Document:

exhibit10_1.htm

    EXHIBIT
10.1

    

     

    EXECUTIVE EMPLOYMENT AGREEMENT

     

    This
Employment Agreement (“Agreement”) is entered into as of January 1, 2009 by
and between Todd R. Peters, a natural person (“Executive”), and ATC Technology
Corporation, a Delaware corporation (“ATC”).  As used herein, the
“Company” refers to ATC and/or any direct or indirect subsidiary of
ATC.  The parties hereto agree as follows:

     

    1.           Employment and
Term.

     

    (a)           Full Time and Best
Efforts.  Subject to the terms set forth herein, the Company
agrees to employ Executive as its principal executive officer, with the title of
President and Chief Executive Officer, and Executive hereby accepts such
employment.  During the term of employment, Executive will devote
Executive’s full time, best efforts and attention to the performance of
Executive’s duties hereunder and to the business and affairs of the
Company.

     

    (b)           Duties.  Executive
shall perform such duties for the Company as are customarily associated with the
position of the principal executive officer, consistent with the Bylaws of the
Company and as required by the Board of Directors of the Company (the
“Board”).  Executive shall report directly to the Board.

     

    (c)           Company
Policies.  The employment relationship between the parties
shall be governed by the general employment policies and practices of the
Company, except that when the terms of this Agreement differ from or are in
conflict with such employment policies and practices, this Agreement shall
control.

     

    (d)           Term.  The
initial term of employment of Executive under this Agreement shall begin as of
the date hereof and end on the third anniversary the date hereof, subject to the
provisions for termination contained in Section 5 and renewal contained in
Section 1(e).

     

    (e)           Renewal.  Unless
the Company shall have given Executive notice that this Agreement shall not be
renewed at least 30 days prior to the end of the initial term referred to in
Section 1(d), the term of this Agreement shall be automatically extended
for a period of one year, such procedure to be followed in each such successive
period.

     

    2.           Compensation and
Benefits.

     

    (a)           Salary.  Executive
shall receive for services to be rendered hereunder an annual base salary of
$450,000, payable on the Company’s regular payroll dates, subject to increase at
the discretion of the Company, and subject to standard withholdings for taxes
and social security and the like.  The Company shall review
Executive’s salary on a periodic basis and may, in its sole discretion, increase
Executive’s salary.

     

    (b)           Incentive
Plans.  During the term hereof, Executive shall be eligible to
participate in any annual incentive bonus plan and long-term incentive plan
(including, without limitation, any stock incentive plan) of the Company
generally available to the Company’s senior executives.  Such
participation shall be subject to and on a basis consistent with the terms,
conditions and administration of any such plan.  Executive understands
that (i) the Company shall have discretion to determine Executive’s level
of participation in any such plan, and (ii) any such plan may be modified
or eliminated in the Company’s sole discretion in accordance with applicable law
and the terms of such plan.

     

    
      
         

      

      
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    (c)           Participation in Benefit
Plans.  During the term hereof, Executive shall be entitled to
participate in any group insurance, hospitalization, medical, dental, health and
accident, disability, retirement income or similar plan or program of the
Company to the extent that Executive is eligible under the general provisions
thereof.  The Company may, in its discretion and from time to time,
establish additional management benefit programs as it deems
appropriate.  Executive understands that any such plans may be
modified or eliminated in the Company’s discretion in accordance with applicable
law.

     

    (d)           Vacation.  Executive
shall be entitled to an initial period of annual paid vacation time of five
weeks and hereafter the annual period may be increased based on the Company’s
policies and procedures.  The days selected for Executive’s vacation
must be mutually agreeable to the Company and Executive.

     

    3.           Perquisites.

     

    (a)           Financial Planning/Club Dues
Allowance.  Executive will receive an annual financial
planning/club dues allowance equal to 3% of Executive’s base salary paid during
such year, which may be increased based on the Company’s policies and
procedures.  Such allowance shall be paid in substantially equal
installments per the Company’s regular payroll dates and shall be subject to
applicable withholding.

     

    (b)           Automobile.  Executive
shall be entitled to an annual automobile allowance of $24,000, which may be
increased based on the Company’s policies and procedures.  Such
allowance shall be paid in substantially equal installments per the Company’s
regular payroll dates and shall be subject to applicable
withholding.

     

    4.           Business
Expenses.  Executive shall be reimbursed for documented and
reasonable business expenses in connection with the performance of duties
hereunder.

     

    5.           Termination
of Employment.  The date on which Executive’s employment by the
Company ceases, under any of the following circumstances, shall be defined
herein as the “Termination Date.”  All capitalized terms used in this
Section 5 without definition will have the meanings set forth in
Section 5(j).

     

    (a)           Termination for
Cause.  The Company may terminate Executive’s employment at any
time for Cause immediately upon written notice to Executive of the circumstances
leading to such termination for Cause.  If Executive’s employment is
terminated for Cause, Executive shall receive payment for all accrued salary
through the Termination Date (which in this event shall be the date upon which
notice of termination is given) and the Earned Benefits.  The Company
shall have no obligation to pay severance of any kind nor to make any payment in
lieu of notice if Executive is terminated for Cause.

     

    (b)           Voluntary
Termination.  Executive may voluntarily terminate employment
with the Company at any time upon 30 days’ prior written
notice.  Within ten days after the Termination Date, Executive shall
receive payment for all accrued salary through the Termination
Date and the Earned Benefits, after which no further compensation of any kind or
severance payment will be payable under this Agreement.

    
 

    
      
        
           

        

        
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    (c)           Termination Upon
Disability.  The Company may terminate Executive’s employment
in the event Executive suffers a disability that renders Executive unable to
perform the essential functions of Executive’s position, even with reasonable
accommodation in compliance with the Americans with Disabilities Act, for three
consecutive months within any six-month period.  Within ten days after
the Termination Date, which in this event shall be the date upon which notice of
termination is given, Executive shall receive payment for all accrued salary
through the Termination Date and the Earned Benefits, after which no further
compensation will be payable under this Agreement.  The foregoing
shall not affect any rights that Executive may have under applicable workers’
compensation laws or any disability plan of the Company.

     

    (d)           Termination Without
Cause.  The Company may terminate Executive’s employment
without Cause at any time upon 30 days’ prior written
notice.  Executive will be deemed to have been terminated without
Cause if the Company elects not to renew this Agreement pursuant to
Section 1(e).  Within ten days after the Termination Date,
Executive shall receive payment for all accrued salary through the Termination
Date and the Earned Benefits.  In addition

     

    (i)           Through
the second anniversary of the Termination Date the Company will offer continued
medical-related insurance coverage (including, as applicable, health, dental,
vision and/or cancer) to Executive at the levels and at the rates applicable
from time to time to comparable active employees of the
Company.  COBRA continuation coverage eligibility shall commence as of
the day following the second anniversary of the Termination
Date.  Notwithstanding the above, coverage under the Company’s group
medical plan shall cease on the date (A) Executive fails to pay the
required premium on time, (B) Executive becomes eligible for coverage under
Medicare or the group health plan of any other employer, or (C) the Company
terminates its group medical plan as to all its employees.

     

    (ii)           The
Company shall pay Executive as severance the following:

     

    (A)           If
the Termination Date occurs other than within 18 months after a Change in
Control, an amount equal to 200% of the sum of (x) Executive’s annual base
salary as in effect immediately prior to the Termination Date plus
(y) Executive’s target bonus under the IC Plan for the Termination Year;
such amount shall be paid in equal installments on each of the Company’s regular
payroll dates during the 24-month period commencing on the first such payroll
date following the Termination Date (subject to Section 5(h)).

     

    (B)           If
the Termination Date occurs within 18 months after a Change in Control, an
amount equal to (x) 200% of the sum of (1) Executive’s annual base
salary as in effect immediately prior to the Termination Date plus
(2) Executive’s target bonus under the IC Plan for the Termination Year,
plus (y) the Pro Forma Bonus.  The severance shall be paid in a
single lump sum within ten days after the Termination Date; provided, however,
that if the Change in Control is not also a “change in control 

     

    
      
         

      

      
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    event”
(as defined in Treasury Regulation §1.409A-3(i)(5)) with respect to ATC, the
Company will pay the severance described in this Section 5(d)(ii)(B) in
substantially equal installments during the 24-month period immediately
following the Termination Date in accordance with the Company’s regular payroll
practices.

