Document:

Exhibit 1061 Kersten Amendment to Employment Agreement

		
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			February 27, 2018
		

		
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			Jeffrey Kersten
		

		
			17672 Laurel Park Drive N.
		

		
			Livonia, MI 48152
		

		
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			Re:  Amendment to Employment Agreement With Respect to Vesting of LTI Awards 
		

		
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			Dear Jeff,
		

		
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			Reference is made to the Employment Agreement, dated as of August 31, 2016, between you and Tower Automotive Operations USA I, LLC (the “Employment Agreement”).
		

		
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			This is to confirm that, effective the date hereof, Section 4.7 of the Employment Agreement is hereby amended in its entirety, to read as follows:
		

		
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			“4.7Accelerated Vesting of Equity and LTI Awards.  Notwithstanding anything in the 2010 Plan or any award agreement issued thereunder to the contrary, all then outstanding awards granted to the Employee pursuant to the 2010 Plan, including equity-based awards, performance awards (payable in cash and/or stock) and awards granted prior to the Effective Date (the “2010 Plan Awards”), shall immediately become fully vested upon the consummation of a Change in Control (as defined below) (assuming, in the case of each performance award, target level performance for the entire performance period (without proration of the amount payable thereto). For purposes of this Agreement, “Change in Control” shall be defined as set forth in Section 2.6 of the 2010 Plan on the Effective Date of this Agreement.”
		

		
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			Except as provided by this letter, the provisions of the Employment Agreement shall remain in full force and effect.
		

		
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			Please acknowledge your agreement with the foregoing by countersigning this letter below and returning it to me.
		

		
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			Regards,
		

		
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			/s/ James C. Gouin
		

		
			James C. Gouin
		

		
			Chief Executive Officer
		

		
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			Acknowledged and agreed:
		

		
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			/s/ Jeffrey Kersten
		

		
			Jeffrey Kersten
		

		
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			Date: February 27, 2018Exhibit 1062 Award Agreement March 2018 Performance Award

		
			TOWER INTERNATIONAL, INC. 
		

		
			PERFORMANCE AWARD AGREEMENT 
		

		
			This Performance Award Agreement (the “Agreement” or “Award Agreement”), dated as of the “Award Date” set forth in the attached Exhibit A, is entered into between Tower International, Inc., a Delaware corporation (the “Company”), and the individual named in Exhibit A hereto (the “Awardee”).  For purposes of this Agreement, the information referenced in Exhibit A shall be as provided to the Awardee electronically via the website made accessible to the Awardee to accept the terms and conditions of this Award as set forth herein.
		

		
			WHEREAS, the Company desires to provide the Awardee an incentive to participate in the long-term success and growth of the Company; and 
		

		
			WHEREAS, to give effect to the foregoing intention, the Company desires to make an incentive bonus award to the Awardee pursuant to Section 12 of the Tower International, Inc. 2010 Equity Incentive Plan (the “Plan”).
		

		
			NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties hereto agree as follows: 
		

			
	
			
				 1.
			Award.  The Company hereby awards the Awardee an incentive bonus award (the “Performance Award”) for the performance period set forth in Exhibit A (the “Performance Period”) (which, for administrative purposes, the Company may denominate as a number of units of equivalent notional value).  The target amount of the Performance Award is set forth in Exhibit A (the “Target Award Amount”).  The amount of the Performance Award paid hereunder is dependent upon the satisfaction of the performance conditions set forth in Section 2 below and may range from zero to two hundred percent (200%) of the Target Award Amount.  The Performance Award represents an unfunded, unsecured obligation of the Company.  The Performance Award shall be subject to the terms and conditions set forth in this Agreement and the provisions of the Plan, the terms of which are incorporated herein by reference.  Capitalized terms used but not otherwise defined herein shall have the meanings as set forth in the Plan.

