Document:

Exhibit 10.32

 

THERAVANCE, INC.

2008 NEW EMPLOYEE EQUITY INCENTIVE PLAN

(AS ADOPTED EFFECTIVE JANUARY 29, 2008)

(AS AMENDED JULY 21, 2009)

(AS AMENDED DECEMBER 16, 2009)

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  1.

  	
  INTRODUCTION

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  2.

  	
  ADMINISTRATION

  	
   

  	
  1

  
	
  2.1

  	
  Committee
  Composition

  	
   

  	
  1

  
	
  2.2

  	
  Committee
  Responsibilities

  	
   

  	
  1

  
	
  2.3

  	
  Committee
  for Non-Officer Grants

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  3.

  	
  SHARES
  AVAILABLE FOR GRANTS

  	
   

  	
  2

  
	
  3.1

  	
  Basic
  Limitation

  	
   

  	
  2

  
	
  3.2

  	
  Shares
  Returned to Reserve

  	
   

  	
  2

  
	
  3.3

  	
  Dividend
  Equivalents

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  4.

  	
  ELIGIBILITY

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  5.

  	
  OPTIONS

  	
   

  	
  2

  
	
  5.1

  	
  Stock
  Option Agreement

  	
   

  	
  2

  
	
  5.2

  	
  Number
  of Shares

  	
   

  	
  3

  
	
  5.3

  	
  Exercise
  Price

  	
   

  	
  3

  
	
  5.4

  	
  Exercisability
  and Term

  	
   

  	
  3

  
	
  5.5

  	
  Modification
  or Assumption of Options

  	
   

  	
  3

  
	
  5.6

  	
  Buyout
  Provisions

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  6.

  	
  PAYMENT
  FOR OPTION SHARES

  	
   

  	
  3

  
	
  6.1

  	
  General
  Rule

  	
   

  	
  3

  
	
  6.2

  	
  Surrender
  of Stock

  	
   

  	
  3

  
	
  6.3

  	
  Net
  Exercise

  	
   

  	
  4

  
	
  6.4

  	
  Exercise/Sale

  	
   

  	
  4

  
	
  6.5

  	
  Other
  Forms of Payment

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  7.

  	
  RESTRICTED
  SHARES

  	
   

  	
  4

  
	
  7.1

  	
  Restricted
  Stock Agreement

  	
   

  	
  4

  
	
  7.2

  	
  Payment
  for Awards

  	
   

  	
  4

  
	
  7.3

  	
  Vesting
  Conditions

  	
   

  	
  4

  
	
  7.4

  	
  Voting
  and Dividend Rights

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  8.

  	
  STOCK
  UNITS

  	
   

  	
  4

  
	
  8.1

  	
  Stock
  Unit Agreement

  	
   

  	
  4

  
	
  8.2

  	
  Payment
  for Awards

  	
   

  	
  5

  
	
  8.3

  	
  Vesting
  Conditions

  	
   

  	
  5

  
	
  8.4

  	
  Voting
  and Dividend Rights

  	
   

  	
  5

  
	
  8.5

  	
  Form and
  Time of Settlement of Stock Units

  	
   

  	
  5

  
	
  8.6

  	
  Death
  of Recipient

  	
   

  	
  5

  
	
  8.7

  	
  Creditors’
  Rights

  	
   

  	
  5

  

 

i

 

	
  ARTICLE
  9.

  	
  CHANGE
  IN CONTROL

  	
   

  	
  6

  
	
  9.1

  	
  Effect
  of Change in Control

  	
   

  	
  6

  
	
  9.2

  	
  Acceleration

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  10.

  	
  PROTECTION
  AGAINST DILUTION

  	
   

  	
  6

  
	
  10.1

  	
  Adjustments

  	
   

  	
  6

  
	
  10.2

  	
  Dissolution
  or Liquidation

  	
   

  	
  7

  
	
  10.3

  	
  Reorganizations

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  11.

  	
  AWARDS
  UNDER OTHER PLANS

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  12.

  	
  LIMITATION
  ON RIGHTS

  	
   

  	
  8

  
	
  12.1

  	
  Retention
  Rights

  	
   

  	
  8

  
	
  12.2

  	
  Stockholders’
  Rights

  	
   

  	
  8

  
	
  12.3

  	
  Regulatory
  Requirements

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  13.

  	
  WITHHOLDING
  TAXES

  	
   

  	
  8

  
	
  13.1

  	
  General

  	
   

  	
  8

  
	
  13.2

  	
  Share
  Withholding

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  14.

  	
  FUTURE
  OF THE PLAN

  	
   

  	
  9

  
	
  14.1

  	
  Term
  of the Plan

  	
   

  	
  9

  
	
  14.2

  	
  Amendment
  or Termination

  	
   

  	
  9

  
	
  14.3

  	
  Stockholder
  Approval

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 15.

  	
  DEFINITIONS

  	
   

  	
  9

  

 

ii

 

THERAVANCE, INC.

2008 NEW EMPLOYEE EQUITY INCENTIVE PLAN

 

ARTICLE 1.          INTRODUCTION.

 

The Plan was adopted by the Board effective January 29,
2008.  The purpose of the Plan is to
promote the long-term success of the Corporation and the creation of
stockholder value by (a) encouraging Employees to focus on critical
long-range objectives, (b) encouraging the attraction and retention of
Employees with exceptional qualifications and (c) linking Employees
directly to stockholder interests through increased stock ownership.  The Plan seeks to achieve this purpose by
providing for Awards in the form of Restricted Shares, Stock Units, or Options
(which shall be NSOs).

 

The Plan is designed to attract new employees and is
intended to satisfy the requirements of Nasdaq Marketplace Rule 5635.

 

The Plan shall be governed by, and construed in
accordance with, the laws of the State of Delaware (except their choice-of-law
provisions).

 

ARTICLE 2.          ADMINISTRATION.

 

2.1          Committee
Composition.  The Committee shall administer the Plan.  The Committee shall consist exclusively of
two or more directors of the Corporation, who shall be appointed by the Board.  In addition, each member of the Committee
shall meet the following requirements:

 

(a)           Any listing standards prescribed by
the principal securities market on which the Corporation’s equity securities
are traded;

 

(b)           Such requirements as the Securities
and Exchange Commission may establish for administrators acting under plans
intended to qualify for exemption under Rule 16b-3 (or its successor)
under the Exchange Act; and

 

(c)           Any other requirements imposed by
applicable law, regulations or rules.

 

2.2          Committee
Responsibilities.  The Committee shall (a) select the
Employees who are to receive Awards under the Plan, (b) determine the
type, number, vesting requirements and other features and conditions of such
Awards, (c) interpret the Plan, (d) make all other decisions relating
to the operation of the Plan and (e) carry out any other duties delegated
to it by the Board.  The Committee may
adopt such rules or guidelines as it deems appropriate to implement the
Plan.  The Committee’s determinations
under the Plan shall be final and binding on all persons.

 

2.3          Committee
for Non-Officer Grants.  The Board may also appoint a
secondary committee of the Board, which shall be composed of one or more
directors of the 

 

 

Corporation who need not
satisfy the requirements of Section 2.1. 
Such secondary committee may administer the Plan with respect to
Employees who are not considered executive officers of the Corporation under
section 16 of the Exchange Act, may grant Awards under the Plan to such
Employees and may determine all features and conditions of such Awards.  Within the limitations of this Section 2.3,
any reference in the Plan to the Committee shall include such secondary
committee.

 

ARTICLE 3.          SHARES
AVAILABLE FOR GRANTS.

 

3.1          Basic
Limitation.  Common Shares issued pursuant to the Plan may
be authorized but unissued shares or treasury shares.  The aggregate number of Common Shares issued
under the Plan shall not exceed (a) 700,000(1) plus (b) the
additional Common Shares described in Section 3.2.  The number of Common Shares that are subject
to Awards outstanding at any time under the Plan shall not exceed the number of
Common Shares that then remain available for issuance under the Plan.  The limitations of this Section 3.1
shall be subject to adjustment pursuant to Article 10.

 

3.2          Shares
Returned to Reserve.  If Options or Stock Units are forfeited or
terminate for any other reason before being exercised or settled, then the
Common Shares subject to such Options or Stock Units shall again become
available for issuance under the Plan. 
If Stock Units are settled, then only the number of Common Shares (if
any) actually issued in settlement of such Stock Units shall reduce the number
available under Section 3.1 and the balance shall again become available
for issuance under the Plan.  If
Restricted Shares or Common Shares issued upon the exercise of Options are
reacquired by the Corporation pursuant to a forfeiture provision or for any
other reason, then such Common Shares shall again become available for issuance
under the Plan.  Shares not issued or delivered
as a result of the net exercise of an Option shall again become available for
issuance under the Plan.

