Document:

Exhibit

Exhibit 10.6
Ally Financial Inc.

ALLY FINANCIAL INC. SEVERANCE PLAN

PLAN DOCUMENT

AND

SUMMARY PLAN DESCRIPTION

As Amended and Re-Stated March 7, 2018

		
	PLAN NAME: 
	Ally Financial Inc. Severance Plan 

		
	PLAN SPONSOR:
	Ally Financial Inc.

		
	PLAN EFFECTIVE DATE:
	As amended and restated, March 7, 2018    

		
	PLAN NUMBER
	535

		
	PLAN ADMINISTRATOR
	Ally Financial Inc.

Ally Financial Inc. (“Ally” or “Company”), a Delaware corporation, established for its eligible employees a plan providing severance benefits. 

The Ally Financial Inc. Severance Plan (the “Plan”) is effective as amended as of March 7, 2018. This document contains certain definitions and general administrative provisions that govern the administration of the benefits provided under the Plan.  This document and the appendix referenced and incorporated herein constitute the Plan as if fully recited over the signature affixed below.  

This document and the appendix may change from time to time, in the sole discretion of the Company.  The consent of any Covered Person or any other persons entitled to receive payment of benefits under the Plan is not required. 

IN WITNESS WHEREOF, this Plan has been adopted as restated by Ally Financial Inc. on this 27th day of March, 2018, effective as of March 7, 2018.

SIGNED BY: 

/S/  GWEN L. GOLLMER                            
Gwen L. Gollmer
Executive Director – Employee Benefits

ALLY FINANCIAL INC. SEVERANCE PLAN 

ALLY FINANCIAL INC. SEVERANCE PLAN

TABLE OF CONTENTS

	
				
	 
	 
	Page

	I.
	Purpose of the Plan
	4

	 
	 
	 
	 

	II.
	Eligibility and Participation
	4

	 
	 
	 
	 

	III.
	Qualifying Terminations of Employment
	5

	 
	 
	 
	 

	IV.
	Plan Benefits
	6

	 
	 
	 
	 

	V.
	Participant’s Obligations
	8

	 
	 
	 
	 

	VI.
	Tax Matters
	10

	 
	 
	 
	 

	VII.
	Administration, Amendment and Termination
	11

	 
	 
	 
	 

	VIII.
	Claims Procedure
	11

	 
	 
	 
	 

	IX.
	Other Information
	11

	 
	 
	 
	 

	X.
	Statement of ERISA Rights
	12

	 
	 
	 
	 

	XI.
	Questions Regarding the Plan
	14

	 
	 
	 
	 

	XII.
	Miscellaneous
	14

	 
	 
	 
	 

	Appendix:
	Claims Procedure
	16

ALLY FINANCIAL INC. SEVERANCE PLAN
PLAN DOCUMENT AND SUMMARY PLAN DESCRIPTION

This is the plan document and Summary Plan Description (“SPD”) for the Ally Financial Inc. Severance Plan (the “Plan”).  Ally Financial Inc. (the “Company”) is the Plan sponsor.  The Company originally adopted the Plan effective January 1, 2009 and has since amended it from time to time.  The Plan is intended to be an employee welfare benefit plan subject to the Employee Retirement Income Security Act of 1974, as amended, and the applicable regulations promulgated thereunder (“ERISA”).  As SPD, the purpose of this document is to explain and provide information regarding the Plan.  You should read it carefully.
		
	I.
	PURPOSE OF THE PLAN

The Plan is intended to provide financial and other benefits to Participants (defined in Section II below) in the event of certain terminations of employment.  Severance payments are not to be viewed as automatic and are not compensation for past services, but instead are intended only as prospective payments that will be offered under the circumstances set forth in the Plan. This Plan replaces and supersedes all other plans, programs, policies, agreements, or arrangements of the Company (other than individual employment agreements) in which any employee was eligible or entitled to participate prior to January 1, 2009.
		
	II.
	ELIGIBILITY AND PARTICIPATION

A.    All United States employees of the Company or any Affiliate participate in the Plan (“Participant(s)”).  However, the level of participation is determined on an individual basis based on a Participant’s level of responsibility within the Company or Affiliate and as described in sub-section B and C below.  “Affiliate” means (i) any entity that owns or controls, is owned or controlled by, or is under common control with the Company and (ii) any entity in which the Company directly or indirectly has a significant equity interest.
B.    Employees who did not participate in the Company’s Long-Term Equity Compensation Incentive Plan1 (“LTECIP”) or Band 2 and Band 3 Employees whose LTECIP participation was the result of an RSU award issued after December 31, 2011 will participate in this Plan at Benefit Level I described herein and be referred to as “Level I Participants”. 
C.    Band 2 Employees who participated in the LTECIP by virtue of an RSU award issued prior to January 1, 2012 or who were hired with eligibility for Ally Supplemental Benefits prior to January 1, 2012, and all Band 1 Employees with the exception of the Chief Executive Officer of Ally Financial Inc. (“CEO”) and the Purview Executives (designated as such from time to time by the Compensation, Nominating, and Governance Committee of the Company’s Board of Directors) will participate in this Plan

1As of April 9, 2014, the LTECIP was replaced by the Ally Financial Inc. 2014 Incentive Compensation Plan which was subsequently restated as the Ally Financial Inc. Incentive Compensation Plan.  These changes did not alter the Plan’s eligibility requirements.  
Page 4 of 19

Exhibit 10.6 Ally Financial Severance Planat Benefit Level II described herein and be referred to as “Level II Participants”; provided, however, that persons who participate in the LTECIP solely as the result of receiving a Key Contributor Share Unit award (a “KCSU”) are not Level II Participants.  KCSU recipients will participate in the Plan at Benefit Level I described herein and remain Level I Participants regardless of whether they received the KCSUs under the LTECIP or the Ally Financial Inc. 2014 Incentive Compensation Plan.
D.    The CEO and Purview Executives will participate in this Plan at Benefit Level III described herein and be referred to as “Level III Participants”.
		
