Document:

a1027formofamended

                                                                                     Exhibit 10.27   (;FH[YZKWP(;                                                                                      ([KLELW                                    $0(1'('$1'5(67$7('                              &+$1*(2)&21752/(03/2<0(17$*5((0(17                  AGREEMENT by and between BorgWarner Inc., a Delaware corporation (the “Company”) and   WKH “Executive”) dated as of the  GD\RI    The Board of Directors of the Company (the “Board”), has determined that it is in the best interests of the  &RPSDQ\DQGLWVVWRFNKROGHUVWRDVVXUHWKDWWKH&RPSDQ\ZLOOKDYHWKHFRQWLQXHGGHGLFDWLRQRIWKH([HFXWLYH QRWZLWKVWDQGLQJWKHSRVVLELOLW\WKUHDWRURFFXUUHQFHRID&KDQJHRI&RQWURODVGHILQHGEHORZRIWKH&RPSDQ\7KH %RDUGEHOLHYHVLWLVLPSHUDWLYHWRGLPLQLVKWKHLQHYLWDEOHGLVWUDFWLRQRIWKH([HFXWLYHE\YLUWXHRIWKHSHUVRQDO uncertainties and risks created by a pending or threatened Change of Control and to encourage the Executive’s full  DWWHQWLRQDQGGHGLFDWLRQWRWKH&RPSDQ\FXUUHQWO\DQGLQWKHHYHQWRIDQ\WKUHDWHQHGRUSHQGLQJ&KDQJHRI&RQWURO DQGWRSURYLGHWKH([HFXWLYHZLWKFRPSHQVDWLRQDQGEHQHILWVDUUDQJHPHQWVXSRQD&KDQJHRI&RQWUROZKLFKHQVXUH WKDWWKHFRPSHQVDWLRQDQGEHQHILWVH[SHFWDWLRQVRIWKH([HFXWLYHZLOOEHVDWLVILHGDQGZKLFKDUHFRPSHWLWLYHZLWK WKRVHRIRWKHUFRUSRUDWLRQV7KHUHIRUHLQRUGHUWRDFFRPSOLVKWKHVHREMHFWLYHVDQGLQFRQVLGHUDWLRQRIWKH Executive’s covenants in Section WKH%RDUGKDVFDXVHGWKH&RPSDQ\WRHQWHULQWRWKLV$JUHHPHQW 12:7+(5()25(,7,6+(5(%<$*5(('$6)2//2:6 &HUWDLQ'HILQLWLRQV D The “Effective Date” shall mean the first date during the Change of Control Period  DVGHILQHGLQ6HFWLRQERQZKLFKD&KDQJHRI&RQWURODVGHILQHGLQ6HFWLRQRFFXUV$Q\WKLQJLQWKLV $JUHHPHQWWRWKHFRQWUDU\QRWZLWKVWDQGLQJLIL the Executive’s employment with the Company is terminated by  WKH&RPSDQ\LLWKH'DWHRI7HUPLQDWLRQLVSULRUWRWKHGDWHRQZKLFKD&KDQJHRI&RQWURORFFXUVDQGLLLLWLV UHDVRQDEO\GHPRQVWUDWHGE\WKH([HFXWLYHWKDWVXFKWHUPLQDWLRQRIHPSOR\PHQW$ZDVDWWKHUHTXHVWRIDWKLUG SDUW\WKDWKDVWDNHQVWHSVUHDVRQDEO\FDOFXODWHGWRHIIHFWD&KDQJHRI&RQWURORU%RWKHUZLVHDURVHLQFRQQHFWLRQ ZLWKRUDQWLFLSDWLRQRID&KDQJHRI&RQWUROWKHQIRUDOOSXUSRVHVRIWKLV$JUHH ment the “Effective Date” shall mean  WKHGDWHLPPHGLDWHO\SULRUWRVXFK'DWHRI7HUPLQDWLRQ E The “Change of Control Period” shall mean the period commencing on the date hereof and ending on the  WKLUGDQQLYHUVDU\RIWKHGDWHKHUHRISURYLGHG KRZHYHU WKDWFRPPHQFLQJRQWKHGDWHRQH\HDUDIWHUWKHGDWHKHUHRI DQGRQHDFKDQQXDODQQLYHUVDU\RIVXFKGDWHVXFKGDWHDQGHDFKDQQXDODQQLYHUVDU\WKHUHRIVKDOOEHKHUHLQDIWHU referred to as the “Renewal Date”), unless previously terminated, the Chan JHRI&RQWURO3HULRGVKDOOEH DXWRPDWLFDOO\H[WHQGHGVRDVWRWHUPLQDWHWKUHH\HDUVIURPVXFK5HQHZDO'DWHXQOHVVDWOHDVWGD\VSULRUWRWKH 5HQHZDO'DWHWKH&RPSDQ\VKDOOJLYHQRWLFHWRWKH([HFXWLYHWKDWWKH&KDQJHRI&RQWURO3HULRGVKDOOQRWEHVR H[WHQGHG &KDQJHRI&RQWURO . For the purpose of this Agreement, a “Change of Control” shall mean:  D7KHDFTXLVLWLRQE\DQ\LQGLYLGXDOHQWLW\RUJURXSZLWKLQWKHPHDQLQJRI6HFWLRQGRUGRI WKH6HFXULWLHV([FKDQJH$FWRIDV                                                                                                                                                      

 

  amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of 5XOHG SURPXOJDWHGXQGHUWKH([FKDQJH$FWRIRUPRUHRIHLWKHULWKHWKHQRXWVWDQGLQJVKDUHVRIFRPPRQVWRFNRI the Company (the “Outstanding Company Common Stock”) or (ii) WKHFRPELQHGYRWLQJSRZHURIWKHWKHQ RXWVWDQGLQJYRWLQJVHFXULWLHVRIW he Company entitled to vote generally in the election of directors (the “Outstanding  Company Voting Securities”); SURYLGHG KRZHYHU WKDWIRUSXUSRVHVRIWKLVVXEVHFWLRQDWKHIROORZLQJDFTXLVLWLRQV VKDOOQRWFRQVWLWXWHD&KDQJHRI&RQWURO:DQ\DFTXLVLWLRQGLUHFWO\IURPWKH&RPSDQ\;DQ\DFTXLVLWLRQE\WKH &RPSDQ\<DQ\DFTXLVLWLRQE\DQ\HPSOR\HHEHQHILWSODQRUUHODWHGWUXVWVSRQVRUHGRUPDLQWDLQHGE\WKH &RPSDQ\RUDQ\HQWLW\FRQWUROOHGE\WKH&RPSDQ\=DQ\DFTXLVLWLRQSXUVXDQWWRDWUDQVDFWLRQZKLFKFRPSOLHV ZLWKFODXVHVLLLDQGLLLRIVXEVHFWLRQFRIWKLV6HFWLRQ E Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason  WRFRQVWLWXWHDWOHDVWDPDMRULW\RIWKH%RDUGSURYLGHG KRZHYHU WKDWDQ\LQGLYLGXDOEHFRPLQJDGLUHFWRUVXEVHTXHQW to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a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subsidiaries (each of the foregoing, a “Business Combination”), in each case, unless, following such Business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or substantially all of the Company’s assets eith HUGLUHFWO\RUWKURXJKRQHRUPRUHVXEVLGLDULHVLQVXEVWDQWLDOO\WKH VDPHSURSRUWLRQVDVWKHLURZQHUVKLSLPPHGLDWHO\SULRUWRVXFK%XVLQHVV&RPELQDWLRQRIWKH2XWVWDQGLQJ&RPSDQ\ &RPPRQ6WRFNDQG2XWVWDQGLQJ&RPSDQ\9RWLQJ6HFXULWLHVDVWKHFDVHPD\EHLLQR3HUVRQH[FOXGLQJDQ\ FRUSRUDWLRQUHVXOWLQJIURPVXFK%XVLQHVV&RPELQDWLRQRUDQ\HPSOR\HHEHQHILWSODQRUUHODWHGWUXVWRIWKH &RPSDQ\RUVXFKFRUSRUDWLRQUHVXOWLQJIURPVXFK%XVLQHVV&RPELQDWLRQEHQHILFLDOO\RZQVGLUHFWO\RULQGLUHFWO\ RUPRUHRIUHVSHFWLYHO\WKHWKHQRXWVWDQGLQJVKDUHVRIFRPPRQVWRFNRUIRUDQRQFRUSRUDWHHQWLW\ HTXLYDOHQWVHFXULWLHVRIWKHHQWLW\UHVXOWLQJIURPVXFK%XVLQHVV&RPELQDWLRQRUWKHFRPELQHGYRWLQJSRZHURIWKH WKHQRXWVWDQGLQJYRWLQJVHFXULWLHVRIVXFKHQWLW\H[FHSWWRWKHH[WHQWWKDWVXFKRZQHUVKLSH[LVWHGSULRUWRWKH %XVLQHVV&RPELQDWLRQDQGLLLDWOHDVWDPDMRULW\RIWKHPHPEHUVRIWKHERDUGRIGLUHFWRUVRUIRUDQRQFRUSRUDWH HQWLW\HTXLYDOHQWJRYHUQLQJERG\RIWKHHQWLW\UHVXOWLQJ                                                                                                                                                      

 

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date (the “Employment Period”). The Employment Period shall terminate upon the Executive’s termination of  HPSOR\PHQWIRUDQ\UHDVRQ 7HUPVRI(PSOR\PHQW D3RVLWLRQDQG'XWLHV L'XULQJWKH(PSOR\PHQW3HULRG$WKH([HFX tive’s  SRVLWLRQLQFOXGLQJVWDWXVRIILFHVWLWOHVDQGUHSRUWLQJUHTXLUHPHQWVDXWKRULW\GXWLHVDQGUHVSRQVLELOLWLHVVKDOOEHDW OHDVWFRPPHQVXUDWHLQDOOPDWHULDOUHVSHFWVZLWKWKHPRVWVLJQLILFDQWRIWKRVHKHOGH[HUFLVHGDQGDVVLJQHGWRWKH ([HFXWLYHDWDQ\WLPHGXULQJWKHGD\SHULRGLPPHGLDWHO\SUHFHGLQJWKH(IIHFWLYH'DWHDQG% the Executive’s  VHUYLFHVVKDOOEHSHUIRUPHGDWWKHORFDWLRQZKHUHWKH([HFXWLYHZDVHPSOR\HGLPPHGLDWHO\SUHFHGLQJWKH(IIHFWLYH 'DWHRUDQ\RIILFHRUORFDWLRQOHVVWKDQPLOHVIURPVXFKORFDWLRQ LL'XULQJWKH(PSOR\PHQW3HULRGDQGH[FOXGLQJDQ\SHULRGVRIYDFDWLRQDQGVLFNOHDYHWRZKLFKWKH ([HFXWLYHLVHQWLWOHGWKH([HFXWLYHDJUHHVWRGHYRWHUHDVRQDEOHDWWHQWLRQDQGWLPHGXULQJQRUPDOEXVLQHVVKRXUVWR WKHEXVLQHVVDQGDIIDLUVRIWKH&RPSDQ\DQGWRWKHH[WHQWQHFHVVDU\WRGLVFKDUJHWKHUHVSRQVLELOLWLHVDVVLJQHGWRWKH Executive hereunder, to use the Executive’s reasonable best efforts to perform faithfully and efficiently such  UHVSRQVLELOLWLHV'XULQJWKH(PSOR\PHQW3HULRGLWVKDOOQRWEHDYLRODWLRQRIWKLV$JUHHPHQWIRUWKH([HFXWLYHWR$ VHUYHRQFRUSRUDWHFLYLFRUFKDULWDEOHERDUGVRUFRPPLWWHHV%GHOLYHUOHFWXUHVIXOILOOVSHDNLQJHQJDJHPHQWVRU WHDFKDWHGXFDWLRQDOLQVWLWXWLRQVDQG&PDQDJHSHUVRQDOLQYHVWPHQWVVRORQJDVVXFKDFWLYLWLHVGRQRWVLJQLILFDQWO\ interfere with the performance of the Executive’s responsibilities as an employee of the Company in accordance  ZLWKWKLV$JUHHPHQW,WLVH[SUHVVO\XQGHUVWRRGDQGDJUHHGWKDWWRWKHH[WHQWWKDWDQ\VXFKDFWLYLWLHVKDYHEHHQ FRQGXFWHGE\WKH([HFXWLYHSULRUWRWKH(IIHFWLYH'DWHWKHFRQWLQXHGFRQGXFWRIVXFKDFWLYLWLHVRUWKHFRQGXFWRI DFWLYLWLHVVLPLODULQQDWXUHDQGVFRSHWKHUHWRVXEVHTXHQWWRWKH(IIHFWLYH'DWHVKDOOQRWWKHUHDIWHUEHGHHPHGWR interfere with the performance of the Executive’s responsibilities to the Company.  E&RPSHQVDWLRQ L%DVH6DODU\ 'XULQJWKH(PSOR\PHQW3HULRGWKH([HFXWLYHVKDOOUHFHLYHDQDQQXDOEDVH salary (“Annual Base Salary”), wh LFKVKDOOEHSDLGDWDQDQQXDOUDWHDWOHDVWHTXDOWRWZHOYHWLPHVWKHKLJKHVW PRQWKO\EDVHVDODU\SDLGRUSD\DEOHLQFOXGLQJDQ\EDVHVDODU\ZKLFKKDVEHHQHDUQHGEXWGHIHUUHGWRWKH([HFXWLYH E\WKH&RPSDQ\DQGLWVDIILOLDWHGFRPSDQLHVLQUHVSHFWRIWKHWZHOYHPRQWKSHULRGLPPHGLDWHO\SUHFHGLQJWKH PRQWKLQZKLFKWKH(IIHFWLYH'DWHRFFXUV7KH$QQXDO%DVH6DODU\VKDOOEHSDLGDWVXFKLQWHUYDOVDVWKH&RPSDQ\ SD\VH[HFXWLYHVDODULHVJHQHUDOO\'XULQJWKH(PSOR\PHQW3HULRGWKH$QQXDO%DVH6DODU\VKDOOEHUHYLHZHGQR PRUHWKDQPRQWKVDIWHUWKHODVWVDODU\LQFUHDVHDZDUGHGWRWKH([HFXWLYHSULRUWRWKH(IIHFWLYH'DWHDQGWKHUHDIWHU DWOHDVWDQQXDOO\$Q\LQFUHDVHLQ$QQXDO%DVH6DODU\VKDOOQRWVHUYHWROLPLWRUUHGXFHDQ\RWKHUREOLJDWLRQWRWKH ([HFXWLYHXQGHUWKLV                                                                                                                                                      

 

