Document:

Exhibit
10.2

 

THIS
WARRANT AND THE COMMON STOCK ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT
AND THE COMMON STOCK ISSUABLE HEREUNDER MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT AS TO THIS WARRANT OR ANY SHARES ISSUABLE HEREUNDER UNDER SUCH ACT AND ANY APPLICABLE STATE SECURITIES
LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO SHARING ECONOMY INTERNATIONAL INC. OR ITS TRANSFER AGENT THAT SUCH REGISTRATION
IS NOT REQUIRED.

 

Sharing
Economy International Inc.

 

WARRANT
TO PURCHASE SHARES OF COMMON STOCK

 

1. Issuance.
For good and valuable consideration as set forth in the Purchase Agreement (as defined below), including without limitation the
Purchase Price (as defined in the Purchase Agreement), the receipt and sufficiency of which are hereby acknowledged by Sharing
Economy International Inc., a Nevada corporation (“Company”); Iliad
Research and Trading, L.P., a Utah limited partnership, its successors and/or registered assigns (“Investor”),
is hereby granted the right to purchase at any time on or after the Issue Date (as defined below) until the date which is the
last calendar day of the month in which the second anniversary of the Issue Date occurs (the “Expiration Date”),
134,328 fully paid and non-assessable shares (the “Warrant Shares”) of Company’s common stock, par value
$0.001 per share (the “Common Stock”), as such number may be adjusted from time to time pursuant to the terms
and conditions of this Warrant to Purchase Shares of Common Stock (this “Warrant”).

 

This
Warrant is being issued pursuant to the terms of that certain Securities Purchase Agreement dated April 20, 2018, to which Company
and Investor are parties (as the same may be amended from time to time, the “Purchase Agreement”). Certain
capitalized terms used herein are defined in Attachment 1 attached hereto and incorporated herein by this reference. Moreover,
to the extent any defined terms herein are defined in any other Transaction Document (as so noted herein), such defined term shall
remain applicable in this Warrant even if the other Transaction Document has been released, satisfied, or is otherwise cancelled.
This Warrant was issued to Investor on May 2, 2018 (the “Issue Date”).

 

2. Exercise
of Warrant.

 

2.1. General.

 

(a) This
Warrant is exercisable in whole or in part at any time and from time to time commencing on the Issue Date and ending on the Expiration
Date. Such exercise shall be effectuated by submitting to Company (either by delivery to Company or by email or facsimile transmission)
a completed and signed Notice of Exercise substantially in the form attached to this Warrant as Exhibit A (the “Notice
of Exercise”). The date a Notice of Exercise is either faxed, emailed or delivered to Company shall be the “Exercise
Date,” provided that, if such exercise represents the full exercise of the outstanding balance of this Warrant, Investor
shall tender this Warrant to Company within five (5) Trading Days thereafter, but only if the Warrant Shares to be delivered pursuant
to the Notice of Exercise have been delivered to Investor in accordance with the terms hereof. The Notice of Exercise shall be
executed by Investor and shall indicate (i) the number of Warrant Shares to be issued pursuant to such exercise, and (ii) if applicable
(as provided below), whether the exercise is a cashless exercise.

  

    	 	1	 

     

    

 

2.2. Exercise
Price.

 

(a) Notwithstanding
any other provision contained herein or in any other Transaction Document to the contrary, at any time prior to the Expiration
Date, Investor may elect a “cashless” exercise of this Warrant for any Warrant Shares, in which event the Company
shall issue to Investor a number of Warrant Shares computed using the following formula:

 

X
= Y (A-B)

A

 

WhereX
=the number of Warrant Shares to be issued to Investor.

 

		Y
                                         =	the
                                         number of Warrant Shares that the Investor elects to purchase under this Warrant (at
                                         the date of such calculation).

 

		A
                                         =	the
                                         average of the five (5) Closing Trade Prices for the five (5) days immediately prior
                                         to the date of exercise.

 

		B =	Exercise
Price (as adjusted to the date of such calculation).

 

(b) Upon
Company’s receipt of Notice of Exercise, Company shall promptly, but in no case later than the date that is five (5) Trading
Days following the Exercise Date (the “Delivery Date”), deliver or cause Company’s Transfer Agent to
deliver the applicable Warrant Shares electronically via the DWAC system to the account designated by Investor on the Notice of
Exercise. If for any reason Company is not able to so deliver the Warrant Shares via the DWAC system, then Company shall instead,
on or before the applicable date set forth above in this subsection, issue and deliver to Investor or its broker (as designated
in the Notice of Exercise), via reputable overnight courier, a certificate, registered in the name of Investor or its designee,
representing the applicable number of Warrant Shares. For the avoidance of doubt, Company has not met its obligation to deliver
Warrant Shares within the required timeframe set forth above unless Investor or its broker, as applicable, has actually received
the Warrant Shares (whether electronically or in certificated form) no later than the close of business on the latest possible
delivery date pursuant to the terms set forth above. Moreover, and notwithstanding anything to the contrary herein or in any other
Transaction Document, in the event Company or its Transfer Agent refuses to deliver any Warrant Shares to Investor on grounds
that such issuance is in violation of Rule 144 under the 1933 Act (as defined below) (“Rule 144”), Company
shall deliver or cause its Transfer Agent to deliver the applicable Warrant Shares to Investor with a restricted securities legend,
but otherwise in accordance with the provisions of this Section 2.2(c). In conjunction therewith, Company will also deliver to
Investor a written opinion from its counsel or its Transfer Agent’s counsel opining as to why the issuance of the applicable
Warrant Shares violates Rule 144.

 

(c) If
Warrant Shares are delivered later than as required under subsection (b) immediately above, Company agrees to pay, in addition
to all other remedies available to Investor in the Transaction Documents, a late charge equal to 2% of the product of (1) the
number of shares of Common Stock not issued to Investor on a timely basis and to which Investor is entitled multiplied by (2) the
Closing Trade Price of the Common Stock on the Trading Day immediately preceding the last possible date which Company could have
issued such shares of Common Stock to Investor without violating this Warrant, rounded to the nearest multiple of $100.00 (such
resulting amount, the “Warrant Share Value”) (but in any event the cumulative amount of such late fees for
each exercise shall not exceed 50% of the Warrant Share Value), per Trading Day until such Warrant Shares are delivered (the “Late
Fees”). Company acknowledges and agrees that the failure to timely deliver Warrant Shares hereunder is a material breach
of this Warrant and that the Late Fees are properly charged as liquidated damages to compensate Investor for such breach. Company
shall pay any Late Fees incurred under this subsection in immediately available funds upon demand; provided, however, that,
so long as the Note is outstanding, at the option of Investor, such amount owed may be added to the principal amount of the Note.

