EX-10.27 9 a1027formofamended.htm EXHIBIT 10.27
Exhibit 10.27 (;FH[YZKWP(; ([KLELW $0(1'('$1'5(67$7(' &+$1*(2)&21752/(03/2<0(17$*5((0(17 AGREEMENT by and between BorgWarner Inc., a Delaware corporation (the “Company”) and WKH “Executive”) dated as of the GD\RI The Board of Directors of the Company (the “Board”), has determined that it is in the best interests of the &RPSDQ\DQGLWVVWRFNKROGHUVWRDVVXUHWKDWWKH&RPSDQ\ZLOOKDYHWKHFRQWLQXHGGHGLFDWLRQRIWKH([HFXWLYH QRWZLWKVWDQGLQJWKHSRVVLELOLW\WKUHDWRURFFXUUHQFHRID&KDQJHRI&RQWURODVGHILQHGEHORZ RIWKH&RPSDQ\7KH %RDUGEHOLHYHVLWLVLPSHUDWLYHWRGLPLQLVKWKHLQHYLWDEOHGLVWUDFWLRQRIWKH([HFXWLYHE\YLUWXHRIWKHSHUVRQDO uncertainties and risks created by a pending or threatened Change of Control and to encourage the Executive’s full DWWHQWLRQDQGGHGLFDWLRQWRWKH&RPSDQ\FXUUHQWO\DQGLQWKHHYHQWRIDQ\WKUHDWHQHGRUSHQGLQJ&KDQJHRI&RQWURO DQGWRSURYLGHWKH([HFXWLYHZLWKFRPSHQVDWLRQDQGEHQHILWVDUUDQJHPHQWVXSRQD&KDQJHRI&RQWUROZKLFKHQVXUH WKDWWKHFRPSHQVDWLRQDQGEHQHILWVH[SHFWDWLRQVRIWKH([HFXWLYHZLOOEHVDWLVILHGDQGZKLFKDUHFRPSHWLWLYHZLWK WKRVHRIRWKHUFRUSRUDWLRQV7KHUHIRUHLQRUGHUWRDFFRPSOLVKWKHVHREMHFWLYHVDQGLQFRQVLGHUDWLRQRIWKH Executive’s covenants in Section WKH%RDUGKDVFDXVHGWKH&RPSDQ\WRHQWHULQWRWKLV$JUHHPHQW 12:7+(5()25(,7,6+(5(%<$*5(('$6)2//2:6 &HUWDLQ'HILQLWLRQV D The “Effective Date” shall mean the first date during the Change of Control Period DVGHILQHGLQ6HFWLRQE RQZKLFKD&KDQJHRI&RQWURODVGHILQHGLQ6HFWLRQ RFFXUV$Q\WKLQJLQWKLV $JUHHPHQWWRWKHFRQWUDU\QRWZLWKVWDQGLQJLIL the Executive’s employment with the Company is terminated by WKH&RPSDQ\LL WKH'DWHRI7HUPLQDWLRQLVSULRUWRWKHGDWHRQZKLFKD&KDQJHRI&RQWURORFFXUVDQGLLL LWLV UHDVRQDEO\GHPRQVWUDWHGE\WKH([HFXWLYHWKDWVXFKWHUPLQDWLRQRIHPSOR\PHQW$ ZDVDWWKHUHTXHVWRIDWKLUG SDUW\WKDWKDVWDNHQVWHSVUHDVRQDEO\FDOFXODWHGWRHIIHFWD&KDQJHRI&RQWURORU% RWKHUZLVHDURVHLQFRQQHFWLRQ ZLWKRUDQWLFLSDWLRQRID&KDQJHRI&RQWUROWKHQIRUDOOSXUSRVHVRIWKLV$JUHH ment the “Effective Date” shall mean WKHGDWHLPPHGLDWHO\SULRUWRVXFK'DWHRI7HUPLQDWLRQ E The “Change of Control Period” shall mean the period commencing on the date hereof and ending on the WKLUGDQQLYHUVDU\RIWKHGDWHKHUHRISURYLGHG KRZHYHU WKDWFRPPHQFLQJRQWKHGDWHRQH\HDUDIWHUWKHGDWHKHUHRI DQGRQHDFKDQQXDODQQLYHUVDU\RIVXFKGDWHVXFKGDWHDQGHDFKDQQXDODQQLYHUVDU\WKHUHRIVKDOOEHKHUHLQDIWHU referred to as the “Renewal Date”), unless previously terminated, the Chan JHRI&RQWURO3HULRGVKDOOEH DXWRPDWLFDOO\H[WHQGHGVRDVWRWHUPLQDWHWKUHH\HDUVIURPVXFK5HQHZDO'DWHXQOHVVDWOHDVWGD\VSULRUWRWKH 5HQHZDO'DWHWKH&RPSDQ\VKDOOJLYHQRWLFHWRWKH([HFXWLYHWKDWWKH&KDQJHRI&RQWURO3HULRGVKDOOQRWEHVR H[WHQGHG &KDQJHRI&RQWURO . For the purpose of this Agreement, a “Change of Control” shall mean: D 7KHDFTXLVLWLRQE\DQ\LQGLYLGXDOHQWLW\RUJURXSZLWKLQWKHPHDQLQJRI6HFWLRQG RUG RI WKH6HFXULWLHV([FKDQJH$FWRIDV

amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of 5XOHG SURPXOJDWHGXQGHUWKH([FKDQJH$FW RIRUPRUHRIHLWKHUL WKHWKHQRXWVWDQGLQJVKDUHVRIFRPPRQVWRFNRI the Company (the “Outstanding Company Common Stock”) or (ii) WKHFRPELQHGYRWLQJSRZHURIWKHWKHQ RXWVWDQGLQJYRWLQJVHFXULWLHVRIW he Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); SURYLGHG KRZHYHU WKDWIRUSXUSRVHVRIWKLVVXEVHFWLRQD WKHIROORZLQJDFTXLVLWLRQV VKDOOQRWFRQVWLWXWHD&KDQJHRI&RQWURO: DQ\DFTXLVLWLRQGLUHFWO\IURPWKH&RPSDQ\; DQ\DFTXLVLWLRQE\WKH &RPSDQ\< DQ\DFTXLVLWLRQE\DQ\HPSOR\HHEHQHILWSODQRUUHODWHGWUXVW VSRQVRUHGRUPDLQWDLQHGE\WKH &RPSDQ\RUDQ\HQWLW\FRQWUROOHGE\WKH&RPSDQ\= DQ\DFTXLVLWLRQSXUVXDQWWRDWUDQVDFWLRQZKLFKFRPSOLHV ZLWKFODXVHVL LL DQGLLL RIVXEVHFWLRQF RIWKLV6HFWLRQ E Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason WRFRQVWLWXWHDWOHDVWDPDMRULW\RIWKH%RDUGSURYLGHG KRZHYHU WKDWDQ\LQGLYLGXDOEHFRPLQJDGLUHFWRUVXEVHTXHQW to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a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subsidiaries (each of the foregoing, a “Business Combination”), in each case, unless, following such Business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or substantially all of the Company’s assets eith HUGLUHFWO\RUWKURXJKRQHRUPRUHVXEVLGLDULHV LQVXEVWDQWLDOO\WKH VDPHSURSRUWLRQVDVWKHLURZQHUVKLSLPPHGLDWHO\SULRUWRVXFK%XVLQHVV&RPELQDWLRQRIWKH2XWVWDQGLQJ&RPSDQ\ &RPPRQ6WRFNDQG2XWVWDQGLQJ&RPSDQ\9RWLQJ6HFXULWLHVDVWKHFDVHPD\EHLL QR3HUVRQH[FOXGLQJDQ\ FRUSRUDWLRQUHVXOWLQJIURPVXFK%XVLQHVV&RPELQDWLRQRUDQ\HPSOR\HHEHQHILWSODQRUUHODWHGWUXVW RIWKH &RPSDQ\RUVXFKFRUSRUDWLRQUHVXOWLQJIURPVXFK%XVLQHVV&RPELQDWLRQ EHQHILFLDOO\RZQVGLUHFWO\RULQGLUHFWO\ RUPRUHRIUHVSHFWLYHO\WKHWKHQRXWVWDQGLQJVKDUHVRIFRPPRQVWRFNRUIRUDQRQFRUSRUDWHHQWLW\ HTXLYDOHQWVHFXULWLHV RIWKHHQWLW\UHVXOWLQJIURPVXFK%XVLQHVV&RPELQDWLRQRUWKHFRPELQHGYRWLQJSRZHURIWKH WKHQRXWVWDQGLQJYRWLQJVHFXULWLHVRIVXFKHQWLW\H[FHSWWRWKHH[WHQWWKDWVXFKRZQHUVKLSH[LVWHGSULRUWRWKH %XVLQHVV&RPELQDWLRQDQGLLL DWOHDVWDPDMRULW\RIWKHPHPEHUVRIWKHERDUGRIGLUHFWRUVRUIRUDQRQFRUSRUDWH HQWLW\HTXLYDOHQWJRYHUQLQJERG\ RIWKHHQWLW\UHVXOWLQJ

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date (the “Employment Period”). The Employment Period shall terminate upon the Executive’s termination of HPSOR\PHQWIRUDQ\UHDVRQ 7HUPVRI(PSOR\PHQW D 3RVLWLRQDQG'XWLHV L 'XULQJWKH(PSOR\PHQW3HULRG$ WKH([HFX tive’s SRVLWLRQLQFOXGLQJVWDWXVRIILFHVWLWOHVDQGUHSRUWLQJUHTXLUHPHQWV DXWKRULW\GXWLHVDQGUHVSRQVLELOLWLHVVKDOOEHDW OHDVWFRPPHQVXUDWHLQDOOPDWHULDOUHVSHFWVZLWKWKHPRVWVLJQLILFDQWRIWKRVHKHOGH[HUFLVHGDQGDVVLJQHGWRWKH ([HFXWLYHDWDQ\WLPHGXULQJWKHGD\SHULRGLPPHGLDWHO\SUHFHGLQJWKH(IIHFWLYH'DWHDQG% the Executive’s VHUYLFHVVKDOOEHSHUIRUPHGDWWKHORFDWLRQZKHUHWKH([HFXWLYHZDVHPSOR\HGLPPHGLDWHO\SUHFHGLQJWKH(IIHFWLYH 'DWHRUDQ\RIILFHRUORFDWLRQOHVVWKDQPLOHVIURPVXFKORFDWLRQ LL 'XULQJWKH(PSOR\PHQW3HULRGDQGH[FOXGLQJDQ\SHULRGVRIYDFDWLRQDQGVLFNOHDYHWRZKLFKWKH ([HFXWLYHLVHQWLWOHGWKH([HFXWLYHDJUHHVWRGHYRWHUHDVRQDEOHDWWHQWLRQDQGWLPHGXULQJQRUPDOEXVLQHVVKRXUVWR WKHEXVLQHVVDQGDIIDLUVRIWKH&RPSDQ\DQGWRWKHH[WHQWQHFHVVDU\WRGLVFKDUJHWKHUHVSRQVLELOLWLHVDVVLJQHGWRWKH Executive hereunder, to use the Executive’s reasonable best efforts to perform faithfully and efficiently such UHVSRQVLELOLWLHV'XULQJWKH(PSOR\PHQW3HULRGLWVKDOOQRWEHDYLRODWLRQRIWKLV$JUHHPHQWIRUWKH([HFXWLYHWR$ VHUYHRQFRUSRUDWHFLYLFRUFKDULWDEOHERDUGVRUFRPPLWWHHV% GHOLYHUOHFWXUHVIXOILOOVSHDNLQJHQJDJHPHQWVRU WHDFKDWHGXFDWLRQDOLQVWLWXWLRQVDQG& PDQDJHSHUVRQDOLQYHVWPHQWVVRORQJDVVXFKDFWLYLWLHVGRQRWVLJQLILFDQWO\ interfere with the performance of the Executive’s