 

3.3          Dividend
Equivalents.  Any dividend equivalents paid or credited
under the Plan shall not be applied against the number of Common Shares that
may be issued under the Plan, whether or not such dividend equivalents are
converted into Stock Units.

 

ARTICLE 4.          ELIGIBILITY.

 

Only Employees shall be eligible for the grant of
Restricted Shares, Stock Units, or NSOs.

 

ARTICLE 5.          OPTIONS.

 

5.1          Stock
Option Agreement.  Each grant of an Option under the Plan shall
be evidenced by a Stock Option Agreement between the Optionee and the
Corporation.  Such Option shall be
subject to all applicable terms of the Plan and may be subject to any other
terms that are not inconsistent with the Plan. 
The provisions of the various Stock Option Agreements entered into under
the Plan need not be identical.  Options
may be granted in consideration of a reduction in the Optionee’s other
compensation.  A Stock Option Agreement
may provide that a 

 

(1) Exhibit A includes a schedule
of the initial share reserve and any subsequent increases in the reserve.

 

2

 

new Option will be granted automatically to
the Optionee when he or she exercises a prior Option and pays the Exercise
Price in the form described in Section 6.2.

 

5.2          Number
of Shares.  Each Stock Option Agreement shall specify the
number of Common Shares subject to the Option and shall provide for the
adjustment of such number in accordance with Article 10.

 

5.3          Exercise
Price.  Each Stock Option Agreement shall specify the
Exercise Price; provided that the Exercise Price shall in no event be less than
100% of the Fair Market Value of a Common Share on the date of grant.

 

5.4          Exercisability
and Term.  Each Stock Option Agreement shall specify the
date or event when all or any installment of the Option is to become
exercisable.  The Stock Option Agreement
shall also specify the term of the Option. 
A Stock Option Agreement may provide for accelerated exercisability in
the event of the Optionee’s death, disability or retirement or other events and
may provide for expiration prior to the end of its term in the event of the
termination of the Optionee’s Service.

 

5.5          Modification
or Assumption of Options.  Within the limitations of the
Plan, the Committee may modify, extend, or assume outstanding options.  The foregoing notwithstanding, no
modification of an Option shall, without the consent of the Optionee, alter or
impair his or her rights or obligations under such Option. Notwithstanding
anything in this Plan to the contrary, and except for the adjustments provided
in Articles 9 and 10, neither the Committee nor any other person may decrease
the exercise price for any outstanding Option after the date of grant nor cancel
or allow an optionee to surrender an outstanding Option to the Corporation as
consideration for the grant of a new Option with a lower exercise price or the
grant of another type of Award the effect of which is to reduce the exercise
price of any outstanding Option.

 

5.6          Buyout
Provisions.  The Committee may at any time (a) offer
to buy out for a payment in cash or cash equivalents an Option previously
granted or (b) authorize an Optionee to elect to cash out an Option
previously granted, in either case at such time and based upon such terms and
conditions as the Committee shall establish.

 

ARTICLE 6.          PAYMENT FOR
OPTION SHARES.

 

6.1          General
Rule.  The entire Exercise Price of Common Shares
issued upon exercise of Options shall be payable in cash or cash equivalents at
the time when such Common Shares are purchased, except that the Committee at
its sole discretion may accept payment of the Exercise Price in any other form(s) described
in this Article 6.  However, if the
Optionee is an executive officer of the Corporation, he or she may pay the
Exercise Price in a form other than cash or cash equivalents only to the extent
permitted by section 13(k) of the Exchange Act.

 

6.2          Surrender
of Stock.  With the Committee’s consent, all or any part
of the Exercise Price may be paid by surrendering, or attesting to the
ownership of, Common Shares that are already owned by the Optionee.  Such Common Shares shall be valued at their
Fair Market Value on the date when the new Common Shares are purchased under
the Plan.

 

3

 

6.3          Net
Exercise.  With the Committee’s consent, all or any part
of the Exercise Price may be paid by requesting that the Corporation withhold
Common Shares that otherwise would be issued in connection with the Option
exercise.  Such Common Shares shall be
valued at their Fair Market Value on the date when the Option is exercised.

 

6.4          Exercise/Sale. 
With the Committee’s consent, all or any part of the Exercise Price and
any withholding taxes may be paid by delivering (on a form prescribed by the
Corporation) an irrevocable direction to a securities broker approved by the
Corporation to sell all or part of the Common Shares being purchased under the
Plan and to deliver all or part of the sales proceeds to the Corporation.

 

6.5          Other
Forms of Payment.  With the Committee’s consent, all or any part
of the Exercise Price and any withholding taxes may be paid in any other form
that is consistent with applicable laws, regulations and rules.

 

ARTICLE 7.          RESTRICTED
SHARES.

 

7.1          Restricted
Stock Agreement.  Each grant of Restricted Shares under the
Plan shall be evidenced by a Restricted Stock Agreement between the recipient
and the Corporation.  Such Restricted
Shares shall be subject to all applicable terms of the Plan and may be subject
to any other terms that are not inconsistent with the Plan.  The provisions of the various Restricted
Stock Agreements entered into under the Plan need not be identical.

 

7.2          Payment
for Awards.  Restricted Shares may be sold or awarded
under the Plan for such consideration as the Committee may determine, including
(without limitation) cash, cash equivalents, property, full-recourse promissory
notes, past services and future services. 
If the Participant is an executive officer of the Corporation, he or she
may pay for Restricted Shares with a promissory note only to the extent
permitted by section 13(k) of the Exchange Act.  Within the limitations of the Plan, the
Committee may accept the cancellation of outstanding options in return for the
grant of Restricted Shares.

 

7.3          Vesting
Conditions.  Each Award of Restricted Shares may or may
not be subject to vesting.  Vesting shall
occur, in full or in installments, upon satisfaction of the conditions
specified in the Restricted Stock Agreement. 
A Restricted Stock Agreement may provide for accelerated vesting in the
event of the Participant’s death, disability or retirement or other events.

 

7.4          Voting
and Dividend Rights.  The holders of Restricted Shares awarded
under the Plan shall have the same voting, dividend and other rights as the
Corporation’s other stockholders.  A
Restricted Stock Agreement, however, may require that the holders of Restricted
Shares invest any cash dividends received in additional Restricted Shares.  Such additional Restricted Shares shall be
subject to the same conditions and restrictions as the Award with respect to
which the dividends were paid.

 

ARTICLE 8.          STOCK UNITS.

 

8.1          Stock
Unit Agreement.  Each grant of Stock Units under the Plan
shall be evidenced by a Stock Unit Agreement between the recipient and the
Corporation.  Such Stock

 

4

 

Units shall be subject to all applicable
terms of the Plan and may be subject to any other terms that are not
inconsistent with the Plan.  The
provisions of the various Stock Unit Agreements entered into under the Plan
need not be identical.  Stock Units may
be granted in consideration of a reduction in the recipient’s other
compensation.

 

8.2          Payment
for Awards.  To the extent that an Award is granted in the
form of Stock Units, no cash consideration shall be required of the Award
recipients.

 

8.3          Vesting
Conditions.  Each Award of Stock Units may or may not be
subject to vesting.  Vesting shall occur,
in full or in installments, upon satisfaction of the conditions specified in
the Stock Unit Agreement.  A Stock Unit
Agreement may provide for accelerated vesting in the event of the Participant’s
death, disability or retirement or other events.

 

8.4          Voting
and Dividend Rights.  The holders of Stock Units shall have no
voting rights.  Prior to settlement or
forfeiture, any Stock Unit awarded under the Plan may, at the Committee’s
discretion, carry with it a right to dividend equivalents.  Such right entitles the holder to be credited
with an amount equal to all cash dividends paid on one Common Share while the
Stock Unit is outstanding.  Dividend
equivalents may be converted into additional Stock Units.  Settlement of dividend equivalents may be
made in the form of cash, in the form of Common Shares, or in a combination of
both.  Prior to distribution, any
dividend equivalents that are not paid shall be subject to the same conditions
and restrictions as the Stock Units to which they attach.

