
under any severance or employment agreement between Executive and the Company,
any Subsidiary of the Company Group and any Affiliate of the Company, excluding
any other benefits specifically provided by the Company to Executive, if any, as
approved by the Board. In no event shall Executive be obligated to seek other
employment or take other action by way of mitigation of the amounts payable to
Executive under any of the provisions of this Agreement and such amounts shall
not be reduced whether or not Executive obtains other employment.

         11. Governing Law, Validity. The interpretation, construction and
performance of this agreement shall be governed by and construed and enforced in
accordance with the internal laws of the State of Delaware without regard to the
principle of conflicts of laws. The invalidity or unenforceability of any
provision of this agreement shall not affect the validity or enforceability of
any other provision of this agreement, which other provisions shall remain in
full force and effect.

         12. Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed to be an original and all of which together shall
constitute one and the same instrument.

         13. Miscellaneous. No provision of this Agreement may be modified or
waived unless such modification or waiver is agreed to in writing and signed by
Executive and by a duly authorized officer of the Company. No waiver by either
party hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. Failure by Executive
or the Company to insist upon strict compliance with any provision of this
Agreement or to assert any right Executive or the Company may have hereunder
shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement. Except as otherwise specifically provided
herein, the rights of, and benefits payable to, Executive, Executive's estate or
Executive's beneficiaries pursuant to this Agreement are in addition to any
rights of, or benefits payable to, Executive, Executive's estate or Executive's
beneficiaries under any other employee benefit plan or compensation program of
the Company.

         14. Scope of Agreement. Nothing in this Agreement shall be deemed to
entitle Executive to continued employment with the Company or its Subsidiaries.

                                      -5-
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed by a duly authorized officer of the Company and Executive has executed
this Agreement as of the day and year first above written.

MSX INTERNATIONAL, INC.                          EXECUTIVE:

By:  /s/ Frederick K. Minturn                    /s/ Robert Netolicka
     ------------------------                    --------------------
     Name:  Frederick K. Minturn                 Robert Netolicka
     Title:  Executive Vice President and
               Chief Financial Officer

                                      -6-
<PAGE>

                               EXHIBIT A - RELEASE

         THIS RELEASE (the "Release") is entered into by and between MSX
International, Inc., a Delaware corporation (the "Company"), and Robert
Netolicka ("Employee").

                                   WITNESSETH

         Employee and the Company are terminating their employment relationship,
effective , , and desire to settle fully and finally all differences between
them that may arise out of or relate to Employee's employment with the Company
and all other claims Employee has or may have through the Effective Date of this
Release; and

         NOW, THEREFORE, in consideration of this recital, the agreements,
warranties, and representations contained herein and other good and valuable
consideration, the receipt, adequacy and sufficiency of which is hereby
acknowledged, the parties to this Release hereby agree as follows:

         1. Execution. Employee represents and warrants that he is competent to
enter into this Release, is relying on independent judgment and the opportunity
to seek the advice of legal counsel, and has not been influenced in making this
Release by any representations made by or on behalf of the Company.

         2. Specific Consideration. In exchange for the release provided
hereunder and other good and valuable consideration, and upon the execution of
this Release, Employee shall be paid in accordance with that certain Executive
Severance Agreement between Employee and the Company (or the Company's
predecessor) dated March , 2005 ("Severance Agreement"), which payment includes
all amounts, if any, which are owed to Employee pursuant to any agreement, plan
or policy of the Company arising from a termination of the Employee, other than
by reason of a Nonqualifying Termination, as defined in the Severance Agreement,
if such amount has not been previously paid to Employee.

         Employee agrees that no further amount is or shall be due or claimed to
be due from the Company and/or from any other person or entity released in
paragraph 3 below except for any post-termination payment amounts owed to
Employee pursuant to employee benefit plans qualified under the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), pursuant to the
applicable requirements of Part 6 of Subtitle B of Title I of ERISA and Section
4980B of the Internal Revenue Code of 1986, as amended ("COBRA"), or any
payments to or rights of Employee under the [Insert Company Retirement Plan
and/or Equity Compensation Plan, if any (the "Equity Plan")], or any shareholder
agreement relating to the Company to which Employee is a party.

