Document:

Resignation Letter Agreement

 Exhibit 10.1 

 
 

 
 May 21, 2012 
 Mr. Donald Michael Harlan, Jr. 
 Breeze-Eastern Corporation 

35 Melanie Lane 
 Whippany, NJ 07981 

Dear Mike: 
 This will confirm
the agreements and understandings reached today between you and Breeze-Eastern Corporation (“Breeze-Eastern” or the “Company”). 
 Regardless of whether you elect to sign the General Release enclosed herewith and referenced below, the following will apply: 

 

	 	•	 	 by executing this Letter, you hereby resign as President, Chief Executive Officer and a director of Breeze-Eastern, and as an officer and director of
each and every subsidiary and affiliate of Breeze-Eastern, as well as a member of any committees on which you serve for any of the above; 

  

	 	•	 	 you will be paid through your final day of employment, May 21, 2012; 

 

	 	•	 	 you will be paid any bonus earned in fiscal 2012 once final bonus amounts are determined and approved by the Board of Directors, and at the same time
the Company pays bonuses to its employees; 

  

	 	•	 	 you will continue to receive your current health benefits through the end of the month of May 2012; 

 

	 	•	 	 you will retain any vested balance in your Breeze-Eastern Retirement Savings Plan, in accordance with the provisions of the plan;

  

	 	•	 	 you must return to Breeze-Eastern all documents, materials, computer hardware and software, computer passwords, calling or credit cards, keys, passes,
and any other property or data that are the property of Breeze-Eastern; 

  

	 	•	 	 Breeze-Eastern will not oppose any application for unemployment compensation you may make; 

	 	•	 	 you will not take any action, directly or indirectly, which is contrary to the interests of Breeze-Eastern or make any disparaging, untrue, negative,
derogatory or defamatory remarks concerning Breeze-Eastern or its business practices; 

  

	 	•	 	 you will continue to be covered under the Company’s indemnification and director’s and officer’s insurance policies as a “former
officer and director,” and 

  

	 	•	 	 in order to maintain good order at the Company and facilitate an orderly transition, you agree not to enter onto any of the Company’s properties
without my prior written consent. 

 We wish to assist you further during the period following your separation
from Breeze-Eastern and, in addition, desire to resolve Breeze-Eastern’s relationship with you on an amicable basis. With these goals in mind, and contingent on you executing and not revoking the General Release enclosed herewith,
Breeze-Eastern is offering you the following payments and benefits, which are in addition to any amounts to which you otherwise would be or have been entitled: 
 1. Breeze-Eastern will continue to pay your base salary at your current rate of pay through November 21, 2012, which will be subject to the usual payroll withholdings; 

2. you will be eligible to continue to participate in Breeze-Eastern’s medical and dental insurance programs through COBRA, provided
that you comply with all terms and conditions of the applicable plans. You will continue to pay the active employee rates and Breeze-Eastern will bear the remainder of the cost of such COBRA continuation coverage through November 21, 2012.
Thereafter, you will be responsible for the entire cost of COBRA continuation coverage; and 
 3. you will be eligible through
November 21, 2012 for all other benefits that you would have been entitled as an employee, as permitted by the terms of the applicable benefit policies and plans in existence at the time of your resignation, including the vesting of any stock
options that you may own at the time of your resignation. 
 4. the Company will accelerate vesting on all of the restricted
shares you received in connection with your fiscal 2010 and 2011 annual bonuses, and will pay your fiscal 2012 bonus all in cash. 
 Upon notice to me on or before November 21, 2012 that you have not obtained employment since your resignation from Breeze-Eastern, Breeze-Eastern will extend any benefits provided as set forth in
numbered paragraphs 1, 2 and 3 above during the time that you remain unemployed, for a period of up to an additional six (6) months, or through May 21, 2013, provided that you agree by signing below to immediately notify me if and when you
obtain employment at any point during that time period. If such notification is given, 

 
all benefits provided for in this letter shall cease on the date of such notification of employment. If no such notification of employment is given, all benefits provided for in this letter
agreement shall cease on May 21, 2013. For the avoidance of doubt, as of the date of your resignation, you will not be eligible for any bonus for fiscal 2013 or any period thereafter. 

 Thank you for your service and we wish you the best in your future business endeavors.

  

	
	Sincerely yours,
	
	 /s/ Robert J. Kelly

	Robert J. Kelly,
	Chairman of the Board of Directors

 In consideration of the benefits provided to you in this letter, you agree to make yourself
available to answer whatever questions that your successor reasonably may ask in his efforts to ensure a smooth leadership transition. 
 If you agree with the proposed terms as set forth above, please sign this letter, indicating your understanding and agreement to be bound. 
 Sincerely, 
 /s/ Robert J. Kelly 
 Robert J. Kelly 
 On behalf of the Board of Directors 

Breeze-Eastern Corporation 
 Enclosure: General
Release 
  

									
	Accepted and Agreed:	 		 		 	
					
	By:	 	 /s/ Donald Michael Harlan Jr.
	 		 	Dated:	 	 May 21, 2012

		 	Mr. Donald Michael Harlan, Jr.Employment Agreement

 Exhibit 10.2 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement
(“Agreement”), made as of the 22nd day of May, 2012, by and between BREEZE-EASTERN CORPORATION, a corporation organized and existing under the laws of the State of Delaware, with its principal place of business located at 35 Melanie Lane,
Whippany, New Jersey 07981 (hereinafter referred to as the “Company”), and BRAD PEDERSEN, an individual residing at 9 Thornhill Drive, Lumberton, New Jersey 08048 (hereinafter referred to as “Employee”). 

