Form of Executive Officer Severance Agreement - Version 1



 EXHIBIT 10.1 
  
                     , 2004 
  
 (Addressee) 
  
 Re:     Executive Officer Severance Agreement 
  
 Dear (Addressee): 
  
 [This paragraph is used when there was a prior Severance Agreement.] Reference is made to the agreement between us, dated
                    ,          (the “Prior Agreement”), setting forth the extent to
which benefits will be provided to you in the event of termination, under certain circumstances, of your employment with AK Steel Corporation (the “Company”), AK Steel Holding Corporation (“Holding”) or any of their respective
subsidiaries, affiliates, or successors (hereinafter collectively referred to as “AKS”). Upon your execution of this letter agreement (the “Agreement”), the Prior Agreement shall be deemed superseded in its entirety and no longer
in effect. This Agreement sets forth your obligations and commitments in exchange for continued employment with AKS, the compensation and benefits you receive during such employment, and the promise and/or receipt of severance benefits if your
employment terminates under certain circumstances. It establishes time limits for asserting certain claims under this Agreement or arising out of your employment relationship with AKS. It also requires that certain claims be resolved through
arbitration rather than through litigation. This Agreement is not, however, an employment agreement and nothing in this Agreement shall be construed as a contract or promise of continued employment with AKS. As an “at-will” employee, your
employment may be terminated by you or AKS at any time. 
  
 [This paragraph
is used when there was no prior Severance Agreement.] This letter agreement (the “Agreement”) sets forth the extent to which benefits will be provided to you in the event of termination, under certain circumstances, of your
employment with AK Steel Corporation (the “Company”), AK Steel Holding Corporation or any of their respective subsidiaries, affiliates, or successors (hereinafter collectively referred to as “AKS”). It further sets forth your
obligations and commitments in exchange for continued employment with AKS, the compensation and benefits you receive during such employment, and the promise and/or receipt of severance benefits if your employment terminates under certain
circumstances. It establishes time limits for asserting certain claims under this Agreement or arising out of your employment relationship with AKS. It also requires that certain claims be resolved through arbitration rather than through litigation.
This Agreement is not, however, an employment agreement and nothing in this Agreement shall be construed as a contract or promise of continued employment with AKS. As an “at-will” employee, your employment may be terminated by you or AKS
at any time. 
  
 A. Effective Date; Term; Renewal. This Agreement is
effective as of                     , 2004 (the “Effective Date”). Except for the Change of Control Agreement between you and AKS
dated                     , 2004 (“Change of Control Agreement”), this Agreement supercedes any other severance agreement between
you and AKS, and any severance plan, arrangement, policy or practice of AKS. The term of this Agreement shall be the five-year 







 period beginning on the Effective Date and ending on the fifth anniversary of the Effective Date. This Agreement shall be
automatically renewed annually thereafter for a renewal period of one year, unless written notice of non-renewal is given by you or by AKS at least ninety days prior to the expiration of the term, including any renewal periods. Notwithstanding the
expiration of this Agreement, the terms of Sections F, G and H (including Exhibit A) shall continue to be effective to the extent and as stated therein. 
  
 B. Date of Termination; Notice Period; Severance Pay Period. The date upon which the termination of your employment becomes effective is referred to
in this Agreement as your “Date of Termination.” The period between the date a party provides notice of termination under this Agreement and the Date of Termination is referred to as the “Notice Period.” AKS may relieve you of
your employment duties at any time during a Notice Period; provided however, during any Notice Period, you shall continue to receive your full salary and Employment Benefits (as defined in Section E(2)(c) below). The period of time after your Date
of Termination equal to the number of months of base salary paid to you under this Agreement as severance benefits is referred to as the “Severance Pay Period.” 
  
 C. Circumstances of Termination Covered by this Agreement. While the Change of Control Agreement applies to the termination of
your employment with AKS under certain circumstances involving a Change of Control (as defined in such agreement), this Agreement applies to the termination of your employment with AKS under the following circumstances not involving a Change of
Control: 
  
 1. Involuntary Termination without
Cause. AKS may terminate your employment without Cause at any time upon written notice given to you by AKS not less than thirty days prior to the Date of Termination. 

