Exhibit 10.1


  


TOWER INTERNATIONAL, INC. 


 


PERFORMANCE AWARD AGREEMENT 


 


This Performance Award
Agreement (the “Agreement” or “Award Agreement”), dated as of the “Award Date” set forth in
the attached Exhibit A, is entered into between Tower International, Inc., a Delaware corporation (the “Company”),
and the individual named in Exhibit A hereto (the “Awardee”). For purposes of this Agreement, the information
referenced in Exhibit A shall be as provided to the Awardee electronically via the website made accessible to the Awardee
to accept the terms and conditions of this Award as set forth herein.


 


WHEREAS, the Company
desires to provide the Awardee an incentive to participate in the long-term success and growth of the Company; and


 


WHEREAS, to give effect
to the foregoing intention, the Company desires to make an incentive bonus award to the Awardee that constitutes “qualified
performance-based compensation” under Section 162(m) of the Code pursuant to Section 14 of the Tower International, Inc.
2010 Equity Incentive Plan (the “Plan”).


 


NOW, THEREFORE, in
consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties hereto agree
as follows:


 


1.          Award.
The Company hereby awards the Awardee a cash-based award (the “Performance Award”) for the performance period set forth
in Exhibit A (the “Performance Period”) (which, for administrative purposes, the Company may denominate as a
number of units of equivalent notional value). The target amount of the Performance Award is set forth in Exhibit A (the
“Target Award Amount”). The actual dollar amount of the Performance Award paid hereunder is dependent upon the satisfaction
of the performance conditions set forth in Section 2 below and may range from zero to two hundred percent (200%) of the Target
Award Amount. The Performance Award represents an unfunded, unsecured obligation of the Company. The Performance Award shall be
subject to the terms and conditions set forth in this Agreement and the provisions of the Plan, the terms of which are incorporated
herein by reference. Capitalized terms used but not otherwise defined herein shall have the meanings as set forth in the Plan.


 


2.          Earning
of Performance Award. Fifty percent (50%) of the Performance Award shall be earned based upon the Company Adjusted EPS Growth
Rate (as hereinafter defined) for the Performance Period (as hereinafter defined) (the “EPS Award”), and the remaining
fifty percent (50%) of the Performance Award shall be earned based upon the Company TSR Percentile for the Performance Period (the
“TSR Award”). Subject to Section 4 and Section 5 below, at the end of the Performance Period, the Committee will determine
the Company’s attained levels of performance with respect to the Company Adjusted EPS Growth Rate and TSR Percentile and
determine the total dollar amount of the EPS Award and the TSR Award earned, if any, by the Awardee for the Performance Period
(collectively, the “Earned Performance Award”) by reference to the following performance matrix:


 




    	 



    	 



    

 


	Earned Performance Award
	 	 	Threshold	 	 	Target	 	 	Maximum	 
	Earned EPS Award or TSR Award (as applicable) *	 	 	50	%	 	 	100	%	 	 	200	%
	Company Adjusted EPS Growth Rate	 	 	5	%	 	 	10	%	 	 	20	%
	Company TSR Percentile	 	 	25	%	 	 	50	%	 	 	75	%



 


* As a % of the portion
of the Target Award Amount attributable to the EPS Award or TSR Award, as applicable.


 


If, at the end of the Performance Period,
the threshold, target or maximum level of performance set forth in the performance matrix above has been attained for either or
both of the Company Adjusted EPS Growth Rate or the Company TSR Percentile, the Awardee will be entitled to receive payment pursuant
to Section 3 below for the total amount of the Earned Performance Award, subject to the Awardee’s Continuous Service with
the Company or any of its Subsidiaries through the Payment Date. If the attained level of performance for either performance goal
is between the threshold and target, or between the target and maximum, the total amount of the Earned Performance Award for such
performance goal will be determined by straight-line interpolation. If the attained level of one of the performance goals above
is less than the threshold performance goal, then no portion of the Performance Award subject to that performance goal shall be
earned or paid.


 


3.          Form
and Timing of Payment. Except as otherwise provided in Section 4 or Section 5 below, the total amount of the Earned Performance
Award shall be paid by the Company to the Awardee in cash, less applicable tax withholdings, following approval by the Board (or
committee thereof) of the audited financial statements of the Company for the fiscal year ending on the last day of the Performance
Period; provided that the Awardee remains in the Continuous Service of the Company or any of its Subsidiaries through the date
such payment is made (the “Payment Date”).


