STRT Strattec Security Corporation

On May 5, 2023, STRATTEC SECURITY CORPORATION (the "Company") entered into an employment agreement (the "Employment Agreement") with Dennis Bowe, the Company's Vice President and Chief Financial Officer, with a September 9, 2022 effective date.  The Employment Agreement is on terms substantially consistent with the terms of the employment agreements entered into by the Company with its other executive officers and effective date contains an evergreen renewal feature that automatically extends the agreement for an additional year each June 30, unless advance notice is provided, such that the term of each employment agreement automatically extends for one year each June 30 unless either party gives 30 days' notice that the agreement will not be further extended.  Under the employment agreement, Mr. Bowe agrees to perform the duties currently being performed as Chief Financial Officer and Vice President of the Company in addition to such other duties that may be assigned from time to time, which include oversight of the finance, accounting, payroll/benefits and information technology functions.  The terms of this employment agreement generally include the following:

 

 

 

 

 

 

 

On May 5, 2023, the Company also entered into a change in control employment agreement (the "Change of Control Agreement") with Mr. Bowe with a September 9, 2022 effective date.  The Change of Control Agreement is on terms substantially consistent with the terms of the other change in control employment agreements entered into by the Company with its other executive officers.  Under the Change of  Control Agreement, the Company guarantees Mr. Bowe continued employment following a change of control (as defined in the agreement) on a basis equivalent to his employment immediately prior to such change in terms of position, duties, compensation and benefits, as well as specified payments upon termination following a change of control.  This Change of Control Agreement only becomes effective only upon a defined change of control of STRATTEC, or if Mr. Bowe's employment is terminated upon, or in anticipation of such a change of control, and automatically supersedes any existing employment agreement once it becomes effective.  Under this Change of Control Agreement, if during the employment term (three years from the date of the change of control), Mr. Bowe is terminated other than for cause (as defined in the agreement) or if Mr. Bowe voluntarily terminates his employment for good reason (as defined in the agreement) or during a 30‑day window period one year after a change of control, then Mr. Bowe is entitled to specified severance benefits, including (1) a lump sum payment of two times his then annual base salary, (2) a payment equal to his highest annual bonus (which is equal to the highest cash bonus paid to Mr. Bowe by STRATTEC and its affiliates collectively during the ten fiscal year period immediately preceding the fiscal year during which the change of control has occurred) and (3) continuation of certain fringe and other benefits.

The Employment Agreement and the Change of Control Agreement are each attached hereto as Exhibits 10.1 and 10.2, respectively, and are each incorporated herein by reference.