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EX-99 - EXHIBIT 99.1 PRESS RELEASE 12-19 A. SHAFFER - UQM TECHNOLOGIES INC | exhibit991.htm |
8-K - FORM 8K 11/01/2011 A.SHAFFER - UQM TECHNOLOGIES INC | form8k11012011.htm |
UQM TECHNOLOGIES, INC.
EMPLOYMENT AGREEMENT
THIS AGREEMENT is made and entered into as of October 14, 2011, by and between UQM TECHNOLOGIES, INC., a corporation organized under the laws of Colorado ("Employer"), and Adrian Schaffer, an adult resident of Rochester Hills, Michigan ("Executive").
WHEREAS, Executive and Employer wish to enter into an Agreement defining their employment relationship;
NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions hereinafter set forth, Employer and Executive agree as follows:
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Effective Date
. Upon execution, this
Agreement shall be effective as of December 1, 2011.
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Employment
. Employer hereby agrees to
employ Executive as its Vice President of Sales and Business Development for
the term of employment set forth herein, and Executive hereby accepts such
employment, all upon the terms and conditions hereinafter set forth.
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Duties.
Executive shall perform the
duties assigned to him by the Chief Executive Officer, subject to the
control, supervision and direction of the Chief Executive Officer.
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Performance.
During the term of
Executive's employment under this Agreement and any renewal thereof,
Executive shall devote Executive's best efforts and full working time and
attention exclusively to the performance of the duties hereunder and to
promoting and furthering the business of Employer, and shall not, during the
term of employment, be engaged in any other business activity for personal
pecuniary advantage. This paragraph shall not be construed as preventing
Executive from investing Executive's assets in such form or manner as will
not require any services on the part of Executive in the operation of the
affairs of the companies in which such investments are made, subject to the
provisions of Paragraph 17 hereof. Notwithstanding the foregoing,
Executive may perform and assume other activities and obligations as the
Board of Directors shall from time to time approve.
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Term of Employment, Expiration and Termination.
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Term.
Subject to the provisions of
Paragraphs 15 and 16, the term of employment of Executive pursuant to
this Agreement shall commence on December 1, 2011, and shall continue
through November 30, 2014 (the "Original Term of Employment").
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Termination for Cause.
On termination
of Executive's employment by Employer for cause during the Original Term of
Employment pursuant to Paragraph 15(a), Executive shall receive no further
base salary or benefits.
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Termination Without Cause.
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Payment Amount.
On termination of
Executive's employment without cause by Employer either (1) during the
Original Term of Employment or (2) after expiration of the Original Term
of Employment if Executive's employment continues without a written
agreement, Employer shall pay Executive a lump sum equal to one month's
base salary for each completed full year of service as an officer of
Employer, or six (6) months' base salary, whichever is greater. In the
event of a material breach of this Agreement by Employer that is not cured
within two (2) weeks of notice from Executive Executive may elect to treat
such breach as a constructive termination under this subparagraph,
entitling Executive to the benefits under this subparagraph.
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Section 409A Involuntary Separation.
If the amount payable under this paragraph 5(c) qualifies as
separation pay due to involuntary separation from service within the
meaning of Treasury Regulation section 1.409A-1(b)(9)(iii), the lump
sum shall be paid on or before the 30th day after Executive's
separation from service, provided however, that if, at the time of
separation from service, Executive is a "specified employee"
within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue
Code and the Treasury Regulations, then the payment of the portion of the
lump sum that is an amount equal to two (2) months' base salary shall be
delayed and shall be paid on the earliest date on which payment may be
made under Section 409A(a)(2)(B)(i) (the six month delay rule for
specified employees) after Executive separates from the service of
Employer as defined in Section 409A(a)(2)(A)(i) and the Treasury
Regulations.
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No Section 409A Involuntary Separation;
Not A Specified Employee. If the amount payable under this
paragraph 5(c) does not qualify as separation pay due to involuntary
separation from service within the meaning of Treasury Regulation section
1.409A-1(b)(9)(iii), and if, at the time of separation from service,
Executive is not a "specified employee" within the meaning of
Section 409A(a)(2)(B)(i) and the Treasury Regulations, the lump sum shall
be paid on or before the 30th day after Executive separates
from the service of Employer as defined in Section 409A(a)(2)(A) and the
Treasury Regulations. Employer, and not Executive, shall determine the
date of payment.
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No Section 409A Involuntary Separation;
Specified Employee. If the amount payable under this
paragraph 5(c) does not qualify as separation pay due to involuntary
separation from service within the meaning of Treasury Regulation section
1.409A-1(b)(9)(iii), and if, at the time of separation from service,
Executive is a "specified employee," the lump sum shall be paid
on the earliest date on which payment may be made under Section
409A(a)(2)(B)(i) (the six month delay rule for specified employees) after
Executive separates from the service of Employer as defined in Section
409A(a)(2)(A)(i) and the Treasury Regulations.