     

    (iii)           The
Company will pay an amount up to 7% of Executive’s annual base salary as in
effect immediately prior to the Termination Date for the cost of an executive
level individualized career transition program through a professional
outplacement firm selected by the Company, provided such program is initiated
within 30 days after the Termination Date.

     

    If
Executive dies after the Termination Date, the payment or payments due
thereafter under Section 5(d)(ii)(A) or (B) shall be made in
accordance with the immediately following sentence but the benefits provided in
Sections 5(d)(i) and (iii) shall terminate as of the date of
death.  As a condition to receiving the payments and benefits provided
by this Section 5(d) (other than payment for all accrued salary through the
Termination Date and the Earned Benefits, which shall be payable in any case),
Executive shall execute and deliver to the Company, within 21 days after the
Termination Date, a general release in the form attached hereto as
Exhibit A.  Executive may select and change a beneficiary or
beneficiaries to receive compensation payable hereunder following his death by
giving the Company written notice thereof.  In the event there is no
such named beneficiary, or no surviving named beneficiary, such compensation
shall be paid to Executive’s estate.

     

    If the
basis for Executive’s termination is clause (i)(B) of Section 5(e) below, any
reference to “annual base salary as in effect immediately prior to the
Termination Date” in this Section 5(d) shall mean Executive’s annual base salary
prior to the diminution in such annual base salary.

     

    (e)           Good
Reason.  If the Company (i) materially diminishes Executive’s
duties, authority, or responsibility as President and Chief Executive Officer of
the Company, (ii) materially diminishes Executive’s annual base salary, or
(iii) materially breaches this Agreement (any of the foregoing being a
“Good Reason Event”), Executive may terminate employment if (A) Executive
has given written notice to the Company of the existence of the Good Reason
Event no later than 90 days after its initial existence, (B) the Company
has not remedied such Good Reason Event in all material respects within 30 days
after its receipt of such written notice, and (C) Executive terminated
employment within one year following the initial existence of such Good Reason
Event.  A termination in such circumstances shall be treated as a
Company termination without Cause and Executive shall be entitled to the
payments and benefits provided in Section 5(d).

     

    (f)           No Other Payments or
Benefits.  Except as otherwise expressly provided in this
Agreement, (i) after the Termination Date Executive will not be entitled to
any payments from the Company and (ii) on the Termination Date Executive’s
participation in and coverage under the Company’s benefit programs (including
the ATC Retirement Savings Plan (i.e., the 401(k) plan) and the Company’s group
life and disability insurance plans) shall cease; provided that Executive shall
retain any right to convert to individual coverage as permitted under these
insurance plans and to any vested benefits under the 401(k) plan and the
Company’s stock incentive plans.

     

    
      
         

      

      
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    (g)           Withholding.  Any
amounts payable under this Section 5 shall be subject to standard
withholdings for taxes and social security and the like.

     

    (h)           Payments to a Specified
Employee.  If Executive is a “specified employee” of the
Company (as defined in Treasury Regulation Section 1.409A-1(i))
and

     

    (i)           if
amounts payable under this Section 5 are on account of an “involuntary
separation from service” (as defined in Treasury Regulation
Section 1.409A-1(m)) and if all amounts payable under this Section 5
will not be paid on or before March 15th of the year immediately following
the Termination Date, then the amounts payable during the six-month period
immediately following the Termination Date shall equal the lesser of
(A) the amount otherwise payable under this Section 5 for such
six-month period or (B) two times the compensation limit in effect under
IRC Section 401(a)(17) for the calendar year in which the Termination Date
occurs, and any amounts that otherwise would have been payable under this
Section 5 during such six-month period shall be paid on the first regular
payroll date following the end of such six-month period; or

     

    (ii)           if
the Company reasonably determines that such termination is not an “involuntary
separation from service” (as defined in Treasury Regulation
Section 1.409A-1(m)), amounts that would otherwise have been paid during
the six-month period immediately following the Termination Date (including any
lump sum payments) shall be paid on the first regular payroll date immediately
following the end of such six-month period.

     

    (i)           IRC
Section 409A.  Notwithstanding anything in this Agreement
to the contrary, in the event that any amounts payable (or benefits provided)
under this Agreement are subject to the provisions of IRC Section 409A, to
the extent determined necessary, the parties agree to amend this Agreement in
the least restrictive manner necessary to avoid imposition of any additional tax
or income recognition on Executive under IRC Section 409A and the Treasury
Regulations and Internal Revenue Service guidance thereunder.

     

    (j)           Definitions.

     

    (i)           “Cause”
means the occurrence or existence of any of the following with respect to
Executive, as determined by the Board in its sole discretion:

     

    (A)           a
material breach by Executive of (x) Executive’s duty not to engage in any
transaction that represents, directly or indirectly, self-dealing with the
Company or any of its affiliates that has not been approved by the Company, or
(y) the terms of Executive’s employment, if in any such case such material
breach remains uncured after the lapse of 30 days following the date that the
Company has given Executive written notice thereof;

     

    (B)           the
material breach by Executive of any duty referred to in clause (A) above as
to which at least one written notice has been given pursuant to clause
(A);

     

    
      
         

      

      
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    (C)           any
act of misappropriation, embezzlement, fraud, material dishonesty or similar
conduct with respect to the Company or any of its affiliates;

     

    (D)           the
conviction or the plea of nolo contendere or the equivalent in respect of a
felony involving moral turpitude;

     

    (E)           any
intentional damage of a material nature to any property of the Company or any of
its affiliates;

     

    (F)           the
repeated non-prescription use of any controlled substance or the repeated use of
alcohol or any other non-controlled substance that, in the reasonable
determination of the Company, renders Executive unfit to serve as an employee of
the Company; or

     

    (G)           material
failure to perform Executive’s duties in a reasonably satisfactory manner where
such failure has continued for 30 days following written notice thereof;
provided, however, that this Section 5(j)(i)(G) shall cease to be of effect upon
and after a Change in Control.

     

    (ii)           “Change
in Control” means the first to occur of the following:

     

    (A)           any
sale or transfer or other conveyance, whether direct or indirect, of all or
substantially all of the assets of ATC, on a consolidated basis, in one
transaction or a series of related transactions, unless, immediately after
giving effect to such transaction, at least 85% of the total voting power
normally entitled to vote in the election of directors, managers or trustees, as
applicable, of the transferee is “beneficially owned” by persons who,
immediately prior to the transaction, beneficially owned 100% of the total
voting power normally entitled to vote in the election of directors of
ATC;

     

    (B)           any
Person or Group is or becomes the “beneficial owner,” directly or indirectly, of
more than 35% of the total voting power in the aggregate of all classes of
capital stock of ATC then outstanding normally entitled to vote in elections of
directors;

     

    (C)           during
any period of 12 consecutive months, individuals who at the beginning of such
12-month period constituted the Board (together with any new directors whose
election by the Board or whose nomination for election by the shareholders of
ATC was approved by a vote of a majority of the directors then still in office
who were either directors at the beginning of such period or whose election or
nomination for election was previously so approved) cease for any reason to
constitute a majority of the Board then in office; or

     

    (D)           a
reorganization, merger or consolidation of ATC the consummation of which results
in the outstanding securities of any class of ATC’s capital stock being
exchanged for or converted into cash, property and/or a different kind of
securities, unless, immediately after giving effect to such transaction, at
least 85% of the total voting power normally entitled to vote in the election of
directors, managers or trustees, as applicable, of the entity surviving or
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    or
consolidation is “beneficially owned” by persons who, immediately prior to the
transaction, beneficially owned 100% of the total voting power normally entitled
to vote in the election of directors of ATC.

