Document:

Exhibit 10.2

 

AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED
EMPLOYMENT AGREEMENT (the “Agreement”) dated as of August 31, 2016 is between Tower Automotive Operations USA I, LLC,
a Delaware limited liability company (the “Company”) and Jeffrey Kersten, an individual (the “Employee”).
(The Company and the Employee are each a “Party” and, collectively, the “Parties”.)

 

WHEREAS, the Employee
is currently employed by the Company as Senior Vice President – Corporate Controller of Tower International, Inc. (“Tower”)
pursuant to an Employment Agreement dated as of March 4, 2013, as modified by that certain letter agreement between the Parties
dated December 16, 2015 (the “Prior Employment Agreement”); and

 

WHEREAS, effective
September 1, 2016 (the “Effective Date”), Employee shall be elevated to the position of Executive Vice President and
Chief Financial Officer of Tower; and

 

WHEREAS, the Parties
wish to establish the terms and conditions of the Employee’s employment as Executive Vice President and Chief Financial Officer
of Tower;

 

NOW, THEREFORE, the Parties agree as follows:

 

1.              Effectiveness.
Effective upon the Effective Date, the Company agrees to employ the Employee, and the Employee accepts such employment with the
Company, subject to, and in accordance with, the terms of this Agreement.

 

2.              Term.
Subject to earlier termination pursuant to Section 5 below, this Agreement and the employment relationship hereunder shall continue
from the Effective Date until December 31, 2017 (the “Initial Term”). The term of employment shall on each January
1 thereafter be deemed to be automatically extended, upon the same terms and conditions, for successive periods of one year, unless
either Party, at least sixty (60) calendar days prior to the expiration of the Initial Term or any extended term, shall give written
notice to the other of its or his intention not to renew such employment term. As used in this Agreement, “Term” shall
refer to the period beginning on the Effective Date and ending on the date on which the Employee’s employment terminates
in accordance with this Section 2 or Section 5. Upon the expiration of the Term or earlier termination of this Agreement and the
employment relationship hereunder, the Company shall have no further obligations to the Employee under this Agreement or otherwise,
except as specifically set forth in Section 4.6 and Section 5.

 

3.             Duties
and Title.

 

3.1           Title.
The Company shall employ the Employee to render exclusive and full-time services to the Company and the other members of the Company
Group (as defined below). The Employee shall serve in the capacity of Executive Vice President and Chief Financial Officer of Tower
and in such other positions or capacities commensurate with his position as may be requested by the Board of Directors of Tower
(the “Board”), the Chairman of the Board and/or the Chief Executive Officer of Tower (the “CEO”) (including,
without limitation, serving as an officer of, or in another capacity for, one or more members of the Company Group), and shall
report directly to the CEO. As used in this Agreement: (a) “Company Group” means the Company and its Affiliates; and
(b) “Affiliate” of any individual or entity means any other individual or entity that directly or indirectly controls,
is controlled by, or is under common control with, the individual or entity; provided that, for purposes of this Agreement, an
“Affiliate” of the Company means Tower and any entity that is owned or controlled by Tower.

 

     

     

    

  

3.2           Duties.
During the Term, the Employee shall have such authority and responsibilities and shall perform such executive duties as are customarily
performed by a chief financial officer of a company in similar lines of business as the Company and its Affiliates or as may be
assigned to the Employee by the CEO, the Board and/or the Chairman of the Board, including, without limitation, performing services
for the other members of the Company Group. Notwithstanding, anything contained herein to the contrary, the Employee’s authority
and responsibilities shall be limited to the extent determined by the Board, the Chairman of the Board and/or the CEO. During the
Term, the Employee shall devote all of his full working-time and attention to the performance of such duties and to the promotion
of the business and interests of the Company Group; provided, however, that the Employee may serve as a director of an entity with
the written approval of the Board, engage in charitable activities and manage his own personal investments so long as such activities
do not interfere with his duties and responsibilities hereunder.

 

3.3           Location.
The Employee shall perform his full-time services to the Company Group in the Company’s Livonia, Michigan office; provided,
however, that the Employee shall be required to travel as necessary to perform his duties hereunder.

 

4.             Compensation
and Benefits by the Company. As compensation for all services rendered pursuant to this Agreement (including, without limitation,
services as an officer, director or member of any committee of any member of the Company Group or any division of a member of the
Company Group), the Company shall provide the Employee with the following during the Term:

 

4.1           Base
Salary. During the Term, the Company shall pay the Employee a base salary of $450,000 on an annualized basis, payable in accordance
with the customary payroll practices of the Company (“Base Salary”). The Base Salary shall be subject to periodic review
and adjustments as the Compensation Committee of the Board (the “Committee”) deems appropriate, in its discretion.
Except to the extent commensurate with “across the board” reductions to base salaries made applicable to similarly
situated officers of the Company, the Employee’s Base Salary may not be decreased.

 

4.2           Annual
Bonus. Subject to Section 7.16 below, for each fiscal year ending during the Term, the Employee shall be eligible to receive,
under the Company’s annual incentive program pursuant to the Tower International, Inc. 2010 Equity Incentive Plan (or any
successor plan thereto) (the “2010 Plan”), an annual variable bonus payment with a target gross amount of one hundred
percent (100%) of the Employee’s annualized Base Salary (as in effect as of the beginning of the applicable fiscal year)
(the “Annual Bonus”), subject to market evaluation and adjustment of such target amounts at the discretion of the Committee.
The precise amount of the Annual Bonus shall be based on work performance and achievement of targets as determined by the Committee
at the beginning of the applicable fiscal year. If such targets are fully achieved, the Employee shall be eligible for one hundred
percent (100%) of the target Annual Bonus. If the targets are under-achieved or over-achieved, the Annual Bonus shall be reduced
or increased, as applicable, as determined by the Committee. The Annual Bonus payment shall be due and payable at such time or
times as the Committee determines (the “Annual Bonus Approval Date”), but not later than the later of May 1 of the
year following the fiscal year to which the Annual Bonus relates or thirty (30) days following approval by the Board (or committee
thereof) of the audited financial statements of the Company Group for such fiscal year. To be eligible to receive any Annual Bonus
(or portion thereof), the Employee must be employed by the Company on the Annual Bonus Approval Date, except as provided in Section
5.

 

4.3           LTI
Awards. Subject to Section 7.16 below, for each fiscal year ending during the Term, the Employee shall be eligible to receive
an annual long term incentive (LTI) award pursuant to the 2010 Plan with a target gross amount of one hundred percent (100%) of
the Employee’s annualized Base Salary (as in effect as of the beginning of the applicable fiscal year), subject to market
evaluation and adjustment of such target amounts at the discretion of the Committee.

 

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4.4           Participation
in Employee Benefit Plans. The Employee shall be entitled during the Term, if and to the extent eligible, to participate in
all of the applicable benefit plans (excluding severance plans, if any) of the Company, which may be available to other senior
executives of the Company. The Company may at any time or from time to time amend, modify, suspend or terminate any employee benefit
plan, program or arrangement for any reason without the Employee’s consent if such amendment, modification, suspension or
termination is consistent with the amendment, modification, suspension or termination for other executives of the Company.

 

4.5           Expense
Reimbursement.

 

(a)          During
the Term, the Employee shall be entitled to receive reimbursement for all appropriate business expenses incurred by him in connection
with his duties under this Agreement in accordance with the policies of the Company as in effect from time to time.