WHEREAS, The Company wishes to employ Employee and Employee wishes to accept such employment on the terms and conditions contained in
this Agreement and the parties desire to set forth the terms of such employment; and 
 WHEREAS, in the course of its business
activities, the Company has invested and will continue to invest substantial time, effort, money, and other resources in the creation, development, maintenance and protection of Confidential Information (as defined herein), as well as substantial
and ongoing customer and industry relationships, all of which permit the Company to gain a substantial advantage in the marketplace and represent assets of great value to Company and which may be disclosed to Employee in the course of
Employee’s employment with the Company; and 
 WHEREAS, in the course of its business activities, the Company has invested
and will continue to invest substantial time, effort, money, and other resources in the creation, development, maintenance and protection of its workforce which permits the Company to gain a substantial advantage in the marketplace and represents an
asset of great value to the Company; and 
 WHEREAS, Employee recognize the Company’s legitimate business interest in
protecting its Confidential Information as well as its substantial and ongoing customer and industry relationships; and 

WHEREAS, due to Employee’s desire to be employed by the Company, and the Company’s desire to employ Employee, the Company and
Employee agree to the covenants and restrictions contained herein. 
 NOW, THEREFORE, in consideration of the facts, mutual
promises and covenants contained herein, and intending to be legally bound hereby, the Company and Employee agree as follows: 

1. Definitions. As used herein, the following terms shall have the meanings set forth below unless the context otherwise requires:

 (a) “Average Bonus” shall mean (a) in the case Employee has been employed long enough to have received
two or more annual Bonus payments from the Company, the average of the two most recent annual Bonuses paid to Employee by the Company, or (b), in the case Employee has received only one Bonus payment from the Company, the amount of that Bonus.

 (b) “Business Activities” shall mean the business conducted by Company
including, but not limited to, designing, developing, manufacturing, selling, marketing and distributing retrieval winches, cargo winches, aircraft cargo cranes, static line retrieval systems, cargo hook systems, weapons loading and handling systems
(collectively, the “Company Products” all as may be more particularly described in the Company’s most recent Annual Report on Form 10-K) and all other activities in which Company is or becomes engaged. 

(c) “Cause” shall include, but not be limited to, any one or more of the following: 

(i) A determination by the Board of Directors of the Company (the “Board”) in its sole discretion of material misconduct or
gross or willful neglect by Employee of the duties that Employee is required to perform under the terms of this Agreement; 

(ii) a determination by the Board in its sole discretion that Employee has performed an act constituting a felony, or a misdemeanor
involving the property or operations of the Company, or a crime involving moral turpitude, or the commission of any other act or omission involving dishonesty or fraud; 
 (iii) a determination by the Board, in its sole discretion, of conduct by Employee tending to bring the Company into public disgrace or disrepute; 

(iv) a failure to cure Employee’s failure to perform his duties in a competent manner as reasonably directed by the Board within 30
days after written notice to Employee of such failure to perform; and 
 (v) an unauthorized disclosure by Employee of the
Company’s Confidential Information. 
 (d) “Chairman” shall mean the Chairman of the Board of the Company
or his designee. 
 (e) “Change in Control” shall be deemed to have occurred if (a) any person (including
any individual, firm, partnership or other entity) together with all Affiliates and Associates (as defined under Rule 12b-2 of the General Rules and Regulations promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) of such person, but excluding (i) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any subsidiary of the Company, (ii) the Company or any subsidiary of the Company, and
(iii) Employee, together with all of Employee’s Affiliates and Associates, is or becomes the Beneficial Owner (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the Company representing
more than 50% of the combined 

  
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voting power of the Company’s then outstanding securities; (b) the stockholders of the Company approve a merger or consolidation of the Company with any other corporation, other than a
merger or consolidation that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at
least 60% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or (c) the stockholders of the Company approve a plan of complete liquidation of
the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets to a person or persons totally unrelated to Employee or to any of Employee’s Affiliates. 

(f) “Company” shall mean the Company and all of its divisions, parents, subsidiaries, affiliates and related entities,
and all of its and their respective successors and assigns. 
 (g) “Confidential Information” shall
mean the information of the Company, including, but not limited to, Inventions, proprietary information and business matters or affairs (including, but not limited to, information relating to inventions, disclosures, processes, systems, methods,
formulas, designs, patents, patent applications, materials, research activities and plans, business proposals, product cost data, contracts, forms, information concerning competitive strengths and weaknesses, promotional methods, customer lists,
customer and supplier account preferences and requirements, business plans and strategies, procedures, sales and pricing information, production cost data, advertising information, as well as information of a confidential or proprietary nature
received from customers, suppliers, contractors, joint ventures and other collaborators), and computer programs, software and documents relating to any of the foregoing, regardless of the form or medium contained or stored in (including hard copy,
electronic or digital form), as well as copies or multiple versions of each. Such Confidential Information shall include, for purposes of this Agreement, any such information not generally known by the trade or public, even if such information has
been disclosed to one or more third parties pursuant to distribution agreements, joint research agreements, confidentiality agreements, disclosure agreements or other agreements or collaborations entered into by Company. For purposes of this
Agreement, the definition of Confidential Information applies equally to information acquired, learned, or disclosed prior to, simultaneously with, or after the date of this Agreement. 

(h) “Good Reason Resignation” means a resignation within twenty-four (24) months of a Change in Control following
(i) a material reduction in compensation and benefits or (ii) a material reduction in responsibilities, or (iii) a change in the location of the Company’s headquarters to a location more than fifty (50) miles from Whippany,
New Jersey. 
 (i) “Invention” shall mean inventions (including, but not limited to, new contributions,
concepts, ideas, developments, discoveries, processes, procedures, formulas, methods, compositions, techniques, articles, machines, and improvements), writings (including, but not limited to, computer programs, manuals, reports, databases and other
information, whether in hard copy, electronic, digital or other form), and all related know-how. 