 

8.5          Form and
Time of Settlement of Stock Units.  Settlement of
vested Stock Units may be made in the form of (a) cash, (b) Common
Shares or (c) any combination of both, as determined by the
Committee.  The actual number of Stock
Units eligible for settlement may be larger or smaller than the number included
in the original Award, based on predetermined performance factors.  Methods of converting Stock Units into cash
may include (without limitation) a method based on the average Fair Market
Value of Common Shares over a series of trading days.  Vested Stock Units may be settled in a lump
sum or in installments.  The distribution
may occur or commence when all vesting conditions applicable to the Stock Units
have been satisfied or have lapsed, or it may be deferred to any later
date.  The amount of a deferred
distribution may be increased by an interest factor or by dividend equivalents.  Until an Award of Stock Units is settled, the
number of such Stock Units shall be subject to adjustment pursuant to Article 10.

 

8.6          Death
of Recipient.  Any Stock Units Award that becomes payable
after the recipient’s death shall be distributed to the recipient’s beneficiary
or beneficiaries.  Each recipient of a
Stock Units Award under the Plan shall designate one or more beneficiaries for
this purpose by filing the prescribed form with the Corporation.  A beneficiary designation may be changed by
filing the prescribed form with the Corporation at any time before the Award
recipient’s death.  If no beneficiary was
designated or if no designated beneficiary survives the Award recipient, then
any Stock Units Award that becomes payable after the recipient’s death shall be
distributed to the recipient’s estate.

 

8.7          Creditors’
Rights.  A holder of Stock Units shall have no rights
other than those of a general creditor of the Corporation.  Stock Units represent an unfunded and 

 

5

 

unsecured obligation of the Corporation,
subject to the terms and conditions of the applicable Stock Unit Agreement.

 

ARTICLE 9.          CHANGE IN
CONTROL

 

9.1          Effect
of Change in Control.  In the event of any Change in Control, each
outstanding Award shall automatically accelerate so that each such Award shall,
immediately prior to the effective date of the Change in Control, become fully
exercisable for all of the Common Shares at the time subject to such Award and
may be exercised for any or all of those shares as fully-vested Common
Shares.  However, an outstanding Award
shall not so accelerate if and to the extent
such Award is, in connection with the Change in Control, either to be assumed
by the successor corporation (or parent thereof) or to be replaced with a
comparable Award for shares of the capital stock of the successor corporation
(or parent thereof).  The determination
of Award comparability shall be made by the Committee, and its determination
shall be final, binding and conclusive.

 

9.2          Acceleration. 
The Committee shall have the discretion, exercisable either at the time
the Award is granted or at any time while the Award remains outstanding, to
provide for the automatic acceleration of vesting upon the occurrence of a
Change in Control, whether or not the Award is to be assumed or replaced in the
Change in Control.

 

ARTICLE 10.       PROTECTION
AGAINST DILUTION.

 

10.1        Adjustments. 
In the event of a subdivision of the outstanding Common Shares, a
declaration of a dividend payable in Common Shares or a combination or consolidation
of the outstanding Common Shares (by reclassification or otherwise) into a
lesser number of Common Shares, corresponding adjustments shall automatically
be made in each of the following:

 

(a)           The number of Options, Restricted
Shares and Stock Units available for future Awards under Article 3;

 

(b)           The number of Common Shares covered
by each outstanding Option;

 

(c)           The Exercise Price under each
outstanding Option; or

 

(d)           The number of Stock Units included in
any prior Award that has not yet been settled.

 

In the event of a declaration of an extraordinary
dividend payable in a form other than Common Shares in an amount that has a
material effect on the price of Common Shares, a recapitalization, a spin-off
or a similar occurrence, the Committee shall make such adjustments as it, in
its sole discretion, deems appropriate in one or more of the foregoing.  Except as provided in this Article 10, a
Participant shall have no rights by reason of any issuance by the Corporation
of stock of any class or securities convertible into stock of any class, any
subdivision or consolidation of shares of stock of any class, the payment of
any stock dividend or any other increase or decrease in the number of shares of
stock of any class.

 

6

 

10.2        Dissolution
or Liquidation.  To the extent not previously exercised or
settled, Options, and Stock Units shall terminate immediately prior to the
dissolution or liquidation of the Corporation.

 

10.3        Reorganizations. 
In the event that the Corporation is a party to a merger or
consolidation, all outstanding Awards shall be subject to the agreement of
merger or consolidation.  Such agreement
shall provide for one or more of the following:

 

(a)           The continuation of such outstanding
Awards by the Corporation (if the Corporation is the surviving corporation).

 

(b)           The assumption of such outstanding
Awards by the surviving corporation or its parent (in a manner that complies
with section 424(a) of the Code with respect to Options).

 

(c)           The substitution by the surviving
corporation or its parent of new awards for such outstanding Awards (in a
manner that complies with section 424(a) of the Code with respect to
Options).

 

(d)           Full exercisability of such
outstanding Awards and full vesting of the Common Shares subject to such
Awards, followed by the cancellation of such Awards.  The full exercisability of such Awards and
full vesting of the Common Shares subject to such Awards may be contingent on
the closing of such merger or consolidation. 
The Participants shall be able to exercise such Awards during a period
of not less than five full business days preceding the closing date of such
merger or consolidation, unless (i) a shorter period is required to permit
a timely closing of such merger or consolidation and (ii) such shorter
period still offers the Participants a reasonable opportunity to exercise such
Awards.  Any exercise of such Awards
during such period may be contingent on the closing of such merger or
consolidation.

 

(e)           The cancellation of such outstanding
Awards and a payment to the Participants equal to the excess of (i) the
Fair Market Value of the Common Shares subject to such Awards (whether or not
such Awards are then exercisable or such Common Shares are then vested) as of
the closing date of such merger or consolidation over (ii) their Exercise
Price.  Such payment shall be made in the
form of cash, cash equivalents, or securities of the surviving corporation or
its parent with a Fair Market Value equal to the required amount.  Such payment may be made in installments and
may be deferred until the date or dates when such Awards would have become
exercisable or such Common Shares would have vested.  Such payment may be subject to vesting based on
the Participant’s continuing service, provided that the vesting schedule shall
not be less favorable to the Participant than the schedule under which such
Award would have become exercisable or such Common Shares would have
vested.  If the Exercise Price of the
Common Shares subject to such Awards exceeds the Fair Market Value of such
Common Shares, then such Awards may be cancelled without making a payment to
the Participants.  For purposes of this
Subsection (e), the Fair Market Value of any security shall be determined
without regard to any vesting conditions that may apply to such security.

 

7

 

ARTICLE 11.       AWARDS UNDER
OTHER PLANS.

 

The Corporation may grant awards under other plans or
programs.  Such awards may be settled in
the form of Common Shares issued under this Plan.  Such Common Shares shall be treated for all
purposes under the Plan like Common Shares issued in settlement of Stock Units
and shall, when issued, reduce the number of Common Shares available under Article 3.

 

ARTICLE 12.       LIMITATION ON
RIGHTS.

 

12.1        Retention
Rights.  Neither the Plan nor any Award granted under
the Plan shall be deemed to give any individual a right to remain an
Employee.  The Corporation and its
Parents, Subsidiaries and Affiliates reserve the right to terminate the Service
of any Employee at any time, with or without cause, subject to applicable laws
and a written employment agreement (if any).

 

12.2        Stockholders’
Rights.  A Participant shall have no dividend rights,
voting rights or other rights as a stockholder with respect to any Common
Shares covered by his or her Award prior to the time when a stock certificate
for such Common Shares is issued or, if applicable, the time when he or she
becomes entitled to receive such Common Shares by filing any required notice of
exercise and paying any required Exercise Price.  No adjustment shall be made for cash
dividends or other rights for which the record date is prior to such time,
except as expressly provided in the Plan.

 

12.3        Regulatory
Requirements.  Any other provision of the Plan
notwithstanding, the obligation of the Corporation to issue Common Shares under
the Plan shall be subject to all applicable laws, rules and regulations
and such approval by any regulatory body as may be required.  The Corporation reserves the right to
restrict, in whole or in part, the delivery of Common Shares pursuant to any
Award prior to the satisfaction of all legal requirements relating to the
issuance of such Common Shares, to their registration, qualification or listing
or to an exemption from registration, qualification or listing.

 

ARTICLE 13.       WITHHOLDING
TAXES.

 

13.1        General. 
To the extent required by applicable federal, state, local or foreign
law, a Participant or his or her successor shall make arrangements satisfactory
to the Corporation for the satisfaction of any withholding tax obligations that
arise in connection with the Plan.  The
Corporation shall not be required to issue any Common Shares or make any cash
payment under the Plan until such obligations are satisfied.