         3. Release. In consideration of the payment provided for in paragraph 2
above and other good and valuable consideration, the receipt, adequacy, and
sufficiency of which are hereby acknowledged, Employee and his heirs, executors,
administrators, agents, assigns, and any other representative or entity acting
on his, her or their behalf; do hereby now and forever unconditionally release,
discharge, acquit and hold harmless the Company, and any of its Affiliates or
related companies, and any and all of its employees, directors, officers,
shareholders, agents, administrators, assigns, and any other representative or
entity acting on its behalf (collectively the "Released Parties"), from any and
all claims, rights, demands, actions, suits, damages, losses, expenses,
liabilities, indebtedness, and causes of action, of whatever kind or nature that
existed from the beginning of time through the date he executes this Release,
regardless of whether known or unknown, and regardless of whether asserted by
Employee to date, other than any rights Employee may have pursuant to any
indemnification of officers provided by the Company and any shareholder
agreement relating to the Company to which Employee is a party.

         4. Enforcement. In the event of a default or breach of this Release,
each party may pursue whatever legal or equitable remedies that may be available
to such party to seek judicial enforcement of this Release, whether by
injunction, specific performance, an action for damages or otherwise.

<PAGE>

         5. Jurisdiction. The laws of the State of Delaware shall govern this
Release, unless pre-empted by any applicable federal law.

         6. General. This Release may be signed in counterparts with the same
force and effect as if signed in a single document. No provision of this Release
may be modified or waived except by a written agreement signed by each of the
parties hereto. This Release contains the entire agreement of the parties, and
supersedes any and all prior or contemporaneous understandings, agreements,
representations and/or promises, whether oral or written, which are not
expressly set forth herein or expressly referred to herein.

         7. OWBPA Rights. Employee is advised to seek legal counsel regarding
the terms of this Release. Employee acknowledges that he has either sought legal
counsel or has consciously decided not to seek legal counsel regarding the terms
and effect of this Release. Employee acknowledges that this Release releases
only those claims which exist as of the date he executes this Release.

                  (a) Employee acknowledges that he may take up to a period of
forty-five (45) days from the date of receipt of this Release within which to
consider and sign this Release, but he may also choose to sign and return it
earlier.

                  (b) Employee acknowledges that he will have seven (7) days
from the date of signing this Release to revoke the Release in writing in its
entirety ("Revocation Period"). Employee acknowledges that the Release will not
become effective or enforceable until the Revocation Period has expired. In the
event the Employee chooses to revoke this Release, within the Revocation Period,
he will:

                           (i) Revoke the entire Release in a signed writing,
                  delivered to the following person on or before the seventh
                  (7th) day after he executed the Release:

                            -----------------------
                            -----------------------

                           (ii) Forfeit all severance payments rights that are
                  contemplated by this Release.

                  (c) The Effective Date of this Release shall be the eighth
(8th) day after the date Employee signs the Release, assuming the Employee has
not properly revoked the Release in writing within the Revocation Period.

                  (d) Employee expressly acknowledges that the payments and the
other consideration that he is receiving under the Release constitute material
consideration for his execution of this Release, and represent valuable
consideration to which he would not otherwise be entitled.

                                      - 2 -

<PAGE>

         IN WITNESS WHEREOF, the undersigned have executed this Release on the
date set forth below.

                                                EMPLOYEE:
Subscribed before me this the
          day of
---------        ----------,  -------           --------------------------------
                                                Signature of Employee

----------------------------                    --------------------------------
Notary Public                                   Printed Name of Employee

My commission expires:                          Date:
                                                     ---------------------------

----------------------------                    MSX INTERNATIONAL, INC.

                                                By:
                                                    ----------------------------
                                                    Name:
                                                    Title:

                                                Date:
                                                    ----------------------------

                                     - 3 -

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