Document:

Exhibit 10.9

Exhibit 10.9

	 	 	 	 	 	 	 	 	 

	

WESTMORELAND COAL COMPANY	 	 	 	Number: GP- 04          Page 1 of 6

Issue/Revision Date: June 15, 2011

Supersedes Policy: dated 7/26/04 and GP-04 dated
5/21/07, 12/31/08 and 6/01/2010

Approved Issuing Officer:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	/s/ Keith E. Alessi	 	 
	 	 	 	 	 	 	 
	Title: Severance Policy

	 	 	 	Name:
	 	Keith E. Alessi	 	 
	 

	 	 	 	Title:
	 	Chief Executive Officer	 	 

POLICY STATEMENT

It is the policy of Westmoreland Coal Company and its subsidiaries, hereinafter collectively “the
Company,” to pay severance benefits under certain specific circumstances, as defined by this
policy, to certain non-union employees who are involuntarily terminated for reasons other than
cause and under certain conditions described herein. The purpose of severance is to aid employees
for hardships incurred upon loss of employment. This policy applies to non-union employees of the
Company and all of its direct and indirect subsidiaries (each such entity, an “Employer” for its
employees, and each such employee, an “Employee” or “you”).

FUTURE OF THE POLICY

Although the Company currently expects to continue the provisions of this policy at its sole
discretion, the Company reserves the right to change or amend at any time, any and all terms and
conditions of this policy, or to terminate this policy in its entirety, upon six (6) months notice
to employees covered under this policy. Furthermore, the Company reserves the right to interpret
and construe the provisions of this policy, including the determination of the eligibility for and
amount of benefits under the policy, to the fullest extent permissible by law.

ELIGIBILITY

You are an “Eligible Employee” if:

	 	•	 	You are an active full-time employee of the Employer, scheduled to work at least 40
hours per week, AND

	 	•	 	Your employment terminates due to:

	 	1.	 	Involuntary termination that is not for Cause (as defined below),
including
but not limited to, permanent layoff, permanent reduction in force, or termination
of employment due to lack of work or job elimination; or

	 	2.	 	The sale of a facility or division or segment of business unless,
following such sale, you are subsequently employed by the purchaser of the
facility or division or segment of business; or

	 	3.	 	A position being relocated in which the distance between the relocated
place of employment and your residence is at least 50 miles greater than the
distance between your former place of employment and your residence, and you do
not continue employment at the relocated place of employment; AND

 

 

 

	 	 	 	 	 	 	 	 	 

	Title: Severance Policy
	 	No.

GP-04
	 	Date Issued:

June 15, 2011
	 	Supersedes
Policy

dated 7/26/04 and

GP-04 dated

5/21/07, 12/31/08 &

6/01/10
	 	Page 2 of 6

	 	•	 	You have a position on the date your employment terminates that is listed in the
Position or Classification section of the attached Addendum; AND

	 	•	 	Within 30 days following your termination with Employer, you do not receive an
offer of Similar Employment from the Employer or any of its affiliates or subsidiaries, or
(i) your employment is terminated by the Employer as a result of or in relation to a sale
of the Employer or any of its assets, business unit(s), or divisions(s), subsidiaries or
affiliates or the contracting out or outsourcing of any function within the Employer, and
(ii) you do not receive an offer of Similar Employment from the purchasing, contracting,
or outsourcing party or a successor thereto. “Similar Employment” means a position with
pay and Working Conditions that are reasonably comparable to that of your last position
with the Company. For purposes of this policy, “Working Conditions” do not include
employee benefits. An Employee is not eligible for severance benefits hereunder if that
Employee does not accept the Similar Employment; AND

	 	•	 	You sign, return to the Company and do not revoke the Release Agreement (“Release
Agreement”) within the time frames specified in that document or a letter accompanying
same in a form satisfactory to the Company.

INELIGIBILITY

The following are NOT Eligible Employees:

	 	•	 	Employees who are covered by a collective bargaining agreement that does not
provide for participation in this policy;

	 	•	 	Seasonal, part-time and/or temporary workers (as reflected in the Employer’s
payroll system) and independent contractors;

	 	•	 	Employees whose employment is terminated due to the employee’s resignation, death,
or disability (as defined in the Company’s applicable long- term disability policy);

	 	•	 	Employees whose employment is terminated for Cause, as defined herein.

	 	1.	 	For Cause: Gross or willful misconduct that is injurious to the Company,
or its direct or indirect subsidiaries or affiliates, which includes but is not
limited to an act or acts constituting embezzlement, misappropriation of funds or
property of such entities, larceny, fraud, gross negligence, crime or crimes
resulting in a felony conviction, moral turpitude or behavior that brings the
Employee into public disrepute, contempt, scandal or ridicule or that reflects
unfavorably upon the reputation or high moral or ethical standards of the Company
(or the Employer) or violation of Company (or Employer) policy including but not
limited to the policies set forth in the Code of Conduct and Ethics; employees
terminated pursuant to the Counseling and Discipline Policy; willful
misrepresentation to the Company’s or an Employer’s directors, officers, managers,
supervisors, employees or third parties; or failure to meet the duties of care and
loyalty to the Company or the Employer. For purposes of this paragraph, failure to
act on the employee’s part shall be considered “willful” if done by the employee
without a reasonable belief that the omission was in the best interest of the
Company or the Employer;

 

 

 

	 	 	 	 	 	 	 	 	 
	Title: Severance Policy
	 	No.

GP-04
	 	Date Issued:

June 15, 2011
	 	Supersedes
Policy

dated 7/26/04 and

GP-04 dated

5/21/07, 12/31/08 &

6/01/10
	 	Page 3 of 6

	 	•	 	Any Employee who refuses to sign, revokes or subsequently breaches the Release
Agreement;

	 	•	 	Any Employee who is in material violation of company policy or in material breach
of statutory or common law duties that the Employee owes to the Employer; and

	 	•	 	Any Employee who is not otherwise an Eligible Employee, as provided above.

PROVISIONS

DETERMINATION AND PAYMENT OF SEVERANCE PAYMENTS

If you are an Eligible Employee, you are eligible to receive severance benefits that consist of
three parts: Severance Compensation; Medical, Vision, and Dental Benefit Continuation; and
Outplacement Assistance.