  

    	 	2	 

     

    

 

(d) Investor
shall be deemed to be the holder of the Warrant Shares (not including any Ownership Limitation Shares (as defined below)) issuable
to it in accordance with the provisions of this Section 2.1 on the Exercise Date.

 

2.3. Ownership
Limitation. Notwithstanding anything to the contrary contained in this Warrant or the other Transaction Documents, if at any
time Investor shall or would be issued shares of Common Stock, but such issuance would cause Investor (together with its affiliates)
to own a number of shares exceeding 9.99% of the number of shares of Common Stock outstanding on such date (the “Maximum
Percentage”), Company must not issue to Investor shares of Common Stock which would exceed the Maximum Percentage. The
shares of Common Stock issuable to Investor that would cause the Maximum Percentage to be exceeded are referred to herein as the
“Ownership Limitation Shares”. In such event, Company shall reserve the Ownership Limitation Shares for the
exclusive benefit of Investor. From time to time, Investor may notify Company in writing of the number of the Ownership Limitation
Shares that may be issued to Investor without causing Investor to exceed the Maximum Percentage. Upon receipt of such notice,
Company shall be unconditionally obligated to immediately issue such designated shares to Investor, with a corresponding reduction
in the number of the Ownership Limitation Shares. By written notice to Company, Investor may increase or waive the Maximum Percentage
as to itself but any such waiver will not be effective until the 61st day after delivery thereof. The foregoing 61-day notice
requirement is enforceable, unconditional and non-waivable and shall apply to all affiliates and assigns of Investor.

 

3. Mutilation
or Loss of Warrant. Upon receipt by Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of
this Warrant, and (in the case of loss, theft or destruction) receipt of reasonably satisfactory indemnification, and (in the
case of mutilation) upon surrender and cancellation of this Warrant, Company will execute and deliver to Investor a new Warrant
of like tenor and date and any such lost, stolen, destroyed or mutilated Warrant shall thereupon become void.

 

4. Rights
of Investor. Investor shall not, by virtue of this Warrant alone, be entitled to any rights of a stockholder in Company, either
at law or in equity, and the rights of Investor with respect to or arising under this Warrant are limited to those expressed in
this Warrant and are not enforceable against Company except to the extent set forth herein.

 

5. Other
Adjustments.

 

5.1. Capital
Adjustments. If Company shall at any time prior to the expiration of this Warrant subdivide the Common Stock, by split-up
or stock split, or otherwise, or combine its Common Stock, or issue additional shares of its Common Stock as a dividend, the number
of Warrant Shares issuable upon the exercise of this Warrant shall forthwith be automatically increased proportionately in the
case of a subdivision, split or stock dividend, or proportionately decreased in the case of a combination. Appropriate adjustments
shall also be made to the Exercise Price and other applicable amounts, but the aggregate purchase price payable for the total
number of Warrant Shares purchasable under this Warrant (as adjusted) shall remain the same. Any adjustment under this Section 5.1
shall become effective automatically at the close of business on the date the subdivision or combination becomes effective, or
as of the record date of such dividend, or in the event that no record date is fixed, upon the making of such dividend.

  

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5.2. Reclassification,
Reorganization and Consolidation. In case of any reclassification, capital reorganization, or change in the capital stock
of Company (other than as a result of a subdivision, combination, or stock dividend provided for in Section 5.1 above), then
Company shall make appropriate provision so that Investor shall have the right at any time prior to the expiration of this Warrant
to purchase, at a total price equal to that payable upon the exercise of this Warrant, the kind and amount of shares of stock
and other securities and property receivable in connection with such reclassification, reorganization, or change by a holder of
the same number of shares of Common Stock as were purchasable by Investor immediately prior to such reclassification, reorganization,
or change. In any such case appropriate provisions shall be made with respect to the rights and interest of Investor so that the
provisions hereof shall thereafter be applicable with respect to any shares of stock or other securities and property deliverable
upon exercise hereof, and appropriate adjustments shall be made to the purchase price per Warrant Share payable hereunder, provided
the aggregate purchase price shall remain the same.

 

6. Certificate
as to Adjustments. In each case of any adjustment or readjustment in the number or kind of shares issuable on the exercise
of this Warrant, or in the Exercise Price, pursuant to the terms hereof, Company at its expense will promptly cause its Chief
Financial Officer or other appropriate designee to compute such adjustment or readjustment in accordance with the terms of this
Warrant and prepare a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such
adjustment or readjustment is based, including a statement of (a) the consideration received or receivable by Company for any
additional shares of Common Stock issued or sold or deemed to have been issued or sold, (b) the number of shares of Common Stock
outstanding or deemed to be outstanding, and (c) the Exercise Price and the number of shares of Common Stock to be received upon
exercise of this Warrant, in effect immediately prior to such adjustment or readjustment and as adjusted or readjusted as provided
in this Warrant. Nothing in this Section 6 shall be deemed to limit any other provision contained herein.

 

7. Transfer
to Comply with the Securities Act. This Warrant and the Warrant Shares have not been registered under the Securities Act of
1933, as amended (the “1933 Act”). Neither this Warrant nor the Warrant Shares may be sold, transferred, pledged
or hypothecated without (a) an effective registration statement under the 1933 Act relating to such security or (b) an opinion
of counsel reasonably satisfactory to Company that registration is not required under the 1933 Act; provided, however,
that the foregoing restrictions on transfer shall not apply to the transfer of the Warrant to an affiliate of Investor. Until
such time as registration has occurred under the 1933 Act, each certificate for this Warrant and any Warrant Shares shall contain
a legend, in form and substance satisfactory to counsel for Company, setting forth the restrictions on transfer contained in this
Section 7; provided, however, that Company acknowledges and agrees that any such legend shall be removed from all certificates
for DTC Eligible Common Stock delivered hereunder as such Common Stock is cleared and converted into electronic shares by the
DTC, and nothing contained herein shall be interpreted to the contrary. Upon receipt of a duly executed assignment of this Warrant,
Company shall register the transferee thereon as the new holder on the books and records of Company and such transferee shall
be deemed a “registered holder” or “registered assign” for all purposes hereunder, and shall have all
the rights of Investor under this Warrant. Until this Warrant is transferred on the books of Company, Company may treat Investor
as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.

  

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8. Notices.
Any notice required or permitted hereunder shall be given in the manner provided in the subsection titled “Notices”
in the Purchase Agreement, the terms of which are incorporated herein by reference.

 

9. Supplements
and Amendments; Whole Agreement. This Warrant may be amended or supplemented only by an instrument in writing signed by the
parties hereto. This Warrant, together with the Purchase Agreement, contains the full understanding of the parties hereto with
respect to the subject matter hereof and thereof and there are no representations, warranties, agreements or understandings with
respect to the subject matter hereof and thereof other than as expressly contained herein and therein.