 

(b)          All
reimbursements and in-kind benefits provided under this Agreement that constitute “nonqualified deferred compensation”
within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), shall be made or
provided in accordance with Code Section 409A, and: (i) in no event shall reimbursements by the Company under this Agreement be
made later than the end of the calendar year next following the calendar year in which such fees and expenses were incurred (and
then only to the extent the Employee has submitted an invoice for such fees or expenses at least thirty (30) days before the end
of the calendar year next following the calendar year in which such fees and expenses were incurred, and the Employee has complied
with all Company policies regarding such reimbursements); (ii) the amount of in-kind benefits or expenses that the Company is obligated
to reimburse in any given calendar year (other than medical reimbursements described in Treas. Reg. Section 1.409A-3(i)(1)(iv)(B))
shall not affect the in-kind benefits or expenses eligible for reimbursement by the Company in any other calendar year; (iii) the
Employee’s right to have the Company pay or provide such reimbursements and in-kind benefits may not be liquidated or exchanged
for any other benefit; and (iv) in no event shall the Company’s obligation to make such reimbursements or to provide such
in-kind benefits apply later than the periods set forth in this Agreement.

 

4.6           2017
Retention Bonus. The Employee shall one hundred percent (100%) vest in a lump sum cash retention bonus in the amount of $722,700
(the “2017 Retention Bonus”) on the earliest to occur of: (a) December 31, 2017, provided that prior to such date:
(i) the Employee’s employment with the Company has not been terminated by the Company for Cause (as defined below), (ii)
the Employee’s employment with the Company has not been terminated by the Company following the consummation of a Change
in Control (as defined below), or (iii) the Employee has not voluntarily resigned from his employment with the Company, unless
said resignation occurs for Good Reason (as defined below) in circumstances other than a Change in Control; or (b) the date on
which the Employee terminates employment with the Company due to death or Disability (as defined below). Payment of the 2017 Retention
Bonus shall occur on the date (the “Payment Date”) on which the 2017 Retention Bonus vests; provided that, in the case
of payment upon termination of employment due to Disability, the Payment Date shall be delayed until the first business day of
the seventh month following the Employee’s termination pursuant to Section 7.11 if necessary to comply with Section 409A(a)(2)(B)
of the Code. Notwithstanding the preceding sentence, payment of the 2017 Retention Bonus shall be treated as having being made
on the Payment Date if it is made by the 15th day of the third calendar month following the Payment Date, provided that the Employee
is not permitted, directly or indirectly, to designate the taxable year of payment of the 2017 Retention Bonus.

 

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4.7               Equity
Awards. Upon the consummation of a Change in Control, all then outstanding equity-based awards granted to the Employee pursuant
to the 2010 Plan shall immediately become fully vested. 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.         

 

5.           Termination
of Employment.

 

5.1           By
the Company for Cause or by the Employee. If: (i) the Company terminates the Employee’s employment with the Company for
Cause; or (ii) the Employee terminates his employment with the Company for any reason or no reason, then the Employee shall be
entitled to receive, and the Company’s sole obligation under this Agreement or otherwise shall be to pay or provide to the
Employee, the following (collectively, the “Accrued Benefits”):

 

(a)             the
Employee’s earned, but unpaid, Base Salary through the effective date of termination (payable in accordance with Section
4.1 above) and any amounts or benefits (if any) that are vested amounts or vested benefits or that the Employee is otherwise entitled
to receive under the express provision of any plan, program, policy or practice on the effective date of termination (excluding,
without limitation, severance pay plans (if any) and any amounts or benefits (if any) that are forfeited in the event of a termination
for Cause, termination by the Employee for any reason or no reason, or other termination in accordance with the terms of the applicable
plan, program, policy, or practice), which amounts and/or benefits shall be payable or provided in accordance with the terms of
such plan, program, policy or practice;

 

(b)             any
Annual Bonus (or portion thereof), if any, relating to the fiscal year prior to the fiscal year in which the effective date of
the Employee’s termination occurs that was earned on the applicable Annual Bonus Approval Date, but unpaid, as of the date
of termination, which unpaid Annual Bonus (or portion thereof) shall be payable in accordance with Section 4.2; and

 

(c)            expenses
reimbursable under Section 4.5 incurred, but not yet reimbursed to the Employee, to the date of termination.

 

For the purposes of
this Agreement, “Cause” means, as determined by a majority of the Board and/or the CEO, in the Board’s and/or
the CEO’s reasonable business judgment acting in good faith and engaging in fair dealing with the Employee, with respect
to conduct during the Employee’s employment with the Company, whether or not committed during the Term: (i) commission of
a felony by the Employee; (ii) acts of dishonesty by the Employee resulting or intending to result in personal gain or enrichment
at the expense of any member of the Company Group or any of their respective Affiliates; (iii) the Employee’s appropriation
(or attempted appropriation) of any business opportunity of any member of the Company Group or any of their respective Affiliates,
including, without limitation, attempting to secure or securing any personal profit or benefit in connection with any transaction
entered into by or on behalf of any member of the Company Group or any of their respective Affiliates; (iv) the Employee’s
material breach of any of his duties, representations, warranties, covenants or other obligations under this Agreement; (v) conduct
by the Employee in connection with his duties hereunder that is fraudulent or grossly negligent or that the Employee knew or reasonably
should have known to be unlawful, provided that any action taken by the Employee on the advice of the Company’s General Counsel
(or his/her designee) shall not be treated as unlawful for purposes of this clause (v); (vi) engaging in personal conduct by the
Employee (including, but not limited to, employee harassment or discrimination, or the use or possession at work of any illegal
controlled substance) which seriously discredits or damages any member of the Company Group or any of their respective Affiliates;
(vii) contravention of specific lawful direction of the Board and/or the CEO, failure to adhere to any applicable policy or procedure
of the Company of which the Employee has knowledge or which has been provided to the Employee in writing, or inattention to or
failure to attempt, in good faith, to perform the material duties to be performed by the Employee under the terms of this Agreement;
or (viii) breach of the Employee’s covenants set forth in Section 6 below before termination of employment; provided, that,
with respect to clauses (iv) and (vii) only, the Employee shall have thirty (30) days after notice from the Company, which notice
shall set forth in reasonable detail a description of the deficiency determined by the Board and/or the CEO to constitute Cause,
to cure the deficiency leading to the Cause determination, if curable. A termination for “Cause” shall be effective
immediately (or on such other date set forth by the Company).

 

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1.1           5.2            By
the Company Without Cause or Due to the Company’s Decision Not to Extend a Term or By the Employee for Good Reason or Due
to Death or Disability. If, during the Term, (i) the Company terminates the Employee’s employment without Cause (which
may be done at any time with or without prior notice) or elects not to extend a term per 2 above; (ii) the Employee terminates
his employment for Good Reason upon at least thirty (30) days prior written notice and opportunity to cure; (iii) the Employee’s
employment terminates due to his death; or (iv) the Company terminates the Employee’s employment due to the Employee’s
Disability (as defined below), then, in addition to any acceleration of vesting of 2010 Plan awards pursuant to Section 4.6, the
Employee (or, in the event of the Employee’s death or incapacity, the Employee’s legal representative) shall be entitled
to receive, and the Company’s sole obligation under this Agreement or otherwise shall be to pay or provide:

 

(a)            the
Accrued Benefits and, if payable pursuant to Section 4.6 (and not yet paid), the 2017 Retention Bonus (which, for the avoidance
of doubt, shall be paid in accordance with Section 4.6); and

 

(b)            subject
to the Employee’s (or, in the event of the Employee’s death or incapacity, the Employee’s legal representative’s)
execution, delivery and non-revocation of a general release in a form satisfactory to the Company (the “Release”),
which Release, among other things, shall include a general release of the members of the Company Group, each of their respective
direct and indirect parent entities and direct and indirect subsidiaries, each of their respective Affiliates, and each of their
respective officers, directors, employees, shareholders, members, managers, partners, plan administrators, and agents, as well
as the predecessors, past and future successors and assigns or estates of any of the foregoing, from all liability; provided, however,
that the Release shall preserve the Employee’s rights, if any: (i) to indemnification under the Company Group’s Bylaws
(as amended from time to time), applicable law or otherwise, and coverage under the Company Group’s Directors and Officers
liability insurance policies for any claims arising out of or relating to the Employee’s employment with the Company; (ii)
to the Accrued Benefits; (iii) under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”);
and (iv) under any provisions of this Agreement that are intended to survive the termination of this Agreement and the Employee’s
employment hereunder (including, without limitation, the Company’s obligations under this Section 5.2 and Section 4.6):