  $JUHHPHQW$QQXDO%DVH6DODU\VKDOOQRWEHUHGXFHGDIWHUDQ\VXFKLQFUHDVHDQGWKHWHUP$QQXDO%DVH6DODU\DV XWLOL]HGLQWKLV$JUHHPHQWVKDOOUHIHUWR$QQXDO%DVH6DODU\DVVRLQFUHDVHG$VXVHGLQWKLV$JUHHPHQWWKHWHUP “affiliated companies” shall include any company controlled by, controlling or under common control with the  &RPSDQ\ LL$QQXDO%RQXV ,QDGGLWLRQWR$QQXDO%DVH6DODU\WKH([HFXWLYHVKDOOEHDZDUGHGIRUHDFKILVFDO\HDU ending during the Employment Period, an annual bonus (the “Annual Bonus”) in cash at least equal to the  Executive’s average of the bonuses paid or payable under the Company’s Management Incentive Bonus Plan, or any  FRPSDUDEOHDQQXDOERQXVXQGHUDQ\SUHGHFHVVRURUVXFFHVVRUSODQLQUHVSHFWRIWKHODVWWKUHHIXOOILVFDO\HDUVSULRU WRWKH(IIHFWLYH'DWHRULIWKH([HFXWLYHZDVILUVWHPSOR\HGE\WKH&RPSDQ\DIWHUWKHEHJLQQLQJRIWKHHDUOLHVWRI VXFKWKUHHILVFDO\HDUVWKHDYHUDJHRIWKHERQXVHVSDLGRUSD\DEOHXQGHUVXFKSODQVLQUHVSHFWRIWKHILVFDO\HDUV HQGLQJEHIRUHWKH(IIHFWLYH'DWHGXULQJZKLFKWKH([HFXWLYHZDVHPSOR\HGE\WKH&RPSDQ\ZLWKVXFKERQXVEHLQJ DQQXDOL]HGZLWKUHVSHFWWRDQ\VXFKILVFDO\HDULIWKH([HFXWLYHZDVQRWHPSOR\HGE\WKH&RPSDQ\IRUWKHZKROHRI such fiscal year) (the “Recent Average Bonus”). If the Executive has not been eligible to earn such a bonus for any  SHULRGSULRUWR the Effective Date, the “Recent Annual Bonus” shall mean the Executive’s target annual bonus for  WKH\HDULQZKLFKWKH(IIHFWLYH'DWHRFFXUV(DFKVXFK$QQXDO%RQXVVKDOOEHSDLGQRODWHUWKDQWZRDQGDKDOI PRQWKVDIWHUWKHHQGRIWKHILVFDO\HDUIRUZKLFKWKH$QQXDO%RQXVLVDZDUGHGXQOHVVWKH([HFXWLYHVKDOOHOHFWWR GHIHUWKHUHFHLSWRIVXFK$QQXDO%RQXVSXUVXDQWWRDQDUUDQJHPHQWWKDWPHHWVWKHUHTXLUHPHQWVRI6HFWLRQ$RI the Internal Revenue Code of 1986, as amended (the “Code”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uring the Employment Period, the Executive and/or the Executive’s family, as  WKHFDVHPD\EHVKDOOEHHOLJLEOHIRUSDUWLFLSDWLRQLQDQGVKDOOUHFHLYHDOOEHQHILWVXQGHUZHOIDUHEHQHILWSODQV SUDFWLFHVSROLFLHVDQGSURJUDPVSURYLGHGE\WKH&RPSDQ\DQGLWVDIILOLDWHGFRPSDQLHVLQFOXGLQJZLWKRXW OLPLWDWLRQPHGLFDOSUHVFULSWLRQGHQWDOGLVDELOLW\VDODU\FRQWLQXDQFHHPSOR\HHOLIHJURXSOLIHDFFLGHQWDOGHDWK and travel accident insurance plans and programs) (“Company Welfare Benefit Plans”) to the extent applicable  JHQHUDOO\WRRWKHUSHHUH[HFXWLYHVRIWKH&RPSDQ\DQGLWVDIILOLDWHGFRPSDQLHVEXWLIWKH&RPSDQ\:HOIDUH%HQHILW 3ODQVSURYLGHWKH([HFXWLYHZLWKEHQHILWVZKLFKDUHOHVVIDYRUDEOHLQWKHDJJUHJDWHWKDQWKHPRVWIDYRUDEOHRIVXFK SODQVSUDFWLFHVSROLFLHVDQGSURJUDPVLQHIIHFWIRUWKH([HFXWLYHDWDQ\WLPHGXULQJWKHGD\SHULRGLPPHGLDWHO\ SUHFHGLQJWKH                                                                                                                                                      

 

  Effective Date (the “Former Company Welfare Benefit Plans”), the Company shall provide the Executive with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he Executive’s employment shall terminate  DXW omatically upon the Executive’s death during the Employment Period. If the Company determines in good faith  WKDWWKH'LVDELOLW\RIWKH([HFXWLYHKDVRFFXUUHGGXULQJWKH(PSOR\PHQW3HULRGSXUVXDQWWRWKHGHILQLWLRQRI 'LVDELOLW\VHWIRUWKEHORZLWPD\JLYHWRWKH([HFXWLYHZULWWHQQRWLFHLQDFFRUGDQFHZLWK6HFWLRQERIWKLV Agreement of its intention to terminate the Executive’s employment.                                                                                                                                                       

 

  In such event, the Executive’s employment with the Company shall terminate effective on the 30th day after receipt  of such notice by the Executive (the “Disability Effective Date”), SURYLGHG WKDWZLWKLQWKHGD\VDIWHUVXFK UHFHLSWWKH([HFXWLYHVKDOOQRWKDYHUHWXUQHGWRIXOO time performance of the Executive’s duties. For purposes of this  Agreement, “Disability” shall mean the absence of the Executive from the Executive’s duties ZLWKWKH&RPSDQ\RQ DIXOOWLPHEDVLVIRUFRQVHFXWLYHEXVLQHVVGD\VRUIRUEXVLQHVVGD\VLQDQ\FRQVHFXWLYHGD\VDVDUHVXOW RILQFDSDFLW\GXHWRPHQWDORUSK\VLFDOLOOQHVVZKLFKLVGHWHUPLQHGWREHWRWDODQGSHUPDQHQWE\DSK\VLFLDQVHOHFWHG by the Company or its insurers and acceptable to the Executive or the Executive’s legal representative.  E&DXVH . The Company may terminate the Executive’s employment during the Employment Period with or  ZLWKRXW&DXVH)RUSXUSRVHVRIWKLV$J reement, “Cause” shall mean:   (i) the willful and continued failure of the Executive to perform substantially the Executive’s duties with the  &RPSDQ\RURQHRILWVDIILOLDWHVRWKHUWKDQDQ\VXFKIDLOXUHUHVXOWLQJIURPLQFDSDFLW\GXHWRSK\VLFDORUPHQWDO illness or following the Executive’s delivery of a Notice of Termination for Good Reason), after a written demand  IRUVXEVWDQWLDOSHUIRUPDQFHLVGHOLYHUHGWRWKH([HFXWLYHE\WKH%RDUGRUWKH&KLHI([HFXWLYH2IILFHURIWKH &RPSDQ\ZKLFKVSHFLILFDOO\LGHQWLILHVWKHPDQQHULQZKLFKWKH%RDUGRU&KLHI([HFXWLYH2IILFHURIWKH&RPSDQ\ believes that the Executive has not substantially performed the Executive’s duties, or  LLWKHZLOOIXOHQJDJLQJE\WKH([HFXWLYHLQLOOHJDOFRQGXFWRUJURVVPLVFRQGXFWZKLFKLVPDWHULDOO\DQG GHPRQVWUDEO\LQMXULRXVWRWKH&RPSDQ\ For purposes of this provision, no act or failure to act, on the part of the Executive, shall be considered “willful”  XQOHVVLWLVGRQHRURPLWWHGWREHGRQHE\WKH([HFXWLYHLQEDGIDLWKRUZLWKRXWUHDVRQDEOHEHOLHIWKDWWKH Executive’s action or omission was in the best interests of the Company. Any act, or failure to act, based upon  DXWKRULW\JLYHQSXUVXDQWWRDUHVROXWLRQGXO\DGRSWHGE\WKH%RDUGRULIWKH&RPSDQ\LVQRWWKHXOWLPDWHSDUHQW HQWLW\DQGLVQRWSXEOLFO\WUDGHGWKHERDUGRIGLUHFWRUVRUIRUDQRQFRUSRUDWHHQWLW\HTXLYDOHQWJRYHUQLQJERG\RI the ultimate parent of the Company (the “Applicable Board”)or upon the instructions of the Chief Executive Officer  RIWKH&RPSDQ\RUDVHQLRURIILFHURIWKH&RPSDQ\RUEDVHGXSRQWKHDGYLFHRIFRXQVHOIRUWKH&RPSDQ\VKDOOEH FRQFOXVLYHO\SUHVXPHGWREHGRQHRURPLWWHGWREHGRQHE\WKH([HFXWLYHLQJRRGIDLWKDQGLQWKHEHVWLQWHUHVWVRI WKH&RPSDQ\7KHFHVVDWLRQRIHPSOR\PHQWRIWKH([HFXWLYHVKDOOQRWEHGHHPHGWREHIRU&DXVHXQOHVVDQGXQWLO WKHUHVKDOOKDYHEHHQGHOLYHUHGWRWKH([HFXWLYHDFRS\RIDUHVROXWLRQGXO\DGRSWHGE\WKHDIILUPDWLYHYRWHRIQRW OHVVWKDQWKUHHTXDUWHUVRIWKHHQWLUHPHPEHUVKLSRIWKH$SSOLFDEOH%RDUGH[FOXGLQJWKH([HFXWLYHLIWKH([HFXWLYH LVDPHPEHURIWKH$SSOLFDEOH%RDUGDWDPHHWLQJRIWKH$SSOLFDEOH%RDUGFDOOHGDQGKHOGIRUVXFKSXUSRVHDIWHU UHDVRQDEOHQRWLFHLVSURYLGHGWRWKH([HFXWLYHDQGWKH([HFXWLYHLVJLYHQDQRSSRUWXQLW\WRJHWKHUZLWKFRXQVHOIRU WKH([HFXWLYHWREHKHDUGEHIRUHWKH$SSOLFDEOH%RDUGILQGLQJWKDWLQWKHJRRGIDLWK                                                                                                                                                      

 

  RSLQLRQRIWKH$SSOLFDEOH%RDUGWKH([HFXWLYHLVJXLOW\RIWKHFRQGXFWGHVFULEHGLQVXESDUDJUDSKLRULLDERYH DQGVSHFLI\LQJWKHSDUWLFXODUVWKHUHRILQGHWDLO F*RRG5HDVRQ . The Executive’s employment may be terminated by tKH([HFXWLYHIRU*RRG5HDVRQRUE\ the Executive voluntarily without Good Reason. For purposes of this Agreement, “Good Reason” shall mean:  LWKHDVVLJQPHQWWRWKH([HFXWLYHRIDQ\GXWLHV inconsistent in any respect with the Executive’s position  LQFOXGLQJVWDWXVRIILFHVWLWOHVDQGUHSRUWLQJUHTXLUHPHQWVDXWKRULW\GXWLHVRUUHVSRQVLELOLWLHVDVFRQWHPSODWHGE\ 6HFWLRQDRIWKLV$JUHHPHQWRUDQ\RWKHUGLPLQXWLRQLQVXFKSRVLWLRQDXWKRULW\GXWLHVRUUHVSRQVLELOLWLHV (whether or not occurring solely as a result of the Company’s ceasing to be a publicly traded entity), excluding for  WKLVSXUSRVHDQLVRODWHGLQVXEVWDQWLDODQGLQDGYHUWHQWDFWLRQQRWWDNHQLQEDGIDLWKDQGZKLFKLVUHPHGLHGE\WKH &RPSDQ\SURPSWO\DIWHUUHFHLSWRIQRWLFHWKHUHRIJLYHQE\WKH([HFXWLYH LLDQ\IDLOXUHE\WKH&RPSDQ\WRFRPSO\ZLWKDQ\RIWKHSURYLVLRQVRI6HFWLRQERIWKLV$JUHHPHQWRWKHU WKDQDQLVRODWHGLQVXEVWDQWLDODQGLQDGYHUWHQWIDLOXUHQRWRFFXUULQJLQEDGIDLWKDQGZKLFKLVUHPHGLHGE\WKH &RPSDQ\SURPSWO\DIWHUUHFHLSWRIQRWLFHWKHUHRIJLYHQE\WKH([HFXWLYH  (iii) the Company’s requiring the Executive to be based at any office or location other than as provided in  6HFWLRQ 4(a)(i)(B) hereof or the Company’s requiring the Executive to travel on Company business to a substantially  JUHDWHUH[WHQWWKDQUHTXLUHGLPPHGLDWHO\SULRUWRWKH(IIHFWLYH'DWH LYDQ\SXUSRUWHGWHUPLQDWLRQE\WKH&RPSDQ\RIWKH([HFXWLYH ’s employment otherwise than as expressly  SHUPLWWHGE\WKLV$JUHHPHQWRU YDQ\IDLOXUHE\WKH&RPSDQ\WRFRPSO\ZLWKDQGVDWLVI\6HFWLRQFRIWKLV$JUHHPHQW )RUSXUSRVHVRIWKLV6HFWLRQ 5(c), any good faith determination of “Good Reason” made by the Executive shall be  FRQFOXVLYH G,QFDSDFLW\ . The Executive’s mental or physical incapacity following the occurrence of an event described  DERYHLQFODXVHVLWKURXJKY of Section 5(c) shall not affect the Executive’s ability t RWHUPLQDWHHPSOR\PHQWIRU Good Reason and the Executive’s death following delivery of a Notice of Termination for Good Reason shall not  DIIHFWWKHHQWLWOHPHQWRIWKHHVWDWHRIWKH([HFXWLYHWRVHYHUDQFHSD\PHQWVRUEHQHILWVSURYLGHGKHUHXQGHUXSRQD WHUPLQDWLRQRIHPSOR\PHQWIRU*RRG5HDVRQ H1RWLFHRI7HUPLQDWLRQ $Q\WHUPLQDWLRQRIHPSOR\PHQWE\WKH&RPSDQ\IRU&DXVHRUE\WKH([HFXWLYH IRU*RRG5HDVRQVKDOOEHFRPPXQLFDWHGE\1RWLFHRI7HUPLQDWLRQWRWKHRWKHUSDUW\KHUHWRJLYHQLQDFFRUGDQFH with Section 12(b) of this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written  QRWLFHZKLFKLLQGLFDWHVWKHVSHFLILFWHUPLQDWLRQSURYLVLRQLQWKLV$JUHHPHQW                                                                                                                                                      

 