	III.
	QUALIFYING TERMINATIONS OF EMPLOYMENT

A.    Plan benefits are payable only upon a “Qualifying Termination of Employment,” which means a termination of employment initiated by the Company as a result of any of the following:
		
	1.
	Elimination of Participant’s current position, termination associated with the reduction in the total number of employees in the same department performing the same or similar job as Participant, or termination associated with a restructuring of different departments which results in a reduction in the total number of employees, including Participant, in the affected departments;

		
	2.
	Substantial change in current duties for which the Participant no longer qualifies;

		
	3.
	Substantial change in current duties which results in a twenty percent (20%) or more reduction in salary; or

		
	4.
	Declining a geographic transfer of the Participant’s current position in connection with the elimination of the Participant’s current position to a new position at a location more than 50 miles from the location of Participant’s current position, regardless of whether the Participant was offered reimbursement of relocation expenses.

B.    Plan benefits are not payable for a termination of employment that is not a Qualifying Termination of Employment, including but not limited to: 
		
	1.
	Loss of temporary employment;

		
	2.
	Termination of employment where an employment or other written agreement provides for severance;

		
	3.
	Death;

Page 5 of 19

		
	4.
	Disability;

		
	5.
	Involuntary termination for cause as determined by the Company in its sole discretion;

		
	6.
	Resignation; 

		
	7.
	Retirement;

		
	8.
	An approved leave of absence or failure to return therefrom;

		
	9.
	Transfers from the Company to an Affiliate;

		
	10.
	The majority of the Company’s assets are sold via an asset purchase agreement or the Company ceases an operation and the same is assumed by another employer and continued employment is offered with a comparable salary and incentive opportunity (including equity compensation) equal to or greater than 80% of the Participant’s current compensation and incentive package with the Company; or

		
	11.
	A termination of employment for which a Participant has executed a release document or has received payment or benefits pursuant to the terms of any other agreement.

C.    Plan benefits (“Severance Pay” and “Outplacement” as described below) will not be paid unless and until the Participant signs and does not revoke a release document(s) in a form(s) satisfactory to, approved by, and provided by the Company.  These documents may be changed from time to time as determined solely by the Company.
IV. PLAN BENEFITS
A.    Level I Participants are eligible for the following Severance Pay (with “pay” as referenced below meaning base salary only):
	
				
	Band 3 and Band 4
	Band 2

	Full Years of Unbroken Service
	Weeks of Pay
	Full Years of Unbroken Service
	Weeks of Pay

	0 - 4
	10
	0 - 4
	10

	5 - 9
	13
	5 - 9
	17

	10 - 14
	20
	10 - 14
	24

	15 - 19
	30
	15 - 19
	34

	20 - 24
	40
	20 - 24
	44

	25 and above
	52
	25 and above
	52

Page 6 of 19

B.    Level II Participants are eligible for the following Severance Pay (with “pay” as referenced below meaning base salary only):
	
		
	Full Years of Unbroken Service
	Weeks of Pay

	0-4
	26

	5-14
	39

	15 and above
	52

C.    Level III Participants are eligible for the following Severance Pay:
		
	1.
	In the event of a Qualifying Termination of Employment or a Termination of Service without Cause (as defined in the Ally Financial Inc. Incentive Compensation Plan, a “Termination of Service” and “Cause”), in each case, within the 24-month period immediately following a Change in Control (as defined in the Ally Financial Inc. Incentive Compensation Plan, a “Change in Control”):

		
	◦
	Two times the sum of the Participant’s annual base salary and designated annual cash incentive compensation opportunity; and

		
	◦
	The Participant’s pro-rated designated annual cash incentive compensation opportunity for the year of the Participant’s termination; and

		
	◦
	A payment equal to 24 months of medical premiums valued at the Participant’s COBRA rate.

		
	2.
	In the event of a Qualifying Termination of Employment that is not addressed in Paragraph 1:

		
	◦
	 For the CEO, two times annual base salary; and 

		
	o
	For Purview Executives, one times annual base salary.

D.    Base salary for the purpose of determining commission-eligible employees’ Severance Pay is deemed to be $50,000 annually.
E.    Any debts or monies a Participant owes to the Company or its subsidiaries or affiliates will be deducted from the Severance Pay amounts described in A, B, C or D above for which any Participant is eligible.
F.        Outplacement.  Each Participant is eligible to receive outplacement benefits following a Qualifying Termination of Employment through an approved vendor, 

Page 7 of 19

provided that the scope, level, amount, timing, and all other terms and conditions of such outplacement benefits are determined by the Company in its sole discretion and on an individual-by-individual or a group-by-group basis.  In addition, outplacement benefits will be tiered based on the Participant’s level in the organization, market conditions, and/or geographic area.
V.PARTICIPANT’S OBLIGATIONS
A.    Confidentiality.  At all times prior to and following the termination date, a Participant may not disclose to anyone or make use of any trade secret or proprietary or confidential information of the Company or any of its Affiliates, including such trade secret or proprietary or confidential information of any customer or client or other entity to which the Company owes an obligation not to disclose such information, which he or she acquires during his or her employment with the Company, including records kept in the ordinary course of business, except:
		
	1.
	as such disclosure or use may be required or appropriate in connection with his or her work as an employee of the Company; or

		
	2.
	when required to do so by a court or other governmental authority with apparent jurisdiction to order him or her to divulge, disclose or make accessible such information; or

		
	3.
	as to such confidential information that becomes generally known to the public or trade without his or her violation of this covenant; or

		
	4.
	to the Participant’s spouse, attorney, or his or her personal tax and financial advisors as reasonably necessary or appropriate to advance the Participant’s tax, financial, and other personal planning (each an “Exempt Person”); provided, however, that any disclosure or use of any trade secret or proprietary or confidential information of the Company by an Exempt Person will be deemed to be a breach of this covenant by the Participant.