 

13.2        Share
Withholding.  To the extent that applicable law subjects a
Participant to tax withholding obligations, the Committee may permit such
Participant to satisfy all or part of such obligations by having the
Corporation withhold all or a portion of any Common Shares that otherwise would
be issued to him or her or by surrendering all or a portion of any Common
Shares that he or she previously acquired. 
Such Common Shares shall be valued at their Fair Market Value on the
date when they are withheld or surrendered.

 

8

 

ARTICLE 14.       FUTURE OF THE
PLAN.

 

14.1        Term
of the Plan.  The Plan, as set forth herein, shall become
effective on the date of adoption.  The
Plan shall remain in effect until the earlier of (a) the date the Plan is
terminated under Section 14.2 or (b) the 10th anniversary of the date the Board adopted the Plan.

 

14.2        Amendment
or Termination.  The Board may, at any time and for any
reason, amend or terminate the Plan.  No
Awards shall be granted under the Plan after the termination thereof.  The termination of the Plan, or any amendment
thereof, shall not affect any Award previously granted under the Plan.

 

14.3        Stockholder
Approval.  Approval of the Corporation’s stockholders
shall be required only to the extent required by applicable laws, regulations
or rules.

 

ARTICLE 15.       DEFINITIONS.

 

15.1        “Affiliate” means any entity other than a Subsidiary, if the
Corporation and/or one or more Subsidiaries own not less than 50% of such
entity.

 

15.2        “Award” means any award of an Option, a Restricted Share or a
Stock Unit under the Plan.

 

15.3        “Board” means the Corporation’s Board of Directors, as
constituted from time to time.

 

15.4        “Change in Control” shall mean:

 

(a)           The consummation of a merger or
consolidation of the Corporation with or into another entity or any other
corporate reorganization, if persons who were not stockholders of the
Corporation immediately prior to such merger, consolidation or other
reorganization own immediately after such merger, consolidation or other
reorganization 50% or more of the voting power of the outstanding securities of
each of (i) the continuing or surviving entity and (ii) any direct or
indirect parent corporation of such continuing or surviving entity;

 

(b)           The sale, transfer or other
disposition of all or substantially all of the Corporation’s assets;

 

(c)           A change in the composition of the
Board, as a result of which fewer than 50% of the incumbent directors are
directors who either:

 

(i)            Had been directors of the
Corporation on the date 24 months prior to the date of such change in the
composition of the Board (the “Original Directors”) or

 

(ii)           Were appointed to the Board, or
nominated for election to the Board, with the affirmative votes of at least a
majority of the aggregate of (A) the Original Directors who were in office
at the time of their appointment or nomination and (B) the directors 

 

9

 

whose appointment or nomination was
previously approved in a manner consistent with this Paragraph (ii); or

 

(d)           Any transaction as a result of which
any person is the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Corporation
representing at least 50% of the total voting power represented by the
Corporation’s then outstanding voting securities.  For purposes of this Paragraph (d), the term “person”
shall have the same meaning as when used in sections 13(d) and 14(d) of
the Exchange Act but shall exclude (i) a trustee or other fiduciary
holding securities under an employee benefit plan of the Corporation or of a
Parent or Subsidiary and (ii) a corporation owned directly or indirectly
by the stockholders of the Corporation in substantially the same proportions as
their ownership of the common stock of the Corporation.

 

Except with respect to a GSK Change In Control
(defined below), (i) any stock purchase by SmithKline Beecham Corporation,
a Pennsylvania corporation (“GSK”), pursuant to the Class A Common Stock
Purchase Agreement dated as of March 30, 2004 or (ii) the exercise by
GSK of any of its rights under the Amended and Restated Governance Agreement
dated as of June 4, 2004 among
the Corporation, GSK, GlaxoSmithKline plc and Glaxo Group Limited (the “Governance
Agreement”) to representation on the Board (and its committees) or (iii) any
acquisition by GSK of securities of the Corporation (whether by merger, tender
offer, private or market purchases or otherwise) not prohibited by the
Governance Agreement shall not constitute a Change in Control.  A transaction shall not constitute a Change
in Control if its sole purpose is to change the state of the Corporation’s
incorporation or to create a holding company that will be owned in
substantially the same proportions by the persons who held the Corporation’s
securities immediately before such transaction. A “GSK Change In Control” shall
mean the acquisition by GSK of the Corporation’s Voting Stock (as defined in
the Governance Agreement) that would bring GSK’s Percentage Interest (as
defined in the Governance Agreement) to 100% in compliance with the provisions
of the Governance Agreement.

 

15.5        “Code” means the Internal Revenue Code of 1986, as amended.

 

15.6        “Committee” means a committee of the Board, as described in Article 2.

 

15.7        “Common Share” means one share of the common stock of the
Corporation.

 

15.8        “Corporation” means Theravance, Inc., a Delaware
corporation.

 

15.9        “Consultant” means a consultant or adviser who provides bona
fide services to the Corporation, a Parent, a Subsidiary or an Affiliate as an
independent contractor.

 

15.10      “Employee” means a common-law employee of the Corporation, a
Parent, a Subsidiary or an Affiliate who is newly hired as a
employee by the Corporation, or who is rehired following a bona fide period of
interruption of employment, including persons who become new employees of the
Corporation, a Parent, a Subsidiary or an Affiliate in connection with a merger
or acquisition.

 

15.11      “Exchange Act” means the Securities Exchange Act of 1934, as
amended.

 

10

 

15.12      “Exercise Price,” in the case of an Option, means the amount
for which one Common Share may be purchased upon exercise of such Option, as
specified in the applicable Stock Option Agreement.

 

15.13      “Fair Market Value” means the closing selling price of one
Common Share as reported on Nasdaq, and if not available, then it shall be
determined by the Committee in good faith on such basis as it deems
appropriate.  Whenever possible, the
determination of Fair Market Value by the Committee shall be based on the
prices reported in The Wall Street Journal.  Such determination shall be conclusive and
binding on all persons.

 

15.14      “NSO” means a stock option not described in sections 422
or 423 of the Code.

 

15.15      “Option” means an NSO granted under the Plan and entitling
the holder to purchase Common Shares.

 

15.16      “Optionee” means an individual or estate who holds an Option.

 

15.17      “Parent” means any corporation (other than the Corporation)
in an unbroken chain of corporations ending with the Corporation, if each of
the corporations other than the Corporation owns stock possessing 50% or more
of the total combined voting power of all classes of stock in one of the other
corporations in such chain.  A
corporation that attains the status of a Parent on a date after the adoption of
the Plan shall be considered a Parent commencing as of such date.

 

15.18      “Participant” means an individual or estate who holds an
Award.

 

15.19      “Plan” means this Theravance, Inc. 2008 New Employee
Equity Incentive Plan, as amended from time to time.

 

15.20      “Restricted Share” means a Common Share awarded under the
Plan.

 

15.21      “Restricted Stock Agreement” means the agreement between the
Corporation and the recipient of a Restricted Share that contains the terms,
conditions and restrictions pertaining to such Restricted Share.

 

15.22      “Service” means service as an Employee or Consultant.

 

15.23      “Stock Option Agreement” means the agreement between the
Corporation and an Optionee that contains the terms, conditions and
restrictions pertaining to his or her Option.

 

15.24      “Stock Unit” means a bookkeeping entry representing the
equivalent of one Common Share, as awarded under the Plan.

 

15.25      “Stock Unit Agreement” means the agreement between the
Corporation and the recipient of a Stock Unit that contains the terms,
conditions and restrictions pertaining to such Stock Unit.

 

11

 

15.26      “Subsidiary” means any corporation (other than the
Corporation) in an unbroken chain of corporations beginning with the
Corporation, if each of the corporations other than the last corporation in the
unbroken chain owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such
chain.  A corporation that attains the
status of a Subsidiary on a date after the adoption of the Plan shall be
considered a Subsidiary commencing as of such date.

 

12

 

EXHIBIT A

 

SCHEDULE OF SHARES RESERVED FOR
ISSUANCE UNDER THE PLAN

 

	
  Date
  of Board/Committee

  Approval

  	
   

  	
  Number of Shares Added

  	
   

  	
  Cumulative Number of

  Shares

  
	
  January 29, 2008

  	
   

  	
  Not Applicable

  	
   

  	
  500,000

  
	
  July 21, 2009

  	
   

  	
  200,000

  	
   

  	
  700,000Exhibit 10.1

 

ACCURIDE CORPORATION

 

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement (the “Agreement”) is made as of
                      ,
201    by and among
Accuride Corporation, a Delaware corporation (the “Company”) and
                        
(the “Indemnitee).