 

(i)            an
aggregate amount equal to:

 

(A)         one
(1) times the Employee’s annualized rate of Base Salary as of the effective date of termination (the “Base Severance
Amount”); plus

 

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(B)         the
average of the Employee’s bonuses paid for the three (3) consecutive fiscal years immediately prior to the year of employment
termination, plus a pro-rated bonus for the year of the Employee’s employment termination based on the actual bonus
awards earned and paid for the fiscal year of the Employee’s termination (in the aggregate, the “Bonus Severance Amount”).
The pro-rated amount will be based on the number of days in the fiscal year up to and including the date of employment termination
in relation to the total number of days in the fiscal year; and

 

(ii)           if
the Employee (or, if eligible for continuation coverage under the terms of such plans and applicable law, the Employee’s
legal representatives) elects continuing group coverage pursuant to COBRA, the Company (on a taxable basis) shall waive (or reimburse
the Employee on a monthly basis for) the cost of such coverage to the extent that such cost exceeds the cost that the Company charges
active employees for similar coverage until the earlier of (x) the completion of the first twelve (12) months of COBRA coverage,
or (y) the date that the Employee (or the Employee’s legal representatives, if applicable) is covered under another group
health plan, subject to the terms of the plans and applicable law. The Company may modify its obligation to provide such benefit
to the extent reasonably necessary to avoid any penalty or excise taxes imposed on it under the Patient Protection and Affordable
Care Act of 2010, as amended, provided that it does so in a manner that to the extent possible, as determined by the Company in
its discretion, preserves the economic benefit and original intent of such benefit but does not cause such a penalty or excise
tax.

 

For the purposes of
this Agreement, “Disability” means a determination by the Company in accordance with applicable law that, as a result
of a physical or mental injury or illness, the Employee is unable to perform the essential functions of his job (with or without
reasonable accommodation) for a period of (i) ninety (90) consecutive days, or (ii) one hundred twenty (120) days in any twelve-month
period.

 

The Base Severance
Amount, less standard income and payroll tax withholdings and other authorized deductions, shall be payable in twelve (12) equal
monthly installments, commencing within seventy-five (75) days following the Employee’s date of termination, but in no event
later than March 15 of the year following the year in which the Employee’s date of termination occurs; provided, however,
that payment of the Base Severance Amount shall not commence unless the statutory period during which the Employee is entitled
to revoke the Release has expired during the 75-day period following the Employee’s date of termination and provided further
that any payments provided hereunder shall be made in the second taxable year if the 75-day period begins in one taxable year of
the Employee and ends in the subsequent taxable year. Each installment of the Base Severance Amount shall be treated as a separate
payment for purposes of Code Section 409A.

 

The Bonus Severance
Amount, less standard income and payroll tax withholdings and other authorized deductions, shall be payable in a single lump sum
between January 1 and March 15 of the year following the year in which the Employee’s date of termination occurs; provided,
however, that payment of the Bonus Severance Amount shall not be made unless the statutory period during which the Employee is
entitled to revoke the Release has expired.

 

The Company shall have
no obligation to provide the payments and benefits (other than Accrued Benefits) set forth above in the event that the Employee
breaches the provisions of Section 6.

 

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5.3           By
the Company without Cause or by the Employee for Good Reason Following a Change in Control. If, within two (2) years following
the consummation of a Change in Control, (i) the Company terminates the Employee’s employment without Cause (which may be
done at any time with or without prior notice and, for the avoidance of doubt, includes a termination by the Company without Cause
that occurs simultaneous with or immediately prior to the consummation of a Change in Control); or (ii) the Employee terminates
his employment for Good Reason (as defined below), upon at least thirty (30) days prior written notice and opportunity to cure;
then, in lieu of any amounts or benefits otherwise payable pursuant to Section 5.2, the Employee shall be entitled to receive,
and the Company’s sole obligation under this Agreement or otherwise shall be to pay or provide:

 

(a)            the
Accrued Benefits; and

 

(b)             subject
to the Employee’s execution, delivery and non-revocation of a Release, the terms of which are described in Section 5.2(b)
above:

 

(i)            an
aggregate amount equal to:

 

(A)         two
(2) times the Employee’s annualized rate of Base Salary as of the effective date of his employment termination (the “CIC
Base Severance Amount”); plus

 

(B)         two
(2) times the Employee’s target bonus for the year of employment termination, plus a pro-rated bonus for the year of the
Employee’s employment termination based on the actual bonus awards for the fiscal year of the Employee’s termination
(in the aggregate, the “CIC Bonus Severance Amount”). The pro-rated amount will be calculated based on the number of
days in the fiscal year up to and including the date of employment termination in relation to the total number of days in the fiscal
year; and

 

(ii)         if
the Employee (or, if eligible for continuation coverage under the terms of such plans and applicable law, the Employee’s
legal representatives) elects continuing group coverage pursuant to COBRA, the Company (on a taxable basis) shall waive (or reimburse
the Employee on a monthly basis for) the cost of such coverage to the extent that such cost exceeds the cost that the Company charges
active employees for similar coverage until the earlier of (x) the completion of the first eighteen (18) months of COBRA coverage,
or (y) the date that the Employee (or the Employee’s legal representatives, if applicable) is covered under another group
health plan, subject to the terms of the plans and applicable law. The Company may modify
its obligation to provide such benefit to the extent reasonably necessary to avoid any penalty or excise taxes imposed on it under
the Patient Protection and Affordable Care Act of 2010, as amended, provided that it does so in a manner that to the extent possible,
as determined by the Company in its discretion, preserves the economic benefit and original intent of such benefit but does not
cause such a penalty or excise tax.

 

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(c)           The
CIC Base Severance Amount, less standard income and payroll tax withholdings and other authorized deductions, shall be payable
in twenty-four (24) equal monthly installments, commencing within seventy-five (75) days following the Employee’s date of
employment termination, but in no event later than March 15 of the year following the year in which the Employee’s date of
termination occurs; provided, however, that payment of the CIC Base Severance Amount shall not commence unless the statutory period
during which the Employee is entitled to revoke the Release has expired during the 75-day period following the Employee’s
termination and provided further that any payments provided hereunder shall be made in the second taxable year if the 75-day period
begins in one taxable year of the Employee and ends in the subsequent taxable year. Each installment of the CIC Base Severance
Amount shall be treated as a separate payment for purposes of Code Section 409A.

 

(d)           The
CIC Bonus Severance Amount, less standard income and payroll tax withholdings and other authorized deductions, shall be payable
in a single lump sum between January 1 and March 15 of the year following the year in which the Employee’s date of termination
occurs; provided, however, that payment of the CIC Bonus Severance Amount shall not be made unless the statutory period during
which the Employee is entitled to revoke the Release has expired.

 

(e)           If
the payment of any of the foregoing amounts or benefits under Section 5.3 (when added to any other payments or benefits provided
to the Employee in the nature of compensation under Code Section 280G(b)(2)) (the “Total Payments”) shall be subject
to the excise tax imposed by Code Section 4999, the aggregate Present Value of the Payments (defined below) under this Agreement
shall be reduced (but not below zero) to the Reduced Amount, but only if reducing the Payments shall provide the Employee with
a Net After-Tax Benefit that is greater than if the reduction is not made. The reduction of amounts payable hereunder, if applicable,
shall be determined by the Accounting Firm (defined below) in an amount that has the least economic cost to the Employee and, to
the extent the economic cost is equivalent, then all Payments, in the aggregate, shall be reduced in the inverse order of when
the Payments, in the aggregate, would have been made to the Employee until the specified reduction is achieved. For purposes of
this Agreement, the following definitions apply:

 

“Net
After-Tax Benefit” means the Present Value of a Payment, net of all federal, state and local income, employment and excise
taxes, determined by applying the highest marginal rate(s) applicable to an individual for the Employee’s taxable year in
which Payment is made.

