Document:

Exhibit

2014-2016 PERFORMANCE STOCK UNITS    
(HORIZON EMPLOYEES)

HORIZON RESTRICTED STOCK UNITS 
(CONVERTED IN CONNECTION WITH THE ADJUSTMENT OF  
TRIMAS 2014-2016 PERFORMANCE STOCK UNITS)
July 6, 2015
Introduction
Effective June 30, 2015, the Cequent business of TriMas Corporation (“TriMas”) was separated from TriMas through a spinoff of that business to TriMas’ stockholders, which resulted in the distribution of 100% of TriMas’ interest in Horizon Global Corporation (“Horizon”) to holders of shares of TriMas’ common stock (the “Spin-Off”).  Horizon is now an independent, publicly traded company.  For more information about the Spin-Off, please refer to the prospectus filed as part of the Registration Statement on Form S-1 originally filed by Horizon with the U.S. Securities and Exchange Commission on March 31, 2015, as amended (the “Prospectus”).  The Prospectus is available online at www.sec.gov/edgar/searchedgar/companysearch.html.
As a result of the Spin-Off, the 2014-2016 performance stock unit award outstanding as of the Spin-Off and granted by TriMas to you (the “2014 TriMas PSU Award”) pursuant to the terms of the TriMas Corporation 2011 Omnibus Incentive Compensation Plan (the “TriMas Equity Plan”) and related grant agreement (the “2014 TriMas PSU Agreement”) in 2014 was converted into a restricted stock units award covering Horizon common stock, par value $0.01 per share, as of the date of, and immediately prior to, the effective time of the Spin-Off, as follows (a “2014 Horizon Replacement RSU Award”):
		
	▪
	The relative achievement of the Performance Goals (as described on Appendix A to the 2014 TriMas PSU Agreement) applicable to the 2014 TriMas PSU Award, and thus the number of performance stock units that were earned under such 2014 TriMas PSU Award, was determined as of the date of the Spin-Off (rather than at the end of the Performance Period) and was pro-rated based on the percentage of the Performance Period completed as of the date of the Spin-Off; and

		
	▪
	The earned portion of the 2014 TriMas PSU Award was then converted into a restricted stock units award covering a number of shares of Horizon common stock to account for the effect of the Spin-Off in a manner intended to retain the same intrinsic value (subject to rounding) immediately after the Spin-Off that the earned portion of the original 2014 TriMas PSU Award had immediately prior to the Spin-Off, as reflected on the Fidelity Investments website at www.netbenefits.fidelity.com and as further described in the Prospectus.

These adjustments were made by TriMas’ Compensation Committee under the terms of the TriMas Equity Plan.
Terms of 2014 Horizon Replacement RSU Award
Each 2014 Horizon Replacement RSU Award is issued under the Horizon Global Corporation 2015 Equity and Incentive Compensation Plan (the “Horizon Equity Plan”) as an Adjusted Award (as defined in the Horizon Equity Plan).  Although issued under the Horizon Equity Plan, each 2014 Horizon Replacement RSU Award continues to be subject 

to terms and conditions substantially similar to the terms and conditions applicable to the corresponding 2014 TriMas PSU Award which it replaced, including the terms of the TriMas Equity Plan under which the 2014 TriMas PSU Award was granted, except to the extent that such terms are rendered inoperative or modified by the Spin-Off (and transactions and events reasonably associated therewith, including as described in the Prospectus) and as described below.  Accordingly, for purposes of the Horizon Equity Plan and each 2014 Horizon Replacement RSU Award, the related 2014 TriMas PSU Agreement, the operative terms of the TriMas Equity Plan and this document constitute the Evidence of Award and such documents are collectively referred to herein as a “2014 Horizon Replacement RSU Agreement.”
Generally, each 2014 Horizon Replacement RSU Award (and the related 2014 Horizon Replacement RSU Agreement) differs from the related 2014 TriMas PSU Award that it replaced in that each 2014 Horizon Replacement RSU Award (1) represents the right to receive shares of Horizon common stock upon the satisfaction of service-based vesting criteria set forth in this document, and (2) has otherwise been deemed modified to the extent necessary to reflect the fact that you provide services to Horizon or its subsidiaries or affiliates (and not TriMas or its subsidiaries or affiliates) and the issuer of the common stock underlying the award is Horizon (and not TriMas).  For the avoidance of doubt, the transfer of your employment to Horizon or its subsidiaries or affiliates in connection with the Spin-Off alone will not constitute a Qualifying Termination for purposes of the 2014 TriMas PSU Agreement.
In particular, the 2014 Horizon Replacement RSU Award differs from 2014 TriMas PSU Award which it replaced including in the following ways:
		
	1.
	The 2014 Horizon Replacement RSU Award was converted into a service-based restricted stock units award covering Horizon common stock, which means that the award represents the right to receive a specified number of shares of Horizon common stock and any dividend rights with respect thereto (if applicable) upon the satisfaction of the service-based vesting criteria set forth in this document, but it is no longer subject to the achievement of the Performance Goals.

		
	2.
	References to “Performance Stock Units” or “PSUs” in the 2014 TriMas PSU Agreement are deemed references to “Restricted Stock Units” or “RSUs,” respectively, and references to shares of TriMas common stock will be deemed references to Horizon common stock, as applicable.

		
	3.
	Any references to a “Performance Period,” “performance conditions,” “performance measures,” “Performance Goals” or “performance goals,” and any modification of the number of shares subject to the award based on the same, are deemed no longer applicable with respect to the 2014 TriMas PSU Agreement, and Appendix A to the 2014 TriMas PSU Agreement and any references thereto are deemed deleted in their entirety.  For the avoidance of doubt, any references in the 2014 TriMas PSU Agreement regarding the concept of “earning” an award (as distinguished from vesting in an award) will not apply to the 2014 Horizon Replacement RSU Award.

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	4.
	Instead of vesting on the Settlement Date, your 2014 Horizon Replacement RSU Award will vest in full on March 5, 2017, provided that you continue to be a Service Provider through such date.  Accordingly, any unvested restricted stock units subject to the 2014 Horizon Replacement RSU Award will be cancelled and forfeited if you terminate as a Service Provider prior to March 5, 2017, except as otherwise provided in this document.

		
	5.
	Where the context requires, references in the 2014 TriMas PSU Agreement and TriMas Equity Plan to TriMas or its subsidiaries or affiliates (or their policies or administrative entities) are deemed references to Horizon or its subsidiaries or affiliates (or their policies or administrative entities), as applicable.

		
	6.
	References in the 2014 TriMas PSU Agreement to Rieke Packaging Systems Limited are deemed references to C P Witter Ltd.

		
	7.
	In furtherance of the adjustments described above, Sections II.A.5 through II.A.7 of the 2014 TriMas PSU Agreement are deemed amended as set forth in Appendix A attached to this document.

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Appendix A
Sections II.A.5 through II.A.7 of the 2014 TriMas PSU Agreement are deemed deleted in their entirety and replaced with the following:
“5.  Termination of Services.
(a)    Any unvested RSUs subject to this Award will be forfeited if, prior to March 5, 2017, Grantee voluntarily terminates as a Service Provider, or if Grantee’s status as a Service Provider is terminated by the Corporation for any reason (other than death, Disability, or Retirement).
(b)    Notwithstanding the foregoing, if Grantee ceases to be a Service Provider prior to March 5, 2017 as a result of Grantee’s Qualifying Termination, Grantee shall vest in a pro-rata portion of the number of RSUs, if any, that are subject to the Award as specified on the Fidelity Investments website at www.netbenefits.fidelity.com (the “Replacement RSUs”).  The pro-rata percentage of the number of Replacement RSUs to be settled under Section II.A.7 shall be equal to (x) the number of Replacement RSUs, multiplied by (y) a fraction (not greater than 1), the numerator of which is the number of full calendar months Grantee was employed by or rendering services for the Corporation (or, prior to July 1, 2015, for TriMas Corporation) from January 1, 2014 through the date of Grantee’s termination, and the denominator of which is 36.
(c)    Notwithstanding the foregoing, if Grantee ceases to be a Service Provider prior to March 5, 2017 as a result of Grantee’s Disability, the Replacement RSUs shall become fully vested on the date of such cessation of service.
(d)    Notwithstanding the foregoing, if Grantee ceases to be a Service Provider prior to March 5, 2017 as a result of Grantee’s death, the Replacement RSUs shall immediately become fully vested as of the date of Grantee’s death.
(e)    If Grantee ceases to be a Service Provider as a result of Grantee’s Retirement, the Committee may, in its discretion, permit Grantee to vest in a pro-rata portion of the Replacement RSUs, with the pro-rata percentage of the number of Replacement RSUs that vest on the date of such cessation of service due to Retirement determined in accordance with subsection (b) of this Section II.A.5.
(f)        Any Replacement RSUs that do not vest in accordance with this Section II.A.5. shall terminate and be forfeited as of the date of Grantee’s termination. Further, the Corporation retains the right to accelerate the vesting (but not the time of payment) of all or a portion of the Replacement RSUs subject to this Award, in which event a similar pro-ration determination as provided in this Section II.A.5 will be applied.
6.  Change of Control.  Notwithstanding anything set forth herein to the contrary, if Grantee ceases to be a Service Provider due to Grantee’s Qualifying 

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Termination within two years after a “Change of Control” (as defined in Appendix B) and prior to March 5, 2017 (a “CIC Qualifying Termination”), the Replacement RSUs shall immediately become fully vested as of the date of such CIC Qualifying Termination.  
7.  Determination of RSUs Vested; Settlement.  This Award shall be settled by issuing to Grantee the number of shares of Stock subject to the Replacement RSUs that are vested and Grantee’s name shall be entered as the shareholder of record on the books of the Corporation with respect to such shares. This settlement shall occur between March 5, 2017 and March 15, 2017 (the “Settlement Date”).  Any unvested Replacement RSUs will be canceled and forfeited.  In all circumstances, the number of Replacement RSUs that vest will be rounded down to the nearest whole RSU, unless otherwise determined by the Committee.”