 

RECITALS

 

The Company desires to attract and retain the services of highly
qualified individuals, such as Indemnitee, and to indemnify its directors,
officers and key employees so as to provide them with the maximum protection
permitted by law.

 

The Bylaws of the Company (the “Bylaws”) require indemnification
of the officers and directors of the Company, and Indemnitee may also be
entitled to indemnification pursuant to the General Corporation Law of the
State of Delaware (the “DGCL”).

 

The Bylaws and the DGCL expressly provide that the indemnification
provisions set forth therein are not exclusive, and thereby contemplate that
contracts may be entered into between the Company and members of the board of
directors, officers and other persons with respect to indemnification.

 

The Company and Indemnitee recognize the increasing difficulty in
obtaining liability insurance for directors, officers and key employees, the
significant increases in the cost of such insurance and the general reductions
in the coverage of such insurance.

 

The Company and Indemnitee further recognize the substantial increase
in corporate litigation in general, subjecting directors, officers and key
employees to expensive litigation risks at the same time as the availability
and coverage of liability insurance has been severely limited.

 

Indemnitee does not regard the protection currently provided by
applicable law, the Company’s governing documents and available insurance as
adequate under the present circumstances, and Indemnitee and agents of the
Company may not be willing to serve as agents of the Company without additional
protection.

 

The Board of Directors of the Company (the “Board”) has
determined that the increased difficulty in attracting and retaining highly
qualified persons such as Indemnitee is detrimental to the best interests of
the Company’s stockholders and that the Company should act to assure Indemnitee
that there will be increased certainty of such protection in the future.

 

It is reasonable, prudent and necessary for the Company contractually
to obligate itself to indemnify, and to advance expenses on behalf of, such
persons to the fullest extent permitted by applicable law, regardless of any
amendment or revocation of the Company’s Certificate of Incorporation (the “Charter”)
or Bylaws, so that they will serve or continue to serve the Company free from
undue concern that they will not be so indemnified.

 

 

This Agreement is supplemental to and in furtherance of the
indemnification provided in the Bylaws and any resolutions adopted pursuant
thereto, and shall not be deemed a substitute therefor, nor to diminish or
abrogate any rights of Indemnitee thereunder.

 

AGREEMENT

 

In consideration of the mutual promises made in this Agreement, and for
other good and valuable consideration, receipt of which is hereby acknowledged,
the Company and Indemnitee hereby agree as follows:

 

 

1.     Indemnification.

 

(a)   Third Party Proceedings. The Company shall indemnify Indemnitee
if Indemnitee is or was a party or is threatened to be made a party to any
threatened, pending or completed action, suit, arbitration, alternate dispute
resolution mechanism, investigation, inquiry, administrative hearing or any
other actual, threatened or completed proceeding, whether civil, criminal,
administrative or investigative, by reason of the fact that Indemnitee is or
was a director, officer, employee or agent of the Company, or any subsidiary of
the Company, by reason of any action or inaction on the part of Indemnitee
while an officer or director or by reason of the fact that Indemnitee is or was
serving at the request of the Company as a director, officer, employee, agent
or trustee of another corporation, partnership, joint venture, trust or other
enterprise, in each case whether or not serving in such capacity at the time
any liability or expense is incurred for which indemnification, reimbursement
or advancement of expenses can be provided under this Agreement (any of the
foregoing, a “Proceeding”), other than a Proceeding by or in the right
of the Company, against all expenses (including attorneys’ fees), judgments,
fines and amounts paid in settlement (if such settlement is approved in advance
by the Company, which approval shall not be unreasonably withheld) actually and
reasonably incurred by Indemnitee in connection with such action, suit or
proceeding if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in or not opposed to the best interests of the
Company, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe Indemnitee’s conduct was unlawful. The termination
of any Proceeding by judgment, order, settlement, conviction, or upon a plea of
nolo contendere or its equivalent, shall not, of itself, create a presumption
that Indemnitee did not act in good faith and in a manner which Indemnitee
reasonably believed to be in or not opposed to the best interests of the
Company, or, with respect to any criminal action or proceeding, that Indemnitee
had reasonable cause to believe that Indemnitee’s conduct was unlawful.

 

(b)   Proceedings By or in the
Right of the Company.  The Company shall indemnify
Indemnitee if Indemnitee was or is, or is threatened to be made, a party to or
a participant in any Proceeding by or in right of the Company or any subsidiary
of the Company to procure a judgment in the Company’s favor, against expenses
(including attorneys’ fees) and, to the fullest extent permitted by law,
amounts paid in settlement (if such settlement is approved in advance by the
Company, which approval shall not be unreasonably withheld), in each case to
the extent actually and reasonably incurred by Indemnitee in connection with
the defense or settlement of such action or suit if Indemnitee acted in good
faith and in a manner Indemnitee reasonably believed to be in or not opposed to
the best interests of the Company and its stockholders, except that no
indemnification shall have been made in respect of any claim, issue

 

2

 

or matter as to which Indemnitee shall have been finally adjudicated by
court order or judgment to be liable to the Company in the performance of
Indemnitee’s duty to the Company and its stockholders unless and only to the
extent that the court in which such action or proceeding is or was pending
shall determine upon application that, in view of all the circumstances of the
case, Indemnitee is fairly and reasonably entitled to indemnity for such
expenses which such court shall deem proper.

 

(c)   Mandatory Payment of
Expenses.  Notwithstanding any other provision of this
Agreement, to the extent that Indemnitee has been successful on the merits or
otherwise in defense of any Proceeding referred to in Section 1(a) or
Section 1(b) or the defense of any claim, issue or matter
therein, Indemnitee shall be indemnified to the maximum extent permitted by
law, as such may be amended from time to time, against all expenses (including
attorneys’ fees) actually and reasonably incurred by Indemnitee or on
Indemnitee’s behalf in connection therewith. 
If Indemnitee is not wholly successful in such Proceeding but is
successful, on the merits or otherwise, as to one or more but less than all
claims, issues or matters in such Proceeding, the Company shall indemnify
Indemnitee against all expenses (including attorney’s fees) actually and
reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with
each successfully resolved claim, issue or matter.  For purposes of this Section 1(c) and
without limitation, the termination of any claim, issue or matter in such a
Proceeding by dismissal, with or without prejudice, shall be deemed to be a
successful result as to such claim, issue or matter.

 

(d)   Indemnification for
Expenses of a Witness.  Notwithstanding any other provision
of this Agreement, to the extent that Indemnitee is, by reason of his status as
a current or former director, officer, employee, agent or trustee of the
Company or of any other enterprise which Indemnitee is or was serving at the
request of the Company, a witness in any Proceeding to which Indemnitee is not
a party and is not threatened to be made a party, he shall be indemnified
against all expenses actually and reasonably incurred by him or on his behalf
in connection therewith.

 

2.     Contribution.

 

(a)   Whether or not the indemnification
provided in Section 1 above is available, in respect of any
Proceeding in which the Company is jointly liable with Indemnitee (or would be
if joined in such Proceeding), the Company shall pay, in the first instance, the
entire amount of any judgment or settlement of such Proceeding without
requiring Indemnitee to contribute to such payment and the Company hereby
waives and relinquishes any right of contribution it may have against
Indemnitee.  The Company shall not enter
into any settlement of any Proceeding in which the Company is jointly liable
with Indemnitee (or would be if joined in such Proceeding) unless such
settlement provides for a full and final release of all claims asserted against
Indemnitee.

 

(b)   Without diminishing or impairing the
obligations of the Company set forth in Section 2(a) above,
if, for any reason, Indemnitee shall elect or be required to pay all or any
portion of any judgment or settlement in any Proceeding in which the Company is
jointly liable with Indemnitee (or would be if joined in such Proceeding), the
Company shall contribute to the amount of expenses (including attorneys’ fees),
judgments, fines and amounts paid in

 

3

 

settlement actually and reasonably incurred and paid or payable by
Indemnitee in proportion to the relative benefits received by the Company and
all officers, directors or employees of the Company, other than Indemnitee, who
are jointly liable with Indemnitee (or would be if joined in such Proceeding),
on the one hand, and Indemnitee, on the other hand, from the transaction from
which such Proceeding arose; provided, however, that the proportion
determined on the basis of relative benefit may, to the extent necessary to
conform to law, be further adjusted by reference to the relative fault of the
Company and all officers, directors or employees of the Company other than
Indemnitee who are jointly liable with Indemnitee (or would be if joined in
such Proceeding), on the one hand, and Indemnitee, on the other hand, in
connection with the events that resulted in such expenses, judgments, fines or
settlement amounts, as well as any other equitable considerations which the law
may require to be considered.  The
relative fault of the Company and all officers, directors or employees of the
Company, other than Indemnitee, who are jointly liable with Indemnitee (or
would be if joined in such Proceeding), on the one hand, and Indemnitee, on the
other hand, shall be determined by reference to, among other things, the degree
to which their actions were motivated by intent to gain personal profit or
advantage, the degree to which their liability is primary or secondary and the
degree to which their conduct is active or passive.