 

“Payment”
means any payment or distribution in the nature of compensation (within the meaning of Code Section 280G(b)(2)) to or for the benefit
of the Employee, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise.

 

“Present
Value” means the value determined in accordance with Code Section 280G.

 

“Reduced
Amount” means an amount expressed in Present Value that maximizes the aggregate Present Value of Payments without causing
any Payment to be subject to excise tax under Code Section 4999 or the corporate deduction limitation under Code Section 280G.

 

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The Code Section 280G
calculations under this Agreement and the determination that Payments shall be reduced or not reduced based on the Net After-Tax
Benefit shall be made by a nationally recognized independent public accounting firm selected by the Company (the “Accounting
Firm”), which shall provide its determination and any supporting calculations to the Company and the Employee within ten
(10) days after the Employee’s employment termination. The reasonable costs and expenses of the Accounting Firm shall be
borne by the Company. The determination by the Accounting Firm shall be binding upon the Company and the Employee. In making its
determination, the Accounting Firm shall take into account (if applicable) the value of the Employee’s non-competition covenant
set forth in Section 6 of this Agreement, which value shall be determined by the independent appraisal of a nationally-recognized
business valuation firm selected by the Company, and a portion of the Payments shall, to the extent of the appraised value, be
specifically allocated as reasonable compensation for such non-competition covenant and shall not be treated as a parachute payment.
If the Accounting Firm’s determination is disputed by the Internal Revenue Service, the Company shall reimburse the Employee
for the cost of the Employee’s reasonable attorneys’ fees for counsel selected by the Company, and any tax penalties
(including excise tax) and interest ultimately incurred by the Employee upon resolution of the dispute. Reimbursement shall be
made in accordance with the Code Section 409A procedures set forth in Section 4.5(b) hereof.

 

The Company shall have
no obligation to provide the payments and benefits (other than Accrued Benefits) set forth above in the event that Employee breaches
the provisions of Section 6.

 

For the purposes of
this Agreement, “Good Reason” means, without the Employee’s consent, (i) a material adverse reduction in Employee’s
authority, responsibilities or duties as Executive Vice President and Chief Financial Officer; or (ii) the Company’s material
breach of this Agreement; provided that a suspension of the Employee and the requirement that the Employee not report to work shall
not constitute “Good Reason” if the Employee continues to receive the compensation and benefits required by this Agreement.

 

The Employee shall
be deemed to have consented to any act or event that would otherwise give rise to “Good Reason,” unless the Employee
provides written notice to the Company specifying the act or event within thirty (30) days following the occurrence of such act
or event. The Company shall have thirty (30) days after receipt of notice from the Employee specifying the act or event otherwise
constituting Good Reason to cure the act or event that otherwise would constitute Good Reason.

 

5.4           No
Mitigation; No Offset. The Employee shall be under no obligation to seek other employment after his termination of employment
with the Company and the obligations of the Company to the Employee which arise upon the termination of his employment pursuant
to this Section 5 shall not be subject to mitigation or offset.

 

5.5           Resignation
from any Boards and Position. If the Employee’s employment is terminated for any reason under this Agreement, unless
otherwise agreed by the Parties, he shall be deemed to resign (i) if a member, from the Board or board of directors of any other
member of the Company Group or any other board to which he has been appointed or nominated by or on behalf of the Company or any
other member of the Company Group, and (ii) from any position with any member of the Company Group, including, but not limited
to, as an officer of any member of the Company Group; and the Employee agrees to take all further actions that are deemed reasonably
necessary by the Company to effectuate or evidence such resignations.

 

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6.             Restrictions
and Obligations of the Employee.

 

6.1           Confidentiality.

 

(a)            During
the course of the Employee’s employment by the Company (prior to and during the Term) or otherwise, the Employee has had
and will have access to certain trade secrets and confidential information relating to the Company and its Affiliates, its and
their respective direct and indirect parent entities and direct and indirect subsidiaries and each of their respective Affiliates,
as well as their respective predecessors, successors and assigns (collectively, the “Protected Parties”) which is not
readily available from sources outside the Protected Parties. The confidential and proprietary information and trade secrets of
the Protected Parties are among their most valuable assets, including but not limited to, their customer, supplier and vendor lists,
databases, competitive strategies, computer programs, frameworks, or models, their marketing programs, their sales, financial,
marketing, training and technical information, their product development (and proprietary product data) and any other information,
whether communicated orally, electronically, in writing or in other tangible forms concerning how the Protected Parties create,
develop, acquire or maintain their products and marketing plans, target their potential customers and operate their retail and
other businesses. The Protected Parties invested, and continue to invest, considerable amounts of time and money in their process,
technology, know-how, obtaining and developing the goodwill of their customers, their other external relationships, their data
systems and data bases, and all the information described above (hereinafter collectively referred to as “Confidential Information”),
and any misappropriation or unauthorized disclosure of Confidential Information in any form would irreparably harm the Protected
Parties. The Employee acknowledges that such Confidential Information constitutes valuable, highly confidential, special and unique
property of the Protected Parties. The Employee shall hold in a fiduciary capacity for the benefit of the Protected Parties all
Confidential Information relating to the Protected Parties and their businesses, which shall have been obtained by the Employee
during the Employee’s employment by the Company or its Affiliates or otherwise and which shall not be or become public knowledge
(other than by acts by the Employee or representatives of the Employee in violation of this Agreement). Except as required by law
or an order of a court or governmental agency with jurisdiction, the Employee shall not, during the period the Employee is employed
by the Company or its Affiliates or at any time thereafter, disclose any Confidential Information, directly or indirectly, to any
person or entity for any reason or purpose whatsoever, nor shall the Employee use it in any way, except in the course of the Employee’s
employment with, and for the benefit of, the Protected Parties or to enforce any rights or defend any claims hereunder or under
any other agreement with any Protected Party to which the Employee is a party, provided that such disclosure is relevant to the
enforcement of such rights or defense of such claims and is only disclosed to the extent necessary in the formal proceedings related
thereto. The Employee shall take all reasonable steps to safeguard the Confidential Information and to protect it against disclosure,
misuse, espionage, loss and theft. The Employee understands and agrees that the Employee shall acquire no rights to any such Confidential
Information. Notwithstanding the foregoing or anything else contained herein to the contrary, this Agreement shall not preclude
the Employee from disclosing Confidential Information to a governmental body or agency or to a court if and to the extent that
a restriction on such disclosure would limit the Employee from exercising any protected right afforded the Employee under applicable
law, including the ability to receive an award for information provided to a governmental body.

 

(b)            Employee
acknowledges receipt of the following notice under the Defend Trade Secrets Act: An individual will not be held criminally or civilly
liable under any federal or state trade secret law for the disclosure of a trade secret if he/she (i) makes such disclosure in
confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney and such disclosure
is made solely for the purpose of reporting or investigating a suspected violation of law; or (ii) such disclosure was made in
a complaint or other document filed in a lawsuit or other proceeding if such filing is made under seal.

 

    -10- 

     

    

  

(c)            All
files, records, documents, drawings, specifications, data, computer programs, evaluation mechanisms and analytics and similar items
relating thereto or to the Business (for the purposes of this Agreement, “Business” shall be as defined in Section
6.3 hereof), as well as all customer lists, specific customer information, compilations of product research and marketing techniques
of the Protected Parties, whether prepared by the Employee or otherwise coming into the Employee’s possession, shall remain
the exclusive property of the Company or other Protected Parties, as applicable, and the Employee shall not remove any such items
from the premises of the Company or other Protected Parties, except in furtherance of the Employee’s duties under this Agreement.