  
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 (j) “Subsequent Termination” shall mean a termination of Employee’s
employment within twenty-four (24) months of a Change in Control that is not voluntary or is other than for Cause. 
 2.
Employment. The Company hereby employs Employee as President and Chief Executive Officer and Employee hereby accepts employment by the Company upon the terms and conditions specified in this Agreement. The Company reserves the right to modify
Employee’s job responsibilities and duties in its sole discretion, subject to the provisions of this Agreement. 
 3.
Office and Duties. 
 (a) As the President and Chief Executive Office of the Company, Employee shall render such
services as are necessary and desirable to protect and advance the best interests of Company, as determined from time to time by and under the supervision of and in accordance with the policies and directives set by the Board. 

(b) For as long as Employee shall remain employed by the Company, Employee’s entire working time, energy, skill and best efforts
shall be devoted to the performance of Employee’s duties hereunder in a manner which will faithfully, diligently and ethically further the business and interests of the Company. 

(c) Employee shall keep the Chairman informed of any significant developments or special difficulties encountered in connection with the
business affairs and financial condition of the Company. 
 (d) Employee shall comply with all rules and regulations
established from time to time by the Company. 
 (e) The Company expects and Employee has agreed that over the first five
(5) years of employment, Employee will purchase shares of the Company’s common stock in open market transactions at cost at the time of purchase of at least one hundred seventy five thousand ($175,000) dollars. These purchases are in
addition to, and not a part of, any of the shares being offered to Employee by the Company as a part of the “Bonus Plan” defined below in Subparagraph 5(b) or the stock option described in Subparagraph 5(c). 

(f) Employee has agreed, as a condition of his employment, to relocate his principal residence within twelve (12) months of the
commencement of employment to a location that is within a forty-five (45) minute commute of the Company’s current offices in Whippany, New Jersey. The Company will reimburse Employee for documented reasonable and

  
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customary costs to include moving expenses, costs to sell Employee’s existing residence and closing costs incurred in connection with the purchase of Employee’s new residence. Employee
and the Company will discuss means and methods or reducing the tax implications of these benefits to Employee. The Company will increase the sums paid to Employee pursuant to the foregoing sentence by an amount calculated to satisfy the
Employee’s tax payments solely on account of the amounts paid by the Company as reimbursement to the Employee in the foregoing sentence (the “Gross-Up Payment”). The Company also will reimburse the Employee for the documented
reasonable costs of temporary housing (e.g., extended stay hotel or similar) in the vicinity of Whippany, New Jersey for a period of up to six (6) months. In the event that Employee voluntarily terminates his employment with the Company for any
reason within (12) months of relocation, all amounts reimbursed (including the Gross-Up Payment) must be repaid to the Company within thirty (30) days of the effective date of the termination of employment. 

4. Term. Employee’s employment with the Company under the terms and conditions of this Agreement is “at will” and
shall begin on May 22, 2012 and shall continue until terminated by the Board in the exercise of its sole, unfettered and unreviewable discretion, subject to Employee’s right to severance pay and compensation as set forth in this Agreement
(the “Term of Employment”). 
 5. Compensation and Benefits. 

(a) Subject to the terms hereof, for all services rendered by Employee to the Company, Employee shall receive Base Compensation at the
gross annual rate of $350,000.00, payable in installments in accordance with the Company’s regular payroll practices in effect from time to time; however, in no event shall said installments be less frequently than monthly. The Base
Compensation shall be reviewed annually, to ascertain, in the sole discretion of the Board, whether and to what extent, if any, the amount Employee’s Base Compensation should be adjusted. 

(b) Employee will participate in the Company’s Annual Management Incentive Bonus Plan (“Bonus Plan”). Under the Bonus
Plan, Employee’s annual incentive compensation (“Bonus”) will be in the range of $0 to seventy percent (70%) of Employee’s Base Compensation, depending on Employee’s performance, as evaluated by the Incentive and
Compensation Committee of the Board. The Bonus earned will be determined based on achievement of mutually-agreed objectives, including financial targets based on the Company’s annual budget as approved by the Board. Subject to regulatory
authority and availability of stock for distribution, fifteen percent (15%) of each year’s annual Bonus will be paid in the form of shares of the Company’s common stock. During the fiscal year ending March 31, 2013,
Employee’s Bonus will be prorated for the portion of fiscal year that the Employee is employed by the Company but will not be less than one hundred sixty-four thousand ($164,000) dollars (the “Guaranteed Bonus”), and the Company will
accelerate payment of this guaranteed portion Employee within two weeks of the first day of employment. In the event that Employee voluntarily terminates Employee’s employment with the Company for any reason within twelve