 Notwithstanding anything contained herein, (i) nothing in this Plan or related release document limits any Participant’s ability to communicate directly with and provide information, including documents, not otherwise protected from disclosure by any applicable law or privilege to the Securities and Exchange Commission (the “SEC”), the Financial Industry Regulatory Authority (“FINRA”), or any other federal, state or local governmental agency or commission (“Government Agency”) regarding possible legal violations, without disclosure to the Company, (ii) the Company may not retaliate against any Participant for any of these foregoing activities, (iii) nothing in this Plan or any related release agreement requires any Participant to waive any monetary award or other payment that such Participant might become entitled to from the SEC, FINRA or any other Government Agency, and (iv) nothing in this Plan or any related release 

Page 8 of 19

agreement precludes any Participant from filing a charge of discrimination with the Equal Employment Opportunity Commission or a like charge or complaint with a state or local fair employment practice agency; provided, however, no Participant shall be entitled to receive a monetary award or any other form of personal relief from the Company in connection with any such charge or complaint that such Participant files or that is filed on such Participant’s behalf.
B.    Non-Disparagement.  At all times prior to and following the termination date, a Participant may not make any statements or express any views that disparage the business reputation or goodwill of the Company or any of its Affiliates, investors, shareholders, officers, or employees.
C.    Return of Company Property.  Immediately following the termination date, a Participant must return all Company property in his or her  possession, including but not limited to all computer equipment (hardware and software), telephones, facsimile machines, electronic communication devices, credit cards, office keys, security access cards, badges, identification cards, and all copies (including drafts) of any information (however stored) relating to the business of the Company, its customers or clients, or prospective customers or clients.
D.    Cooperation.  Following the termination date, a Participant will cooperate willingly, as the Company may reasonably request, including his or her attendance and truthful testimony where deemed appropriate by the Company, with respect to any investigation or the Company's defense or prosecution of any existing or future claims or litigations or other proceeding relating to matters in which he or she was involved or potentially had knowledge by virtue of his or her employment with the Company.  
E.    Enforcement of Section V.  
		
	1.
	If a Participant materially violates any provision of this Section V, he or she immediately forfeits any right, title and interest to any Severance Pay that has not yet been paid and will be required to repay to the Company a cash amount equal to the value of the Severance Pay that he or she has already received.

		
	2.
	If a Participant violates or threatens to violate any provisions of Section V, the Company will not have an adequate remedy at law.  Accordingly, the Company is entitled to such equitable and injunctive relief, without posting a bond, as may be available to restrain the Participant and any business, firm, partnership, individual, corporation or entity participating in the breach or threatened breach from the violation of the provisions of Section V.  Nothing in the Plan may be construed as prohibiting the Company from pursuing any other remedies available at law or in equity for 

Page 9 of 19

breach or threatened breach of Section V, including the recovery of damages.  
		
	3.
	If the Company is successful in enforcing its rights under this Section V, the affected Participant will reimburse the Company for its legal fees and costs associated with such enforcement action.

		
	VI.
	TAX MATTERS

A.    Withholding Taxes.  The Company is entitled to withhold from any and all payments made under the Plan all federal, state, local, or other taxes which the Company determines are required to be so withheld from such payment.
B.     Code Sections 409A and 4999.  The Plan is not intended to be subject to Code Section 409A.  If the benefits payable to any Participant under the Plan would be subject to Code Section 409A unless they are fully paid by the date two and one-half months following the year in which they become vested, then such benefits will in all events be paid by such date.  Notwithstanding anything contained in the Plan to the contrary, the Company shall have full authority to operate the Plan and to override or amend any provision in the Plan and any related release agreement in order for the Plan to be fully complaint, both in form and in operation, with Code Section 409A.  Notwithstanding anything to the contrary contained in this Plan or any other plan or agreement, to the extent that the payments and benefits provided under this Plan, together with the payments and benefits provided under any other Company plan or agreement, to or for the benefit of a Participant (such payments or benefits are collectively referred to as the “Payments”) would be subject to the excise tax (the “Excise Tax”) imposed under Code Section 4999, the Payments shall be reduced (but not below zero) so that the value of all Payments equals the Participant’s “base amount,” within the meaning of Code Section 280G(b)(3) and its implementing regulations (the “Safe Harbor Amount”) minus $1.00, but only if, by reason of such reduction, the Net After-Tax Benefit shall exceed the Net After-Tax Benefit if such reduction were not made (the “Required Reduction”).  The Net After-Tax Benefit is defined as the present value of the Payments net of all taxes imposed on the Payments under Code Sections 1 and 4999 and under applicable state and local laws.  If a reduction is required pursuant to the foregoing, unless the Participant shall have given a prior written notice specifying a different order to the Company to effectuate the reduction in compliance with Code Section 409A, the Company shall reduce or eliminate the Payments by first reducing or eliminating those payments or benefits which are not payable in cash and then by reducing or eliminating cash payments, in each case in reverse order beginning with payments or benefits which are to be paid the farthest in time from the relevant change in control date.
C.    No Guarantee of Tax Consequences.  No person connected with the Plan in any capacity, including but not limited to the Company, any Affiliate, and their directors, officers, agents, and employees, makes any representation, commitment, or 