  UHOLHGXSRQLLWRWKHH[WHQWDSSOLFDEOHVHWVIRUWKLQUHDVRQDEOHGHWDLOWKHIDFWVDQGFLUFXPVWDQFHVFODLPHGWR provide a basis for termination of the Executive’ VHPSOR\PHQWXQGHUWKHSURYLVLRQVRLQGLFDWHGDQGLLLLIWKH'DWH RI7HUPLQDWLRQDVGHILQHGEHORZLVRWKHUWKDQWKHGDWHRIUHFHLSWRIVXFKQRWLFHVSHFLILHVWKH'DWHRI7HUPLQDWLRQ ZKLFKGDWHVKDOOEHQRWPRUHWKDQWKLUW\GD\VDIWHUWKHJLYLQJRIVXFKQRWLFH7KHIDLOXUHE\WKH([HFXWLYHRUWKH &RPSDQ\WRVHWIRUWKLQWKH1RWLFHRI7HUPLQDWLRQDQ\IDFWRUFLUFXPVWDQFHZKLFKFRQWULEXWHVWRDVKRZLQJRI*RRG 5HDVRQRU&DXVHVKDOOQRWZDLYHDQ\ULJKWRIWKH([HFXWLYHRUWKH&RPSDQ\UHVSHFWLYHO\KHUHXQGHURUSUHFOXGHWKH Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s or  the Company’s rights hereunder.  I'DWHRI7HUPLQDWLRQ . “Date of Termination” means (i) if the Executive’s empl R\PHQWLVWHUPLQDWHGE\WKH &RPSDQ\IRU&DXVHRUE\WKH([HFXWLYHIRU*RRG5HDVRQWKHGDWHRIUHFHLSWRIWKH1RWLFHRI7HUPLQDWLRQRUDQ\ later date specified therein, as the case may be, (ii) if the Executive’s employment is terminated by the Company  RWKHUWKDQIRU&DXVHRU'LVDELOLW\WKHGDWHRQZKLFKWKH&RPSDQ\QRWLILHVWKH([HFXWLYHRIVXFKWHUPLQDWLRQLLLLI WKH([HFXWLYHUHVLJQVZLWKRXW*RRG5HDVRQWKHGDWHRQZKLFKWKH([HFXWLYHQRWLILHVWKH&RPSDQ\RIVXFK WHUPLQDWLRQDQGLYLIWKH([HFXWL ve’s employment is terminated by reason of death or Disability, the date of death  RIWKH([HFXWLYHRUWKH'LVDELOLW\(IIHFWLYH'DWHDVWKHFDVHPD\EH1RWZLWKVWDQGLQJWKHIRUHJRLQJLQQRHYHQW VKDOOWKH'DWHRI7HUPLQDWLRQRFFXUXQWLOWKH([HFXWLYHH[SH riences a “separation from service” within the meaning  RI6HFWLRQ$RIWKH&RGHDQGQRWZLWKVWDQGLQJDQ\WKLQJFRQWDLQHGKHUHLQWRWKHFRQWUDU\WKHGDWHRQZKLFKVXFK separation from service takes place shall be the “Date of Termination.”  2EOLJDWLRQVRIWKH&RPSDQ\XSRQ7HUPLQDWLRQ D*RRG5HDVRQ2WKHU7KDQIRU&DXVH'HDWKRU 'LVDELOLW\ . If, during the Employment Period, the Company shall terminate the Executive’s employment other than  IRU&DXVH'HDWKRU'LVDELOLW\RUWKH([HFXWLYHVKDOOWHUPLQDWHHPSOR\PHQWIRU*RRG5HDVRQ LWKH&RPSDQ\VKDOOSD\WRWKH([HFXWLYHLQDOXPSVXPLQFDVKZLWKLQGD\VDIWHUWKH'DWHRI7HUPLQDWLRQ WKHDJJUHJDWHRIWKHIROORZLQJDPRXQWV $WKHVXPRI the Executive’s Annual B DVH6DODU\WKURXJKWKH'DWHRI7HUPLQDWLRQWRWKHH[WHQWQRW WKHUHWRIRUHSDLG the Executive’s business expenses that are reimbursable pursuant to Section EYEXWKDYH QRWEHHQUHLPEXUVHGE\WKH&RPSDQ\DVRIWKH'DWHRI7HUPLQDWLRQWKH([HFXW ive’s Annual Bonus for the fiscal  \HDULPPHGLDWHO\SUHFHGLQJWKHILVFDO\HDULQZKLFKWKH'DWHRI7HUPLQDWLRQRFFXUVLIVXFKERQXVKDVEHHQ GHWHUPLQHGEXWQRWSDLGDVRIWKH'DWHRI7HUPLQDWLRQDQ\DFFUXHGYDFDWLRQSD\WRWKHH[WHQWQRWWKHUHWRIRUH SDLGWKHVXPRIWKHDPRXQWVGHVFULEHGLQVXEFODXVHV and (4), the “Accrued Obligations”) and (5) DQ DPRXQWHTXDOWRWKHSURGXFWRI[WKH5HFHQW$YHUDJH%RQXVDQG\DIUDFWLRQWKHQXPHUDWRURIZKLFKLVWKH QXPEHURIGD\VLQWKHFXUUHQWILVFDO\HDUWKURXJKWKH'DWHRI7HUPLQDWLRQDQGWKHGHQRPLQDWRURIZKLFKLVWKH “Pro Rata Bonus”); SURYLGHG WKDWQRWZLWKVWDQGLQJWKHIRUHJRLQJLIWKH([HFXWLYHKDVPDGHDQLUUHYRFDEOHHOHFWLRQ XQGHUDQ\GHIHUUHGFRPSHQVDWLRQDUUDQJHPHQWVXEMHFWWR6HFWLRQ$RIWKH&RGHWRGHIHUDQ\SRUWLRQRIWKH $QQXDO%DVH6DODU\RUWKH$QQXDO%RQXVGHVFULEHGLQFODXVHVRUDERYH                                                                                                                                                      

 

  WKHQIRUDOOSXUSRVHVRIWKLV6HFWLRQLQFOXGLQJZLWKRXWOLPLWDWLRQ6HFWLRQVEWKURXJKGVXFKGHIHUUDO HOHFWLRQDQGWKHWHUPVRIWKHDSSOLFDEOHDUUDQJHPHQWVKDOODSSO\WRWKHVDPHSRUWLRQRIWKHDPRXQWGHVFULEHGLQVXFK FODXVH or clause (3), and such portion shall not be considered as part of the “Accrued Obligations” but shall  instead be an “Other Benefit” (as defined below); and  %WKHDPRXQWHTXDOWRWKHSURGXFWRI>WZRWKUHH@DQGWKHVXPRI (x) the Executive’s Annual Base  6DODU\DQG\WKH5HFHQW$YHUDJH%RQXVDQG &DQDPRXQWHTXDOWRWKHSURGXFWRI>WZRWKUHH@DQGWKHVXPRIDWKH&RPSDQ\5HWLUHPHQW &RQWULEXWLRQVDVGHILQHGLQWKH%RUJ:DUQHU,QF5HWLUHPHQW6D vings Plan (“RSP”)) that would have been made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b)(ii) of this Agreement (“Limitations” meaning limitations contained in the RSP, the Em SOR\HH Retirement Income Security Act (“ERISA”) or the Code (including without limitation the $150,000 cap on  &RPSHQVDWLRQ  (ii) for two years following the Date of Termination (the “Benefits Period”), the Company shall provide the  ([HFXWLYH and his eligible dependents with medical and dental insurance coverage (the “Health Care Benefits”) and  OLIHLQVXUDQFHEHQHILWVQROHVVIDYRUDEOHWRWKRVHZKLFKWKH([HFXWLYHDQGKLVVSRXVHDQGHOLJLEOHGHSHQGHQWVZHUH UHFHLYLQJLPPHGLDWHO\SULRUWRWKH'DWHRI7HUPLQDWLRQRULIPRUHIDYRUDEOHWRVXFKSHUVRQVDVLQHIIHFWJHQHUDOO\ DWDQ\WLPHWKHUHDIWHUZLWKUHVSHFWWRRWKHUSHHUH[HFXWLYHVRIWKH&RPSDQ\DQGWKH$IILOLDWHG&RPSDQLHVSURYLGHG  KRZHYHU WKDWWKH+HDOWK&DUH%HQHILWVVKDOOEHSURYLGHGGXULQJWKH%HQHILWV3HULRGLQVXFKDPDQQHUWKDWVXFK benefits are excluded from the Executive’s income for federal income tax purposes; SURYLGHG IXUWKHU KRZHYHU WKDW LIWKH([HFXWLYHEHFRPHVUHHPSOR\HGZLWKDQRWKHUHPSOR\HUDQGLVHOLJLEOHWRUHFHLYHKHDOWKFDUHEHQHILWVXQGHU DQRWKHUHPSOR\HUSURYLGHGSODQWKHKHDOWKFDUHEHQHILWVSURYLGHGKHUHXQGHUVKDOOEHVHFRQGDU\WRWKRVHSURYLGHG XQGHUVXFKRWKHUSODQGXULQJVXFKDSSOLFDEOHSHULRGRIHOLJLELOLW\7KHUHFHLSWRIWKH+HDOWK&DUH%HQHILWVVKDOOEH FRQGLWLRQHGXSRQWKH([HFXWLYHFRQWLQXLQJWRSD\WKH$SSOLFDEOH&REUD3UHPLXPZLWKUHVSHFWWRWKHOHYHORI coverage that the Executive has elected for the Executive and the Executive’s spouse and eligible dependents ( e.g.  VLQJOHVLQJOHSOXVRQHRUIDPLO\'XULQJWKHSRUWLRQRIWKH%HQHILWV3HULRGLQZKLFKWKH([HFXWLYHDQGKLVHOLJLEOH GHSHQGHQWVFRQWLQXHWRUHFHLYHFRYHUDJHXQGHUWKH                                                                                                                                                      

 

  Company’s Health Care Benefits plans, the Company shall pay to the Executive a monthly amount equal to the  $SSOLFDEOH&2%5$3UHPLXPLQUHVSHFWRIWKHPD[LPXPOHYHORIFRYHUDJHWKDWWKH([HFXWLYHFRXOGKDYHHOHFWHGWR receive for the Executive and the Executive’s spouse and eligible dependents if the Executive were still an employee  RIWKH&RPSDQ\GXULQJWKH%HQHILWV3HULRG e.g. VLQJOHVLQJOHSOXVRQHRUIDPLO\UHJDUGOHVVRIZKDWOHYHORI FRYHUDJHLVDFWXDOO\HOHFWHGZKLFKSD\PHQWVKDOOEHSDLGLQDGYDQFHRQWKHILUVWSD\UROOGD\RIHDFKPRQWK commencing with the month immediately following the Executive’s Date of Termination. The Company shall use  LWVUHDVRQDEOHEHVWHIIRUWVWRHQVXUHWKDWIROORZLQJWKHHQGRI the Benefit Period, the Executive and the Executive’s  VSRXVHDQGHOLJLEOHGHSHQGHQWVVKDOOEHHOLJLEOHWRHOHFWFRQWLQXHGKHDOWKFRYHUDJHSXUVXDQWWR6HFWLRQ%RIWKH Code or other applicable law (“COBRA Coverage”), as if the Executive’s employment wi WKWKH&RPSDQ\KDG WHUPLQDWHGDVRIWKHHQGRIVXFKSHULRG)RUSXUSRVHVRIGHWHUPLQLQJHOLJLELOLW\EXWQRWWKHWLPHRIFRPPHQFHPHQW of benefits) of the Executive for retiree welfare benefits pursuant to the Company’s retiree welfare benefit plans, if  DQ\WKH([HFXWLYHVKDOOEHFRQVLGHUHGWRKDYHUHPDLQHGHPSOR\HGXQWLOWKHHQGRIWKH%HQHILW3HULRGDQGWRKDYH retired on the last day of such period. For purposes of this Provision, “Applicable COBRA Premium” means the  PRQWKO\SUHPLXPLQHIIHFWIURPWLPHWRWLPHIRUFRYHUDJHSURYLGHGWRIRUPHUHPSOR\HHVXQGHU6HFWLRQ%RI WKH&RGHDQGWKHUHJXODWLRQVWKHUHXQGHUZLWKUHVSHFWWRDSDUWLFXODUOHYHORIFRYHUDJH e.g. VLQJOHVLQJOHSOXVRQHRU IDPLO\ LLLWKH&RPSDQ\VKDOODWLWVVROHH[SHQVHDVLQFXUUHGSURYLGHWKH([HFXWLYHZLWKRXWSODFHPHQWVHUYLFHVWKH scope and provider of which shall be selected by the Executive in the Executive’s sole discretion, but the cost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referred to as the “Other Benefits”) in accordance with the terms of the underlying plans or agreements.  1RWZLWKVWDQGLQJWKHIRUHJRLQJSURYLVLRQVRI6HFWLRQDLDQG6HFWLRQDLLLQWKHHYHQWWKDWWKH([HFXWLYHLVD “specified employee” within the meaning of Section $RIWKH&RGHDVGHWHUPLQHGLQDFFRUGDQFHZLWKWKH PHWKRGRORJ\HVWDEOLVKHGE\WKH&RPSDQ\DVLQH ffect on the Date of Termination) (a “Specified Employee”),  amounts that constitute “nonqualified deferred compensation” within the meaning of Section $RIWKH&RGHWKDW ZRXOGRWKHUZLVHEHSD\DEOHDQGEHQHILWVWKDWZRXOGRWKHUZLVHEHSURYLGHGXQGHU6HFWLRQDLRU6HFWLRQDLL GXULQJWKHVL[PRQWKSHULRGLPPHGLDWHO\IROORZLQJWKH'DWHRI7HUPLQDWLRQRWKHUWKDQWKH$FFUXHG2EOLJDWLRQV VKDOOLQVWHDGEHSDLGZLWKLQWHUHVWRQDQ\GHOD\HGSD\PHQWDWWKHDSSOLFDEOHIHGHUDOUDWHSURYLGHGIRULQ 6HFWLRQ 7872(f)(2)(A) of the Code (“Interest”) determined as of the Date of Termination,                                                                                                                                                      

 