	

  
 2.
Involuntary Termination for Cause. AKS may terminate your employment for Cause, but only upon written notice specifying the facts or circumstances constituting such Cause, which notice may be given on or at any time prior to the Date of
Termination. The following circumstances shall constitute “Cause” for purposes of this Agreement: (a) you are convicted of, or enter a plea of guilty or nolo contendere, to a misdemeanor involving moral turpitude or to a felony, (b) you
engage in fraud, misappropriation or embezzlement with respect to AKS, (c) your willful failure, gross negligence or gross misconduct in the performance of your assigned duties for AKS, and (d) your breach of a fiduciary duty to AKS. 
  
 3. Voluntary Termination. You may voluntarily terminate
your employment upon written notice given to AKS by you not less than thirty days prior to the Date of Termination. 
  
 D. Circumstances of Termination Not Covered by this Agreement. This Agreement does not provide severance benefits for, nor, as the case may
be, affect the benefits you otherwise may receive outside of this Agreement in connection with the termination of your employment with AKS for reasons relating to: (1) your early or normal retirement from AKS under the terms of any tax-qualified
“pension benefit plan” as defined in the Employee Retirement Income Security Act of 1974, as amended (“ERISA”); (2) total and permanent 
  

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 disability under the AKS long-term disability plan or policy; or (3) your death. Nothing in this Agreement shall affect
your rights under any such “pension benefit plan”; any “welfare benefit plan” as defined in ERISA, including but not limited to any medical, surgical, hospitalization, or long-term disability benefits; or any non-qualified
pension or deferred compensation plan or arrangement. 
  
 E. Severance
Benefits. 
  
 1. Basic Severance Benefits.
If your employment with AKS is involuntarily terminated without Cause pursuant to Section C(1), AKS will pay you, regardless of whether or not you execute a Release of Claims (as defined in Section E(2) below), severance pay equal to your base
salary for a period of six months from your Date of Termination. The aggregate of such severance pay shall be paid to you in a single, undiscounted, lump sum payment within ten days following the Date of Termination unless you previously have
requested in writing to receive such amount in regular monthly payments during the Severance Pay Period. 
  
 2. Supplemental Severance Benefits. If your employment with AKS is involuntarily terminated without Cause pursuant to Section C(1), and you
execute and provide to AKS a complete and full release of all claims against AKS that is in a form reasonable and customary (“Release of Claims”), then you shall be entitled, in addition to the severance pay provided under Section E(1), to
the following supplemental benefits: 
  
 a.
Additional Base Salary. Severance pay based upon your base salary shall be paid for an additional eighteen months beyond the period paid pursuant to Section E(1). Such additional base salary payable as severance shall be paid to you in a
single, undiscounted, lump sum payment within ten days following the Date of Termination unless you previously have requested in writing to receive such amount in regular monthly payments during the Severance Pay Period. 
  
 b. MIP Payment. You will receive a lump-sum
payment equal to one and two times your assigned target amount under the AK Steel Corporation Annual Management Incentive Plan (“MIP”) for the calendar year during which your Date of Termination occurs, less any amount otherwise paid (or
payable) to you under the MIP with respect to such calendar year. Payment of this lump sum amount will be made within ten days after the effective date of your Release of Claims. 
  
 c. Employment Benefits. During the Severance Pay Period, your Employment Benefits (as defined
below) shall continue; provided, however, that you shall not: 
  
 i. accumulate vacation pay for periods after the Date of Termination; 
  

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 ii. qualify during the Severance Pay Period for sickness and accident, salary
continuation, and long-term disability plan benefits if you were not eligible for these benefits on the Date of Termination; 
  
 iii. be eligible to continue to make contributions to any Internal Revenue Code § 401(k) plan maintained by AKS or qualify for
a share of any employer contribution made to any tax-qualified defined contribution plan; or 
  
 iv. be eligible to accumulate service for pension plan purposes; and 
  
 provided, further, that if, during the Severance Pay Period, you are eligible to receive life insurance, medical, hospital
and other health insurance benefits (“Life and Health Insurance”) either based upon employment with another employer or based upon benefits available to you as a retiree of another employer, the obligations of AKS to continue to provide
you with Life and Health Insurance shall be limited solely to those benefits necessary to assure that, together with the corresponding benefits provided to you under any other plans, you receive total benefits comparable to those to which you were
entitled at the Date of Termination. You must report to the Vice President, Human Resources of the Company your eligibility for another employer’s active or retiree Life and Health Insurance within ten days after becoming eligible. 