 

(d)             It
is understood that while employed by the Company or any of its Affiliates, the Employee will promptly disclose to the Company and
to no one else, any idea, invention, technique, modification, process, or improvement (whether patentable or not, any industrial
design (whether registrable or not), any mask work, however fixed or encoded, that is suitable to be fixed, embedded or programmed
in a product (whether recordable or not) and any work of authorship (whether or not copyright protection may be obtained for it)
created, conceived, or developed by the Employee or the Employee’s Affiliate (“Inventions”), either solely or
in conjunction with others, during Employee’s employment with the Company or any of its Affiliates, that relates in any way
to, or is useful in any manner to, the business then being conducted or proposed to be conducted by any member of the Company Group
or any of their respective Affiliates and any such item created by the Employee or the Employee’s Affiliate, either solely
or in conjunction with others, that is based upon or uses Confidential Information. Employee agrees that (i) each Invention belongs,
or shall belong, exclusively to the Company from conception, (ii) all of the Employee’s writings, works of authorship, specially
commissioned works, and other Inventions are works made for hire and are the exclusive property of the Company, including any copyrights,
patents, or other intellectual property rights pertaining thereto, and (iii) if it is determined that any such Inventions are not
works made for hire, the Employee hereby irrevocably assigns to the Company all of the Employee’s right, title and interest,
including rights of copyright, patent, and other intellectual property rights, to or in such Inventions. The Employee covenants
that the Employee shall promptly (i) provide a separate written irrevocable assignment to the Company, or to an individual or entity
designated by the Company, at the Company’s request and without additional compensation, all of the Employee’s right
to any Inventions in the United States and all foreign jurisdictions, (ii) at the Company’s expense, execute and deliver
to the Company such applications, assignments, and other documents as the Company may request in order to apply for and obtain
patents or other registrations with respect to any Invention in the United States and any foreign jurisdictions, (iii) at the Company’s
expense, execute and deliver all other papers deemed necessary by the Company to carry out the above obligations, and (iv) give
testimony and render any other assistance in support of the Company’s rights to any Invention (with the Company paying the
Employee a reasonable fee for the Employee’s time if the Employee’s employment with the Company or any of its Affiliates
has ended at the time of such testimony or assistance). In the event that the Company is unable to secure the Employee’s
signature after reasonable effort in connection with any patent, trademark, copyright or other similar protection relation to an
Invention, the Employee irrevocably designates and appoints the Company and its respective officers and agents as the Employee’s
agent and attorney-in-fact, to act for and on the Employee’s behalf and stead to execute and file any such application and
to do all other lawfully permitted acts to further the prosecution and issuance of patents, trademarks, copyrights or similar protection
thereon with the same legal force and effect as if executed by the Employee. At all times during and after the Employee’s
employment by the Company, the Employee shall assist the Company in obtaining, maintaining, and renewing patent, copyright, trademark
and other appropriate protection for any Invention, in the United States and in any foreign jurisdictions, at the Company’s
expense.

 

    -11- 

     

    

  

(e)            As
requested by the Company, from time to time and upon the termination of the Employee’s employment with the Company for any
reason or no reason, the Employee shall promptly deliver to the Company all copies and embodiments, in whatever form, of all Confidential
Information in the Employee’s possession or within his control (including, but not limited to, memoranda, records, notes,
plans, photographs, manuals, notebooks, documentation, program listings, flow charts, magnetic media, disks, diskettes, tapes and
all other materials containing any Confidential Information) irrespective of the location or form of such material. If requested
by the Company, the Employee will provide the Company with written confirmation that all such materials have been delivered to
the Company as provided herein.

 

6.2           Non-Solicitation
or Hire. During the Term and for a period of twelve (12) months following the Employee’s employment termination if such
employment termination was pursuant to Section 5.1 or Section 5.2, or twenty-four (24) months following the Employee’s employment
termination if such employment termination was pursuant to Section 5.3 (the “Non-Solicit Period”), the Employee shall
not, directly or indirectly, solicit or attempt to solicit or induce or attempt to induce, directly or indirectly, (a) any individual
or entity who or which is a customer of the Company or any of the other Protected Parties, or who or which was a customer of the
Company or any of the other Protected Parties at any time during the twelve (12) month period immediately prior to the date of
the Employee’s employment termination, for the purpose of marketing, selling or providing to any such individual or entity
any services or products offered by or available from the Company or any of the other Protected Parties (provided that if the Employee
intends to solicit any such party for any other purpose, he shall notify the Company of such intention and receive prior written
approval from the Company), (b) any supplier to or customer or client of the Company or any of the other Protected Parties to terminate,
reduce or alter negatively its relationship with the Company or any of the other Protected Parties or in any manner interfere with
any agreement or contract between the Company and/or any of the other Protected Parties and such supplier, customer or client,
or (c) any employee or agent of the Company or any of the other Protected Parties or any individual or entity who or which was
an employee or agent of the Company or any of the other Protected Parties during the twelve (12) month period immediately prior
to the date of the Employee’s employment termination, to terminate such individual’s or entity’s employment relationship
with, or engagement to perform services for, the Protected Parties in order, in either case, to enter into a similar relationship
with the Employee, or any other person or entity in competition with the Business of the Company or any of the other Protected
Parties. The Employee further agrees that, during the Non-Solicit Period, he shall not, directly or indirectly, (i) hire or engage
(or assist in the hiring or engaging of) any employee or agent of the Company or any of the other Protected Parties or any individual
or entity who or which was an employee or agent of the Company or any of the other Protected Parties during the twelve (12) month
period immediately prior to the date of the Employee’s employment termination to enter into a similar relationship with the
Employee or any other person or entity in competition with the Business of the Company or any of the other Protected Parties, (ii)
solicit, divert with the intention to take away, or attempt to divert with the intention to take away, any investment opportunity
considered by the Company or any other Protected Party, or (iii) interfere with, disrupt, or attempt to interfere with or disrupt,
or assist others to disrupt or interfere with, the relationship, contractual or otherwise, between the Company or of the other
Protected Parties and any of their respective customers, clients, accounts, investors, suppliers, lessors, consultants, independent
contractors, agents, or employees.

 

    -12- 

     

    

  

6.3           Non-Competition.
During the Term and for a period of twelve (12) months following the termination of the Employee’s employment if such employment
termination was pursuant to Section 5.1 or Section 5.2, or twenty-four (24) months following the termination of the Employee’s
employment termination if such employment termination was pursuant to Section 5.3 (the “Non-Compete Period”), the Employee
shall not, directly or indirectly, whether individually, as a director, manager, member, stockholder, partner, owner, employee,
consultant or agent of any business, or in any other capacity, other than on behalf of the Company or its Affiliates, organize,
establish, own, operate, manage, control, engage in, participate in, invest in, permit his name to be used by, act as a consultant
or advisor to, render services for (alone or in association with any person, firm, corporation or business organization), or otherwise
assist any person or entity that engages in or owns, invests in, operates, manages or controls any venture or enterprise which
engages or proposes to engage in (a) the sale, distribution, manufacturing and/or design of structural metal components and assemblies
for the automotive industry, or (b) any other business conducted by the Company, any other member of the Company Group or any of
their respective Affiliates on the date of the Employee’s termination of employment or within twelve (12) months after the
Employee’s employment termination if such employment termination was pursuant to Section 5.1 or Section 5.2, or twenty-four
(24) months after the Employee’s employment termination if such employment termination was pursuant to Section 5.3, in the
geographic locations where the Company, the other members of the Company Group and/or their respective Affiliates engage or propose
to engage in such business (the “Business”). Notwithstanding the foregoing, nothing in this Agreement shall prevent
the Employee from owning for passive investment purposes not intended to circumvent this Agreement, less than five percent (5%)
of the publicly traded common equity securities of any company engaged in the Business (so long as the Employee has no power to
manage, operate, advise, consult with or control the competing enterprise and no power, alone or in conjunction with other affiliated
parties, to select a director, manager, general partner, or similar governing official of the competing enterprise other than in
connection with the normal and customary voting powers afforded the Employee in connection with any permissible equity ownership).

