Document:

EX-10.6

Exhibit 10.6

TRW Automotive Inc.

John C. Plant 2009 Supplemental Retirement Plan

 

CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I INTRODUCTION
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	ARTICLE III VESTING OF BENEFITS
	 	 	6	 
	 
	 	 	 	 
	3.01 Vesting of Accrued Benefits
	 	 	6	 
	3.02 Vesting of Retention Incentive Credit
	 	 	6	 
	 
	 	 	 	 
	ARTICLE IV AMOUNT OF BENEFITS
	 	 	8	 
	 
	 	 	 	 
	4.01 Accrued Benefits
	 	 	8	 
	4.02 Supplemental Retirement Benefit
	 	 	8	 
	 
	 	 	 	 
	ARTICLE V MANNER OF PAYMENT OF BENEFITS
	 	 	9	 
	 
	 	 	 	 
	5.01 Time and Form of Payment of Accrued Benefit and Retention Incentive Credit
	 	 	9	 
	5.02 Time and Form of Payment for Supplemental Retirement Benefit
	 	 	9	 
	 
	 	 	 	 
	ARTICLE VI MISCELLANEOUS PROVISIONS
	 	 	10	 
	 
	 	 	 	 
	6.01 Income Tax Withholding
	 	 	10	 
	6.02 OASDI/Medicare Payroll Taxes Gross-Up
	 	 	10	 
	6.03 Funding
	 	 	10	 
	6.04 ERISA Status
	 	 	11	 
	6.05 Assignment
	 	 	11	 
	6.06 Employment Rights
	 	 	11	 
	6.07 Administration
	 	 	11	 
	6.08 Incompetent Persons
	 	 	11	 
	6.09 Amendment/Termination of the Plan
	 	 	12	 
	6.10 Successors
	 	 	12	 
	6.11 Governing Law
	 	 	12	 
	6.12 Construction
	 	 	12	 
	6.13 Claims Procedure
	 	 	13	 

i

 

ARTICLE I

INTRODUCTION

The TRW Automotive Inc. Executive Supplemental Retirement Plan (the “Prior Plan”) was
initially adopted effective as of February 28, 2003. The Prior Plan was established and maintained
by TRW Automotive Inc. a Delaware corporation (the “Employer”), in order to provide
retirement benefits for its President and Chief Executive Officer, John C. Plant (the
“Participant”), in accordance with the terms of the Employment Agreement (as hereinafter
defined).

The Prior Plan was intended to provide a level of retirement benefits essentially equal to the
benefit that the Participant would have received had he spent his entire career with the Employer
and TRW in the United States and had accrued retirement benefits under the United States qualified
pension plan (without regard to the limitations on pensionable compensation and benefit amounts
under that plan), but taking into account accrued and vested pension benefits otherwise due him
under the United Kingdom pension scheme maintained by TRW Limited. The Prior Plan was intended to
be a non-qualified “top hat” plan for purposes of the Employee Retirement Security Act of 1974, as
amended (“ERISA”). The Participant and the Employer have agreed that the Prior Plan shall
be terminated as of January 1, 2009 and the Employer will contribute to the Employee Trust (as
defined below) a lump sum payment of $19,436,710 on January 2, 2009 in full satisfaction of the
Participant’s rights under the Prior Plan and in accordance with the transition relief rules
promulgated by the Treasury Department under Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”).

This John C. Plant 2009 Supplemental Retirement Plan (the “Plan”) is effective as of
January 1, 2009 and is intended to provide the Participant with additional retirement benefit
accruals commencing January 1, 2009, subject to the vesting terms set forth herein. This Plan is
intended to be a non-qualified “top hat” plan for purposes of ERISA and is intended to comply with
Section 409A of the Code. In the event that the Participant terminates Employment prior to January
1, 2009, this Plan shall be void ab initio, and the Participant’s rights to benefits shall be
determined by reference to the Prior Plan as in effect immediately prior to the adoption of this
Plan (with such modifications to payment terms as required to avoid subjecting the Participant to
additional taxation under Section 409A of the Code).