			
	
			
				 2.
			Earning of Performance Award.  Fifty percent (50%) of the Performance Award shall be earned based upon the Company Adjusted EBITDA Growth Rate (as hereinafter defined) for the Performance Period (as hereinafter defined) (the “EBITDA Award”), and the remaining fifty percent (50%) of the Performance Award shall be earned based upon the Company TSR Percentile for the Performance Period (the “TSR Award”).  Subject to Section 4 and Section 5 below, at the end of the Performance Period, the Committee will determine the Company’s attained levels of performance with respect to the Company Adjusted EBITDA Growth Rate and the Company TSR Percentile and determine the total dollar amount of the EBITDA Award and the TSR Award earned, if any, by the Awardee for the Performance Period (collectively, the “Earned Performance Award”) by reference to the following performance matrix:

		

		

		 

 

		
		

		
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						Earned  Performance Award

				
	
					
						 

					
					
						Threshold

					
					
						Target

					
					
						Maximum

				
	
					
						Earned EBITDA Award or TSR Award (as applicable) *

					
					
						    50%

					
					
						100%

					
					
						200%

				
	
					
						Company Adjusted EBITDA Growth Rate

					
					
						    2%

					
					
						    5%

					
					
						    10%

				
	
					
						Company TSR Percentile 

					
					
						    25%

					
					
						    50%

					
					
						    75%

				

		
			
		

		
			*  As a % of the portion of the Target Award Amount attributable to the EBITDA Award or TSR Award, as applicable. 
		

		
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			If, at the end of the Performance Period, the threshold, target or maximum level of performance set forth in the performance matrix above has been attained for either or both of the Company Adjusted EBITDA Growth Rate or the Company TSR Percentile, the Awardee will be entitled to receive payment pursuant to Section 3 below for the total amount of the Earned Performance Award, subject to the Awardee’s Continuous Service with the Company or any of its Subsidiaries through the Payment Date.  If the attained level of performance for either performance goal is between the threshold and target, or between the target and maximum, the total amount of the Earned Performance Award for such performance goal will be determined by straight-line interpolation.  If the attained level of one of the performance goals above is less than the threshold performance goal, then no portion of the Performance Award subject to that performance goal shall be earned or paid.
		

			
	
			
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			Time and Medium of Payment.  

			
	
			
				 a.
			Time of Payment.  Except as otherwise provided in Sections 4, 5 or 6 below,  the total amount of the Earned Performance Award shall be paid by the Company to the Awardee, less applicable tax withholdings, following certification by the Committee of the attainment of the performance goals set forth in Section 2 for the Performance Period; provided that the Awardee remains in the Continuous Service of the Company or any of its Subsidiaries through the date such payment is made (the “Payment Date”); provided, further, however, that if the Awardee is or becomes Retirement Eligible at any time prior to March 15 of the year following the expiration of the Performance Period (the “Short-Term Deferral Date”),  then the Payment Date shall be no later than such Short-Term Deferral Date.

			
	
			
				 b.
			Medium of Payment.  Unless otherwise determined by the Committee, ninety percent (90%) of the Earned Performance Award shall be payable in cash and the remaining ten percent (10%) of the Earned Performance Award shall be paid in shares of Common Stock.  To the extent that any portion of the Earned Performance Award is payable in shares of Common Stock, the number of shares of Common Stock payable shall be based on the closing price of a share of Common Stock on the trading day immediately preceding the date of payment or, in the event of a Change in Control, based on the value of a share of Common Stock as determined by the Committee in its sole discretion based on the circumstances of such Change in Control.  

			
	
			
				 4.
			Termination of Employment.  Notwithstanding the provisions of Section 2 and Section 3a above, in the event that the Awardee’s Continuous Service with the Company and/or its Subsidiaries is terminated after the completion of the first calendar year of the Performance Period but prior to the Payment Date: (i) by the Company and/or its Subsidiaries without Cause (as hereinafter defined) or (ii) due to the Awardee’s death or Disability (as hereinafter defined), not more than two and one-half months after the calendar year during which the Awardee’s termination date occurs, the Company shall pay the Awardee an amount, in accordance with Section 3b hereof, equal to the product of: (1) the total amount of the Performance Award that would have been earned had the Performance Period ended as of the December 31st immediately prior to the date on which the Awardee’s Continuous Service terminated (determined based on the actual Company Adjusted EBITDA Growth Rate and the Company TSR Percentile from the beginning of the Performance Period through such December 31st), and (2) a fraction, of which (x) the numerator is the number 
		