 

10. Purchase
Agreement; Arbitration of Disputes. This Warrant is subject to the terms, conditions and general provisions of the Purchase
Agreement, including without limitation the Arbitration Provisions (as defined in the Purchase Agreement) set forth as an exhibit
to the Purchase Agreement.

 

11. Governing
Law; Venue. This Warrant shall be construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of Utah, without
giving effect to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the State of Utah. The provisions set forth in the
Purchase Agreement to determine the proper venue for any disputes are incorporated herein by this reference.

 

12. Waiver
of Jury Trial. COMPANY IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO DEMAND THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR IN ANY WAY RELATED TO THIS WARRANT OR THE RELATIONSHIPS OF THE PARTIES HERETO BE TRIED BY JURY. THIS WAIVER
EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE, LAW, RULE OR REGULATION.
FURTHER, COMPANY ACKNOWLEDGES THAT IT IS KNOWINGLY AND VOLUNTARILY WAIVING ITS RIGHT TO DEMAND TRIAL BY JURY.

 

13. Remedies.
The remedies at law of Investor under this Warrant in the event of any default or threatened default by Company in the performance
of or compliance with any of the terms of this Warrant are not and will not be adequate and, without limiting any other remedies
available to Investor in the Transaction Documents, at law or equity, to the fullest extent permitted by law, such terms may be
specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a
violation of any of the terms hereof or otherwise without the obligation to post a bond.

 

14. Liquidated
Damages. Company and Investor agree that in the event Company fails to comply with any of the terms or provisions of this
Warrant, Investor’s damages would be uncertain and difficult (if not impossible) to accurately estimate because of the parties’
inability to predict future interest rates, future share prices, future trading volumes and other relevant factors. Accordingly,
Investor and Company agree that any fees or other charges assessed under this Warrant are not penalties but instead are intended
by the parties to be, and shall be deemed, liquidated damages (under Investor’s and Company’s expectations that any
such liquidated damages will tack back to the Issue Date for purposes of determining the holding period under Rule 144.

  

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15. Counterparts.
This Warrant may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be
an original, and all such counterparts shall together constitute but one and the same instrument. Signatures delivered via facsimile
or email shall be considered original signatures for all purposes hereof.

 

16. Attorneys’
Fees. In the event of any arbitration, litigation or dispute arising from this Warrant, the parties agree that the party who
is awarded the most money (which, for the avoidance of doubt, shall be determined without regard to any statutory fines, penalties,
fees, or other charges awarded to any party) shall be deemed the prevailing party for all purposes and shall therefore be entitled
to an additional award of the full amount of the attorneys’ fees and expenses paid by said prevailing party in connection
with arbitration or litigation without reduction or apportionment based upon the individual claims or defenses giving rise
to the fees and expenses. Nothing herein shall restrict or impair an arbitrator’s or a court’s power to award
fees and expenses for frivolous or bad faith pleading.

 

17. Severability.
Whenever possible, each provision of this Warrant shall be interpreted in such a manner as to be effective and valid under applicable
law, but if any provision of this Warrant shall be invalid or unenforceable in any jurisdiction, such provision shall be modified
to achieve the objective of the parties to the fullest extent permitted and such invalidity or unenforceability shall not affect
the validity or enforceability of the remainder of this Warrant or the validity or enforceability of this Warrant in any other
jurisdiction.

 

18. Time
is of the Essence. Time is expressly made of the essence with respect to each and every provision of this Warrant.

 

19. Descriptive
Headings. Descriptive headings of the sections of this Warrant are inserted for convenience only and shall not control or
affect the meaning or construction of any of the provisions hereof.

 

[Remainder
of page intentionally left blank; signature page follows]

  

    	 	6	 

     

    

 

IN
WITNESS WHEREOF, Company has caused this Warrant to be duly executed by an officer thereunto duly authorized as of the Issue Date.

 

	 	COMPANY:
	 	 
	 	Sharing Economy International Inc.
	 	 
	 	By:	 
	 	Printed Name:	 
	 	Title:	 

   

 

[Signature Page to Warrant]

 

     

     

    

 

ATTACHMENT
1

DEFINITIONS

 

For
purposes of this Warrant, the following terms shall have the following meanings:

 

A1.“Approved
Stock Plan” means any stock option plan which has been approved by the board of directors of Company and is in effect
as of the Issue Date, pursuant to which Company’s securities may be issued to any employee, officer or director for services
provided to Company.

 

A2.“Bloomberg”
means Bloomberg L.P. (or if that service is not then reporting the relevant information regarding the Common Stock, a comparable
reporting service of national reputation selected by Investor and reasonably satisfactory to Company).

 

A3.“Closing
Bid Price” and “Closing Trade Price” means the last closing bid price and last closing trade price,
respectively, for the Common Stock on its principal market, as reported by Bloomberg, or, if its principal market begins to operate
on an extended hours basis and does not designate the closing bid price or the closing trade price (as the case may be) then the
last bid price or last trade price, respectively, of the Common Stock prior to 4:00:00 p.m., New York time, as reported by
Bloomberg, or, if its principal market is not the principal securities exchange or trading market for the Common Stock, the last
closing bid price or last trade price, respectively, of the Common Stock on the principal securities exchange or trading market
where the Common Stock is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price
or last trade price, respectively, of the Common Stock in the over-the-counter market on the electronic bulletin board for the
Common Stock as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for the Common
Stock by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for the Common Stock
as reported by OTC Markets Group, Inc., and any successor thereto. If the Closing Bid Price or the Closing Trade Price cannot
be calculated for the Common Stock on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing Trade
Price (as the case may be) of the Common Stock on such date shall be the fair market value as mutually determined by Investor
and Company. If Investor and Company are unable to agree upon the fair market value of the Common Stock, then such dispute shall
be resolved in accordance with the procedures in the Purchase Agreement governing Calculations. All such determinations shall
be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period.

 

A4.
“DTC” means the Depository Trust Company or any successor thereto.

 

A5.“DTC
Eligible” means, with respect to the Common Stock, that such Common Stock is eligible to be deposited in certificate
form at the DTC, cleared and converted into electronic shares by the DTC and held in the name of the clearing firm servicing Investor’s
brokerage firm for the benefit of Investor.

 

A6.“DTC/FAST
Program” means the DTC’s Fast Automated Securities Transfer program.

 

A7.“DWAC”
means the DTC’s Deposit/Withdrawal at Custodian system.

 

A8.“DWAC
Eligible” means that (a) Company’s Common Stock is eligible at DTC for full services pursuant to DTC’s operational
arrangements, including without limitation transfer through DTC’s DWAC system, (b) Company has been approved (without revocation)
by the DTC’s underwriting department, (c) Company’s transfer agent is approved as an agent in the DTC/FAST Program,
(d) the Warrant Shares are otherwise eligible for delivery via DWAC; (e) Company has previously delivered all Warrant Shares to
Investor via DWAC; and (f) Company’s transfer agent does not have a policy prohibiting or limiting delivery of the Warrant
Shares via DWAC.