 
 “Employment Benefits” means the employee benefit plans,
policies, and practices of AKS (excluding any severance policies and practices other than this Agreement) that generally apply to executive officers of AKS in accordance with the terms thereof as they may be amended from time to time. It is
expressly understood and agreed that the AK Steel Corporation Executive Minimum and Supplemental Retirement Plan is not an Employment Benefit as defined in this section. Your Employment Benefits may be modified from time to time after the date
hereof without violation of this Agreement if the changes apply generally to other members of management of AKS. 
  
 d. COBRA. You shall qualify for full COBRA health benefit continuation coverage upon the expiration of the Severance Pay
Period. 
  
 3. Mitigation. You shall not be required
to mitigate the amount of any payment provided for in this Section E by seeking other employment or otherwise, nor shall the amount of any such payment or benefits be reduced by any compensation or benefits earned by you as the result of employment
by another employer (except as expressly provided in Section E(2)(c)) or by retirement benefits, or be offset against any amount claimed to be owed by you to AKS. 
  
 4. Deferrals. For purposes of calculating any amount due under this Agreement, the effect of any deferral of
income shall be disregarded and all sums due shall be calculated as if no such deferral had been made. 
  

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 5. No Duplication of Benefits. You shall not be entitled to severance benefits both under
this Agreement and under the Change of Control Agreement in connection with the termination of your employment with AKS. 
  
 6. Involuntary Termination for Cause; Voluntary Termination. In the event your employment with AKS ends as a result of involuntary
termination for Cause pursuant to Section C(2) or voluntary termination pursuant to Section C(3), you shall not be entitled to any benefits under this Agreement, but you nevertheless shall be eligible for any benefits provided in accordance with the
plans and practices which apply to employees generally. 
  
 F.
Executive Responsibilities. 
  
 1.
Confidentiality. During your employment with AKS and subsequent to the termination of that employment for any reason, you will not disclose to any person or use for the benefit of yourself or any other person or entity any trade secret,
proprietary or other confidential information of AKS (hereinafter referred to as “AKS Confidential Information”) without the prior written consent of the Vice President, Human Resources of the Company. Upon your termination of employment
with the Company for any reason, you will immediately deliver to AKS any and all AKS Confidential Information which you have in your possession or control in tangible form. For purposes of this Section F, it is expressly understood and agreed that
the term AKS Confidential Information shall include, but not be limited to, all information not already in the public domain relating to AKS operating practices and procedures, customer lists, product marketing, sales, sales prices, costs, margins,
discounts, rebates, profits, shipments, product mix, research, technical support, business plans and operating results. You will deliver this AKS Confidential Information to AKS in whatever format in which you have it, including but not limited to
paper, disk, hard drive, tape, electronic storage, Palm Pilot or other PDA, or CD-ROM. You will also deliver to AKS any and all AKS property, including but not limited to, company credit cards, property access keys and cards, planners, day books,
customer lists, laboratory notebooks, cellular/digital phones, computers, software, and Palm Pilots (or other PDA). You agree that you remain bound by the Employee Invention and Confidential Information Agreement which you executed. 
  
 2. Covenant Not to Compete. In exchange for AKS’s
agreement to provide you with the severance benefits opportunities set out in this Agreement (including, in particular, the opportunity to receive the severance pay set out at Section E(1) of this Agreement) and the compensation provided to you as
an executive officer, you agree that, during your employment at AKS and for a period of one year following the termination of your employment with AKS for any reason, you agree not to be employed by, or serve as a director of or consultant or
advisor to, any business engaged directly or indirectly in the melting, hot rolling, cold rolling, or coating of carbon, electrical or stainless steel, or in the manufacturing of steel pipe and tubing products, or that has an intent or plan to
engage in such business during the one-year period following the date when your employment with AKS terminates. 
  