  
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(12) months of Employee’s first day of employment, the Guaranteed Bonus amount shall be repaid to the Company within thirty (30) days of the effective date of the termination of
Employee’s employment. If not repaid by Employee within such thirty (30) day repayment period, it the Guaranteed Bonus repayment shall bear interest at a rate of seven (7.00%) percent per annum from the thirtieth (30th) day following the effective date of Employee’s
termination until the date of actual repayment. 
 (c) Upon commencement of employment with the Company Employee will be
awarded options to purchase four hundred thousand (400,000) shares of the Company’s common stock at the closing price on the day preceding Employee’s first day of employment. This option grant is the only grant of stock options or
other equity awards Employee will receive. Employee acknowledges that Employee will not receive a series of annual grants of stock options, restricted shares or other equity-related securities. Subject to the terms of the stock option award
agreement granted under the Plan, fifty thousand (50,000) options will vest immediately upon commencement of Employee’s employment, and the remaining options will vest in accordance with the following time and performance triggers:
(i) fifty thousand (50,000) options will vest when the average closing price of the Company’s common stock for the preceding thirty (30) days (the “Trailing Price”) exceeds eight dollars and fifty cents ($8.50);
(ii) at any time after the first anniversary of Employee’s employment, fifty thousand (50,000) shares will vest when the Trailing Price exceeds nine dollars and fifty cents ($9.50) and fifty thousand (50,000) shares will vest
when the Trailing Price exceeds ten dollars and fifty cents ($10.50); (iii) at any time after the second anniversary of Employee’s employment, fifty thousand (50,000) shares will vest when the Trailing Price exceeds eleven dollars and
fifty cents ($11.50) and fifty thousand (50,000) shares will vest when the Trailing Price exceeds twelve dollars and fifty cents ($12.50); and (iv) at any time after the third anniversary of Employee’s employment, fifty thousand
(50,000) shares will vest when the Trailing Price exceeds thirteen dollars and fifty cents ($13.50) and fifty thousand (50,000) shares will vest when the Trailing Price exceeds fourteen dollars and fifty cents ($14.50). Notwithstanding the
foregoing, upon a Change in Control all of the foregoing time frames would immediately accelerate, such that the Employee’s stock options would remain subject to only the pricing element for vesting purposes. 

(d) Employee acknowledges and confirms that his employment and the other protections and benefits of this Agreement are full, adequate
and sufficient consideration for the restrictions and obligations set forth in this Agreement. 
 (e) The compensation provided
to Employee pursuant to this Agreement shall be subject to all withholdings and deductions required by applicable law or by the Company’s policy, practice or applicable plan. 

6. Fringe Benefits. Employee shall be entitled to the benefits set forth below (the “Fringe Benefits”) during the Term
of Employment. 

  
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 (a) Employee shall be eligible to participate in any health, life, accident or disability
insurance, sick leave or other benefit plans or programs on the same terms and conditions applicable to other similarly situated employees of the Company, as long as the plans and programs are kept in force by the Company and provided that Employee
(and/or his qualified beneficiaries) meets the eligibility requirements and other terms, conditions and restrictions of the respective plans and programs. The premiums of the health insurance plan made available to Employee will be on a shared cost
basis. The premium and specified percentage of the Company’s contribution will be determined by the Company’s plans in effect, from time to time. 
 (b) Employee shall be entitled to four (4) weeks vacation per year. The Company does not offer sabbaticals and the Employee will not be entitled to any compensation for unused vacation. Employee
shall also be entitled to a day off on each holiday designated by the Company as a Company holiday.
 (c) The Company shall
reimburse Employee for all reasonable and necessary expenses actually incurred by Employee in connection with the performance of Employee’s duties hereunder upon receipt of documentation thereof in accordance with the Company’s regular
reimbursement procedures and practices in effect from time to time. 
 (d) The Fringe Benefits provided to Employee pursuant to
this Agreement shall be subject to all withholdings and deductions required by applicable law or by the Company’s policy, practice or applicable plan. 
 7. Disability. If Employee suffers a “Disability” as that term is defined in the Company’s Employment Manual or otherwise established by the Board of Directors, the Company may
terminate the Term of Employment and Employee’s employment relationship with the Company at any time thereafter by giving Employee five days written notice of termination. Thereafter, the Company shall have no obligation to Employee for Base
Compensation, Bonus, Fringe Benefits or any other form of compensation or benefit, except as otherwise required by law, as noted below, or as set forth in benefit plans provided at Company expense. Notwithstanding the foregoing, the Employee shall
be paid a Bonus for the year in which his Term of Employment ends that is pro-rated for the period of time actually worked and payable at a time consistent with the Company’s normal practice. Reimbursement of appropriately documented expenses
incurred by Employee before the termination of employment, to the extent that Employee would have been entitled to such reimbursement but for the termination of employment, will be paid by the Company to Employee. Any compensation in lieu of wages
that Employee receives from any Company-funded insurance, benefit plan or policy under which Employee was covered at the time of her disability, including, but not limited to, workers’ compensation wage payments or disability wage payments,
shall be deducted from the Company’s Base Compensation payment to Employee. Employee, however, shall continue to be bound by the post-employment obligations and covenants set forth in this Agreement following his/her termination. 

  
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 8. Death. If Employee dies during the Term of Employment, the Term of Employment and
Employee’s employment relationship with the Company shall terminate as of the date of Employee’s death. Upon termination of the Term of Employment and Employee’s employment relationship under this Paragraph 8, the Company shall,
thereafter, have no obligation to Employee or Employee’s estate for Base Compensation, Bonus, Fringe Benefits or any other form of compensation or benefit, except as otherwise required by law, as noted below, or as set forth in benefit plans
provided at Company expense. Notwithstanding the foregoing, the Employee shall be paid a Bonus for the year in which his Term of Employment ends that is pro-rated for the period of time actually worked and payable at a time consistent with the
Company’s normal practice. Reimbursement of appropriately documented expenses incurred by Employee before the termination of employment, to the extent that Employee would have been entitled to such reimbursement but for the termination of
employment, shall be paid by the Company to Employee’s estate. Any compensation in lieu of wages Employee receives from any Company-funded insurance, benefit plan or policy under which Employee was covered at the time of her death, including,
but not limited to, workers’ compensation wage payments or disability wage payments, shall be deducted from the Company’s Base Compensation payment to Employee’s estate. Nevertheless, life insurance proceeds shall not be deducted from
the Company’s Base Compensation payment to Employee or Employee’s estate. 
 9. Termination for Cause. The
Company may terminate the Term of Employment and Employee’s employment relationship with it at any time for Cause. Upon termination of the Term of Employment and Employee’s employment relationship for Cause under this Paragraph 9, the
Company shall, thereafter, have no obligation to Employee for Base Compensation, Bonus, Fringe Benefits or any other form of compensation or benefit, except as otherwise required by law or as set forth in benefit plans provided at Company expense.
Reimbursement of appropriately documented expenses incurred by Employee before the termination of employment, to the extent that Employee would have been entitled to such reimbursement but for the termination of employment, shall be paid by the
Company to Employee. Employee, however, shall continue to be bound by the post-employment obligations and covenants set forth in this Agreement following his/her termination. 
 10. Termination Without Cause. 
 (a) The Company may
terminate the Term of Employment and Employee’s employment relationship with it for any or no reason (without Cause), upon written notice to Employee (the “Termination Notice”). The Company shall then consider Employee’s
employment relationship with it and the Term of Employment terminated as of the date of the Termination Notice. From and after the delivery of the Termination Notice, the Company shall pay to Employee severance pay equal to Employee’s Base
Compensation in effect at the time of termination, exclusive of Bonus and any incentive compensation, and the continuation of employee benefits for the shorter of (a) the period until Employee is employed other than by the Company and
(b) a period of one year (the “Severance Pay”). The Severance Pay will be paid to Employee in twelve (12) consecutive monthly installments beginning on the fifty-second
(52nd)  