 

A9.“Exercise
Price” means $7.18 per share of Common Stock, as the same may be adjusted from time to time pursuant to the terms and
conditions of this Warrant.

 

A10.“Note”
means that certain Convertible Promissory Note issued by Company to Investor pursuant to the Purchase Agreement, as the same may
be amended from time to time, and including any promissory note(s) that replace or are exchanged for such referenced promissory
note.

 

A11.“Trading
Day” means any day the New York Stock Exchange is open for trading provided that for any cash payment to be made pursuant
to this Note, Trading Day shall exclude any day on which banks in Hong Kong do not generally open for business..

 

A12.“Transaction
Documents” means the Purchase Agreement, the Note, this Warrant, and all other documents, certificates, instruments
and agreements entered into or delivered in conjunction therewith, as the same may be amended from time to time.

 

A13.“VWAP”
means the volume-weighted average price of the Common Stock on the principal market for a particular Trading Day or set of Trading
Days, as the case may be, as reported by Bloomberg.

  

    [Attachment 1 to Warrant, Page 1]

     

    

 

EXHIBIT
A

 

NOTICE
OF EXERCISE OF WARRANT

 

		TO:	Sharing
Economy International Inc.

ATTN:
_______________

VIA
FAX TO: ( )______________ EMAIL: ______________

 

The
undersigned hereby irrevocably elects to exercise the right, represented by Warrant to Purchase Shares of Common Stock dated as
of May 2, 2018 (the “Warrant”), to purchase shares of the common stock, $0.001 par value (“Common
Stock”), of Sharing Economy International Inc., and tenders herewith payment in accordance with Section 2 of the Warrant,
as follows:

 

_______CASHLESS
EXERCISE:

 

Net
number of Warrant Shares to be issued to Investor: ______*

 

*
X = Y (A-B)

A

 

WhereX
=the number of Warrant Shares to be issued to Investor.

 

		Y
                                         =	the
                                         number of Warrant Shares that the Investor elects to purchase under this Warrant (at
                                         the date of such calculation).

 

		A
                            =	the
Closing Price (on the date two Trading Days prior to the Exercise Date).

 

		B
                            =	Exercise
Price (as adjusted to the date of such calculation).

 

Capitalized
terms used but not otherwise defined herein shall have the meanings ascribed to them in the Warrant.

 

It
is the intention of Investor to comply with the provisions of Section 2.2 of the Warrant regarding certain limits on Investor’s
right to receive shares thereunder. Investor believes this exercise complies with the provisions of such Section 2.2. Nonetheless,
to the extent that, pursuant to the exercise effected hereby, Investor would receive more shares of Common Stock than permitted
under Section 2.2, Company shall not be obligated and shall not issue to Investor such excess shares until such time, if ever,
that Investor could receive such excess shares without violating, and in full compliance with, Section 2.2 of the Warrant.

 

As
contemplated by the Warrant, this Notice of Exercise is being sent by email or by facsimile to the fax number and officer indicated
above.

 

If
this Notice of Exercise represents the full exercise of the outstanding balance of the Warrant, Investor will surrender (or cause
to be surrendered) the Warrant to Company at the address indicated above by express courier within five (5) Trading Days after
the Warrant Shares to be delivered pursuant to this Notice of Exercise have been delivered to Investor.

 

To
the extent the Warrant Shares are not able to be delivered to Investor via the DWAC system, please deliver certificates representing
the Warrant Shares to Investor via reputable overnight courier after receipt of this Notice of Exercise (by facsimile transmission
or otherwise) to:

  

     
Exhibit A to Warrant, Page 1

     

    

 

_____________________________________

_____________________________________

_____________________________________

  

	Dated:	 	 
	 	 
	 	 
	[Name of Investor]	 
	 	 
	By:	 	 

 

 

Exhibit A to Warrant, Page 2Exhibit

Amended & Restated
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
2012 Omnibus Incentive Plan

Form of Performance Share Award Agreement: Relative TSR
                        
You have been selected to receive a grant of Performance Shares under the Amended & Restated American Axle Manufacturing & Holdings, Inc. 2012 Omnibus Incentive Plan as stated below:

Participant: 
Grant Date: 
Number of Performance Shares (Target Award Opportunity): 
Performance Period:
Final Acceptance Date: 

THIS AWARD AGREEMENT (the “Agreement”), is made effective as of the Grant Date (shown above) between American Axle & Manufacturing Holdings, Inc., a Delaware corporation (the “Company”), and the Participant.

RECITALS:

A. The Company has adopted the Amended & Restated American Axle & Manufacturing Holdings, Inc. 2012 Omnibus Incentive Plan (the “Plan”). The Plan is incorporated in and made a part of this Agreement. Capitalized terms not defined in this Agreement have the same meanings as in the Plan; 
          
B. The Compensation Committee of the Board of Directors (the “Committee”) determined that it is in the best interests of the Company and its shareholders to grant the Award to the Participant under the terms of this Agreement and the Plan; and

C. The Participant shall have no rights related to this Award unless he or she accepts this Award before the close of business on the Final Acceptance Date (shown above). A Participant who receives this Agreement in paper format shall indicate acceptance by signing and delivering a copy of this Agreement to the Company. A Participant who receives this Agreement electronically through the Merrill Lynch website shall indicate acceptance as instructed at www.benefits.ml.com. The Final Acceptance Date may be modified, in the sole discretion of the Company, upon written request of the Participant.

The parties agree as follows:
    
1. Grant of the Award and Performance Period. The Company grants to the Participant, on the terms and conditions of this Agreement, a Performance Share award (the “Award”) with a target opportunity as specified above (the “Target Award Opportunity”), with each Performance Share corresponding to one Share (subject to adjustment pursuant to the Plan) for the Performance Period specified above.

2. Performance Measure and Performance Goals. The performance measure for this Award shall be the three-year total shareholder return (“TSR”) of the Company and each company (“Competitor Company”) that is identified as a member of the Company’s competitor peer group in the Company’s annual report to shareholders for the fiscal year of the Grant Date shown above, or as elsewhere disclosed by the Company pursuant to Regulation S-K of the Securities Exchange Act of 1934 (the “Competitor Peer Group”). The performance goal shall be based on the percentile rank of the Company’s three-year TSR relative to the distribution of the Competitor Companies’ three-year TSRs. 