	 	•	 	Severance Compensation. Severance compensation will be calculated based upon your
Position or Classification on the date your employment terminates and completed Years of
Service as set forth in the attached Addendum.

	 	 	 	For purposes of calculating severance compensation, base pay means your “weekly base pay”
in effect for the payroll period during which employment with your Employer is
terminated. Overtime, bonuses, commissions, incentive pay and any taxable or nontaxable
fringe benefit or payment will be excluded. “Weekly base pay” means 40 hours multiplied
by your base hourly rate only for hourly Employees, and your annual base salary divided
by 52 for exempt Employees. Your “monthly base pay” is computed by multiplying your
“weekly base pay” by 52 and then dividing that number by 12. “Year of Service” means
each completed full year of continuous service with the Company or any other Employer
from your date of hire. Partial years of service will not be included in calculating
your severance compensation.

	 	 	 	In addition, your severance benefit under this policy will be reduced (but not below
zero) by all amounts of severance pay or similar pay to which you may be entitled to
under any other Company Severance Policy, benefits mandated by state or federal law,
payment in lieu of WARN notification or any individual written employment agreement or
other written agreement relating to payment upon separation from employment or change of
control of the Company.

	 	 	 	Severance payments will be paid in equal installments on the normal payroll schedule or
in a lump-sum payment as determined solely by the Employer (except that for payments to a
CEO of an Employer, the determination shall be made by the Employer’s board of directors,
excluding the CEO if a board member) and shall be net of any tax, medical or other
required withholdings. Severance payments shall commence upon the Employee’s “separation
of service” within the meaning of Section 409A(a)(2)(A)(i) of the Internal Revenue Code
of 1986, as amended (“Code”) from the Employer; provided, however, any payments that
would otherwise be made in the case of a “specified employee” within the meaning of
Section 409A(a)(2)(B)(i) of the Code, within six months after such Employee’s separation
from service (but only with respect to payments that would otherwise be subject to
additional tax under Code Section 409A), shall be delayed until the date of such
Employee’s separation from service or, if applicable, expiration of the six month period
(or, if earlier, the date of death of the Employee).

 

 

 

	 	 	 	 	 	 	 	 	 

	Title: Severance Policy
	 	No.

GP-04
	 	Date Issued:

June 15, 2011
	 	Supersedes
Policy

dated 7/26/04 and

GP-04 dated

5/21/07, 12/31/08 &

6/01/10
	 	Page 4 of 6

	 	 	 	No severance payments will be made later than two years after the separation from
service or without the return of an executed and non-revoked Release Agreement.

	 	•	 	Medical, Dental, and/or Vision Benefit Continuation. If you have medical, dental,
and/or vision coverage provided by or through the Employer upon your termination of
employment, these coverages will terminate at the end of the month following the date your
employment terminates. You and your dependents have the right to continue your benefits
under COBRA. If you choose to continue your benefits under COBRA, the Employer will share
in the cost of the established COBRA rate through the period specified in the attached
Addendum based on your Position or Classification on the date your employment terminates.
You will be responsible to share the cost of the COBRA rate by paying an equivalent of the
established employee premium rate through your specific severance period. The Employer
reserves the right to pay you a lump- sum value of the established COBRA rate equal to the
length of your specified severance period in lieu of paying the Employer share of cost, in
which case you will then be required to pay the full COBRA rate for any continued
coverage, and the lump sum payment to you will be taxable income to you. At the end of
your specified severance period, you will be responsible for the entire COBRA rate (both
employee and Employer portions) through the remaining COBRA period.

	 	 	 	Additionally, the benefit continuation benefit applies only to medical, dental, and vision
benefits under Employer-sponsored Plans. It is not provided for the cost of any flexible
spending account coverage (which in certain circumstances is also subject to COBRA) or
other benefits (for example life insurance or long term disability benefits.) Except for
the limited continuation of health coverage discussed here, other employee benefit plans
and arrangements of the Employer stop when your employment terminates in accordance with
the standard rules of such Plans and arrangements.

	 	•	 	Outplacement Assistance. You will be able to obtain outplacement assistance
services from an outplacement firm selected by the Employer for a specified period of
time, as indicated in the Addendum, based on your Position or Classification on the date
your employment terminates. You must begin such outplacement assistance within three
months of your employment termination to receive this benefit.

CONDITIONS TO PAYMENT OF BENEFITS

As a condition of your entitlement to severance benefits under this policy, you must agree in
writing to release the Company and others associated with the Company from any and all legal claims
associated with your employment by the Employer, except those preserved by public policy, by
signing and not revoking the Release Agreement.

Your severance benefits will be paid in equal installments or in a lump-sum payment, solely
determined by the Company, after the expiration of any applicable waiting periods set forth in the
Release Agreement and starting within two pay periods of said waiting period and never to exceed
two years (unless payment is delayed as provided herein). Your severance benefits will be subject
to all applicable tax and other withholdings. No deductions will be made as contributions to the
Westmoreland Coal Company and Subsidiaries Employees’ Savings Plan, also known as the 401(k) Plan.
As provided above, you will not be paid severance benefits if you are in material violation of
applicable Company policies or you are in violation of any other legal or contractual obligation
you may owe the Employer, including without limitation the Release Agreement. To the extent that an
Eligible Employee is or has been covered by any other Company or Employer
severance policy(ies) or arrangement(s), this Severance Policy expressly supersedes and
replaces any and all such policy(ies) or arrangement(s) (other than an individual written
employment agreement or other written agreement relating to payment upon separation from
employment, including change of control agreements) the terms of which will supersede this policy
to the extent such terms are inconsistent herewith.

 

 

 

	 	 	 	 	 	 	 	 	 

	Title: Severance Policy
	 	No.

GP-04
	 	Date Issued:

June 15, 2011
	 	Supersedes
Policy

dated 7/26/04 and

GP-04 dated

5/21/07, 12/31/08 &

6/01/10
	 	Page 5 of 6

If you become re-employed with the Company or another Employer in any category of employment prior
to your completion of the severance compensation period, your severance benefits under this policy
resulting from the termination will cease, and if you received a lump sum, you will be required to
reimburse the Company for the remaining pro-rated amount of severance in accordance with your
identified severance period as referenced in the attached Addendum. You again will be subject to
the terms of this policy.