     

    (iii)           “Earned
Benefits” means any (A) bonus that is payable to Executive under the IC
Plan with respect to the calendar year preceding the Termination Year but that
has not been paid prior to the Termination Date, (B) vacation time that has
accrued as of the Termination Date, and (C) other entitlements to cash
payments that have accrued as of the Termination Date.

     

    (iv)           “IC
Plan” means any of the Company’s annual incentive compensation plans (or similar
plans instituted in place of the annual incentive compensation
plans).

     

    (v)           “IRC”
means the Internal Revenue Code.

     

    (vi)           “LTIP”
means any of the Company’s long-term incentive plans (or similar plans
instituted in place of the long-term incentive plans) that are in effect as of
the Termination Date, and “LTIP Period” means, with respect to any LTIP, the
period of time over which such LTIP is measured (e.g., the three years ending
December 31, 2010 in the case of the 2008-2010 LTIP).

     

    (vii)           “Person”
and “Group” have the meanings used for purposes of Sections 13(d) and 14(d)
of the Securities Exchange Act of 1934, whether or not such sections apply to
the transaction in question.

     

    (viii)                      “Pro
Forma Bonus” means the sum of

     

    (A)           the
product of (x) the greater of (1) Executive’s bonus that would be
payable under the IC Plan for the Termination Year based on the Company’s
projected performance for the Termination Year, such projection to be calculated
from the Company’s performance for the portion of the Termination Year that is
completed prior to the Termination Date, or (2) Executive’s target bonus
under the IC Plan for the Termination Year, multiplied by (y) a fraction
(1) the numerator of which is the number of days that have elapsed in the
Termination Year through the Termination Date and (2) the denominator of
which is 365, plus

     

    (B)           the
product of (x) the greater of (1) Executive’s cash award component
that would be payable under each LTIP based on the Company’s projected
performance for the LTIP Period, such projection to be calculated from the
Company’s performance for the portion of the LTIP Period that is completed prior
to the Termination Date, or (2) Executive’s target bonus under each LTIP,
multiplied by (y) a fraction (1) the numerator of which is the number
of days starting January 1 of the first year of each LTIP Period (e.g.,
January 1, 2008 in the case of the 2008-2010 LTIP) through the Termination
Date and (2) the denominator of which is 1,095.

     

    (ix)           “Termination
Year” means the calendar year in which the Termination Date occurs.

     

    
      
         

      

      
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    6.           Excise
Tax Gross-Up Payment.  If Executive’s
employment is terminated by the Company without Cause within 18 months after a
Change in Control and Executive becomes subject to the excise tax imposed by IRC
Section 4999 (the “Parachute Excise Tax”) with respect to any amounts paid
or payable to Executive under this Agreement, then the Company and Executive
agree that:

     

    (a)           If
the aggregate of all “parachute payments” (as such term is used under IRC
Section 280G) does not exceed 320% of the “base amount” (as such term is
used under IRC Section 280G), then the parachute payment shall be reduced
to 299.99% of such  base amount;

     

    (b)           If
the aggregate of all parachute payments exceeds 320% of the base amount, then
the Company shall pay to Executive a tax gross-up payment so that after payment
by or on behalf of Executive of all federal, state and local excise, income,
employment, Medicare and any other taxes (including any related penalties and
interest) resulting from the payment of the parachute payments and the tax
gross-up payments to Executive by the Company, Executive retains on an after-tax
basis an amount equal to the amount that Executive would have retained if
Executive had not been subject to the Parachute Excise Tax;

     

    (c)           The
computation of the excess parachute payment in accordance with IRC
Section 280G shall be done by a nationally recognized and reputable
independent accounting or valuation firm selected and paid for by the
Company.

     

    (d)           Executive
shall notify the Company in writing of any claim by the Internal Revenue Service
that, if successful, would require the payment by the Company of any tax
gross-up payments.  Such notification shall be given as soon as
practicable but no later than ten business days after Executive is informed in
writing of such claim and shall apprise the Company of the nature of such claim
and the date on which such claim is requested to be paid.  Executive
shall not pay such claim prior to the expiration of the 30-day period following
the date on which Executive gives such notice to the Company (or such shorter
period ending on the date that any payment of taxes with respect to such claim
is due).  If the Company notifies Executive in writing prior to the
expiration of such period that it desires to contest such claim, Executive
shall:

     

    (i)           give
the Company any information reasonably requested by the Company relating to such
claim,

     

    (ii)           take
such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation,
accepting legal representation with respect to such claim by an attorney
reasonably selected by the Company,

     

    (iii)           cooperate
with the Company in good faith in order effectively to contest such claim,
and

     

    (iv)           permit
the Company to participate in any proceedings relating to such
claim;

     

    
      
         

      

      
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    provided,
however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such
contest and shall indemnify and hold Executive harmless, on an after-tax basis,
for any excise tax or income tax (including interest and penalties with respect
thereto) imposed as a result of such representation and payment of costs and
expenses.  Without limitation on the foregoing provisions of this
Section 6, the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
Executive to pay the tax claimed and sue for a refund or contest the claim in
any permissible manner, and Executive agrees to prosecute such contest to a
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs Executive to pay such
claim and sue for a refund, the Company shall advance the amount of such payment
to Executive, on an interest-free basis and shall indemnify and hold Executive
harmless, on an after-tax basis, from any excise tax or income tax (including
interest or penalties with respect thereto) imposed with respect to such advance
or with respect to any imputed income with respect to such advance; and further
provided that any extension of the statute of limitations relating to payment of
taxes for the taxable year of Executive with respect to which such contested
amount is claimed to be due is limited solely to such contested
amount.  Furthermore, the Company’s control of the contest shall be
limited to issues with respect to which a gross-up payment would be payable
hereunder and Executive shall be entitled to settle or contest, as the case may
be, any other issue raised by the Internal Revenue Service or any other taxing
authority.

     

    (e)           If,
after the receipt by Executive of an amount advanced by the Company pursuant to
this Section 6, Executive becomes entitled to receive any refund with
respect to such claim, Executive shall (subject to the Company’s complying with
the requirements of this Section 6) promptly pay to the Company the amount
of such refund (together with any interest paid or credited thereon after taxes
applicable thereto).  If, after the receipt by Executive of an amount
advanced by the Company pursuant to this Section 6, a determination is made
that Executive shall not be entitled to any refund with respect to such claim
and the Company does not notify Executive in writing of its intent to contest
such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of gross-up payment required to be paid.

     

    7.           Proprietary
Information Obligations.  Prior to and/or during the term of
employment under this Agreement, Executive has had and/or will have access to
and has become and/or will become acquainted with the confidential and
proprietary information of the Business (as defined in Section 9) and the
Company and its affiliates and customers, including but not limited to
confidential and proprietary information or plans regarding customer
relationships; personnel; sales, marketing, and financial operations and
methods; trade secrets; formulas; devices; secret inventions; processes and
other compilations of information, records, and specifications (collectively
“Proprietary Information”).  Executive shall not disclose any of the
Proprietary Information directly or indirectly, or use it in any way, either
during the term of this Agreement, or at any time thereafter, except as required
in the course of employment hereunder or as authorized in writing by the
Company.  All files, records, documents, computer-recorded
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    relating
to the Business or the Company or its affiliates, whether prepared by Executive
or otherwise coming into Executive’s possession prior to or during the term of
this Agreement, shall remain the exclusive property of the Company or such
affiliate or customer and shall not be removed from the premises of the Company
or its affiliate under any circumstances whatsoever without the prior written
consent of the Company, except when (and only for the period) necessary to carry
out Executive’s duties hereunder, and if removed shall be immediately returned
upon any termination of Executive’s employment and no copies thereof shall be
kept by Executive.

     

    8.           Noninterference.  While
employed by the Company and for a period of 36 months thereafter, Executive
shall not, without the prior written consent of the Company, interfere with the
Company by directly or indirectly soliciting, attempting to solicit, inducing,
or otherwise causing or assisting any person who is then employed by the Company
to terminate such employment in order to become an employee, consultant or
independent contractor to or for any employer other than the
Company.