3. Determination of TSR. 

(a) TSR for each Competitor Company and the Company shall be determined in accordance with the following formula. TSR shall be equal to the quotient of (i) divided by (ii), where 

(i) is equal to the sum of (x) and (y) where (x) is the difference between the “Beginning Stock Price” and the “Ending Stock Price”; and (y) is the sum of all dividends paid on one (1) Share during the Performance Period, provided that dividends shall be treated as reinvested at the end of each calendar quarter; and

(ii) is equal to the “Beginning Stock Price”.

(b) Definitions for purposes of determining TSR under paragraph 3(a) above include: 

(i) “Beginning Stock Price” shall mean the average closing price on the applicable stock exchange of one Share for the thirty (30) trading days immediately prior to the first day of the Performance Period; and

(ii) “Ending Stock Price” shall mean the average closing price on the applicable stock exchange of one Share for the thirty (30) trading days immediately prior to the last day of the Performance Period. 

4. Determination of Percentile Rank. The Company’s Percentile Rank shall be determined in accordance with the following rules:

(a) The Competitor Companies and the Company shall be ranked in descending order based on their respective TSRs (“Ranking Distribution”). 

(b) For purposes of developing the ordering provided in paragraph (a) above, any Competitor Company that filed for bankruptcy protection under the United States Bankruptcy Code during the Performance Period shall be assigned the lowest order and any Competitor Company that is acquired during the Performance Period shall be removed from the Competitor Peer Group and shall not be included in the ordering of Competitor Companies.

5. Payout Matrix. (a) Subject to paragraph 5(b) below, the Participant shall earn the percentage of the Target Award Opportunity that corresponds to the achieved performance goal for the Performance Period as set forth below:
	
			
	 
	 
	 

	Achieved Performance Goal
	3-Year Relative
 TSR Percentile Rank
	% of Target Award  
Opportunity Earned

	No Payout
	< [ ] Percentile
	0%

	Threshold
	[ ]Percentile
	[ ]%

	Target
	[ ] Percentile
	100%

	Maximum
	≤ [ ] Percentile
	[ ]% (capped)

The Company’s Percentile Rank shall be calculated as follows:

Percentile Rank  =               Company Rank              
 Total number of Competitor Companies
          including the Company

Linear interpolation shall be used to determine the percent of Target Award Opportunity earned above the Threshold or below the Maximum, in the event that the Company’s Percentile Rank does not fall directly on one of the ranks listed in the chart above.

(b) In the event the Company’s TSR for the Performance Period is less than zero, the percentage of the Target Award Opportunity earned shall be equal to the lesser of (i) the amount determined under paragraph 5(a) above or (ii) 50 percent.

6. Determination of the Award. Subject to the Plan and this Agreement, the number of Performance Shares earned by the Participant for the Performance Period shall equal the product of (a) and (b) where (a) is equal to the Participant’s Target Award Opportunity and (b) is equal to the percent of Target Award Opportunity earned as determined in Section 5 above. Performance below Threshold shall result in no payout to the Participant, and performance above Maximum shall result in a payout capped at the Maximum. The Committee shall have the sole authority to calculate the Participant’s earned Award.

7. Form and Timing of Award. Subject to the approval of the Committee, payment of the Participant’s earned Award, if any, shall be made in the following manner:

(a) Timing: Each Performance Share earned by the Participant pursuant to Section 6 shall be settled by payment of one Share. The Participant shall receive payment of his or her earned Performance Shares no later than the fifteenth (15th) day of the third month following the end of the Performance Period (“Payment Date”), provided that the Participant has been continuously employed by the Company through the end of the Performance Period, until and including the Payment Date.

(b) Impact of Employment Termination: If the Participant’s employment is terminated during the Performance Period due to death, Disability, or Retirement, or by the Company other than for Cause, then the Participant shall be entitled to be paid a pro rata Award, as determined under this subparagraph (b). The pro rata Award shall equal the product of (x) and (y) where (x) is the Award the Participant would have earned based on Target performance and (y) is a fraction, the numerator of which is the number of calendar months that the Participant was employed by the Company during the Performance Period (with any partial month counting as a full month for this purpose) and the denominator of which is the number of months in the Performance Period. Any payments shall be made as soon as is practical following such payment determination but no later than the fifteenth (15th) day of the third month following the end of the quarterly reporting period that includes the date of termination of the Participant’s employment.

(c) Impact of a Change in Control: Unless provided otherwise by the Committee prior to the date of the Change in Control, in the event of a Change in Control of the Company: 

(1) If a Successor so agrees, some or all outstanding Awards shall be assumed, or replaced with the same type of award with similar terms and conditions, by a Successor in the Change in Control transaction. If applicable, each Award that is assumed by a Successor shall be appropriately adjusted, immediately after such Change in Control, to apply to the number and class of securities that would have been issuable to a Participant upon the consummation of such Change in Control had the Award been earned immediately prior to such Change in Control, and other appropriate adjustments in the terms and conditions of the Award shall be made. Upon the termination of a Participant’s employment with a Successor in connection with or within twenty-four (24) months following the Change in Control for any reason other than an involuntary termination by a Successor for Cause or a voluntary termination by the Participant without Good Reason, all of the Participant’s Awards that are in effect as of the date of such termination shall be deemed earned in full (assuming the Target performance goals provided under such Award were met) effective on the date of such termination.

(2) To the extent a Successor in the Change in Control transaction does not assume the Awards or issue replacement awards as provided in Section 7(c)(1), then immediately prior to the date of the Change in Control all such Awards that are then held by Participants shall be cancelled in exchange for the right to receive the following:

(a) For all Performance Shares that are earned but not yet paid, a cash payment equal to the value of the Performance Shares; and

(b) For all Performance Shares for which the Performance Period has not expired, a cash payment equal to the product of (x) and (y) where (x) is the Award the Participant would have earned based on Target performance and (y) is a fraction, the numerator of which is the number of calendar months that the Participant was employed by the Company during the Performance Period (with any partial month counting as a full month for this purpose) and the denominator of which is the number of months in the Performance Period.

Any payments shall be made as soon as is practical following such payment determination but no later than the fifteenth (15th) day of the third month following the end of the quarterly reporting period that includes the date of the occurrence of a Change in Control.

(d) Forfeiture. Except as otherwise expressly stated in Sections 7(b) and 7(c), if the Participant’s employment with the Company terminates for any reason prior to the end of the Performance Period, then the Participant shall not be entitled to the payment of any Award hereunder.