 

(c)   The Company hereby agrees to fully
indemnify and hold Indemnitee harmless from any claims of contribution which
may be brought by officers, directors or employees of the Company, other than
Indemnitee, who are jointly liable with Indemnitee.

 

(d)   To the fullest extent permissible under
applicable law, if the indemnification provided for in this Agreement is
unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of
indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee,
whether for judgments, fines, penalties, excise taxes, amounts paid or to be
paid in settlement and/or for expenses (including attorneys’ fees), in
connection with any claim relating to an indemnifiable event under this
Agreement, in such proportion as is deemed fair and reasonable in light of all
of the circumstances of such Proceeding in order to reflect (i) the
relative benefits received by the Company and Indemnitee as a result of the
event(s) and/or transaction(s) giving cause to such Proceeding;
and/or (ii) the relative fault of the Company (and its directors,
officers, employees and agents) and Indemnitee in connection with such event(s) and/or
transaction(s).

 

3.     No Employment Rights. 
Nothing contained in this Agreement is intended to create in Indemnitee
any right to continued employment.  The
foregoing notwithstanding, this Agreement shall continue in force after
Indemnitee has ceased to serve as a director, officer, employee or agent of the
Company.

 

4.     Expenses; Indemnification Procedure.

 

(a)   Advancement of Expenses. The Company shall advance all expenses
incurred by Indemnitee in connection with the investigation, defense,
settlement or appeal of any Proceeding referred to in Section 1
hereof (including, but not limited to, amounts actually paid in settlement of
any such Proceeding and, to the extent not prohibited by applicable law,
payments to the Indemnitee (to the extent such Indemnitee is not an employee of
the Company) of an hourly fee of $500 per hour for each hour spent by the
Indemnitee in investigating, defending

 

4

 

against, being a witness in, participating in, or preparing to defend,
be a witness in or participate in, any such Proceeding).  Advances shall be unsecured and interest
free.  Advances shall be made without
regard to Indemnitee’s ability to repay the expenses and without regard to
Indemnitee’s ultimate entitlement to indemnification under the other provisions
of this Agreement.  Indemnitee shall
qualify for advances upon the execution and delivery to the Company of this
Agreement and Indemnitee hereby undertakes to the fullest extent required by
law to repay such amounts advanced only if, and to the extent that, it shall
ultimately be determined by a court of competent jurisdiction in a final
judgment, not subject to appeal, that Indemnitee is not entitled to be
indemnified by the Company as authorized hereby.  The right to advances under this paragraph
shall in all events continue until final disposition of any Proceeding,
including any appeal therein.  Nothing in
this Section 4(a) shall limit Indemnitee’s right to
advancement of Enforcement Expenses pursuant to Section 4(c).

 

In addition, in the event that a Change of Control (as defined below)
has occurred, the Company shall, upon the request of the Indemnitee, deposit in
an escrow account with a financial institution reasonably satisfactory to the
Indemnitee an amount equal to the expenses reasonably projected by counsel to
the Indemnitee to be incurred over the next six months in connection with
defending, or investigating or preparing to defend, any Proceeding then pending
with respect to which the Indemnitee is entitled to indemnification or
advancement of expenses, and shall, from time to time upon request of the
Indemnitee replenish the amount of such escrow deposit so that, after the date
of such additional deposit, the amount of such escrow account is at least equal
to such reasonably projected expenses over the ensuing six month period. For
purpose of this Section 4(a), a “Change of Control” shall be deemed
to have occurred if (i) any “person” (as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) (other than a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or a corporation owned directly or
indirectly by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company), is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing 35% or more of the total
voting power represented by the Company’s then outstanding Voting Securities
(as defined below); or (ii) during any period of two consecutive years,
individuals who at the beginning of such period constitute the Board of
Directors of the Company and any new director whose election by the Board of
Directors or nomination for election by the Company’s stockholders was approved
by a vote of at least two-thirds (2/3) of the directors then still in office
who either were directors at the beginning of the period or whose election or
nomination for election was previously so approved, cease for any reason to
constitute a majority thereof; or (iii) there is a merger or consolidation
of the Company with any other corporation, other than a merger or consolidation
which would result in the Voting Securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into Voting Securities of the surviving
entity) at least 65% of the total voting power represented by the Voting
Securities of the Company or such surviving entity outstanding immediately
after such merger or consolidation, or there is a complete liquidation of the Company
or a sale or disposition by the Company of (in one transaction or a series of
transactions) all or substantially all the Company’s assets.  The term “Voting Securities” means any
securities of the Company that vote generally in the election of directors.

 

5

 

(b)   Notice/Cooperation by
Indemnitee.  Indemnitee shall give the Company notice in
writing as soon as practicable of any claim made against Indemnitee for which
indemnification will or could be sought under this Agreement.  Failure of the Indemnitee to give the Company
notice of any claim made against Indemnitee for which indemnification will or
could be sought under this Agreement shall not prevent Indemnitee from
obtaining indemnification and advancement of expenses hereunder, except to the
extent (and only to the extent) failure to give such notice has increased the
damages to the Company hereunder.  Notice
to the Company shall be directed to the Chief Executive Officer of the Company
and shall be given in accordance with the provisions of Section 15(d) below.
In addition, Indemnitee shall give the Company such information and cooperation
as it may reasonably require and as shall reasonably be within Indemnitee’s
power.

 

(c)   Procedure. 
Any indemnification and advances provided for in this Agreement shall be
made no later than twenty (20) days after receipt of the written request of
Indemnitee.  If a claim under this
Agreement, under any statute, or under any provision of the Charter or Bylaws
providing for indemnification, is not paid in full by the Company within twenty
(20) days after a written request for payment thereof has first been received
by the Company, Indemnitee may, but need not, at any time thereafter bring an
action against the Company to recover the unpaid amount of the claim and,
subject to Section 13 of this Agreement, Indemnitee shall also be
entitled to be paid for the expenses (including attorneys’ fees) of bringing
such action (such expenses, “Enforcement Expenses”), regardless of
whether Indemnitee is ultimately determined to be entitled to such
indemnification or advances.  In any
judicial proceeding or arbitration commenced pursuant to this Section 4(c),
the Company shall have the burden of proving Indemnitee is not entitled to
indemnification or advancement, as the case may be.  The Company shall be precluded from asserting
in any judicial proceeding or arbitration commenced pursuant to this Section 4(c) that
the procedures and presumptions of this Agreement are not valid, binding and
enforceable and shall stipulate in any such court or before any such arbitrator
that the Company is bound by all the provisions of this Agreement.  It shall be a defense to any such action (other
than an action brought to enforce a claim for expenses incurred in connection
with any action, suit or proceeding in advance of its final disposition) that
Indemnitee has not met the standards of conduct which make it permissible under
applicable law for the Company to indemnify Indemnitee for the amount claimed,
but the burden of proving such defense shall be on the Company and Indemnitee
shall be entitled to receive interim payments of expenses pursuant to Section 4(a) unless
and until such defense may be finally adjudicated by court order or judgment
from which no further right of appeal exists. It is the parties’ intention that
if the Company contests Indemnitee’s right to indemnification, the question of
Indemnitee’s right to indemnification shall be for the court to decide, and
neither the failure of the Company (including the Board, any committee or
subgroup of the Board, independent legal counsel, or its stockholders) to have
made a determination that indemnification of Indemnitee is proper in the
circumstances because Indemnitee has met the applicable standard of conduct
required by applicable law, nor an actual determination by the Company
(including the Board, any committee or subgroup of the Board, independent legal
counsel, or its stockholders) that Indemnitee has not met such applicable
standard of conduct, shall create a presumption that Indemnitee has or has not
met the applicable standard of conduct. The Indemnitee shall be deemed to have
acted in good faith if the Indemnitee’s action is based on the records or books
of account of the Company, including financial statements, or on information
supplied to the Indemnitee by the officers of the Company in the course of
their duties, or on the

 

6

 

advice of legal counsel for the Company or on information or records
given or reports made to the Company by an independent certified public
accountant or by an appraiser or other expert selected with reasonable care by
the Company.  In addition, the knowledge
and/or actions, or failure to act, of any other director, or of any officer,
agent or employee of the Company shall not be imputed to the Indemnitee for
purposes of determining the right to indemnification under this Agreement.  Whether or not the foregoing provisions of
this Section 4(c) are satisfied, it shall in any event be presumed
that the Indemnitee has at all times acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the
Company.  Anyone seeking to overcome this
presumption shall have the burden of proof.