		 

		

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			of completed calendar months during the Performance Period that the Awardee is in Continuous Service with the Company or any of its Subsidiaries prior to the date of termination, and (y) the denominator is thirty-six (36); and the remaining portion of the Performance Award shall be forfeited.  Except as provided above or in Section 5, in the event that the Awardee’s Continuous Service with the Company or any of its Subsidiaries terminates prior to the Payment Date (which, for the avoidance of doubt, includes any termination that occurs during the first calendar year of the Performance Period), the entire Performance Award shall be forfeited.

			
	
			
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			Retirement. Notwithstanding the provisions of Sections 2, 3  and 4 above, if the Awardee is Retirement Eligible and his or her Continuous Service with  the Company and/or its Subsidiaries terminates after the first year of the Performance Period but prior to the Short-Term Deferral Date other than by reason of the Awardee’s termination of Continuous Service by the Company or any of its Subsidiaries for Cause or under any of the circumstances covered by Section 4,   then the Awardee shall remain eligible to receive a Performance Award on the Payment Date and in the manner set forth in Section 3b hereof to the extent, if any, that such Performance Award is determined by the Committee to be an Earned Performance Award for the Performance Period pursuant to Section 2; provided, however, that if such Awardee’s Continuous Service with the Company and/or its Subsidiaries terminates prior to the expiration of the Performance Period, the amount of any such Earned Performance Award shall be prorated to reflect the portion of the Performance Period during which the Awardee was in the Continuous Service of the Company and/or its Subsidiaries by multiplying the amount of the Earned Performance Award by a fraction, the numerator of which is the number of completed calendar months during the Performance Period that the Awardee was in Continuous Service with the Company or any of its Subsidiaries prior to the date of termination, and the denominator of which is thirty-six (36).  

			
	
			
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			Change in Control.  Notwithstanding the provisions of Section 2 and Section 3a above, if a Change in Control (as hereinafter defined) occurs during the Performance Period and while the Awardee is in the Continuous Service of the Company or any of its Subsidiaries, not more than sixty (60) days following the Change in Control, the Company shall pay the Awardee an amount, in accordance with Section 3b hereof, equal to the product of: (1) the Target Award Amount, and (2) a fraction, of which (1) the numerator is the number of completed calendar months during the Performance Period prior to the Change in Control, and (2) the denominator is thirty-six (36); and the remaining portion of the Performance Award shall be forfeited.

			
	
			
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			 Transfer Restrictions.  Neither this Agreement nor the Performance Award may be sold, assigned, pledged or otherwise transferred or encumbered without the prior written consent of the Committee.

			
	
			
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			Withholding Taxes.  The Awardee authorizes the Company to withhold from any payment due hereunder, the amount of withholding taxes due any federal, state or local authority in respect of such payment and to take such other action as may be necessary in the opinion of the Company to satisfy all obligations for the payment of such withholding taxes.    

			
	
			
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			Awardee Representations.  The Awardee has reviewed with his or her own tax advisors the federal, state, local and foreign tax consequences of the transactions contemplated by this Agreement.  The Awardee is relying solely on such advisors and not on any statements or representations of the Company or any of its agents, if any, made to the Awardee.  The Awardee understands that the Awardee (and not the Company) shall be responsible for the Awardee’s own tax liability arising as a result of the transactions contemplated by this Agreement.

			
	
			
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			Employment.  The Awardee acknowledges and agrees that (i) nothing in this Agreement or the Plan confers on the Awardee any right to continue an employment, service or consulting relationship with the Company, nor shall it affect in any way the Awardee’s right or the Company’s right to terminate the Awardee’s employment, service, or consulting relationship at any time, with or without Cause (as hereinafter defined); and (ii) the Company would not have granted this Award to the Awardee but for these acknowledgements and agreements. 