(e) Definitions

(1) “Change in Control:” For purposes of this Agreement, the term “Change in Control” shall be deemed to have occurred when:

(a) Any person or entity, including a “group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (“Exchange Act”) other than the Company or a wholly-owned Subsidiary thereof or any employee benefit plan of the Company or any of its Subsidiaries, becomes the beneficial owner of the Company’s securities having 30% or more of the combined voting power of the then outstanding securities of the Company that may be cast for the election of Directors of the Company (other than as a result of an issuance of securities initiated by the Company in the ordinary course of business); or

(b) As the result of, or in connection with, any cash tender or exchange offer, merger or other business combination, sale of assets or contested election, or any combination of the foregoing transactions, less than a majority of the combined voting power of the then outstanding securities of the Company or any successor corporation or entity entitled to vote generally in the election of the Directors of the Company or such other corporation or entity after such transaction are held in the aggregate by the holders of the Company’s securities entitled to vote generally in the election of Directors of the Company immediately prior to such transaction; or

(c) During any period of two consecutive years, individuals who at the beginning of any such period constitute the Board cease for any reason to constitute at least a majority thereof, unless the election, or the nomination for election by the Company’s stockholders, of each Director of the Company first elected during such period was approved by a vote of at least two-thirds of the Directors of the Company then still in office who were Directors of the Company at the beginning of any such period; or

(d) The stockholders of the Company approve a plan of complete liquidation of the Company or the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a liquidation of the Company into a wholly owned subsidiary.

Notwithstanding the foregoing, to the extent that any Award constitutes a deferral of compensation subject to Section 409A (as defined in Section 19 below), and if that Award provides for a change in the time or form of payment upon a Change in Control, then no Change in Control shall be deemed to have occurred upon an event described in subsections (a), (b), (c) and (d) above, unless such event shall constitute a “change in ownership” or “change in effective control” of, or a change in the ownership of a substantial portion of the assets of the Company under Section 409A.

(2) “Disability:” For purposes of this Agreement, “Disability” shall be defined in the same manner as such term or a similar term is defined in the Company’s long-term disability plan applicable to the Participant; provided, however, that if the Participant is not covered under a long-term disability plan maintained by the Company, “Disability” shall mean either of the following:

(a) Inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or

(b) By reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering Employees of the Company.

(3) “Cause:” For purposes of this Agreement, "Cause" means (i) neglect of or willful and continuing refusal of the Participant to perform his or her duties with the Company (other than due to Disability), (ii) a breach of any non-competition or "no raid" covenants to which the Participant is subject, (iii) engaging in conduct which is demonstrably injurious to the Company, the Company’s subsidiaries or affiliates (including, without limitation, a breach of any confidentiality covenant to which the Participant is subject), or (iv) a conviction or plea of guilty or nolo contendere to a felony or a misdemeanor involving moral turpitude, dishonesty or theft, in each case as determined in the sole discretion of the Company. If an employment agreement between the Company and the Participant is in effect or a change in control plan or policy is in effect in which the Participant participates or to which such Participant is subject (including, without limitation, the AAM Executive Officer Change in Control Plan), "Cause" has the meaning, if any, defined therein.

(4) “Good Reason:” For purposes of this Agreement, "Good Reason" means any one or more of the following actions or omissions: (i) any material reduction in the Participant’s position, authority, duties or responsibilities following a Change in Control as compared to such level immediately prior to the Change in Control, (ii) any material reduction in a Participant’s annual base salary or bonus opportunity as in effect immediately prior to the Change in Control, or (iii) the relocation (other than by mutual agreement) of the office at which the Participant is to perform the majority of his or her duties following the Change in Control to a location more than 50 miles from the location at which the Participant performed such duties prior to the Change in Control; provided, however, that the Participant must provide the Company, or its Successor, with (a) forty-five (45) days advance notice of termination in writing and (b) notice of the conduct that is the basis for the potential Good Reason termination in writing within ninety (90) days of its initial existence, such notice shall describe the conduct the Participant believes to constitute Good Reason. The Company, or its Successor, shall have thirty (30) days to cure such conduct upon 

receipt of the notice of termination from the Participant. If the Company, or its Successor, cures the conduct that is the basis for the potential termination for Good Reason within such thirty (30) day period, the Participant’s notice of termination shall be deemed withdrawn. If the Participant does not give notice to the Company, or its Successor, within ninety (90) days after an event giving rise to Good Reason, the Participant’s right to claim Good Reason termination on the basis of such event shall be deemed waived.

If an employment agreement between the Company and the Participant is in effect or a change in control plan or policy is in effect in which the Participant participates or to which such Participant is subject (including, without limitation, the AAM Executive Officer Change in Control Plan), "Good Reason" has the meaning, if any, defined therein.

(5) “Retirement:” For purposes of this Agreement, “Retirement” means the Participant’s voluntary resignation at any time (i) after attaining age 65, or (ii) after attaining age 55 but prior to age 65 with ten or more years of continuous service with the Company.

8. Share Delivery. Delivery of any Shares in settlement of the Award shall be by book-entry credit to an account in the Participant’s name established by the Company with its transfer agent.

9. Recapitalization. In the event of any change in the capitalization of the Company such as a stock split or a corporate transaction such as any merger, consolidation, separation, or otherwise, the number of Performance Shares subject to this Agreement shall be equitably adjusted by the Committee, in its sole discretion, to prevent dilution or enlargement of rights.

10. Beneficiary Designation. The Participant may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under this Agreement is to be paid in case of his or her death before he or she receives any or all of such benefit. Each such designation shall revoke all prior designations by the Participant, shall be in a form prescribed by the Company, and will be effective only when delivered by the Participant in writing to the Corporate Human Resources Department of the Company during the Participant’s lifetime. In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate.

11. Shareholder Rights. Prior to the Payment Date, the Participant shall not have any rights as a shareholder of the Company in connection with this Award, unless and until the Shares are distributed to Participant. Following delivery of the Shares upon the Payment Date, the Participant shall have all rights as a shareholder with respect to such Shares.

12. No Right to Continued Employment or Further Awards. 
    
(a) Neither the Plan nor this Agreement shall be construed as (i) giving the Participant any right to continue in the employ of AAM and its subsidiaries or (iii) giving the Participant any right to be reemployed by the Company and its subsidiaries following any termination of employment. The termination of employment provisions in this Agreement only apply to the treatment of the Award as specified herein and shall not otherwise affect the Participant’s employment relationship. Nothing contained in this Agreement shall be deemed to constitute or create a contract of employment.

(b) The Company has granted the Award to the Participant in its sole discretion. The Awarad does not form part of the Participant’s employment contract, if any. Neither this Agreement nor the Plan confers on the Participant any right or entitlement to receive another Award, or any other similar award at any time in the future or in respect of any future period. The Award does not confer on the Participant any right or entitlement to receive compensation in any specific amount for any future fiscal year, and does not diminish in any way the Company's discretion to determine the amount, if any, of the Participant's compensation.