 3. Non-Solicitation. During your employment at AKS and for a period of five years following the termination of your employment with AKS for
any reason, you agree that 
  

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 you will not solicit directly or cause or encourage another person or entity to solicit any employee of AKS for
employment by any entity which is engaged directly or indirectly in the melting, hot rolling, cold rolling, or coating of carbon, electrical or stainless steel, or in the manufacturing of steel pipe and tubing products or that is reasonably likely
to engage in such business during the one year period following your termination of employment. 

	

  
 4.
Non-Disparagement. You agree that, during your employment with AKS and subsequent to the termination of that employment for any reason, you will not disparage AKS, its operations, products, employees, officers, or directors. 

 
 5. Conflicts of Interest. You agree for so long as you are
employed by AKS to avoid dealings and situations which would create a conflict of interest with AKS. In this regard, you agree to comply with all AKS policies regarding conflicts of interest. You further agree to immediately report to the Vice
President, Human Resources of the Company, any conflict or potential conflict of interest with AKS. 
  
 6. Co-operation. For a period of one year following your Date of Termination, you agree to co-operate in good faith with AKS with
respect to pending or potential claims or litigation involving AKS as to which you have personal knowledge. Such co-operation shall include meeting with AKS and its representatives, upon reasonable request, for purposes of (a) providing information
based upon your personal knowledge in connection with any investigation by AKS, and (b) preparing for and providing deposition and/or trial testimony. 
  
 7. Injunctive Relief. You recognize and acknowledge that your involvement in decision making processes which involve AKS’s proprietary
and confidential information and your access to confidential competitive information will be such that, in the event of a breach of the Confidentiality (Section F(1)) or Covenant Not to Compete (Section F(2)) provisions of this Agreement
(hereinafter referred to collectively as the “Confidentiality and CNC Provisions”), monetary damages would be an insufficient remedy for AKS, and that AKS would be entitled to injunctive relief in the appropriate court to restrain the
breach and otherwise enforce the Confidentiality and CNC Provisions without proof of actual damages. 
  
 G. Time Limits for Bringing Claims; Arbitration of Claims. This section establishes time limits for bringing claims for severance benefits under this Agreement (“Severance Claims”) and any
claims or controversies arising out of or relating to your employment relationship with AKS or the termination of that relationship (“Employment Claims”), excluding claims for workers’ compensation and unemployment compensation
benefits and excluding the right of AKS to seek injunctive or other equitable relief to enforce the terms of Section F. The Agreement also provides that Severance Claims and Employment Claims must be resolved through the arbitration process set
forth in this Agreement. 
  
 1. Time Limit for Severance
Claims and Employment Claims. Severance Claims must be filed within one year from the Date of Termination. Employment Claims must be filed within one year after the occurrence of the action or actions upon which the claim is based. You agree
to waive any statute of limitations to the contrary.  
  

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 2. Arbitration of Severance Claims and Employment Claims. Severance Claims and Employment
Claims shall be submitted to final and binding arbitration, subject to the Rules of Arbitration attached to this Agreement as Exhibit A. Employment Claims subject to arbitration include, but are not limited to, allegations of unlawful discrimination
based on race, sex, religion, age, national origin, disability, and retaliation and any other claim of a violation of a right created or protected by local, state, or federal law. 
  
 You and AKS agree that it is the intention of you and AKS to avoid litigation in court of Severance Claims and Employment
Claims and you and AKS, therefore, specifically waive any right you or AKS would otherwise have to have Severance and Employment Claims decided by a judge or jury. 
  
 You and AKS agree that this agreement to arbitrate and the arbitration award are enforceable under and subject to the
Federal Arbitration Act, 9 U.S.C. § 1 et. seq. You and AKS consent that judgment upon the arbitration award may be entered in an appropriate court of competent jurisdiction located in Butler County, Ohio or in the United States
District Court for the Southern District of Ohio. 
  
