Document:

Exhibit 10.1 - Director Compensation and Executive Title Change

     The Board of the Bank authorized a decrease in directors' fees for Board
member services to $1,500 from $2,000 per month effective December 1, 2008.

     The Boards of the Company and the Bank, as applicable, also authorized a
decrease to $375 from $500 per month for members of each committee of the
following committees effective December 1, 2008: audit (Company committee) and
loan (Bank committee).

     The Board of the Bank approved a title change for Mr. Martin E. Plourd from
Executive Vice President/Chief Operating Officer to Senior Executive Vice
President/Chief Operating Officer effective immediately.Exhibit 10.2 - Executive Officer Compensation

     The Board of the Bank, upon the recommendation of the Executive Officer
Compensation Committee and at the request of Mr. Wacknitz, approved a reduction
in the annual base salary of Stephen H. Wacknitz, CEO/President, from $560,000
to $420,000 effective December 1, 2008.Exhibit 10-d

            

            COMPENSATION OF DIRECTORS

             

             

            The retainer for Board service for non-employee directors of ArvinMeritor is $75,000 per year. No additional retainer is paid for service as committee members.

             

            The Chairman of the Audit Committee receives an additional retainer of $10,000 per year, and the Chairman of the Compensation Committee receives an additional retainer of $7,000 per year. The Chairmen of the Corporate Governance and Nominating Committee and the Environmental and Social Responsibility Committee each receive an additional retainer of $5,000 per year. The Presiding Director receives an additional retainer of $20,000 per year.

             

            A director may elect to defer payment of all or part of the cash retainer fees to a later date, with interest on deferred amounts accruing quarterly at a rate equal to 120% of the Federal long-term rate set each month by the Secretary of the Treasury. Each director also has the option each year (provided sufficient shares are available under a plan covering director equity grants to accommodate this deferral option at the time of election) to defer all or any portion of the cash
            retainer by electing to receive restricted shares or restricted share units that could be forfeited if certain conditions are not satisfied. The restricted shares or restricted share units in lieu of the cash retainer are valued at the closing price of the Common Stock on the New York Stock Exchange – Composite Transactions reporting system on the date each retainer payment would otherwise be made in cash.

             

            After each Annual Meeting of Shareowners, each non-employee director receives an equity grant under the 2004 Directors Stock Plan. The grant in 2008 consisted of shares of common stock, restricted
            stock or restricted share units, at the director’s discretion, equal to a value of $80,000 on the date of grant, which on the date of grant was equal to 6,607 shares. The grant for fiscal 2009 is expected to deplete the remaining shares available under the 2004 Directors Stock Plan and consist of a grant of 3,500 shares per director. Accordingly, the difference
            between the fair market value on the date of grant of the 3,500 shares and $80,000 (the intended value of the equity award) will be paid in cash. The Company currently expects to submit a plan covering director equity grants for shareholder approval prior to the 2010 annual grant.

            

            A non-employee director who is elected to the Board during the fiscal year receives a pro rata portion of the annual grant.

             

            Non-employee directors also receive fees for attendance at committee meetings. These attendance fees are in the amount of $1,500 for each meeting in person and $750 for each telephone meeting.

             

            Directors who are also employees of ArvinMeritor or a subsidiary of ArvinMeritor do not receive compensation for serving as directors.Subject to approval of ArvinMeritor’s Board of Directors

            

            March 22, 2006

             

             

            Mr. Jeffrey Craig

            9830 Lakewood Drive

            Grosse Ile, MI 48138

             

            Dear Jay:

             

            We are pleased to extend to you our offer of employment for the position of Vice President and Controller of ArvinMeritor, Inc., effective no later than May 1, 2006. Subject to the approval of the ArvinMeritor Board of Directors (the “Board”) you will become an elected officer of ArvinMeritor, effective as of the first date employed. In this position, you
            will report to the Senior Vice President and Chief Financial Officer of ArvinMeritor and be based in Troy, Michigan. You agree to devote your full time and attention to the business and activities of ArvinMeritor and to use your reasonable best efforts to perform faithfully and efficiently the responsibilities assigned to you by the Senior Vice President and Chief Financial Officer of ArvinMeritor. This offer provides for an annual base salary of Three Hundred and Fifty Thousand
            Dollars ($350,000). Beginning November 2006, your annual base salary shall be reviewedannually by the Board’s Compensation and Management Development Committee, consistent with ArvinMeritor’s practice for senior executives. Any increase in your
            annual base salary granted by the Committee in November, shall become effective on the following February, subject to Board approval.

             

            Please note that this offer is subject to formal approval by the ArvinMeritor Board of Directors. Discussions have been held with members of the Board, and we are confident that the Board will approve our offer.