If a court of competent jurisdiction, including without limitation a United States Bankruptcy
Court, limits the amount or ability of the Company to pay benefits hereunder, neither the Company,
its subsidiaries, affiliates, or successors and their respective employees, officers, directors,
shareholders, and agents will have any liability therefore. Likewise, regardless of whether
benefits described hereunder are in certain jurisdictions deemed to be wages or compensation, no
employee, officer, director, shareholder, or
agent of the Company or its subsidiaries, affiliates or successors assumes any liability for the
payment of benefits hereunder.

SURVIVABILITY OF PAYMENTS

The commitments under this policy shall survive, to the extent permissible by law, upon the
bankruptcy, insolvency, liquidation or dissolution of the Company.

 

 

 

	 	 	 	 	 	 	 	 	 
	Title: Severance Policy
	 	No.

GP-04
	 	Date Issued:

June 15, 2011
	 	Supersedes
Policy

dated 7/26/04 and

GP-04 dated

5/21/07, 12/31/08 &

6/01/10
	 	Page 6 of 6

ADDENDUM

WESTMORELAND COAL COMPANY SEVERANCE POLICY FOR NON-UNION EMPLOYEES

JUNE 1, 2010

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Outplacement	 	Health Benefit
	Grade	 	Level	 	Position or Classification	 	Severance Compensation	 	Assistance	 	Cost Share
	12 &

Above

	 	 	1	 	 	•   CEO

•   Chief Financial Officer

•   Senior/Executive Vice
Presidents

•   General Counsel

•   Vice Presidents of a
Functional
Area

	 	Twelve months of monthly base
pay as defined in this document
	 	Nine-month

program
	 	Twelve months
	11

	 	 	2	 	 	•   Directors of a Functional Area

•   Assistant General Counsel

•   Mine Managers

•   Corporate Controller

	 	Nine months of monthly base
pay; plus one week of base pay
for each year of service, not to
exceed a maximum of 12
months of monthly base pay as
defined in this document.
	 	Six-month

program
	 	Nine months
	9, 10

	 	 	3	 	 	•    Senior Managers of a
Functional Area

	 	Six months of monthly base pay;
plus one week of base pay for
each year of service, not to
exceed a maximum of 12
months of monthly base pay as
defined in this document.
	 	Three-month

program
	 	Six months
	 
	8, 9

	 	 	4	 	 	•    Other Management Personnel

or key contributors

	 	One month of monthly base pay
as defined in this document plus
one week of weekly base pay as
defined in this document for
each year of service not to
exceed 26 weeks
	 	Two-week

program
	 	Equal to
Severance
Compensation
	 
	6, 7

	 	 	5	 	 	Other Exempt Salaried Personnel
who are Individual Contributors
	 	One month of monthly base pay
as defined in this document plus
one week of weekly base pay as
defined in this document for
each year of service not to
exceed 26 weeks
	 	Two-day

program
	 	Equal to
Severance
Compensation
	 
	5 &

Below

	 	 	6	 	 	Non-Exempt or Hourly Personnel
	 	One week of weekly base pay as
defined in this document per
Year of Service — two-week
minimum not to exceed 26
weeks
	 	Two-day

program
	 	One monthexv10w3

Exhibit 10.3

 

Spirit AeroSystems Holdings, Inc. Second Amended and Restated Short-Term Incentive
Plan

 

August 2, 2011

 

SPIRIT AEROSYSTEMS HOLDINGS, INC.

SECOND AMENDED AND RESTATED SHORT-TERM INCENTIVE PLAN

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I — PURPOSE
	 	 	1	 
	 
	 	 	 	 
	Section 1.01. Purpose
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II — DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	Section 2.01. Affiliate
	 	 	1	 
	Section 2.02. Beneficiary or Beneficiaries
	 	 	2	 
	Section 2.03. Board of Directors
	 	 	2	 
	Section 2.04. Change in Control
	 	 	2	 
	Section 2.05. Code
	 	 	2	 
	Section 2.06. Committee
	 	 	2	 
	Section 2.07. Company
	 	 	2	 
	Section 2.08. Effective Date
	 	 	2	 
	Section 2.09. Employee
	 	 	2	 
	Section 2.10. Employer
	 	 	2	 
	Section 2.11. Onex
	 	 	2	 
	Section 2.12. Participant
	 	 	3	 
	Section 2.13. Person
	 	 	3	 
	Section 2.14. Plan
	 	 	3	 
	Section 2.15. Plan Year
	 	 	3	 
	Section 2.16. Qualifying Retirement
	 	 	3	 
	Section 2.17. Separation from Service
	 	 	3	 
	Section 2.18. Shares
	 	 	3	 
	Section 2.19. Sole Discretion
	 	 	3	 
	 
	 	 	 	 
	ARTICLE III — ELIGIBILITY
	 	 	3	 
	 
	 	 	 	 
	Section 3.01. Eligibility
	 	 	3	 
	 
	 	 	 	 
	ARTICLE IV — BENEFITS
	 	 	4	 
	 
	 	 	 	 
	Section 4.01. Benefits
	 	 	4	 
	Section 4.02. Grants of Shares
	 	 	4	 
	Section 4.03. Lapse Restriction
	 	 	5	 
	Section 4.04. Additional Conditions
	 	 	6	 
	Section 4.05. Restriction on Transfer of Shares
	 	 	6	 
	Section 4.06. Dividends
	 	 	6	 
	Section 4.07. Limitations on Stockholder Rights
	 	 	6	 

-i-

 

	 	 	 	 	 
	 	 	Page	 
	Section 4.08. Certificates and Legends
	 	 	6	 
	 
	 	 	 	 
	ARTICLE V — PAYMENT OF BENEFITS
	 	 	7	 
	 
	 	 	 	 
	Section 5.01. Payment of Cash Benefits
	 	 	7	 
	Section 5.02. Payments in the Event of Death
	 	 	7	 
	 
	 	 	 	 
	ARTICLE VI — SOURCE OF BENEFITS
	 	 	8	 
	 
	 	 	 	 
	Section 6.01. Source of Benefits
	 	 	8	 
	Section 6.02. Multiple Employers
	 	 	8	 
	 