13. Transferability. 
    
(a) The Award shall not be transferable other than by will, the laws of descent and distribution, pursuant to a domestic relations order entered by a court of competent jurisdiction or to a Permitted Transferee for no consideration pursuant to the Plan. Any Award transferred to a Permitted Transferee shall be further transferable only by will, the laws of descent and distribution, pursuant to a domestic relations order entered by a court of competent jurisdiction, or, for no consideration, to another Permitted Transferee of the Participant. The Shares delivered to the Participant on the Payment Date shall not be subject to transfer restrictions and shall be fully paid, non-assessable and registered in the Participant’s name.

(b) Except as set forth in the Plan, a Participant’s rights under the Plan shall be exercisable during the Participant’s lifetime only by the Participant, or in the event of the Participant’s legal incapacity, the Participant’s legal guardian or representative.

14. Withholding.
 
(a) Except as provided in the following sentence, the Company or subsidiary (as applicable) shall have the power and right to deduct, withhold or collect such amounts from the Participant to satisfy any tax, social security contribution, payroll tax or other amount required by law or regulation to be withheld with respect to any taxable event arising in relation to the Performance Shares including by deducting from amounts due to the Participant at any time or by deducting a portion of the Shares having a Fair Market Value (measured as of the Payment Date) sufficient to cover the amount of any applicable federal, state, local and foreign withholding obligation from the total Shares earned from the Award. The Participant may elect to satisfy such withholding obligation with respect to the Performance Shares by remitting in advance of the Payment Date an amount sufficient to satisfy such tax withholding obligations. The amount to be withheld may relate to amounts due in more than one jurisdiction and in all cases shall be as determined by the Company or subsidiary in its discretion.

 (b) Regardless of any action by the Company with respect to any or all tax withholding (including social insurance contribution obligations, if any), the Participant acknowledges responsibility for payment of all such taxes and for filing any relevant documentation (including, without limitation, tax returns or reporting statements) that may be required in relation to the Award (including, without limitation, any such documentation related to the holding of shares or any bank or brokerage account, the subsequent sale of shaes or the receipt of any dividends). The Company makes no representations regarding the treatment of any tax withholding in connection with the Award. The Company makes no commitment to structure the terms of the Award to reduce or eliminate the Participant’s liability for such tax. 

15. Securities Laws. This Agreement shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required, or the Committee determines are advisable. The Participant agrees to take all steps the Company determines are necessary to comply with all applicable provisions of federal and state securities law in exercising Participant’s rights under this Agreement. The Committee may impose such restrictions on any Shares acquired by a Participant pursuant to the Award as it may deem necessary or advisable, under applicable federal securities laws, the requirements of any stock exchange or market upon which such Shares are then listed or traded or any blue sky or state securities laws applicable to such Shares. In addition, the Shares shall be subject to any trading restrictions, stock holding requirements or other policies in effect from time to time as determined by the Committee. Notwithstanding anything to the contrary in this Agreement, the Company shall not be obligated to issue or transfer any Shares pursuant to this Award if to do so violates or is not in compliance with any laws, rules or regulations of the United States or any other state or country having applicable jurisdiction.

16. Notices. Notice under this Agreement shall be addressed to the Company in care of its Secretary at the principal executive offices of the Company and to the Participant at the address appearing in the records of the Company for the Participant, or to either party at another address that the party designates in writing to the other. Notice shall be effective upon receipt.

17. Governing Law. The interpretation, performance and enforcement of the Award and this Agreement shall be governed by the laws of the State of Delaware without regard to principles of conflicts of law. To the extent any provision of this Agreement is held by a court of competent jurisdiction to be unenforceable or invalid for any reason, the remaining provisions of this Agreement shall remain in full force and effect.
 
18. Award Subject to Plan.

(a) The Award is granted subject to the Plan and to such rules and regulations the Committee may adopt for administration of the Plan. The Committee is authorized to administer, construe, and make all determinations necessary or appropriate to administer the Plan and this Agreement, all of which shall be binding upon the Participant.

(b) To the extent of any inconsistencies between the Plan and this Agreement, the Plan shall govern. This Agreement and the Plan constitute the entire agreement between the parties regarding the subject matter hereof. They supersede all other agreements, representations or understandings (whether oral or written, express or implied) that relate to the subject matter hereof.

(c) The Committee may terminate, amend, or modify or suspend the Plan and amend or modify this Agreement; provided, however, that no termination, amendment, modification or suspension shall materially and adversely affect the Participant’s rights under this Agreement, without the Participant’s written consent.

19. Section 409A. 

(a) The Award is not intended to provide for a “deferral of compensation” within the meaning of Section 409A of the U.S. Internal Revenue Code and the final rules promulgated thereunder (“Section 409A”) and shall be interpreted and construed in a manner consistent with that intent. If any provision of this Agreement or the Plan causes the Award to be subject to the requirements of Section 409A, or could otherwise cause the Participant to recognize income or be subject to the interest and penalties under Section 409A, then the provision shall have no effect or, to the extent practicable, the Committee may, in its sole discretion and without the Participant’s consent, modify the provision to (i) comply with, or avoid being subject to Section 409A, or to avoid the incurrence of any taxes, interest and penalties under Section 409A, and/or (ii) maintain, to the maximum extent practicable, the original intent and economic benefit to the Participant of the applicable provision without materially increasing the cost to the Company or contravening the provisions of Section 409A. This Section 19 does not create an obligation of the Company to modify the Plan or this Agreement and does not guarantee that the Award will not be subject to taxes, interest and penalties under Section 409A.

(b) If a Participant is a “specified employee” as defined under Section 409A and the Participant’s Award is to be settled on account of the Participant’s separation from service (for reasons other than death) and such Award constitutes “deferred compensation” as defined under Section 409A, then any portion of the Participant’s Award that would otherwise be settled during the six-month period commencing on the Participant’s separation from service shall be settled as soon as practicable following the conclusion of the six-month period (or following the Participant’s death if it occurs during such six-month period).

20. Recoupment. The Participant’s earned Award shall be subject to any clawback, recoupment or similar policy as permitted or mandated by applicable law, rules, regulations or any Company policy as enacted, adopted or modified from time to time.

21. Electronic Delivery. The Company may, in its sole discretion, deliver any documents related to current or future participation in the Plan by electronic means. By accepting this Award, the Participant consents to receive such documents by electronic delivery and to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company, including Merrill Lynch.

22. Personal Data Privacy. The Participant explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of the Participant’s personal data by and among, as applicable, the Company and its subsidiaries for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan. The Participant understands that the Company may hold certain personal information about the Participant, including, but not limited to, the Participant’s name, home address and telephone number, date of birth, social security number (or any other social or national identification number), salary, nationality, job title and Target Award Opportunity for the purpose of implementing, administering and managing the Participant’s Award (the “Data”). The Participant understands that the Data may be transferred to the Company or to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the Participant’s country or elsewhere, and that any recipient’s country may have different data privacy laws and protections than the Participant’s country. The Participant authorizes the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing the Participant’s participation in the Plan. Furthermore, the Participant acknowledges and understands that the transfer of the Data to the Company or to any third parties is necessary for the Participant’s participation in the Plan. The Participant may view the Data, request information about the storage and processing of Data, request any corrections to Data, or withdraw the consents herein (in any case, without cost to the Participant) by contacting Corporate Human Resources in writing. The withdrawal of any consent by the Participant may affect the Participant’s participation in the Plan. The Participant may contact Corporate Human Resources for further information about the consequences of any withdrawal of consents herein.