			
	
			
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			Definitions.  For purposes of this Agreement, the following terms have the meanings set forth below:

			
	
			
				 a.
			“Cause” means, as determined by the Company, (i) conviction of or plea of nolo contendere to a felony by the Awardee; (ii) acts of dishonesty by the Awardee resulting in personal gain or 
		

		 

		

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			enrichment at the expense of the Company or its Subsidiaries or the affiliates of the Company and its Subsidiaries; (iii) conduct by the Awardee in connection with his duties to the Company and/or its Subsidiaries that is fraudulent, unlawful, grossly negligent,  disloyal or otherwise contrary to the best interests of the Company and/or its Subsidiaries; (iv) engaging in inappropriate personal conduct by the Awardee including, but not limited to, harassment discrimination, or the use or possession at work of any illegal controlled substance; (v) contravention of specific lawful direction from the Board or supervisor or continuing failure by the Awardee to perform his duties to the Company or its Subsidiaries, or (vi) breach of any non-disclosure, non-competition, non-solicitation or other similar agreement executed by the Awardee for the benefit of the Company or any of its Subsidiaries; provided that, at the Company’s discretion, the Awardee may have up to fifteen (15) days after notice from the Company to cure the deficiency leading to the Cause determination (except with respect to (i) above), if curable. A termination for “Cause” shall be effective immediately (or on such other date set forth by the Company).  Notwithstanding the foregoing, if the Awardee and the Company or any of its Subsidiaries have entered into an employment agreement, consulting agreement, advisory agreement or other similar agreement that specifically defines “cause,” then “Cause” shall have the meaning defined in that employment agreement, consulting agreement, advisory agreement or other agreement.

			
	
			
				 b.
			“Change in Control” shall have the meaning ascribed thereto in the Plan as of the date hereof.

			
	
			
				 c.
			“Company Adjusted EBITDA” shall mean the earnings before interest, taxes, depreciation and amortization expenses (“EBITDA”) of the Company for a specified period, after adjustments thereto to (i) exclude the effect of extraordinary, unusual and/or nonrecurring items and (ii) reflect such other factors as the Committee deems appropriate to fairly reflect EBITDA.  For the avoidance of doubt, the Company Adjusted EBITDA for each fiscal year is intended to be the same as reported in the Company’s fourth quarter earnings presentation for the relevant fiscal year, subject to adjustment as set forth above.

			
	
			
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			“Company Adjusted EBITDA Growth Rate” shall mean the cumulative Company Adjusted EBITDA for the specified period divided by the number of fiscal years in the specified period, stated in terms of a percentage growth rate.  For the avoidance of doubt, the Company Adjusted EBITDA Growth Rate shall be calculated on the basis of the Company Adjusted EBITDA for the fiscal year prior to the specified period.

			
	
			
				 e.
			“Company TSR Percentile” shall mean the percentile ranking as determined by the Committee on the basis of the Total Shareholder Return for each of the Peer Group Companies, including the Company.

			
	
			
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			“Continuous Service”  shall mean the absence of any interruption or termination of service as an employee, director, consultant, advisor or other individual service provider; provided, however, that periods of absence to the extent permitted by Company policies due to vacations, holidays, sick days, short term disability and other approved absences, will not be considered to be an interruption or termination of service hereunder.  Changes in status between service as an employee, director, consultant, advisor or other individual service provider to the Company or any of its Subsidiaries will not constitute an interruption of service.

			
	
			
				 g.
			“Disability” shall have the meaning ascribed thereto in the Plan as of the date hereof.  Notwithstanding the foregoing, if the Awardee and the Company or any of its Subsidiaries have entered into an employment agreement, consulting agreement, advisory agreement or other similar agreement that specifically defines “disability,” then “Disability” shall have the meaning defined in that employment agreement, consulting agreement, advisory agreement or other agreement.

			
	
			
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			“Peer Group Companies” shall mean the Company and Adient plc,  American Axle & Manufacturing Holdings, Inc., Autoliv, Inc., Borg Warner, Inc., Dana, Inc., Delphi Technologies, PLC, Gentex Corporation, Lear Corporation, Magna International, Inc., Martinrea International Inc., Meritor, Inc., Shiloh Industries, Inc., Tenneco Inc. and Visteon Corporation.  If, prior to the end of the Performance 
		

		 

		

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			Period, any Peer Group Company ceases to be a public reporting company for any reason, then such company shall not be considered a Peer Group Company.