  RUSURYLGHGRQWKHILU st business day after the date that is six months following the Executive’s Date of Termination  (the “Delayed Payment Date”);  E'HDWK . If the Executive’s employment is terminated by reason of the Executive’s death during the  (PSOR\PHQW3HULRG the Company shall provide the Executive’s estate or beneficiaries with the Accrued Obligations  DQGWKH3UR5DWD%RQXVDQGWKHWLPHO\SD\PHQWRUGHOLYHU\RIWKH2WKHU%HQHILWVDQGVKDOOKDYHQRRWKHUVHYHUDQFH REOLJDWLRQVXQGHUWKLV$JUHHPHQW7KH$FFUXHG2EOLJDWLRQVVXEMHFWWRWKHSURYLVRVHWIRUWKLQ6HFWLRQD$WR the extent applicable) and the Pro Rata Bonus shall be paid to the Executive’s estate or beneficiary, as applicable, in  DOXPSVXPLQFDVKZLWKLQGD\VRIWKH'DWHRI7HUPLQDWLRQ:LWKUHVSHFWWRWKHSURYLVLRQRIWKH2WKHU%HQHILWV the term “Other Benefits” as utilized in this Section 6(b) shall include, without limitation, and the Executive’s estate  DQGRUEHQHILFLDULHVVKDOOEHHQWLWOHGWRUHFHLYHEHQHILWVHLWKHUSXUVXDQWWRDSODQSURJUDPSUDFWLFHRUSROLF\RUDQ LQGLYLGXDODUUDQJHPHQWDWOHDVWHTXDOWRWKHPRVWIDYRUDEOHEHQHILWVSURYLGHGE\WKH&RPSDQ\DQGWKHDIILOLDWHG FRPSDQLHVWRWKHHVWDWHVDQGEHQHILFLDULHVRISHHUH[HFXWLYHVRIWKH&RPSDQ\DQGVXFKDIILOLDWHGFRPSDQLHVXQGHU VXFKSODQVSURJUDPVSUDFWLFHVDQGSROLFLHVUHODWLQJWRGHDWKEHQHILWVLIDQ\DVLQHIIHFWZLWKUHVSHFWWRRWKHUSHHU H[HFXWLYHVDQGWKHLUEHQHILFLDULHVDWDQ\WLPHGXULQJWKHGD\SHULRGLPPHGLDWHO\SUHFHGLQJWKH(IIHFWLYH'DWH RULIPRUHI avorable to the Executive’s estate and/or the Executive’s beneficiaries, as in effect on the date of the  Executive’s death with respect to other peer executives of the Company and its affiliated companies and their  EHQHILFLDULHV F'LVDELOLW\  If the Executive’s employment is terminated by reason of the Executive’s Disability during the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ayment Date. With respect to the provision of the Other Benefits, the term “Other Benefits” as utilized in this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favorable to the Executive and/or the Executive’s  IDPLO\DVLQHIIHFWDWDQ\WLPHWKHUHDIWHUJHQHUDOO\ZLWKUHVSHFWWRRWKHUSHHUH[HFXWLYHVRIWKH&RPSDQ\DQGWKH DIILOLDWHGFRPSDQLHVDQGWKHLUIDPLOLHV G&DXVH2WKHUWKDQIRU*RRG5HDVRQ  If the Executive’s employment is terminated for Cause during the  Employment Period, the Company shall provide the Executive with the Executive’s Annual Base Salary (subject to  WKHSURYLVRVHWIRUWKLQ6HFWLRQD$WRWKHH[WHQWDSSOLFDEOHWKURXJKWKH'DWHRI7HUPLQDWLRQDQGWKHWLPHO\ SD\PHQWRUGHOLYHU\RIWKH2WKHU%HQHILWVDQGVKDOOKDYHQRRWKHU                                                                                                                                                     

 

  VHYHUDQFHREOLJDWLRQVXQGHUWKLV$JUHHPHQW,IWKH([HFXWLYHYROXQWDULO\WHUPLQDWHVHPSOR\PHQWGXULQJWKH (PSOR\PHQW3HULRGH[FOXGLQJDWHUPLQDWLRQIRU*RRG5HDVRQWKH&RPSDQ\VKDOOSURYLGHWRWKH([HFXWLYHWKH $FFUXHG2EOLJDWLRQVDQGWKH3UR5DWD%RQXVDQGWKHWLPHO\SD\PHQWRUGHOLYHU\RIWKH2WKHU%HQHILWVDQGVKDOO KDYHQRRWKHUVHYHUDQFHREOLJDWLRQVXQGHUWKLV$JUHHPHQW,QVXFKFDVHDOOWKH$FFUXHG2EOLJDWLRQVVXEMHFWWRWKH SURYLVRVHWIRUWKLQ6HFWLRQD$WRWKHH[WHQWDSSOLFDEOHDQGWKH3UR5DWD%RQXVVKDOOEHSDLGWRWKH ([HFXWLYHLQDOXPSVXPLQFDVKZLWKLQGD\VRIWKH'DWHRI7HUPLQDWLRQSURYLGHG WKDWLQWKHHYHQWWKDWWKH ([HFXWLYHLVD6SHFLILHG(PSOR\HHWKH3UR5DWD%RQXVVKDOOEHSDLGZLWK,QWHUHVWWRWKH([HFXWLYHRQWKH'HOD\HG 3D\PHQW'DWH 1RQH[FOXVLYLW\RI5LJKWV . Nothing in this Agreement shall prevent or limit the Executive’s continuing or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limiting the generality of the foregoing, the Executive’s resignation under this Agreement w LWKRUZLWKRXW*RRG Reason, shall in no way affect the Executive’s ability to terminate employment by reason of the Executive’s  “retirement” under any compensation and benefits plans, programs or arrangements of the affiliated companies,  LQFOXGLQJZLWKRXWOLPLWDWLRQDQ\UHWLUHPHQWRUSHQVLRQSODQVRUDUUDQJHPHQWVRUWREHHOLJLEOHWRUHFHLYHEHQHILWV XQGHUDQ\FRPSHQVDWLRQRUEHQHILWSODQVSURJUDPVRUDUUDQJHPHQWVRIWKH&RPSDQ\RUDQ\RILWVDIILOLDWHG FRPSDQLHVLQFOXGLQJZLWKRXWOLPLWDWLRQDQ\UHWLUHPHQWRUSHQVLRQSODQRUDUUDQJHPHQWRIWKH&RPSDQ\RUDQ\RILWV DIILOLDWHGFRPSDQLHVRUVXEVWLWXWHSODQVDGRSWHGE\WKH&RPSDQ\RULWVVXFFHVVRUVDQGDQ\WHUPLQDWLRQZKLFK otherwise qualifies as Good Reason shall be treated as such even if it is also a “retirement” for purposes of any such  SODQ1RWZLWKVWDQGLQJWKHIRUHJRLQJLIWKH([HFXWLYHUHFHLYHVSD\PHQWVDQGEHQHILWVSXUVXDQWWR6HFWLRQDRIWKLV $JUHHPHQWWKH([HFXWLYHVKDOOQRWEHHQWLWOHGWRDQ\VHYHUDQFHSD\RUEHQHILWVXQGHUDQ\VHYHUDQFHSODQSURJUDP RUSROLF\RIWKH&RPSDQ\DQGWKHDIILOLDWHGFRPSDQLHVXQOHVVRWKHUZLVHVSHFLILFDOO\SURYLGHGWKHUHLQLQDVSHFLILF UHIHUHQFHWRWKLV$JUHHPHQW )XOO6HWWOHPHQW/HJDO)HHV . The Company’s obligation to make the payments provided for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days following the Company’s receipt of an invoice  from the Executive), at any time from the Effective Date through the Executive’s remai QLQJOLIHWLPHRULIORQJHU WKURXJKWKHWKDQQLYHUVDU\RIWKH(IIHFWLYH'DWHWRWKHIXOOH[WHQWSHUPLWWHGE\ODZDOOOHJDOIHHVDQGH[SHQVHV ZKLFKWKH([HFXWLYHPD\UHDVRQDEO\LQFXUDVDUHVXOWRIDQ\FRQWHVWUHJDUGOHVVRIWKH                                                                                                                                                     

 

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xecutive’s estate shall have submitted an invoice for such fees and expenses at least 10 GD\VEHIRUHWKHHQGRIWKH FDOHQGDU\HDUQH[WIROORZLQJWKHFDOHQGDU\HDULQZKLFKVXFKIHHVDQGH[SHQVHVZHUHLQFXUUHG7KHDPRXQWRIVXFK OHJDOIHHVDQGH[SHQVHVWKDWWKH&RPSDQ\LVREOLJDWHGWRSD\LQDQ\JLYHQFDOHQGDU\HDUVKDOOQRWDIIHFWWKHOHJDO fees and expenses that the Company is obligated to pay in any other calendar year, and the Executive’s r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a “Payment”) would be subject to the excise tax imposed by Section RIWKH&RGHRUDQ\LQWHUHVW RUSHQDOWLHVDUHLQFXUUHGE\WKH([HFXWLYHZLWKUHVSHFWWRVXFKH[FLVHWD[VXFKH[FLVHWD[WRJHWKHUZLWKDQ\VXFK interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Executive shall be  HQWLWOHGWRUHFHLYHDQDGGLWLRQDOSD\ ment (a “Gross Up Payment”) in an amount such that after payment by the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such other certified public accounting firm as may be designated by the Executive (the “Accounting Firm”), which  VKDOOSURYLGHGHWDLOHGVXSSRUWLQJFDOFXODWLRQVERWKWRWKH&RPSDQ\DQGWKH([HFXWLYHZLWKLQEXVLQHVVGD\VRIWKH UHFHLSWRIQRWLFHIURPWKH([HFXWLYHWKDWWKHUHKDVEHHQD3D\PHQWRUVXFKHDUOLHUWLPHDVLVUHTXHVWHGE\WKH &RPSDQ\,QWKHHYHQWWKDWWKH$FFRXQWLQJ)LUPLVVHUYLQJDVDFFRXQWDQWRUDXGLWRUIRUWKHLQGLYLGXDOHQWLW\RU JURXSHIIHFWLQJWKH&KDQJHRI&RQWUROWKH([HFXWLYHPD\DSSRLQWDQRWKHUQDWLRQDOO\UHFRJQL]HGDFFRXQWLQJILUPWR PDNHWKHGHWHUPLQDWLRQVUHTXLUHGKHUHXQGHUZKLFKDFFRXQWLQJILUPVKDOOWKHQEHUHIHUUHGWRDVWKH$FFRXQWLQJ)LUP KHUHXQGHU$OOIHHVDQGH[SHQVHVRIWKH$FFRXQWLQJ)LUPVKDOOEHERUQHVROHO\E\                                                                                                                                                     

 

  WKH&RPSDQ\$Q\GHWHUPLQDWLRQE\WKH$FFRXQWLQJ)LUPVKDOOEHELQGLQJXSRQWKH&RPSDQ\DQGWKH([HFXWLYH$V DUHVXOWRIWKHXQFHUWDLQW\LQWKHDSSOLFDWLRQRI6HFWLRQRIWKH&RGHDWWKHWLPHRIWKHLQLWLDOGHWHUPLQDWLRQE\ WKH$FFRXQWLQJ)LUPKHUHXQGHULWLVSRVVLEOHWKDW*URVV8S3D\PHQWVZKLFKZLOOQRWKDYHEHHQPDGHE\WKH Company should have been made (“Underpayment”), consistent with the calculations required to be made  KHUHXQGHU,QWKHHYHQWWKDWWKH&RPSDQ\H[KDXVWVLWVUHPHGLHVSXUVXDQWWR6HFWLRQFDQGWKH([HFXWLYHWKHUHDIWHU LVUHTXLUHGWRPDNHDSD\PHQWRIDQ\([FLVH7D[WKH$FFRXQWLQJ)LUPVKDOOGHWHUPLQHWKHDPRXQWRIWKH 8QGHUSD\PHQWWKDWKDVRFFXUUHGDQGDQ\VXFK8QGHUSD\PHQWVKDOOEHSURPSWO\SDLGE\WKH&RPSDQ\WRRUIRUWKH EHQHILWRIWKH([HFXWLYH F7KH([HFXWLYHVKDOOQRWLI\WKH&RPSDQ\LQZULWLQJRIDQ\FODLPE\WKH,QWHUQDO5HYHQXH6HUYLFHWKDWLI VXFFHVVIXOZRXOGUHTXLUHWKHSD\PHQWE\WKH&RPSDQ\RIWKH*URVV8S3D\PHQW6XFKQRWLILFDWLRQVKDOOEHJLYHQ DVVRRQDVSUDFWLFDEOHEXWQRODWHUWKDQWHQEXVLQHVVGD\VDIWHUWKH([HFXWLYHLVLQIRUPHGLQZULWLQJRIVXFKFODLPDQG VKDOODSSULVHWKH&RPSDQ\RIWKHQDWXUHRIVXFKFODLPDQGWKHGDWHRQZKLFKVXFKFODLPLVUHTXHVWHGWREHSDLG7KH ([HFXWLYHVKDOOQRWSD\VXFKFODLPSULRUWRWKHH[SLUDWLRQRIWKHGD\SHULRGIROORZLQJWKHGDWHRQZKLFKWKH ([HFXWLYHJLYHVVXFKQRWLFHWRWKH&RPSDQ\RUVXFKVKRUWHUSHULRGHQGLQJRQWKHGDWHWKDWDQ\SD\PHQWRIWD[HV ZLWKUHVSHFWWRVXFKFODLPLVGXH,IWKH&RPSDQ\QRWLILHVWKH([HFXWLYHLQZULWLQJSULRUWRWKHH[SLUDWLRQRIVXFK SHULRGWKDWLWGHVLUHVWRFRQWHVWVXFKFODLPWKH([HFXWLYHVKDOO LJLYHWKH&RPSDQ\DQ\LQIRUPDWLRQUHDVRQDEO\UHTXHVWHGE\WKH&RPSDQ\UHODWLQJWRVXFKFODLP LLWDNHVXFKDFWLRQLQFRQQHFWLRQZLWKFRQWHVWLQJVXFKFODLPDVWKH&RPSDQ\VKDOOUHDVRQDEO\UHTXHVWLQ ZULWLQJIURPWLPHWRWLPHLQFOXGLQJZLWKRXWOLPLWDWLRQDFFHSWLQJOHJDOUHSUHVHQWDWLRQZLWKUHVSHFWWRVXFKFODLPE\ DQDWWRUQH\UHDVRQDEO\VHOHFWHGE\WKH&RPSDQ\ LLLFRRSHUDWHZLWKWKH&RPSDQ\LQJRRGIDLWKLQRUGHUHIIHFWLYHO\WRFRQWHVWVXFKFODLPDQG LYSHUPLWWKH&RPSDQ\WRSDUWLFLSDWHLQDQ\SURFHHGLQJVUHODWLQJWRVXFKFODLP SURYLGHG KRZHYHU WKDWWKH&RPSDQ\VKDOOEHDUDQGSD\GLUHFWO\DOOFRVWVDQGH[SHQVHVLQFOXGLQJDGGLWLRQDOLQWHUHVW DQGSHQDOWLHVLQFXUUHGLQFRQQHFWLRQZLWKVXFKFRQWHVWDQGVKDOOLQGHPQLI\DQGKROGWKH([HFXWLYHKDUPOHVVRQDQ DIWHUWD[EDVLVIRUDQ\([FLVH7D[RULQFRPHWD[LQFOXGLQJLQWHUHVWDQGSHQDOWLHVZLWKUHVSHFWWKHUHWRLPSRVHGDVD UHVXOWRIVXFKUHSUHVHQWDWLRQDQGSD\PHQWRIFRVWVDQGH[SHQVHV:LWKRXWOLPLWDWLRQRQWKHIRUHJRLQJSURYLVLRQVRI WKLV6HFWLRQFWKH&RPSDQ\VKDOOFRQWURODOOSURFHHGLQJVWDNHQLQFRQQHFWLRQZLWKVXFKFRQWHVWDQGDWLWVVROH RSWLRQPD\SXUVXHRUIRUJRDQ\DQGDOODGPLQLVWUDWLYHDSSHDOVSURFHHGLQJVKHDULQJVDQGFRQIHUHQFHVZLWKWKH WD[LQJDXWKRULW\LQUHVSHFWRIVXFKFODLPDQGPD\DWLWVVROHRSWLRQHLWKHUSD\WKHWD[FODLPHGWRWKHDSSURSULDWH WD[LQJDXWKRULW\RQEHKDOIRIWKH([HFXWLYHDQGGLUHFWWKH([HFXWLYHWRVXHIRUDUHIXQGRUFRQWHVWWKHFODLPLQDQ\ SHUPLVVLEOHPDQQHUDQGWKH([HFXWLYHDJUHHVWRSURVHFXWHVXFKFRQWHVWWRDGHWHUPLQDWLRQEHIRUHDQ\DGPLQLVWUDWLYH WULEXQDOLQDFRXUWRILQLWLDOMXULVGLFWLRQDQGLQRQHRUPRUHDSSHOODWHFRXUWVDVWKH&RPSDQ\VKDOOGHWHUPLQH SURYLGHG KRZHYHU WKDWLIWKH&RPSDQ\SD\VVXFKFODLPDQGGLUHFWVWKH                                                                                                                                                     