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2014 Award
Performance Stock Units

TRIMAS CORPORATION
2011 OMNIBUS INCENTIVE COMPENSATION PLAN
PERFORMANCE STOCK UNIT AGREEMENT

TriMas Corporation (“Corporation”), as permitted by the TriMas Corporation 2011 Omnibus Incentive Compensation Plan, as amended (“Plan”), grants to the individual listed below (“Grantee”), the opportunity to earn Performance Stock Units (“PSUs”) in the amount designated in this Performance Stock Unit Agreement (“Agreement”), subject to the terms and conditions of the Plan and this Agreement.
Unless otherwise defined in this Agreement or in Appendices A or B to this Agreement, the terms used in this Agreement have the same meaning as defined in the Plan; provided, however, that, as permitted by Section 10.1 of the Plan, the PSUs granted under this Agreement consist solely of Restricted Stock Units (with performance conditions) under the Plan.  The term “Service Provider” as used in this Agreement means an individual actively providing services to the Corporation or a Subsidiary or Affiliate of the Corporation.  
I.    NOTICE OF PSU AWARD
	
		
	Grantee:
	[specify Grantee’s name]

	Date of Agreement:
	March 5, 2014

	Grant Date:
	March 5, 2014

	Number of PSUs in Award:
	[number of shares] (“Target”), subject to addition or subtraction as set forth on Appendix A depending on achievement of performance goals

	Performance Period:
	Beginning on January 1, 2014, and continuing through December 31, 2016

	Settlement Method:
	Earned and vested PSUs will be settled by delivery of one share of Stock for each PSU being settled

II.    AGREEMENT
A.    Grant of PSUs.  The Corporation grants to Grantee (who, pursuant to this Award is a Participant in the Plan) the number of PSUs set forth above, subject to adjustment as provided otherwise in this Agreement (this “Award”).  The PSUs granted under this Agreement are payable only in shares of Stock.  Notwithstanding anything to the contrary anywhere else in this Agreement, the PSUs in this Award are subject to the terms and provisions of the Plan, which are incorporated by reference into this Agreement.

1.    Vesting.  Except as otherwise designated in this Agreement, Grantee must be a Service Provider on the Settlement Date (as such term is defined in Section II.A.7 below) to be eligible to vest in, and earn, any PSUs, and any unvested PSUs subject to this Award will be canceled and forfeited if Grantee terminates as a Service Provider prior to the Settlement Date.  Any PSUs that remain unearned after the “Determination Date” (as such term is defined in Appendix A) will be cancelled and forfeited.
2.    Performance Goals to Earn PSUs.  Grantee will only receive shares of Stock related to, and to the extent that such shares are earned pursuant to, the “Performance Goals” specified in Appendix A to this Agreement.
3.    Rights of Grantee.  This Award does not entitle Grantee to any ownership interest in any actual shares of Stock unless and until such shares of Stock are issued to Grantee pursuant to the terms of the Plan.  Since no property is transferred until the shares of Stock are issued, Grantee acknowledges and agrees that Grantee cannot and will not attempt to make an election under Section 83(b) of the Code to include the fair market value of the PSUs in Grantee’s gross income for the taxable year of the grant of this Award.  Until shares of Stock are issued to Grantee in settlement of earned and vested PSUs under this Award, Grantee will have none of the rights of a stockholder of the Corporation with respect to the shares of Stock issuable in settlement of the PSUs, including the right to vote the shares of Stock, but Grantee will be eligible to receive dividends declared with respect to such PSUs, which will be paid to Grantee on the Settlement Date with respect to the number of shares of Stock delivered to Grantee on the Settlement Date.  Shares of Stock issuable in settlement of PSUs will be delivered to Grantee on the Settlement Date in book entry form or in such other manner as the Committee may determine.
4.    Adjustments.  The Stock to which the PSUs covered by this Award relate will be subject to adjustment as provided in Section 17 of the Plan.
5.    Termination of Services.  
(a)     Any unvested PSUs subject to this Award will be forfeited if, prior to the Settlement Date, Grantee voluntarily terminates as a Service Provider, or if Grantee’s status as a Service Provider is terminated by the Corporation for any reason (other than death, Disability, or Retirement). 
(b)     Notwithstanding the foregoing, if Grantee ceases to be a Service Provider during the performance period specified in the table above (the “Performance Period”) as a result of Grantee’s Qualifying Termination, Grantee shall receive a pro-rata portion of the number of PSUs, if any, that are earned under Section II.A.2 due to the achievement of one or more performance measures specified in Appendix A during the Performance Period.  The pro-rata percentage of the number of PSUs to be earned and settled under Section II.A.7 shall be equal to (x) the amount determined under Section II.A.2 above at the end of the Performance Period, multiplied by (y) a fraction (not greater than 1), the numerator of which is the number of full calendar months Grantee was employed or rendering services from the beginning of the Performance Period through the date of Grantee’s termination, and the denominator of which is 36.  

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(c)    Notwithstanding the foregoing, if Grantee ceases to be a Service Provider during the Performance Period as a result of Grantee’s Disability, the Grantee’s PSUs shall become fully vested at the end of the Performance Period based on the number of PSUs that would have been actually earned due to the achievement of one or more performance measures specified in Appendix A, assuming Grantee had continued to be a Service Provider through the end of the Performance Period.
(d)    Notwithstanding the foregoing, if Grantee ceases to be a Service Provider during the Performance Period as a result of Grantee’s death, the Grantee’s PSUs shall immediately become fully vested based on the Target number set forth in “Number of PSUs in Award” in Section I.
(e)     If Grantee ceases to be a Service Provider as a result of Grantee’s Retirement, the Committee may, in its discretion, permit Grantee to receive a pro-rata portion of the number of PSUs specified in Section I above, with the pro-rata percentage of the number of PSUs to be vested to be determined in accordance with subsection (b) of this Section II.A.5.  
(f)     Any PSUs that are not earned and do not vest in accordance with this Section II.A.5. shall terminate and be forfeited as of the date of Grantee’s termination.  Further, the Corporation retains the right to accelerate the vesting (but not the time of payment) of all or a portion of the PSUs subject to this Award, in which event a similar pro-ration determination as provided in this Section II.A.5 will be applied.
6.     Change of Control.  Notwithstanding anything set forth herein to the contrary, if Grantee ceases to be a Service Provider due to Grantee’s Qualifying Termination within two years after a “Change of Control” (as defined in Appendix B), the number of PSUs subject to the Award that shall become vested and non-forfeitable shall equal (x) the Target number set forth in “Number of PSUs in Award” in Section I, less (y) the number of PSUs that had already become vested as of the date of such termination, but in no event may negative discretion be exercised with respect to the number of PSUs awarded.  Any PSUs that are not earned and do not vest in accordance with the foregoing sentence shall terminate and be forfeited.
7.    Determination of PSUs Earned and Vested; Settlement.  Subject to Section II.A.6, upon the Committee’s certification of achievement of the Performance Goals described in Appendix A, and Grantee’s satisfaction of the vesting requirements in Section II.A.1 and Section II.A.5 above, as applicable, this Award shall be settled by issuing to Grantee the number of shares of Stock determined pursuant to Appendix A and Grantee’s name shall be entered as the shareholder of record on the books of the Corporation with respect to such shares.  This settlement shall occur as soon as practicable following the end of the Performance Period, but in no event later than the March 15th following such Performance Period (the “Settlement Date”).  Any unearned PSUs will be canceled and forfeited.  In all circumstances, the number of PSUs earned or vested will be rounded down to the nearest whole PSU, unless otherwise determined by the Committee.
B.    Other Terms and Conditions.

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1.    Non-Transferability of Award.  Except as described below, this Award and the PSUs subject to this Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution.  Notwithstanding the foregoing, with the consent of the Committee in its sole discretion, Grantee may assign or transfer this Award and its underlying PSUs to a trust or similar vehicle for estate planning purposes (the “Permitted Assignee”), provided that any such assigned PSUs shall remain subject to all terms and conditions of the Plan and this Agreement, and the Permitted Assignee executes an agreement satisfactory to the Corporation evidencing these obligations.  The terms of this Award are binding on the executors, administrators, heirs, successors and assigns of Grantee.
2.    Withholding.  Grantee authorizes the Corporation to withhold from the shares of Stock to be delivered in respect of the PSUs as payment the amount needed to satisfy any applicable minimum income and employment tax withholding obligations, or Grantee agrees to tender sufficient funds to satisfy any applicable income and employment tax withholding obligations in connection with the vesting of the PSUs and the resulting delivery of shares of Stock under this Award.
3.    Dispute Resolution.  Grantee and the Corporation agree that any disagreement, dispute, controversy, or claim arising out of or relating to this Agreement, its interpretation, validity, or the alleged breach of this Agreement, will be settled exclusively and, consistent with the procedures specified in this Section II.B.3., irrespective of its magnitude, the amount in controversy, or the nature of the relief sought, in accordance with the following:
(a)    Negotiation.  Grantee and the Corporation will use their best efforts to settle the dispute, claim, question or disagreement.  To this effect, they will consult and negotiate with each other in good faith and, recognizing their mutual interests, attempt to reach a just and equitable solution satisfactory to both parties.
(b)    Arbitration.  If Grantee and the Corporation do not reach a solution within a period of 30 days from the date on which the dispute, claim, disagreement, or controversy arises, then, upon written notice by Grantee to the Corporation or the Corporation to Grantee, all disputes, claims, questions, controversies, or differences will be submitted to arbitration administered by the American Arbitration Association (the “AAA”) in accordance with the provisions of its Employment Arbitration Rules (the “Arbitration Rules”).
(1)    Arbitrator.  The arbitration will be conducted by one arbitrator skilled in the arbitration of executive employment matters.  The parties to the arbitration will jointly appoint the arbitrator within 30 days after initiation of the arbitration.  If the parties fail to appoint an arbitrator as provided above, an arbitrator with substantial experience in executive employment matters will be appointed by the AAA as provided in the Arbitration Rules.  The Corporation will pay all of the fees, if any, and expenses of the arbitrator and the arbitration, unless otherwise determined by the arbitrator.  Each party to the arbitration will be responsible for his/its respective attorneys fees or other costs of representation.