 H. Miscellaneous.

  
 1. Notices. Notices required or
permitted under this Agreement shall be in writing and shall be deemed to have been given when personally delivered or mailed by United States certified mail, return receipt requested, postage prepaid, addressed to the intended recipient at its, his
or her last known address. Notices to AKS shall be marked for the attention of the Vice President, Human Resources of the Company. 
  
 2. Modification; Waiver. No provision of this Agreement may be waived, modified or discharged except pursuant to a written instrument signed
by you and the Chairman of the Board or the Chief Executive Officer of AKS. You and AKS do not waive, nor shall this Agreement be construed to waive, any right which is not subject to waiver as a matter of law. 
  
 3. Successors. AKS will require any successor (whether direct
or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of AKS to expressly assume and agree to perform this Agreement in the same manner and to the same extent that AKS would be
required to perform it if no such succession had taken place. 

	

  
 4.
Inurement. This Agreement shall inure to the benefit of and be enforceable by you and your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If you should die while
any amount would still be payable to you hereunder had you continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to your devisee, legatee or other designee, or, if there
is no such devisee, legatee or designee, to your estate. 
  

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 5. Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original but all of which together will constitute one and the same instrument. 
  
 6. Severability; Validity. The provisions of the Agreement (including Exhibit A) are severable and the validity or unenforceability of any
provision shall not effect the validity or enforceability of any other provision, with the following exception. If a court rules that the provisions of Section G (2) regarding the agreement to waive the right to have Severance Claims or Employment
Claims decided by judge or jury are unenforceable, any and all rights created by Section G (2) of the Agreement and Exhibit A to the Agreement will be voided retroactively, and the proceeds of any arbitration award must be returned to the party from
which they originated. 
  
 7. Choice of Law; Forum
Selection. This Agreement shall be governed by the laws of the United States and the laws of the State of Ohio, both as to interpretation and performance. Any action or other legal proceeding not subject to arbitration under this Agreement
or any action or legal proceeding regarding the enforceability of this Agreement shall be brought exclusively in an appropriate court of competent jurisdiction located in Butler County, Ohio (if the action is brought in state court) or in the
Southern District of Ohio (if such action is brought in federal court). Any action brought within such courts shall not be transferred or removed by you to any other state or federal court. 
  
 8. Withholding and Deductions. It is understood and
agreed that the payment of severance benefits under this Agreement will be subject to withholding for taxes and other deductions. It further is understood and agreed that, to the extent that this Agreement provides for payment of specified amounts
of severance benefits, such amounts are before such tax withholdings and deductions. 
  

					
	 	 	 Sincerely,

		
	 Accepted and agreed to this          day
            , 200    .
	 	 AK STEEL HOLDING CORPORATION

			
	 	 	 By:
	 	  


	 	 	 	 	 Secretary

			
	
 (Name of Executive)
	 	 	 	 
		
	 	 	 AK STEEL CORPORATION

			
	 	 	 By:
	 	  


	 	 	 	 	 Secretary


  

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 OFFICER SEVERANCE AGREEMENT 
 Exhibit A 
 Rules for Arbitration 
  
 (1) Location. The arbitration hearing (“Hearing”) will take place in
Middletown, Ohio, unless the parties mutually agree to another location. 
  
 (2)
Governing Rules. The arbitration process will be governed by the National Rules for the Resolution of Employment Disputes (“National Rules”) of the American Arbitration Association (“AAA”) except to the extent they are
modified by the Agreement and this Exhibit A to the Agreement. You have the opportunity to review these rules at any time. 
  
 (3) Notice. Either you or AKS may initiate the arbitration process by filing a written demand for monetary or non-monetary relief and notice of intent to arbitrate
(“Notice”) with any regional office of the AAA and paying the filing fee as set out in the National Rules. The Notice must be filed within the time limits established in Section G(1) of the Agreement. The date the Notice is considered
“filed” for purposes of Section G(1) of the Agreement and this rule is the date the Notice is received in a AAA regional office. 
  