 


4.          Termination
of Employment. Notwithstanding the provisions of Section 2 and Section 3 above, in the event that the Awardee’s Continuous
Service with the Company and/or its Subsidiaries is terminated after the completion of the first calendar year of the Performance
Period but prior to the Payment Date: (i) by the Company and/or its Subsidiaries without Cause (as hereinafter defined) or (ii)
due to the Awardee’s death or Disability (as hereinafter defined), not more than two and one-half months after the calendar
year during which the Awardee’s termination date occurs, the Company shall pay the Awardee an amount in cash, less applicable
tax withholdings, equal to the product of: (1) the total amount of the Performance Award that would have been earned had the Performance
Period ended as of the December 31st immediately prior to the date on which the Awardee’s Continuous Service terminated
(determined based on the actual Company Adjusted EPS Growth Rate and the Company TSR Percentile from the beginning of the Performance
Period through such December 31st), and (2) a fraction, of which (x) the numerator is the number of completed calendar
months during the Performance Period that the Awardee is in Continuous Service with the Company or any of its Subsidiaries prior
to the date of termination, and (y) the denominator is thirty-six (36); and the remaining portion of the Performance Award shall
be forfeited. Except as provided above, in the event that the Awardee’s Continuous Service with the Company or any of its
Subsidiaries terminates prior to the Payment Date (which, for the avoidance of doubt, includes any termination that occurs during
the first calendar year of the Performance Period), the entire Performance Award shall be forfeited.


 




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5.          Change
in Control. Notwithstanding the provisions of Section 2 and Section 3 above, if a Change in Control (as hereinafter defined)
occurs during the Performance Period and while the Awardee is in the Continuous Service of the Company or any of its Subsidiaries,
not more than sixty (60) days following the Change in Control, the Company shall pay the Awardee an amount in cash, less applicable
tax withholdings, equal to the product of: (1) the Target Award Amount, and (2) a fraction, of which (1) the numerator is the number
of completed calendar months during the Performance Period prior to the Change in Control, and (2) the denominator is thirty-six
(36); and the remaining portion of the Performance Award shall be forfeited.


 


6.          
Transfer Restrictions. Neither this Agreement nor the Performance Award may be sold, assigned, pledged or otherwise transferred
or encumbered without the prior written consent of the Committee.


 


7.          Withholding
Taxes. The Awardee authorizes the Company to withhold from any payment due hereunder, the amount of withholding taxes due any
federal, state or local authority in respect of such payment and to take such other action as may be necessary in the opinion of
the Company to satisfy all obligations for the payment of such withholding taxes.


 


8.          Awardee
Representations. The Awardee has reviewed with his or her own tax advisors the federal, state, local and foreign tax consequences
of the transactions contemplated by this Agreement. The Awardee is relying solely on such advisors and not on any statements or
representations of the Company or any of its agents, if any, made to the Awardee. The Awardee understands that the Awardee (and
not the Company) shall be responsible for the Awardee’s own tax liability arising as a result of the transactions contemplated
by this Agreement.


 


9.          Employment.
The Awardee acknowledges and agrees that (i) nothing in this Agreement or the Plan confers on the Awardee any right to continue
an employment, service or consulting relationship with the Company, nor shall it affect in any way the Awardee’s right or
the Company’s right to terminate the Awardee’s employment, service, or consulting relationship at any time, with or
without Cause (as hereinafter defined); and (ii) the Company would not have granted this Award to the Awardee but for these
acknowledgements and agreements.