Page 10 of 19

guarantee that any tax treatment, including but not limited to federal, state and local income, estate, and gift tax treatment, will be applicable with respect to amounts payable or provided under the Plan, or paid to or for the benefit of a Participant under the Plan, or that such tax treatment will apply to or be available to a Participant on account of participation in the Plan. 
VII.ADMINISTRATION, AMENDMENT AND TERMINATION
A.    The Company has and retains the right to interpret, amend, revise, cancel or terminate the Plan at any time and without prior notice; provided, however, that (i) during the 24-month period immediately following a Change in Control, the Plan may not be amended, revised, cancelled, or terminated if the effect of such action would reduce the rights of any Participant who is a Level III Participant immediately prior to the Change in Control to receive the protections, benefits, and privileges provided to such Level III Participant under the Plan and (ii) no amendment, revision, cancellation, or termination of the Plan may reduce any Participant’s benefits to which he or she has become entitled due to a Qualifying Termination of Employment or a Termination of Service without Cause that has already occurred or is about to occur.  No representations by anyone may extend the Plan to provide severance packages or benefits not covered by the Plan.
B.    The Company, and such other person(s) or entity(ies) to whom such authority has been delegated as a fiduciary of the Plan, may, in its sole discretion, determine each employee’s eligibility for benefits under the Plan, the amount of Severance Pay or other benefits payable under the Plan, and make factual determinations as are required to properly administer the Plan.  Such determinations may also be made under the “Claims Procedure” (explained below) when the Claims Procedure is applicable.
C.    The Company, and such other person(s) or entity(ies) to whom such authority has been delegated as a fiduciary of the Plan, acting under the Claims Procedure or otherwise, has the sole authority and responsibility to interpret or construe the terms and provisions of the Plan in accordance with ERISA.
VIII.CLAIMS PROCEDURE
If you believe that you are entitled to severance benefits, you must make a claim for benefits by following the Claims Procedure set forth in the Appendix to this document.
IX.OTHER INFORMATION
Official Plan Name:  Ally Financial Inc. Severance Plan

Page 11 of 19

Name and Address of Employer that Maintains the Plan:
   
Ally Financial Inc.
500 Woodward Ave.
Detroit, MI 48226

Employer Identification Number of Employer that Maintains the Plan:  
38-0572512
Plan Number:  535
Type of Plan:  Welfare - Severance
Type of Administration:  Self-administered by Ally Financial Inc.    
Funding:  The Plan is unfunded and uninsured.
Sources of Contributions:  The employer, Ally Financial Inc., makes contributions in the amount necessary to pay benefits.
Agent for Service of Legal Process on the Plan and Address at which Process May Be Served: 
Ally Financial Inc.
c/o The Corporation Company
30600 Telegraph Road, Suite 2345
Bingham Farms, MI 48025-5720
Toll-free 800-241-6733

Date of the End of the Year for Purposes of Maintaining the Plan’s Fiscal Records (that is, the Plan year-end):  December 31.
		
	X.
	STATEMENT OF ERISA RIGHTS

As a Participant in the Plan, you are entitled to certain rights and protections under ERISA.  ERISA provides that all Participants are entitled to:
Receive Information about Your Plan and Benefits
		
	•
	Examine, without charge, at the Plan administrator’s office and at other specified locations, such as worksites, all documents governing the Plan, and a copy of the latest annual report (Form 5500 Series), if any, filed by the plan 

Page 12 of 19

with the U.S. Department of Labor, and available at the Public Disclosure Room of the Employee Benefits Security Administration.
		
	•
	Obtain upon written request to the Plan administrator copies of documents governing the operation of the Plan and copies of the latest annual report (Form 5500 Series), if any, and updated summary Plan description.  The Plan administrator may make a reasonable charge for the copies.

		
	•
	Receive a summary of the Plan’s annual financial report.  The Plan administrator is required by law to furnish each participant with a copy of this summary annual report.

Prudent Actions by Plan Fiduciaries
In addition to creating rights for Participants, ERISA imposes duties upon the people who are responsible for the operation of the Plan.  The people who operate your Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and other Participants and beneficiaries.  No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit under the Plan or exercising your rights under ERISA.
Enforce Your Rights
If your claim for a Plan benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.
Under ERISA, there are steps you can take to enforce the above rights.  For instance, if you request a copy of the Plan documents or latest annual report from the Plan and do not receive them within 30 days, you may file suit in a Federal court.  In such a case, the court may require the Plan administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the administrator.  If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or Federal court.  If it should happen that Plan fiduciaries misuse the Plan’s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file a suit in a Federal court.  The court will decide who should pay court costs and legal fees.  If you are successful, the court may order the person you have sued to pay these costs and fees.  If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.
If you have any questions about your Plan, you should contact the Plan administrator (see Section XI below).  If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan administrator, you should contact the nearest office of the Employee Benefits 

Page 13 of 19

Security Administration, U.S. Department of Labor, listed in your telephone directory, or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210.  You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration. 
XI.QUESTIONS REGARDING THE PLAN
Questions regarding the Plan may be directed to: 
Ally Financial Inc.
Attn.: Plan Administrator
500 Woodward Ave.
Detroit, MI 48226

XII.MISCELLANEOUS
A.    No Mitigation.  A Participant is under no obligation to seek other employment following the termination date and there will be no offset against amounts due to the Participant under the Plan on account of any compensation attributable to any subsequent employment.
B.    Offset.  Any benefits paid under the Plan will be reduced by any payment or benefit made or provided by the Company or any Affiliate to the Participant pursuant to:  (i) any plan, program, policy, or arrangement of the Company or Affiliate that provides a payment upon separation from employment not otherwise referred to in the Plan; (ii) the termination-of-employment provisions of any employment agreement between the Company or any Affiliate and the Participant; or (iii) any federal, state or local statute, rule, regulation, or ordinance.  
C.    No Right, Title, or Interest in Company Assets.  Participants have no right, title, or interest whatsoever in or to any assets of the Company or any investments which the Company may make to aid it in meeting its obligations under the Plan.  Nothing contained in the Plan, and no action taken pursuant to its provisions, creates or may be construed to create a trust of any kind or a fiduciary relationship between the Company and any Participant or his or her beneficiary, legal representative, or any other person.  To the extent that any person acquires a right to receive payments from the Company under the Plan, such right is no greater than the right of an unsecured general creditor of the Company.  Subject to this Section XII, all payments to be made under the Plan will be paid from the general funds of the Company and no special or separate fund will be established and no segregation of assets will be made to assure payment of such amounts
D.    No Right to Continued Employment.  A Participant’s rights, if any, to continue to serve the Company as an employee are not enlarged or otherwise affected by 