  
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day following the effective date of the Termination Notice; provided however, that no severance pay will be paid to Employee unless, within the fifty-second day period referenced above, Employee
executes and does not revoke a separation agreement and general release, each in a form satisfactory to the Company. The foregoing Severance Pay is in lieu of and the Company shall have no obligation to Employee for Base Compensation, Bonus, Fringe
Benefits or any other form of compensation or benefit, except as otherwise required by law, or as set forth in benefit plans provided at Company. 
 (b) Employee may terminate the Term of Employment and his employment relationship with the Company for any or no reason, upon sixty (60) days written notice to the Chairman (“Resignation Notice
Period”). If such notice is provided by Employee, the Chairman, in his sole discretion, may waive the Resignation Notice Period or any portion thereof, without pay (Base Compensation, etc.) or Fringe Benefits to Employee for the remaining part
of the Resignation Notice Period. From and after the date specified by the Chairman, the Company shall have no obligation to Employee for Base Compensation, Fringe Benefits or any other form of compensation or benefit, except as otherwise required
by law, or as set forth in benefit plans provided at Company expense. 
 (c) If within the twenty-four
(24) month period following a Change in Control Employee is either terminated (a “Subsequent Termination”) or resigns for “Good Reason” (a “Good Reason Resignation”), Employee will receive a cash payment from the
Company or its successor-in-interest equal to two times the sum of (a) Employee’s Base Compensation in effect at the time of the Subsequent Termination or Resignation for Good Reason plus (b) Employee’s Average Bonus. Payments
received pursuant to this Section 10(c) would be in lieu of any and all payments Employee would receive under the Company’s Corporate Severance Pay Plan. The payment will be paid to Employee in twenty-four (24) consecutive monthly
installments beginning on the fifty-second (52nd) day following the date of Employee’s termination of
employment with the Company; provided however, that no severance pay will be paid unless, within the fifty-two (52) day period referenced above, Employee executes and does not revoke a separation agreement and general release, each in a form
satisfactory to the Company. 
 (d) Termination of the Term of Employment and Employee’s employment relationship with the
Company pursuant to this Paragraph 10 shall not release Employee from Employee’s post-employment obligations and restrictions as set forth in this Agreement. 
 (e) Employee shall not be entitled to any payment or benefit under any Company plan, practice or policy, if any, in effect at or after the time of the termination of the Term of Employment and the
termination of Employee’s employment relationship with the Company, other than those provided for by this Agreement. 

  
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 (f) Reimbursement of appropriately documented expenses incurred by Employee before the
termination of employment in accordance with this Paragraph 10, to the extent that Employee would have been entitled to such reimbursement but for termination of his/her employment and the Term of Employment, shall be paid by the Company to
Employee. 
 (g) The compensation and benefits provided to Employee pursuant to this Agreement shall be subject to all
withholdings and deductions required by applicable law or by the Company’s policy, practice or applicable plan. 

  
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 11. Confidential Information. 

(a) No Disclosure of Confidential Information. To assist Employee in the performance of his duties, Company shall provide
Employee access to certain Confidential Information and materials belonging to the Company. Employee shall protect and guard, and not use for his own benefit or the benefit of anyone other than Company, or disclose, publish, communicate, reveal or
divulge, directly or indirectly, any Confidential Information of Company to any person or entity at any time or in any manner without the prior written consent of the Chairman, except as required in the course of employment with the Company.

 (b) Inevitable Use or Disclosure. Employee shall not, while employed by the Company and for a period of two
(2) years after the termination thereof, for any reason whatsoever, without the written consent of the Chairman, directly or indirectly, engage in, represent in any way, be connected with, furnish consulting services to, be employed by, or have
any interest, whether as owner, employee, principal, partner, servant, agent, employee, representative, independent contractor, member, distributor, consultant, officer, director, stockholder, or otherwise, whether or not for compensation, in any
business which through the faithful performance of his duties thereof could reasonably be anticipated to lead to the use or disclosure of Company’s Confidential Information. 

(c) Ownership and Return of Company’s Property Upon Termination. Employee acknowledges and confirms that all Confidential
Information which are conceived, developed, or made by Employee in the course of his employment with the Company, or disclosed to or otherwise acquired by his in the course of his employment with the Company, are and shall remain the sole and
exclusive property of the Company; that he shall not retain, copy or otherwise appropriate any of such Confidential Information for his own use or the use or purposes of any third party, without the prior written consent of the Chairman; and that,
upon the termination of his employment, for any reason whatsoever, he shall promptly return all such Confidential Information, including all copies or multiple versions thereof (regardless of the form or medium contained or stored in (including hard
copy, electronic or digital form)), to the Company and, in the case of intangible information, shall continue to hold them as the confidential property of the Company and not disclose them, directly or indirectly, or use them for any purpose,
without the prior written consent of the Chairman. 
 12. Inventions. 

