SEC Contract Filing

Filing Date: 2020-09-30

Document Content:
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<TYPE>EX-10.43
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<FILENAME>stcn20200731ex1043.htm
<DESCRIPTION>EXHIBIT 10.43
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<DIV><FONT size="1" style="font-size:1pt;color:white">DocuSign Envelope ID: 7B98027D-A144-4605-A2B9-5A06556ABC65BC9CF432-805B-458D-9077-5425864D90BB EMPLOYMENT AGREEMENT This Employment Agreement (this &#8220;Agreement&#8221;) is dated June 4, 2020 (the &#8220;Effective Date&#8221;), by and between IWCO Direct Holdings, Inc. (the &#8220;Company&#8221;), and John Ashe, an individual (&#8220;Executive&#8221;). The Company currently employs Executive as Chief Executive Officer of the Company and is desirous of continuing to employ Executive. Executive accepts such continued employment by the Company on the terms and conditions set forth in this Agreement. In consideration of the mutual covenants and agreements hereinafter set forth, the Company and Executive hereby agree as follows: 1. Term. The term of this Agreement and of the employment of Executive hereunder shall commence as of the Effective Date and shall continue until terminated in accordance with the terms of this Agreement. The term of the Executive&#8217;s employment under this Agreement is hereafter referred to as &#8220;the term of this Agreement&#8221; or &#8220;the term hereof&#8221;. 2. Employment (a) Employment; Title; Duties. During the term of this Agreement, the Executive shall serve as Chief Executive Officer of the Company, reporting to the Interim Chief Executive Officer of Steel Connect, Inc. (&#8220;STCN&#8221;) or his successor. In such position, the Executive shall have such duties, authority, and responsibilities as shall be determined from time to time, which duties, authority, and responsibilities are consistent with the Executive&#8217;s position. The Executive shall, if requested, also serve as an officer or director of any affiliate of the Company for no additional compensation. (b) Performance of Duties. Throughout the term of his employment, Executive shall devote his full business time exclusively to the advancement of the business and interests of the Company and faithfully and diligently perform his duties in conformity with the lawful direction of the Interim Chief Executive Officer of STCN, as well as the Board of Directors of STCN (the &#8220;STCN Board&#8221;). Executive will not engage in any other business, profession, or occupation for compensation or otherwise which would conflict or interfere with the performance of such services either directly or indirectly without the prior written consent of the Interim Chief Executive Officer and the STCN Board. (c) Place of Performance. Executive&#8217;s initial place of employment shall be at the Company&#8217;s office in Chanhassen, MN; provided Executive shall be reasonably required to travel periodically in connection with the performance of his duties. 3. Compensation and Benefits (a) Base Salary. During the term hereof, the Company shall pay to Executive a base salary (&#8220;Base Salary&#8221;) at the annual rate of Four Hundred Thousand Dollars ($400,000). The Base Salary shall be payable in equal installments in accordance with the Company&#8217;s customary pay schedule and shall be subject to such adjustments as the STCN Board shall determine from time to time. The Company has currently implemented a thirty-five percent (35%) salary reduction for salaried employees. According, Executive&#8217;s Base Salary shall be adjusted to the </FONT></DIV>
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<DIV><FONT size="1" style="font-size:1pt;color:white">DocuSign Envelope ID: 7B98027D-A144-4605-A2B9-5A06556ABC65BC9CF432-805B-458D-9077-5425864D90BB rate of $260,000 per year, less payroll deductions and all required withholdings (the &#8220;Interim Base Salary&#8221;). Once the Company rescinds the 35% salary reduction, the Interim Base Salary will be increased to the Base Salary. (b) Annual Bonus. Executive shall be eligible to receive an annual bonus in accordance with the terms of any bonus plan applicable to the Executive. As of the Effective Date, the Executive&#8217;s annual target bonus opportunity shall be equal to 100% of Base Salary (comprised of 70% STIP and 30% LTIP) (the &#8220;Target Bonus&#8221;). Payment of the Target Bonus shall be based on the achievement of the Executive&#8217;s performance goals established by the STCN Compensation Committee in its sole and absolute discretion. The Executive&#8217;s actual bonus may be higher or lower than the Target Bonus, as determined by the STCN Board of Directors in its sole and absolute discretion. For the 2020 calendar year, Executive&#8217;s bonus will be recommended to the Board of Directors taking into consideration the overall performance of both Lucas-Milhaupt, Inc. and the Company. In addition, and for the avoidance of doubt, the Company shall assume the obligation for payment of Executive&#8217;s previous cash LTIP awards, which awards shall continue to vest and be paid per the approved terms of payment and payment schedule. (c) Sign-On Bonus. The Company will pay Executive a one-time bonus of $65,000, less payroll deductions and all required withholdings (the &#8220;Sign-On Bonus&#8221;). The Company shall pay Executive the Sign-On Bonus on the first payroll date after Executive relocates to the greater Minneapolis area. (d) Equity Grant. Within fifteen (15) days of execution of this Agreement, Executive will be recommended to the Steel Connect, Inc. Compensation Committee to receive 400,000