	 	 	 	 
	ARTICLE VII — ADMINISTRATION
	 	 	8	 
	 
	 	 	 	 
	Section 7.01. Committee
	 	 	8	 
	Section 7.02. Reliance on Certificates, etc.
	 	 	9	 
	Section 7.03. Plan Records
	 	 	9	 
	 
	 	 	 	 
	ARTICLE VIII — AMENDMENT AND TERMINATION
	 	 	9	 
	 
	 	 	 	 
	Section 8.01. Amendment
	 	 	9	 
	Section 8.02. Termination
	 	 	9	 
	 
	 	 	 	 
	ARTICLE IX — RESTRICTIONS ON ALIENATION
	 	 	10	 
	 
	 	 	 	 
	Section 9.01. Restrictions on Alienation
	 	 	10	 
	 
	 	 	 	 
	ARTICLE X — MISCELLANEOUS
	 	 	10	 
	 
	 	 	 	 
	Section 10.01. Effective Date
	 	 	10	 
	Section 10.02. Transfers and Payments Net of Withholding
	 	 	10	 
	Section 10.03. Binding on Successors
	 	 	11	 
	Section 10.04. Adoption by Other Employers
	 	 	11	 
	Section 10.05. Minors and Incompetents
	 	 	11	 
	Section 10.06. Erroneous Payments
	 	 	11	 
	Section 10.07. Headings
	 	 	12	 
	Section 10.08. Notices
	 	 	12	 
	Section 10.09. Severability
	 	 	12	 
	Section 10.10. No Contract of Employment
	 	 	12	 
	Section 10.11. Certain Limitations
	 	 	12	 
	Section 10.12. State Law
	 	 	12	 
	Section 10.13. Government and Other Regulations
	 	 	12	 
	Section 10.14. Nonexclusivity of the Plan
	 	 	12	 

-ii-

 

SPIRIT AEROSYSTEMS HOLDINGS, INC.

SECOND AMENDED AND RESTATED SHORT-TERM INCENTIVE PLAN

     W I T N E S S E T
H: That;

     WHEREAS, the Company sponsors and maintains the Spirit AeroSystems Holdings, Inc. Short-Term
Incentive Plan, pursuant to which specified incentive benefits are provided to Participants in the
form of cash or shares of the Company’s common stock, or both, on the terms and conditions set
forth herein; and

     WHEREAS, the Company desires to amend the Plan; and

     WHEREAS, it has become desirable to amend and restate the Plan in its entirety; and

     WHEREAS, the Board of Directors of the Company has reviewed the terms and provisions hereof
and found them satisfactory.

     NOW, THEREFORE, effective as of the Effective Date, the Company hereby adopts this amended and
restated Plan on the terms and conditions set forth herein, which Plan will be known as the “Spirit
AeroSystems Holdings, Inc. Second Amended and Restated Short-Term Incentive Plan” (the “Plan”).

ARTICLE I — PURPOSE

     Section 1.01. Purpose. The purpose of the Plan is to provide specified incentive
benefits, in the form of cash or Shares or both, to Employees who are eligible to participate in
the Plan, subject to certain conditions and restrictions, as set forth in the Plan. The maximum
aggregate number of Shares that may be granted to Participants under the Plan shall be 2,800,000
shares of the Company’s Class A common stock.

ARTICLE II — DEFINITIONS

     For purposes of the Plan, the following terms shall have the following meanings, unless the
context clearly indicates otherwise.

     Section 2.01. Affiliate means, with respect to any Person, (a) any director or
executive officer of such Person; (b) any spouse, parent, sibling, descendant or trust for the
exclusive benefit of such Person or his or her spouse, parent, sibling or descendant (or the
spouse, parent, sibling or descendant of any director or executive officer of such Person); and (c)
any other Person that, directly or indirectly, controls or is controlled by or is under common
control with such Person. For the purpose of
this definition, (i) “control” (including with correlative meanings, the terms “controlling,”
“controlled by” and “under common

- 1 -

 

control with”), as used with respect to any Person, means the
possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of such Person, whether through the ownership of voting securities, status as a
general partner, or by contract or otherwise; and (ii) Onex shall be deemed to control any Person
controlled by Gerald W. Schwartz so long as Mr. Schwartz controls Onex Corporation.

     Section 2.02. Beneficiary or Beneficiaries means the person, persons, entity, or
entities entitled to receive any benefits under this Plan pursuant to the designation of the
Participant (or in default of such designation) as provided in Section 5.02 hereof.

     Section 2.03. Board of Directors means the Board of Directors of the Company.

     Section 2.04. Change in Control means (i) a transaction pursuant to which a Person, or
more than one Person acting as a group (in either case, however, excluding Onex), acquires more
than 50% of the total voting power of the stock of the Company (including, but not limited to,
acquisition by merger, consolidation, recapitalization, reorganization or sale or transfer of the
Company’s equity interests); (ii) a merger or consolidation involving the Company in which the
Company is not the surviving entity; or (iii) a transaction that is a sale or transfer of all or
substantially all of the assets of the Company or Spirit AeroSystems, Inc. to a Person other than
Onex, if all or substantially all of the proceeds from such transaction are distributed to the
stockholders of the Company.

     Section 2.05. Code means the Internal Revenue Code of 1986, as amended.

     Section 2.06. Committee means the Board of Directors or a committee appointed by, and
serving at the pleasure of, the Board of Directors for purposes of administering the Plan, which
committee shall operate under rules and procedures established by the Board of Directors from time
to time for such purpose.

     Section 2.07. Company means Spirit AeroSystems Holdings, Inc., a Delaware corporation,
or its successor.

     Section 2.08. Effective Date has the meaning set forth in Section 10.01.

     Section 2.09. Employee means a consultant or independent contractor of the Employer or
any individual who is employed and compensated (by a payroll check issued directly from the
Employer or Employer agent to the Employee or direct payroll deposit made to the Employee’s account
by the Employer or Employer agent) by the Employer.

     Section 2.10. Employer means the Company, Spirit AeroSystems, Inc. (or its successor),
and any other entity that adopts this Plan with the consent and approval of the Committee.

     Section 2.11. Onex means Onex Partners LP, Onex Corporation or any Affiliate of Onex
Partners or Onex Corporation, including, for purposes of this Plan, (a) any Person which has
granted to Onex Partners, Onex Corporation or any of their respective Affiliates

- 2 -

 

the right to vote
or dispose of such Person’s Shares; and (b) any employee, officer or director of Onex Corporation.