(a) Employee shall promptly disclose to the Company in writing all Inventions, whether or not patentable, copyrightable or protectable
as trade secrets, conceived, developed, or made by Employee, alone or with others, during the period of Employee’s employment with the Company, whether during working hours or not, and, in the case of clauses (ii) and (iii) below,
during the period of Employee’s employment with the Company and at any time after Employee ceases to be employed by the Company, for any reason whatsoever, which: (i) relate in any manner to the actual or anticipated business, research, or
development of 

  
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Company; (ii) are conceived, developed, or made using equipment, supplies, facilities, trade secrets or confidential information of Company; or (iii) result from, arise out of or relate
to work performed by Employee for Company. 
 (b) Employee shall transfer and assign, and does hereby transfer and assign, to
the Company all of his right, title and interest in and to each Invention covered by this Paragraph 12. As may be requested by the Company from time to time, Employee shall take all steps reasonably necessary to assist Company in obtaining and
enforcing any patent, copyright, or other protection which the Chairman elects to obtain or enforce, in any country, for any Invention covered by this Paragraph 12. Employee’s obligation to assist the Company in obtaining and enforcing such
patents, copyrights, and other protections will continue beyond the termination of Employee’s employment with the Company, for any reason whatsoever, but the Company shall compensate Employee at a reasonable rate of compensation, as determined
in the sole discretion of the Chairman, after the termination of his employment for the time actually spent providing such assistance. If the Company is unable, after reasonable effort, to secure Employee’s signature on any document needed to
apply for, prosecute, or enforce any patent, copyright, or other protection in relation to any Invention, whether because of Employee’s physical or mental incapacity or for any other reason whatsoever, Employee hereby irrevocably designates and
appoints Company and its duly authorized officers and agents as Employee’s agent and attorney-in-fact, to act for and in Employee’s behalf and stead to execute and file any such document and to do all other lawfully permitted acts to
further the prosecution and enforcement of patents, copyrights, or other protections with the same legal force and effect as if executed by Employee. 
 13. Confidential Information of Others. 
 (a) During the Term of
Employment, Employee shall not improperly use or disclose any confidential information of any former or concurrent employer or other person or entity without the prior written consent of that employer, person or entity. Furthermore, during the Term
of Employment, Employee shall not bring onto Company premises any such confidential information of any former or concurrent employer or other person or entity without the prior written consent of that employer, person or entity. 

(b) Employee represents and warrants that he is not a party to or bound by any other employment agreement or other agreement or
understanding that requires him to transfer or assign any Invention or discovery conceived, developed, or made by Employee, alone or with others. 
 14. No Solicitation of Customers or Potential Customers. Employee shall not, during the Term of Employment and for a period of two (2) years after the termination thereof, for any reason
whatsoever, without the written consent of the individual then holding the office of Chairman, other than for the account of the Company, directly or indirectly, solicit, attempt to solicit, or cause to be solicited any party who was a customer of
the Company at the time of Employee’s employment with or termination of employment, for any reason whatsoever, by the 

  
 12 

 
Company, or who was a customer of or was actively solicited by the Company, its agents, representatives, or employees to be a customer within twelve (12) months prior to Employee’s
termination of employment,. 
 15. No Hiring of Employees. Employee shall not, during the Term of Employment and for a
period of two (2) years after the termination thereof, for any reason whatsoever, without the written consent of the individual then holding the office of Chairman, other than for the account of the Company, directly or indirectly:
(a) hire or employ any employee of or other person associated with the Company on behalf of any individual, including himself/herself, corporation or other entity; or (b) induce or attempt to induce any employee or other person associated
with the Company to leave the employ of or cease doing business with the Company. 
 16. No Inducement to Cease Doing
Business with Company. Employee shall not, during the Term of Employment and for a period of two (2) years after the termination thereof, for any reason whatsoever, without the written consent of the individual then holding the office of
Chairman or his designee, directly or indirectly, induce or attempt to induce any customer, supplier, manufacturer, licensor, association, organization, vendor or any other person or entity to cease doing or reducing the amount of business with the
Company. 
 17. No Competition. In consideration of his employment and for the access to Confidential Information
provided by Company and so as to enforce Employee’s agreement regarding such Confidential Information, Employee shall not, during the Term of Employment and for a period of two (2) year after the termination thereof, for any reason
whatsoever, without the written consent of the individual then holding the office of Chairman, directly or indirectly, engage in, represent in any way, be connected with, furnish consulting services to, be employed by, or have any interest, whether
as owner, employee, principal, partner, servant, agent, employee, representative, independent contractor, member, distributor, consultant, officer, director, stockholder, or otherwise, in any business that engages in business activities included
within, arising out of or related to the Company’s Business Activities; provided, however, that the foregoing will not prohibit Employee from owning up to one percent (1%) of any class of equity securities of a company whose securities are
publicly traded on a national securities exchange or in a national market system. 
 18. Breach. Employee acknowledges
and confirms that the restrictions contained in this Agreement, in view of the nature of the Company’s business, are reasonable and necessary in order to protect the legitimate business interests of the Company and that any breach or threatened
breach of the provisions of this Agreement shall cause irreparable injury to the Company, that money damages will not provide an adequate remedy, and that their enforcement will not impose a hardship on Employee or significantly impair
Employee’s ability to earn a livelihood. Employee further acknowledges and confirms that the remedy at law for any breach of the foregoing will be inadequate, and the Company shall therefore be entitled, in addition to any other relief
available to it, to preliminary, temporary and permanent injunctive relief without the necessity of proving irreparable harm or posting bond or other security. If 