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Voluntary Termination.
On termination
of Executive's employment by Executive without cause either (i) during the
Original Term of Employment pursuant to Paragraph 16(b), or (ii) after
expiration of the Original Term of Employment if Executive's employment
continues without written agreement, provided that Executive has given
Employer at least six (6) months' prior written notice of such
termination, Employer shall pay Executive a lump sum equal to six (6) months'
salary. If Executive does not provide the notice required in this
subparagraph 5(d), Executive shall receive a lump sum payment equal to two
(2) months' base salary. Notwithstanding the foregoing, if Executive's
termination is under the provisions of Subparagraph 5(f) regarding voluntary
retirement after the age of sixty-two years and six months (62 ½), the
provisions of this Subparagraph 5(d) shall not be applicable and the
provisions of Subparagraph 5(f) shall control. The timing of the amount
payable to Executive under this subparagraph 5(d) shall be in accordance
with paragraph 5 (i).
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Termination Upon Certain Changes in Control.
If Executive's employment is terminated as a result of a Change in Control
(as defined below) of Employer, such termination shall be deemed a
termination without cause under the provisions of Paragraph 5(c), except
that Executive shall receive a lump sum severance amount equal to twice any
amount due under Paragraph 5(c). Any termination of Executive in
contemplation of or within twelve (12) months after such Change in Control,
except a termination for cause under Paragraph 15(a), shall be deemed a
termination under this Subparagraph 5(e). Further, if Executive's duties or
position are materially changed by Employer in contemplation of or within
twelve (12) months after any such Change in Control, Executive may elect to
treat such change as a constructive termination under this subparagraph
entitling Executive to the benefits hereunder. For purposes of this
Agreement, "Change in Control" means a "Corporate
Transaction", which includes the following:
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Merger; Reorganization.
The merger
or consolidation of the Employer with or into another corporation or other
reorganization (other than a reorganization under the United States
Bankruptcy Code) of the Company (other than a consolidation, merger, or
reorganization in which the Employer is the continuing corporation and
which does not result in any reclassification of change of outstanding
shares of common stock); or
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Sale.
Substantially all of the
Employer's business or assets are sold or transferred (unless the Employer
continues as the holding company of the entity or entities that continue
the Employer's business) or a sale of more than fifty percent (50%) of the
Employer's outstanding voting stock; or
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Liquidation.
The dissolution or
liquidation of the Employer; or
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Change in Control.
If at any time
during any period of two (2) consecutive years (including any period prior
to the date hereof), individuals who at the beginning of such period
constitute the Board (and any new director whose election by the Board or
whose nomination for election by the Employer's stockholders was approved
by a vote of at least two-thirds (2/3) of the directors then still in
office who either were 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 thereof; or
- Other Transactions. Any other transaction that the Board determines by resolution to be a Corporate Transaction.
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Voluntary Retirement.
Upon
Executive's voluntary retirement after age sixty-two years and six months
(62 ½) (i) during the Original Term of Employment pursuant to
Paragraph 16(b), or (ii) after expiration of the Original Term of
Employment if Executive's employment continues without written agreement,
Executive shall receive the severance benefits described under
Paragraph 5(c), i.e., as if the severance was a termination
without cause by Employer plus an additional six months pay up to a maximum
payment of twenty-four (24) months. In order to exercise his rights under
this Subparagraph 5(f), Executive shall provide Employer at least six (6)
months' prior written notice of his voluntary retirement. The amount due
to Executive under this subparagraph 5(f) shall be paid in accordance with
paragraph 5 (i). Executive has "voluntarily retired" if he has
"separated from service" as defined in Section 409A and the
Treasury Regulations.
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Return of Documents.
Upon the
expiration or termination of Executive's employment, Executive or
Executive's legal representative upon request shall promptly deliver to
Employer all originals and all duplicates or copies of all documents,
records, notebooks and similar repositories of or containing Confidential
Information as defined in Paragraph 18 then in his possession, whether
prepared by Executive or not.
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Other Benefits.
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General.
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Health Plans.