 

2

ARTICLE II

DEFINITIONS

	2.01	 	As used herein, the terms set forth below shall have the meanings indicated:

	 	(a)	 	Accrued Benefit means the lump sum that is Actuarially
Equivalent to (i) the annual life annuity defined by the formula set forth
under (1), (2) and (3) below, adjusted by (ii) the lump sum amounts described
under (4) through (8) below:

	 	(1)	 	1.5% of Earnings, multiplied by years and
months of Pensionable Employment prior to January 1, 2013;
less
	 
	 	(2)	 	0.4% of Covered Compensation at the
Participant’s date of termination, multiplied by years and months of
Pensionable Employment prior to January 1, 2013; plus
	 
	 	(3)	 	1.33% of Earnings, multiplied by years and
months of Pensionable Employment after December 31, 2012; plus
	 
	 	(4)	 	The OASDI/Medicare payroll and related taxes
gross-up amount, as described in Section 6.02; less
	 
	 	(5)	 	The aggregate amount paid to the Participant
(or returned to the Employer) from the Employee Trust on the Employee
Trust Payment Date (exclusive of any tax adjustment payments pursuant
to the Employment Agreement); less
	 
	 	(6)	 	$18,326,074; less
	 
	 	(7)	 	the lump sum Actuarial Equivalent of any
incremental benefit accruals to the Participant under the UK Scheme
after December 31, 2008; less
	 
	 	(8)	 	in the event the Participant continues to earn
an Accrued Benefit beyond the Normal Vesting Date, the portion of the
Accrued Benefit paid to the Participant on the Normal Vesting Date.

	 	 	 	An example of how the Accrued Benefit is calculated is illustrated in
Exhibit A hereto.
	 
	 	(b)	 	Actuarially Equivalent (or Actuarial Equivalent) means
having the same actuarial present value as determined under the following
assumptions:

          Mortality: Rates as described in IRS Revenue Ruling 2007-67 (as such rates may
be updated from time to time).

 

3

Interest: 30-year Treasury rate as published for November 2008
(4.0%).

	 	(c)	 	Beneficiary means the Participant’s Spouse or, if the
Participant has no Spouse, the Participant’s estate.
	 
	 	(d)	 	Board means the Board of Directors of the Employer.
	 
	 	(e)	 	Cause shall have the meaning assigned to such term
under the Employment Agreement.
	 
	 	(f)	 	Code means the Internal Revenue Code of 1986 as
amended.
	 
	 	(g)	 	Covered Compensation shall have the same meaning as
that contained in the TRW Automotive Inc. Salaried Pension Plan.
	 
	 	(h)	 	Disability shall have the meaning assigned to such term
under the Employment Agreement.
	 
	 	(i)	 	Earnings means the sum of (a) the Base Salary received
in the twelve (12) month period preceding the Participant’s termination of
Employment, but not less than $1,350,000, and (b) the average of the Annual
Bonuses earned with respect to the four (4) completed fiscal years among the
eight (8) completed fiscal years immediately preceding the Participant’s
termination of Employment that produces the highest such average, but not less
than $650,000. For purposes of this Plan, the terms “Base Salary,” “Annual
Bonuses” and “Employment Term” will have the meanings assigned to them in the
Employment Agreement.
	 
	 	(j)	 	Employee Trust means a funded “secular” trust created
for the benefit of the Participant, pursuant to which the Participant shall be
entitled to receive the amounts contributed to such trust together with
earnings (positive or negative) thereon on December 31, 2010 (or on such
earlier dates as set forth under the Employment Agreement and trust agreement,
subject to the vesting terms set forth thereunder).
	 
	 	(k)	 	Employee Trust Payment Date means the date upon which
all amounts held in the Employee Trust shall be (i) paid to the Participant (to
the extent such amounts become vested) or (ii) returned to the Employer (to the
extent such amounts are forfeited by the Participant), in each case, pursuant
to the terms of the Employment Agreement and the Employee Trust.
	 
	 	(l)	 	Employer means TRW Automotive Inc., a Delaware
Corporation, and its affiliates.
	 
	 	(m)	 	Employment means the Participant’s employment with the
Employer, which shall be deemed to terminate as of the date on which the
Participant

 

4

	 	 	 	has a “separation from service” with the Employer within the meaning of
Section 409A of the Code.
	 
	 	(n)	 	Employment Agreement means the employment agreement
dated February 6, 2003, by and between TRW Automotive Acquisition Corp. and TRW
Limited and the Participant, as may be amended from time to time.
	 
	 	(o)	 	Good Reason shall have the meaning assigned to such
term under the Employment Agreement.
	 
	 	(p)	 	Normal Vesting Date means December 31, 2010.
	 
	 	(q)	 	Participant means John C. Plant.
	 
	 	(r)	 	Pensionable Employment means Participant’s global
service with the Employer.
	 
	 	(s)	 	Plan means this John C. Plant 2009 Supplemental
Retirement Plan, including any amendments thereto, as set forth in this
document.
	 