     Section 2.12. Participant means an Employee who has been designated by the Committee
as eligible to participate in this Plan pursuant to Section 3.01. Where the context requires, the
term “Participant” also shall include a former Participant.

     Section 2.13. Person means an individual, trust, estate, partnership, limited
liability company, association, corporation, or other entity.

     Section 2.14. Plan means this Spirit AeroSystems Holdings, Inc. Second Amended and
Restated Short-Term Incentive Plan, as amended.

     Section 2.15. Plan Year means the 12-month period commencing January 1 each year.

     Section 2.16. Qualifying Retirement means, with respect to a Participant, a Separation
from Service that is a voluntarily termination of employment with the Employer (but not a death,
discharge, or other involuntary termination of employment) on or after attaining age 55 with at
least 10 years of service or, alternatively, on or after attaining age 60 with at least 5 years of
service.

     Section 2.17. Separation from Service means the termination of employment (including
termination of a consulting or independent contractor arrangement) with the Employer. The term
includes, but is not limited to, a termination which arises from a Participant’s death, disability,
discharge (with or without cause), or voluntary termination. In the case of an employee, the term
shall not include any temporary absences due to vacation, sickness, or other leaves of absence
granted to a Participant by the Employer. A Separation from Service shall not be deemed to occur,
however, upon a transfer involving any combination of any entity comprising the Employer.

     Section 2.18. Shares means shares of the Company’s common stock.

     Section 2.19. Sole Discretion means the right and power to decide a matter, which
right may be exercised arbitrarily at any time and from time to time.

ARTICLE III — ELIGIBILITY

     Section 3.01. Eligibility. The Committee shall have the unrestricted right and power,
which may be exercised in its Sole Discretion at any time and from time to time, to designate
Employees who are eligible to participate in this Plan. The Committee also shall have the right,
in its Sole Discretion, to terminate an individual’s future participation in this Plan.

- 3 -

 

ARTICLE IV — BENEFITS

     Section 4.01. Benefits. For each Plan Year, the Committee will establish performance
targets or goals and corresponding incentive benefits available to Participants under the Plan,
which may be revised by the Committee at any time, in its Sole Discretion. Benefits may be offered
under the Plan in the form of cash, Shares, or both, in such amounts as the Committee may determine
in its Sole Discretion. Except as otherwise provided in this Plan, a Participant will be entitled
to receive benefits under the Plan only if the Participant is employed by the Employer continuously
throughout the Plan Year, to include the last day of the Plan Year. No Participant shall have the
right or be offered the opportunity to elect the form or amount of the Participant’s benefit under
the Plan, it being within the Sole Discretion of the Committee to determine the form and amount of
benefits to be offered under the Plan (if any). Grants of Shares under the Plan may be made only
in shares of the Company’s Class A common stock.

     In the event of a Change in Control, each Participant who is employed by the Employer on the
date of the closing of the Change in Control or who was involuntarily terminated by the Employer
without cause during the 90-day period ending on the date of the closing of the Change in Control
will have a benefit under the Plan for the Plan Year in which the Change in Control occurs
determined as follows: (1) the performance metrics established under the Plan for that Plan Year
will be deemed to have met target performance; and (2) each affected Participant will receive a
full-year award for that Plan Year based on target performance, which award will be paid 100% in
cash (i.e., no portion of the benefit will be paid in Shares), at the time and in the manner
provided under Section 5.01.

     In the event of a Participant’s Qualifying Retirement, the Participant will have a benefit
under the Plan for the Plan Year in which the Qualifying Retirement occurs determined as follows:
(1) the performance metrics established under the Plan for that Plan Year will be measured as of
the last day of the Plan Year at the same time and in the same manner as measured for all other
Participants; (2) if performance for the Plan Year is such that any benefits are otherwise payable
under the Plan for that Plan Year, the affected Participant will receive a prorated award for that
Plan Year determined by multiplying the full-year award (if any) that would be payable under the
Plan if the Participant had remained employed for the entire Plan Year by a fraction, the numerator
of which is the number of whole or partial months in the calendar year through the date of the
Qualifying Retirement
and the denominator of which is 12; and (3) the benefits (if any) payable under the foregoing
terms will be paid 100% in cash (i.e., no portion of the benefit will be paid in Shares), at the
time and in the manner provided under Section 5.01.

     Section 4.02. Grants of Shares. In the event Shares are granted to a Participant
under the Plan (which Shares shall be subject to the restrictions contained in this Plan and are
referred to in this Plan as “Restricted Shares”), the Committee may establish such terms,
conditions, restrictions, or procedures related to the grant as the Committee deems necessary or
appropriate, including, but not limited to, requiring, as a condition precedent to such grant that
a Participant execute a shareholders’ agreement or other documents or agreements as the Committee
deems necessary or appropriate, in such form and substance as may be satisfactory to the Committee,
in its Sole Discretion.

- 4 -

 

Participation by a Participant in any grant of Restricted Shares under the
Plan shall neither limit nor require participation by the Participant in any other benefits under
Plan, it being within the Sole Discretion of the Committee to determine the individuals eligible to
participate in the Plan and in a grant of Shares or other award of benefits under the Plan. The
Restricted Shares may be either previously issued Shares that have been reacquired by the Company
or authorized but unissued Shares, as the Board of Directors shall from time to time determine. If
any Restricted Shares granted under the Plan are subsequently forfeited, such Shares shall again
become available to be granted under the Plan.

     Although Restricted Shares granted under the Plan are subject to certain lapse restrictions
set forth in this Article IV and are substantially nonvested upon grant, grants of such Shares are
intended to constitute transfers of such Shares within the meaning of Code Section 83 upon grant.
Accordingly, Participants receiving grants of Restricted Shares under the Plan will be eligible to
make an election under Code Section 83(b) with respect to Restricted Shares at the time such Shares
are granted, subject to complying with all applicable requirements for making such an election,
including, but not limited to, the requirement that such election be made within 30 days after the
date of transfer.