 




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10.          Definitions.
For purposes of this Agreement, the following terms have the meanings set forth below:


 


a.           “Cause”
means, as determined by the Company, (i) conviction of or plea of nolo contendere to a felony by the Awardee; (ii) acts of dishonesty
by the Awardee resulting in personal gain or enrichment at the expense of the Company or its Subsidiaries or the affiliates of
the Company and its Subsidiaries; (iii) conduct by the Awardee in connection with his duties to the Company and/or its Subsidiaries
that is fraudulent, unlawful or grossly negligent; (iv) engaging in inappropriate personal conduct by the Awardee including, but
not limited to, harassment discrimination, or the use or possession at work of any illegal controlled substance; (v) contravention
of specific lawful direction from the Board or supervisor or continuing failure by the Awardee to perform his duties to the Company
or its Subsidiaries, or (vi) breach of any non-disclosure, non-competition, non-solicitation or other similar agreement executed
by the Awardee for the benefit of the Company or any of its Subsidiaries; provided, that, the Awardee shall have fifteen (15) days
after notice from the Company to cure the deficiency leading to the Cause determination (except with respect to (i) above), if
curable. A termination for “Cause” shall be effective immediately (or on such other date set forth by the Company).
Notwithstanding the foregoing, if the Awardee and the Company or any of its Subsidiaries have entered into an employment agreement,
consulting agreement, advisory agreement or other similar agreement that specifically defines “cause,” then “Cause”
shall have the meaning defined in that employment agreement, consulting agreement, advisory agreement or other agreement.


 


b.           “Change
in Control” shall have the meaning ascribed thereto in the Plan as of the date hereof.


 


c.           “Company
Adjusted EPS” shall mean the EPS of the Company for a specified period, after adjustments thereto (i) to exclude the
effect of extraordinary, unusual and/or nonrecurring items and (ii) solely to the extent permitted under Section 16 below, to reflect
such other factors as the Committee deems appropriate to fairly reflect earnings per share. For the avoidance of doubt, the Company
Adjusted EPS for each fiscal year is intended to be the same as reported in the Company’s fourth quarter earnings presentation
for the relevant fiscal year.


 


d.           “Company
Adjusted EPS Growth Rate” shall mean the cumulative Company Adjusted EPS for the specified period divided by the number
of fiscal years in the specified period, stated in terms of a percentage growth rate. For the avoidance of doubt, the Company Adjusted
EPS Growth Rate shall be calculated on the basis of the Company Adjusted EPS for the fiscal year prior to the specified period.


 


e.           “Company
TSR Percentile” shall mean the percentile ranking as determined by the Committee on the basis of the Total Shareholder
Return for each of the Peer Group Companies, including the Company.


 




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f.            “Continuous
Service” shall mean the absence of any interruption or termination of service as an employee, director, consultant, advisor
or other individual service provider; provided, however, that periods of absence to the extent permitted by Company policies due
to vacations, holidays, sick days, short term disability and other approved absences, will not be considered to be an interruption
or termination of service hereunder. Changes in status between service as an employee, director, consultant, advisor or other individual
service provider to the Company or any of its Subsidiaries will not constitute an interruption of service.


 


g.           “Disability”
shall have the meaning ascribed thereto in the Plan as of the date hereof. Notwithstanding the foregoing, if the Awardee and the
Company or any of its Subsidiaries have entered into an employment agreement, consulting agreement, advisory agreement or other
similar agreement that specifically defines “disability,” then “Disability” shall have the meaning defined
in that employment agreement, consulting agreement, advisory agreement or other agreement.


 


h.           “EPS”
shall mean the diluted earnings per share from continuing operations for the Company.


 


i.            “Peer
Group Companies” shall mean the Company and American Axle & Manufacturing Holdings, Inc., Autoliv, Inc., Borg Warner,
Inc., Dana Holding Corporation, Delphi Automotive, PLC, Federal-Mogul Corporation, Johnson Controls, Inc., Lear Corporation, Linamar
Corporation, Magna International, Inc., Martinrea International Inc., Meritor, Inc., Tenneco Inc., TRW Automotive Holdings Corp.
and Visteon Corporation.  If, prior to the end of the Performance Period, any Peer Group Company ceases to be a public
reporting company for any reason, then such company shall not be considered a Peer Group Company.


 


j.            “Total
Shareholder Return” shall mean, with respect to a specified period, the total percentage return per share of common stock,
assuming contemporaneous reinvestment of all dividends and other distributions on the date such dividend or other distribution
was paid, and based on the average stock price over the first twenty (20) trading days of the Performance Period and the average
stock price over the last twenty (20) trading days of the Performance Period. If necessary, the measurement of Total Shareholder
Return shall be adjusted to reflect stock splits or similar changes in capitalization which occur during a specified period.