			
	
			
				 i.
			  “Retirement Eligible” shall mean the Awardee has both attained  age 62 and completed at least ten (10) full years of Continuous Service with the Company and/or its Subsidiaries.

			
	
			
				 j.
			“Total Shareholder Return” shall mean, with respect to a specified period, the total percentage return per share of common stock, assuming contemporaneous reinvestment of all dividends and other distributions on the date such dividend or other distribution was paid, and based on the average stock price over the first twenty (20) trading days of the Performance Period and the average stock price over the last twenty (20) trading days of the Performance Period.  If necessary, the measurement of Total Shareholder Return shall be adjusted to reflect stock splits or similar changes in capitalization which occur during a specified period.

			
	
			
				 12.
			Notices.   Notices or communications to be made hereunder shall be in writing and shall be delivered in person, by registered mail, by confirmed facsimile or by a reputable overnight courier service to the Company at its principal office or to the Awardee at his or her address contained in the records of the Company.  Alternatively, notices and other communications may be provided in the form and manner of such electronic means as the Company may permit. 

			
	
			
				 13.
			Entire Agreement; Governing Law.   The Plan is incorporated herein by reference.  The Plan and this Award Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Awardee with respect to the subject matter hereof, and may not be modified adversely to the Awardee’s interest except by means of a writing signed by the Company and the Awardee.  In the event of any conflict between this Award Agreement and the Plan, the Plan shall be controlling.  This Award Agreement shall be construed under the laws of the State of Delaware, without regard to conflict of laws principles. Notwithstanding anything contained herein to the contrary, if the Awardee and the Company or any of its Subsidiaries have entered into an employment agreement, consulting agreement, advisory agreement or other similar agreement that addresses the treatment of awards under the Plan in connection with a separation from service or a Change in Control, then such employment agreement, consulting agreement, advisory agreement or other agreement shall control in the event of any conflict or inconsistency with this Award Agreement.

			
	
			
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			Opportunity for Review.   Awardee and the Company agree that this Award is granted under and governed by the terms and conditions of the Plan and this Award Agreement.  The Awardee has reviewed the Plan and this Award Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to accepting this Award Agreement and fully understands all provisions of the Plan and this Award Agreement.  The Awardee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions relating to the Plan and this Award Agreement.  The Awardee further agrees to notify the Company upon any change in Awardee’s residence address. 

			
	
			
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			Binding Effect.   This Agreement shall be binding upon and inure to the benefit of the Company and the Awardee and their respective permitted successors, assigns, heirs, beneficiaries and representatives. 

			
	
			
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			Section 409A Compliance.  To the extent that this Agreement and the Performance Award hereunder are or become subject to the provisions of Section 409A of the Code, the Company and the Awardee agree that the Performance Award may be amended or modified by the Company as appropriate to maintain compliance with the provisions of Section 409A of the Code.

			
	
			
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			Recoupment.  In the event the Company restates its financial statements due to material noncompliance with any financial reporting requirements under applicable securities laws, any payments pursuant to this Performance Award for or in respect of the year that is restated, or the prior three years, may be recovered to the extent the payments made exceed the amount that would have been as a result of the restatement.  In addition and without limitation of the foregoing, any amounts paid hereunder shall be subject to recoupment in accordance with The Dodd–Frank Wall Street Reform and Consumer Protection Act and any implementing regulations thereunder, any clawback policy adopted by the Company or as is otherwise required by applicable law or stock exchange listing conditions.

		 

		

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				 18.
			Electronic Acceptance.  The Awardee shall be deemed to have accepted and agreed to the terms and conditions of this Agreement (and the applicable terms of the Plan) unless the Awardee rejects this Award Agreement within 90 days of the Award Date by such electronic means as the Company may permit.  If the Awardee rejects the Award Agreement, the Performance Award that would otherwise have been made to the Awardee under this Award Agreement shall be null and void and the Performance Award will be cancelled. 

		
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