23. Headings. The headings of sections and subsections are included solely for convenience of reference and shall not affect the meaning of the provisions of this Agreement.

24. Successor. All obligations of the Company under the Plan and this Agreement, with respect to the Award, shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.

25. Signature in Counterparts. If delivered in paper format, this Agreement may be signed in counterparts. Each counterpart shall be an original, with the same effect as if the signatures were on the same instrument.

26. Enforceability. To the extent any provision of this Agreement is held by a court of competent jurisdiction to be unenforceable or invalid for any reason, the remaining provisions of this Agreement shall not be affected by such holding and shall continue in full force in accordance with their terms. 

27. Language. If the Participant has been provided with a copy of this Agreement, the Plan or any other document relating to this Award in a language other than English, the English language shall govern in the event of any inconsistency.

28. Waiver. No failure or delay by the Company to enforce any provision of this Agreement or exercise any right or remedy provided by law shall constitute a waiver of that or any other provision, right or remedy, nor shall it prevent or restrict the further exercise of that or any other provision, right or remedy. No single or partial exercise of such provision, right or remedy shall prevent or restrict the further exercise of that or any other provision, right or remedy.  

29. Foreign Exchange Restrictions. The Participant understands and agrees that neither the Company or its subsidiaries are responsible or liable for (i) any foreign exchange fluctuations between the Participant’s local currency (if applicable) and the United States Dollar (or the selection by the Company or a subsidiary of any applicable foreign exchange rate it may determine in its discretion to be appropriate) that may affect the value of this Award or the calculated income, taxes or other amounts thereunder or any related taxes or other amounts or (ii) any decrease in the value of Shares.  

30. Appendix. Notwithstanding anything in this Agreement to the contrary, if the Participant resides outside of the United States, certain additional terms and conditions in the attached appendix (the “Appendix”) will apply to the Participant and the Award. If the Participant relocates from the United States to a country outside the United States or relocates between the jurisdictions specified in the Appendix, the additional terms and conditions, as applicable, will apply to the Participant, to the extent that the Committee determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan. The Appendix constitutes part of this Agreement.
 

                 AMERICAN AXLE & MANUFACTURING 
HOLDINGS, INC.

By:    __________________________________
Authorized Signatory

Agreed and acknowledged as of 
the date of grant:

___________________________________
(Participant’s signature)

APPENDIX 
COUNTRY SPECIFIC NOTICES, TERMS AND CONDITIONS

The following country-specific notices, disclaimers, and/or terms and conditions apply to grantees in the countries listed below and may be material to the Participant’s participation in the Plan. Such information may apply if the Participant resides or works in, or moves to or otherwise becomes subject to the laws or Company policies of, a particular country while holding Awards or Shares received under the Plan. In any such case, the Company may also withhold or account for tax or related liabilities in more than one jurisdiction. The Participant is solely responsible for any obligations outlined below. As local laws are often complex and change frequently and the information provided is general in nature and may not apply to the Participant’s specific situation, the Company cannot assure the Participant of any particular result, and the Participant should seek his or her own professional legal and tax advice.

Securities Law Notice: Unless otherwise noted, neither the Company nor the Shares is registered with any local stock exchange or under the control of any local securities regulator outside the United States. The Plan, grant documentation, and any other communications or materials that the Participant may receive regarding participation in the Plan do not constitute advertising or an offering of securities outside the United States, and do not constitute a public offer. The issuance of securities described in any Plan-related documents is not intended for public offering or circulation in the Participant’s jurisdiction. 

		
	European Union
	Data Privacy

The following supplements the Personal Data Privacy section of the Agreement:

For purposes of European Union data protection laws, American Axle & Manufacturing Holdings, Inc. with registered office at One Dauch Drive, Detroit, Michigan, MI 48211-1198, USA is the data controller. Providing personal data is voluntary but necessary to be a beneficiary of the Plan. Any personal data provided will be held only as long as is necessary to implement, administer and manage the Participant’s participation in the Plan. The Participant has a right to access and rectify his or her data and request additional information about the storage and processing of the Participant’s data, without cost, in accordance with European Union data protection law. The Participant also has the right to refuse or withdraw the consents herein.

Brazil            Foreign asset reporting
Rules regarding the reporting of assets (including shares) held outside Brazil may apply to Shares received upon vesting.

Exchange Control Notification
Specific foreign exchange rules may apply to the repatriation of any funds received in respect of the Shares.

		
	China
	Exchange Control Notification

Specific foreign exchange rules may apply to the repatriation of any funds received in respect of the Shares.

		
	Czech Republic
	Please refer to the European Union section above.

		
	France
	Foreign asset reporting

Rules regarding the reporting of assets (including shares) held outside France may apply to Shares received upon vesting.

Please refer to the European Union section above.

Germany        Please refer to the European Union section above.

India            Exchange Control Notification
Rules regarding the repatriation of proceeds from the sale of shares and dividends may apply to Shares received upon vesting.

Mexico        Acknowledgment of terms of the Agreement

In accepting the Award, the Participant acknowledges that he or she has reviewed the terms and conditions contained in this Agreement and the Plan, fully understands and agrees with them, and in particular expressly confirms that the Participant’s participation in the Plan is voluntary and does not constitute an acquired right, and that the Plan and participation in the Plan are offered by the Company on a wholly discretionary basis.

Spain            Foreign asset reporting
Rules regarding the reporting of assets (including shares) held outside Spain may apply to Shares received upon vesting.

Please also refer to the European Union section above.

Sweden        Please refer to the European Union section above.

United Kingdom    Tax Withholding

In addition to Section 14. Withholding of the Agreement, the Participant acknowledges and agrees that the ultimate responsibility to pay any tax, social security contributions, payroll tax or other amounts (“Taxes Due”) required by law or regulation to be withheld with respect to any taxable event arising in relation to the Award, such as on settlement of the Award, is the Participant’s responsibility, and the Participant agrees to indemnify and hold the Company and the Participant’s employer harmless from any losses, costs, damages, or expenses relating to the Taxes Due. The Participant agrees that the Company and/or the employer may recover the Taxes Due from the Participant by any of the means specified in Section 11 of the Agreement or the Plan.

Please also refer to the European Union section above.

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