Page 14 of 19

his or her designation as a Participant, and the Company or applicable Affiliate reserves the right to terminate the employment of any Participant at any time.  The Plan does not give any Participant or any other individual any right to be selected as a Participant or to continued employment with the Company or any Affiliate. 
E.    Other Rights.  The Plan does not affect or impair the rights or obligations of the Company or a Participant under any other written Plan, contract, arrangement, or pension, profit sharing, bonus, equity incentive, or other compensation-providing Plan; provided however, that if any provision of any agreement, plan, program, policy, arrangement, or other written document between or relating to the Company and the Participant conflicts with any provision of the Plan, the provision of the Plan control and prevail.
F.    Governing Law.  Except as superseded by ERISA or other applicable federal law, the Plan is governed by and construed in accordance with the laws of the State of Michigan without reference to principles of conflict of laws,.
G.    Severability.  If any term or condition of the Plan is deemed by a court of law to be invalid or unenforceable to any extent or in any application, then the remainder of the Plan, with the exception of such invalid or unenforceable provision, will not be affected by such determination and will continue in effect and application to its fullest extent.
H.    Executive Compensation Requirements.  Awards hereunder may be subject to the requirements of any federal, State or other statute, regulation or other law that may govern executive compensation and apply to the Company. Notwithstanding any provision of the Plan to the contrary, the Company shall have the right to change this Plan or any Award, or interpret their respective provisions, so as to comply with such requirements.
*  *  *  *  *

Page 15 of 19

APPENDIX
CLAIMS PROCEDURE

		
	1.
	A Participant with an interest in the Plan has the right to file a claim for benefits under the Plan and to appeal any denial of a claim for benefits.  Any request for a Plan benefit or to clarify the Participant’s rights to future benefits under the terms of the Plan will be considered to be a claim; provided, however, this claims procedure does not govern casual inquiries about benefits or the circumstances under which benefits might be paid under the terms of the Plan or a request for a determination regarding eligibility for coverage except such a determination as is requested or necessary in connection with a claim for benefits.  An authorized representative of the Participant may act on behalf of the Participant in pursuing a benefit claim or appeal of an adverse benefit determination.  The individual or individuals responsible for deciding the benefit claim or appeal, as applicable, may require the representative to provide reasonable written proof that the representative has in fact been authorized to act on behalf of the Participant.  The Plan requires no fee or other cost for the making of a claim or appealing an adverse benefit determination. 

		
	2.
	A claim for benefits will be considered as having been made when submitted in writing by the Participant to the Plan administrator, in care of:

Ally Financial Inc.
Attn.:  Benefits Administrator
500 Woodward Ave.
Detroit, MI 48226

Your claim should include:
		
	◦
	Your name, address, telephone number, and employee identity number;

		
	◦
	Your dates of employment with the Company;

		
	◦
	Your job title and position with the Company;

		
	◦
	The reasons for your termination of employment; and

		
	◦
	A statement of the reasons why you believe you are entitled to benefits under the Plan.

		
	3.
	The claim reviewer on the benefits staff acting on behalf of the Plan administrator will determine whether, or to what extent, the claim may be allowed or denied under the terms of the Plan.  If the claim is wholly or partially denied, the claim reviewer on the benefits staff will notify the Participant of the adverse benefit determination within a reasonable period of time, but not later than 90 days after the Plan receives the claim, unless the claim reviewer on the benefits staff 

Page 16 of 19

determines that special circumstances require an extension of time for processing the claim. If such an extension of time for processing is required, written notice of the extension will be furnished to the Participant prior to the termination of the initial 90-day period.  Such extension may not exceed an additional 90 days from the end of the initial 90-day period.  The extension notice will indicate the special circumstances requiring an extension of time and the date by which the Plan expects to render the final decision.  For the purposes of this paragraph 3, the period of time within which a benefit determination is required to be made will begin at the time a claim is filed in accordance with the Plan’s filing requirements, without regard to whether all the information necessary to make a benefit determination accompanies the filing.

		
	4.
	The claim reviewer on the benefits staff will provide the claimant with written or electronic notification of any adverse benefit determination.  Any electronic notification shall comply with the standards imposed by 29 CFR § 2520.104b-1(c)(i), (iii) and (iv).  The notification will set forth, in a manner calculated to be understood by the claimant:

		
	◦
	The specific reason(s) for the adverse determination;

		
	◦
	Reference to the specific Plan provisions on which the determination is based;

		
	◦
	A description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and

		
	◦
	A description of the Plan’s appeal (review) procedures and the time limits applicable to such procedures, including a statement of the claimant’s right to bring a civil action under ERISA § 502(a) following an adverse benefit determination on appeal.

		
	5.
	The claimant may appeal an adverse benefit determination to the:    

 
Ally Financial Inc.
Attn.:  ERISA Appeals Committee
500 Woodward Ave.
Detroit, MI 48226

The ERISA Appeals Committee will conduct a full and fair review of each appealed claim and its denial.  The claimant will have at least 60 days following receipt of a notification of an adverse benefit determination within which to appeal the determination.

		
	6.
	The appeal of an adverse benefit determination must be made in writing.  In connection with making such request, the claimant may submit written comments, documents, records, and other information relating to the claim for benefits.  The 

Page 17 of 19

claimant will be provided, free of charge upon written request, reasonable access to, and copies of, all documents, records and other information relevant (as defined in paragraph (k) below) to the claimant’s claim for benefits.  In considering the appeal, the ERISA Appeals Committee will take into account all comments, documents, records, and other information submitted by the claimant relating to the claim, without regard to whether such information was submitted or considered in connection with the initial benefit determination.