 

  ([HFXWLYHWRVXHIRUDUHIXQGWKH&RPSDQ\VKDOOLQGHPQLI\DQGKROGWKH([HFXWLYHKDUPOHVVRQDQDIWHUWD[EDVLV IURPDQ\([FLVH7D[RULQFRPHWD[LQFOXGLQJLQWHUHVWRUSHQDOWLHVZLWKUHVSHFWWKHUHWRLPSRVHGZLWKUHVSHFWWR VXFKSD\PHQWRUZLWKUHVSHFWWRDQ\LPSXWHGLQFRPHZLWKUHVSHFWWRVXFKSD\PHQWDQGIXUWKHUSURYLGHGWKDWDQ\ H[WHQVLRQRIWKHVWDWXWHRIOLPLWDWLRQVUHODWLQJWRSD\PHQWRIWD[HVIRUWKHWD[DEOH\HDURIWKH([HFXWLYHZLWKUHVSHFW WRZKLFKVXFKFRQWHVWHGDPRXQWLVFODLPHGWREHGXHLVOLPLWHGVROHO\WRVXFKFRQWHVWHGDPRXQW)XUWKHUPRUHWKH Company’s control of the contest shall be limited to issues with respect to which a Gross 8S3D\PHQWZRXOGEH SD\DEOHKHUHXQGHUDQGWKH([HFXWLYHVKDOOEHHQWLWOHGWRVHWWOHRUFRQWHVWDVWKHFDVHPD\EHDQ\RWKHULVVXHUDLVHG E\WKH,QWHUQDO5HYHQXH6HUYLFHRUDQ\RWKHUWD[LQJDXWKRULW\ G,IDIWHUWKHUHFHLSWE\WKH([HFXWLYHRID*URVV8S3D\PHQWRUSD\PHQWE\WKH&RPSDQ\RIDQDPRXQWRQ the Executive’s behalf pursuant to Section FWKH([HFXWLYHEHFRPHVHQWLWOHGWRUHFHLYHDQ\UHIXQGZLWKUHVSHFWWR WKH([FLVH7D[WRZKLFKVXFK*URVV8S3D\PHQWUHODWHVRUZLWKUHVSHFWWRVXFKFODLPWKH([HFXWLYHVKDOOVXEMHFW to the Company’s complying with the requirements of Section FSURPSWO\SD\WRWKH&RPSDQ\WKHDPRXQWRI VXFKUHIXQGWRJHWKHUZLWKDQ\LQWHUHVWSDLGRUFUHGLWHGWKHUHRQDIWHUWD[HVDSSOLFDEOHWKHUHWR,IDIWHUSD\PHQWE\ WKH&RPSDQ\RIDQDPRXQ t on the Executive’s behalf pursuant to Section FDGHWHUPLQDWLRQLVPDGHWKDWWKH ([HFXWLYHVKDOOQRWEHHQWLWOHGWRDQ\UHIXQGZLWKUHVSHFWWRVXFKFODLPDQGWKH&RPSDQ\GRHVQRWQRWLI\WKH ([HFXWLYHLQZULWLQJRILWVLQWHQWWRFRQWHVWVXFKGHQLDORIUHIXQGSULRUWRWKHH[SLUDWLRQRIGD\VDIWHUVXFK GHWHUPLQDWLRQWKHQWKHDPRXQWRIVXFKSD\PHQWVKDOORIIVHWWRWKHH[WHQWWKHUHRIWKHDPRXQWRI*URVV8S3D\PHQW UHTXLUHGWREHSDLG H$Q\*URVV8S3D\PHQWDVGHWHUPLQHGSXUVXDQWWRWKLV6HFWLRQVKDOOEHSDLGE\WKH&RPSDQ\WRWKH Executive within five days of the receipt of the Accounting Firm’s determination; SURYLGHG WKDWWKH*URVV8S Payment shall in all events be paid no later than the end of the Executive’s taxable year next fo OORZLQJWKH Executive’s taxable year in which the Excise Tax (and any income or other related taxes or interest or penalties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and their respective businesses, which shall have been obtained by the Executive during the Executive’s  HPSOR\PHQWE\WKH&RPSDQ\RUDQ\RILWVDIILOLDWHGFRPSDQLHVDQGZKLFKVKDOOQRWEHRUEHFRPHSXEOLFNQRZOHGJH RWKHUWKDQE\DFWVE\WKH([HFXWLYHRUUHSUHVHQWDWLYHVRIWKH([HFXWLYHLQYLRODWLRQRIWKLV$JUHHPHQW$IWHU termination of the Executive’s employment with the Company, the Executive shall not, without the prior written  FRQVHQWRIWKH&RPSDQ\RUDVPD\RWKHUZLVHEHUHTXLUHGE\ODZRUOHJDOSURFHVVFRPPXQLFDWHRUGLYXOJHDQ\VXFK LQIRUPDWLRQNQRZOHGJHRUGDWDWRDQ\RQHRWKHUWKDQWKH&RPSDQ\DQGWKRVHSHUVRQVGHVLJQDWHGE\LW,QQRHYHQW VKDOODQDVVHUWHGYLRODWLRQRIWKH                                                                                                                                                     

 

  SURYLVLRQVRIWKLV6HFWLRQFRQVWLWXWHDEDVLVIRUGHIHUULQJRUZLWKKROGLQJDQ\DPRXQWVRWKHUZLVHSD\DEOHWRWKH ([HFXWLYHXQGHUWKLV$JUHHPHQWEXWWKH&RPSDQ\RWKHUZLVHVKDOOEHHQWLWOHGWRDOORWKHUUHPHGLHVWKDWPD\EH DYDLODEOHWRLWDWODZRUHTXLW\ 6XFFHVVRUV D7KLV$JUHHPHQWLVSHUVRQDOWRWKH([HFXWLYHDQGZLWKRXWWKHSULRUZULWWHQFRQVHQWRIWKH &RPSDQ\VKDOOQRWEHDVVLJQDEOHE\WKH([HFXWLYHRWKHUWKDQE\ZLOORUWKHODZVRIGHVFHQWDQGGLVWULEXWLRQ7KLV Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representatives.  E7KLV$JUHHPHQWVKDOOLQXUHWRWKHEHQHILWRIDQGEHELQGLQJXSRQWKH&RPSDQ\DQGLWVVXFFHVVRUVDQG DVVLJQV([FHSWDVSURYLGHGLQ6HFWLRQFZLWKRXWWKHSULRUZULWWHQFRQVHQWRIWKH([HFXWLYHWKLV$JUHHPHQWVKDOO QRWEHDVVLJQDEOHE\WKH&RPSDQ\ F7KH&RPSDQ\ZLOOUHTXLUHDQ\VXFFHVVRUZKHWKHUGLUHFWRULQGLUHFWE\SXUFKDVHPHUJHUFRQVROLGDWLRQRU RWKHUZLVHWRDOORUVXEVWDQWLDOO\DOORIWKHEXVLQHVVDQGRUDVVHWVRIWKH&RPSDQ\WRDVVXPHH[SUHVVO\DQGDJUHHWR SHUIRUPWKLV$JUHHPHQWLQWKHVDPHPDQQHUDQGWRWKHVDPHH[WHQWWKDWWKH&RPSDQ\ZRXOGEHUHTXLUHGWRSHUIRUP it if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company as  KHUHLQEHIRUHGHILQHGDQGDQ\VXFFHVVRUWRLWVEXVLQHVVDQGRUDVVHWVDVDIRUHVDLGZKLFKDVVXPHVDQGDJUHHVWR SHUIRUPWKLV$JUHHPHQWE\RSHUDWLRQRIODZRURWKHUZLVH 0LVFHOODQHRXV D7KLV$JUHHPHQWVKDOOEHJRYHUQHGE\DQGFRQVWUXHGLQDFFRUGDQFHZLWKWKHODZVRIWKH 6WDWHRI0LFKLJDQZLWKRXWUHIHUHQFHWRSULQFLSOHVRIFRQIOLFWRIODZV7KHFDSWLRQVRIWKLV$JUHHPHQWDUHQRWSDUWRI WKHSURYLVLRQVKHUHRIDQGVKDOOKDYHQRIRUFHRUHIIHFW6XEMHFWWRWKHODVWVHQWHQFHRI6HFWLRQJWKLV$JUHHPHQW PD\QRWEHDPHQGHGRUPRGLILHGRWKHUWKDQE\DZULWWHQDJUHHPHQWH[HFXWHGE\WKHSDUWLHVKHUHWRRUWKHLUUHVSHFWLYH VXFFHVVRUVDQGOHJDOUHSUHVHQWDWLYHV E$OOQRWLFHVDQGRWKHUFRPPXQLFDWLRQVKHUHXQGHUVKDOOEHLQZULWLQJDQGVKDOOEHJLYHQE\KDQGGHOLYHU\WR WKHRWKHUSDUW\RUE\UHJLVWHUHGRUFHUWLILHGPDLOUHWXUQUHFHLSWUHTXHVWHGSRVWDJHSUHSDLGDGGUHVVHGDVIROORZV ,IWRWKH([HFXWLYH        ,IWRWKH&RPSDQ\  %RUJ:DUQHU,QF +DPOLQ5RDG                                                                                                                                                     

 

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he Executive’s or the Company’s failure to insist upon strict compliance with any provision hereof or any  RWKHUSURYLVLRQRIWKLV$JUHHPHQWRUWKHIDLOXUHWRDVVHUWDQ\ULJKWWKH([HFXWLYHRUWKH&RPSDQ\PD\KDYH KHUHXQGHULQFOXGLQJZLWKRXWOLPLWDWLRQWKHULJKWRIWKH([HFXWLYHWRWHUPLQDWHHPSOR\PHQWIRU*RRG5HDVRQ SXUVXDQWWR6HFWLRQFLYRIWKLV$JUHHPHQWVKDOOQRWEHGHHPHGWREHDZDLYHURIVXFKSURYLVLRQRUULJKWRU DQ\RWKHUSURYLVLRQRUULJKWRIWKLV$JUHHPHQW I7KH([HFXWLYHDQGWKH&RPSDQ\DFNQRZOHGJHWKDWH[FHSWDVPD\RWKHUZLVHEHSURYLGHGXQGHUDQ\RWKHU ZULWWHQDJUHHPHQWEHWZHHQWKH([HFXWLYHDQGWKH&RPSDQ\WKHHPSOR\PHQWRIWKH([HFXWLYHE\WKH&RPSDQ\LV “at will” and, subject to Section 1(a) of this Agreement, prior to the Effective Date, the Executive’s employment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of the Code, such amounts shall be paid to the personal representative of the Executive’s estate within 30 days after  the date of the Executive’s death. All reimbursements and in NLQGEHQHILWVSURYLGHGXQGHUWKLV$JUHHPHQWWKDW FRQVWLWXWHGHIHUUHGFRPSHQVDWLRQZLWKLQWKHPHDQLQJRI6HFWLRQ$RIWKH&RGHVKDOOEHPDGHRUSURYLGHGLQ DFFRUGDQFHZLWKWKHUHTXLUHPHQWVRI6HFWLRQ$RIWKH&RGHLQFOXGLQJZLWKRXWOLPLWDWLRQWKDWLLQQRHYHQW VKDOOUHLPEXUVHPHQWVE\WKH&RPSDQ\XQGHUWKLV$JUHHPHQWEHPDGHODWHUWKDQWKHHQGRIWKHFDOHQGDU\HDUQH[W IROORZLQJWKHFDOHQGDU\HDULQZKLFKWKHDSSOLFDEOHIHHVDQGH[SHQVHVZHUHLQFXUUHGSURYLGHG WKDWWKH([HFXWLYH VKDOOKDYHVXEPLWWHGDQLQYRLFHIRUVXFKIHHVDQGH[SHQVHVDWOHDVWGD\VEHIRUHWKHHQGRIWKHFDOHQGDU\HDUQH[W IROORZLQJWKHFDOHQGDU\HDULQZKLFKVXFKIHHV                                                                                                                                                     

 

  DQGH[SHQVHVZHUHLQFXUUHGLLWKHDPRXQWRILQNLQGEHQHILWVWKDWWKH&RPSDQ\LVREOLJDWHGWRSD\RUSURYLGHLQ DQ\JLYHQFDOHQGDU\HDUVKDOOQRWDIIHFWWKHLQNLQGEHQHILWVWKDWWKH&RPSDQ\LVREOLJDWHGWRSD\RUSURYLGHLQDQ\ RWKHUFDOHQGDU\HDULLL the Executive’s right to have the Company pay or provide such reimbursements and in NLQG EHQHILWVPD\QRWEHOLTXLGDWHGRUH[FKDQJHGIRUDQ\RWKHUEHQHILWDQGLY in no event shall the Company’s  REOLJDWLRQVWRPDNHVXFKUHLPEXUVHPHQWVRUWRSURYLGHVXFKLQ kind benefits apply later than the Executive’s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greement or the Executive’s employment,  WKHUHVSHFWLYHULJKWVDQGREOLJDWLRQVRIWKHSDUWLHVKHUHWRVKDOOVXUYLYHWRWKHH[WHQWQHFHVVDU\WRFDUU\RXWWKH LQWHQWLRQVRIWKHSDUWLHVXQGHUWKLV$JUHHPHQW ,1:,71(66:+(5(2)WKH([HFXWLYHKDVKH reunto set the Executive’s hand and, pursuant to the  DXWKRUL]DWLRQIURPLWV%RDUGRI'LUHFWRUVWKH&RPSDQ\KDVFDXVHGWKLV$JUHHPHQWWREHH[HFXWHGLQLWVQDPHRQLWV EHKDOIDOODVRIWKHGD\DQG\HDUILUVWDERYHZULWWHQ                                                                                                                                                                                                                                               %25*:$51(5,1&                                                                                                                      %\a1028formofamendedcontro

