Exhibit 10-J
NON-COMPETITION AND SEVERANCE AGREEMENT
between
DANA CORPORATION
and
PAUL MILLER
dated May 3, 2004
THIS
NON-COMPETITION AND SEVERANCE AGREEMENT (the
“Agreement”), dated as of May 3, 2004, by and
between, Dana Corporation, a Virginia corporation, whose principal
place of business is located at 4500 Dorr Street, Toledo, Ohio (the
“Corporation”), and Paul E. Miller (the
“Executive”);
WHEREAS,
the Corporation has offered to employ the Executive as its Vice
President of Purchasing and the Executive has accepted such offer
of employment;
WHEREAS,
the Executive desires to be employed by the Corporation, and to
forego opportunities elsewhere during his period of
employment;
WHEREAS,
the Corporation’s offer of employment requires the Executive
to be subject to its customary non-competition, non-disparagement
and confidentiality covenants and also provides for certain
severance benefits to be payable under certain circumstances, as
more fully set forth herein; and
WHEREAS,
the parties intend for this Agreement to operate until terminated
in accordance with the terms hereof as more fully set forth
herein.
NOW,
THEREFORE, IN CONSIDERATION of the mutual promises, covenants and
agreements set forth below, it is hereby agreed as follows:
1.
Definitions . All defined terms in this Agreement shall have
the meanings set forth below:
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(a) |
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“Agreement” shall mean this Non-Competition and
Severance Agreement. |
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(b) |
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“Board” shall mean the Board of Directors of the
Corporation. |
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(c) |
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“Cause” shall mean (i) termination of
employment as the result of the Executive’s conviction of, or
plea of guilty or nolo contendere to, the charge of having
committed a felony (whether or not such conviction is later
reversed for any reason); or (ii) failure by the Executive to
devote his full time and undivided attention during normal business
hours to the business and affairs of the Corporation or one of its
subsidiaries except for reasonable vacations and except for illness
or incapacity; but nothing herein shall preclude the Executive from
devoting reasonable periods required for (A) serving as
director or member of a committee of any organization involving no
conflict of interest with the interests of the Corporation or its
subsidiaries; (B) delivering lectures, fulfilling speaking
engagements, teaching at educational institutions;
(C) engaging in charitable and community activities and
(D) managing his personal investments, so long as such
activities do not materially interfere with the regular performance
of his duties and responsibilities to the Corporation or its
subsidiaries; or (iii) disclosure by the Executive at any
time, to any person not employed by the Corporation or one of its
subsidiaries, or not engaged to render services to the Corporation
or one of its subsidiaries, except with the prior written |
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consent of an officer authorized to act in the matter by the
Board, of any confidential information of the Corporation, its
subsidiaries and affiliates obtained by him while in the employ of
the Corporation, including, without limitation, information related
to any of the Corporation’s inventions, processes, formulae,
plans, devices, compilations of information, methods of
distribution, customers, suppliers, client relationships, marketing
strategies or trade secrets; provided, however, that this provision
shall not preclude the Executive from use or disclosure of
information known generally to the public or of information not
considered confidential by persons engaged in the business
conducted by the Corporation or from disclosure required by law,
regulation or court order; (iv) the willful engaging by the
Executive in misconduct that is injurious to the Corporation or its
subsidiaries, monetarily or otherwise; or (v) negligence or
incompetence on the part of the Executive in the performance of his
assigned duties. |
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(d) |
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“Competition” shall have the meaning set forth in
Section 2(b). |
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(e) |
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“Corporation” mean Dana Corporation. |
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(f) |
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“Date of Termination” shall mean the date on which
the Executive elects to retire, voluntarily resigns, dies or is
released from employment by the Corporation. |
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(g) |
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“Employment Period” shall have the meaning set
forth in Section 2(a). |
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(h) |
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“Executive” shall mean Paul E. Miller. |
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(i) |
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“Non-competition Period” shall mean (i) upon
the Executive’s termination of employment with the
Corporation or any of its subsidiaries or affiliates for any reason
on or before May 3, 2006, the twenty four (24) month
period following such termination of employment, or (ii) upon
the Executive’s termination of employment with the
Corporation or any of its subsidiaries or affiliates for any reason
after May 3, 2006, the twelve (12) month period following
such termination of employment. |
2.
Non-Competition .