             

            Annual Incentive Plans

            

            You will be eligible to fully participate on a non-prorated basis in the ArvinMeritor Incentive Compensation Plan (ICP) beginning in Fiscal Year 2006 (October 1, 2005 to September 30, 2006), and thereafter. Awards made under this Plan are normally paid in December of each year. Your ICP target award is 45% of your base earnings as of the
            end of the fiscal year for which the award is made. Actual ICP payments can range from 0% up to 200% of your target, depending upon the performance of ArvinMeritor and your individual performance, both as determined by the Board, and based in part on the achievement of specified performance objectives.

             

            Long-Term Incentives

            

            

            In addition you will be eligible to participate in ArvinMeritor’s Long-Term Incentives Plan (LTIP). As discussed with you, we have recommended to the Board’s Compensation and Management Development Committee that you be allowed to fully participate on a non-prorated basis in the current (FY2006-2008) LTIP cycle.

             

            The target award of opportunity for the FY2006-2008, which will be granted to you within thirty (30) days of your effective start date, will be Three Hundred and Thirty Thousand Dollars ($330,000). The grant will be comprised of a mix of Performance Shares (9,000) and Cash Performance Plan award opportunities ($165,000), based upon the achievement of specified performance objectives, over the three-year performance period, as determined by the Board.
            

             

            Special Award

            

            Furthermore, we have recommended to the Board’s Compensation and Management Development Committee that you be awarded two special awards. First, you will receive 30,000 restricted shares, which shall vest, assuming continued service, as follows: 25% after 36 months; another 25% after 48 months; and the balance of the shares would
            vest after 60 months. Additionally, you will receive $150,000 sign-on bonus payable after thirty (30) days from your first date of employment with ArvinMeritor. If you choose to voluntarily terminate your employement with ArvinMeritor within one year from your first date of employment, you will be required to reimburse ArvinMeritor for this full amount.

             

            Benefits

            

            You will participate in all the regular ArvinMeritor health, welfare, savings and other employee benefit programs upon attainment of the eligibility provisions of the specific plans. You have been provided with summaries of the aforementioned plans by Ernie Whitus.

             

            As an officer of ArvinMeritor, you shall be entitled to participate in all employee benefit (healthcare, vacation, etc.) and perquisite plans and programs (see below), of ArvinMeritor, which are generally available to its senior executive employees.

            

            

            

            	
                    	
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                        Club Membership

                    

            

            

            

            	
                    	
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                    	Company Car Allowance

            

            

            	
                    	
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                    	Financial Planning Allowance

            

            

            	
                    	
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                    	Annual Executive Physical Examination

            

            

            	
                    	
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                    	Personal Excess Liability Coverage

            

            

            Severance Benefits

            

            

            We are convinced you will be a valued employee of ArvinMeritor; however, in the event your employment with ArvinMeritor is terminated, you will be eligible for certain severance benefits (subject to your signing a release in a form satisfactory to ArvinMeritor), as follows:

             

            	
                    	
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                        By ArvinMeritor Without Cause:

                    

            

            

            

            

            	
                    	
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                        Accrued obligations;

                    

            

            

            

            	
                    	
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                    	Severance pay based on 18-36 months of your base salary, as determined by the Board (the “Severance Pay Period”);

            

            

            	
                    	
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                    	Prorated ICP award;

            

            

            	
                    	
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                    	Health and Welfare benefit continuation for the severance period;

            

            

            	
                    	
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                    	Full and immediate vesting of the special service based restricted shares award;

            

            

            	
                    	
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                    	Payment of all vested benefits under the savings plans;

            

            

            	
                    	
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                    	Pro-rata participation in Cash Performance Plan award opportunities; and

            

            	
                    	
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                    	No obligation to seek new employment or otherwise mitigate.

            

            

            	
                    	
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                        By ArvinMeritor for Cause (Cause defined as continued and willful failure to perform duties, provided that you have been given written notice and an opportunity to cure the failure within five business days; gross
                        misconduct which is materially and demonstrably injurious to ArvinMeritor; or conviction of or pleading guilty or no contest to a (a) felony or (b) other crime which materially and adversely affects ArvinMeritor):

                    

            

            

            

            

            	
                    	
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                        Accrued obligations and vested plan benefits under the savings plans;

                    

            

            

            

            	
                    	
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                    	Forfeit all unvested long-term incentive awards, performance shares, restricted stock and cash portions of any long-term incentive cycles; and

            

            

            	
                    	
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                    	Forfeit eligibility to receive an annual incentive award.

            

            

            

            

            

            	
                    	
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                        By the Executive for Any Reason (other than death or disability):

                    

            

            

            

            

            	
                    	
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                        Accrued obligations and vested plan benefits under the savings plans.