                                                                                      Exhibit 10.28   (;FLFDPHQGPHQWKWP&+$1*(,1&21752/                                            (;+,%,7                                                                                     $0(1'('$1'5(67$7('                               &+$1*(2)&21752/(03/2<0(17$*5((0(17                                 AGREEMENT by and between BorgWarner Inc., a Delaware corporation (the “Company”) and  ____________ (the “Executive”) dated as of the ___ day of _____________, 2009.                  WHEREAS, the Board of Directors of the Company (the “Board”), has determined t KDWLWLVLQWKH EHVWLQWHUHVWVRIWKH&RPSDQ\DQGLWVVWRFNKROGHUVWRDVVXUHWKDWWKH&RPSDQ\ZLOOKDYHWKHFRQWLQXHGGHGLFDWLRQRI WKH([HFXWLYHQRWZLWKVWDQGLQJWKHSRVVLELOLW\WKUHDWRURFFXUUHQFHRID&KDQJHRI&RQWURODVGHILQHGEHORZRIWKH &RPSDQ\7KH%RDUGEHOLHYHVLWLVLPSHUDWLYHWRGLPLQLVKWKHLQHYLWDEOHGLVWUDFWLRQRIWKH([HFXWLYHE\YLUWXHRIWKH SHUVRQDOXQFHUWDLQWLHVDQGULVNVFUHDWHGE\DSHQGLQJRUWKUHDWHQHG&KDQJHRI&RQWURODQGWRHQFRXUDJHWKH Executive’s full attention and dedi FDWLRQWRWKH&RPSDQ\FXUUHQWO\DQGLQWKHHYHQWRIDQ\WKUHDWHQHGRUSHQGLQJ &KDQJHRI&RQWURODQGWRSURYLGHWKH([HFXWLYHZLWKFRPSHQVDWLRQDQGEHQHILWVDUUDQJHPHQWVXSRQD&KDQJHRI &RQWUROZKLFKHQVXUHWKDWWKHFRPSHQVDWLRQDQGEHQHILWVH[SHFWDWLRQVRIWKH([HFXWLYHZLOOEHVDWLVILHGDQGZKLFK DUHFRPSHWLWLYHZLWKWKRVHRIRWKHUFRUSRUDWLRQV                 >:+(5($6EHFDXVHWKH([HFXWLYH>KDV@>ZLOOREWDLQ@LQWLPDWHDQGYDOXDEOHNQRZOHGJHDQG experience in the operation of the Company’s business, as well as techn LFDOILQDQFLDOFXVWRPHUDQGRWKHU confidential information related to the Company’s business, as a condition to the Company’s willingness to enter  LQWRWKLV$JUHHPHQWWKH&RPSDQ\KDVUHTXLUHGWKDWWKH([HFXWLYHH[HFXWHDQGGHOLYHUWKH>1RQ&RPSHWH $JUHH ment] attached to this Agreement as Exhibit A (the “Non Compete”), pursuant to which Executive has agreed  not to compete with the Company or solicit the Company’s employees and customers during [the term of this  Agreement] [Executive’s employment with the &RPSDQ\@DQGGXULQJWKH>RQH\HDU@>PRQWK@SHULRGIROORZLQJ Executive’s termination of employment with the Company.]                  WHEREAS, the Company would not have entered into this Agreement but for Executive’s  H[HFXWLRQRIWKH1RQ&RPSHWHDQGDFFRUGLQJO\FRQWHPSRUDQHRXVZLWKWKHH[HFXWLRQRIWKLV$JUHHPHQWWKH ([HFXWLYHDQGWKH&RPSDQ\KDYHHQWHUHGLQWRWKH1RQ&RPSHWH                 12:7+(5()25(,7,6+(5(%<$*5(('$6)2//2:6                  &HUWDLQ'HILQLWLRQV D The “Effective Date” shall mean the first date during WKH&KDQJHRI &RQWURO3HULRGDVGHILQHGLQ6HFWLRQERQZKLFKD&KDQJHRI&RQWURODVGHILQHGLQ6HFWLRQ RFFXUV Anything in this Agreement to the contrary notwithstanding, if (i) the Executive’s employment with the  &RPSDQ\LVWHUPLQDWHGE\WKH&RPSDQ\LLWKH'DWHRI7HUPLQDWLRQLVSULRUWRWKHGDWHRQZKLFKD&KDQJHRI &RQWURORFFXUVDQGLLLLWLVUHDVRQDEO\GHPRQVWUDWHGE\WKH([HFXWLYHWKDWVXFKWHUPLQDWLRQRIHPSOR\PHQW$ ZDVDWWKHUHTXHVWRIDWKLUGSDUW\WKDWKDVWDNHQVWHSVUHDVRQDEO\FDOFXODWHGWRHIIHFWD&KDQJHRI&RQWURORU% RWKHUZLVHDURVHLQFRQQHFWLRQZLWKRUDQWLFLSDWLRQRID&KDQJHRI&RQWUROWKHQIRUDOOSXUSRVHVRIWKLV                  Agreement the “Effective Date” shall mean the date immediately prior to such Date of  7HUPLQDWLRQ                 E The “Change of Control Period” shall mean the period commencing on the date hereof and  HQGLQJRQWKHWKLUGDQQLYHUVDU\RIWKHGDWHKHUHRISURYLGHG KRZHYHU WKDWFRPPHQFLQJRQWKHGDWHRQH\HDUDIWHU WKHGDWHKHUHRIDQGRQHDFKDQQXDODQQLYHUVDU\RIVXFKGDWHVXFKGDWHDQGHDFKDQQXDODQQLYHUVDU\WKHUHRIVKDOOEH hereinafter referred to as the “Renewal Date”), unless previously terminated, the Change of Control Period shall be  DXWRPDWLFDOO\H[WHQGHGVRDVWRWHUPLQDWHWKUHH\HDUVIURPVXFK5HQHZDO'DWHXQOHVVDWOHDVWGD\VSULRUWRWKH 5HQHZDO'DWHWKH&RPSDQ\VKDOOJLYHQRWLFHWRWKH([HFXWLYHWKDWWKH&KDQJHRI&RQWURO3HULRGVKDOOQRWEHVR H[WHQGHG                  &KDQJHRI&RQWURO  For the purpose of this Agreement, a “Change of Control” shall me DQ 

 

                D 7KHDFTXLVLWLRQE\DQ\LQGLYLGXDOHQWLW\RUJURXSZLWKLQWKHPHDQLQJRI6HFWLRQGRU 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial  RZQHUVKLSZLWKLQWKHPHDQLQJRI5XOHGSURPXOJDWHGXQGHUWKH([FKDQJH$FWRIRUPRUHRIHLWKHULWKH then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (ii) the  FRPELQHGYRWLQJSRZHURIWKHWKHQRXWVWDQGLQJYRWLQJVHFXULWLHVRIWKH&RPSDQ\HQWLWOHGWRYRWHJHQHUDOO\LQWKH election of directors (the “Outstanding Company Voting Securities”); SURYLGHG KRZHYHU WKDWIRUSXUSRVHVRIWKLV VXEVHFWLRQDWKHIROORZLQJDFTXLVLWLRQVVKDOOQRWFRQVWLWXWHD&KDQJHRI&RQWURO:DQ\DFTXLVLWLRQGLUHFWO\IURP WKH&RPSDQ\;DQ\DFTXLVLWLRQE\WKH&RPSDQ\<DQ\DFTXLVLWLRQE\DQ\HPSOR\HHEHQHILWSODQRUUHODWHG WUXVWVSRQVRUHGRUPDLQWDLQHGE\WKH&RPSDQ\RUDQ\HQWLW\FRQWUROOHGE\WKH&RPSDQ\=DQ\DFTXLVLWLRQ SXUVXDQWWRDWUDQVDFWLRQZKLFKFRPSOLHVZLWKFODXVHVLLLDQGLLLRIVXEVHFWLRQFRIWKLV6HFWLRQ                 E Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease  IRUDQ\UHDVRQWRFRQVWLWXWHDWOHDVWDPDMRULW\RIWKH%RDUGSURYLGHG KRZHYHU WKDWDQ\LQGLYLGXDOEHFRPLQJD director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders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f the foregoing, a “Business Combination”), in each case, unless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such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one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“Employment Period”).  The Employment Period shall terminate upon the Executive’s termination of employment  IRUDQ\UHDVRQ  

 

                7HUPVRI(PSOR\PHQW D3RVLWLRQDQG'XWLHV L'XULQJWKH(PSOR\PHQW3HULRG$WKH Executive’s po VLWLRQLQFOXGLQJVWDWXVRIILFHVWLWOHVDQGUHSRUWLQJUHTXLUHPHQWVDXWKRULW\GXWLHVDQG UHVSRQVLELOLWLHVVKDOOEHDWOHDVWFRPPHQVXUDWHLQDOOPDWHULDOUHVSHFWVZLWKWKHPRVWVLJQLILFDQWRIWKRVHKHOG H[HUFLVHGDQGDVVLJQHGWRWKH([HFXWLYHDWDQ\WLPHGXULQJWKHGD\SHULRGLPPHGLDWHO\SUHFHGLQJWKH(IIHFWLYH Date and (B) the Executive’s services shall be performed at the location where the Executive was employed  LPPHGLDWHO\SUHFHGLQJWKH(IIHFWLYH'DWHRUDQ\RIILFHRUORFDWLRQOHVVWKDQPLOHVIURPVXFKORFDWLRQ                        LL 'XULQJWKH(PSOR\PHQW3HULRGDQGH[FOXGLQJDQ\SHULRGVRIYDFDWLRQDQGVLFN OHDYHWRZKLFKWKH([HFXWLYHLVHQWLWOHGWKH([HFXWLYHDJUHHVWRGHYRWHUHDVRQDEOHDWWHQWLRQDQGWLPHGXULQJQRUPDO EXVLQHVVKRXUVWRWKHEXVLQHVVDQGDIIDLUVRIWKH&RPSDQ\DQGWRWKHH[WHQWQHFHVVDU\WRGLVFKDUJHWKH responsibilities assigned to the Executive hereunder, to use the Executive’s reasonable best efforts to perform  IDLWKIXOO\DQGHIILFLHQWO\VXFKUHVSRQVLELOLWLHV'XULQJWKH(PSOR\PHQW3HULRGLWVKDOOQRWEHDYLRODWLRQRIWKLV $JUHHPHQWIRUWKH([HFXWLYHWR$VHUYHRQFRUSRUDWHFLYLFRUFKDULWDEOHERDUGVRUFRPPLWWHHV%GHOLYHU OHFWXUHVIXOILOOVSHDNLQJHQJDJHPHQWVRUWHDFKDWHGXFDWLRQDOLQVWLWXWLRQVDQG&PDQDJHSHUVRQDOLQYHVWPHQWVVR ORQJDVVXFKDFWLYLWLHVGRQRWVLJQLILFDQWO\LQWHUIHUHZLWKWKHSHUIRUPDQFHRIWKH                        LLL Executive’s responsibilities as an employee of the Company in accordance with  WKLV$JUHHPHQW,WLVH[SUHVVO\XQGHUVWRRGDQGDJUHHGWKDWWRWKHH[WHQWWKDWDQ\VXFKDFWLYLWLHVKDYHEHHQFRQGXFWHG E\WKH([HFXWLYHSULRUWRWKH(IIHFWLYH'DWHWKHFRQWLQXHGFRQGXFWRIVXFKDFWLYLWLHVRUWKHFRQGXFWRIDFWLYLWLHV VLPLODULQQDWXUHDQGVFRSHWKHUHWRVXEVHTXHQWWRWKH(IIHFWLYH'DWHVKDOOQRWWKHUHDIWHUEHGHHPHGWRLQWHUIHUHZLWK the performance of the Executive’s responsibilities to the Company.                                           E &RPSHQVDWLRQ L%DVH6DODU\ 'XULQJWKH(PSOR\PHQW3HULRGWKH([HFXWLYHVKDOO UHFHLYHDQDQQXDOEDVHVDODU\ (“Annual Base Salary”), which shall be paid at an annual rate, at least equal to twelve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nt, the term “affiliated companies” shall include any company controlled by, controlling or  XQGHUFRPPRQFRQWUROZLWKWKH&RPSDQ\                        LL $QQXDO%RQXV ,QDGGLWLRQWR$QQXDO%DVH6DODU\WKH([HFXWLYHVKDOOEHDZDUGHG IRUHDFKILVFDO\HDUHQGLQJGXULQJW he Employment Period, an annual bonus (the “Annual Bonus”) in cash at least  equal to the Executive’s average of the bonuses paid or payable under the Company’s Management Incentive Bonus  3ODQRUDQ\FRPSDUDEOHDQQXDOERQXVXQGHUDQ\SUHGHFHVVRURUVXFFHVVRUSODQLQUHVSHFWRIWKHODVWWKUHHIXOOILVFDO \HDUVSULRUWRWKH(IIHFWLYH'DWHRULIWKH([HFXWLYHZDVILUVWHPSOR\HGE\WKH&RPSDQ\DIWHUWKHEHJLQQLQJRIWKH HDUOLHVWRIVXFKWKUHHILVFDO\HDUVWKHDYHUDJHRIWKHERQXVHVSDLGRUSD\DEOHXQGHUVXFKSODQVLQUHVSHFWRIWKH ILVFDO\HDUVHQGLQJEHIRUHWKH(IIHFWLYH'DWHGXULQJZKLFKWKH([HFXWLYHZDVHPSOR\HGE\WKH&RPSDQ\ZLWKVXFK ERQXVEHLQJDQQXDOL]HGZLWKUHVSHFWWRDQ\VXFKILVFDO\HDULIWKH([HFXWLYHZDVQRWHPSOR\HGE\WKH&RPSDQ\IRU WKH whole of such fiscal year) (the “Recent Average Bonus”). ,IWKH([HFXWLYHKDVQRWEHHQHOLJLEOHWRHDUQVXFKD bonus for any period prior to the Effective Date, the “Recent Annual Bonus” shall mean the Executive’s target  DQQXDOERQXV IRUWKH\HDULQZKLFKWKH(IIHFWLYH'DWHRFFXUV(DFKVXFK$QQXDO%RQXVVKDOOEHSDLGQRODWHUWKDQ WZRDQGDKDOIPRQWKVDIWHUWKHHQGRIWKHILVFDO\HDUIRUZKLFKWKH$QQXDO%RQXVLVDZDUGHGXQOHVVWKH([HFXWLYH VKDOOHOHFWWRGHIHUWKHUHFHLSWRIVXFK$QQXDO%RQXVSXUVXDQWWRDQDUUDQJHPHQWWKDWPHHWVWKHUHTXLUHPHQWVRI Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).                         LLL ,QFHQWLYH6DYLQJVDQG5HWLUHPHQW3ODQV 'XULQJWKH(PSOR\PHQW3HULRGWKH ([HFXWLYHVKDOOEHHQWLWOHGWRSDUWLFLSDWHLQDOOLQFHQWLYHVDYLQJVDQGUHWLUHPHQWSODQVSUDFWLFHVSROLFLHVDQG SURJUDPVDSSOLFDEOHJHQHUDOO\WRRWKHUSHHUH[HFXWLYHVRIWKH&RPSDQ\DQGLWVDIILOLDWHGFRPSDQLHVEXWLQQRHYHQW 

 