  
 13 

 
provisions of this Agreement are ever determined by a court of competent jurisdiction to exceed limitations permitted by law, then such provisions shall be reformed automatically to set forth the
maximum limitations permissible by law. If Employee violates any of the restrictions contained in this Agreement, the relevant restricted period shall be extended by a period equal to the length of time from the commencement of any such violation
until such time as such violation shall be deemed, by the Chairman to be cured. Nothing contained herein shall be considered as prohibiting the Company from pursuing any other remedies available to it for such breach or threatened breach, including
any recovery of damages from Employee. Employee further covenants and agrees that if he violates this Agreement, Employee shall pay to the Company any reasonable attorneys’ fees and costs that it may incur in connection with the enforcement of
its rights under this Agreement. The Company may supply a copy of this Agreement to any future or prospective employer of Employee or to any person or entity to whom Employee has supplied information if the Company determines, in its sole
discretion, that there is a reasonable likelihood that Employee has violated or shall violate any portion of this Agreement. 

19. No Disparagement. Employee shall not make any disparaging remarks to any person or entity regarding the Company or its
business practices during employment or after termination, for any reason whatsoever. 
 20. Prior Agreements. Employee
represents and warrants to the Company that there are no restrictions, agreements or understandings, including, but not limited to, prior covenant not to compete agreements, oral or written, to which Employee is a party or by which Employee is
bound, that prevent or make unlawful or actionable Employee’s execution or performance of this Agreement. 
 21.
Employee Cooperation. Employee shall make himself available and cooperate in any reasonable manner in providing assistance to the Company in concluding and defending any business or legal matters which relate to the Company. Employee’s
obligation to assist the Company shall continue beyond the termination of Employee’s employment with the Company, for any reason whatsoever. In the event that Employee is requested by the Company to provide such assistance post-termination in
such matters, then the Company shall reimburse the Employee for his reasonable and necessary expenses incurred in providing such assistance, including reasonable attorneys’ fees, provided, however that the Company may direct the use of Company
counsel to the extent legally permissible. Furthermore, Employee shall not initiate, commence, voluntarily cooperate or provide assistance to any third party or individual in connection with any claim against the Company, whether pending or
otherwise, without the prior written consent of the Chairman. In the case of legal proceedings, Employee shall notify the Chairman, of any subpoena or other similar notice to give testimony or provide documentation (“Notice”), within two
(2) days of receipt of said Notice and prior to providing any response to said Notice such that the Company may have an opportunity to seek and obtain, among other things, an appropriate protective order or seek intervention in the matter.

  
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 22. Electronic Communication Systems. 

(a) Employee shall not use for his personal use any of the Company’s electronic communication systems (including, but not limited
to, desktop or laptop computers, facsimile machines, PDAs, telephones, cell phones, any portable data storage devices (including, but not limited to, thumb/flash memory, hard disc drive, CDs, DVDs, floppy disks or any other type of magnetic or
optical storage device or any other device of similar function) (collectively referred to herein as “Device(s)”) except for such limited, occasional and incidental use as does not materially or adversely impact the Company’s
information technology systems infrastructure nor degrade or impair in any respect any of the security systems or procedures in place to preserve and protect the Company’s systems, data and information. 

(b) Employee acknowledges and confirms that: 
 (i) all electronic (e-mail/internet/world wide web (“www”)) communication systems operated by the Company (collectively referred to herein as “Systems”), as well as information stored,
downloaded, transmitted, received, or contained in such Systems, are the property of the Company. These Systems are to be used solely for job related purposes; and 
 (ii) The Company reserves and intends to exercise the right at any time to review, audit, intercept, access, and disclose all materials created, received or sent over such Systems and that s/he shall have
no expectation of privacy from such access or monitoring. The right of the Company to such access and monitoring shall include Employee’s personal password protected email accounts that are otherwise accessed by Employee on such Systems; and

 (iii) the Systems shall not be used to solicit others for commercial ventures, religious or political causes, outside
organizations or other non-business matters; and 
 (iv) the Systems shall not be used to create any offensive or disruptive
messages. Offensive and disruptive messages include, but are not limited to, any messages which are in contravention of Company’s Non-Harassment Policy, which contain any racial or ethnic slurs or which offensively address someone’s age,
gender, sexual orientation, religious or political beliefs, national origin, or disability/handicap or other classification protected by applicable law; and 
 (v) the Systems shall not be used to send (upload) or retrieve (download) copyrighted materials, trade secrets, proprietary business or financial information or similar materials without the prior written
consent of the Chairman. 
 23. Miscellaneous. 
 (a) Indulgences, Etc. Neither the failure nor any delay on the part of either party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor
shall any single or partial exercise of any right, remedy, power or 

  
 15 

 
privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any
occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 

(b) Controlling Law. This Agreement and all questions relating to its validity, interpretation, performance and enforcement
(including, without limitation, provisions concerning limitations of actions), shall be governed by and construed in accordance with the laws of the State of New Jersey, notwithstanding any conflict-of-laws doctrines of such jurisdiction to the
contrary, and without the aid of any canon, custom or rule of law requiring construction against the draftsman. 
 (c)
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 only when personally delivered, on the day
specified for delivery when deposited with a recognized national or regional courier service for delivery to the intended addressee or two days following the day when deposited in the United States mails, first class postage prepaid, addressed as
set forth below: 
  

	 	(i)	If to Employee: 

 Brad Pedersen

 9 Thornhill Drive 
 Lumberton, New Jersey 08048 
  

	 	ii)	If to the Company: 