     

    9.           Noncompetition.  Executive
agrees that during his employment with the Company and for a period of 24 months
thereafter, Executive will not, without the prior consent of the Company,
directly or indirectly, have an interest in, be employed by, be connected with,
or have an interest in (as an employee (whether full-time, part-time or
temporary), consultant, officer, director, partner, stockholder, joint venturer,
promoter or lender), any person or entity owning, managing, controlling,
operating or otherwise participating or assisting in any business that is either
(a) similar to the Business (or any portion thereof) and would benefit from
the disclosure of the Company’s trade secrets or (b) in competition with
the Business (or any portion thereof) in any of the 50 states in the United
States of America; provided, however, that the foregoing shall not prevent
Executive from being a stockholder of less than 1% of the issued and outstanding
securities of any class of a corporation listed on a national securities
exchange or designated as national market system securities on an interdealer
quotation system by the National Association of Securities Dealers,
Inc.  Without limiting the generality of the foregoing, a business
will be deemed to be in competition with the Business at a given point in time
if any of the customers of such business were customers of the Business at any
time during the 18 months preceding the time in question.  As used
herein, “Business” means the Company’s businesses of remanufacturing and
distributing drive train and electronic products used in the repair of vehicles,
and providing value-added warehouse, distribution and order fulfillment
services, return material reclamation and disposition services, and electronic
equipment testing and refurbishment and repair services.

     

    10.           Remedies.  Executive
acknowledges that a breach or threatened breach by Executive of any the
provisions of Sections 7, 8 or 9 will result in the Business and the
Company and its affiliates suffering irreparable harm that cannot be calculated
or fully or adequately compensated by recovery of damages
alone.  Accordingly, Executive agrees that the Company shall be
entitled to interim, interlocutory and permanent injunctive relief, specific
performance and other equitable remedies, in addition to any other relief to
which the Company may become entitled should there be such a breach or
threatened breach.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    11.           Miscellaneous.

     

    (a)           Notices.  Any
notices provided hereunder must be in writing and shall be deemed effective upon
the earlier of (i) personal delivery (including personal delivery by
telecopy, if a copy is sent by mail or overnight delivery), (ii) the
business day following being sent through an overnight delivery service, or
(iii) the third business day after mailing by first class mail to the
recipient at the address indicated below:

    

      
      

      
        To the
Company:

         

      

      ATC
Technology Corporation

      1400 Opus
Place, Suite 600

      Downers
Grove, IL 60515

      Attention:  General
Counsel

      Facsimile:
 (630) 663-8221

       

      
        To
Executive:

      

      
      

      

      Todd R.
Peters

      12570
Buno Road

      Milford,
Michigan  48380

    

    
    

    
    

    
    

    
    

     

    or to
such other address or to the attention of such other person as the recipient
party will have specified by prior written notice to the sending
party.

     

    (b)           Severability.  The
provisions of this Agreement are severable and, if any court of competent
jurisdiction determines that any provision contained in this Agreement shall,
for any reason, be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provision
of this Agreement, and this Agreement shall be reformed and construed so that
such invalid or illegal or unenforceable provision would be valid, legal and
enforceable to the maximum extent possible.

     

    (c)           Entire
Agreement.  This Agreement constitutes the full and complete
understanding and agreement of the parties with respect to the subject matter
hereof and supersedes all prior oral and written and contemporaneous oral
understandings and agreements with respect to the subject matter hereof,
including, without limitation, that certain Executive Employment Agreement dated
as of March 9, 2004 between ATC and Executive, which shall be of no further
force and effect as of the date of this Agreement.

     

    (d)           Counterparts.  This
Agreement may be executed on separate counterparts, any one of which need not
contain signatures of more than one party, but all of which taken together will
constitute one and the same agreement.

     

    (e)           Successors and
Assigns.  This Agreement shall bind and inure to the benefit of
and be enforceable by Executive and the Company, and their respective successors
and assigns, except that Executive may neither delegate any of Executive’s
duties hereunder nor assign any of Executive’s rights hereunder without the
prior written consent of the Company.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (f)           Amendments; No
Waivers.  Any provision of this Agreement may be amended or
waived if such amendment or waiver is in writing and signed, in the case of an
amendment, by all parties hereto, and in the case of a waiver, by the party
against whom the waiver is to be effective.  No waiver by a party of
any breach of this Agreement shall be deemed to extend to any prior or
subsequent breach or affect in any way any rights arising by virtue of any prior
or subsequent breach.  No failure or delay by a party in exercising
any right, power or privilege hereunder shall operate as a waiver thereof nor
shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or
privilege.  The rights and remedies herein provided shall be
cumulative and not exclusive of any rights or remedies provided by
law.

     

    (g)           Governing Law and
Venue.  This Agreement shall be governed by and construed and
enforced in accordance with the internal laws (without reference to choice or
conflict of laws) of the State of Illinois.  The parties to this
Agreement hereby irrevocably consent to the exclusive venue and jurisdiction of
the state and federal courts sitting in the State of Illinois for any matter or
controversy concerning either the existence or enforcement of this Agreement and
hereby waive any contention that Illinois is an improper or inconvenient
forum.

     

    (h)           Construction.  The
captions herein are included for convenience of reference
only and shall be ignored in the construction or interpretation
hereof.  Neither party hereto, nor its respective counsel, shall be
deemed the drafter of this Agreement, and all provisions of this Agreement shall
be construed in accordance with their fair meaning, and not strictly for or
against either party hereto.

     

    (i)           Attorney’s
Fees.  If any legal proceeding is necessary to enforce or
interpret the terms of this Agreement, or to recover damages for breach
therefore, the prevailing party shall be entitled to reasonable attorney’s fees,
as well as costs and disbursements, in addition to any other relief to which
such party may be entitled.

     

    

      IN
WITNESS WHEREOF, the parties have executed this Agreement effective as of the
date first above written.

       

      
        	
                EXECUTIVE:

              
	 
      
	
                /s/
      Todd R. Peters

              
	
                Todd
      R. Peters

                 

              
	
                ATC
      TECHNOLOGY CORPORATION

              
	 
      
	
                By:

              	
                /s/
      Joseph Salamunovich

              
	
                Joseph
      Salamunovich

                Vice
      President

              

      

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    EXHIBIT A

     

    GENERAL
RELEASE

     

    THIS
GENERAL RELEASE is entered into by the undersigned (“Employee”) as of the date
appearing next to Employee’s signature hereto.  Employee agrees as
follows:

     

    1.           Termination
of Employment.  Employee’s employment with ATC Technology
Corporation and/or one of its subsidiaries (ATC and its subsidiaries being
referred to collectively as the “Company”) is being terminated and the Company
will provide Employee with certain benefits upon the termination of employment
provided that, among other things, Employee executes and delivers this General
Release.

     

    2.           General
Release.  Employee hereby

     

    (a)           releases
and discharges the Company and its officers, directors, employees, benefit plan
administrators and trustees, and agents (collectively, the “Released Parties”)
from any and all claims, liabilities, demands and causes of action, whether
known or unknown, fixed or contingent, that Employee may have or claim to have
against any of the Released Parties relating to, or arising out of, Employee’s
employment with the Company or the termination thereof, and

     

    (b)           covenants
not to initiate or participate in (except pursuant to a lawful subpoena) any
lawsuit or other legal proceeding asserting any such claims, liabilities,
demands or causes of action.

     

    This
General Release shall be broadly construed to include, but not be limited to,
all claims under any federal, state, or local laws, statutes, regulations, or
ordinances (including those prohibiting employment discrimination, such as the
federal Age Discrimination in Employment Act), and all claims in contract or
tort including, but not limited to, claims for breach of contract, negligence,
defamation, and wrongful or retaliatory discharge.  This General
Release does not include any claim Employee may have based upon facts occurring
after the date that Employee executes this General Release.