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(2)    Location.  The arbitration will be conducted in Oakland County, Michigan.
(3)    Procedure.  At any oral hearing of evidence in connection with the arbitration, each party or its legal counsel will have the right to examine its witnesses and cross-examine the witnesses of any opposing party.  No evidence of any witness may be presented in any form unless the opposing party or parties has the opportunity to cross-examine the witness, except under extraordinary circumstances in which the arbitrator determines that the interests of justice require a different procedure.
(4)    Decision.  Any decision or award of the arbitrator is final and binding on the parties to the arbitration proceeding.  The parties agree that the arbitration award may be enforced against the parties to the arbitration proceeding or their assets wherever they may be found and that a judgment upon the arbitration award may be entered in any court having jurisdiction.
(5)    Power.  Nothing contained in this Agreement may be deemed to give the arbitrator any authority, power, or right to alter, change, amend, modify, add to, or subtract from any of the provisions of this Agreement.
The provisions of this Section II.B.3 survive the termination or expiration of this Agreement, are binding on the Corporation’s and Grantee’s respective successors, heirs, personal representatives, designated beneficiaries and any other person asserting a claim described above, and may not be modified without the consent of the Corporation.  To the extent arbitration is required, no person asserting a claim has the right to resort to any federal, state or local court or administrative agency concerning the claim unless expressly provided by federal statute, and the decision of the arbitrator is a complete defense to any action or proceeding instituted in any tribunal or agency with respect to any dispute, unless precluded by federal statute.
4.    Code Section 409A.  Without limiting the generality of any other provision of this Agreement, Sections 18.9 and 18.10 of the Plan pertaining to Code Section 409A are explicitly incorporated into this Agreement.
5.    No Continued Right as Service Provider.  Nothing in the Plan or in this Agreement confers on Grantee any right to continue as a Service Provider, or interferes with or restricts in any way the rights of the Corporation or any Subsidiary or Affiliate of the Corporation, which are hereby expressly reserved, to discharge Grantee at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written employment agreement between Grantee and the Corporation or any Subsidiary or Affiliate of the Corporation.
6.    Effect on Other Benefits.  In no event will the value, at any time, of the PSUs or any other payment or right to payment under this Agreement be included as compensation or earnings for purposes of any other compensation, retirement, or benefit plan offered to employees of, or other Service Providers to, the Corporation or any Subsidiary or Affiliate of the Corporation unless otherwise specifically provided for in such plan.

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7.    Unfunded and Unsecured General Creditor.  Grantee, as a holder of PSUs and rights under this Agreement has no rights other than those of a general creditor of the Corporation.  The PSUs represent an unfunded and unsecured obligation of the Corporation, subject to the terms and conditions of this Agreement and the Plan.
8.    Governing Law.  This Agreement is governed by and construed in accordance with the laws of the State of Michigan, notwithstanding conflict of law provisions.
9.    Clawback Policy.  Any shares of Stock issued to Grantee in settlement of the PSUs shall be subject to the Corporation’s recoupment policy, as in effect from time to time.
(Signature Page Follows)

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This Agreement may be executed in two or more counterparts, each of which is deemed an original and all of which constitute one document.
TRIMAS CORPORATION
	
		
	Dated:  March 5, 2014
	By:   /s/ Joshua A. Sherbin
Name:   Joshua A. Sherbin
Title:     Vice President, General Counsel and  Corporate Secretary                  

GRANTEE ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS PERFORMANCE STOCK UNIT AGREEMENT, NOR IN THE CORPORATION’S 2011 OMNIBUS INCENTIVE COMPENSATION PLAN, AS AMENDED, WHICH IS INCORPORATED INTO THIS AGREEMENT BY REFERENCE, CONFERS ON GRANTEE ANY RIGHT WITH RESPECT TO CONTINUATION AS A SERVICE PROVIDER OF THE CORPORATION OR ANY PARENT OR SUBSIDIARY OR AFFILIATE OF THE CORPORATION, NOR INTERFERES IN ANY WAY WITH GRANTEE’S RIGHT OR THE CORPORATION’S RIGHT TO TERMINATE GRANTEE’S SERVICE PROVIDER RELATIONSHIP AT ANY TIME, WITH OR WITHOUT CAUSE AND WITH OR WITHOUT PRIOR NOTICE.
BY CLICKING THE “ACCEPT” BUTTON, GRANTEE ACKNOWLEDGES RECEIPT OF A COPY OF THE PLAN AND REPRESENTS THAT GRANTEE IS FAMILIAR WITH THE TERMS AND PROVISIONS OF THE PLAN.  GRANTEE ACCEPTS THIS PERFORMANCE STOCK UNIT AWARD SUBJECT TO ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT AND THE PLAN.  GRANTEE HAS REVIEWED THE PLAN AND THIS AGREEMENT IN THEIR ENTIRETY.  GRANTEE AGREES TO ACCEPT AS BINDING, CONCLUSIVE AND FINAL ALL DECISIONS OR INTERPRETATIONS OF THE COMMITTEE UPON ANY QUESTIONS ARISING UNDER THE PLAN OR THIS AWARD.

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APPENDIX A
TO
PERFORMANCE STOCK UNIT AGREEMENT

PERFORMANCE GOALS FOR PSU AWARD

The actual number of PSUs earned by Grantee will be determined by the Committee by the March 5th following the end of the Performance Period (“Determination Date”), using data as of, and including, December 31, 2016, under the rules described below.  Any PSUs not earned as of the Determination Date will be canceled and forfeited.  

1.    The actual number of shares of Stock delivered to Grantee in settlement of the PSUs earned under this Agreement will be determined based on actual performance results as described below, subject Section II.A.1 of the Agreement.

2.    The PSUs subject to this Award are earned based on the achievement of specific performance measures over the Performance Period (i.e., January 1, 2014 through December 31, 2016) and determined on the Determination Date.

3.    The PSUs subject to this Award that will actually be earned will be based on the achievement of the following performance measures:

		
	(A)
	a measure tied to an earnings per share compounded annual growth rate (“EPS CAGR”); and

		
	(B)
	a measure tied to a three-year average return on invested capital (“ROIC”).

4.    The performance measures are weighted as follows:

		
	(A)
	EPS CAGR = 75%; and

		
	(B)
	ROIC = 25%.

5.    For purposes of the performance measures:

		
	(A)
	“EPS CAGR” means the cumulative average growth rate during the Performance Period of the diluted earnings per share from continuing operations as reported in the Corporation’s Income Statement within the applicable Form 10-Q and Form 10-K, plus or minus special items that may occur from time-to-time that the Committee believes should adjust the as-reported results for measurement of performance; and

		
	(B)
	“ROIC” means the average of each of the three years in the Performance Period of the Corporation’s operating profit less income taxes paid in cash during the Performance Period divided by the last five-quarter average of debt plus equity plus non-controlling interest minus cash and cash equivalents on hand, all as reported in the Corporation’s Balance Sheet, Income Statement and Cash Flow Statement within the applicable Form 10-Q and Form 10-K, plus or minus special items that may 

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occur from time-to-time that the Committee believes should adjust the as-reported results for measurement of performance.

6.    The portion of the PSUs subject to this Award that are tied to achievement of EPS CAGR will be determined in accordance with the table below, with the total value of such portion of this Award determined based on the level of EPS CAGR that is achieved:

	
			
	EPS CAGR %
	 
	Award Payout 
(Reflected as % of PSUs Subject to EPS CAGR) 

	4.0
	 
	30%

	4.8
	 
	40%

	5.6
	 
	50%

	7.1
	 
	66.6%

	8.6
	 
	83.4%

	10.0
	 
	100%

	11.5
	 
	125%

	13.0
	 
	150%

	14.5
	 
	175%

	17.0
	 
	200%

	20.0
	 
	250%

There will be pro rata allocations between the achievement of EPS CAGR percentage levels, i.e., there will be interpolation between the specified EPS CAGR percentage levels.
The table above provides that the achievement of EPS CAGR of 10.0% is the target level, i.e., at that level, 100% of the PSUs subject to this Award that are allocated to the EPS CAGR performance measurement will be earned.
7.    The portion of the PSUs subject to this Award that are tied to achievement of ROIC will be determined in accordance with the table below, with the total value of such portion of this Award determined based on the level of ROIC that is achieved:
	
			
	Target 
(ROIC %)
	 
	Award Payout 
(Reflected as % of PSUs Subject to ROIC)

	12.3%
	 
	30%

	12.5%
	 
	40%

	12.7%
	 
	50%

	13.2%
	 
	66.6%

	13.8%
	 
	83.4%

	14.5%
	 
	100%

	14.9%
	 
	120%

	15.3%
	 
	140%

	16.1%
	 
	160%

	16.9%
	 
	180%

	17.9%
	 
	200%

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There will be pro rata allocations between the achievement of ROIC percentage levels, i.e., there will be interpolation between the specified ROIC percentage levels.
The table above provides that the achievement of ROIC of 14.5% is the target level, i.e., at that level, 100% of the PSUs subject to this Award that are allocated to the ROIC performance measurement will be earned.