If, at the time of
separation from service, Executive is a "specified employee"
within the meaning of Section 409A(a)(2)(B)(i) and the Treasury Regulations,
Executive shall pay the full cost of coverage for Executive and his
dependent(s) under Employer's health care and hospitalization plan(s),
determined according to the rates for continuation coverage under COBRA (but
excluding the additional two percent (2%) administrative fee) for the first
six (6) months of coverage following Executive's separation from the
service of Employer as defined in Code section 409A(a)(2)(A)(i) and the
Treasury Regulations. Beginning with the seventh (7th) month
following Executive's separation from the service of Employer as defined
in Code section 409A(a)(2)(A)(i) and the Treasury Regulations if Executive
is a "specified employee," or beginning with the first month of
coverage if, at the time of separation from service, Executive is not a
"specified employee," Executive shall pay the same cost for
coverage under the health plan as active employees of Employer. Coverage for
Executive and Executive's dependents shall terminate on the last day of
the month in which Executive's 65th birthday shall occur. All
claims made by Executive and Executive's dependents under the health plan
shall be paid no later than the last day of the calendar year following the
calendar year in which such claims were incurred. Executive agrees that he
will promptly reimburse Employer for any claims that are paid after the last
day of the calendar year following the calendar year in which such claims
were incurred.
The timing of the amount payable to Executive under this subparagraph 5(e) shall be in accordance with paragraph 5(c).
(i) Timing of Payment; Section 409A. The lump sum payments under Subparagraphs 5(d) and (f) shall be made at the time provided in this Subparagraph 5(i). If, at the time of separation from service, Executive is not a "specified employee" within the meaning of Section 409A(a)(2)(B)(i) and the Treasury Regulations, the lump sum payable shall be paid on or before the 30th day after Executive separates from the service of Employer as defined in Section 409A(a)(2)(A) and the Treasury Regulations, and Employer, and not Executive, shall determine the date of payment. If, at the time of separation from service, Executive is a "specified employee," the lump sum shall be paid on the earliest date on which payment may be made under Code Section 409A(a)(2)(B)(i) (the six month delay rule for specified employees) after Executive separates from the service of Employer as defined in Code section 409A(a)(2)(A)(i) and the Treasury Regulations.
Compensation.
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An annual base salary of $200,000. Executive's annual base salary shall not be decreased during the Original Term of Employment.
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Executive's base salary shall be paid in equal semi-monthly installments on the fifteenth and final day of each month during the term of his employment.
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Executive shall receive fringe benefits in accordance with Employer's policies and practices for employees generally (including, without limitation, participation in any stock option plans, life and disability insurance plans, health care and hospitalization plans, medical and dental reimbursement plans, profit sharing plans, retirement plans and other employee benefit plans) for which Executive is qualified. At Employer's expense Executive shall have a medical exam every year. In addition to the foregoing, Executive shall receive an automobile allowance of $810 per month for the use of an automobile for combined business and personal use.
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During the second quarter of each fiscal year of Employment, Employer shall review Executive's performance under this Agreement and establish goals and objectives for Executive's performance for the next fiscal year. In such review, Employer, in its reasonable discretion, shall consider increasing Executive's base salary and compensation based on relevant factors such as Executive's performance, Employer's accomplishments, increase or decrease in Executive's responsibilities, and cost of living increases. Any base salary increases normally are to be effective on such date as may be specified by Employer.
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Employer has adopted additional compensation plans that are administered by its Compensation Committee and the Compensation Committee may in its sole and absolute discretion award cash bonuses, stock awards and stock options to Executive on terms to be determined by the Compensation Committee.
Working Facilities.
Expenses.
Paid Time Off.
Disability.
Insurance for the Benefit of Executive.
Subject to the provisions of Paragraph 6(c), Executive shall be covered by Employer's medical and disability insurance in effect from time to time, the premiums for which shall be paid for by Employer.
Employer shall at its expense continuously maintain without interruption in the name of Executive or Executive's designee or for the benefit of Executive or Executive's designee, life insurance coverage in an amount equal to three times (3x) Executive's then current base salary.
Insurance for the Benefit of Employer
Death During Employment
Representation and Warranty.
Termination by Employer.
Employer may terminate Executive's employment for cause, which is defined as follows:
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Fraud, malfeasance, or embezzlement against Employer's assets or conviction of any felony;
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Except under circumstances of disability contemplated by the provisions of Paragraph 10, cessation of Executive's performance of Executive's duties hereunder or deliberate and substantial failure to perform them in a capable and conscientious manner;
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Violation of the provisions of Paragraph 14; or
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Deliberate and substantial breach of Executive's material obligations under any other provision hereof that is not cured within 30 days after notice to Executive of the breach.
Should the Board of Directors of Employer determine cause exists, as defined in Subparagraph (a), to terminate Executive's employment, prior to termination for such cause, Employer shall provide Executive written notice reasonably describing the basis for the contemplated termination and a two-week period of time in which to respond in writing and in person prior to Employer's final determination of cause. During the period between such notice and final determination, the Board may suspend the performance of Executive's duties under this Agreement and direct Executive's non-attendance at work. However, Executive's right to compensation under this Agreement shall continue through and to any final termination of employment for cause.