     

    3.           Knowing and
Voluntary.  Employee acknowledges and agrees that:
(a) Employee has read and understands this General Release in its entirety;
(b) Employee has been advised in writing to consult with an attorney
concerning this General Release before signing it; (c) Employee has 21
calendar days after receipt of this General Release to consider its terms before
signing it; (d) Employee has the right to revoke this General Release in
full within seven calendar days of signing it and that none of the terms and
provisions of this General Release shall become effective or be enforceable
until such revocation period has expired; (e) nothing contained in this
General Release waives any claim that may arise after the date of its execution;
and (f) Employee is executing this General Release knowingly and
voluntarily, without duress or reservation of any kind, and after giving the
matter full and careful consideration.

     

    IN
WITNESS WHEREOF, the undersigned has executed this General Release as of the
date set forth below.

     

    
      	
               

               

               

              Executed: _______________________,
      20__

            	
              EMPLOYEE:

               

               

              __________________________________________________________

              [NAME]exhibit10_2.htm

    EXHIBIT
10.2

     

    

    EXECUTIVE EMPLOYMENT AGREEMENT

     

    This
Executive Employment Agreement (this "Agreement") is entered into as of
January 1, 2009 by and between Donald T. Johnson Jr., a natural person
("Executive"), and ATC Technology Corporation, a Delaware corporation
(“ATC”).  As used herein, the “Company” refers to ATC and/or any
subsidiary of ATC.  The parties hereto agree as follows:

     

    1.         Employment.

     

    (a)         Best
Efforts.  Subject to the terms set forth herein, the Company
agrees to employ Executive as Chairman of ATC and Executive hereby accepts such
employment.  While employed by the Company, Executive will devote his
best efforts and such time as is necessary to the performance of his duties
hereunder and to the business and affairs of ATC and its subsidiaries and will
not be employed by any other employer (other than an employer owned at least
50.1% by Executive), although Executive may serve on other boards of directors
so long as such service does not create a conflict of interest with the
Company.

     

    (b)         Duties.  Executive
shall perform such duties for the Company as are customarily associated with the
position of Chairman, consistent with the Bylaws of the Company and as required
by the Board of Directors of ATC.

     

    (c)         Company
Policies.  The employment relationship between the parties
shall be governed by the general employment policies and practices of the
Company, except that when the terms of this Agreement differ from or are in
conflict with such employment policies and practices, this Agreement shall
control.

     

    2.         Compensation and
Benefits.

     

    (a)         Salary.  Executive
shall receive for services to be rendered hereunder a base salary of $236,274
payable on the Company’s regular payroll dates, subject to standard withholdings
for taxes and social security and the like.

     

    (b)         Incentive
Plans.  Executive shall not participate in any of the Company’s
incentive plans, provided that nothing in this Agreement shall affect
Executive’s previously established participation in the 2008 Incentive
Compensation Plan or the cash award component of the 2008-2010 Long-Term
Incentive Plan.

     

    (c)         Participation in Benefit
Plans.  While employed by the Company, Executive shall be
entitled to participate in any group medical, dental, health and accident,
disability insurance, life insurance (at a minimum of $1.5 million in
Company-paid coverage), retirement income, deferred compensation or similar plan
or program of the Company to the extent that he is eligible under the general
provisions thereof.  The Company may, in its discretion and from time
to time, establish additional management benefit programs as it deems
appropriate.  Executive understands that any such plans may be
modified or eliminated in the Company's discretion in accordance with applicable
law.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    3.         Perquisites.

     

    (a)         Financial Planning/Club Dues
Allowance.  Executive shall be entitled to a financial
planning/club dues allowance of $8,438, subject to applicable
withholding.

     

    (b)         Automobile.  Executive
shall be entitled to an automobile allowance of $10,126, subject to applicable
withholding.

     

    4.         Business
Expenses.  Executive shall
be reimbursed for documented and reasonable business travel expenses in
connection with the performance of his duties hereunder.

     

    5.         Termination
of Employment.  The date on which
Executive's employment by the Company ceases, under any of the circumstances
provided in Section 5(a)-(g), shall be defined herein as the "Termination
Date."  All capitalized terms used in this Section 5 without
definition will have the meanings set forth in Section 5(l).

     

    (a)         End of Employment
Term.  Unless terminated earlier pursuant to
Section 5(b)-(g), Executive’s employment will terminate on June 3,
2009.  Within ten business days after the Termination Date, Executive
shall receive payment for all accrued salary through the Termination Date and
the Earned Benefits.  Executive shall also receive the LTIP
Payment.  Except as provided above, no compensation of any kind or
severance payment will be payable under this Agreement due to a termination
pursuant to this Section 5(a), except that if a Change in Control occurs
prior to Executive’s termination pursuant to this Section 5(a), such
termination shall be treated as a Company termination without Cause and
Executive shall be entitled to the payments and benefits provided in
Section 5(f).

     

    (b)         Termination for
Cause.  The Company may terminate Executive's employment at any
time for Cause immediately upon written notice to Executive of the circumstances
leading to such termination for Cause.  If Executive's employment is
terminated for Cause, Executive shall receive payment for all accrued salary
through the Termination Date (which in this event shall be the date upon which
notice of termination is given) and the Earned Benefits.  The Company
shall have no obligation to pay severance of any kind nor to make any payment in
lieu of notice if Executive is terminated for Cause.

     

    (c)         Voluntary
Termination.  Executive may voluntarily terminate his
employment with the Company at any time upon 90 days’ prior written
notice.  Within ten business days after the Termination Date,
Executive shall receive payment for all accrued salary through the Termination
Date and the Earned Benefits, after which no further compensation of any kind or
severance payment will be payable under this Agreement.  If the Board
determines that Executive has provided all services and cooperation required by
the Board to transition Executive’s position to a successor (regardless of
whether an orderly transition has actually occurred), Executive shall also
receive the LTIP Payment.

     

    (d)         Termination Upon
Death.  Executive’s employment will terminate upon his
death.  Within ten business days after the Termination Date,
Executive’s Beneficiary shall receive payment for all accrued salary through the
Termination Date and the Earned Benefits.  Executive’s Beneficiary
shall also receive the LTIP Payment.  Except as provided above, no
compensation of any kind or severance payment will be payable under this
Agreement due to a termination pursuant to this
Section 5(d).

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (e)         Termination Upon
Disability.  The Company may terminate Executive's employment
in the event Executive suffers a disability that renders Executive unable to
perform the essential functions of his position, even with reasonable
accommodation in compliance with the Americans with Disabilities Act, for three
consecutive months.  A termination in such circumstances shall be
treated as a Company termination without Cause and Executive shall be entitled
to the payments and benefits provided in Section 5(f) and
Section 5(i)(i).  The foregoing shall not affect any rights that
Executive may have under applicable workers’ compensation laws or any disability
plan of the Company.

     

    (f)         Termination Without
Cause.  The Company may terminate Executive's employment
without Cause at any time upon 30 days’ prior written notice.  Within
ten business days after the Termination Date, Executive shall receive payment
for all accrued salary through the Termination Date and the Earned
Benefits.  Executive shall also receive the LTIP
Payment.  In addition, the Company shall pay Executive as severance
$1,120,000 (i.e., 200% of Executive’s annualized base
salary).  Subject to Section 11, the severance shall be paid in
equal installments on each of the Company’s regular payroll dates during the
two-year period following the Termination Date, unless the Termination Date
occurs after a Change in Control, in which case the severance will be paid in a
single lump sum within ten business days after the Termination
Date.  The Company will pay up to $25,000 of the cost of an
executive level individualized career transition program through a professional
outplacement firm mutually selected by the Company and the Executive if such
program is initiated within 30 days after the Termination Date.  If
Executive dies after the Termination Date, the payment or payments due
thereafter under this Section 5(f) shall be made to Executive’s Beneficiary
but the career transition benefits shall terminate as of the date of
death.  As a condition to receiving the payments and benefits provided
by this Section 5(f) (other than payment for all accrued salary through the
Termination Date and the Earned Benefits, which shall be payable in any case),
Executive shall execute and deliver to the Company on the Termination Date a
general release in the form attached hereto as Exhibit A.