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APPENDIX B
TO
PERFORMANCE STOCK UNIT AGREEMENT

GLOSSARY

For purposes of this Agreement:

“Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act.

A “Change of Control” shall be deemed to have occurred upon the first of the following events to occur:

(i)    any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Corporation (not including in the securities beneficially owned by such Person any securities acquired directly from the Corporation or its Affiliates) representing 35% or more of the combined voting power of the Corporation’s then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (A) of paragraph (iii) below; 

(ii)    the following individuals cease for any reason to constitute a majority of the number of directors then serving on the Board: individuals who, on the date hereof, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Corporation) whose appointment or election by the Board or nomination for election by the Corporation’s stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended (the “Incumbent Board”); provided, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened election contest (an “Election Contest”) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a “Proxy Contest”), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; 

(iii)    there is consummated a merger, consolidation, wind-up, reorganization or restructuring of the Corporation with or into any other entity, or a similar event or series of such events, other than (A) any such event or series of events which results in (1) the voting securities of the Corporation outstanding immediately prior to such event or series of events continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Corporation or any subsidiary of the Corporation, at least 51% of the combined voting power of the securities of the Corporation or such surviving entity or 

iv

any parent thereof outstanding immediately after such merger or consolidation and (2) the individuals who comprise the Board immediately prior thereto constituting immediately thereafter at least a majority of the board of directors of the Corporation, the entity surviving such merger or consolidation or, if the Corporation or the entity surviving such merger is then a subsidiary, the ultimate parent thereof, or (B) any such event or series of events effected to implement a recapitalization of the Corporation (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Corporation (not including in the securities Beneficially Owned by such Person any securities acquired directly from the Corporation or its Affiliates) representing 35% or more of the combined voting power of the Corporation’s then outstanding securities; or 

(iv)    the stockholders of the Corporation approve a plan of complete liquidation or dissolution of the Corporation or there is consummated an agreement for the sale or disposition by the Corporation of all or substantially all of the Corporation’s assets (it being conclusively presumed that any sale or disposition is a sale or disposition by the Corporation of all or substantially all of its assets if the consummation of the sale or disposition is contingent upon approval by the Corporation’s stockholders unless the Board expressly determines in writing that such approval is required solely by reason of any relationship between the Corporation and any other Person or an Affiliate of the Corporation and any other Person), other than a sale or disposition by the Corporation of all or substantially all of the Corporation’s assets to an entity (A) at least 51% of the combined voting power of the voting securities of which are owned by stockholders of the Corporation in substantially the same proportions as their ownership of the Corporation immediately prior to such sale or disposition and (B) the majority of whose board of directors immediately following such sale or disposition consists of individuals who comprise the Board immediately prior thereto.

Notwithstanding the foregoing, (A) a “Change of Control” shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the common stock of the Corporation immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Corporation immediately following such transaction or series of transactions and (B) if required to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, a “Change of Control” shall be deemed to have occurred only if a “change in the ownership of the corporation,” a “change in effective control of the corporation” or a “change in the ownership of a substantial portion of the assets of the corporation,” within the meaning of Section 409A(a)(2)(A)(v) of the Code shall also be deemed to have occurred under Section 409A of the Code.

“Good Reason” means: 

		
	(i) 
	A material and permanent diminution in Grantee’s duties or responsibilities;

v

		
	(ii)
	A material reduction in the aggregate value of base salary and bonus opportunity provided to Grantee by the Corporation; or

		
	(iii)
	A permanent reassignment of Grantee to another primary office more than 50 miles from the current office location.

Grantee must notify the Corporation of Grantee’s intention to invoke termination for Good Reason within 90 days after Grantee has knowledge of such event and provide the Corporation 30 days’ opportunity for cure, or such event shall not constitute Good Reason.  Grantee may not invoke termination for Good Reason if Cause exists at the time of such termination.

“Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Corporation or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Corporation or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of the Corporation in substantially the same proportions as their ownership of stock of the Corporation.

“Qualifying Termination” means a termination of Grantee’s services with the Corporation or a Subsidiary or an Affiliate of the Corporation for any reason other than:

(i)    death; 
(ii)    Disability; 
(iii)    Cause; or
(iv)    a termination of Services by Grantee without Good Reason, (as defined above).

viExhibit

	
		
	
	Department:
Legal

	Date Issued:
July 1, 2015

	Prepared By:
Legal Director

	Approved By:
Compensation Committee of Board of Directors

	Title:     EXECUTIVE SEVERANCE/CHANGE OF CONTROL POLICY (this “Policy”)

		
	Scope:
	This Policy applies to (i) the executive officers of Horizon Global Corporation (“Horizon” or the “Company”) set forth on Exhibit A, as such exhibit may be updated by the Compensation Committee (the “Compensation Committee”) of the Horizon Board of Directors (the “Board”) from time to time and (ii) such other officers or executives as may be determined by the Compensation Committee from time to time (the individuals participating in this Policy from time to time, “Executives”).  Each Executive will be designated by the Compensation Committee as a Tier I Participant, Tier II Participant or Tier III Participant upon being included as a participant in this Policy (as applicable,  the “Participation Tier”).

		
	Purpose:
	To detail what compensation and benefits, if any, are due to an Executive upon an Executive’s termination of employment with the Company, which for purposes of this Policy shall mean a “separation from service”, as defined under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).

		
	Defined Terms:
	Any capitalized term that is used, but not defined, in this Policy shall have the meaning set forth in Section 9 hereof.  

		
	Policy:
	Each Executive is an at-will employee whose employment may be terminated by Executive or Horizon at any time for any reason. Upon a termination of employment of an Executive, this Policy shall govern the rights and responsibilities of the Company and Executive.  In consideration of Executive’s participation in this Policy, Executive will devote his or her full business time and efforts to the performance of his or her duties and responsibilities for the Company; provided that, this Policy does not preclude Executive from engaging in charitable and community affairs or managing any passive investment (i.e., an investment with respect to which Executive is in no way involved with the management or operation of the entity in which Executive has invested) to the extent that such activities do not conflict with the Executive’s duties; and further provided, that, subject to Section 7 hereof, Executive shall not, without the prior approval of the Board, serve as a director or trustee of any other corporation, association or entity, or own more than five percent of the equity of any publicly traded entity.

1. Termination Without Cause or for Good Reason Prior to a Change of Control

Except as otherwise set forth in Section 2 of this Policy, if the Executive’s employment with the Company terminates by reason of a Qualifying Termination, then the Company shall, subject to Section 7(F), provide the Executive the following severance benefits:

		
	(A)
	Payment of an amount equal to the product of (i) the Non-COC Multiplier for Executive’s Participation Tier as set forth on Exhibit A, multiplied by (ii) the sum of (a) Executive’s annual base salary in effect on the date of termination and (b) Executive’s target Short-Term Incentive Plan (as in effect from time to time, the “Short-Term Incentive Plan”) bonus for the full year of termination at the level in effect immediately prior to the date of termination, payable in equal installments in accordance with the Company’s payroll practices as in effect from time to time, commencing on the 60th day following the date of termination and ending on the last payroll date of the Company in the last month of the Non-COC Period applicable to Executive’s Participation Tier set forth on Exhibit A, provided that the first such payment shall include all amounts that would have been paid to Executive in accordance with the Company’s payroll practices if such payments had begun on the date of termination;

 
		
	(B)
	Payment of all (i) accrued but unpaid base salary through the date of termination and (ii) earned but unused vacation through the date of termination, payable by the next payroll date following termination of employment;

		
	(C)
	Payment of Executive’s Short-Term Incentive Plan bonus payment for the most recently completed bonus term if a bonus has been declared for Executive under the Short-Term Incentive Plan for such year but not paid, payable in accordance with the terms of the Short-Term Incentive Plan;

		
	(D)
	Payment of Executive’s Short-Term Incentive Plan bonus for the year of termination, based on actual performance results for the full year and prorated through Executive’s employment termination date, payable in accordance with the terms of the Short-Term Incentive Plan;

		
	(E)
	Notwithstanding anything set forth in any of the Company’s equity compensation plans or arrangements:

(i) any unvested equity awards Executive may have received prior to March 2, 2013 under the TriMas Corporation 2002 Long Term Equity Incentive Plan (“2002 Plan”) or the TriMas Corporation 2006 Long Term Equity Incentive Plan (“2006 Plan”), which were adjusted and converted to equity awards with respect to common stock of the Company as a result of the Spinoff, shall immediately vest, and for stock options become exercisable, upon the employment termination date and otherwise be subject to the terms consistent with such plan and award agreement, including the time for payment of such award; and

(ii) any unvested equity awards Executive may have originally received (a) on or after March 2, 2013 under the 2002 Plan or the 2006 Plan, which were adjusted and converted to equity awards with respect to common stock of the Company as a result of the Spinoff, (b) at any time under the TriMas Corporation 2011 Omnibus Incentive Compensation Plan (“2011 Plan”), which were adjusted and converted to equity awards with respect to common stock of the Company as a result of the Spinoff, or (c) at any time under the Horizon Global Corporation 2015 Equity and Incentive Compensation Plan (“2015 Plan”)  or any equity plan or arrangement subsequently issued by the Company shall vest, and for stock options become exercisable, (and otherwise be subject to the terms consistent with the applicable plan and award agreements, including the time for payment of such award) in an amount equal to (1) the product of (A) the total number of shares subject to such award and (B) a fraction, the numerator of which is equal to the number of whole calendar months that have elapsed from the grant date of the applicable award to the date of Executive’s termination of employment and the denominator of which is equal to the full number of calendar months in the vesting period of such award, less (2) the number of shares that had already become vested as of the date of such termination in respect of such award. 