     Section 4.03. Lapse Restriction. Restricted Shares granted under the Plan to a
Participant will be substantially nonvested upon grant and will be subject to restrictions that
will lapse only if the Participant is credited with one year of service after the date such Shares
are granted to the Participant. A Participant shall be credited with one year of service after the
date Shares are granted to the Participant if the Participant is continuously performing services
(or deemed to be continuously performing services) for the Employer for the 12-month period ending
on the anniversary of the date the Restricted Shares are granted to the Participant. However, the
Committee may at any time, in its Sole Discretion, credit a Participant with a year of service
after the date Restricted Shares are granted to the Participant or otherwise accelerate vesting or
remove restrictions with respect to Restricted Shares granted under the Plan, if the Committee
determines, in its Sole Discretion, it is in the best interests of the Company to do so. In
addition:

	 	A.	 	In the event of a Change in Control, each Participant who is employed by the
Employer on the date of the closing of the Change in Control or who was involuntarily
terminated by the Employer without cause during the 90-day period ending on the date
of the closing of the Change in Control will be automatically fully (100%) vested with
respect to all of the Restricted Shares previously granted under the Plan (and not
previously forfeited) so that, immediately prior to the closing of the Change in
Control, such Shares will no longer be subject to any lapse restriction or risk of
forfeiture imposed in connection with this Plan.
	 
	 	B.	 	In the event of a Participant’s Qualifying Retirement, the Participant will
be automatically fully (100%) vested with respect to all of the Restricted Shares
previously granted under the Plan (but not forfeited) so that, immediately prior to
the Qualifying Retirement, such Shares will no longer be subject to any lapse
restriction or risk of forfeiture imposed in connection with this Plan.

- 5 -

 

     Restricted Shares granted to a Participant shall be deemed to have been granted as of the date
designated and prescribed by the Committee. Except as provided above, if a Separation from Service
occurs during the 12-month period following the grant of Restricted Shares, the nonvested
Restricted Shares will be forfeited and will again be available for grant under the Plan.

     Section 4.04. Additional Conditions. Shares acquired under the Plan shall be subject
to any and all terms, conditions, and restrictions set forth in the Company’s certificate of
incorporation and bylaws, as well as the Stockholders Agreement and any other agreement entered
into with respect to such Shares.

     Section 4.05. Restriction on Transfer of Shares. Shares acquired under this Plan
shall be subject to such conditions and restrictions on transfer as are set forth in the Company’s
certificate of incorporation and bylaws, as well as any stockholders agreement and any other
agreement entered into with respect to such Shares. Any voluntary or involuntary sale, assignment,
transfer, or exchange of Shares acquired under the Plan that fails to satisfy or comply with any
applicable condition or restriction on such sale, assignment, transfer, or exchange shall be void
and of no effect and shall not bind or be recognized by the Company. No Shares may be transferred
unless the transferee first executes, acknowledges, and delivers to the Company such instruments as
the Company may deem necessary or advisable to effect the transfer.

     Section 4.06. Dividends. Dividends declared by the Board of Directors with respect to
Shares shall, with respect to any Restricted Shares, be cumulated and paid to the Participant only
if and at the time, and to the extent that, the restrictions imposed with respect to such
Restricted Shares lapse in accordance with this Article IV and the Restricted Shares become
substantially vested.

     Section 4.07. Limitations on Stockholder Rights. Restricted Shares shall not be
subject to transfer or assignment, and a Participant granted Restricted Shares will not have the
right to vote such shares or otherwise exercise the rights of a stockholder in the Company with
respect to Restricted Shares unless and until the restrictions imposed with respect to such
Restricted Shares in accordance with this Article IV lapse and the Restricted Shares become
substantially vested.

     Section 4.08. Certificates and Legends. The Company may, but shall not be required
to, issue certificates with respect to Restricted Shares granted under the Plan. If certificates
representing Restricted Shares are issued, such certificates will bear (until, in the opinion of
counsel, which opinion must be reasonably satisfactory in form and substance to counsel for the
Company, it is no longer necessary or required) the following legend:

- 6 -

 

     The securities represented by this document are subject to the terms,
conditions, restrictions, and contingencies, including restrictions
on transfer and risk of forfeiture, contained in the Spirit AeroSystems Holdings, Inc. Second
Amended and Restated Short-Term Incentive Plan, as amended from time to time, a
copy of which is on file at the principal office of Spirit AeroSystems Holdings,
Inc.

ARTICLE V — PAYMENT OF BENEFITS

     Section 5.01. Payment of Cash Benefits. To the extent a Participant is entitled to
receive a cash benefit under Section 4.01 hereof with respect to services performed during a Plan
Year, such benefit shall be payable in a lump sum as soon as administratively practicable after the
end of such Plan Year, but in no event later than 21/2 months after the end of such Plan Year,
subject to any timely election to defer payment of all or part of such benefit in accordance with
the terms and provisions of the Spirit AeroSystems Holdings, Inc. Amended and Restated Deferred
Compensation Plan.

     Notwithstanding the foregoing, in the event of a Change in Control, cash benefits that become
payable by reason of the Change in Control (see Section 4.01) will be paid as soon as
administratively practicable on or after the date of the closing of the Change in Control, but in
no event later than 21/2 months after the earlier of (i) the closing of the Change in Control; or
(ii) the last day of the year in which the Participant’s employment terminates, if employment
terminates prior to the closing of the Change in Control, and in all cases subject to any timely
election to defer payment of all or part of such benefit in accordance with the terms and
provisions of the Spirit AeroSystems Holdings, Inc. Amended and Restated Deferred Compensation
Plan.

     Section 5.02. Payments in the Event of Death. In the event a Participant dies before
receiving all benefits payable to Participant under the Plan, payment of the remaining amounts
shall be made to the Participant’s Beneficiary. The Beneficiary of a Participant shall be the
person, persons, entity, or entities designated by the Participant on a beneficiary designation
form provided by the Committee. A Participant shall have the right to change the Participant’s
Beneficiary designation at any time; provided, however, that no change of a
beneficiary shall be effective until received and accepted by the Committee. In the event a
Participant dies without having a valid Beneficiary designation in force, or in the event no
designated Beneficiary is alive or in being at the time of the Participant’s death, the
Participant’s Beneficiary shall be deemed to be the Participant’s surviving spouse or, if the
Participant leaves no surviving spouse, the Participant’s estate.