		
	7.
	The ERISA Appeals Committee will notify the claimant of the determination within a reasonable period of time, but not later than 60 days after receipt of the claimant’s appeal.  The ERISA Appeals Committee may determine that special circumstances (such as the need to hold a hearing) require an extension of time for processing the claim.  If the ERISA Appeals Committee determines that an extension of time is required, written notice of the extension will be furnished to the claimant prior to the termination of the initial 60-day period.  The extension notice will indicate the special circumstances requiring an extension of time and the date by which the appeal reviewer expects to render the determination on appeal.

		
	8.
	The period of time within which a benefit determination on appeal is required to be made begins when an appeal is filed in accordance with the Plan’s appeal filing requirements, without regard to whether all the information necessary to make a benefit determination on appeal accompanies the filing.  In the event that a period of time is extended as provided above due to a claimant’s failure to submit information necessary to decide an appeal of an adverse benefit determination, the period for making the benefit determination on appeal will be tolled from the date on which the notification of the extension is sent to the claimant until the date on which the claimant responds to the request for additional information.

		
	9.
	In the case of an adverse determination on appeal, the ERISA Appeals Committee will provide such access to, and copies of, documents, records, and other information described below as is appropriate.

		
	10.
	The ERISA Appeals Committee will provide a claimant with written or electronic notification of the Plan’s benefit determination on appeal.  Any electronic notification will comply with the standards imposed by 29 CFR § 2520.104b-1(c)(i), (iii) and (iv).  In the case of an adverse benefit determination on appeal, the notification will set forth, in a manner calculated to be understood by the claimant: 

		
	◦
	the specific reason(s) for the adverse determination;

		
	◦
	reference to the specific Plan provisions on which the benefit determination is based;

Page 18 of 19

		
	◦
	a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the Participant’s claim for benefits; and

		
	◦
	a statement of the claimant’s right to bring a civil action under ERISA § 502(a).

		
	11.
	A claimant must exhaust his or her rights to file a claim and to appeal an adverse benefit determination before bringing any civil action to recover benefits under the Plan, to enforce his or her rights under the terms of the Plan, or to clarify his or her rights to future benefits under the terms of the Plan.

		
	12.
	The ERISA Appeals Committee will exercise its responsibilities and authority under this claims procedure as a fiduciary and, in such capacity, will have the discretionary authority and responsibility to interpret and construe the Plan and any rules or regulations under the Plan, determine the eligibility of employees or former employees to participate in the Plan and receive benefits under the Plan, and make factual determinations in connection with any of the foregoing.  The ERISA Appeals Committee may, in its discretion, determine to hold a hearing or hearings in carrying out his or her responsibilities and authority under this claims procedure.

		
	13.
	Benefit claim determinations and decisions on appeals will be made in accordance with the Plan.  The Plan’s provisions will be applied consistently with respect to similarly situated Participants.  The ERISA Appeals Committee will maintain complete records of the proceedings in deciding claims and appeals.  

		
	14.
	 For the purposes of this claims procedure:

“Adverse benefit determination” means any of the following:  a denial, reduction, or termination of, or a failure to provide or make payment (in whole or in part) for, a benefit, including any such denial, reduction, termination, or failure to provide or make payment that is based on a determination of a claimant’s eligibility to participate in the Plan; and

a document, record, or other information is considered “relevant” to a claim if such document, record, or other information was relied upon in making the benefit determination, was submitted, considered, or generated in the course of making the benefit determination, without regard to whether such document, record, or other information was relied upon in making the benefit determination, or demonstrates compliance with the administrative processes and safeguards required above in making the benefit determination. 

Page 19 of 19Exhibit

Exhibit 10.8
Ally Financial Inc.

Ally Financial Inc.
500 Woodward Avenue, MC : MI-01-10-HR Detroit, MI 48226

<DATE>

<NAME>

Re:   Ally Financial Inc. Incentive Compensation Plan – PSU Award

Dear <FIRST NAME>:

		
	1.
	You have been granted an Award under the Ally Financial Inc. Incentive Compensation Plan (the “Plan”).  A copy of the Plan is included on the Solium website. Capitalized terms not defined in this Award Agreement will have the meaning set forth in the Plan.

		
	2.
	Your Award is granted to you as a matter of separate inducement and is not in lieu of salary or other compensation for your services. By accepting this Award, you consent to any and all Plan amendments, vesting restrictions, and revisions to any other term or condition of this Award Agreement that may be required to comply with federal law or regulation governing compensation, whether such amendments, restrictions, or revisions are applied prospectively or retroactively to this or prior Awards. By accepting this Award, you also acknowledge and agree that it is subject to all of the requirements set forth in the Enterprise Compensation Policy and that you are subject to all of the restrictive covenants set forth in Section 13 of the Plan (i.e., non-solicit, confidentiality, non-disparagement).

		
	3.
	Your Award is initially being made in the form of Performance Stock Units (“PSUs”). Your Award will vest 100% on the third anniversary of the Grant Date (the “Vesting Date”), subject to your continued employment with the Company or one of its Affiliates through the Vesting Date (or as otherwise set forth herein or in the Plan); provided, that the actual number of PSUs vesting and converting to Shares (such number of PSUs to be within a range of 0% to 150% of the number of the Target PSUs (as defined below)) (the “Adjusted PSUs”) shall be determined based on the achievement of the Performance Metrics (as defined in Exhibit A attached hereto) during the Performance Period (as defined below). For purposes of this Award Agreement, the “Performance Period” means the period commencing on January 1, 2019 and ending on December 31, 2021. Immediately following the end of the Performance Period, your Adjusted PSUs may, at the discretion of the Company, convert into a number of Shares of Restricted Stock equal to the number of Adjusted PSUs. Your Adjusted PSUs or Shares of Restricted Stock (as the case may be) will remain subject to your continued employment with the Company and its Affiliates through the Vesting Date and will be forfeited and cancelled if you do not remain employed with the Company and its Affiliates through the Vesting Date, except as otherwise explicitly provided below.  