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                7HUPLQDWLRQRI(PSOR\PHQW D'HDWKRU'LVDELOLW\  The Executive’s employment shall  terminate automatically upon the Executive’s death during the Employment Period. ,IWKH&RPSDQ\GHWHUPLQHVLQ JRRGIDLWKWKDWWKH'LVDELOLW\RIWKH([HFXWLYHKDVRFFXUUHGGXULQJWKH(PSOR\PHQW3HULRGSXUVXDQWWRWKH GHILQLWLRQRI'LVDELOLW\VHWIRUWKEHORZLWPD\JLYHWRWKH([HFXWLYHZULWWHQQRWLFHLQDFFRUGDQFHZLWK6HFWLRQE RIWKLV Agreement of its intention to terminate the Executive’s employment.  In such event, the Executive’s  HPSOR\PHQWZLWKWKH&RPSDQ\VKDOOWHUPLQDWHHIIHFWLYHRQWKHWKGD\DIWHUUHFHLSWRIVXFKQRWLFHE\WKH Executive (the “Disability Effective Date”), SURYLGHG WKDWZLWKLQWKHGD\VDIWHUVXFKUHFHLSWWKH([HFXWLYHVKDOO QRWKDYHUHWXUQHGWRIXOO time performance of the Executive’s duties.  For purposes of this Agreement, “Disability”  shall mean the absence of the Executive from the Executive’s duties wi WKWKH&RPSDQ\RQDIXOOWLPHEDVLVIRU FRQVHFXWLYHEXVLQHVVGD\VRUIRUEXVLQHVVGD\VLQDQ\FRQVHFXWLYHGD\VDVDUHVXOWRILQFDSDFLW\GXHWR PHQWDORUSK\VLFDOLOOQHVVZKLFKLVGHWHUPLQHGWREHWRWDODQGSHUPDQHQWE\DSK\VLFLDQVHOHFWHGE\WKH&RPSDQ\RU its insurers and acceptable to the Executive or the Executive’s legal representative.                  E &DXVH  The Company may terminate the Executive’s employment during the Employment  3HULRGZLWKRUZLWKRXW&DXVH For purposes of this Agreement, “Cause” shall mean:                        L WKHZLOOIXODQGFRQWLQXHGIDLOXUHRIWKH([HFXWLYHWRSHUIRUPVXEVWDQWLDOO\WKH Executive’s duties with the Company or one of its affiliates (other than any such failure resulting from incapacity  GXHWRSK\VLFDORUPHQWDOLOOQHVVR r following the Executive’s delivery of a Notice of Termination for Good Reason),  DIWHUDZULWWHQGHPDQGIRUVXEVWDQWLDOSHUIRUPDQFHLVGHOLYHUHGWRWKH([HFXWLYHE\WKH%RDUGRUWKH&KLHI([HFXWLYH 2IILFHURIWKH&RPSDQ\ZKLFKVSHFLILFDOO\LGHQWLILHVWKHPDQQHULQZKLFKWKH%RDUGRU&KLHI([HFXWLYH2IILFHURI the Company believes that the Executive has not substantially performed the Executive’s duties, or                         LL WKHZLOOIXOHQJDJLQJE\WKH([HFXWLYHLQLOOHJDOFRQGXFWRUJURVVPLVFRQGXFWZKLFK LVPDWHULDOO\DQGGHPRQVWUDEO\LQMXULRXVWRWKH&RPSDQ\  For purposes of this provision, no act or failure to act, on the part of the Executive, shall be considered “willful”  XQOHVVLWLVGRQHRURPLWWHGWREHGRQHE\WKH([HFXWLYHLQEDGIDLWKRUZLWKRXWUHDVRQDEOHEHOLHIWKDWWKH  Executive’s action or omission was in the best interests of the Company. $Q\DFWRUIDLOXUHWRDFWEDVHGXSRQ DXWKRULW\JLYHQSXUVXDQWWRDUHVROXWLRQGXO\DGRSWHGE\WKH%RDUGRULIWKH&RPSDQ\LVQRWWKHXOWLPDWHSDUHQW HQWLW\DQGLVQRWSXEOLFO\WUDGHGWKHERDUGRIGLUHFWRUVRUIRUDQRQFRUSRUDWHHQWLW\HTXLYDOHQWJRYHUQLQJERG\RI the ultimate parent of the Company (the “Applicable Board”)or upon the instructions of the Chief Executive Officer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he Executive’s employment may be terminated by the Executive for Good  5HDVRQRUE\WKH([HFXWLYHYROXQWDULO\ZLWKRXW*RRG5HDVRQ For purposes of this Agreement, “Good Reason”  VKDOOPHDQ                        L WKHDVVLJQPHQWWRWKH([HFXWLYHRIDQ\GXWLHVLQFRQVLVWHQWLQDQ\UHVSHFWZLWKWKH Executive’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities  DVFRQWHPSODWHGE\6HFWLRQDRIWKLV$JUHHPHQWRUDQ\RWKHUGLPLQXWLRQLQVXFKSRVLWLRQDXWKRULW\GXWLHVRU responsibilities (whether or not occurring solely as a result of the Company’s ceasing to be a publicly traded entity),  

 

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                               $ the sum of (1) the Executive’s Annual Base Salary through the Date of  Termination to the extent not theretofore paid, (2) the Executive’s business expenses that are reimbursable pursuant  WR6HFWLRQE )(v) but have not been reimbursed by the Company as of the Date of Termination; (3) the Executive’s  $QQXDO%RQXVIRUWKHILVFDO\HDULPPHGLDWHO\SUHFHGLQJWKHILVFDO\HDULQZKLFKWKH'DWHRI7HUPLQDWLRQRFFXUVLI VXFKERQXVKDVEHHQGHWHUPLQHGEXWQRWSDLGDVRIWKH'DWHRI7HUPLQDWLRQDQ\DFFUXHGYDFDWLRQSD\WRWKH extent not theretofore paid (the sum of the amounts described in subclauses (1), (2), (3) and (4), the “Accrued  Obligations”) and (5) an amount equal to the product of (x) the Recent Ave UDJH%RQXVDQG\DIUDFWLRQWKH QXPHUDWRURIZKLFKLVWKHQXPEHURIGD\VLQWKHFXUUHQWILVFDO\HDUWKURXJKWKH'DWHRI7HUPLQDWLRQDQGWKH denominator of which is 365 (the “Pro Rata Bonus”); SURYLGHG WKDWQRWZLWKVWDQGLQJWKHIRUHJRLQJLIWKH([HFXWLYH KDVPDGHDQLUUHYRFDEOHHOHFWLRQXQGHUDQ\GHIHUUHGFRPSHQVDWLRQDUUDQJHPHQWVXEMHFWWR6HFWLRQ$RIWKH&RGH WRGHIHUDQ\SRUWLRQRIWKH$QQXDO%DVH6DODU\RUWKH$QQXDO%RQXVGHVFULEHGLQFODXVHVRUDERYHWKHQIRU DOOSXUSRVHVRIWKLV6HFWLRQLQFOXGLQJZLWKRXWOLPLWDWLRQ6HFWLRQVEWKURXJKGVXFKGHIHUUDOHOHFWLRQDQG WKHWHUPVRIWKHDSSOLFDEOHDUUDQJHPHQWVKDOODSSO\WRWKHVDPHSRUWLRQRIWKHDPRXQWGHVFULEHGLQVXFKFODXVHRU FODXVHDQGVXFKSRUWLRQVKDOOQRWEHF onsidered as part of the “Accrued Obligations” but shall instead be an  “Other Benefit” (as defined below); and                                 % WKHDPRXQWHTXDOWRWKHSURGXFWRI>WZR@>WKUHH@DQGWKHVXPRI[ the Executive’s Annual Base Salary and (y) the Recent Average B RQXVDQG                                & DQDPRXQWHTXDOWRWKHSURGXFWRI>WZR@>WKUHH@DQGWKHVXPRID the Company Retirement Contributions (as defined in the BorgWarner Inc. Retirement Savings Plan (“RSP”)) that  ZRXOGKDYHEHHQPDGHXQGHUWKH563IRUWKHILUVW3ODQ<HDUDVGHILQHGLQWKH563HQGLQJDIWHUWKH'DWHRI 7HUPLQDWLRQLIWKHUHKDGEHHQQR/LPLWDWLRQVDVGHILQHGEHORZRQVXFK&RPSDQ\5HWLUHPHQW&RQWULEXWLRQVDQGE DQDPRXQWHTXDOWRWKH&RPSDQ\0DWFKLQJ&RQWULEXWLRQVDVGHILQHGLQWKH563WKDWZRXOGKDYHEHHQPDGHXQGHU WKH563LQWKHILUVW3ODQ<HDUDIWHUWKH'DWHRI7HUPLQDWLRQLIWKHUHKDGEHHQQR/LPLWDWLRQVRQVXFK&RPSDQ\ 0DWFKLQJ&RQWULEXWLRQVDQGDVVXPLQJIRUWKHVHSXUSRVHVWKDWWKH([HFXWLYHKDGHOHFWHGWRGHIHUWKHPD[LPXP DPRXQWRI&RPSHQVDWLRQDVGHILQHGLQWKH563SHUPLWWHGE\WKH563ZLWKRXWUHJDUGWRDQ\/LPLWDWLRQVRQVXFK GHIHUUDODQGDVVXPLQJIRUSXUSRVHVRIFDOFXODWLQJWKHDPRXQWVLQFODXVHVDDQGEWKDWWKH([HFXWLYHKDG UHPDLQHGHPSOR\HGE\WKH&RPSDQ\WKURXJKWKHHQGRIVXFK3ODQ<HDUZLWKFRPSHQVDWLRQHTXDOWRWKDWUHTXLUHGE\ Section 4(b)(i) and Section 4(b)(ii) of this Agreement (“Limitations” meaning limitations contained in the RSP, the  Employee Retirement Income Security Act (“ERISA”) or the Code (including without l LPLWDWLRQWKHFDS RQ&RPSHQVDWLRQ                                ' for [two] [three] years following the Date of Termination (the “Benefits  Period”), the Company shall provide the Executive and his eligible dependents with medical and dental insurance  coverage (the “Health Care Benefits”) and life insurance benefits no less favorable to those which the Executive and  KLVVSRXVHDQGHOLJLEOHGHSHQGHQWVZHUHUHFHLYLQJLPPHGLDWHO\SULRUWRWKH'DWHRI7HUPLQDWLRQRULIPRUH IDYRUDEOHWRVXFKSHUVRQVDVLQHIIHFWJHQHUDOO\DWDQ\WLPHWKHUHDIWHUZLWKUHVSHFWWRRWKHUSHHUH[HFXWLYHVRIWKH &RPSDQ\DQGWKH$IILOLDWHG&RPSDQLHVSURYLGHG KRZHYHU WKDWWKH+HDOWK&DUH%HQHILWVVKDOOEHSURYLGHGGXULQJ WKH%HQHILWV3HULRGLQVXFKDPDQQHUWKDWVXFKEHQHILWVDUHH[FOXGHGIURPWKH( xecutive’s income for federal income  WD[SXUSRVHVSURYLGHG IXUWKHU KRZHYHU WKDWLIWKH([HFXWLYHEHFRPHVUHHPSOR\HGZLWKDQRWKHUHPSOR\HUDQGLV HOLJLEOHWRUHFHLYHKHDOWKFDUHEHQHILWVXQGHUDQRWKHUHPSOR\HUSURYLGHGSODQWKHKHDOWKFDUHEHQHILWVSURYLGHG KHUHXQGHUVKDOOEHVHFRQGDU\WRWKRVHSURYLGHGXQGHUVXFKRWKHUSODQGXULQJVXFKDSSOLFDEOHSHULRGRI HOLJLELOLW\7KHUHFHLSWRIWKH+HDOWK&DUH%HQHILWVVKDOOEHFRQGLWLRQHGXSRQWKH([HFXWLYHFRQWLQXLQJWRSD\WKH $SSOLFDEOH&2%5$3UHPLXPZLWKUHVSHFWWRWKHOHYHORIFRYHUDJHWKDWWKH([HFXWLYHKDVHOHFWHGIRUWKH([HFXWLYH and the Executive’s spouse and eligible dependents ( e.g. VLQJOHVLQJOHSOXVRQHRUIDPLO\'XULQJWKHSRUWLRQRI WKH%HQHILWV3HULRGLQZKLFKWKH([HFXWLYHDQGKLVHOLJLEOHGHSHQGHQWVFRQWLQXHWRUHFHLYHFRYHUDJHXQGHUWKH Company’s Health Care Benefits plans, the Company shall pay to the Executive a monthly amount equal to the  $SSOLFDEOH&2%5$3UHPLXPLQUHVSHFWRIWKHPD[LPXPOHYHORIFRYHUDJHWKDWWKH([HFXWLYHFRXOGKDYHHOHFWHGWR receive for the Executive and the Executive’s spouse and eligible dependents if the Executive were still an employee  RIWKH&RPSDQ\GXULQJWKH%HQHILWV3HULRG e.g. VLQJOHVLQJOHSOXVRQHRUIDPLO\UHJDUGOHVVRIZKDWOHYHORI FRYHUDJHLVDFWXDOO\HOHFWHGZKLFKSD\PHQWVKDOOEHSDLGLQDGYDQFHRQWKHILUVWSD\UROOGD\RIHDFKPRQWK commencing with the month immediately following the Executive’s Date of Termination. 7KH&RPSDQ\VKDOOXVH LWVUHDVRQDEOHEHVWHIIRUWVWRHQVXUHWKDWIROORZLng the end of the Benefit Period, the Executive and the Executive’s  VSRXVHDQGHOLJLEOHGHSHQGHQWVVKDOOEHHOLJLEOHWRHOHFWFRQWLQXHGKHDOWKFRYHUDJHSXUVXDQWWR6HFWLRQ%RIWKH 

 