     If the Committee has any doubt as to the proper person(s) or entity(ies) to receive payments
hereunder, it shall have the right to withhold payment until the matter is finally adjudicated.
Any payment made in good faith and in accordance with the provisions of the Plan and a
Participant’s beneficiary designation form shall fully discharge the Employer from all further
obligations with respect to such payment.

- 7 -

 

ARTICLE VI — SOURCE OF BENEFITS

     Section 6.01. Source of Benefits. Amounts payable hereunder shall be paid exclusively
from the general assets of the Employer. The Employer’s obligation under this Plan shall
constitute a mere promise to pay benefits in the future, and no person entitled to payment
hereunder shall have any claim, right, security interest, or other interest in any fund, trust,
account, insurance contract, or other asset of Employer. The Employer is not obligated to invest
in any specific assets or fund, but it may invest in any asset or assets it deems advisable in
order to provide a means for the payment of any liabilities under this Plan and may contribute
amounts to a trust conforming to the requirements of Revenue Procedure 92-64, as amended. With
respect to cash benefits (if any), each Participant shall be an unsecured general creditor of the
Employer and shall have no interest whatsoever in any such assets or fund. The Employer’s
liability for the payment of benefits hereunder shall be evidenced only by this Plan.

     Section 6.02. Multiple Employers. In the event a Participant is or has been employed
by two or more Employers and is entitled to a benefit from more than one Employer under this Plan,
the liability for the payment of such Participant’s benefits under this Plan shall be apportioned
among the Employers based upon a determination made by the Committee, in its Sole Discretion. A
Participant may only secure payment of benefits from the Employer to whom the Committee has
apportioned liability for the benefits.

ARTICLE VII — ADMINISTRATION

     Section 7.01. Committee. The Committee shall have full power to administer this Plan
in all of its details, which powers shall include, but are not limited to, the authority, in
addition to all other powers provided by this Plan, to:

	 	A.	 	Determine in its Sole Discretion the eligibility of any individual to
participate in the Plan;
	 
	 	B.	 	Make discretionary interpretations regarding the terms of the Plan and make
factual findings with respect to any issue arising under the Plan, including, but not
limited to, the power to determine whether an individual is eligible to participate in
the Plan or receive benefits under the Plan and whether an individual has incurred a
Separation from Service, with its interpretation to be final and conclusive;
	 
	 	C.	 	Compute the amounts payable for any Participant or other person in accordance
with the provisions of the Plan, determine the manner and time for making such
payments in accordance with the provisions of the Plan, and determine and authorize
the person or persons to whom such payments will be paid;

- 8 -

 

	 	D.	 	Receive and review claims for benefits and render decisions respecting such
claims under the Plan;
	 
	 	E.	 	Make and enforce such rules and regulations as it deems necessary or proper
for the efficient administration of this Plan;
	 
	 	F.	 	Appoint such agents, specialists, legal counsel, accountants, consultants, or
other persons as the Committee deems advisable to assist in administering the Plan;
and
	 
	 	G.	 	Maintain all records of the Plan.

     Section 7.02. Reliance on Certificates, etc. The members of the Committee, the Board
of Directors, and the officers and employees of the Company shall be entitled to rely on all
certificates and reports made by any duly appointed accountants and on all opinions given by any
duly appointed legal counsel. Such legal counsel may be counsel for the Employer.

     Section 7.03. Plan Records. In all matters related to administration of the Plan, the
official determinations and records of the Plan, as made, identified, and maintained by the
Committee, in its Sole Discretion, will control. In the event of any discrepancy between the
official determinations and records of
the Plan and any other document or communication, the official determinations and records of
the Plan will control.

ARTICLE VIII — AMENDMENT AND TERMINATION

     Section 8.01. Amendment. The Board of Directors reserves the right, at will, at any
time and from time to time, to modify, alter, or amend this Plan (including without limitation a
retroactive modification, alteration, or amendment), in whole or in part, and any such
modification, alteration, or amendment shall be binding upon the Company, the Committee, each
Participant, any adopting Employer, and all other persons; provided, however, that
no amendment shall, without a Participant’s (or present interest Beneficiary’s) written consent,
materially diminish the rights of the Participant with respect to benefits earned or grants of
Shares or Restricted Shares previously made to the Participant under the Plan. Notwithstanding the
foregoing, no consent shall be required and the Board of Directors shall have the right to modify,
alter, or amend this Plan (including a retroactive modification, alteration or amendment), at will
and at any time, if it determines, in its Sole Discretion, that such amendment is necessary to
comply with applicable law, which shall include, but shall not be limited to, the right to
retroactively apply any amendments necessary to comply with any provision of the Code or any
judicial or administrative guidance.

     Section 8.02. Termination. The Company will have no obligation whatsoever to maintain
this Plan for any given length of time and may, at will and at any time, discontinue or terminate
this Plan in whole or in part. In addition, an adopting Employer shall have the right to
discontinue or terminate its participation in this Plan as to its Employees. Upon a

- 9 -

 

complete or
partial termination of the Plan, each affected Participant (and present interest Beneficiary) shall
be entitled to receive benefits in accordance with Article V. No complete or partial
discontinuance or termination of the Plan shall, without a Participant’s (or present interest
Beneficiary’s) written consent, materially diminish the rights of the Participant with respect to
benefits earned or grants of Shares or Restricted Shares previously made to the Participant under
the Plan.

ARTICLE IX — RESTRICTIONS ON ALIENATION

     Section 9.01. Restrictions on Alienation. Until the actual receipt of any benefit
under this Plan by a Participant or Beneficiary, no right or benefit under the Plan shall be
subject in any manner to anticipation, alienation, sale, assignment, transfer, pledge, encumbrance,
garnishment, execution, levy, or charge of any kind, whether voluntary or involuntary, including
assignment or transfer to satisfy any liability for alimony or other payments for property
settlement or support of a spouse or former spouse or other relative of a Participant or
Beneficiary, whether upon divorce, legal separation, or otherwise. Any attempt to anticipate,
alienate, sell, assign, transfer, pledge, encumber, garnish, execute upon, levy upon, or
charge any right or benefit under the Plan shall be void. No right or benefit hereunder shall in
any manner be liable for or subject to the debts, contracts, liabilities, engagements, or torts of
the person entitled to such benefit, and no right or benefit hereunder shall be considered an asset
of such person in the event of his or her divorce, insolvency, or bankruptcy. The rights of a
Participant or a Beneficiary hereunder shall not be subject in any manner to attachment or other
legal process for the debts of the Participant or such Beneficiary.

