• | Base Salary: Your base salary will initially be [•] annually and will be increased, effective November 1, 2009 by half of the car allowance you are currently eligible to receive from Old Delphi (as described below). Your stipend fold in will occur when you repatriate. |
• | Target Annual Incentive: For the 2010 calendar year, your target annual incentive compensation will be [•]. This target annual incentive compensation is an increase of [•] above your salaried incentive target at Old Delphi. This increase will offset certain benefits that will not be offered. What you actually receive will, of course, be subject to the performance of New Delphi relative to the performance targets established by New Delphi’s Board of Managers (the “Board”), as well as your individual performance. The Board has the ability to modify the program in consultation with Delphi U.S. management. |
• | LTIP: New Delphi will implement a Long-Term Incentive Program. The grants under that program will be the responsibility of the Board. As with other long-term incentive programs, awards under the program and the value of those awards will depend on the success of New Delphi as a company and upon achieving a meaningful increase in the value of New Delphi, |
• | Severance: Under the New Delphi 1, LLC Separation Allowance Plan (SAP), should you be separated from Delphi U.S., and subject to the election described below, you will be eligible to receive the same severance pay, if any, as you would have received from Old Delphi in accordance with the terms of Old Delphi’s Separation Allowance Plan, as in effect on May 1, 2009. We note that, like the Old Delphi plan, severance pay will not be payable in the event you are terminated due to a “Discharge” (as defined in the SAP) or if you quit. The Board will set severance policy and may amend the SAP after two years. |
• | Frozen SERP Benefit: Under the New Delphi 1, LLC Supplemental Executive Retirement Program (SERP) which is, and will continue to be, frozen, you will be eligible to receive a benefit amount based on the benefit that would have been payable pursuant to the terms of Old Delphi’s Supplemental Executive Retirement Plan but modified in two ways: (a) the benefit under the Old Delphi plan will be calculated based on earnings and service up to December 31, 2006, and (b) an additional 10% reduction of such frozen benefit amount will apply. In order to receive the SERP benefit, you must remain employed by Delphi U.S. for at least two (2) years following your employment commencement date with Delphi U.S. This requirement will not apply if (1) your employment is terminated by Delphi U.S., not you, and for reasons other than “Cause,” as defined in the SERP, (2) you die or (3) you reach age 60. |
• | Temporary Lay Offs (TLO): In 2010, consistent with current policy, you will be required to take at least two (2) weeks of TLO per quarter until New Delphi is globally cash flow positive. These weeks will be paid at 50% of your base salary (the same policy as was in effect at Old Delphi). |
• | Car Allowance: Delphi U.S. is not offering a car stipend. Instead, an amount equal to 50% of the monthly car stipend that you were eligible to receive from Old Delphi will be rolled into your base salary, upon your repatriation. The amount of the monthly car stipend that is rolled into your base salary will not count toward your SAP benefit. |
• | Qualified Retirement Plan – 401(k): Delphi U.S. will assume the Old Delphi 401(k) plan, and you will retain your 401(k) account. Delphi U.S. currently intends to make contributions to your 401(k) account equal to 4% of your base salary, assuming eligibility. Once New Delphi has been globally cash flow positive for each of three consecutive months, Delphi U.S. intends to make profit sharing matching contributions equal to 50% of your contributions, up to a maximum of 3.5%. Thus if you contribute 7%, Delphi U.S. would match this with a 3.5% contribution. Of course, Delphi U.S.’s decision to make any contribution or match is subject to the availability of Delphi U.S.’s earnings and cash to contribute to this plan, as determined by the Board. |
• | Nonqualified 401(k): Delphi U.S. will adopt the New Delphi 1, LLC Salaried Retirement Equalization Savings Program (the “SRESP”), a non-qualified defined contribution plan that operates in a manner similar to a 401(k) plan with respect to compensation above the IRS annual compensation limit. Delphi U.S. currently intends to make contributions to your 401(k) account equal to 4% of your base salary, assuming eligibility. As with the qualified 401(k) plan, once New Delphi is globally cash flow positive for each of three consecutive months, Delphi U.S. intends also to match 50% of your contributions on the same basis up to a maximum of 3.5%. Similarly, the decision to make any matching contributions is subject to the availability of Delphi U.S.’s earnings and cash to contribute to this plan, as determined by the Board. |
• | Health Care: Your group health insurance policy at Delphi U.S. will initially offer the same benefits and provisions as were provided by Old Delphi. Employee contribution costs, including co-pays and deductibles, are expected to increase in 2010. The specific impact upon eligible employees will be determined based in part upon you and your dependent’s eligibility for certain healthy behavior factors that will impact the amount of your monthly premium. Also, beginning in January, 2010, if your spouse has coverage from another source, your spouse will be covered by that source rather than by Delphi U.S. These changes should become effective January 1, 2010, with the details to be provided in the benefit options enrollment package which you will receive later this year. |
• | Life Insurance: Delphi U.S. intends to provide you with a term-life insurance policy with a face amount equal to 1.5 times your base salary. The premiums for this policy will be paid by Delphi U.S. while you remain employed by Delphi U.S. |
• | Holidays: You will initially be entitled to 9 standard holidays and 2 floating holidays. In 2010, Delphi U.S.’s holidays will be: |
• | Vacation Schedule: In accordance with Delphi U.S.’s vacation policy, vacation days will be based upon length of service, in the table shown below, but will cap at 20 days for employees with more than 15 years of service. |
Years of Service | Days Vacation |
1 but less than 3 | 10 days |
3 but less than 5 | 12.5 days |
5 but less than 10 | 15 days |
10 but less than 15 | 17.5 days |
15 or more | 20 days |
