This Irrevocable Trust Agreement involves
Title: irrevocable agreement
April 13, 2005
Mr. Jean Rochette
1976 De l'Elan Street
Longueuil, Quebec J4N 1N3
Following your conversation with Andre Heroux on March 21, we are confirming
that as a result of restructuring and the elimination of your position, your
employment with the MAAX Corporation will end on March 25, 2005.
Your employment termination will be subject to the modalities and conditions
listed below, in compliance with your employment contract of August 27, 2004.
The present letter and the document titled "Transaction and Discharge", after
having been countersigned by you will become an irrevocable agreement between
yourself and the MAAX Corporation.
EMPLOYMENT TERMINATION COMPENSATION
You will receive employment termination compensation in the gross amount of FIVE
HUNDRED AND TWENTY-FIVE THOUSAND DOLLARS ($525,000). This amount is equivalent
to your base salary for a period of fifty-two (52) weeks to which has been added
the annual target performance bonus and includes all the amounts due to you in
the form of compensation instead of notices pursuant to the Act respecting
Labour Standards or any other pertinent federal or provincial law.
It might be possible to transfer all or part of your employment termination
compensation to your RRSP without any source deductions and without affecting
your annual RRSP space. We recommend that you consult with your financial
adviser in order to discover the options open to you, if any exist. If you are
entitled to do so and wish to transfer funds into your RRSP, please communicate
the amount below.
I want to transfer the amount of FIFTEEN THOUSAND SIX HUNDRED AND THIRTY-ONE
DOLLARS ($15,631) into an RRSP.
In addition to the departure compensation, you will receive a normal performance
bonus on the same basis as the other members of the executive committee for the
2005 fiscal year, once the financial statements have been approved by the MAAX
Corporation Board of Directors. The said amount will be paid to you on or around
May 9, 2005.
MAAX Corporation will continue to offer you life insurance as well medical
(except for coverage abroad) and dental insurance, as well as life insurance for
dependents (if applicable) based on the choices you made in the MAAX
Corporation's Fringe Benefits Program, as long as you accept to continue paying
your share of the premium amount. This coverage will be in effect as of the
employment termination date to September 26, 2005 or until you find other
employment, it being agreed that the first of these dates will be selected.
I want to keep my benefits and I accept to pay my share of the premium amount,
if applicable. X
I do not want to keep my fringe benefits after March 25, 2005. ______
After this six-month (6) period, we can, if you want, make the arrangement in
order to continue the insurance coverage, at your expense.
MAAX Corporation will transfer to your name the company car currently in your
possession. However, you will be responsible for the taxes and tax consequences
of this transfer.
To make the arrangements to this effect, please contact Dave Turgeon.
ENTITLEMENT OF PENSION BENEFITS
You will stop acquiring an entitlement of pension benefits as of March 25, 2005
and the benefits acquired will be administered in compliance with the terms of
the MAAX Corporation Retirement Plan.
Unused vacation credits accumulated up to March 25, 2005 will be paid to you at
the next payroll cycle.
DEDUCTIONS AND WITHDRAWALS
The payments indicated above are subject to income tax and other deductions
stipulated by federal and provincial laws as well as regular withdrawals; these