Grant Date:    «Date»
Number of Target PSUs Granted: «Total_Shares» (“Target PSUs”)

		
	4.
	This Award Agreement will become effective after you have electronically accepted it via the Solium website. If you do not accept this Award Agreement within 45 days of notification, you will be deemed to have rejected the Award and this Award Agreement will be null and void and without any further force or effect. 

		
	5.
	Subject to requirements of any federal laws or regulations and Ally policy that govern compensation (see paragraph 2 above), and subject to the terms of the Plan and this Agreement, the Company will deliver the Shares earned with respect to the Adjusted PSUs or will remove the restrictions imposed on any Shares of 

Page 1 of 5
    

Restricted Stock delivered in respect of your Adjusted PSUs as of the Vesting Date, in accordance with paragraph 3 above. 

		
	6.
	If on the Grant Date you are considered a material risk taker (MRT), in connection with regulatory guidance and in support of its corporate governance principles, to the extent that any portion of the Award remains unpaid, Ally reserves the right to adjust downward the amount of this Award without your consent to reflect adverse outcomes attributable to inappropriate, excessive, or imprudent risk taking in which you participated and which was the basis for this Award. Your Award is also subject to cancellation, recovery, forfeiture, or repayment consistent with Ally’s recoupment policy contained in the Enterprise Compensation Policy.

		
	7.
	Sections 11 and 12 of the Plan provide for the treatment of Awards in the event of a Termination of Service or Change in Control; provided, however:

If you experience a Termination of Service without Cause by the Company or a Qualifying Termination (whether as a result of a Sale of your Business Unit or otherwise), in each case, other than in connection with a Change in Control, your unvested PSUs or Shares of Restricted Stock under this Award (as the case may be) will become nonforfeitable on the date of such Termination of Service and your Award will continue to be earned and vest in accordance with paragraph 3 of this Award Agreement based on the achievement of the Performance Metrics (even though you are not employed by the Company or one of its Affiliates on the Vesting Date) and will be settled as of the Vesting Date in accordance with paragraph 5 above; provided, however, that if, as of the Vesting Date, the number of Shares underlying the Adjusted PSUs or the number of Shares of Restricted Stock that you hold under this Award (as the case may be) exceeds the number of Shares underlying the Target PSUs (the number of such excess Shares, the “Above Target Shares”), then the number of Above Target Shares that will be delivered to you will be determined by multiplying (a) the number of Above Target Shares by (b) a fraction, (i) the numerator of which is the number of calendar days during the Performance Period prior the date your termination of employment and (ii) the denominator of which is the number of calendar days during the Performance Period and any PSUs or Shares under this Award in excess of this amount will be forfeited and cancelled (the “Excess Adjustment”).  
 
		
	8.
	If the Company pays a dividend on Shares prior to the Vesting Date, you will be entitled to a dividend equivalent payment in the same amount as the dividend you would have received if you held the number of Shares, if any, as earned and vested as of the Vesting Date. These dividends will vest and be paid to you on the Settlement Date (or such other vesting and settlement date applicable under paragraph 7 (above), subject to the vesting of your Award. No dividends or dividend equivalents will be paid to you with respect to any portion of your Award that is canceled or forfeited. The Company will decide on the form of payment and may pay dividends or dividend equivalents in Shares, in cash or in a combination thereof, subject to applicable law.  

 
		
	9.
	You will have no voting rights with respect to the Shares underlying your Award unless and until you become the record owner of the Shares underlying your Award.

		
	10.
	You may designate a beneficiary using the Solium website. If no beneficiary is designated, or if the Ally determines that the beneficiary designation is unclear or that the designated beneficiary cannot be located, any settlement as a result of your death will be made to your estate. The Solium website may also be used for any subsequent change in your beneficiary designation.

		
	11.
	The restrictions in Section 13(a) of the Plan on your ability to solicit any Ally client, customer, or employee for 24 months following your Termination of Service is grounded in Ally’s significant investment of time, effort, and expense in establishing client, customer, and employee relationships across Ally’s lines of business.  As this applies to you, the scope of the restriction on your ability to solicit Ally clients or customers will run commensurate with the scope of your responsibilities while employed by Ally.  That is, the terms “client or customer” as used in Section 13(a) (i.e., “(i) solicit any client or customer of the Company or any Affiliate with respect to a Competitive Activity”) shall  mean those clients or customers (whether current or prospective):  (i) with whom you had direct or indirect personal contact within the last 12 months of your employment with 

Page 2 of 5
    

Ally; or (ii) about whom you learned confidential or proprietary information (including trade secrets) by virtue of your employment with Ally during the last 12 months of your employment with Ally.  The term “solicit” also shall include any communication or other interaction between you and a client or customer (whether current or prospective) that takes place to make sales to, perform services for, or otherwise further the business relationship with that client or customer (whether current or prospective).  Notwithstanding Section 21 of the Plan, Section 13(a) is governed by Michigan law without regard to its conflict of laws provision.  An action to enforce or seek damages for breach of Section 13(a) may only be brought in a federal or state court of competent jurisdiction in Michigan.

		
	12.
	By accepting this Award, you understand and acknowledge that your Award is subject to the rules under Internal Revenue Code Section 409A, and agree and accept all risks (including increased taxes and penalties) resulting from Internal Revenue Code Section 409A.

		
	13.
	Except as prohibited by any federal law or regulation that governs compensation, see paragraph 2 above, your Award is subject to and governed by the terms and conditions of this Award Agreement and the Plan.  

		
	14.
	By accepting this Award, as evidenced by your signature below, you agree to abide by the terms and conditions of this Award Agreement and the Plan.