ARTICLE X — MISCELLANEOUS

     Section 10.01. Effective Date. This second amended and restated Plan shall be
effective from and after the date of its adoption and approval by the Board of Directors (the
“Effective Date”).

     Section 10.02. Payments and Transfers Net of Withholding. Notwithstanding any other
provision of the Plan, all transfers or payments shall be net of any amount sufficient to satisfy
all federal, state, and local withholding tax requirements, and shall also be net of all amounts
owed by Participant to the Employer.

     With respect to Shares granted to a Participant under this Plan, any required withholdings or
reductions may be accomplished by any of the following methods (or any combination of the following
methods), as determined by the Committee in its Sole Discretion: (i) the total number of Shares
granted to the Participant may be reduced by a number of whole or fractional Shares (as determined
by the Committee, in its Sole Discretion), the value of which will be applied to satisfy such
withholdings or reductions, but if the value of the Shares so withheld exceeds the amount of such
withholdings or reductions, such excess will be paid in cash to the Participant within 21/2 months
after the date the

- 10 -

 

withholding occurs; (ii) the amount of the withholdings or reductions may be
withheld from other amounts payable to the Participant by the Employer, including, but not limited
to, other compensation; (iii) the Participant may be required, as a condition precedent to transfer
or release of the Shares, to make a payment to the Employer in an amount equal to the amount of the
withholdings or reductions (e.g., by selling a sufficient number of Shares); or (iv) such other
method or combination of methods as the Committee deems appropriate, in its Sole Discretion.

     The Committee will have the right, in its Sole Discretion, to require, as a condition
precedent to the transfer or release of any Shares granted under this Plan, that the transferee
execute such agreements or documents (e.g., power of attorney) as the Committee deems necessary or
appropriate.

     Section 10.03. Binding on Successors. This Plan shall be binding upon all
Participants, their respective heirs, and personal representatives, and upon the Employer, its
successors, and assigns.

     Section 10.04. Adoption by Other Employers. Any employer, corporation, or other
entity with employees now in existence or hereafter formed or acquired, which is not already an
Employer under this Plan, and which is otherwise legally eligible, may in the future, with the
consent and approval of the Company, adopt this Plan, and thereby, from and after the specified
effective date, become an Employer under this Plan. However, the sole and absolute right to amend
the Plan is reserved to the Company. It shall not be necessary for the adopting corporation or
entity to sign or execute the original or the amended Plan documents. The administrative powers
and control of the Company as provided in the Plan, including the sole right of amendment and of
appointment and removal of the Committee, shall not be diminished by reason of the participation of
any such adopting entity in this Plan.

     Section 10.05. Minors and Incompetents. If any person to whom a benefit is payable
under this Plan is legally incompetent, either by reason of age or by reason of mental or physical
disability, the Committee is authorized to cause the payments becoming due to such person to be
made to another for his or her benefit without responsibility of the Company, the Employer, the
Committee or the Board of Directors to see to the application of such payments. Payments made
pursuant to this authority shall constitute a complete discharge of all obligations hereunder.

     Section 10.06. Erroneous Payments. If any person receives any amount of benefits that
the Committee in its Sole Discretion later determines that such person was not entitled to receive
under the terms of the Plan, such person shall be required to immediately make reimbursement to the
Employer. In addition, the Committee shall have the right to offset any future claims for benefits
under the Plan against amounts that person was not otherwise entitled to receive.

- 11 -

 

     Section 10.07. Headings. The headings used in this Plan are inserted for reference
purposes only and shall not be deemed to limit or affect in any way the meaning or interpretation
of any of the terms or provisions herein.

     Section 10.08. Notices. Any notices or communications permitted or required to be
given herein by any Participant, the Company, the Committee, the Employer, or any other person
shall be deemed given either (i) when delivered; or (ii) three days after being placed in the
United States mail in an envelope addressed to the last communicated address of the person to whom
the notice is being given, with adequate postage thereon prepaid.

     Section 10.09. Severability. If any provision of this Plan shall be held invalid or
unenforceable, such invalidity or unenforceability shall not affect any other provisions thereof,
and the Plan shall be construed and enforced as if such provisions had not been included.

     Section 10.10. No Contract of Employment. Nothing contained herein shall be construed
to constitute a contract of employment between any Employee and any Employer. Nothing herein
contained shall be deemed to give any Employee the right to be retained in the employ of an
Employer or to interfere with the right of the Employer to discharge any Employee at any time
without regard to the effect such discharge might have on the Employee as a Participant under this
Plan.

     Section 10.11. Certain Limitations. In the event the Employer is subject to legal
limitations on the payment of benefits, then benefit payments hereunder shall be reduced or
eliminated, as the case may be, to comply with such legal limitations.

     Section 10.12. State Law. This Plan and all agreements entered into under the Plan
shall be governed, construed, administered, and regulated in all respects under the laws of the
State of Delaware, without regard to the principles of conflicts of law, to the extent such laws
are not preempted by the laws of the United States of America. Any action concerning the Plan or
any agreement entered into under the Plan shall be maintained exclusively in the state or federal
courts in Delaware.

     Section 10.13. Government and Other Regulations. The obligation of the Company to
grant or sell and deliver Shares under the Plan shall be subject to all applicable laws, rules, and
regulations and such approvals by any governmental agencies as may be required, including, but not
limited to, the effectiveness of a registration statement under the Securities Act of 1933, as
amended, as deemed necessary or appropriate by legal counsel for the Company.

     Section 10.14. Nonexclusivity of the Plan. The adoption of the Plan by the Board of
Directors shall not be construed as creating any limitations on the power of the Board of Directors
to adopt such other incentive arrangements as it may deem desirable.

- 12 -

 

     IN WITNESS WHEREOF, the Company has caused this second amended and restated Plan to be
executed by a duly authorized officer as of the Effective Date.

	 	 	 	 	 	 	 

	 	 	SPIRIT AEROSYSTEMS HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

- 13 -

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