     

    (g)         Fundamental
Changes.  If the Company (i) materially diminishes
Executive's duties, authority, responsibility or compensation without
performance justification, or (ii) breaches this Agreement in any material
respect, Executive may terminate his employment, provided that Executive has
given the Company 30 days’ written notice prior to such termination and the
Company has not cured such diminution or breach, as the case may be, by the end
of such 30-day period.  A termination in such circumstances shall be
treated as a Company termination without Cause and Executive shall be entitled
to the payments and benefits provided in Section 5(f) and
Section 5(i)(i).

     

    (h)         Medical
Coverage.  Except in the case of Executive’s death or
termination for Cause, until the fifth anniversary of the Termination Date (such
five-year period being the “Coverage Period”) the Company will provide continued
medical-related insurance coverage to Executive and his spouse at the levels and
at the rates applicable from time to time to comparable active employees and
spouses of the Company.  Medical-related insurance coverage includes
health, dental, vision and/or cancer.  COBRA continuation coverage
eligibility shall commence as of the day following the end of the Coverage
Period.  Notwithstanding the above, coverage under each of these plans
shall cease on the date (i) Executive (or his 

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    spouse in
the event Executive dies during the Coverage Period) fails to pay timely the
premium required by such plan, (ii) Executive (or his spouse in the event
Executive dies during the Coverage Period) becomes eligible for coverage under
Medicare or the group health plan of any other employer, or (iii) the
Company terminates such plan as to all its employees, provided, however, that if
the Company terminates such plan, the Company shall make a lump sum payment to
Executive (or to his spouse in the event Executive dies during the Coverage
Period) equal to (x) the Company’s contribution to such plan with respect
to Executive and his spouse (or just his spouse if Executive is then no longer
alive) for the last full month during which coverage was provided under such
plan multiplied by (y) the number of months remaining in the Coverage
Period.

     

    (i)         Vesting of Restricted Stock
and Stock Options.  All of Executive’s restricted stock and
unvested stock options that are outstanding as of the Termination Date will be
treated as follows following the Termination Date:

     

    (i)         In
the case of termination pursuant to Section 5(a) or Company termination
without Cause, such restricted stock and unvested options will continue to vest
after the Termination Date according to their vesting schedules notwithstanding
the fact that Executive has ceased to be an employee of the
Company.

     

    (ii)         In
the case of Executive’s death, such restricted stock and unvested options shall
fully vest as of the Termination Date.

     

    (iii)                 In
the case of voluntary resignation, such restricted stock and unvested options
will terminate on the Termination Date unless the Board determines that
Executive has provided prior to the termination of Executive’s employment all
services and cooperation required by the Board to transition Executive’s
position to a successor (regardless of whether an orderly transition has
actually occurred), in which case such restricted stock and unvested options
will continue to vest after the Termination Date according to their vesting
schedules notwithstanding the fact that Executive has ceased to be an employee
of the Company.

     

    (iv)                 In
the case of termination for Cause, restricted stock and unvested options will
terminate on the Termination Date.

     

    (v)         Except
in the case of termination for Cause, options that are vested as of the
Termination Date or subsequently vest pursuant to this Section 5(i) shall
remain in effect and be exercisable until the tenth anniversary of the date of
grant.

     

    (j)         No Other Payments or
Benefits.  Except as otherwise expressly provided in this
Agreement, (i) after the Termination Date Executive will not be entitled to
any payments from the Company and (ii) on the Termination Date Executive’s
participation in and coverage under the Company’s benefit programs (including
the ATC Retirement Savings Plan (i.e., the 401(k) plan) and
the Company’s group life and disability insurance plans) shall cease; provided
that Executive shall retain any right to convert to individual coverage as
permitted under these insurance plans and to any vested benefits under the
401(k) plan and the Company’s stock option plans.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    (k)         Withholding.  Any
amounts payable under this Section 5 shall be subject to standard withholdings
for taxes and social security and the like.

     

    (l)         Definitions.

     

    (i)         “Beneficiary” means a person,
trust or other entity (or any combination thereof) designated from time to time
by Executive in writing to receive compensation payable hereunder following
Executive’s death.  In the event Executive does not designate a
Beneficiary or there is no surviving Beneficiary, then Executive’s estate will
be the Beneficiary.

     

    (ii)         "Cause" means the occurrence
or existence of any of the following with respect to Executive, as determined by
the Company in its sole discretion:

     

    (A)                   a
material breach by Executive of (x) his duty not to engage in any
transaction that represents, directly or indirectly, self-dealing with the
Company or any of its affiliates that has not been approved by the Company, or
(y) the terms of this Agreement, if in any such case such material breach
remains uncured after the lapse of 30 days following the date that the Company
has given Executive written notice thereof;

     

    (B)                   the
material breach by Executive of any duty referred to in clause (A) above as to
which at least one written notice has been given pursuant to
clause (A);

     

    (C)                   any
act of dishonesty, misappropriation, embezzlement, intentional fraud or similar
conduct involving the Company or any of its affiliates;

     

    (D)                   the
conviction or the plea of nolo contendere or the equivalent in respect of a
felony involving moral turpitude;

     

    (E)         any
intentional damage of a material nature to any property of the Company or any of
its affiliates; or

     

    (F)         the
repeated non-prescription use of any controlled substance or the repeated use of
alcohol or any other non-controlled substance that, in the reasonable
determination of the Company renders Executive unfit to serve in his capacity as
an employee of the Company or its affiliates.

     

    (iii)                 “Change in Control” means the
first to occur of the following:

     

    (A)                   any
sale or transfer or other conveyance, whether direct or indirect, of all or
substantially all of the assets of the Company, on a consolidated basis, in one
transaction or a series of related transactions, unless, immediately after
giving effect to such transaction, at least 85% of the total voting power
normally entitled to vote in the election of directors, managers or trustees, as
applicable, of the transferee is “beneficially owned” by persons who,
immediately prior to the transaction, beneficially owned 100% of the total
voting power normally entitled to vote in the election of directors of the
Company;

     

    (B)                   any
Person or Group is or becomes the "beneficial owner," directly or indirectly, of
more than 35% of the total voting power in the aggregate of all classes of
capital stock of the Company then outstanding normally entitled to vote in
elections of directors;

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (C)                   during
any period of 12 consecutive months, individuals who at the beginning of such
12-month period constituted the Company’s Board of Directors (together with any
new directors whose election by such Board or whose nomination for election by
the shareholders of the Company was approved by a vote of a majority of the
directors then still in office who were either directors at the beginning of
such period or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of the Company’s Board
of Directors then in office; or

     

    (D)                   a
reorganization, merger or consolidation of the Company the consummation of which
results in the outstanding securities of any class of the Company’s capital
stock being exchanged for or converted into cash, property and/or a different
kind of securities, unless, immediately after giving effect to such transaction,
at least 85% of the total voting power normally entitled to vote in the election
of directors, managers or trustees, as applicable, of the entity surviving or
resulting from such reorganization, merger or consolidation is “beneficially
owned” by persons who, immediately prior to the transaction, beneficially owned
100% of the total voting power normally entitled to vote in the election of
directors of the Company.

     

    (iv)                 “Earned Benefits” means any
(A) bonus that is payable to Executive pursuant to the terms of the 2008
Incentive Compensation Plan that has not been paid prior to the Termination
Date, (B) vacation time that has accrued prior to 2009 and has not been
used or paid as of the Termination Date, (C) other entitlements to cash
payments that have accrued and not been paid as of the Termination Date, and (D)
deferred compensation earned by Executive prior to
termination.  Notwithstanding other provisions of this Agreement
regarding the timing of payment of Earned Benefits, (x) the 2008 Incentive
Compensation Plan bonus will not be paid until the completion of the Company’s
audited consolidated financial statements for 2008, and (y) deferred
compensation will be paid as provided in the Company’s deferred compensation
plan.

     

    (v)         “LTIP Payment” means the
amount, if any, that would have been payable to Executive under the cash award
component of the 2008-2010 Long-Term Incentive Plan if he had remained employed
by the Company through December 31, 2010 multiplied by a fraction
(x) the numerator of which is the number of days starting January 1,
2008 through the Termination Date and (y) the denominator of which is the
number of days in the 2008-2010 Long-Term Incentive Plan.  The LTIP
Payment will be payable upon the completion of the Company’s audited
consolidated financial statements for 2010.