 

(d) Notice
to Insurers.  To the extent that the Company maintains an
insurance policy or policies providing liability insurance for directors,
officers, employees, agents or trustees of the Company, Indemnitee shall be
covered by such policy or policies in accordance with its or their terms to the
maximum extent of the coverage available for any such director, officer,
employee, agent or trustee under such policy or policies.  If, at the time of the receipt of a notice of
a claim pursuant to Section 4(b) hereof, the Company has
director and officer liability insurance in effect, the Company shall give
prompt notice of the commencement of such proceeding to the insurers in
accordance with the procedures set forth in the respective policies. The
Company shall thereafter take all necessary or desirable action to cause such
insurers to pay, on behalf of the Indemnitee, all amounts payable as a result
of such proceeding in accordance with the terms of such policies.

 

(d)   Selection of Counsel. 
In the event the Company shall be obligated under Section 4(a) hereof
to pay the expenses of any Proceeding against Indemnitee, the Company, if
appropriate, shall be entitled to assume the defense of such Proceeding, with
counsel approved by Indemnitee, which approval shall not be unreasonably
withheld, upon the delivery to Indemnitee of written notice of its election so
to do. After delivery of such notice, approval of such counsel by Indemnitee
and the retention of such counsel by the Company, the Company will not be
liable to Indemnitee under this Agreement for any fees of counsel subsequently
incurred by Indemnitee with respect to the same Proceeding, provided
that (i) Indemnitee shall have the right to employ counsel in any such
proceeding at Indemnitee’s expense; and (ii) if (A) the employment of
counsel by Indemnitee has been previously authorized by the Company, (B) Indemnitee
shall have reasonably concluded that there may be a conflict of interest between
the Company and Indemnitee in the conduct of any such defense or (C) the
Company shall not, in fact, have employed counsel to assume the defense of such
proceeding then the fees and expenses of Indemnitee’s counsel shall be at the
expense of the Company.

 

5.     Additional Indemnification Rights: Nonexclusivitv.

 

(a)   Scope. 
Notwithstanding any other provision of his Agreement, the Company hereby
agrees to indemnify the Indemnitee to the fullest extent permitted by law,
notwithstanding that such indemnification is not specifically authorized by the
other provisions of this Agreement, the Charter, the Bylaws or by statute.  In the event of any change, after the date of
this Agreement, in any applicable law, statute, or rule which expands the
right of a Delaware corporation to indemnify a member of its board of directors
or an officer, such changes shall be deemed to be within the purview of
Indemnitee’s rights and the Company’s obligations under this Agreement.  In the event of any change in any applicable
law, statute or rule which

 

7

 

narrows the right of a Delaware corporation to indemnify a member of
its board of directors or an officer, such changes, to the extent not otherwise
required by such law, statute or rule to be applied to this Agreement
shall have no effect on this Agreement or the parties’ rights and obligations
hereunder.

 

(b)   Nonexclusivitv. 
The indemnification provided by this Agreement shall not be deemed
exclusive of any rights to which Indemnitee may be entitled under the Charter,
the Bylaws, any agreement, any vote of stockholders or disinterested members of
the Board, the DGCL, or otherwise, both as to action in Indemnitee’s official
capacity and as to action in another capacity while holding such office. The
indemnification provided under this Agreement shall continue as to Indemnitee
for any action taken or not taken while serving in an indemnified capacity even
though he or she may have ceased to serve in any such capacity at the time of any
covered Proceeding.

 

 

6.     Partial Indemnification.  If
Indemnitee is entitled under any provision of this Agreement to indemnification
by the Company for some or a portion of the expenses, judgments, fines or
penalties actually or reasonably incurred in the investigation, defense, appeal
or settlement of any Proceeding, but not, however, for the total amount
thereof, the Company shall nevertheless indemnify Indemnitee for the portion of
such expenses, judgments, fines or penalties to which Indemnitee is entitled.

 

7.     Mutual Acknowledgment. 
Both the
Company and Indemnitee acknowledge that in certain instances, Federal law or
public policy may override applicable state law and prohibit the Company from
indemnifying its directors and officers under this Agreement or otherwise.  For example, the Company and Indemnitee
acknowledge that the Securities and Exchange Commission (the “SEC”) has
taken the position that indemnification is not permissible for liabilities
arising under certain federal securities laws, and federal legislation
prohibits indemnification for certain ERISA violations. Indemnitee understands
and acknowledges that the Company has undertaken or may be required in the
future to undertake with the SEC to submit the question of indemnification to a
court in certain circumstances for a determination of the Company’s right under
public policy to indemnify Indemnitee.

 

8.     Officer and Director Liability Insurance. 
For so
long as Indemnitee serves on the Board, the Company shall continue in effect,
and take all reasonable action necessary to maintain and provide, “directors
and officers” insurance with coverage levels at least as great as those in
effect immediately prior to the date hereof and covering the Indemnitee; provided,
that the Company may adjust and/or reduce such coverage levels from time to
time with the prior approval of two-thirds (2/3rds) of the directors.  In all policies of director and officer
liability insurance, Indemnnitee shall be named as an insured in such a manner
as to provide Indemnitee the same rights and benefits as are accorded to the
most favorably insured of the Company’s directors, if Indemnitee is a director,
or of the Company’s officers, if Indemnitee is not a director of the Company
but is an officer, or of the Company’s key employees, if Indemnitee is not an
officer or director but is a key employee.

 

9.     Severability. 
Nothing in
this Agreement is intended to require or shall be construed as requiring the
Company to do or fail to do any act in violation of applicable law. The Company’s
inability, pursuant to court order, to perform its obligations under this
Agreement

 

8

 

 

shall not constitute a breach of this Agreement.  Without limiting the generality of the
foregoing, this Agreement is intended to confer upon Indemnitee indemnification
rights to the fullest extent permitted by applicable laws.  The provisions of this Agreement shall be
severable as provided in this Section 9. 
If this Agreement or any portion hereof shall be invalidated on any
ground by any court of competent jurisdiction, then (a) such invalidated
provision or provisions shall be deemed reformed to the extent necessary to
conform to applicable law and to give the maximum effect to the intent of the
parties hereto, (b) the Company shall nevertheless indemnify Indemnitee to
give the maximum effect to the intent of the parties hereto, and (c) the
balance of this Agreement not so invalidated shall be enforceable in accordance
with its terms.

 

10.  Coordination with Other Rights to
Indemnification.

 

The Company acknowledges
that the Indemnitee may be employed by, otherwise affiliated with, or appointed
by, another person or entity, and may be entitled to, or may be provided,
indemnification by such other person or entity (the “Third Party Indemnitor”)
or its Affiliates (as defined below) for certain expenses and liabilities for
which the Indemnitee may also be entitled to seek indemnification from the
Company pursuant to this Agreement, the Amended and Restated Certificate of
Incorporation and the Amended and Restated Bylaws of the Company, or otherwise
(the “Company Indemnified Expenses”). The Company acknowledges and agrees that,
as between the Company and its subsidiaries, on the one hand, and the Third
Party Indemnitor and its Affiliates (other than the Company and its
subsidiaries), on the other hand, the Company shall be primarily liable to the
Indemnitee with respect to any Company Indemnified Expenses and any liability
of the Third Party Indemnitor or its Affiliates to the Indemnitee shall be
secondary liability. In recognition of the primary liability of the Company,
the Company agrees that, in the event that the Third Party Indemnitor or any of
its Affiliates pays any Company Indemnified Expenses to and on behalf of the
Indemnitee, reimburses the Indemnitee for any Company Indemnified Expenses paid
by the Indemittee or advances amounts to the Indemnitee (including by way of
any loan) for the payment of Company Indemnified Expenses, then (i) the
Company shall pay to the Third Party Indemnitor any amounts so paid, reimbursed
or advanced, to the extent that the Indemnitee would have been entitled to
indemnification of such Company Indemnified Expenses and (ii) the Third
Party Indemnitor shall be subrogated to all of the rights of the Indemnitee
with respect to any claim that the Indemnitee could have brought against the
Company or any subsidiary with respect to any Company Indemnified Expenses that
have been paid, reimbursed or advanced to or on behalf of the Indemnitee. All
such payments to the Third Party Indemnitor shall be made within twenty (20)
days of the receipt by the Company of written notice from the Third Party
Indemnitor of such payment, reimbursement or
advance, accompanied by documentation showing, in reasonable detail, the
Company Indemnified Expenses so paid, reimbursed or advanced by the Third Party
Indemnitor or any or its Affiliates. The Company shall also reimburse the Third
Party Indemnitor and its Affiliates for all expenses, including legal expenses,
incurred in enforcing this Section 10.