responsibilities as an employee of the Company in accordance ZLWKWKLV$JUHHPHQW,WLVH[SUHVVO\XQGHUVWRRGDQGDJUHHGWKDWWRWKHH[WHQWWKDWDQ\VXFKDFWLYLWLHVKDYHEHHQ FRQGXFWHGE\WKH([HFXWLYHSULRUWRWKH(IIHFWLYH'DWHWKHFRQWLQXHGFRQGXFWRIVXFKDFWLYLWLHVRUWKHFRQGXFWRI DFWLYLWLHVVLPLODULQQDWXUHDQGVFRSHWKHUHWR VXEVHTXHQWWRWKH(IIHFWLYH'DWHVKDOOQRWWKHUHDIWHUEHGHHPHGWR interfere with the performance of the Executive’s responsibilities to the Company. E &RPSHQVDWLRQ L %DVH6DODU\ 'XULQJWKH(PSOR\PHQW3HULRGWKH([HFXWLYHVKDOOUHFHLYHDQDQQXDOEDVH salary (“Annual Base Salary”), wh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

$JUHHPHQW$QQXDO%DVH6DODU\VKDOOQRWEHUHGXFHGDIWHUDQ\VXFKLQFUHDVHDQGWKHWHUP$QQXDO%DVH6DODU\DV XWLOL]HGLQWKLV$JUHHPHQWVKDOOUHIHUWR$QQXDO%DVH6DODU\DVVRLQFUHDVHG$VXVHGLQWKLV$JUHHPHQWWKHWHUP “affiliated companies” shall include any company controlled by, controlling or under common control with the &RPSDQ\ LL $QQXDO%RQXV ,QDGGLWLRQWR$QQXDO%DVH6DODU\WKH([HFXWLYHVKDOOEHDZDUGHGIRUHDFKILVFDO\HDU ending during the Employment Period, an annual bonus (the “Annual Bonus”) in cash at least equal to the Executive’s average of the bonuses paid or payable under the Company’s Management Incentive Bonus Plan, or any FRPSDUDEOHDQQXDOERQXVXQGHUDQ\SUHGHFHVVRURUVXFFHVVRUSODQLQUHVSHFWRIWKHODVWWKUHHIXOOILVFDO\HDUVSULRU WRWKH(IIHFWLYH'DWHRULIWKH([HFXWLYHZDVILUVWHPSOR\HGE\WKH&RPSDQ\DIWHUWKHEHJLQQLQJRIWKHHDUOLHVWRI VXFKWKUHHILVFDO\HDUVWKHDYHUDJHRIWKHERQXVHVSDLGRUSD\DEOHXQGHUVXFKSODQV LQUHVSHFWRIWKHILVFDO\HDUV HQGLQJEHIRUHWKH(IIHFWLYH'DWHGXULQJZKLFKWKH([HFXWLYHZDVHPSOR\HGE\WKH&RPSDQ\ZLWKVXFKERQXVEHLQJ DQQXDOL]HGZLWKUHVSHFWWRDQ\VXFKILVFDO\HDULIWKH([HFXWLYHZDVQRWHPSOR\HGE\WKH&RPSDQ\IRUWKHZKROHRI such fiscal year) (the “Recent Average Bonus”). If the Executive has not been eligible to earn such a bonus for any SHULRGSULRUWR the Effective Date, the “Recent Annual Bonus” shall mean the Executive’s target annual bonus for WKH\HDULQZKLFKWKH(IIHFWLYH'DWHRFFXUV(DFKVXFK$QQXDO%RQXVVKDOOEHSDLGQRODWHUWKDQWZRDQGDKDOI PRQWKVDIWHUWKHHQGRIWKHILVFDO\HDUIRUZKLFKWKH$QQXDO%RQXVLVDZDUGHGXQOHVVWKH([HFXWLYHVKDOOHOHFWWR GHIHUWKHUHFHLSWRIVXFK$QQXDO%RQXVSXUVXDQWWRDQDUUDQJHPHQWWKDWPHHWVWKHUHTXLUHPHQWVRI6HFWLRQ$RI the Internal Revenue Code of 1986, as amended (the “Code”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uring the Employment Period, the Executive and/or the Executive’s family, as WKHFDVHPD\EHVKDOOEHHOLJLEOHIRUSDUWLFLSDWLRQLQDQGVKDOOUHFHLYHDOOEHQHILWVXQGHUZHOIDUHEHQHILWSODQV SUDFWLFHVSROLFLHVDQGSURJUDPVSURYLGHGE\WKH&RPSDQ\DQGLWVDIILOLDWHGFRPSDQLHVLQFOXGLQJZLWKRXW OLPLWDWLRQPHGLFDOSUHVFULSWLRQGHQWDOGLVDELOLW\VDODU\FRQWLQXDQFHHPSOR\HHOLIHJURXSOLIHDFFLGHQWDOGHDWK and travel accident insurance plans and programs) (“Company Welfare Benefit Plans”) to the extent applicable JHQHUDOO\WRRWKHUSHHUH[HFXWLYHVRIWKH&RPSDQ\DQGLWVDIILOLDWHGFRPSDQLHVEXWLIWKH&RPSDQ\:HOIDUH%HQHILW 3ODQVSURYLGHWKH([HFXWLYHZLWKEHQHILWVZKLFKDUHOHVVIDYRUDEOHLQWKHDJJUHJDWHWKDQWKHPRVWIDYRUDEOHRIVXFK SODQVSUDFWLFHVSROLFLHVDQGSURJUDPVLQHIIHFWIRUWKH([HFXWLYHDWDQ\WLPHGXULQJWKHGD\SHULRGLPPHGLDWHO\ SUHFHGLQJWKH