Breeze-Eastern Corporation 
 35 Melanie Lane 
 Whippany, New Jersey 07981 

Att: Chairman of the Board of Directors 
 With a copy, given in the manner prescribed above, to: 
 Fox Rothschild LLP

 997 Lenox Drive 
 Lawrenceville, New Jersey 08648 
 Att: Matthew H. Lubart, Esq. 

Any party may alter the address to which communications or copies are to be sent by giving notice of such change of address in
conformity with the provisions of this Paragraph 23 (c) for the giving of notice. 
 (d) Binding Nature of
Agreement. This Agreement shall be binding upon the Company and shall inure to the benefit of the Company including any transferee of the 

  
 16 

 
business operation, as a going concern, in which Employee is employed and shall be binding upon Employee, Employee’s heirs and personal representatives. None of the rights or obligations of
Employee hereunder may be assigned or delegated, except that in the event of Employee’s death or Disability, any rights of Employee hereunder shall be transferred to Employee’s estate or personal representative, as the case may be. The
Company may assign its rights and obligations under this Agreement in whole or in part to any one, and such assignment shall relieve the Company of its obligations to Employee under the terms of this Agreement. 

(e) Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be
an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become binding when any number of counterparts hereof, individually or taken together,
shall bear the signatures of all of the parties reflected hereon as the signatories. 
 (f) Provisions Separable. The
provisions of this Agreement are independent of and separable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or
unenforceable in whole or in part. 
 (g) Entire Agreement/Release. This Agreement contains the entire understanding
among the parties hereto with respect to the employment of Employee by the Company, and supersedes all prior and contemporaneous agreements (including, but not limited to, the Letter Agreement dated April 29, 2012) and understandings,
inducements or conditions, express or implied, oral or written, except as herein contained. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. This Agreement
may not be modified or amended other than by an agreement in writing executed by both parties to this Agreement. Furthermore, Employee acknowledges and confirms that any subsequent change or changes in his duties, compensation or benefits shall not
affect the validity or scope of this Agreement. Notwithstanding the foregoing, nothing herein shall limit the application of any generally applicable Company policy, practice, plan or the terms of any manual or handbook applicable to the
Company’s employees generally, except to the extent the foregoing directly conflict with this Agreement, in which case the terms of this Agreement shall prevail. 
 (h) Paragraph Headings. The Paragraph headings in this Agreement are for convenience only; they form no part of this Agreement and shall not affect its interpretation. 

(i) Number of Days. Except as otherwise provided herein, for example, in the context of vacation days, in computing the number of
days for purposes of this Agreement, all days shall be counted, including Saturdays, Sundays and holidays; provided, however, that if the final day of any time period falls on a Saturday, Sunday or holiday on which federal banks are or may elect to
be closed, then the final day shall be deemed to be the next day which is not a Saturday, Sunday or such holiday. 

  
 17 

 (j) Gender, etc. 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 indicates is appropriate. 

(k) Jurisdiction of Courts. Any suit, action, claim, proceeding or investigation arising out of or relating to this Agreement
shall be brought only in, and Employee and the Company consent to subject themselves to the personal jurisdiction of, the New Jersey Superior Court located in Morris County, New Jersey or the United States District Court for the District of New
Jersey (to the extent that subject matter jurisdiction exists), and each of the parties hereto waives any objection which party may now or hereafter have to such venue of any such suit, action, claim, proceeding or investigation, and irrevocably
submits to the personal and subject matter jurisdiction of any such court. Any and all service of process and any other notice in any such suit, action, claim, proceeding or investigation shall be effective against any party if given by registered
or certified mail, return receipt requested, or by any other means of mail which requires a signed receipt, postage prepaid, mailed to such party as herein provided. 
 (l) Survival. All provisions of this Agreement which by their terms survive the termination of Employee’s employment with the Company, including, but not limited to, the post-employment
obligations and covenants of Employee set forth in Paragraphs 11 through 23 inclusive shall survive termination of Employee’s employment by the Company and shall remain in full force and effect thereafter in accordance with their terms.

 (m) Breach. In the event Employee breaches this Agreement and such breach is proven in a Court of Law, Employee shall
be required to pay the Company’s actual and reasonable attorney’s fees and costs associated with the dispute. 
 (n)
Disclosure of Agreement. The Company may disclose the terms of this Agreement, including, but not limited to, Employee’s obligations hereunder, to others in the sole discretion of the Chairman. 

(o) Representation of the Company. The Company represents and warrants that the undersigned has the authority to act on behalf of
it and to bind the Company to this Agreement. 
 (p) Reliance on Statements. In signing this Agreement, the parties
hereto represent and warrant that they are not relying on any statements, representations or promises made by the other party or their agent(s) except as specifically set forth herein. 

  
 18 

 24. Representations of Employee. Employee represents and warrants to the Company that
he: 
 (a) has been given a copy of this Agreement to retain with his personal records; 

(b) has read and understands the entire contents of this Agreement; 

(c) has the capacity to act on his own behalf and to bind himself/herself to this Agreement; 

(d) was afforded a sufficient opportunity to obtain independent legal counsel prior to executing this Agreement and has executed this
Agreement voluntarily and of his own free will; and 
 (e) understands that the execution of this Agreement is a condition of
his employment by the Company. 
 IN WITNESS WHEREOF, the parties have duly executed and delivered this Agreement in as of the
date first above written. 
  

									
		 		 		 	BREEZE-EASTERN CORPORATION
					
	By:	 	 /s/ Brad Pedersen
	 		 	By:	 	 /s/ Robert J. Kelly

		 	BRAD PEDERSEN	 		 		 	ROBERT J. KELLY,
		 		 		 		 	Chairman of the Board of Directors

  
 19

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