 

For purposes of this Section 10,
“Affiliate” means, with respect to any specified person or entity, such other
person or entity directly or indirectly controlling, controlled by or under
common control with such specified person or entity. For purposes of the
foregoing definition, “control,” when used with respect to any specified person
or entity, means the power to direct the management and policies of such person
or entity, directly or indirectly, whether 

 

9

 

through ownership of
voting securities, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative to the foregoing.

 

11.  Exceptions.  Any other provision herein to the
contrary notwithstanding, the Company shall not be obligated pursuant to the
terms of this Agreement:

 

(a)   Claims Initiated by Indemnitee.  To indemnify or advance expenses to
Indemnitee with respect to proceedings or claims initiated or brought
voluntarily by Indemnitee and not by way of defense, except with respect to (i) proceedings
brought to establish or enforce a right to indemnification under this Agreement
or any other statute or law or otherwise as required under Section 145 of
the DGCL or (ii) any proceeding that is a counterclaim brought in
connection with a proceeding initiated against the Indemnitee and such
counterclaim is either a mandatory counterclaim or is defensive in nature, but
such indemnification or advancement of expenses may be provided by the Company
in specific cases if the Board of Directors finds it to be appropriate;

 

(b)   Lack of Good Faith.  To indemnify Indemnitee for any expenses
incurred by Indemnitee with respect to any proceeding instituted by Indemnitee
to enforce or interpret this Agreement, if a court of competent jurisdiction
finally determines that each of the material assertions made by Indemnitee in
such proceeding was not made in good faith or was frivolous;

 

(c)   Insured Claims.  To indemnify Indemnitee for expenses or
liabilities of any type whatsoever (including, but not limited to, judgments,
fines, ERISA excise taxes or penalties, and amounts paid in settlement) to the
extent such expenses or liabilities have been paid directly to Indemnitee by an
insurance carrier under a policy of officers’ and directors’ liability
insurance maintained by the Company; or

 

(d)   Claims under Section 16(b) of the Exchange
Act or Section 304 or 306 of the Sarbanes-Oxley Act.  To indemnify Indemnitee on account of any
suit in which judgment is rendered against the Indemnitee for (i) disgorgement
of profits made from the purchase or sale by the Indemnitee of securities of
the Company pursuant to the provisions of Section 16(b) of the
Exchange Act or similar provisions of any federal, state or local statutory law
or (ii) any reimbursement of the Company by the Indemnitee of any bonus or
other incentive-based compensation or equity-based compensation or of any
profits realized by the Indemnitee from the sale of securities of the Company,
in each case pursuant to Section 304 or 306 of the Sarbanes-Oxley Act of
2002 and the rules and regulations under the Exchange Act adopted pursuant
thereto.

 

12.  Construction of Certain Phrases.  For purposes of this Agreement references to the “Company”
shall include, in addition to the resulting corporation, any constituent
corporation (including any constituent of a constituent) absorbed in a consolidation
or merger which, if its separate existence had continued, would have had power
and authority to indemnify its directors, officers, and employee or agents, so
that if Indemnitee is or was a director, officer, employee or agent of such
constituent corporation, or is or was serving at the request of such
constituent corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture; trust or other enterprise, Indemnitee
shall stand in the same position 

 

10

 

under the provisions of this Agreement with respect to the resulting or
surviving corporation as Indemnitee would have with respect to such constituent
corporation if its separate existence had continued.

 

(b)   For
purposes of this Agreement, references to “other enterprises” shall
include employee benefit plans; references to “fines” shall include any
excise taxes assessed on Indemnitee with respect to an employee benefit plan;
and references to “serving at the request of the Company” shall include
any service as a director, officer, employee or agent of the Company which
imposes duties on, or involves services by, such director, officer, employee or
agent with respect to an employee benefit plan, its participants, or
beneficiaries; and if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in the interest of the participants and beneficiaries
of an employee benefit plan, Indemnitee shall be deemed to have acted in a
manner “not opposed to the best interests of the Company” as referred to
in this Agreement.

 

13.  Attorneys’ Fees.  In the event that any action is instituted by
Indemnitee under this Agreement to enforce or interpret any of the terms
hereof, Indemnitee shall be entitled to be paid all court costs and expenses,
including reasonable attorneys’ fees, incurred by Indemnitee with respect to
such action, unless as a part of such action, the court of competent
jurisdiction determines that each of the material assertions made by Indemnitee
as a basis for such action were not made in good faith or were frivolous. In
the event of an action instituted by or in the name of the Company under this
Agreement or to enforce or interpret any of the terms of this Agreement,
Indemnitee shall be entitled to be paid all court costs and expenses, including
attorneys’ fees, incurred by Indemnitee in defense of such action (including
with respect to Indemnitee’s counterclaims and cross-claims made in such
action), unless as apart of such action the court determines that each of
Indemnitee’s material defenses to such action were made in bad faith or were
frivolous.

 

14.  Representations and Warranties of the
Company.  The Company hereby represents and warrants to
Indemnitee as follows:

 

(a)   Authority.  The Company has all necessary power and
authority to enter into, and be bound by the terms of, this Agreement, and the
execution, delivery and performance of the undertakings contemplated by this
Agreement have been duly authorized by the Company.

 

(b)   Enforceability.  This Agreement, when executed and delivered
by the Company in accordance with the provisions hereof, shall be a legally
valid and binding obligation of the Company, enforceable against the Company in
accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar law affecting
creditors’ rights generally or by general principles of equity.

 

15.  Miscellaneous.

 

(a)   Governing Law. This Agreement and all
acts and transactions pursuant hereto and the rights and obligations of the
parties hereto shall be governed, construed 

 

11

 

and interpreted in accordance with the laws of the State of Delaware,
without giving effect to principles of conflict of law.

 

(b)   Entire Agreement; Enforcement of Rights.  This Agreement sets forth the entire
agreement and understanding of the parties relating to the subject matter
herein and merges all prior discussions between them. No modification of or
amendment to this Agreement, nor any waiver of any rights under this Agreement,
shall be effective unless in writing signed by the parties to this Agreement.
The failure by either party to enforce any rights under this Agreement shall
not be construed as a waiver of any rights of such party.

 

(c)   Construction.  This Agreement is the result of negotiations
between and has been reviewed by each of the parties hereto and their
respective counsel, if any; accordingly, this Agreement shall be deemed to be
the product of all of the parties hereto, and no ambiguity shall be construed
in favor of or against any one of the parties hereto.

 

(d)   Notices.  Any notice, demand or request required or
permitted to be given under this Agreement shall be in writing and shall be
deemed sufficient when delivered personally or sent by telegram or forty-eight
(48) hours after being deposited in the U.S. mail, as certified or registered
mail, with postage prepaid, and addressed to the party to be notified at such
party’s address as set forth below or as subsequently modified by written
notice.

 

(e)   Counterparts and Facsimile. This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original and all of which together shall constitute one instrument.  Executed signature pages to this
Agreement may be delivered by electronic facsimile (including via electronic
mail) and such facsimiles will be deemed as sufficient as if actual signature pages had
been delivered.

 

(f)    Successors and Assigns. 
This Agreement shall be binding upon the Company and its successors and
assigns, and inure to the benefit of Indemnitee and Indemnitee’s heirs, legal
representatives and assigns.

 

(g)   Subrogation.  In the event of advancement or
indemnification under this Agreement, the Company, to the extent of such
payment, shall be subrogated to all of the rights of contribution or recovery
of Indemnitee against other persons, and Indemnitee shall take, at the request
of the Company, all reasonable action necessary to secure such rights,
including the execution of such documents as are necessary to enable the
Company to effectively bring suit to enforce such rights.

 

[Signature Page Follows]

 

12

 

The parties hereto have executed this Agreement as of the day and year
set forth on the first page of this Agreement.

 

	
   

  	
   

  	
  ACCURIDE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
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  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  7140 Office Circle

  
	
   

  	
   

  	
   

  	
  Evansville, IN 47715

  

 

	
  AGREED TO AND ACCEPTED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
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  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

Signature Page to
Indemnification Agreement

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