Document:

Exhibit 10.1

 

 

Overview – Executive Compensation Philosophy

 

The
primary objective of Satcon’s executive compensation program is to attract,
retain, and motivate the best possible executive talent in pursuit of our
business strategy of being a leading global provider of utility scale
distributed power solutions for the renewable energy market.  The focus is to tie short and long-term
incentives to the achievement of measurable corporate and individual
performance objectives.   Our executive
compensation structure not only aims to be competitive in our market sector,
but also to be fair relative to compensation paid to other professionals within
our organization. As we continually develop our compensation approach, we aim
to implement an approach that rewards our executives when we achieve our target
goals and objectives.  As our business
evolves, we seek to foster a performance-oriented culture, where individual
performance is aligned with organizational objectives.  Executives will be evaluated and rewarded
based on their organizational contributions to the achievement of short and
longer term objectives; their openness to challenging and improving current
policies and structures; their willingness to foster a highly creative
team-oriented environment; and their ability to take advantage of unique
business opportunities and overcome difficult challenges within the emerging
renewable energy and distributed power business sectors.

 

An important component of Satcon’s
executive total compensation program is an annual cash Incentive Plan that ties
a significant portion of senior management’s overall compensation to the
achievement of short term annual objectives.

 

SATCON 2008 INCENTIVE PLAN

FOR SENIOR MANAGEMENT

 

Section 1:
Purpose

 

The Satcon 2008 Incentive Plan (the “Plan”) is designed to:

 

	
  ·

  	
   

  	
  Attract and retain highly qualified executives and other personnel by
  providing competitive annual incentive opportunities.

  
	
   

  	
   

  	
   

  
	
  ·

  	
   

  	
  Provide performance-leveraged incentives that motivate and reward
  superior managerial performance and the profitable growth of Satcon
  Technology Corporation (the “Company”).

  
	
   

  	
   

  	
   

  
	
  ·

  	
   

  	
  Support a performance oriented environment that differentiates
  individual rewards based on performance and results.

  

 

Section 2:
Definition of Terms

 

a)                                      Board
means the Board of Directors of the Company.

 

1

 

b)                                     Committee
means the Compensation Committee of the Board.

 

c)                                      Participants
shall be the persons eligible to participate in the Plan, consisting of
the Corporation’s “Executive Officers” (as defined under Rule 3b-7 under
the Securities Exchange Act of 1934, as amended) and other named participants,
as determined by the Committee from time to time.  As of the effective date of the Plan, the
Participants are (i) the President & Chief Executive Officer; (ii) the
Chief Financial Officer; (iii) the Vice President of Engineering &
Chief Technology Officer; (iv) the Vice President, Administration &
Secretary; (v) the Vice President of Sales & Marketing; (vi) the
Vice President Operations and (vii) those individuals who directly report
to the Executive Officers at the Director Level.

 

Section 3:
Plan Administration

 

The Committee shall have sole and
complete discretion to administer and interpret the Plan with respect to the
Participants.  The decisions of the
Committee concerning administration and interpretation of the Plan shall be
final and binding. The Plan shall continue in its current form until and unless
action is taken by the Board to modify or terminate the Plan.

 

Section 4:
Plan Year

 

The Plan performance year shall be
the Company’s fiscal year (January 1 – December 31, 2008). After the
end of the fiscal year, cash incentive payments earned under the Plan shall be
determined and approved by the Committee in accordance with the provisions of
the Plan.

 

Section 5:
Performance Targets and Measurement

 

The Plan, which has been approved by the Committee and the Board,
outlines general performance goals and business criteria upon which each
Participant’s performance will be evaluated. 
Specific performance goals and business criteria will be subsequently
approved by the Committee.  Performance
will be measured against these specific performance goals and business
criteria, which will be established for each functional area of the
organization.  Generally, (i) for
the President & CEO, performance will be evaluated based on overall
corporate objectives and (ii) for all other Participants, performance will
be evaluated based on relevant operations, sales & marketing,
engineering, finance and administration objectives.

 

General 2008 objectives are summarized as follows:

 

President & CEO – Corporate:  Overall
corporate objectives will include objectives related to the Company’s focus and
market position, growth, product/service quality, profitability and leadership
team.

 

Operations:  Operations objectives will include objectives
related to business operating models, manufacturing and plant capacity,
customer performance and long-term strategies.

 

2

 

Sales & Marketing:  Sales & marketing objectives will
include objectives related to direct sales team
organization, sales methodology, forecast methodology and customer relationship
management systems, global business development and channels organization,
branding initiatives and field services organization.

 

Engineering:  Engineering objectives will include
objectives related to product quality, design processes and new products.

 

Finance:  Finance objectives will include objectives
related to management information, information systems, planning processes,
financial operating models and control environment.

 

Administration:  Administration objectives will include
objectives related to compensation strategy, performance management systems,
annual cash incentive programs, rewards programs, internet access, domain
upgrades and help desk administration.

 

Section 6: 
2008 Potential Incentive Award Opportunity

 

·                  President & CEO:

·                  Up to 60% of Base Salary
upon attainment of 100% of target objectives

 

·                  Other Executive Officers:

·                  Up to 30% of Base Salary
upon attainment of 100% of target objectives

 

·                  Other (Director level)
Participants:

·                  Up to 20% of Base Salary
upon attainment of 100% of target objectives

 

Section 7:
Earning an Award

 

The
President & CEO annually reviews other Participant’s performance with
the Committee and makes recommendations to the Committee with respect to the
appropriate payments to be made under the Plan. 
Based in part on the CEO’s recommendations and other considerations, the
Committee approves the incentive payments (other than the CEO).  The Compensation Committee independently
evaluates the performance of the CEO and determines and approves the incentive
payment earned for the given performance period.