• | Designated Time Off Days: In addition to vacation, you will accrue additional paid days off based upon length of service up to a maximum of 5 days per year, as shown below. These days are generally expected to be used for personal appointments, individual sick days, funerals, etc. |
Years of Service | DTO Days |
1 but less than 3 | 2 days |
3 but less than 10 | 3 days |
10 but less than 20 | 4 days |
20 or more | 5 days |
• | Short- and Long-Term Disability: You will be eligible to participate in Delphi U.S.’s short- and long-term disability plans on the same basis as similarly situated employees. The short-term program generally provide for a total of 26 weeks, with the first week at 100% of base pay and remaining 25 weeks at 60% of base pay. The long-term program will provide for 40% of your pay for any illness that extends beyond the short- term sickness and accident leave. You will be able to purchase coverage for up to an additional 20% of pay. |
1. | The undersigned (the “Employee”) agrees to devote his or her full business time and service in the employ of New Delphi 1, LLC (the “Employer”) in such capacity as the Employer may direct from time to time. |
2. | The Employee acknowledges that all employment relationships between the Employer and its respective employees shall be on an employment-at-will basis, as defined by applicable law, meaning that either the Employer or the Employee may terminate the Employee’s employment at any time with our without notice and with or without cause, for any reason or no reason. In consideration of the services to be performed by the Employee for the Employer, in any and every capacity, the Employer agrees to pay the Employee, in one or more installments, as long as the employment continues. |
3. | The Employee acknowledges that the Employer is a newly formed company. As such, there are no carry-over rights from Delphi Corporation (“Old Delphi”), except that the Employer has agreed to give the Employee credit for years of service with Old Delphi for purposes of participation in the Employer’s severance plan and vacation eligibility. |
4. | The Employee acknowledges that the Employer reserves the right to change, modify or amend its policies from time to time at its sole discretion except as expressly identified in his/her executive offer letter dated October 2, 2009. |
5. | In consideration of the compensation paid the Employee in connection with his or her employment and the opportunity which such employment affords the Employee to become acquainted with the Employer’s business, including activities of the Employer in connection with engineering, research or development work, the Employee agrees: |
a. | To assign to the Employer (or any subsidiary of the Employer designated by the Employer) all rights to all patents, utility models, industrial designs, trademarks, service marks, semiconductor chip mask works and copyrights on all writings, designs, inventions and works that are conceived, made, invented or suggested during the term of employment and are connected with his or her work or are otherwise related to the business of the Employer. (The business of the Employer includes the business that exists or is anticipated at the time the rights come into existence.) |
b. | To promptly disclose such writings, designs, inventions and works to the Employer. |
c. | To sign, whether during or after employment, patent applications and other lawful papers that the Employer considers helpful to secure and enforce such rights. The Employer will bear all expense related to such activities. |
d. | That this agreement does not apply to an invention that the Employee developed entirely on his or her own time without using the Employer’s equipment, supplies, facilities, or trade secret information, except for those inventions that either relate at the time of conception or reduction to practice of the invention directly to the Employer’s business, or to actual or demonstrably anticipated research or development of the Employer, or result from any work performed by the Employee for the Employer. This agreement does not affect the Employer’s ownership of rights in works made for hire. |
e. | Not to disclose to the Employer, or use during employment for the Employer, any of his or her prior inventions that the Employer is not entitled to use or any proprietary information belonging to others (including his or her prior employers) unless prior written approval is obtained. This paragraph does not apply to inventions that the Employee was obligated to assign to General Motors Corporation prior to 1 January |
6. | The Employee acknowledges that, by virtue of his or her employment, he or she may become aware of certain proprietary or confidential information regarding the Employer, its customers and its suppliers. Employee acknowledges and agrees: |
a. | To abide by the Employer’s Information Security and Customer Protection (IS&C) policy, as the same may be amended from time to time. |
b. | To protect the business and technical information and other proprietary information created or obtained during employment from the Employer or any of its customers or suppliers. |
c. | To protect and not disclose to anyone, outside of the Employer, in any manner whatsoever, either in whole or in part, except as required to conduct the business of the Employer, any and all information and data of any nature, for any reason, relating to the products, processes, business work, design, methods, styling, inventions and facilities of the Employer, its customer or its suppliers, which the Employee may in any way acquire by reason of employment. The Employee acknowledges that this requirement pertains not only to information and data that is gained subsequent to this document, but also to any information and data that the Employee may have become aware of prior to the date of this document as part of employment with the Employer. The Employee agrees that this duty to not disclose information survives the termination of employment with the Employer or transfer of employment to another division, subsidiary or joint venture of the Employer. |
d. | That communication of information and data, within Employer, will be on a need-to-know basis. |
7. | The Employer and the Employee acknowledge that there are no other arrangements, agreements, or understandings, verbal or in writing, regarding same and that any modification or amendment hereof, other than a cancellation and replacement hereof by another written form of agreement, must be endorsed hereon in writing and initialed by both the Employee and the Employer. |