Exhibit 10.10


 


ACCURIDE EXECUTIVE RETIREMENT ALLOWANCE
POLICY


 


December 2008


 


Accuride has supplemented the retirement
benefits available to executives for a number of years through the Accuride
Corporation Supplemental Savings Plan (the “SSP”).  While the SSP is being continued to allow
executives to defer the receipt of some of their income, the Company
contribution portion of the SSP is being eliminated.  In order to replace the benefits lost due to
the elimination of the Company contribution features in the SSP, Accuride has
adopted this Executive Retirement Allowance Policy, the terms of which follow:


 


1.                                       Eligibility.  The Retirement Allowance will be payable to
any executive level employee (salary level 20 and above) who has been
designated for participation in the program described in this Policy.  A “Designated Executive” need not complete
any particular period of service in order to participate.


 


2.                                       Amount of Allowance.  The Retirement Allowance for any calendar
year will be equal to the sum of the following amounts:


 


A.                                   2.5%
of the Designated Executive’s “Base Salary” for the calendar year in excess of
the limitation on compensation that may be considered for purposes of the
Accuride Employee Savings Plan pursuant to Section 401(a)(17) of the
Internal Revenue Code of 1986 (the “Code”) for the same year.  (The Section 401(a)(17) limit for 2008
is $230,000).  For purposes of this
Policy, “Base Salary” means the total regular salary paid by the Company during
the applicable calendar year, determined prior to any deferrals made by the
Designated Executive under the Accuride Employee Savings Plan, the Accuride
Corporation Supplemental Savings Plan, or a cafeteria plan within the meaning
of the Section 125 of the Code. 
“Base Salary” excludes commissions, bonuses, overtime, living or other
allowances, contributions under any employee benefit plan, or other extra,
incentive, premium, contingent, supplemental or additional compensation all as
determined conclusively by the Company.


 


B.                                     The
“Applicable Percentage” of the Designated Executive’s “Eligible Base Salary”
for the applicable calendar year less the “Company Profit Sharing Contribution”
(as such term is used in the Savings Plan) allocated to the Designated
Executive under the Savings Plan for that year. 
For this purpose, the “Applicable Percentage” is the percentage
contributed to the accounts of the participants in the Savings Plan as a
Company Profit Sharing Contribution (as that term is defined in the Savings
Plan) for that year, as adjusted to reflect all limitations and carryovers
called for by the Savings Plan.  A
Designated Executive’s “Eligible Base Salary” is the Base Salary earned by the
Designated Executive for the portion of the year during which the Designated
Executive is eligible to receive a Company Profit Sharing Contribution under
the Savings Plan.  This portion of the
Retirement Allowance will only be paid for a year in which a Company Profit
Sharing Contribution is made to the Savings Plan.  A Designated Executive will receive this
portion of the Retirement Allowance only if the Designated Executive is also a
participant in the Savings Plan and is eligible, generally, to receive a
Company Profit Sharing Contribution under the Savings Plan.  The Board retains the right to relax the
eligibility requirements for the receipt of this portion of the Retirement
Allowance.


 

















 


C.                                     An
amount equal to the total “Basic Earnings Credits” and “Excess Earnings
Credits” (as determined pursuant to Sections 3.1(b) and 3.1(c) of
the Accuride Cash Balance Plan) that the Designated Executive would be entitled
to receive under the Cash Balance Pension Plan for the calendar year if that
Plan were not subject to the compensation and benefit limitations set forth in Section 401(a)(17)
and 415 of the Code, less the Basic Earnings Credits and Excess Earnings
Credits actually received by the Designated Executive under the Cash Balance
Plan for that year.


 


D.                                    An
amount equal to 35% of the sum of A, B and C above, which amount is intended to
assist the Designated Executive in the payment of taxes on the Retirement
Allowance.


 


3.                                       Time of Payments.  The Retirement Allowance will be paid, in one
lump sum, by March 15 of the calendar year following the calendar year in
which the allowance was earned.


 


4.                                       Section 409A Compliance.


 


(a)                                  Payment Delay.  If the Company fails to make a payment due
under the Agreement, either intentionally or unintentionally, within the time
period specified in the Agreement, but the payment is made within the same
calendar year, such payment will be treated as made within the time period
specified in the Agreement.  In addition,
if a payment is not made due to a
dispute with respect to such payment, the payment may be delayed in accordance
with regulations issued by the Department of the Treasury pursuant to Section 409A
of the Code.


 


(b)                                 Ban on Acceleration or Deferral.  Under no
circumstances may the time or schedule of any payment made or benefit provided
pursuant to this Agreement be accelerated or subject to a further deferral except as otherwise permitted or required
pursuant to regulations and other guidance issued pursuant to Section 409A
of the Code.


 


(c)                                  No Elections.  Employee does not have any right to make any election
regarding the time or form of any payment due under this Agreement.


 


(d)                                 Compliant Operation and Interpretation.  This
Agreement shall be operated in compliance with Section 409A and each
provision of this Agreement shall be interpreted, to the extent possible, to
comply with Section 409A.


 


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