                    

            

            

            Death Benefits

            

            

            

            	
                    	
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                        Accrued obligations;

                    

            

            

            

            	
                    	
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                    	Pro-rata annual incentive bonus participation for the time actually worked in the year of death;

            

            

            	
                    	
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                    	Immediate vesting of all outstandingrestricted shares;

            

            	
                    	
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                    	Eligible for vesting of performance shares at the end of each performance period for all grants greater than one year;

            

            

            	
                    	
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                    	Pro-rata cash portion of any long-term incentive cycles that began more than one year prior to the date of death;

            

            

            	
                    	
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                    	Medical benefit continuation for your spouse and other dependents for six months and at the end of this six month period your spouse and dependents may be eligible for coverage under COBRA (for an additional period not to exceed 30 months);

            

            

            	
                    	
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                    	Payment of all death benefits under the savings plans.

            

            

            Disability Benefits

            

            Disability (Disability initially defined as the inability to perform the duties of your current job as a result of disease or injury. Based on your years of
            service, your first six months of disability (“Short-Term Disability”) will result in either full salary continuation for the entire six-month period or a combination of full salary continuation and reduced salary continuation for said six-month period. If you are unable to perform your job duties, following Short-Term Disability, you will be placed on Long-Term Disability and receive benefits under the provisions of that program. Following a one and one-half –year
            period on Long-Term Disability, eligibility for continued coverage will be based on your inability to perform any job for which you are qualified by education, training or experience)

             

            	
                    	
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                        Accrued obligations;

                    

            

            	
                    	
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                    	Pro-rata annual incentive bonus participation for the time actually worked;

            

            	
                    	
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                    	Pro-rata cash portion of any long-term incentive cycles that began more than one year prior to the end of Short-Term Disability;

            

            	
                    	
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                    	Continuation of the vesting rules for equity incentive awards;

            

            	
                    	
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                    	Medical, dental, vision and life insurance benefits will be provided on the same terms as if you were employed while you are on Long-Term Disability;

            

            

            Retirement Benefits

            

            You will be immediately eligible to participate in the 401(k) plan, which has matching company contributions, and the supplemental 401(k) restoration plan. In addition, you would be eligible to receive the pension contribution, which is a percentage of base pay and ICP varying by age, that is available under those
            plans.

            

            Change of Control

            

            In the event of a change of control (as defined in the LTIP Cash Performance Plan) of the Company, you will receive the maximum award (3 times the targeted opportunity), adjusted by the stock price multiplier, for all outstanding cycles, subject to approval by the Board. In addition, you will receive a full and immediate vesting of all
            performance contingent restricted stock, service-based restricted stock and performance shares.

             

            Indemnification

            

            The Company will provide indemnification and defend you with regard to any claims arising from any decision made by you in good faith, while performing services for the Company.

             

            Director’s and Officer’s Insurance

            

            

            The Company shall provide you with reasonable Director’s and Officer’s liability insurance coverage.

             

            Reimbursement of Legal Fees

            

            You will be reimbursed any legal fees incurred in connection with enforcing this agreement.

             

            Arbitration

            

            You have agreed to sign ArvinMeritor’s “Mutual Agreement to Arbitrate Claims” and the ArvinMeritor “Standards of Business Conduct and Conflict of Interest Certificate.” Any controversy involving the construction or application of any terms, covenants or conditions of the Agreement, or any claims arising out
            of any alleged breach of the Agreement, will be submitted to and resolved by final and binding arbitration in Oakland County, Michigan (conducted pursuant to the rules of the American Arbitration Association).

             

            In the event you leave employment of ArvinMeritor for any reason, you agree that for a period of twenty four (24) months following your departure, you will not solicit for employment any ArvinMeritor employee, nor will
            you, without the prior written consent of ArvinMeritor, directly or indirectly provide services as an owner, partner, employee, officer, director, independent contractor, consultant, advisor or in any other capacity to Dana Corporation, Tenneco, or Eaton Corporation, or any of their respective affiliates or subsidiaries.
            You also agree that you will not disclose, nor will you use, any ArvinMeritor proprietary informationafter you leave employment of ArvinMeritor.

             

            Governing Law

            

            The validity, interpretation, construction and performance of the Agreement and the rights of the parties under the Agreement shall be interpreted and enforced under Michigan law without reference to principles of conflicts of laws.

            

            Attorneys’ Fees

            

            

            In the event of litigation between the parties to the Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees. The Company shall pay you reasonable attorneys’ fees incurred in connection with the preparation, negotiation and execution of the Agreement.

             

            We feel you will make a significant contribution to the ArvinMeritor organization, and we also believe the Company will furnish you a rewarding opportunity. On behalf of the Board, I welcome you to ArvinMeritor!

             

            Sincerely,

             

             

            /s/ James D. Donlon

             

            James D. Donlon, III

            Senior Vice President and

            Chief Financial Officer

            ArvinMeritor, Inc.

            

            ACCEPTED:

             

            /s/ Jeffrey A. Craig

            

            DATE:

             

            March 27, 2006

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