     

    (vi)                 “Person” and “Group” have the meanings
used for purposes of Sections 13(d) and 14(d) of the Securities Exchange Act of
1934, as amended, whether or not such sections apply to the transaction in
question.

     

    6.         Proprietary
Information Obligations.  Prior to and/or
while employed by the Company, Executive has had and/or will have access to and
has become and/or will become acquainted with the confidential and proprietary
information of the Business (as defined in Section 8) and the Company and
its affiliates, including but not limited to confidential and 

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    proprietary
information or plans regarding customer relationships; personnel; sales,
marketing, and financial operations and methods; trade secrets; formulas;
devices; secret inventions; processes and other compilations of information,
records, and specifications (collectively "Proprietary
Information").  Executive shall not disclose any of the Proprietary
Information directly or indirectly, or use it in any way, either while employed
by the Company, or at any time thereafter, except as required in the course of
his employment hereunder or as authorized in writing by the
Company.  All files, records, documents, computer-recorded
information, drawings, specifications, equipment and similar items relating to
the Business or the Company or its affiliates, whether prepared by Executive or
otherwise coming into his possession prior to or while employed by the Company,
shall remain the exclusive property of the Company or such affiliate and shall
not be removed from the premises of the Company or its affiliate under any
circumstances whatsoever without the prior written consent of the Company,
except when (and only for the period) necessary to carry out Executive's duties
hereunder, and if removed shall be immediately returned upon any termination of
his employment and no copies thereof shall be kept by Executive.

     

    7.         Noninterference.  While employed by
the Company and for a period of 36 months thereafter, Executive shall not,
without the prior written consent of the Company, interfere with the Company or
any of its affiliates by directly or indirectly soliciting, attempting to
solicit, inducing, or otherwise causing or assisting any person who is then
employed by the Company or any of its affiliates to terminate such employment in
order to become an employee, consultant or independent contractor to or for any
employer other than the Company or such affiliate.

     

    8.         Noncompetition.  Executive agrees
that while employed by the Company and during the 24 months after the
Termination Date, he will not, without the prior consent of the Company,
directly or indirectly, have an interest in, be employed by, be connected with,
or have an interest in (as an employee (whether full-time, part-time or
temporary), consultant, officer, director, partner, stockholder, joint venturer,
promoter or lender), any person or entity owning, managing, controlling,
operating or otherwise participating or assisting in any business that is either
(i) similar to the Business (or any portion thereof) and would benefit from
the disclosure of the Company’s trade secrets or (ii) in competition with
the Business (or any portion thereof) in any of the 50 states in the United
States of America; provided, however, that the foregoing shall not prevent
Executive from being a stockholder of less than 1% of the issued and outstanding
securities of any class of a corporation listed on a national securities
exchange or designated as national market system securities on an interdealer
quotation system by the National Association of Securities Dealers,
Inc.  Without limiting the generality of the foregoing, a business
will be deemed to be in competition with the Business at a given point in time
if any of the customers of such business were customers of the Business at any
time during the 18 months preceding the time in question.  As
used herein, “Business” means any and all of the businesses in which the Company
is engaged as of the Termination Date.

     

    9.         Remedies.  Executive
acknowledges that a breach or threatened breach by Executive of any the
provisions of Sections 6, 7 or 8 will result in the Business and the
Company and its affiliates suffering irreparable harm that cannot be calculated
or fully or adequately compensated by recovery of damages
alone.  Accordingly, Executive agrees that the Company shall be
entitled to interim, interlocutory and permanent injunctive relief, specific
performance and other equitable remedies, in addition to any other relief to
which the Company may become entitled should there be such a breach or
threatened breach.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    10.         Excise
Tax Gross-Up Payment.  If Executive’s
employment is terminated by the Company without Cause after a Change in Control
and Executive becomes subject to the excise tax imposed by Internal Revenue Code
(“Code”) Section 4999 (the “Parachute Excise Tax”) with respect to any amounts
paid or payable to Executive under this Agreement, then the Company and
Executive agree that:

     

    (a)         If
the aggregate of all “parachute payments” (as such term is used under Code
Section 280G) exceeds 300% of the “base amount” (as such term is used under Code
Section 280G), then the Company shall pay to Executive a tax gross-up payment so
that after payment by or on behalf of Executive of all federal, state and local
excise, income, employment, Medicare and any other taxes (including any related
penalties and interest) resulting from the payment of the parachute payments and
the tax gross-up payments to Executive by the Company, Executive retains on an
after-tax basis an amount equal to the amount that Executive would have retained
if Executive had not been subject to the Parachute Excise Tax; provided,
however, that the Company’s maximum tax gross-up payment under this
Section 10 shall not exceed $5,000,000.

     

    (b)         The
computation of the excess parachute payment in accordance with Code Section 280G
shall be done by a nationally recognized and reputable independent accounting or
valuation firm selected and paid for by the Company.

     

    (c)         Executive
shall notify the Company in writing of any claim by the Internal Revenue Service
that, if successful, would require the payment by the Company of any tax
gross-up payments.  Such notification shall be given as soon as
practicable but no later than ten business days after Executive is informed in
writing of such claim and shall apprise the Company of the nature of such claim
and the date on which such claim is requested to be paid.  Executive
shall not pay such claim prior to the expiration of the 30-day period following
the date on which Executive gives such notice to the Company (or such shorter
period ending on the date that any payment of taxes with respect to such claim
is due).  If the Company notifies Executive in writing prior to the
expiration of such period that it desires to contest such claim, Executive
shall:

     

    (i)         give
the Company any information reasonably requested by the Company relating to such
claim,

     

    (ii)         take
such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation,
accepting legal representation with respect to such claim by an attorney
reasonably selected by the Company,

     

    (iii)                 cooperate
with the Company in good faith in order effectively to contest such claim,
and

     

    (iv)                 permit
the Company to participate in any proceedings relating to such
claim;

     

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    provided,
however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such
contest and shall indemnify and hold Executive harmless, on an after-tax basis,
for any excise tax or income tax (including interest and penalties with respect
thereto) imposed as a result of such representation and payment of costs and
expenses.  Without limitation on the foregoing provisions of this
Section 10, the Company shall control all proceedings taken in connection with
such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
Executive to pay the tax claimed and sue for a refund or contest the claim in
any permissible manner, and Executive agrees to prosecute such contest to a
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs Executive to pay such
claim and sue for a refund, the Company shall advance the amount of such payment
to Executive, on an interest-free basis and shall indemnify and hold Executive
harmless, on an after-tax basis, from any excise tax or income tax (including
interest or penalties with respect thereto) imposed with respect to such advance
or with respect to any imputed income with respect to such advance; and further
provided that any extension of the statute of limitations relating to payment of
taxes for the taxable year of Executive with respect to which such contested
amount is claimed to be due is limited solely to such contested
amount.  Furthermore, the Company’s control of the contest shall be
limited to issues with respect to which a gross-up payment would be payable
hereunder and Executive shall be entitled to settle or contest, as the case may
be, any other issue raised by the Internal Revenue Service or any other taxing
authority.

     

    (d)         If,
after the receipt by Executive of an amount advanced by the Company pursuant to
this Section 10, Executive becomes entitled to receive any refund with respect
to such claim, Executive shall (subject to the Company’s complying with the
requirements of this Section 10) promptly pay to the Company the amount of such
refund (together with any interest paid or credited thereon after taxes
applicable thereto).  If, after the receipt by Executive of an amount
advanced by the Company pursuant to this Section 10, a determination is made
that Executive shall not be entitled to any refund with respect to such claim
and the Company does not notify Executive in writing of its intent to contest
such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of gross-up payment required to be paid.