Code or other applicable law (“COBRA Coverage”), as if the Executive’s HPSOR\PHQWZLWKWKH&RPSDQ\KDG WHUPLQDWHGDVRIWKHHQGRIVXFKSHULRG)RUSXUSRVHVRIGHWHUPLQLQJHOLJLELOLW\EXWQRWWKHWLPHRIFRPPHQFHPHQW of benefits) of the Executive for retiree welfare benefits pursuant to the Company’s retiree welfare benefit SODQVLI DQ\WKH([HFXWLYHVKDOOEHFRQVLGHUHGWRKDYHUHPDLQHGHPSOR\HGXQWLOWKHHQGRIWKH%HQHILW3HULRGDQGWRKDYH retired on the last day of such period. For purposes of this Provision, “Applicable COBRA Premium” means the  PRQWKO\SUHPLXPLQHIIHFWIURPWLPHWRWLPHIRUFRYHUDJHSURYLGHGWRIRUPHUHPSOR\HHVXQGHU6HFWLRQ%RI WKH&RGHDQGWKHUHJXODWLRQVWKHUHXQGHUZLWKUHVSHFWWRDSDUWLFXODUOHYHORIFRYHUDJH e.g. VLQJOHVLQJOHSOXVRQHRU IDPLO\                                                       LL WKH&RPSDQ\VKDOODWLWVVROHH[SHQVHDVLQFXUUHGSURYLGHWKH([HFXWLYHZLWK outplacement services the scope and provider of which shall be selected by the Executive in the Executive’s sole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shall be hereinafter referred to as the “Other Benefits”) in accordance with the terms of the underlying plans or  DJUHHPHQWV  1RWZLWKVWDQGLQJWKHIRUHJRLQJSURYLVLRQVRI6HFWLRQDLDQG6HFWLRQDLLLQWKHHYHQWWKDWWKH([HFXWLYHLVD “specified employee” within the meaning of Section 409A of the Code (as determined in accordance with the  methodology established by the Company as in effect on the Date of Termination) (a “Specified Employee”  amounts that constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code that  ZRXOGRWKHUZLVHEHSD\DEOHDQGEHQHILWVWKDWZRXOGRWKHUZLVHEHSURYLGHGXQGHU6HFWLRQDLRU6HFWLRQDLL GXULQJWKHVL[PRQWKSHULRGLPPHGLDWHO\IROORZLQJWKH'DWHRI7HUPLQDWLRQRWKHUWKDQWKH$FFUXHG2EOLJDWLRQV VKDOOLQVWHDGEHSDLGZLWKLQWHUHVWRQDQ\GHOD\HGSD\PHQWDWWKHDSSOLFDEOHIHGHUDOUDWHSURYLGHGIRULQ6HFWLRQ 7872(f)(2)(A) of the Code (“Interest”) determined as of WKH'DWHRI7HUPLQDWLRQRUSURYLGHGRQWKHILUVWEXVLQHVV day after the date that is six months following the Executive’s Date of Termination (the “Delayed Payment Date”);                  E 'HDWK  If the Executive’s employment is terminated by reason of the Executive’s death  during the Employment Period, the Company shall provide the Executive’s estate or beneficiaries with the Accrued  2EOLJDWLRQVDQGWKH3UR5DWD%RQXVDQGWKHWLPHO\SD\PHQWRUGHOLYHU\RIWKH2WKHU%HQHILWVDQGVKDOOKDYHQR RWKHUVHYHUDQFHREOLJDWLRQVXQGHUWKLV$JUHHPHQW7KH$FFUXHG2EOLJDWLRQVVXEMHFWWRWKHSURYLVRVHWIRUWKLQ Section 6(a)(1)(A) to the extent applicable) and the Pro Rata Bonus shall be paid to the Executive’s estate or  EHQHILFLDU\DVDSSOLFDEOHLQDOXPSVXPLQFDVKZLWKLQGD\VRIWKH'DWHRI7HUPLQDWLRQ:LWKUHVSHFWWRWKH provision of the Other Benefits, the term “Other Benefits” as utilized in this Section 6(b) shall include, without  limitation, and the Executive’s estate and/or beneficiaries shall be entitled to UHFHLYHEHQHILWVHLWKHUSXUVXDQWWRD SODQSURJUDPSUDFWLFHRUSROLF\RUDQLQGLYLGXDODUUDQJHPHQWDWOHDVWHTXDOWRWKHPRVWIDYRUDEOHEHQHILWVSURYLGHG E\WKH&RPSDQ\DQGWKHDIILOLDWHGFRPSDQLHVWRWKHHVWDWHVDQGEHQHILFLDULHVRISHHUH[HFXWLYHVRIWKH&RPSDQ\DQG VXFKDIILOLDWHGFRPSDQLHVXQGHUVXFKSODQVSURJUDPVSUDFWLFHVDQGSROLFLHVUHODWLQJWRGHDWKEHQHILWVLIDQ\DVLQ HIIHFWZLWKUHVSHFWWRRWKHUSHHUH[HFXWLYHVDQGWKHLUEHQHILFLDULHVDWDQ\WLPHGXULQJWKHGD\SHULRG LPPHGLDWHO\ preceding the Effective Date or, if more favorable to the Executive’s estate and/or the Executive’s  beneficiaries, as in effect on the date of the Executive’s death with respect to other peer executives of the Company  DQGLWVDIILOLDWHGFRPSDQLHVDQGWKHLUEHQHILFLDULHV                 F 'LVDELOLW\  If the Executive’s employment is terminated by reason of the Executive’s  'LVDELOLW\GXULQJWKH(PSOR\PHQW3HULRGWKH&RPSDQ\VKDOOSURYLGHWKH([HFXWLYHZLWKWKH$FFUXHG2EOLJDWLRQV DQG3UR5DWD%RQXVDQGWKHWLPHO\SD\PHQWRUGHOLYHU\RIWKH2WKHU%HQHILWVLQDFFRUGDQFHZLWKWKHWHUPVRIWKH XQGHUO\LQJSODQVRUDJUHHPHQWVDQGVKDOOKDYHQRRWKHUVHYHUDQFHREOLJDWLRQVXQGHUWKLV$JUHHPHQW7KH$FFUXHG 2EOLJDWLRQVVXEMHFWWRWKHSURYLVRVHWIRUWKLQ6HFWLRQD$WRWKHH[WHQWDSSOLFDEOHDQGWKH3UR5DWD%RQXV 

 

VKDOOEHSDLGWRWKH([HFXWLYHLQDOXPSVXPLQFDVKZLWKLQGD\VRIWKH'DWHRI7HUPLQDWLRQSURYLGHG WKDWLQWKH HYHQWWKDWWKH([HFXWLYHLVD6SHFLILHG(PSOR\HHWKH3UR5DWD%RQXVVKDOOEHSDLGZLWK,QWHUHVWWRWKH([HFXWLYH RQWKH'HOD\HG3D\PHQW'DWH With respect to the provision of the Other Benefits, the term “Other Benefits” as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and/or the Executive’s family, as in effect at any time thereafter generally with respect to other peer executives of  WKH&RPSDQ\DQGWKHDIILOLDWHGFRPSDQLHVDQGWKHLUIDPLOLHV                 G &DXVH2WKHUWKDQIRU*RRG5HDVRQ  If the Executive’s employment is terminated for Cause  during the Employment Period, the Company shall provide the Executive with the Executive’s Annual Base Salary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othing in this Agreement shall prevent or limit the Executive’s  FRQWLQXLQJRUIXWXUHSDUWLFLSDWLRQLQDQ\SODQSURJUDPSROLF\RUSUDFWLFHSURYLGHGE\WKH&RPSDQ\RUDQ\RILWV DIILOLDWHGFRPSDQLHVDQGIRUZKLFKWKH([HFXWLYHPD\TXDOLI\QRUVXEMHFWWR6HFWLRQIVKDOODQ\WKLQJKHUHLQ OLPLWRURWKHUZLVHDIIHFWVXFKULJKWVDVWKH([HFXWLYHPD\KDYHXQGHUDQ\RWKHUFRQWUDFWRUDJUHHPHQWZLWKWKH &RPSDQ\RUDQ\RILWVDIILOLDWHGFRPSDQLHV$PRXQWVZKLFKDUHYHVWHGEHQHILWVRUZKLFKWKH([HFXWLYHLVRWKHUZLVH HQWLWOHGWRUHFHLYHXQGHUDQ\SODQSROLF\SUDFWLFHRUSURJUDPRIRUDQ\FRQWUDFWRUDJUHHPHQWZLWKWKH&RPSDQ\RU DQ\RILWVDIILOLDWHGFRPSDQLHVDWRUVXEVHTXHQWWRWKH'DWHRI7HUPLQDWLRQVKDOOEHSD\DEOHLQDFFRUGDQFHZLWKVXFK SODQSROLF\SUDFWLFHRUSURJUDPRUFRQWUDFWRUDJUHHPHQWH[FHSWDVH[SOLFLWO\PRGLILHGE\WKLV$JUHHPHQW:LWKRXW limiting the generality of the foregoing, the Executive’s resignation under this Agreement with or without Good  5HDVRQVKDOOLQQRZD\DIIHFWWKH([HF utive’s ability to terminate employment by reason of the Executive’s  “retirement” under any compensation and benefits plans, programs or arrangements of the affiliated companies,  LQFOXGLQJZLWKRXWOLPLWDWLRQDQ\UHWLUHPHQWRUSHQVLRQSODQVRUDUUDQJHPHQWVRUWREHHOLJLEOHWRUHFHLYHEHQHILWV XQGHUDQ\FRPSHQVDWLRQRUEHQHILWSODQVSURJUDPVRUDUUDQJHPHQWVRIWKH&RPSDQ\RUDQ\RILWVDIILOLDWHG FRPSDQLHVLQFOXGLQJZLWKRXWOLPLWDWLRQDQ\UHWLUHPHQWRUSHQVLRQSODQRUDUUDQJHPHQWRIWKH&RPSDQ\RUDQ\RILWV DIILOLDWHGFRPSDQLHVRUVXEVWLWXWHSODQVDGRSWHGE\WKH&RPSDQ\RULWVVXFFHVVRUVDQGDQ\WHUPLQDWLRQZKLFK otherwise qualifies as Good Reason shall be treated as such even if it is also a “retirement” for purposes of any such  SODQ1RWZLWKVWDQGLQJWKHIRUHJRLQJLIWKH([HFXWLYHUHFHLYHVSD\PHQWVDQGEHQHILWVSXUVXDQWWR6HFWLRQDRI WKLV$JUHHPHQWWKH([HFXWLYHVKDOOQRWEHHQWLWOHGWRDQ\VHYHUDQFHSD\RUEHQHILWVXQGHUDQ\VHYHUDQFHSODQ SURJUDPRUSROLF\RIWKH&RPSDQ\DQGWKHDIILOLDWHGFRPSDQLHVXQOHVVRWKHUZLVHVSHFLILFDOO\SURYLGHGWKHUHLQLQD VSHFLILFUHIHUHQFHWRWKLV$JUHHPHQW                  )XOO6HWWOHPHQW/HJDO)HHV  The Company’s obligation to make the payments provided for  LQWKLV$JUHHPHQWDQGRWKHUZLVHWRSHUIRUPLWVREOLJDWLRQVKHUHXQGHUVKDOOQRWEHDIIHFWHGE\DQ\VHWRII FRXQWHUFODLPUHFRXSPHQWGHIHQVHRURWKHUFODLPULJKWRUDFWLRQZKLFKWKH&RPSDQ\PD\KDYHDJDLQVWWKH ([HFXWLYHRURWKHUV,QQRHYHQWVKDOOWKH([HFXWLYHEHREOLJDWHGWRVHHNRWKHUHPSOR\PHQWRUWDNHDQ\RWKHUDFWLRQ E\ZD\RIPLWLJDWLRQRIWKHDPRXQWVSD\DEOHWRWKH([HFXWLYHXQGHUDQ\RIWKHSURYLVLRQVRIWKLV$JUHHPHQWDQG H[FHSWDVVSHFLILFDOO\SURYLGHGLQ6HFWLRQDLLVXFKDPRXQWVVKDOOQRWEHUHGXFHGZKHWKHURUQRWWKH([HFXWLYH REWDLQVRWKHUHPSOR\PHQW The Company agrees to pay as incurred (within 10 days following the Company’s  receipt of an invoice from the Executive), at any time from the Effective Date through the Executive’s remaining  OLIHWLPHRULIORQJHUWKURXJKWKHWKDQQLYHUVDU\RIWKH(IIHFWLYH'DWHWRWKHIXOOH[WHQWSHUPLWWHGE\ODZDOO 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                      L  “Reduced Amount” shall mean the greatest amount of Agreement Payments that  FDQEHSDLGWKDWZRXOGQRWUHVXOWLQWKHLPSRVLWLRQRIWKHH[FLVHWD[XQGHU6HFWLRQRIWKH&RGHLIWKH $FFRXQWLQJ)LUPGHWHUPLQHVWRUHGXFH$JUHHPHQW3D\PHQWVSXUVXDQWWR6HFWLRQD                        LL “Net After Tax Receipt” shall mean the present value (as determined in accordance  ZLWK6HFWLRQV*E$LLDQG*GRIWKH&RGHRID3D\PHQWQHWRIDOOWD[HVLPSRVHGRQWKH ([HFXWLYHZLWKUHVSHFWWKHUHWRXQGHU6HFWLRQVDQGRIWKH&RGHDQGXQGHUDSSOLFDEOHVWDWHDQGORFDOODZV GHWHUPLQHGE\DSSO\LQJWKHKLJKHVWPDUJLQDOUDWHXQGHU6HFWLRQRIWKH&RGHDQGXQGHUVWDWHDQGORFDOODZVZKLFK applied to the Executive’s taxable income for t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definition of the term “parachute payment” within the meaning of Q&A DRI6HFWLRQ*RIWKH&RGHLQ DFFRUGDQFHZLWK4 $DRI6HFWLRQ*RIWKH&RGH@                  &RQILGHQWLDO,QIRUPDWLRQ 7KH([HFXWLYHVKDOOKROGLQDILGXFLDU\FDSDFLW\IRUWKHEHQHILWRI WKH&RPSDQ\DOOVHFUHWRUFRQILGHQWLDOLQIRUPDWLRQNQRZOHGJHRUGDWDUHODWLQJWRWKH&RPSDQ\RUDQ\RILWV DIILOLDWHGFRPSDQLHVDQGWKHLUUHVSHFWLYHEXVLQHVVHVZKLFKVKDOOKDYHEHHQREWDLQHGE\WKH([HFXWLYHGXULQJWKH Executive’s employment by the Company or any of its affiliated companies and which shall not be or become public  NQRZOHGJHRWKHUWKDQE\DFWVE\WKH([HFXWLYHRUUHSUHVHQWDWLYHVRIWKH([HFXWLYHLQYLRODWLRQRIWKLV $JUHHPHQW After termination of the Executive’s employment with the Company, the Executive shall not, without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e by the Executive’s legal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s used in this Agreement, “Company” shall mean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he Executive’s or the Company’s failure to insist upon strict compliance with any provision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the Company is “at will” and, subject to Section 1(a) of this Agreement, prior to the Effective Date, the Executive’s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the personal representative of the Executive’s  estate within 30 days after the date of the Executive’s death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

 

DIIHFWWKHLQNLQGEHQHILWVWKDWWKH&RPSDQ\LVREOLJDWHGWRSD\RUSURYLGHLQDQ\RWKHUFDOHQGDU\HDULLLWKH Executive’s right to have the Company pay or provide such reimbursements and in NLQGEHQHILWVPD\QRWEH liquidated or exchanged for any other benefit; and (iv) in no event shall the Company’s obligations to make such  UHLPEXUVHPHQWVRUWRSURYLGHVXFKLQ kind benefits apply later than the Executive’s remaining lifetime (or if longer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the Executive’s  HPSOR\PHQWWKHUHVSHFWLYHULJKWVDQGREOLJDWLRQVRIWKHSDUWLHVKHUHWRVKDOOVXUYLYHWRWKHH[WHQWQHFHVVDU\WRFDUU\ RXWWKHLQWHQWLRQVRIWKHSDUWLHVXQGHUWKLV$JUHHPHQW                                    6,*1$785(3$*()2//2:6                                                                                                                                                          ,1:,71(66:+(5(2)WKH([  ecutive has hereunto set the Executive’s hand and, pursuant to the authorization  IURPLWV%RDUGRI'LUHFWRUVWKH&RPSDQ\KDVFDXVHGWKLV$JUHHPHQWWREHH[HFXWHGLQLWVQDPHRQLWVEHKDOIDOODV RIWKHGD\DQG\HDUILUVWDERYHZULWWHQ                                                (;(&87,9(                                                                                                                                      %\V                                                                  1DPH                                                                  7LWOH                                                                                                                                     %25*:$51(5,1&                                                                                                                                %\V-RKQ-*DVSDURYLF                                                 1DPH-RKQ-*DVSDURYLF                                                 7LWOH9LFH3UHVLGHQW                                                     *HQHUDO&RXQVHODQG                                                    6HFUHWDU\

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00291-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00291-of-00352.parquet"}]]