 (4) Fees; Expenses. You and AKS will share equally any AAA administrative fee other than the filing fee. The Company will pay all of the arbitrator’s fees.
You and AKS will bear your own litigation costs and expenses (including attorneys fees), unless the arbitrator awards attorneys fees to a prevailing party in accordance with the law applicable to the matter in dispute. 
  
 (5) Arbitrators. You and AKS will agree upon an arbitrator selected from a panel of
arbitrators chosen by and maintained at the headquarters office of the AAA in New York. Arbitrators on this panel will have the following three qualifications: (a) membership on the AAA’s National Employment Dispute roster; (b) membership on
AAA’s labor-management roster; and (c) at least fifteen years experience as an arbitrator. After the filing of a written notice of intent to arbitrate, the AAA will send simultaneously to you and AKS an identical list of names of ten persons
chosen from the panel. You and AKS will have ten days from the transmittal date in which to strike any names objected to, number the remaining names in order of preference, and return the list to the AAA. If no arbitrator is acceptable to both you
and AKS or the person who has been approved on both lists and selected by the AAA cannot serve promptly, another list or lists will be sent out by the AAA in accordance with the above procedure until an arbitrator is agreed upon by you and AKS.

  
 (6) Pre-Hearing Matters. Any pre-hearing disputes will be presented to
the arbitrator for expeditious, final and binding resolution. 
  
 (7) Remedies;
Relief. The remedy and relief which may be granted by the arbitrator is that which the arbitrator deems just and equitable considering what would have been available to the parties had the matter been heard in court. 
  

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 (8) Discovery – Obtaining Information You and AKS recognize that a primary benefit each derives from entering
into the Agreement is that we avoid the delay and costs normally associated with litigation. Therefore, you and AKS agree that neither party will be entitled to conduct any discovery prior to the Hearing except that: 
  
 (a) AKS will furnish you with copies of all non-privileged documents in your
personnel file; 
  
 (b) if you are pursuing a claim against AKS
for discharge, you will furnish AKS with records of your earnings and benefits relating to your subsequent employment and all documents relating to your efforts to obtain subsequent employment; 
  
 (c) AKS and you will exchange no later than seven days prior to the Hearing
copies of all documents which either party intends to introduce as evidence at the Hearing and a list of witnesses either party intends to present at the Hearing; 
  
 (d) you will be allowed (at your expense) to take the deposition of your immediate supervisor and the individual who made
the decision which resulted in your claim (if that individual is not your immediate supervisor) for a period not to exceed two hours each, and AKS will be allowed (at its expense) to depose you for a period not to exceed two hours; and 

 
 (e) either you or AKS may ask the arbitrator to grant additional discovery
to the extent permitted by the National Rules if it is demonstrated that such discovery is necessary for a fair arbitration and no less expensive alternative for exchanging the information exists. 
  
 Nothing herein will prevent either you or AKS from taking the deposition of any witness
where: (a) the sole purpose for taking the deposition is to use the deposition in lieu of the witness testifying at the hearing; and (b) the witness is, in good faith, unavailable to testify in person at the hearing due to poor health, residency and
employment more than fifty miles from the hearing site, conflicting travel plans or other comparable reason. 
  
 (9) Post-Hearing Briefs. You and AKS will have the opportunity to submit to the arbitrator a post-hearing brief in support of your respective positions. 
  
 (10) Confidentiality. All aspects of the procedure under the Agreement, including the
hearing, the record of the proceedings, and the arbitrator’s decision are confidential and will not be open to the public, except (a) to the extent you and AKS agree otherwise in writing, (b) as may be appropriate in any subsequent proceedings
between you and AKS, (c) either party may disclose the decision of the arbitrator to his or its attorneys, accountants, other professional advisors, and/or spouse as long as they agree to keep it confidential; or (d) as may otherwise be appropriate
in response to a governmental agency or legal process, or to comply with applicable legal, accounting, financial or insurance rules, regulations or requirements. 
  

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