 


11.          Notices.
Notices or communications to be made hereunder shall be in writing and shall be delivered in person, by registered mail, by confirmed
facsimile or by a reputable overnight courier service to the Company at its principal office or to the Awardee at his or her address
contained in the records of the Company. Alternatively, notices and other communications may be provided in the form and manner
of such electronic means as the Company may permit.


 


12.          Entire
Agreement; Governing Law. The Plan is incorporated herein by reference. The Plan and this Award Agreement constitute the entire
agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements
of the Company and the Awardee with respect to the subject matter hereof, and may not be modified adversely to the Awardee’s
interest except by means of a writing signed by the Company and the Awardee. In the event of any conflict between this Award Agreement
and the Plan, the Plan shall be controlling. This Award Agreement shall be construed under the laws of the State of Delaware, without
regard to conflict of laws principles.


 




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13.          Opportunity
for Review. Awardee and the Company agree that this Award is granted under and governed by the terms and conditions of the
Plan and this Award Agreement. The Awardee has reviewed the Plan and this Award Agreement in their entirety, has had an opportunity
to obtain the advice of counsel prior to accepting this Award Agreement and fully understands all provisions of the Plan and this
Award Agreement. The Awardee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee
upon any questions relating to the Plan and this Award Agreement. The Awardee further agrees to notify the Company upon any change
in Awardee’s residence address.


 


14.          Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the Company and the Awardee and their respective permitted
successors, assigns, heirs, beneficiaries and representatives.


 


15.          Section 409A
Compliance. To the extent that this Agreement and the Performance Award hereunder are or become subject to the provisions of
Section 409A of the Code, the Company and the Awardee agree that the Performance Award may be amended or modified by the Company
as appropriate to maintain compliance with the provisions of Section 409A of the Code.


 


16.          Section
162(m) Compliance. Notwithstanding anything in this Agreement to the contrary, if the Awardee is a “covered employee”
within the meaning of Section 162(m) of the Code and this Performance Award is not exempt from the deduction limitation under Section
162(m) of the Code by virtue of the exception under Treas. Reg. Sec. 1.162-27(f), (i) no amounts shall be paid under this Agreement
unless the material terms of the performance goals hereunder are approved by the stockholders of the Company in accordance with
Section 162(m) of the Code, (ii) prior to the payment of any amounts under this Agreement, the Committee must certify in writing
that the applicable performance goals and all other material terms and conditions to payment were in fact satisfied, and (iii)
the Committee shall not exercise discretion to adjust any component of the performance goals hereunder or the amount of the Performance
Award in a manner that is precluded by Section 162(m) of the Code.


 


17.          Recoupment.
In the event the Company restates its financial statements due to material noncompliance with any financial reporting requirements
under applicable securities laws, any payments pursuant to this Performance Award for or in respect of the year that is restated,
or the prior three years, may be recovered to the extent the payments made exceed the amount that would have been as a result of
the restatement. In addition and without limitation of the foregoing, any amounts paid hereunder shall be subject to recoupment
in accordance with The Dodd–Frank Wall Street Reform and Consumer Protection Act and any implementing regulations thereunder,
any clawback policy adopted by the Company or as is otherwise required by applicable law or stock exchange listing conditions.


 


18.          Electronic
Acceptance. The Awardee shall be deemed to have accepted and agreed to the terms and conditions of this Agreement (and the
applicable terms of the Plan) unless the Awardee rejects this Award Agreement within 90 days of the Award Date by such electronic
means as the Company may permit. If the Awardee rejects the Award Agreement, the Performance Award that would otherwise have been
made to the Awardee under this Award Agreement shall be null and void and the Performance Award will be cancelled. 


 




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TOWER INTERNATIONAL, INC. 


 


PERFORMANCE AWARD AGREEMENT 


 


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See infomration displayed on the following page —


 




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TOWER INTERNATIONAL, INC.


PERFORMANCE AWARD AGREEMENT


 


EXHIBIT A


 


1.     (a)          Awardee’s
Name:______________________________________________________


 


(b)          Award
Date:__________________________________


 


(c)          Target
Award Amount:$___________________________


 


(d)          Performance
Period:January 1, 2014 – December 31, 2016


  




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