Employer may terminate Executive's employment at any time without cause, subject to the applicable provisions of Paragraph 5. During the period between such notice and final determination, the Board may suspend the performance of Executive's duties under this Agreement and direct Executive's non-attendance at work.
Termination by Executive.
Executive shall have the right to terminate his employment on written notice to Employer of any default by Employer in performing its duties under this Agreement and such termination shall be treated as a termination without cause under subparagraph 5 (c), provided that Executive may not terminate his employment if Employer cures the default within fourteen (14) days after receiving such notice.
Executive may terminate Executive's employment as provided in Subparagraphs 5(d) and (f).
Restrictive Covenant.
Executive agrees and covenants that, without the Board's prior written consent and except on behalf of Employer, he will not in any manner, directly or indirectly, own, manage, operate, control, be employed by, participate in, assist or be associated in any manner with any person, firm or corporation anywhere in the world whose business competes with Employer or any subsidiary of Employer. This covenant shall remain in effect until a date one (1) year after the date Executive's employment is terminated or, if his employment is terminated pursuant to Paragraph 16(a), until the termination date. Notwithstanding any other provision of this Agreement, Executive may own up to three percent (3 %) of the outstanding stock of a competing publicly traded corporation so long as he takes no other action furthering the business of such corporation.
Until a date one (1) year after the termination date, Executive shall not (i) solicit any other employee of Employer to leave the employ of Employer, or in any way interfere with the relationship between Employer and any other employee of Employer, or (ii) induce any customer, supplier, licensee, or other business relation of Employer to cease doing business with Employer, or in any way interfere with the relationship between any customer or business relation and Employer.
Confidentiality.
Definitions.
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"Inventions"
shall mean all
inventions, improvements, modifications, and enhancements, whether or
not patentable, made by Executive within the scope of Executive's duties
during Executive's employment by Employer.
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"Confidential Information"
shall mean Employer's proprietary know-how and information disclosed
by Employer to Executive or acquired by Executive from Employer during
Executive's employment with Employer about Employer's plans, products,
processes and services, which Employer protects against disclosure to
third parties. Confidential Information shall not include Executive's
general knowledge and experience possessed prior to or obtained during
his employment with Employer.
Restrictions on Disclosure.
During the period of employment with Employer and thereafter, Executive shall not disclose Confidential Information to any third parties other than Employer, its employees, agents, consultants, contractors and designees without the prior written permission of Employer, or use Confidential Information for any purpose other than the conduct of Employer's business.
The restrictions on disclosure and use set forth herein shall not apply to any Confidential Information which:
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At the time of disclosure to Executive by Employer is generally available to the public or thereafter becomes generally known to the public, through no fault of Executive;
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Was known by Executive prior to his employment with Employer;
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Executive at any time receives from a third party not under any obligation of secrecy or confidentiality to Employer;
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Employer discloses to a third party not under any obligation of secrecy or confidentiality to it; and
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Executive is requested or required to disclose pursuant to a subpoena or order of a court or other governmental agency, in which case Executive shall notify Employer as far in advance of disclosure as is practicable.
Obligations Regarding Inventions.
Remedies
Any Confidential Information that is directly or indirectly originated, developed or perfected to any degree by Executive during the term of his employment by Employer shall be and remain the sole property of Employer.
Resolution of Disputes.
Notices.
Miscellaneous Provisions.
This Agreement contains the entire agreement between the parties and supersedes all prior agreements and it shall not be amended or otherwise modified in any manner except by an instrument in writing executed by both parties.
Neither this Agreement nor any rights or duties under this Agreement may be assigned or delegated by either party unless the other party consents in writing.
Except as otherwise provided herein, this Agreement shall be binding upon the inure to the benefit of the parties and their respective heirs, personal representatives, successors and assigns.
This Agreement has been entered into in Colorado and shall be governed by the laws of that state.
In fulfilling their respective obligations under this Agreement and conducting themselves pursuant to it, each party shall act reasonably and in good faith.
If any provisions of this Agreement shall be held to be invalid or unenforceable for any reason, the invalid or unenforceable provision shall be deemed severed from this Agreement and the balance of this Agreement shall remain in full force and effect and be enforceable in accordance with its terms.
To the extent necessary, the provisions of this Agreement shall be construed and administered in compliance with the requirements of Code section 409A and the regulations and any other guidance promulgated thereunder.
IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written.
EXECUTIVE: | |
/s/ADRIAN SCHAFFER | |
Adrian Schaffer |
|
EMPLOYER: | |
UQM TECHNOLOGIES, INC. | |
By: /s/DONALD A . FRENCH | |
Treasurer, Secretary and Chief | |
Financial Officer |