     

    11.         Code
Section 409A.  Notwithstanding
anything in this Agreement or elsewhere to the contrary:

     

    (a)         If
payment or provision of any amount or other benefit that is “deferred
compensation” subject to Section 409A of the Code at the time otherwise
specified in this Agreement or elsewhere would subject such amount or benefit to
additional tax pursuant to Section 409A(a)(1)(B) of the Code, and if payment or
provision thereof at a later date would avoid any such additional tax, then the
payment or provision thereof shall be postponed to the earliest date on which
such amount or benefit can be paid or provided without incurring any such
additional tax.  In the event this Section 11 requires a deferral of
any payment, such payment shall be accumulated and paid in a single lump sum on
such earliest date without interest.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (b)         If
any payment or benefit permitted or required under this Agreement, or otherwise,
is reasonably determined by either party to be subject for any reason to a
material risk of additional tax pursuant to Section 409A(a)(1)(B) of the Code,
including when final regulations are issued thereunder, then the parties shall
negotiate in good faith on appropriate provisions to avoid such risk without
materially changing the economic value of this Agreement to either
party.

     

    12.         Miscellaneous.

     

    (a)         Notices.  Any
notices provided hereunder must be in writing and shall be deemed effective upon
the earlier of (i) personal delivery (including personal delivery by
telecopy, if a copy is sent by mail or overnight delivery), (ii) the
business day following being sent through an overnight delivery service, or
(iii) the third business day after mailing by first class mail to the
recipient at the address indicated below:

     

    To the
Company:

     

    ATC
Technology Corporation

    1400 Opus
Place, Suite 600

    Downers
Grove, IL 60515

    Attention:    General
Counsel

    Facsimile:     (630)
663-8221

     

    To
Executive:

     

    Donald T.
Johnson Jr.

    3643
White Eagle Drive

    Naperville,
IL 60564

     

    With a
copy to

     

    Jeffrey
B. Rock

    Hasselberg,
Rock, Bell & Kuppler LLP

    4600
Brandywine Drive, Suite 200

    Peoria,
IL 61614-5591

    Facsimile:    (309)
688-9430

     

    or to
such other address or to the attention of such other person as the recipient
party will have specified by prior written notice to the sending
party.

     

    (b)         Severability.  The
provisions of this Agreement are severable and, if any court of competent
jurisdiction determines that any provision contained in this Agreement shall,
for any reason, be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provision
of this Agreement, and this Agreement shall be reformed and construed so that
such invalid or illegal or unenforceable provision would be valid, legal and
enforceable to the maximum extent possible.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      (c)         Entire
Agreement.  This Agreement constitutes the full and complete
understanding and agreement of the parties with respect to the subject matter
hereof and supersedes all prior and contemporaneous oral and written
understandings and agreements with respect to the subject matter hereof,
including, without limitation, that certain Amended and Restated Executive
Employment Agreement dated as of February 8, 2008 between Executive and
ATC, which shall be of no further force and effect as of the date of this
Agreement.

    

     

    (d)         Counterparts.  This
Agreement may be executed on separate counterparts, any one of which need not
contain signatures of more than one party, but all of which taken together will
constitute one and the same agreement.

     

    (e)         Successors and
Assigns.  This Agreement is intended to bind and inure to the
benefit of and be enforceable by Executive and the Company, and their respective
successors and assigns, except that Executive may not delegate any of his duties
hereunder and he may not assign any of his rights hereunder without the prior
written consent of the Company.

     

    (f)         Attorney's
Fees.  If any legal proceeding is necessary to enforce or
interpret the terms of this Agreement, or to recover damages for breach
therefore, the prevailing party shall be entitled to reasonable attorney's fees,
as well as costs and disbursements, in addition to any other relief to which he
or it may be entitled.

     

    (g)         Amendments; No
Waivers.  Any provision of this Agreement may be amended or
waived if such amendment or waiver is in writing and signed, in the case of an
amendment, by all parties hereto, and in the case of a waiver, by the party
against whom the waiver is to be effective.  No waiver by a party of
any breach of this Agreement shall be deemed to extend to any prior or
subsequent breach or affect in any way any rights arising by virtue of any prior
or subsequent breach.  No failure or delay by a party in exercising
any right, power or privilege hereunder shall operate as a waiver thereof nor
shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or
privilege.  The rights and remedies herein provided shall be
cumulative and not exclusive of any rights or remedies provided by
law.

     

    (h)         Governing Law and
Venue.  This Agreement shall be governed by and construed and
enforced in accordance with the internal laws (without reference to choice or
conflict of laws) of the State of Illinois.  The parties to this
Agreement hereby irrevocably consent to the exclusive venue and jurisdiction of
the state and federal courts sitting in the State of Illinois for any matter or
controversy concerning either the existence or enforcement of this Agreement and
hereby waive any contention that Illinois is an improper or inconvenient
forum.

     

    (i)         Construction.  The
captions herein are included for convenience of reference only and shall be
ignored in the construction or interpretation hereof.  Neither party
hereto, nor its respective counsel, shall be deemed the drafter of this
Agreement, and all provisions of this Agreement shall be construed in accordance
with their fair meaning, and not strictly for or against either party
hereto.

     

    [signature
page follows]

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the parties have executed this Amended and Restated Agreement
effective as of the date first above written.

     

    
      	 
      
	
              /s/
      Donald T. Johnson, Jr.

            
	
              Donald
      T. Johnson Jr.

               

               

            
	
              ATC
      TECHNOLOGY CORPORATION

            
	
              By:

            	
              /s/
      Joseph Salamunovich

            
	
              Joseph
      Salamunovich

              Vice
      President

            

    

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    GENERAL
RELEASE

     

    THIS
GENERAL RELEASE is entered into by the undersigned (“Employee”) as of the date
appearing next to Employee’s signature hereto.

     

    WHEREAS,
Employee’s employment with ATC Technology Corporation and/or one of its
subsidiaries (ATC and its subsidiaries being referred to collectively as the
“Company”) is being terminated and the Company will provide Employee with
certain benefits upon the termination of employment provided that, among other
things, Employee executes and delivers this General Release;

     

    NOW,
THEREFORE, Employee agrees as follows:

     

    1.           General
Release.  Employee
hereby

     

    (a)           releases
and discharges the Company and its officers, directors, employees, benefit plan
administrators and trustees, and agents (collectively, the “Released Parties”)
from any and all claims, liabilities, demands and causes of action, whether
known or unknown, fixed or contingent, that Employee may have or claim to have
against any of the Released Parties relating to, or arising out of, Employee’s
employment with the Company or the termination thereof, and

     

    (b)           covenants
not to initiate or participate in (except pursuant to a lawful subpoena) any
lawsuit or other legal proceeding asserting any such claims, liabilities,
demands or causes of action.

     

    This
General Release shall be broadly construed to include, but not be limited to,
all claims under any federal, state, or local laws, statutes, regulations, or
ordinances (including those prohibiting employment discrimination, such as the
federal Age Discrimination in Employment Act), and all claims in contract or
tort including, but not limited to, claims for breach of contract, negligence,
defamation, and wrongful or retaliatory discharge.  This General
Release does not include any claim Employee may have (i) based upon facts
occurring after the date that Employee executes this General Release or (ii)
relating to benefits or payments to which Employee is entitled after the
Termination Date (as defined in that certain Executive Employment Agreement
dated as of January 1, 2009 between Employee and the Company) pursuant to
the Executive Employment Agreement.

     

    2.           Knowing
and Voluntary.  Employee
acknowledges and agrees that: (a) Employee has read and understands this
General Release in its entirety; (b) Employee has been advised in writing
to consult with an attorney concerning this General Release before signing it;
(c) Employee has 21 calendar days after receipt of this General
Release to consider its terms before signing it; (d) Employee has the right
to revoke this General Release in full within seven calendar days of signing it
and that none of the terms and provisions of this General Release shall become
effective or be enforceable until such revocation period has expired;
(e) nothing contained in this General Release waives any claim that may
arise after the date of its execution; and (f) Employee is executing this
General Release knowingly and voluntarily, without duress or reservation of any
kind, and after giving the matter full and careful consideration.

     

    IN
WITNESS WHEREOF, the undersigned has executed this General Release as of the
date set forth below.

    

    
      	
              Executed:  
      ________________________, 20___

            	
              EMPLOYEE:

               

               

            
	 
      	
              [NAME]

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