Notwithstanding the foregoing, any equity awards granted under the 2002 Plan, the 2006 Plan, the 2011 Plan, the 2015 Plan, or any subsequently issued equity plan or arrangement that are subject to vesting upon the attainment of performance goals shall become vested in an amount equal to (a) the product of (1) the total number of shares that would be issued at the end of the performance period based on actual performance in accordance with the terms of the governing arrangements under which such performance-based awards were granted and (2) a fraction, the numerator of which is the number of whole calendar months that have elapsed from the grant date of the applicable award to the date of Executive’s termination and the denominator of which is the full number of calendar months in the vesting period of such award, less (b) the number of shares that had already become vested as of the date of such termination in respect of such award, provided that such award will be settled at the time when awards are settled under the terms of the applicable plan for individuals who remain employed through the end of the performance period;

2

		
	(F)
	If Executive timely elects to continue group health care coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), and subject to the Company’s COBRA policies, the Company will reimburse Executive for the employer’s portion of premiums for continued group health coverage under COBRA until the earliest of (i) the termination of Executive’s COBRA period; (ii) the expiration of the Non-COC Period applicable to Executive’s Participation Tier set forth on Exhibit A; or (iii) the date on which Executive becomes eligible to receive any medical benefits under any plan or program of any other employer.  Executive will be responsible for payment of the COBRA premium and will be reimbursed by the Company for the portion of the premium that the Company would have paid for group health coverage if Executive had continued to be an employee of the Company.  If the COBRA period expires before the applicable Non-COC Period has elapsed following Executive’s termination of employment, the Company shall pay Executive a monthly amount equal to the monthly contribution that the Company would have paid for Executive’s coverage under the applicable group health plan of the Company if Executive had continued as an employee of the Company until the earlier of (i) the expiration of the applicable Non-COC period or (ii) the date on which Executive becomes eligible to receive any medical benefits under any plan or program of any other employer;

		
	(G)
	Executive-level outplacement services until the earlier of (i) 12 months following Executive’s termination of employment or (ii) the date on which Executive becomes employed by a subsequent employer; and

(H)  Except for the benefits stated in the applicable portion of this Section 1, Executive’s participation in all benefit plans, programs and arrangements of the Company shall cease as of the date of Executive’s termination of employment and otherwise be governed by the terms of the plans, programs or arrangements, if any, governing such benefits.  

2.  Termination Following a Change of Control

If the Executive’s employment with the Company terminates by reason of a Qualifying Termination within two years after a Change of Control, in place of any other severance payments, benefits or other consideration, whether pursuant to this Policy or otherwise, and subject to all legal requirements, the Company shall, subject to Section 7(F), provide Executive the following severance benefits: 

		
	(A)
	If the Change of Control is a Section 409A Change of Control, a lump sum payment payable on the 60th day following the date of Executive’s termination, equal to the product of (i) the COC Multiplier for Executive’s Participation Tier as set forth on Exhibit A, multiplied by (ii) the sum of (a) Executive’s annual base salary rate in effect on the date of termination (without regard to any reduction giving rise to Good Reason) and (b) Executive’s Short-Term Incentive Plan target bonus for the full year of termination at the level in effect immediately prior to the date of termination (without regard to any reduction giving rise to Good Reason);

		
	(B)
	If the Change of Control is not a Section 409A Change of Control, an amount equal to the product of (i) the COC Multiplier for Executive’s Participation Tier as set forth on Exhibit A, multiplied by (ii) the sum of (a) Executive’s annual base salary rate in effect on the date of termination (without regard to any reduction giving rise to Good Reason) and (b) Executive’s Short-Term Incentive Plan target bonus for the full year of termination at the level in effect on the date of termination (without regard to any reduction giving rise to Good Reason), payable in equal installments in accordance with the Company’s payroll practices as in effect from time to time, commencing on the 60th day following the date of termination and ending on the last payroll date of the Company in the last month of the COC Period applicable to Executive’s Participation Tier set forth on Exhibit A, provided that the first such payment shall include all amounts that 

3

would have been paid to Executive in accordance with the Company’s payroll practices if such payments had begun on the date of termination.

		
	(C)
	Payment of Executive’s Short-Term Incentive Plan bonus payment for the most recently completed bonus term if a bonus has been earned by Executive under the Short-Term Incentive Plan for such year but not yet paid, payable at the time set forth in the Short-Term Incentive Plan, provided that in no event will the Company be permitted to exercise any negative discretion with respect to the amount of such Short-Term Incentive Plan bonus;

		
	(D)
	Payment of Executive’s Short-Term Incentive Plan bonus for the year of termination, based on actual performance results for the full year and prorated through Executive’s employment termination date, payable in accordance with the terms of the Short-Term Incentive Plan, provided that in no event will the Company be permitted to exercise any negative discretion with respect to the amount of such Short-Term Incentive Plan bonus (the “Prorated Bonus);

		
	(E)
	Any unvested equity awards Executive may have received under any equity compensation plans or arrangements sponsored by the Company, its successor or any of their respective subsidiaries or affiliates (including any equity awards that were originally received pursuant to the 2002 Plan, 2006 Plan, or 2011 Plan that were adjusted and converted to equity awards with respect to common stock of the Company as a result of the Spinoff) shall immediately vest, or for stock options become exercisable, upon the termination of Executive’s employment and otherwise be subject to the terms consistent with such plan or arrangement, including the time for payment of such award; provided, however, that any awards subject to vesting upon the attainment of performance goals shall become vested in an amount equal to (1) the total number of shares that would be issued at the end of the performance period based on target performance in accordance with the terms of the governing arrangements under which such performance-based awards were granted, less (2) the number of shares that had already become vested as of the date of such termination in respect of such award, but in no event may negative discretion be exercised with respect to any such performance awards;

		
	(F)
	If Executive timely elects to continue group health care coverage under the Consolidated Omnibus Budget Reconciliation Act of 1986 (“COBRA”), and subject to the Company’s COBRA policies, the Company will reimburse Executive for the employer’s portion of premiums for continued group health coverage under COBRA until the earliest of (i) the termination of Executive’s COBRA period; (ii) the expiration of the COC Period applicable to Executive’s Participation Tier set forth on Exhibit A; or (iii) the date on which Executive becomes eligible to receive any medical benefits under any plan or program of any other employer.  Executive will be responsible for payment of the COBRA premium and will be reimbursed by the Company for the portion of the premium that the Company would have paid for group health coverage if Executive had continued to be an employee of the Company.  If the COBRA period expires before the applicable COC Period has elapsed following Executive’s termination of employment, the Company shall pay Executive a monthly amount equal to the monthly contribution that the Company would have paid for Executive’s coverage under the applicable group health plan of the Company if Executive had continued as an employee of the Company until the earlier of (i) the expiration of the applicable COC period or (ii) the date on which Executive becomes eligible to receive any medical benefits under any plan or program of any other employer; 

		
	(G)
	Executive level outplacement services until the earlier of (i) 12 months following Executive’s termination of employment or (ii) the date on which Executive is employed by a subsequent employer; and

		
	(H)
	Except for the benefits stated in this Section 2, Executive’s participation in all benefit plans, programs and arrangements of the Company shall cease as of the date of Executive’s termination 

4

of employment and otherwise be governed by the terms of the plans, programs or arrangements, if any, governing such benefits.  

3. Voluntary Termination by Executive

If Executive voluntarily terminates employment with the Company without Good Reason, the Company shall pay Executive his or her (i) accrued but unpaid base salary through the date of termination, (ii) earned but unused vacation through the date of termination and (iii) Short-Term Incentive Plan bonus payment for the most recently completed bonus term if a bonus has been declared for Executive under the Short-Term Incentive Plan for such year but not paid.  The accrued salary and vacation time shall be payable by the next normal payroll date following the date of Executive’s termination of employment, and the Short-Term Incentive Plan award shall be payable in accordance with the terms of the Short-Term Incentive Plan.  Except for the benefits stated in this Section 3, Executive’s participation in all benefit plans, programs and arrangements of the Company shall cease as of the date of Executive’s termination of employment and otherwise be governed by the terms of the plans, programs or arrangements, if any, governing such benefits.

4. Termination for Cause

If the Company terminates Executive with Cause, the Company shall pay Executive his or her (i) accrued but unpaid base salary through the date of termination and (ii) earned but unused vacation through the date of termination payable by the next normal payroll date following the date of Executive’s termination of employment.  Executive shall not be entitled to payment of any Short-Term Incentive Plan award, whether declared and unpaid for any prior year, relating to any portion of the year in which the termination occurs or otherwise. Except for the benefits stated in this Section 4, Executive’s participation in all benefit plans, programs and arrangements of the Company shall cease as of the date of Executive’s termination of employment and otherwise be governed by the terms of the plans, programs or arrangements, if any, governing such benefits.

5. Termination for Disability

If Executive’s employment is terminated after it is determined that the Executive is Disabled, then all obligations of the Company to make any further payments, except for earned but unpaid base salary and accrued but unpaid Short-Term Incentive Plan bonus awards, shall terminate on the first to occur of (i) the date that is six (6) months after such termination or (ii) the date Executive becomes entitled to benefits under a Company-provided long-term disability program.  In the event of a Disability termination hereunder, Executive’s outstanding equity awards (including any equity awards that were originally received pursuant to the 2002 Plan, 2006 Plan, or 2011 Plan that were adjusted and converted to equity awards with respect to common stock of the Company as a result of the Spinoff) shall (i) immediately become 100% vested with respect to time-based equity awards and (ii) become fully vested at the end of the performance period, based on actual performance through the end of the performance period, with respect to performance-based equity awards.  The earned but unpaid base salary shall be paid by the next normal payroll payment date following termination of the Executive’s employment, and the Short-Term Incentive Plan award shall be paid in accordance with the terms of such plan.  Company may only terminate Executive on account of Disability after giving due consideration to whether reasonable accommodations can be made under which Executive is able to fulfill Executive’s job related duties.  The commencement date and expected duration of any physical or mental condition that prevents Executive from performing job related duties shall be determined by a medical doctor selected by Company.  Company may, in its discretion, require written confirmation from a physician of Disability during any extended absence. Except for the benefits stated above, Executive’s participation in all other Company benefits shall cease as of the date above on which Company’s obligation to make payments ceases and otherwise be governed by the terms of the plans, if any, applicable to such benefits.  