 

6.4           Nondisparagement.
The Employee agrees that he shall not at any time (whether during or after the Term) publish or communicate to any person or entity
any Disparaging (as defined below) remarks, comments or statements concerning the Company, any of the other Protected Parties or
any of their present or former respective members, partners, directors, officers, shareholders, employees, agents, attorneys, successors
and assigns. “Disparaging” remarks, comments or statements are those that impugn the character, honesty, integrity
or morality or business acumen or abilities in connection with any aspect of the operation of business of the individual or entity
being disparaged. Nothing herein shall restrict or limit the Employee from exercising any protected right afforded under applicable
law, including reporting information to a governmental body in accordance with applicable law.

 

6.5           Property.
The Employee acknowledges that all originals and copies of materials, records and documents generated by him or coming into his
possession or control during his employment by the Company or its Affiliates are the sole property of the Company and/or the other
Protected Parties, as applicable (“Company Property”). During the Term, and at all times thereafter, the Employee shall
not remove, or cause to be removed, from the premises of the Company or any of the other Protected Parties, copies of any record,
file, memorandum, document, computer related information or equipment, or any other item relating to the business of the Company
or any of the other Protected Parties, except in furtherance of his duties under the Agreement. When the Employee’s employment
with the Company terminates, or upon request of the Company at any time, the Employee shall promptly deliver to the Company all
copies of Company Property in his possession or control.

 

    -13- 

     

    

 

6.6           Cooperation.
During the Term and thereafter, the Employee shall cooperate with the Company and its Affiliates in any internal investigation
or administrative, regulatory or judicial proceeding as reasonably requested by the Company (including, without limitation, the
Employee making himself available to the Company upon reasonable notice for interviews and factual investigations, appearing to
give testimony at the Company’s request without requiring service of a subpoena or other legal process, volunteering to the
Company all pertinent information and turning over to the Company all relevant documents which are or may come into the Employee’s
possession, all at times and on schedules that are reasonably consistent with the Employee’s other permitted activities and
commitments). In the event that the Company requires the Employee’s cooperation in connection with this Section 6.6, the
Company shall pay the Employee a reasonable fee if the Employee’s employment with the Company or any of its Affiliates has
ended at the time of such testimony or assistance, and the Company shall reimburse the Employee for reasonable expenses incurred
in connection herewith (including lodging and meals, upon acceptable substantiation, including receipts). Nothing herein shall
restrict or limit the Employee from exercising any protected right afforded under applicable law, including reporting information
to a governmental body in accordance with applicable law.

 

6.7           Remedies;
Specific Performance; Calculation of Time Period. The Parties acknowledge and agree that the Employee’s breach or threatened
breach of any of the restrictions set forth in Section 6 will result in irreparable and continuing damage to the Protected Parties
for which there may be no adequate remedy at law and that the Protected Parties shall be entitled to equitable relief, including
specific performance and temporary, preliminary and permanent injunctive relief (without being obligated to post a bond or other
collateral) and to an equitable accounting of all earnings, profits and other benefits arising, directly or indirectly, from such
violation, as remedies for any such breach or threatened or attempted breach. The Employee hereby consents to the grant of an injunction
(temporary or otherwise) against the Employee or the entry of any other court order against the Employee prohibiting and enjoining
him from violating, or directing him to comply with, any provision of Section 6. The Employee also agrees that such remedies shall
be in addition to any and all remedies, including damages, available to the Protected Parties against him for such breaches or
threatened or attempted breaches. In addition, without limiting the Protected Parties’ remedies for any breach of any restriction
on the Employee set forth in Section 6, except as required by law, the Employee shall not be entitled to any payments set forth
in Sections 5.2 and 5.3 hereof if the Employee has breached the covenants applicable to the Employee contained in Section 6, and
the Employee agrees to immediately return to the Company any such payments previously received under Sections 5.2 or 5.3 upon such
a breach. Further, in the event of such breach, the Company shall have no obligation to pay any of the amounts that remain payable
by the Company under Sections 5.2 and 5.3. The Employee also agrees that, without limiting the Protected Parties’ remedies
for any breach or threatened breach of his obligations under Section 6, the Employee shall be responsible for payment (in an amount
not to exceed $100,000 in the aggregate) of the attorneys’ and experts’ fees and expenses of the Protected Parties,
as well as court or other forum costs, pertaining to any suit, arbitration, mediation, action or other proceeding (including the
costs of any investigation related thereto) arising directly or indirectly out of the Employee’s violation or threatened
violation of any of the provisions of Section 6. Further, without limiting the Protected Parties’ remedies for any breach
of any restriction on the Employee set forth in Section 6, the Employee agrees that if he breaches any of restrictions set forth
in Sections 6.2 or 6.3, the running of the time period of such provision(s) shall be extended from the end of the original Non-Solicit
Period or Non-Compete Period, as applicable, for the period of time the Employee was in breach of the provision(s).

 

7.              Other
Provisions.

 

7.1           Notices.
Any notice or other communication required or which may be given hereunder shall be in writing and shall be delivered personally,
telegraphed, telexed, sent by facsimile transmission or sent by certified, registered or express mail, postage prepaid or overnight
mail and shall be deemed given when so delivered personally, telegraphed, telexed, or sent by facsimile transmission or, if mailed,
four (4) days after the date of mailing or one (1) day after overnight mail, as follows:

 

    -14- 

     

    

  

(a)          If
the Company, to:

 

Tower Automotive Operations USA
I, LLC

17672 N. Laurel Park Drive, Suite
400E

Livonia, Michigan 48152

Attn: Chief Executive Officer

Telephone: (248) 675-6000

Facsimile: (248) 675-6801

 

and

 

Lowenstein Sandler LLP

1251 Avenue of the Americas

New York, New York 10020

Attn: Robert G. Minion, Esq.

Telephone: (212) 262-6700

Facsimile: (212) 262-7402

 

(b)          If
the Employee, to the Employee’s home address reflected in the Company’s records.

 

7.2           Entire
Agreement. This Agreement contains the entire agreement between the Parties with respect to the subject matter hereof and supersedes
all prior agreements and understandings, written or oral, with respect thereto, including the Prior Employment Agreement.

 

7.3           Representations
and Warranties by the Employee. The Employee represents and warrants to the Company that: (a) he has the legal authority to
execute and perform this Agreement; (b) this Agreement is a valid and binding agreement enforceable against him according to its
terms; (c) he has consulted his attorneys and financial advisors with respect to the terms of this Agreement (specifically, including,
without limitation, the provisions of Sections 6.2 and 6.3); and (d) he is not a party to or subject to any restrictive covenants,
legal restrictions or other agreements in favor of any entity or person which would in any way preclude, inhibit, impair or limit
the Employee’s ability to perform his obligations under this Agreement, including, but not limited to, non-competition agreements,
non-solicitation agreements or confidentiality agreements. The Employee shall not disclose to the Company or to any of the other
Protected Parties, or induce the Company or any of the other Protected Parties to use, any proprietary, secret, or confidential
information or material belonging to any other individual or entity, including, without limitation, any former employers.

 

7.4           Waiver
and Amendments. This Agreement may be amended, modified, superseded, canceled, renewed or extended, and the terms and conditions
hereof may be waived, only by a written instrument signed by the Parties or, in the case of a waiver, by the Party waiving compliance.
No delay on the part of any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor
shall any waiver on the part of any right, power or privilege hereunder, nor any single or partial exercise of any right, power
or privilege hereunder, preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder.

 

    -15- 

     

    

  

7.5           Governing
Law, Dispute Resolution and Venue.

 

(a)            Any
and all actions or controversies arising out of this Agreement or the termination thereof, including, without limitation, tort
claims, shall be governed and construed in accordance with the laws of the State of New York applicable to agreements made and
not to be performed entirely within such state, without regard to conflicts of laws principles.