Effective Date (the “Former Company Welfare Benefit Plans”), the Company shall provide the Executive with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he Executive’s employment shall terminate DXW omatically upon the Executive’s death during the Employment Period. If the Company determines in good faith WKDWWKH'LVDELOLW\RIWKH([HFXWLYHKDVRFFXUUHGGXULQJWKH(PSOR\PHQW3HULRGSXUVXDQWWRWKHGHILQLWLRQRI 'LVDELOLW\VHWIRUWKEHORZ LWPD\JLYHWRWKH([HFXWLYHZULWWHQQRWLFHLQDFFRUGDQFHZLWK6HFWLRQE RIWKLV Agreement of its intention to terminate the Executive’s employment.

In such event, the Executive’s employment with the Company shall terminate effective on the 30th day after receipt of such notice by the Executive (the “Disability Effective Date”), SURYLGHG WKDWZLWKLQWKHGD\VDIWHUVXFK UHFHLSWWKH([HFXWLYHVKDOOQRWKDYHUHWXUQHGWRIXOO time performance of the Executive’s duties. For purposes of this Agreement, “Disability” shall mean the absence of the Executive from the Executive’s duties ZLWKWKH&RPSDQ\RQ DIXOOWLPHEDVLVIRUFRQVHFXWLYHEXVLQHVVGD\VRUIRUEXVLQHVVGD\VLQDQ\FRQVHFXWLYHGD\V DVDUHVXOW RILQFDSDFLW\GXHWRPHQWDORUSK\VLFDOLOOQHVVZKLFKLVGHWHUPLQHGWREHWRWDODQGSHUPDQHQWE\DSK\VLFLDQVHOHFWHG by the Company or its insurers and acceptable to the Executive or the Executive’s legal representative. E &DXVH . The Company may terminate the Executive’s employment during the Employment Period with or ZLWKRXW&DXVH)RUSXUSRVHVRIWKLV$J reement, “Cause” shall mean: (i) the willful and continued failure of the Executive to perform substantially the Executive’s duties with the &RPSDQ\RURQHRILWVDIILOLDWHVRWKHUWKDQDQ\VXFKIDLOXUHUHVXOWLQJIURPLQFDSDFLW\GXHWRSK\VLFDORUPHQWDO illness or following the Executive’s delivery of a Notice of Termination for Good Reason), after a written demand IRUVXEVWDQWLDOSHUIRUPDQFHLVGHOLYHUHGWRWKH([HFXWLYHE\WKH%RDUGRUWKH&KLHI([HFXWLYH2IILFHURIWKH &RPSDQ\ZKLFKVSHFLILFDOO\LGHQWLILHVWKHPDQQHULQZKLFKWKH%RDUGRU&KLHI([HFXWLYH2IILFHURIWKH&RPSDQ\ believes that the Executive has not substantially performed the Executive’s duties, or LL WKHZLOOIXOHQJDJLQJE\WKH([HFXWLYHLQLOOHJDOFRQGXFWRUJURVVPLVFRQGXFWZKLFKLVPDWHULDOO\DQG GHPRQVWUDEO\LQMXULRXVWRWKH&RPSDQ\ For purposes of this provision, no act or failure to act, on the part of the Executive, shall be considered “willful” XQOHVVLWLVGRQHRURPLWWHGWREHGRQHE\WKH([HFXWLYHLQEDGIDLWKRUZLWKRXWUHDVRQDEOHEHOLHIWKDWWKH Executive’s action or omission was in the best interests of the Company. Any act, or failure to act, based upon DXWKRULW\JLYHQSXUVXDQWWRDUHVROXWLRQGXO\DGRSWHGE\WKH%RDUGRULIWKH&RPSDQ\LVQRWWKHXOWLPDWHSDUHQW HQWLW\DQGLVQRWSXEOLFO\WUDGHGWKHERDUGRIGLUHFWRUVRUIRUDQRQFRUSRUDWHHQWLW\HTXLYDOHQWJRYHUQLQJERG\ RI the ultimate parent of the Company (the “Applicable Board”)or upon the instructions of the Chief Executive Officer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