5

6. Termination Due to Death 

If Executive’s employment terminates due to Executive’s death, all obligations of Company to make any further payments, other than an obligation to pay any accrued but unpaid base salary to the date of death and any accrued but unpaid bonuses under the Short-Term Incentive Plan to the date of death, shall terminate upon Executive’s death.  In the event Executive’s employment is terminated due to death, Executive’s outstanding equity awards (including any equity awards that were originally received pursuant to the 2002 Plan, 2006 Plan, or 2011 Plan that were adjusted and converted to equity awards with respect to common stock of the Company as a result of the Spinoff) shall immediately become 100% vested and assuming performance achievement at target level with respect to performance-based equity awards.  The accrued but unpaid base salary shall be paid by the next normal payroll date following termination of employment, and the accrued but unpaid Short-Term Incentive Plan award shall be paid in accordance with the terms of such plan.  In accordance with Company guidelines, Executive’s qualified dependents shall be reimbursed for the employer portion of COBRA premiums for Company group medical benefits (including health, dental, vision, EAP and prescription plans), as defined by the plan documents, for a period not to exceed thirty-six (36) months; provided a timely election to continue health care coverage under COBRA is made and subject to Company’s COBRA policies.  For purposes of the preceding sentence, the “Employer’s portion of COBRA premiums” means the portion of the premium that the Company would have paid for group health coverage if Executive had continued to be employed by the Company.  Except for the benefits stated above, Executive’s participation in all other Company benefits shall cease as of the date of death and otherwise be governed by the terms of the plans, if any, applicable to such benefits.
7. Non-Competition; Non-Solicitation; Confidentiality; Release of Claims

In consideration of Executive’s participation in this Policy, Executive shall comply with the following:

		
	(A)
	Acceptance of participation in this Policy and performance relative to this Policy are not in violation of any restrictions or covenants under the terms of any other agreements to which Executive is a party.

		
	(B)
	Executive acknowledges and recognizes the highly competitive nature of the business of the Company and accordingly agrees that, in consideration of this Policy, the rights conferred hereunder, and any payment hereunder, while Executive  is employed by the Company and for the duration of the Non-Compete Term, Executive shall not engage, either directly or indirectly, as a principal for Executive’s own account or jointly with others, or as a stockholder in any corporation or joint stock association, or as a partner or member of a general or limited liability entity, or as an employee, officer, director, agent, consultant or in any other advisory capacity in any business other than the Company or its subsidiaries which designs, develops, manufactures, distributes, sells or markets the type of products or services sold, distributed or provided by the Company or its subsidiaries during the one-year period prior to the date of employment termination (the “Business”); provided that nothing herein shall prevent Executive from owning, directly or indirectly, not more than five percent of the outstanding shares of, or any other equity interest in, any entity engaged in the Business and listed or traded on a national securities exchanges or in an over-the-counter securities market.

		
	(C)
	During the Non-Compete Term, Executive shall not (i) directly or indirectly employ or solicit, or receive or accept the performance of services by, any active employee of the Company or any of its subsidiaries who is employed primarily in connection with the Business, except in connection with general, non-targeted recruitment 

6

efforts such as advertisements and job listings, or directly or indirectly induce any employee of the Company to leave the Company, or assist in any of the foregoing, or (ii) solicit for business (relating to the Business) any person who is a customer or former customer of the Company or any of its subsidiaries, unless such person shall have ceased to have been such a customer for a period of at least six months as of the time of such solicitation.

		
	(D)
	Executive shall not at any time (whether during or after his employment with the Company) disclose or use for Executive’s own benefit or purposes or the benefit or purposes of any other person, firm, partnership, joint venture, association, corporation or other business organization, entity or enterprise other than the Company and any of its subsidiaries, any trade secrets, information, data, or other confidential information of the Company, including but not limited to, information relating to customers, development programs, costs, marketing, trading, investment, sales activities, promotion, credit and financial data, financing methods, plans or the business and affairs of the Company generally, or of any subsidiary of the Company, unless required to do so by applicable law or court order, subpoena or decree or otherwise required by law, with reasonable evidence of such determination promptly provided to the Company.  The preceding sentence of this paragraph (D) shall not apply to information which is not unique to the Company or which is generally known to the industry or the public other than as a result of Executive’s breach of this covenant.  Executive agrees that upon termination of employment with the Company for any reason, Executive will return to the Company immediately all memoranda, books, papers, plans, information, letters and other data, and all copies of these materials, in any way relating to the business of the Company and its subsidiaries, except that Executive may retain personal notes, notebooks and diaries.  Executive further agrees that Executive will not retain or use for Executive’s account at any time any trade names, trademark or other proprietary business designation used or owned in connection with the business of the Company or its subsidiaries.

		
	(E)
	Although Executive and the Company consider the restrictions contained in this Policy to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time or territory or any other restriction contained in this Policy is an unenforceable restriction against Executive, the provisions of this Policy shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially determine or indicate to be enforceable.  Alternatively, if any tribunal of competent jurisdiction finds that any restriction contained in this Policy is unenforceable, and such restriction cannot be amended so as to make it enforceable, such finding shall not affect the enforceability of any of the other restrictions contained herein.

		
	(F)
	Notwithstanding any provision herein to the contrary, the Company will have no obligation to make any payments or provide any benefits under this Policy that are not otherwise required to be paid or provided to Executive pursuant to applicable law unless (i) within 60 days following the date of termination of Executive’s employment, Executive executes and delivers to the Company a waiver and release agreement in the form approved by the Company from time to time (the “Release”) and (ii) any applicable revocation period has expired during such 60-day period without Executive revoking such Release.

		
	(G)
	Upon Executive’s termination of employment, or at any other time as requested by the Company, Executive will be required to surrender to the Company all 

7

correspondence, documents, supplies, files, equipment, checks, and all other materials and records of any kind that are the property of the Company or any of its subsidiaries or affiliates that are in the possession or under control of the Executive.

8. Miscellaneous Provisions

		
	(A)
	Payments Not Compensation 

Any participation by Executive in, and any terminating distributions and vesting rights (other than previously defined) under, the Company sponsored retirement or savings plans, regardless of whether such plans are qualified or non-qualified for tax purposes, shall be governed by the terms of those respective plans.  Any salary continuation or severance benefits shall not be considered compensation for purposes of accruing additional benefits under such plans.

		
	(B)
	Code Section 409A 

(i) To the extent applicable, it is intended that this Policy comply with or be exempt from the provisions of Section 409A of the Code, so that the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to Executive.  Consistent with that intent, and to the extent required under Section 409A of the Code, for benefits that are to be paid in connection with a termination of employment, “termination of employment” or any similar term shall be limited to such a termination that constitutes a “separation from service” under Section 409A of the Code.

(ii) Notwithstanding any provision of this Policy to the contrary, if Executive is a “specified employee,” determined pursuant to procedures adopted by the Company in compliance with Section  409A of the Code, on the date of his separation from service (within the meaning of Treasury Regulation section 1.409A-1(h)) and if any portion of the payments or benefits to be received by Executive upon his or her termination of employment would constitute a “deferral of compensation” subject to Section 409A of the Code, then to the extent necessary to comply with Section 409A of the Code, amounts that would otherwise be payable pursuant to this Policy during the six-month period immediately following Executive’s termination of employment will instead be paid or made available on the earlier of (A) the first business day of the seventh month after the date of Executive’s termination of employment, or (B) Executive’s death.  For purposes of application of Section 409A of the Code, to the extent applicable, each payment made under this Policy shall be treated as a separate payment.

(iii) Notwithstanding any provision of this Policy to the contrary, to the extent any reimbursement or in-kind benefit provided under this Policy is nonqualified deferred compensation within the meaning of Section 409A of the Code: (A) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year; (B) the reimbursement of an eligible expense must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred; and (C) the right 

8

to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

(iv) In no event, however, shall this Section 8(B) or any other provisions of this Policy be construed to require the Company to provide any gross-up for the tax consequences under Section 409A of the Code of any provisions of, or payments under, this Policy and the Company shall have no responsibility for tax consequences under Section 409A of the Code to Executive resulting from the terms or operation of this Policy.

		
	(C)
	Payment Process and Taxation Requirements

The Company may withhold from any amounts payable hereunder all federal, state, city or other taxes as shall be required to be withheld pursuant to any law or government regulation or ruling.  Notwithstanding any other provision of this Policy, the Company shall not be obligated to guarantee any particular tax result for Executive with respect to any payment or benefit provided to Executive hereunder, and Executive shall be responsible for any taxes imposed on Executive with respect to any such payment or benefit.

		
	(D)
	Notices 

All notices or communications hereunder shall be in writing, addressed as follows:

To the Company:        Horizon Global Corporation
39400 Woodward Avenue, Suite 100
Bloomfield Hills, MI 48304
Attn: Legal Director

Any such notice or communication shall be delivered by hand or by courier or sent certified or registered mail, return receipt requested, postage prepaid, addressed as above (or to such other address as such party may designate in a notice duly delivered as described above), and the third business day after the actual date of mailing shall constitute the time at which notice was given.