 

(b)             The
Parties agree irrevocably to submit to the exclusive jurisdiction of the federal courts or, if no federal jurisdiction exists,
the state courts, located in the City of New York, Borough of Manhattan, for the purposes of any suit, action or other proceeding
brought by any Party arising out of any breach of any of the provisions of this Agreement and hereby waive, and agree not to assert
by way of motion, as a defense or otherwise, in any such suit, action, or proceeding, any claim that it is not personally subject
to the jurisdiction of the above-named courts, that the suit, action or proceeding is brought in an inconvenient forum, that the
venue of the suit, action or proceeding is improper, or that the provisions of this Agreement may not be enforced in or by such
courts. In addition, the Parties irrevocably waive any right to request a trial by jury
in any such actions or controversies and represent that such Party has had the opportunity to consult with counsel specifically
with respect to this waiver.

 

7.6            Benefit
of Agreement; Delegation of Duties Prohibited. This Agreement shall inure to the benefit of, and shall be binding upon, the
Parties and their respective successors, permitted assigns, heirs, and legal representatives, including any entity with which the
Company may merge or consolidate or to which all or substantially all of its assets may be transferred. This Agreement also shall
inure to the benefit of the Protected Parties, as well as their respective successors and permitted assigns, including any entity
with which any Protected Party may merge or consolidate or to which all or substantially all of its or their assets may be transferred.
The duties and covenants of the Employee under this Agreement, being personal, may not be assigned or delegated.

 

7.7           Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which shall constitute one
and the same instrument.

 

7.8           Headings;
Construction. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect
the meaning of terms contained herein. All references to “Section” or “Sections” refer to the corresponding
Section or Sections of this Agreement unless otherwise specified. All words used in this Agreement shall be construed to be of
such gender or number as the circumstances require. Unless otherwise expressly provided, the work “including” does
not limit the preceding words or terms. Given the full and fair opportunity provided to each Party to consult with their respective
counsel with respect to the terms of this Agreement, ambiguities shall not be construed against either Party by virtue of such
Party having drafted the subject provision.

 

7.9           Severability.
If any term, provision, covenant or restriction of this Agreement, or any part thereof, is held by a court of competent jurisdiction
of any foreign, federal, state, county or local government or any other governmental, regulatory or administrative agency or authority
to be invalid, void, unenforceable or against public policy for any reason, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall in no way be affected or impaired or invalidated.
The Employee acknowledges that the restrictive covenants contained in Section 6 are a condition of this Agreement and are reasonable
and valid in temporal scope and in all other respects.

 

7.10         Judicial
Modification. If any court of competent jurisdiction determines that any of the covenants in Section 6, or any part of any
of them, is invalid or unenforceable, the remainder of such covenants and parts thereof shall not thereby be affected and shall
be given full effect, without regard to the invalid portion. If any court of competent jurisdiction determines that any of such
covenants, or any part thereof, is invalid or unenforceable because of the geographic or temporal scope of such provision, such
court shall reduce such scope to the minimum extent necessary to make such covenants valid and enforceable.

 

    -16- 

     

    

  

7.11         Compliance
with Law. This Agreement is intended to comply with the requirements of Code Section 409A and the regulations promulgated thereunder.
To the extent that any provision in this Agreement is ambiguous as to its compliance with Code Section 409A, the provision shall
be read in such a manner so that all payments under Sections 4 and 5 shall comply with Code Section 409A. For purposes of this
Agreement, the terms “employment termination,” “termination of employment” and terms of like meaning are
intended to constitute a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h)(1).
If necessary to comply with Code Section 409A(a)(2)(B) concerning payments to a “specified employee,” any payment on
account of the Employee’s separation from service that would otherwise be due hereunder within six (6) months after such
separation shall nonetheless be delayed until the first business day of the seventh month following the Employee’s separation
from service, or the Employee’s death, if earlier, at which time all delayed payments shall be aggregated and paid in a lump
sum. Notwithstanding the foregoing, the Employee shall be responsible for any taxes, interest and penalties imposed on the Employee
under or as a result of Code Section 409A in connection with the receipt of payments and benefits under this Agreement.

 

7.12         Tax
Withholding. The Employee authorizes the Company or other payor to withhold from any benefit provided or payment due hereunder,
the amount of withholding taxes due any federal, state or local authority in respect of such benefit or 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.

 

7.13          Notice
of New Employment or Engagement. The Employee shall, during the Non-Compete Period and Non-Solicit Period, give written notice
to the Company, within ten (10) calendar days after accepting any employment or other engagement to perform services, of the identity
of the individual or entity by whom or which the Employee has been employed or engaged. The Company may notify such individual
or entity that the Employee is bound by this Agreement and, at the Company’s election, furnish such individual or entity
with a copy or summary of this Agreement (in whole or in part).

 

7.14         Indemnification.
The Company shall indemnify and hold the Employee harmless, to the extent permitted by the Company’s Bylaws (as amended from
time to time), against all liability, expense or loss (including reasonable attorneys’ fees and penalties) incurred by the
Employee by reason of the fact that the Employee is an officer of the Company acting within the scope of the Employee’s duties
and authorities.

 

7.15         Survival.
The provisions of Sections 4.6, 5, 6, and 7 of this Agreement shall survive the termination of this Agreement and the employment
relationship hereunder.

 

    -17- 

     

    

 

7.16         Recoupment.
The Company’s recoupment policies shall apply to all bonuses and awards, if any, payable to the Employee under this Agreement.
If the Company restates its financial statements due to material noncompliance with any financial reporting requirements under
applicable securities laws, any payments pursuant to this Agreement for or in respect of the year that is restated, may be recovered
to the extent the payments made exceed the amount that would have been paid as a result of the restatement. Additionally, 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 or policies thereunder or as is otherwise required by applicable
law or stock exchange listing conditions. Without limitation of the foregoing, all bonuses and other incentives payable under this
Agreement will be forfeited by the Employee or recouped in their entirety by the Company if it is determined that (i) the Employee
engaged in, or knowingly permitted, intentional misconduct pertaining to any financial reporting requirement under the Federal
securities laws resulting in the Company being required to prepare and file an accounting restatement with the Securities and Exchange
Commission as a result of such misconduct; or (ii) the Employee engaged in, or knowingly permitted, any fraud, theft, misappropriation,
embezzlement or dishonesty to the material detriment of the Company’s financial results as filed with the Securities and
Exchange Commission. If triggered, then to the fullest extent permitted by law, the Company may require the Employee to reimburse
the Company for, or surrender to the Company, all or a portion of any bonus or other incentive compensation under this Agreement
received in cash or shares of Common Stock within the last twelve (12) months, and remit to the Company any profits realized from
the sale of Common Stock within the last twelve (12) months.

 

[Signatures on Following
Page]

 

    -18- 

     

    

  

IN WITNESS WHEREOF, the Parties hereto,
intending to be legally bound hereby, have executed this Agreement as of the day and year first above mentioned.

 

EMPLOYEE:

 

	/s/ Jeffrey Kersten	 
	Jeffrey Kersten	 

 

TOWER AUTOMOTIVE OPERATIONS USA I, LLC

 

	By: 	/s/ Mark M. Malcolm	 
	 	Name:	Mark M. Malcolm	 
	 	Title:	President and Chief Executive Officer	 

 

    -19-Exhibit 10.1

 

MODIFICATION
 AND REAFFIRMATION AGREEMENT

 

THIS MODIFICATION AND REAFFIRMATION AGREEMENT (this “Agreement”) is dated as of the 1st day of September, 2016, by and among DOVER DOWNS GAMING AND ENTERTAINMENT, INC., a Delaware corporation (“Borrower”), DOVER DOWNS, INC., a Delaware corporation (“Dover Downs”), and DOVER DOWNS GAMING AND MANAGEMENT CORP., a Delaware corporation (jointly and severally with Dover Downs, the “Guarantors”), and CITIZENS BANK, NATIONAL ASSOCIATION (formerly known as RBS Citizens, National Association), as agent (“Agent”), lead arranger, cash management bank and lender (“Citizens”), PNC BANK, NATIONAL ASSOCIATION, as lender (“PNC”), and WILMINGTON SAVINGS FUND SOCIETY, FSB, as lender (“WSFS” and collectively with Citizens and PNC, the “Lenders”).