RSLQLRQRIWKH$SSOLFDEOH%RDUGWKH([HFXWLYHLVJXLOW\RIWKHFRQGXFWGHVFULEHGLQVXESDUDJUDSKL RULL DERYH DQGVSHFLI\LQJWKHSDUWLFXODUVWKHUHRILQGHWDLO F *RRG5HDVRQ . The Executive’s employment may be terminated by tKH([HFXWLYHIRU*RRG5HDVRQRUE\ the Executive voluntarily without Good Reason. For purposes of this Agreement, “Good Reason” shall mean: L WKHDVVLJQPHQWWRWKH([HFXWLYHRIDQ\GXWLHV inconsistent in any respect with the Executive’s position LQFOXGLQJVWDWXVRIILFHVWLWOHVDQGUHSRUWLQJUHTXLUHPHQWV DXWKRULW\GXWLHVRUUHVSRQVLELOLWLHVDVFRQWHPSODWHGE\ 6HFWLRQD RIWKLV$JUHHPHQWRUDQ\RWKHUGLPLQXWLRQLQVXFKSRVLWLRQDXWKRULW\GXWLHVRUUHVSRQVLELOLWLHV (whether or not occurring solely as a result of the Company’s ceasing to be a publicly traded entity), excluding for WKLVSXUSRVHDQLVRODWHGLQVXEVWDQWLDODQGLQDGYHUWHQWDFWLRQQRWWDNHQLQEDGIDLWKDQGZKLFKLVUHPHGLHGE\WKH &RPSDQ\SURPSWO\DIWHUUHFHLSWRIQRWLFHWKHUHRIJLYHQE\WKH([HFXWLYH LL DQ\IDLOXUHE\WKH&RPSDQ\WRFRPSO\ZLWKDQ\RIWKHSURYLVLRQVRI6HFWLRQE RIWKLV$JUHHPHQWRWKHU WKDQDQLVRODWHGLQVXEVWDQWLDODQGLQDGYHUWHQWIDLOXUHQRWRFFXUULQJLQEDGIDLWKDQGZKLFKLVUHPHGLHGE\WKH &RPSDQ\SURPSWO\DIWHUUHFHLSWRIQRWLFHWKHUHRIJLYHQE\WKH([HFXWLYH (iii) the Company’s requiring the Executive to be based at any office or location other than as provided in 6HFWLRQ 4(a)(i)(B) hereof or the Company’s requiring the Executive to travel on Company business to a substantially JUHDWHUH[WHQWWKDQUHTXLUHGLPPHGLDWHO\SULRUWRWKH(IIHFWLYH'DWH LY DQ\SXUSRUWHGWHUPLQDWLRQE\WKH&RPSDQ\RIWKH([HFXWLYH ’s employment otherwise than as expressly SHUPLWWHGE\WKLV$JUHHPHQWRU Y DQ\IDLOXUHE\WKH&RPSDQ\WRFRPSO\ZLWKDQGVDWLVI\6HFWLRQF RIWKLV$JUHHPHQW )RUSXUSRVHVRIWKLV6HFWLRQ 5(c), any good faith determination of “Good Reason” made by the Executive shall be FRQFOXVLYH G ,QFDSDFLW\ . The Executive’s mental or physical incapacity following the occurrence of an event described DERYHLQFODXVHVL WKURXJKY of Section 5(c) shall not affect the Executive’s ability t RWHUPLQDWHHPSOR\PHQWIRU Good Reason and the Executive’s death following delivery of a Notice of Termination for Good Reason shall not DIIHFWWKHHQWLWOHPHQWRIWKHHVWDWHRIWKH([HFXWLYHWRVHYHUDQFHSD\PHQWVRUEHQHILWVSURYLGHGKHUHXQGHUXSRQD WHUPLQDWLRQRIHPSOR\PHQWIRU*RRG5HDVRQ H 1RWLFHRI7HUPLQDWLRQ $Q\WHUPLQDWLRQRIHPSOR\PHQWE\WKH&RPSDQ\IRU&DXVHRUE\WKH([HFXWLYH IRU*RRG5HDVRQVKDOOEHFRPPXQLFDWHGE\1RWLFHRI7HUPLQDWLRQWRWKHRWKHUSDUW\KHUHWRJLYHQLQDFFRUGDQFH with Section 12(b) of this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written QRWLFHZKLFKL LQGLFDWHVWKHVSHFLILFWHUPLQDWLRQSURYLVLRQLQWKLV$JUHHPHQW

UHOLHGXSRQLL WRWKHH[WHQWDSSOLFDEOHVHWVIRUWKLQUHDVRQDEOHGHWDLOWKHIDFWVDQGFLUFXPVWDQFHVFODLPHGWR provide a basis for termination of the Executive’ VHPSOR\PHQWXQGHUWKHSURYLVLRQVRLQGLFDWHGDQGLLL LIWKH'DWH RI7HUPLQDWLRQDVGHILQHGEHORZ LVRWKHUWKDQWKHGDWHRIUHFHLSWRIVXFKQRWLFHVSHFLILHVWKH'DWHRI7HUPLQDWLRQ ZKLFKGDWHVKDOOEHQRWPRUHWKDQWKLUW\GD\VDIWHUWKHJLYLQJRIVXFKQRWLFH 7KHIDLOXUHE\WKH([HFXWLYHRUWKH &RPSDQ\WRVHWIRUWKLQWKH1RWLFHRI7HUPLQDWLRQDQ\IDFWRUFLUFXPVWDQFHZKLFKFRQWULEXWHVWRDVKRZLQJRI*RRG 5HDVRQRU&DXVHVKDOOQRWZDLYHDQ\ULJKWRIWKH([HFXWLYHRUWKH&RPSDQ\UHVSHFWLYHO\KHUHXQGHURUSUHFOXGHWKH Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder. I 'DWHRI7HUPLQDWLRQ . “Date of Termination” means (i) if the Executive’s empl R\PHQWLVWHUPLQDWHGE\WKH &RPSDQ\IRU&DXVHRUE\WKH([HFXWLYHIRU*RRG5HDVRQWKHGDWHRIUHFHLSWRIWKH1RWLFHRI7HUPLQDWLRQRUDQ\ later date specified therein, as the case may be, (ii) if the Executive’s employment is terminated by the Company