 

Section 8:
Final Approval

 

After determining and approving incentive payments under the Plan, as
discussed in Section 7 above, the Committee will then recommend to the
Board payments to be made under the Plan. The Board must approve payments made
under the Plan.  Final determination of
any and all employee compensation will be based on the sole discretion of the
Compensation Committee with Board of Director approval. Any payments under the
Plan shall be paid by March 15, 2009.

 

Section 9:
Other Provisions

 

(a)           Earning
a Payment Under the Plan.  Payments
under the Plan shall not be earned until they are approved by the Board in
accordance with Section 8 above. In addition, payments under the Plan
shall not be earned if, on the final date of the fiscal year, the Participant
is not in compliance with either his or her employment agreement (if any) or
the non-disclosure agreement.  A
Participant is entitled to payment under the Plan, if earned (which requires
approval of the Board), if the 

 

3

 

Participant is employed on the last day of
the fiscal year, subject to the prior sentence and Sections 9(e) and 9(f) below.

 

(b)           Plan Amendment.  The Board may,
at any time and from time to time, amend, alter, suspend, discontinue or
terminate the Plan, as it deems necessary or appropriate to achieve the
purposes of the Plan or for other business reasons.

 

(c)           No Right to Employment.  The existence
of this Plan shall not be construed as giving a Participant the right to
continued employment or any future right to participate in the Plan.

 

(d)           Other Corporate Benefit and Compensation Programs.  Participation in this Plan
shall not be deemed as part of a Participant’s regular, recurring compensation
for purposes of calculating payments or benefits from any Company benefit or
severance program (or severance pay law of any country) unless otherwise
specified in the particular benefit plan or benefit plan documents.

 

(e)           Retirement, Disability or Death.  In the event a
Participant would otherwise earn an incentive award pursuant to this Plan, but
the Participant does not qualify because of the Participant’s death, disability
or retirement, then the Participant shall be deemed to have “earned” his or her
award, subject to the approval by the Board. 
The term “disability” shall have the meaning ascribed to such term in
the employment agreement between the Participant and the Company (or, in the
event that the Participant does not have any employment agreement with the
Company, shall mean “the inability to perform services for the Company for an
aggregate of 90 days during any 365-day period”). The Committee shall interpret
the term “retirement”.

 

(f)            Employment for a Portion of a Plan Year. 
The CEO may recommend and the Committee, at its sole discretion, may
permit a Participant to participate in the Plan during a fiscal year in which
the Participant was not employed by the Company for the full fiscal year. Such
participation may be on a pro rata basis or on such other basis as the
Committee determines.

 

(g)           Unfunded Plan.  The Plan shall
be unfunded and shall not create (or be construed to create) a trust or
separate fund(s). Likewise, the Plan shall not establish any fiduciary
relationship between the Company and any other Participant or other person. To
the extent that any person holds any rights by virtue being a Participant under
the Plan, such right shall be no greater than the right of an unsecured general
creditor of the Company.

 

(h)           Successors and Assignees.  The Plan shall
be binding on all successors and assignees of a Participant, including, without
limitation, the estate of such Participant and the executor, administrator or
trustee of such estate, or any receiver or trustee in bankruptcy or
representative of the Participant’s creditors.

 

(i)            Governing Law.  The validity,
construction and effect to the Plan and any actions taken under the Plan shall
be determined in accordance with applicable laws of the State of Delaware.

 

4Exhibit 10.1

 

JOHN R. MURPHY

 

September 22, 2008

 

David K. Armstrong

Corporate
Secretary

Accuride
Corporation

7140
Office Circle

Evansville,
IN  47715

 

Terrence
J. Keating

Chairman
of the Board

Accuride
Corporation

7140
Office Circle

Evansville,
IN  47715

 

DELIVERED
BY HAND

 

Re:          Resignation
Agreement

 

Dear Sirs:

 

By this letter I tender my resignation
as President and Chief Executive Officer of Accuride Corporation (the “Company”) and as a Director of the Company and all of its
subsidiaries, effective upon the Company’s acceptance and execution of this
Resignation Agreement.

 

Reference is hereby made to
that certain Severance and Retention Agreement (the “Severance
Agreement”), by and between the Company and me.  Capitalized terms used but not defined herein
shall have the meanings specified therefor in the Severance Agreement.  By this Resignation Agreement, the Company
agrees to pay to me the severance benefits to which I would be entitled if I
terminated my employment with the Company for “Good Reason” (though I
acknowledge that this resignation does not, in fact, constitute a termination
of my employment with the Company for “Good Reason”), but otherwise under all
the terms and conditions provided under the Severance Agreement (including the
execution and delivery by me of an irrevocable release of any known or unknown
claims I may have against the Company in form and substance acceptable to the
Company).  If I fail to execute timely
the Release Agreement, or it does not become irrevocable, the Company reserves
all rights it may have against me.

 

[signature page follows]

 

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ John R. Murphy

  
	
   

  	
  John
  R. Murphy

  

 

 

	
  ACKNOWLEDGED
  AND AGREED

  	
   

  
	
  As
  of September 22, 2008

  	
   

  
	
   

  	
   

  
	
  ACCURIDE
  CORPORATION  

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/ Terrence J. Keating

  	
   

  
	
  Name:
  Terrence J. Keating 

  	
   

  
	
  Its:
  Chairman of the Board

  	
   

  
			

 

Signature Page to Resignation Agreement

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