 

Background

 

A.            Borrower, Agent and Lenders are parties to a Credit Agreement dated as of June 17, 2011 (as amended, the “Credit Agreement”), which provides for a revolving line of credit to the Borrower in the original principal amount of Ninety Million Dollars ($90,000,000).  Unless otherwise defined herein, initially capitalized terms have the meanings given them in the Credit Agreement.

 

B.            At Borrower’s request and as an accommodation to it, Lenders have agreed to amend the Credit Agreement as provided in this Agreement.

 

NOW, THEREFORE, in consideration of the Credit Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound and under seal, agree as follows:

 

Section 1.  Amendment to Credit Agreement.  Upon satisfaction of the Conditions Precedent (as defined herein), the Credit Agreement shall be amended as follows:

 

A.            The defined term “Maturity Date” in Section 1.1 of the Credit Agreement is hereby deleted and replaced with the following new definition:

 

“Maturity Date” means September 30, 2017.

 

B.            Section 2.5(d) of the Credit Agreement is hereby deleted and replaced with the following new Section 2.5(d):

 

(d)           Scheduled Reduction of Commitments.  The Borrower shall reduce the total Commitments (and, if necessary, prepay Loans in accordance with Section 2.7 (Optional Prepayments) so that the total Revolving Exposures do not exceed the total Commitments) on each date set forth below to the aggregate amount set forth opposite such date:

 

	
Date
    	
 
    	
Total Commitments
    	
 
    
	
03/31/17
    	
 
    	
$
    	
35,000,000
    	
 
    
					

 

 

C.            Section 5.2 of the Credit Agreement is hereby deleted and replaced with the following new Section 5.2:

 

5.2          Leverage Ratio

 

The Borrower will not permit the Leverage Ratio as of the last day of any quarter year to exceed 3.25:1.0.

 

D.            Section 5.3 of the Credit Agreement is hereby deleted and replaced with the following new Section 5.3:

 

5.3          Intentionally Omitted

 

E.            Section 5.4 of the Credit Agreement is hereby deleted and replaced with the following new Section 5.4:

 

5.4.         Intentionally Omitted

 

Section 2.  Conditions Precedent.  This Agreement shall become effective upon the satisfaction by Borrower, as determined by Agent, of the following conditions (collectively, the “Conditions Precedent”).

 

A.            Proper execution by the parties of this Agreement and delivery of this Agreement to Agent;

 

B.            Payment to the Agent for the benefit of the Lender Parties of a fee in the amount of $40,000 in consideration of this Agreement; and

 

C.            Payment to the Agent for its fees and expenses relating to this Agreement.

 

Section 3.  Affirmations.  Borrower and Guarantors hereby affirm the execution and delivery of each of the Loan Documents, and agree that all of the obligations and liabilities of Borrower and Guarantors under the Loan Documents continue in full force and effect.  Borrower and Guarantors hereby also affirm that all of the collateral received by Agent in connection with the Credit Agreement is intended to and does in fact secure each of the obligations of Borrower described in the Credit Agreement.

 

Section 4.  Agreements, Acknowledgments and Waivers.   Borrower and Guarantors acknowledge that the obligations set forth in each of the Loan Documents are valid, binding, and enforceable against them and are not subject to any defense, counterclaim, recoupment or offset.  In addition, Borrower and Guarantors acknowledge that (i) the execution of this Agreement, (ii) the acceptance by Agent or Lenders of any payments hereunder, or (iii) any previous or subsequent delay by Agent or Lenders in exercising any or all of its rights or remedies under the Loan Documents, either separately or in combination, shall not constitute a waiver by Agent or Lenders of any of the rights of Agent or Lenders under the Loan Documents and shall not preclude Agent or Lenders from exercising its rights thereunder or at law.  Nothing

 

 

herein shall be deemed a waiver of any of Agent’s or Lenders’ rights or remedies with respect to (i) any existing violation of any affirmative or negative pledge, covenant or warranty, (ii) any Event of Default, or (iii) any Default.

 

Section 5.  Miscellaneous.  The parties to this Agreement further agree as follows:

 

A.            Power and Authority.  The parties represent and warrant that each has the full power and authority to enter into and perform this Agreement, all of which has been duly authorized by all necessary corporate action and that this Agreement is valid, binding, and enforceable in accordance with its terms.

 

B.            References to Credit Agreement.  Any and all references to the Credit Agreement in any of the other Loan Documents shall be deemed to refer to the Credit Agreement as amended by this Agreement.

 

C.            Counterparts.  This Agreement may be executed by the parties hereto in any number of counterparts, each of which when so executed and delivered shall be an original and all of which together shall constitute one Agreement.

 

D.            Rules of Construction.  As used herein, unless the context clearly indicates a contrary intent or unless otherwise specifically provided herein, the singular shall include the plural and the plural the singular, and the masculine, feminine or neuter gender shall include the other genders.

 

E.            Choice of Laws.  This Agreement shall be construed and interpreted in accordance with the internal laws of the State of Delaware, without regard for principles of conflicts of laws.

 

F.             Acknowledgments.  Each party to this Agreement acknowledges that it has executed this Agreement voluntarily, with a full knowledge and a complete understanding of the terms and effect of this Agreement and that it has been fully advised by competent counsel as to the nature and effect of the applicable terms and provisions hereof.

 

G.            Representations and Warranties.  Borrower represents and warrants that the representations and warranties set forth in the Loan Documents remain true and accurate in all material respects as of the date of this Agreement (provided that references to December 31, 2010 in Sections 4.4(c) and 4.4(d) shall refer to June 30, 2016).

 

H.            Remaining Force and Effect.  Except as specifically amended hereby, the Credit Agreement and other Loan Documents remain in full force and effect in accordance with their terms.

 

{remainder of page intentionally left blank}

 

 

IN WITNESS WHEREOF, the undersigned have set their hands and seals or caused these presents to be executed by their proper corporate officers or authorized managers and sealed with their seal the day and year first above written.

 

	
 
    	
DOVER DOWNS GAMING AND   ENTERTAINMENT, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Timothy R. Horne
    	
(SEAL)
    
	
 
    	
 
    	
Timothy R. Horne
    
	
 
    	
 
    	
Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DOVER DOWNS, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Timothy R. Horne
    	
(SEAL)
    
	
 
    	
 
    	
Timothy R. Horne
    
	
 
    	
 
    	
Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DOVER DOWNS GAMING AND
   MANAGEMENT CORP.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Timothy R. Horne
    	
(SEAL)
    
	
 
    	
 
    	
Timothy R. Horne
    
	
 
    	
 
    	
Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CITIZENS BANK, NATIONAL
   ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Edward S. Winslow
    	
(SEAL)
    
	
 
    	
 
    	
Edward S. Winslow
    
	
 
    	
 
    	
Senior Vice President
    

 

{signatures continue on following page)

 

 

	
 
    	
PNC BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ C. Douglas Sawyer
    	
(SEAL)
    
	
 
    	
 
    	
Name: C. Douglas Sawyer
    
	
 
    	
 
    	
Title: Senior Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
WILMINGTON SAVINGS FUND
   SOCIETY, FSB
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ James A. Walls
    	
(SEAL)
    
	
 
    	
 
    	
Name: James A. Walls
    
	
 
    	
 
    	
Title: Vice President —   Business Banking

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