(a) The Executive agrees that he
will not engage in Competition at any time (i) during his
employment by the Corporation or any of its subsidiaries or
affiliates (the “Employment Period”) or
(ii) during the Non-competition Period. In addition, during
the Non-competition Period, the Executive agrees that he will not
make or publish any statement which is, or may reasonably be
considered to be, disparaging of the Corporation or any of its
subsidiaries or affiliates, or directors, officers, employees or
the operations or products of the Corporation or any of its
subsidiaries or affiliates.
(b) The word
“Competition” for the purposes of this Agreement shall
mean:
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(i) |
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taking a management position with or control of a business
engaged in the design, development, manufacture, marketing or
distribution of products, which constituted 15% or more of the
sales of the Corporation and its subsidiaries and affiliates during
the last fiscal year of the Corporation preceding the termination
of the Executive’s employment, in any geographical area in
which the Corporation, its subsidiaries or affiliates is at the
time engaging in the design, development, manufacture, marketing or
distribution of such products; provided , however ,
that in no event shall ownership of less than 5% of the outstanding
capital stock entitled to vote for the election of directors of a
corporation with a class of equity securities held of record by
more than 500 persons, standing alone, be deemed Competition with
the Corporation within the meaning of this Section 2; |
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(ii) |
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soliciting any person who is a customer of the businesses
conducted by the Corporation and its subsidiaries and affiliates,
or any business in which the Executive has been engaged on behalf
of the Corporation and its subsidiaries or affiliates at any time
during the Employment Period on behalf of a business described in
clause (i) of this Section 2(b); or |
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(iii) |
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inducing or attempting to persuade any employee of the
Corporation or any of its subsidiaries or affiliates to terminate
his employment relationship in order to enter into employment with
a business described in clause (i) of this
Section 2(b). |
(c) If, at any time, the
provisions of this Section 2 shall be determined to be invalid
or unenforceable, by reason of being vague or unreasonable as to
area, duration or scope, the provisions of this Section 2
shall be divisible and shall become immediately amended to cover
only such area, duration or scope as shall be determined to be
reasonable and enforceable by the court or other body having
jurisdiction over the matter; and the Executive agrees that
Section 2 as so amended shall be valid and binding as though
any invalid or unenforceable provision had not been included
herein.
3.
Confidential Information .
(a) The Executive agrees not to
disclose, either while in the Corporation’s employ or at any
time thereafter, to any person not employed by the Corporation or
one of its subsidiaries, or not engaged to render services to the
Corporation or one of its subsidiaries, except with the prior
written consent of an officer authorized to act in the matter by
the Board, any confidential information of the Corporation, its
subsidiaries and affiliates obtained by him while in the employ of
the Corporation, including, without limitation, information
relating to any of the Corporation’s inventions, processes,
formulae, plans, devices, compilations of information, methods of
distribution, customers, suppliers, client relationships, marketing
strategies or trade secrets; provided , however ,
that this provision shall not preclude the Executive from use or
disclosure of information
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known
generally to the public or of information not considered
confidential by persons engaged in the business conducted by the
Corporation or from disclosure required by law or court order. The
agreement herein made in this Section 3(a) shall be in addition to,
and not in limitation or derogation of, any obligations otherwise
imposed by law upon the Executive in respect of confidential
information and trade secrets of the Corporation, its subsidiaries
and affiliates.
(b) The Executive also agrees
that upon leaving the Corporation’s employ he will not take
with him, without the prior written consent of an officer
authorized to act in the matter by the Board, and he will surrender
to the Corporation any record, list, drawing, blueprint,
specification or other document or property of the Corporation, its
subsidiaries and affiliates, together with any copy and
reproduction thereof, mechanical or otherwise, which is of a
confidential nature relating to the Corporation, its subsidiaries
and affiliates, or, without limitation, relating to its or their
methods of distribution, client relationships, marketing strategies
or any description of any formulae or secret processes, or which
was obtained by him or entrusted to him during the course of his
employment with the Corporation.
4.
Covenants Reasonable . The Executive hereby acknowledges
that the business of the Corporation is highly competitive. The
Executive further acknowledges that his service to the Corporation
will be of a special and unique character, and that he will be
identified personally with the Corporation. The Executive also
acknowledges that his employment with the Corporation will require
that he have access to some of the Corporation’s most highly
confidential business information, trade secrets and proprietary
information. The parties therefore acknowledge that the
restrictions contained in Sections 2 and 3 hereof are a
reasonable and necessary protection of the immediate interests of
the Corporation, and any violation of these restrictions would
cause substantial injury to the Corporation and that the
Corporation would not have entered into this Agreement and the
employment relationship with the Executive without receiving the
additional consideration offered by the Executive in binding
himself to any of these restrictions.
5.
Severance .
(a) If at any time on or b
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