Sincerely yours,
                

                      Kathleen Patterson    
Chief HR Officer
«Date»

I HAVE READ THE PLAN DOCUMENT AND THIS AWARD AGREEMENT AND I ACCEPT THE AWARD REFERENCED ABOVE SUBJECT TO THE TERMS AND CONDITIONS OF THIS AWARD AGREEMENT AND THE ALLY FINANCIAL INC. INCENTIVE COMPENSATION PLAN. 

	
					
	 
	 
	 

	Participant Signature (Required)
	 
	Date (Required)

	 
	 
	 
	 
	 

	 
	 
	 

	Last Four Digits of SSN or National ID (Required)
	 
	 

Page 3 of 5
    

EXHIBIT A

PERFORMANCE METRICS

The number of Adjusted PSUs will be based on the Company’s achievement during the Performance Period of the Core ROTCE and TSV (each as defined below) performance metrics (collectively, the “Performance Metrics”), determined in accordance with the following formula:
	
							
	Number of Target PSUs
	x
	Core ROTCE Adjustment 
Percentage
	x
	50%
	=
	Number of  
Core ROTCE Adjusted PSUs

	
							
	Number of Target PSUs
	x
	TSV
 Adjustment 
Percentage
	x
	50%
	=
	Number of  
TSV Adjusted PSUs

	
					
	Number of Core ROTCE Adjusted PSUs
	+
	Number of TSV Adjusted PSUs
	=
	Number of  
Adjusted PSUs

The “ROTCE Adjustment Percentage” and the “TSV Adjustment Percentage” will each be derived as set forth in the tables below and any fractional Shares resulting from the application of the ROTCE Adjustment Percentage or TSV Adjustment Percentage, as applicable, will be rounded up.
	
					
	Core ROTCE
	 
	TSV

	3-Year Average Annual Core ROTCE Achievement Level
(%)
	ROTCE Adjustment Percentage 
(%)
	 
	3-Year Average Annual TSV Growth Rate Achievement Level
(%)
	TSV Adjustment Percentage 
(%)

	>15.50
	150
	 
	>15.00
	150

	13.51 – 15.50
	125
	 
	12.01 – 15.00
	125

	12.51 – 13.50
	100
	 
	9.01 – 12.00
	100

	10.51 – 12.50
	75
	 
	6.01 – 9.00
	75

	8.51 – 10.50
	50
	 
	3.01 – 6.00
	50

	< 8.51
	0
	 
	< 3.01
	0

The below listed definitions will apply for purposes of this Award Agreement. 
“Core ROTCE” means (i) Operating Net Income Available to Common divided by (ii) Normalized Common Equity. 
“Core Net Income Available to Common” means: (i) pre-tax income from continuing operations, minus (ii) income tax expense, plus (iii) expense associated with original issue bond discount amortization (net of tax), minus (d) preferred dividends, plus (e) the impact of any disclosed repositioning items (net of tax). 

Page 4 of 5
    

 

“Normalized Common Equity” means the three period average of: (i) shareholder equity, minus (ii) book value of preferred stock outstanding, minus (iii) goodwill and other intangibles, minus (iv) remaining original issue bond discount, minus (v) remaining net deferred tax asset. 
“Total Shareholder Value” or “TSV” means the sum of (i) Adjusted Tangible Book Value Per Share Growth, Year over Year, and (ii) Dividends Per Share. 
“Adjusted Tangible Book Value Per Share” means (i) Adjusted Tangible Book Value divided by (ii) end of period Shares outstanding.        
“Adjusted Tangible Book Value” means: (i) shareholder equity, minus (ii) book value of preferred stock outstanding, minus (iii) goodwill and other intangibles, minus (iv) remaining original issue bond discount (net of tax).
“End of Period Shares Outstanding” means the number of common shares (Shares) outstanding at the end of the period. 
“Dividend Per Share” means (i) the total annual dividend payout ($) per share divided by (ii) Average Adjusted Tangible Book Value Per Share.
“Total Annual Dividend payout ($) per Share” means (i)Total dollars paid for Common Dividends in the period divided by (ii) End of Period Shares Outstanding
“Average Adjusted Tangible Book Value per Share” means three period average of Adjusted Tangible Book Value.   
The goals in setting target levels for ROTCE and TSV are to align the interests of management with those of Ally’s shareholders, to incent forward-looking and sustained performance, and to drive balanced risk-taking. Ally and its shareholders would not be well served by rewarding or penalizing management for items that impact ROTCE or TSV but that would not further the achievement of these goals. As a result, for purposes of calculating ROTCE and TSV for a fiscal year, each of the following items shall be excluded to the extent such item is material and was not taken into account in establishing the target levels: 
(i)litigation and regulatory judgments, charges or settlements and any accruals or reserves relating to litigation or regulatory matters;  
(ii) the effect of changes in law applicable to Ally which shall be measured based on the effect of the changes on revenue, income, assets and liabilities demonstrably caused by such changes in law; 
(iii) the effect of changes in accounting principles, including any related accounting restatements; 
(iv) income, expenses, gains or losses from discontinued operations; 
(v) the charges and other costs and balance sheet impacts associated with any acquisition, divestiture,  restructuring or pre-payment or other early retirement of outstanding debt, and, in the case of an acquisition, any income or loss associated with the acquired business or assets during the same fiscal period; and
 (vi) any items that are categorized as unusual in nature or infrequently occurring within the meaning of GAAP. 
Adjustments for these excluded items will be made in a manner so that participants are neither penalized nor rewarded for these items. Adjustments for these excluded items will be applied formulaically consistent with principles historically applied and in a manner that will not trigger a modification or new measurement date with respect to any award under GAAP. 

Page 5 of 5
    

 

The Compensation, Nominating and Governance Committee of the Board of Directors of the Company shall have sole and exclusive authority and discretion to make all determinations and resolve all ambiguities, questions and disputes relating to the calculation of Core ROTCE and TSV and the level of earning and vesting of this Award.

Page 6 of 5

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