		
	(E)
	Severability; Legal Fees  

If any provision of this Policy shall be declared to be invalid or unenforceable, in whole or in part, such invalidity or unenforceability shall not affect the remaining provisions which shall remain in full force and effect.  In the event of a dispute by the Company, Executive or others as to the validity or enforceability of, or liability under, any provision of this Policy prior to a Change of Control, the Company shall reimburse Executive for all reasonable legal fees and expenses incurred by Executive if Executive prevails on the merits in the dispute resolution process, and if Executive does not so prevail, Executive and the Company shall be responsible for their respective legal fees and expenses.  In the event of any such dispute on or after a Change of Control, the Company shall reimburse Executive for all reasonable legal fees and expenses incurred by Executive regardless of the outcome thereof unless the finder of fact in such action determines that Executive’s position was frivolous or maintained in bad faith.

		
	(F)
	ERISA Provisions 

9

This Policy constitutes a “top hat” plan maintained primarily for a group of management or highly compensated employees and is exempted from most, but not all of the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).  To the extent that ERISA applies, the ERISA provisions are set forth on Appendix B to the Policy.

		
	(G)
	Dispute Resolution Governing Law 

Any and all disputes arising under this Policy must be resolved in accordance with the Horizon Dispute Resolution Policy process, as set forth in the ERISA attachment on Appendix B to the Plan. To the extent not preempted by Federal law, this Policy and all disputes related to it shall be governed by Michigan law, without regard to conflict of law principles. 

		
	(H)
	Amendments and Termination

(i) This Policy may be amended or terminated at any time by the Compensation Committee; provided however, that no such amendment or termination may adversely affect any Executive without the Executive’s prior written consent unless the Company provides 12 months’ written notice of such amendment or termination to any adversely affected Executive. 

(ii) Notwithstanding the foregoing, this Policy may not be terminated or amended in any manner prior to the fifth business day following the second anniversary of the Change of Control without the prior written consent of the applicable Executive potentially affected thereby.

		
	(I)
	Code Section 162(m)

Notwithstanding anything contrary in this Policy, to the extent any benefit covered under this Policy is intended to be exempt from the application of Code Section 162(m) as “performance based compensation” (as defined in 162(m) and the regulations thereunder), then such performance-based compensation shall only be paid to the Executive in accordance with Code Section 162(m).

		
	(J)
	Effective Date

The Policy, in the form effective as of July 1, 2015, supersedes all prior understandings, agreements or representations, written or oral, with respect to the subject matter herein.

9. Certain Definitions.  

For purposes of this Policy, the following terms shall have the respective meanings set forth below:

		
	(A)
	“Affiliate” shall mean any corporation, partnership, joint venture or other entity, directly or indirectly, through one or more intermediaries, controlling, controlled by, or under common control with the Company as determined by the Compensation Committee or the Board, as applicable, in its discretion.

(B)     “Cause” shall mean:

10

(i)  Executive’s conviction of or plea of guilty or nolo contendere to a crime constituting a felony under the laws of the United States or any jurisdiction in which the Company conducts business;

(ii)  Executive’s willful failure or refusal to perform his or her duties to the Company and failure to cure such breach within 30 days following written notice thereof from the Company;

(iii)  Executive’s willful failure or refusal to follow directions of the Board (or direct reporting executive) and failure to cure such breach within 30 days following written notice thereof from the Board; or 

(iv)  Executive’s breach of fiduciary duty to the Company for personal profit.
Any failure by the Company or a Subsidiary to notify an Executive after the first occurrence of an event constituting Cause shall not preclude any subsequent occurrence of such event (or similar event) from constituting Cause.

Notwithstanding the foregoing, no termination of Executive’s employment shall qualify as a termination for Cause unless (x) the Company notifies Executive in writing of the Company’s intention to terminate Executive’s employment for Cause within 90 days following the Company’s knowledge of initial existence of such occurrence or event, (y) Executive fails to cure such occurrence or event within 30 days after receipt of such notice from the Company and (z) the Company terminates Executive’s employment within 45 days after the expiration of Executive’s cure period in subsection (y).

		
	(C)
	A “Change of Control” shall be deemed to have occurred upon the first of the following events to occur:

(i) any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person") becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 35% or more of either (a) the then-outstanding Common Shares (the "Outstanding Company Common Stock") or (b) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the "Outstanding Company Voting Securities"); provided, however, that, for purposes of this definition, the following acquisitions shall not constitute a Change of Control: (I) any acquisition directly from the Company, (II) any acquisition by the Company, (III) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate or (IV) any acquisition pursuant to a transaction that complies with Sections 9(C)(iii)(a), (iii)(b) and (iii)(c) below;

(ii) individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the shareholders of Company common stock, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board (either by specific vote or by approval of the proxy statement of the Company in which such individual is named as a nominee for director, without objection to such nomination) shall be considered as though such individual was a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal 

11

of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;

(iii) consummation of a reorganization, merger, statutory share exchange or consolidation or similar transaction involving the Company or any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or securities of another entity by the Company or any of its subsidiaries (each, a “Business Combination”), in each case unless, following such Business Combination, (a) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock (or, for a non-corporate entity, equivalent securities) and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors (or, for a non-corporate entity, equivalent governing body), as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be, (b) no Person (excluding any entity resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such entity resulting from such Business Combination) beneficially owns, directly or indirectly, 35% or more of, respectively, the then-outstanding shares of common stock (or, for a non-corporate entity, equivalent securities) of the entity resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such entity, except to the extent that such ownership existed prior to the Business Combination, and (c) at least a majority of the members of the board of directors (or, for a non-corporate entity, equivalent governing body) of the entity resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or

(iv) approval by the holders of common shares of the Company of a complete liquidation or dissolution of the Company.

		
	(D)
	“COC Multiplier” means the multiplier set forth on Exhibit A that applies to the Executive’s Participation Tier in respect of a termination of Executive’s employment under Section 2 of this Policy.

		
	(E)
	“COC Period” means the period of time that begins on the date of Executive’s termination of employment and equals the number of months set forth on Exhibit A that applies to the Executive’s Participation Tier in respect of a termination of Executive’s employment under Section 2 of this Policy.

		
	(F)
	“Disability” means (i) the Executive is unable to engage in any substantial activity due to medically determinable physical or mental impairment expected to result in death or to last for a continuous period of not less than 12 months, or (ii) if due to any medically determinable physical or mental impairment expected to result in death or last for a continuous period not less than 12 months, Executive has received income replacement benefits for a period of not less than three months under a accident and health plan sponsored by the Company.

12

(G)    “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, as such law, rules and regulations may be amended from time to time.

(H)    “Good Reason” shall mean: 

(i)     A material and permanent diminution in Executive’s duties or responsibilities;

(ii)     A material reduction in the aggregate value of base salary and bonus opportunity provided to Executive by the Corporation; or

(iii) A permanent reassignment of Executive to another primary office more than 50 miles from current office location.

Executive must notify the Corporation of Executive’s intention to invoke termination for Good Reason within 90 days after Executive has knowledge of such event and provide the Corporation 30 days’ opportunity for cure, or such event shall not constitute Good Reason.  Executive may not invoke termination for Good Reason if Cause exists at the time of such termination.

		
	(I)
	“Non-COC Multiplier” means the multiplier set forth on Exhibit A that applies to the Executive’s Participation Tier in respect of a termination of Executive’s employment under Section 1 of this Policy.

		
	(J)
	“Non-COC Period” means the period of time that begins on the date of Executive’s termination of employment and equals the number of months set forth on Exhibit A that applies to the Executive’s Participation Tier in respect of a termination of Executive’s employment under Section 1 of this Policy.

		
	(K)
	“Non-Compete Term” shall mean (i) the Non-COC Period if the Executive is terminated in a manner that gives rise to severance benefits under Section 1, (ii) the COC Period if the Executive is terminated in a manner that gives rise to severance benefits under Section 2 and (iii) 24 months following the termination of Executive’s employment with the Company if the Executive’s employment has terminated in any other manner.   

		
	(L)
	A “Qualifying Termination” shall be defined for purposes of this Policy as a termination of Executive’s employment with the Company for any reason other than:

(i)  Death;

(ii)  Disability (as defined in this Policy);

(iii) Cause (as defined in this Policy); or

(iv) A termination by Executive without Good Reason (as defined in this Policy).

		
	(M)
	A “Section 409A Change of Control” means a “change in the ownership of the corporation,” a “change in effective control of the corporation” or a “change in the ownership of a substantial portion of the assets of the corporation,” within the meaning of Section 409A(a)(2)(A)(v) of the Code.

13

		
	(N)
	“Spinoff” means the distribution of 100% of the TriMas Corporation’s interest in Horizon Global Corporation to shareholders of TriMas Corporation common stock.

14

 

APPENDIX A 
APPLICATION OF GOLDEN PARACHUTE LIMITATIONS

1.    Cap on Payments.

		
	(a)
	General Rules.  The Code may place significant tax burdens on Executive and the Company if the total payments made to Executive due to a Change of Control exceed prescribed limits.  In order to avoid this excise tax and the related adverse tax consequences for the Company, by continuing Executive’s employment with the Company after the effective date of this Policy, Executive will be agreeing that the present value of Executive’s Total Payments will not exceed an amount equal to Executive’s Cap. 

		
	(b)
	Special Definitions.  For purposes of this Section, the following specialized terms will have the following meanings:

		
	(1)
	“Base Period Income”.  “Base Period Income” is an amount equal to Executive’s “annualized includable compensation” for the “base period” as defined in Sections 280G(d)(1) and (2) of the Code and the regulations adopted thereunder. Generally, Executive’s “annualized includable compensation” is the average of Executive’s annual taxable income from the Company for the “base period,” which is the five calendar years prior to the year in which the Change of Control occurs. These concepts are complicated and technical and all of the rules set forth in the applicable regulations apply for purposes of this Agreement.