RWKHUWKDQIRU&DXVHRU'LVDELOLW\WKHGDWHRQZKLFKWKH&RPSDQ\QRWLILHVWKH([HFXWLYHRIVXFKWHUPLQDWLRQLLL LI WKH([HFXWLYHUHVLJQVZLWKRXW*RRG5HDVRQWKHGDWHRQZKLFKWKH([HFXWLYHQRWLILHVWKH&RPSDQ\RIVXFK WHUPLQDWLRQDQGLY LIWKH([HFXWL ve’s employment is terminated by reason of death or Disability, the date of death RIWKH([HFXWLYHRUWKH'LVDELOLW\(IIHFWLYH'DWHDVWKHFDVHPD\EH1RWZLWKVWDQGLQJWKHIRUHJRLQJLQQRHYHQW VKDOOWKH'DWHRI7HUPLQDWLRQRFFXUXQWLOWKH([HFXWLYHH[SH riences a “separation from service” within the meaning RI6HFWLRQ$RIWKH&RGHDQGQRWZLWKVWDQGLQJDQ\WKLQJFRQWDLQHGKHUHLQWRWKHFRQWUDU\WKHGDWHRQZKLFKVXFK separation from service takes place shall be the “Date of Termination.” 2EOLJDWLRQVRIWKH&RPSDQ\XSRQ7HUPLQDWLRQ D *RRG5HDVRQ2WKHU7KDQIRU&DXVH'HDWKRU 'LVDELOLW\ . If, during the Employment Period, the Company shall terminate the Executive’s employment other than IRU&DXVH'HDWKRU'LVDELOLW\RUWKH([HFXWLYHVKDOOWHUPLQDWHHPSOR\PHQWIRU*RRG5HDVRQ L WKH&RPSDQ\VKDOOSD\WRWKH([HFXWLYHLQDOXPSVXPLQFDVKZLWKLQGD\VDIWHUWKH'DWHRI7HUPLQDWLRQ WKHDJJUHJDWHRIWKHIROORZLQJDPRXQWV $ WKHVXPRI the Executive’s Annual B DVH6DODU\WKURXJKWKH'DWHRI7HUPLQDWLRQWRWKHH[WHQWQRW WKHUHWRIRUHSDLG the Executive’s business expenses that are reimbursable pursuant to Section E Y EXWKDYH QRWEHHQUHLPEXUVHGE\WKH&RPSDQ\DVRIWKH'DWHRI7HUPLQDWLRQ WKH([HFXW ive’s Annual Bonus for the fiscal \HDULPPHGLDWHO\SUHFHGLQJWKHILVFDO\HDULQZKLFKWKH'DWHRI7HUPLQDWLRQRFFXUVLIVXFKERQXVKDVEHHQ GHWHUPLQHGEXWQRWSDLGDVRIWKH'DWHRI7HUPLQDWLRQ DQ\DFFUXHGYDFDWLRQSD\WRWKHH[WHQWQRWWKHUHWRIRUH SDLGWKHVXPRIWKHDPRXQWVGHVFULEHGLQVXEFODXVHV and (4), the “Accrued Obligations”) and (5) DQ DPRXQWHTXDOWRWKHSURGXFWRI[ WKH5HFHQW$YHUDJH%RQXVDQG\ DIUDFWLRQWKHQXPHUDWRURIZKLFKLVWKH QXPEHURIGD\VLQWKHFXUUHQWILVFDO\HDUWKURXJKWKH'DWHRI7HUPLQDWLRQDQGWKHGHQRPLQDWRURIZKLFKLVWKH “Pro Rata Bonus”); SURYLGHG WKDWQRWZLWKVWDQGLQJWKHIRUHJRLQJLIWKH([HFXWLYHKDVPDGHDQLUUHYRFDEOHHOHFWLRQ XQGHUDQ\GHIHUUHGFRPSHQVDWLRQDUUDQJHPHQWVXEMHFWWR6HFWLRQ$RIWKH&RGHWRGHIHUDQ\SRUWLRQRIWKH $QQXDO%DVH6DODU\RUWKH$QQXDO%RQXVGHVFULEHGLQFODXVHV RU DERYH

WKHQIRUDOOSXUSRVHVRIWKLV6HFWLRQLQFOXGLQJZLWKRXWOLPLWDWLRQ6HFWLRQVE WKURXJKG VXFKGHIHUUDO HOHFWLRQDQGWKHWHUPVRIWKHDSSOLFDEOHDUUDQJHPHQWVKDOODSSO\WRWKHVDPHSRUWLRQRIWKHDPRXQWGHVFULEHGLQVXFK FODXVH or clause (3), and such portion shall not be considered as part of the “Accrued Obligations” but shall instead be an “Other Benefit” (as defined below); and % WKHDPRXQWHTXDOWRWKHSURGXFWRI >WZRWKUHH@DQG WKHVXPRI (x) the Executive’s Annual Base 6DODU\DQG\ WKH5HFHQW$YHUDJH%RQXVDQG & DQDPRXQWHTXDOWRWKHSURGXFWRI >WZRWKUHH@DQG WKHVXPRID WKH&RPSDQ\5HWLUHPHQW &RQWULEXWLRQVDVGHILQHGLQWKH%RUJ:DUQHU,QF5HWLUHPHQW6D vings Plan (“RSP”)) that would have been made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b)(ii) of this Agreement (“Limitations” meaning limitations contained in the RSP, the Em SOR\HH Retirement Income Security Act (“ERISA”) or the Code (including without limitation the $150,000 cap on &RPSHQVDWLRQ (ii) for two years following the Date of Termination (the “Benefits Period”), the Company shall provide the ([HFXWLYH and his eligible dependents with medical and dental insurance coverage (the “Health Care Benefits”) and OLIHLQVXUDQFHEHQHILWVQROHVVIDYRUDEOHWRWKRVHZKLFKWKH([HFXWLYHDQGKLVVSRXVHDQGHOLJLEOHGHSHQGHQWVZHUH UHFHLYLQJLPPHGLDWHO\SULRUWRWKH'DWHRI7HUPLQDWLRQRULIPRUHIDYRUDEOHWRVXFKSHUVRQVDVLQHIIHFWJHQHUDOO\ DWDQ\WLPHWKHUHDIWHUZLWKUHVSHFWWRRWKHUSHHUH[HFXWLYHVRIWKH&RPSDQ\DQGWKH$IILOLDWHG&RPSDQLHVSURYLGHG KRZHYHU WKDWWKH+HDOWK&DUH%HQHILWVVKDOOEHSURYLGHGGXULQJWKH%HQHILWV3HULRGLQVXFKDPDQQHUWKDWVXFK benefits are excluded from the Executive’s income for federal income tax purposes; SURYLGHG IXUWKHU KRZHYHU WKDW LIWKH([HFXWLYHEHFRPHVUHHPSOR\HGZLWKDQRWKHUHPSOR\HUDQGLVHOLJLEOHWRUHFHLYHKHDOWKFDUHEHQHILWVXQGHU DQRWKHUHPSOR\HUSURYLGHGSODQWKHKHDOWKFDUHEHQHILWVSURYLGHGKHUHXQGHUVKDOOEHVHFRQGDU\WRWKRVHSURYLGHG XQGHUVXFKRWKHUSODQGXULQJVXFKDSSOLFDEOHSHULRGRIHOLJLELOLW\7KHUHFHLSWRIWKH+HDOWK&DUH%HQHILWVVKDOOEH FRQGLWLRQHGXSRQWKH([HFXWLYHFRQWLQXLQJWRSD\WKH$SSOLFDEOH&REUD3UHPLXPZLWKUHVSHFWWRWKHOHYHORI coverage that the Executive has elected for the Executive and the Executive’s spouse and eligible dependents ( e.g. VLQJOHVLQJOHSOXVRQHRUIDPLO\ 'XULQJWKHSRUWLRQRIWKH%HQHILWV3HULRGLQZKLFKWKH([HFXWLYHDQGKLVHOLJLEOH GHSHQGHQWVFRQWLQXHWRUHFHLYHFRYHUDJHXQGHUWKH

Company’s Health Care Benefits plans, the Company shall pay to the Executive a monthly amount equal to the $SSOLFDEOH&2%5$3UHPLXPLQUHVSHFWRIWKHPD[LPXPOHYHORIFRYHUDJHWKDWWKH([HFXWLYHFRXOGKDYHHOHFWHGWR receive for the Executive and the Executive’s spouse and eligible dependents if the Executive were still an employee RIWKH&RPSDQ\GXULQJWKH%HQHILWV3HULRG e.g. VLQJOHVLQJOHSOXVRQHRUIDPLO\ UHJDUGOHVVRIZKDWOHYHORI FRYHUDJHLVDFWXDOO\HOHFWHGZKLFKSD\PHQWVKDOOEHSDLGLQDGYDQFHRQWKHILUVWSD\UROOGD\RIHDFKPRQWK commencing with the month immediately following the Executive’s Date of Termination. The Company shall use LWVUHDVRQDEOHEHVWHIIRUWVWRHQVXUHWKDWIROORZLQJWKHHQGRI the Benefit Period, the Executive and the Executive’s VSRXVHDQGHOLJLEOHGHSHQGHQWVVKDOOEHHOLJLEOHWRHOHFWFRQWLQXHGKHDOWKFRYHUDJHSXUVXDQWWR6HFWLRQ%RIWKH Code or other applicable law (“COBRA Coverage”), as if the Executive’s employment wi WKWKH&RPSDQ\KDG WHUPLQDWHGDVRIWKHHQGRIVXFKSHULRG)RUSXUSRVHVRIGHWHUPLQLQJHOLJLELOLW\EXWQRWWKHWLPHRIFRPPHQFHPHQW of benefits) of the Executive for retiree welfare benefits pursuant to the Company’s retiree welfare benefit plans, if DQ\WKH([HFXWLYHVKDOOEHFRQVLGHUHGWRKDYHUHPDLQHGHPSOR\HGXQWLOWKHHQGRIWKH%HQHILW3HULRGDQGWRKDYH retired on the last day of such period. For purposes of this Provision, “Applicable COBRA Premium” means the PRQWKO\SUHPLXPLQHIIHFWIURPWLPHWRWLPHIRUFRYHUDJHSURYLGHGWRIRUPHUHPSOR\HHVXQGHU6HFWLRQ%RI WKH&RGHDQGWKHUHJXODWLRQVWKHUHXQGHUZLWKUHVSHFWWRDSDUWLFXODUOHYHORIFRYHUDJH e.g. VLQJOHVLQJOHSOXVRQHRU IDPLO\ LLL WKH&RPSDQ\VKDOODWLWVVROHH[SHQVHDVLQFXUUHGSURYLGHWKH([HFXWLYHZLWKRXWSODFHPHQWVHUYLFHVWKH scope and provider of which shall be selected by the Executive in the Executive’s sole discretion, but the cost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referred to as the “Other Benefits”) in accordance with the terms of the underlying plans or agreements. 