		
	(2)
	“Cap” or “280G Cap”. “Cap” or “280G Cap” shall mean an amount equal to 2.99 times Executive’s “Base Period Income.”  This is the maximum amount which Executive may receive without becoming subject to the excise tax imposed by Section 4999 of the Code or which the Company may pay without loss of deduction under Section 280G of the Code.

		
	(3)
	“Total Payments”.  The “Total Payments” include any “payments in the nature of compensation” (as defined in Section 280G of the Code and the regulations adopted thereunder), made pursuant to this Policy or otherwise, to or for Executive’s benefit, the receipt of which is contingent on a Change of Control and to which Section 280G of the Code applies.

		
	(c)
	Calculating the Cap and Adjusting Payments. If the Company believes that these rules will result in a reduction of the payments to which Executive is entitled under this Agreement, it will so notify Executive as soon as possible. The Company will then, at its expense, retain a “Consultant” (which shall be a law firm, a certified public accounting firm, and/or a firm of recognized executive compensation consultants) to provide an opinion or opinions concerning whether Executive’s Total Payments exceed the 280G Cap discussed above. The Company will select the Consultant.  At a minimum, the opinions required by this Section must set forth the amount of Executive’s Base Period Income, the present value of the Total Payments and the amount and present value of any excess parachute payments.  If the opinions state that there would be an excess parachute payment, Executive’s payments under this Policy will be reduced to the Cap.  In the case of a reduction in the Total Payments, the Total Payments will be reduced in the following order:  (i) payments that are payable in cash that are valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable last reduced first; (ii) payments and benefits due in respect of any equity valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a), with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; (iii) payments that are payable in cash that are valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with amounts that are payable last reduced first, will next be reduced; (iv) payments and benefits due in respect of any equity valued at less than full value under Treasury Regulation Section 1.280G-1, 

15

 

Q&A 24, with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; and (v) all other non-cash benefits not otherwise described in clauses (ii) or (iv) will be next reduced pro-rata.  Any reductions made pursuant to each of clauses (i)-(v) above will be made in the following manner: first, a pro-rata reduction of cash payment and payments and benefits due in respect of any equity not subject to Section 409A, and second, a pro-rata reduction of cash payments and payments and benefits due in respect of any equity subject to Section 409A as deferred compensation.  If the Consultant selected to provide the opinions referred to above so requests in connection with the opinion required by this Section, a firm of recognized executive compensation consultants selected by the Company shall provide an opinion, upon which such Consultant may rely, as to the reasonableness of any item of compensation as reasonable compensation for services rendered before or after the Change of Control.  The Company will make payments to Executive, at the times stated above, in the maximum amount that it believes, in its discretion, may be paid without exceeding the Cap.  If it is ultimately determined, pursuant to the opinion referred to above or by the Internal Revenue Service, that a greater payment should have been made to Executive, the Company shall pay Executive the amount of the deficiency, together with interest thereon from the date such amount should have been paid to the date of such payment, at the rate used to determine the present value of the Total Payments, so that Executive will have received or be entitled to receive the maximum amount to which Executive is entitled under this Agreement.  Payment of any deficiency and interest determined under this Section 1(c) shall be made by the last day of the calendar year in which is received either the opinions called for above or the Internal Revenue Service determination that a deficiency exists.

		
	(d)
	Effect of Repeal.  In the event that the provisions of Sections 280G and 4999 of the Code are repealed without succession, this Section shall be of no further force or effect.

16

 

APPENDIX B 
ERISA ATTACHMENT TO HORIZON GLOBAL CORPORATION 
EXECUTIVE SEVERANCE/CHANGE OF CONTROL POLICY

The Horizon Global Corporation Executive Severance/Change of Control Policy to which this Appendix B is attached (the “Policy”) is intended to constitute an unfunded plan maintained primarily for the purpose of providing benefits for a select group of management or highly compensated employees under Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).  Notwithstanding any contrary provisions in the Policy, the Policy is subject to the provisions set forth below.
1.    Plan Administrator and Named Fiduciary.  The Plan Administrator and Named Fiduciary of the Plan for purposes of ERISA shall be Horizon Global Corporation, or any successor thereto.  The address of the Plan Administrator is 39400 Woodward Avenue, Suite 100, Bloomfield Hills, MI 48304.  The Plan Administrator shall have absolute discretion to administer the Plan, including but not limited to questions of construction, interpretation and eligibility under the Plan.
2.    Claims Procedure.  Claims for benefits under the Policy shall be processed in accordance with the Horizon Global Corporation Alternative Dispute Resolution Policy (the “ADR Policy”), subject, however, to the modifications described below.
(a)    Mediation.  If an Executive is unable to resolve a dispute over benefits under the Policy through internal human resource channels, he or she must request mediation of the dispute.  The decision of the mediator shall be delivered to the Executive electronically or by mail within 90 days after the Executive’s request for mediation, unless circumstances require an extension.  The need for an extension shall be communicated to the Executive before the expiration of the initial 90 day period.  The extension may not exceed 90 days.
If the mediator denies the Executive’s claim for benefits, the mediator shall provide, in written or electronic form, a notice of a claim denial, which sets forth:
		
	(1)
	the specific reasons for the denial;

		
	(2)
	reference to specific provisions of the Policy upon which the denial is based;

		
	(3)
	a description of any additional material or information necessary for the Executive to perfect his or her claim, along with an explanation of why such material or information is necessary; and

		
	(4)
	an explanation of claim review procedures under the Policy and the time limits applicable to such procedures.

Any such claim denial notice shall be written in a manner that may be understood without legal or actuarial counsel.
(b)    Arbitration.
		
	(1)
	An Executive whose claim for benefits has been wholly or partially denied by the mediator may request arbitration of such denial.  The request for arbitration must be in written or electronic form, and delivered to the Plan Administrator within 60 days following the denial of the claim by the mediator.

The request should set forth the reasons why the Executive believes the denial of his or her claim is incorrect.  The Executive shall be entitled to submit such issues, comments, 

17

 

documents, or records as the Executive shall consider relevant to a determination of the claim, without regard to whether such information was submitted to or considered by the mediator. Prior to submitting such request, the Executive shall be provided, upon request and free of charge, reasonable access to, and copies of, such documents, records, and other information that are relevant to the claim.
		
	(2)
	The Executive may, at all stages of review, be represented by counsel, legal or otherwise, of his or her choice, provided that the fees and expenses of the Executive’s counsel shall be borne by the Executive.

		
	(3)
	The Plan Administrator’s decision with respect to any such review shall be delivered electronically or in writing to the Executive no later than 60 days following receipt by the Plan Administrator of the Executive’s request, unless special circumstances, such as the need to hold a hearing, require an extension of time for processing.  If an extension is needed, the Plan Administrator shall, before the end of the initial review period, give the Executive written notice of the special circumstances requiring the extension and the date by which he or she expects a decision will be rendered. In any event, the Plan Administrator must provide the Executive with written or electronic notification of the decision on review no later than 120 days after receipt of the Executive’s request.

In the case of an adverse benefit determination by the arbitrator, the notification shall set forth the information described in Section (a)(1) and (2) above, a statement that the Executive is entitled to receive, upon request and at no charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claim, a description of any voluntary appeal procedure offered by the Policy, and the Executive’s right to obtain information about the appeals procedure.

(c)    Time Limits Affecting Jurisdiction.  The Plan Administrator shall not entertain a claim or a request for review unless it is filed timely in the manner specified by subsection (a) or (b) above, as applicable, which is a condition precedent to obtaining review by the Plan Administrator.  The period of time within which the benefit determination, or an appeal of a benefit determination, is required to be made shall begin at the time the claim or appeal is filed and without regard to whether all the information necessary to make a determination accompanies the filing.  If the period of review is extended because of the Executive’s failure to submit all necessary information, the period for making the determination shall be tolled from the date the notice of extension is sent to the Executive to the date on which the Executive responds to the request. 
(d)    Horizon Alternative Dispute Resolution Policy Process.  An arbitrator selected pursuant to the ADR Policy, as modified above, shall not have jurisdiction or authority to change, add to or subtract from any of the provisions of the Policy.  The arbitrator’s sole authority shall be to interpret or apply the provisions of the Policy, and the arbitrator shall have the power to compel attendance of witnesses at the hearing.  The arbitrator shall be appointed upon mutual agreement of the Corporation and the Executive pursuant to the arbitration rules referenced above.  Once an Executive commences arbitration proceedings, the Executive shall not be permitted to terminate the arbitration proceedings without the express written consent of the Corporation.  Any court having jurisdiction may enter a judgment based upon such arbitration.  All decisions of the arbitrator shall be final and binding on the Executive and the Corporation without appeal to any court.  The costs of the arbitration shall be split equally between the parties.
3.    Non-alienation of Benefits.  Except in so far as this provision may be contrary to applicable law, no sale, transfer, alienation, assignment, pledge collateralization, or attachment of any benefits under the Policy shall be valid or recognized by the Corporation.

18

IN WITNESS WHEREOF, the Company has adopted this Horizon Global Corporation Executive Severance/Change of Control Policy, effective as of July 1, 2015.

HORIZON GLOBAL CORPORATION 
 
                        By:     /s/ Jay Goldbaum                

       Its:  Legal Director and Corporate Secretary    

NAI-1500354373v3 

Exhibit A
Tier Level
	
			
	Tier I Participants
	Tier II Participants
	Tier III Participants

	

Mark Zeffiro
	David Rice
Jay Goldbaum
	John Aleva
Maria Duey

    
 Termination Multipliers and Periods
	
					
	Participation Tier
	Non-COC Multiplier
	Non-COC Period
	COC Multiplier
	COC Period

	I
	2
	24 months
	3
	36 months

	II
	1
	12 months
	2
	24 months

	III
	1
	12 months
	1
	12 months

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