1RWZLWKVWDQGLQJWKHIRUHJRLQJSURYLVLRQVRI6HFWLRQD L DQG6HFWLRQD LL LQWKHHYHQWWKDWWKH([HFXWLYHLVD “specified employee” within the meaning of Section $RIWKH&RGHDVGHWHUPLQHGLQDFFRUGDQFHZLWKWKH PHWKRGRORJ\HVWDEOLVKHGE\WKH&RPSDQ\DVLQH ffect on the Date of Termination) (a “Specified Employee”), amounts that constitute “nonqualified deferred compensation” within the meaning of Section $RIWKH&RGHWKDW ZRXOGRWKHUZLVHEHSD\DEOHDQGEHQHILWVWKDWZRXOGRWKHUZLVHEHSURYLGHGXQGHU6HFWLRQD L RU6HFWLRQD LL GXULQJWKHVL[PRQWKSHULRGLPPHGLDWHO\IROORZLQJWKH'DWHRI7HUPLQDWLRQRWKHUWKDQWKH$FFUXHG2EOLJDWLRQV VKDOOLQVWHDGEHSDLGZLWKLQWHUHVWRQDQ\GHOD\HGSD\PHQWDWWKHDSSOLFDEOHIHGHUDOUDWHSURYLGHGIRULQ 6HFWLRQ 7872(f)(2)(A) of the Code (“Interest”) determined as of the Date of Termination,

RUSURYLGHGRQWKHILU st business day after the date that is six months following the Executive’s Date of Termination (the “Delayed Payment Date”); E 'HDWK . If the Executive’s employment is terminated by reason of the Executive’s death during the (PSOR\PHQW3HULRG the Company shall provide the Executive’s estate or beneficiaries with the Accrued Obligations DQGWKH3UR5DWD%RQXVDQGWKHWLPHO\SD\PHQWRUGHOLYHU\RIWKH2WKHU%HQHILWVDQGVKDOOKDYHQRRWKHUVHYHUDQFH REOLJDWLRQVXQGHUWKLV$JUHHPHQW7KH$FFUXHG2EOLJDWLRQVVXEMHFWWRWKHSURYLVRVHWIRUWKLQ6HFWLRQD $ WR the extent applicable) and the Pro Rata Bonus shall be paid to the Executive’s estate or beneficiary, as applicable, in DOXPSVXPLQFDVKZLWKLQGD\VRIWKH'DWHRI7HUPLQDWLRQ:LWKUHVSHFWWRWKHSURYLVLRQRIWKH2WKHU%HQHILWV the term “Other Benefits” as utilized in this Section 6(b) shall include, without limitation, and the Executive’s estate DQGRUEHQHILFLDULHVVKDOOEHHQWLWOHGWRUHFHLYHEHQHILWVHLWKHUSXUVXDQWWRDSODQSURJUDPSUDFWLFHRUSROLF\RUDQ LQGLYLGXDODUUDQJHPHQW DWOHDVWHTXDOWRWKHPRVWIDYRUDEOHEHQHILWVSURYLGHGE\WKH&RPSDQ\DQGWKHDIILOLDWHG FRPSDQLHVWRWKHHVWDWHVDQGEHQHILFLDULHVRISHHUH[HFXWLYHVRIWKH&RPSDQ\DQGVXFKDIILOLDWHGFRPSDQLHVXQGHU VXFKSODQVSURJUDPVSUDFWLFHVDQGSROLFLHVUHODWLQJWRGHDWKEHQHILWVLIDQ\DVLQHIIHFWZLWKUHVSHFWWRRWKHUSHHU H[HFXWLYHVDQGWKHLUEHQHILFLDULHVDWDQ\WLPHGXULQJWKHGD\SHULRGLPPHGLDWHO\SUHFHGLQJWKH(IIHFWLYH'DWH RULIPRUHI avorable to the Executive’s estate and/or the Executive’s beneficiaries, as in effect on the date of the Executive’s death with respect to other peer executives of the Company and its affiliated companies and their EHQHILFLDULHV F 'LVDELOLW\ If the Executive’s employment is terminated by reason of the Executive’s Disability during the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ayment Date. With respect to the provision of the Other Benefits, the term “Other Benefits” as utilized in this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favorable to the Executive and/or the Executive’s IDPLO\DVLQHIIHFWDWDQ\WLPHWKHUHDIWHUJHQHUDOO\ZLWKUHVSHFWWRRWKHUSHHUH[HFXWLYHVRIWKH&RPSDQ\DQGWKH DIILOLDWHGFRPSDQLHVDQGWKHLUIDPLOLHV G &DXVH2WKHUWKDQIRU*RRG5HDVRQ If the Executive’s employment is terminated for Cause during the Employment Period, the Company shall provide the Executive with the Executive’s Annual Base Salary (subject to WKHSURYLVRVHWIRUWKLQ6HFWLRQD $ WRWKHH[WHQWDSSOLFDEOH WKURXJKWKH'DWHRI7HUPLQDWLRQDQGWKHWLPHO\ SD\PHQWRUGHOLYHU\RIWKH2WKHU%HQHILWVDQGVKDOOKDYHQRRWKHU

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