	 	(t)	 	Retention Incentive Credit means a lump sum payment of
$3,700,000 which shall accrue at a rate of $77,083.33 per month from January
2009 through December 2012.
	 
	 	(u)	 	Retention Vesting Date means December 31, 2012.
	 
	 	(v)	 	Spouse means the person to whom the Participant is
married as of the date of his death.
	 
	 	(w)	 	Supplemental Retirement Benefit shall mean an amount
equal to the excess of (i) the lump sum Actuarial Equivalent of the
amount which the Participant would have earned as the Accrued Benefit and
Retention Incentive Credit if the Participant had remained employed with the
Employer for an additional two years following the date of his actual
termination of Employment (treating such amount as fully vested for purposes of
Article III of the Plan), over (ii) the lump sum Actuarial Equivalent
amount of the Participant’s Accrued Benefit and Retention Incentive Credit as
of the date of his termination of Employment.
	 
	 	(x)	 	TRW means TRW Inc. and any predecessor company, and any
company which was in the same controlled group as TRW (as defined in Code
section 1563(a) determined without regard to sections 1563(a)(4) or 1563
(e)(3)(C)).
	 
	 	(y)	 	UK Scheme means the TRW Pension Scheme established by a
trust deed dated June 30, 1928, as amended, and its successors.

 

5

	 	(z)	 	Window Period shall have the meaning assigned to such
term under the Employment Agreement.

 

6

ARTICLE III

VESTING OF BENEFITS

	3.01	 	Vesting of Accrued Benefits

	 	(a)	 	Generally The Participant’s rights to any Accrued
Benefits under the Plan shall become 100% vested on the Normal Vesting Date,
subject to the Participant’s continued Employment through such date.
	 
	 	(b)	 	Voluntary Termination of Employment or Termination for
Cause In the event that the Participant voluntarily terminates Employment
(other than for Good Reason or during a Window Period) or the Participant is
terminated by the Employer for Cause, in each case, prior to the Normal Vesting
Date, the Participant shall forfeit all Accrued Benefits under the Plan without
the payment of any consideration by the Employer in respect thereof.
	 
	 	(c)	 	Termination due to Death or Disability In the event
that the Participant terminates Employment due to the Participant’s death or
Disability prior to the Normal Vesting Date, the Participant shall be fully
vested in the Accrued Benefits earned through the date of the Participant’s
termination of Employment due to death or Disability.
	 
	 	(d)	 	Termination without Cause; for Good Reason; or During a
Window Period In the event that the Participant’s Employment is terminated
(i) by the Employer without Cause, (ii) by the Participant for Good Reason or
(iii) by the Participant during a Window Period, in each case, prior to the
Normal Vesting Date, then (A) the Participant shall be fully vested in the
Accrued Benefits earned through the date of such termination of Employment and
(B) the Participant shall be entitled to receive the Supplemental Retirement
Benefit subject to the terms set forth under Articles IV and V.

	3.02	 	Vesting of Retention Incentive Credit

	 	(a)	 	Generally The Participant’s rights to any Retention
Incentive Credit under the Plan shall become 100% vested on the Retention
Vesting Date, subject to the Participant’s continued Employment through such
date.
	 
	 	(b)	 	Voluntary Termination of Employment or Termination for
Cause In the event that the Participant voluntarily terminates Employment
(other than for Good Reason or during a Window Period) or the Participant is
terminated by the Employer for Cause, in each case, prior to the Retention
Vesting Date, the Participant shall forfeit his entire Retention Incentive
Credit under the Plan without the payment of any consideration by the Employer
in respect thereof.

 

7

	 	(c)	 	Termination due to Death or Disability In the event
that the Participant terminates Employment due to the Participant’s death or
Disability prior to the Retention Vesting Date, the Participant shall be fully
vested in the portion of the Retention Incentive Credit earned through the date
of the Participant’s termination of Employment due to death or Disability.
	 
	 	(d)	 	Termination without Cause; for Good Reason; or During a
Window Period In the event that the Participant’s Employment is terminated
(i) by the Employer without Cause, (ii) by the Participant for Good Reason or
(iii) by the Participant during a Window Period, in each case, prior to the
Retention Vesting Date, then (A) the Participant shall be fully vested in the
portion of the Retention Incentive Credit earned through the date of such
termination of Employment and (B) the Participant shall be entitled to receive
the Supplemental Retirement Benefit subject to the terms set forth under
Articles IV and V.

 

8

ARTICLE IV

AMOUNT OF BENEFITS

	4.01	 	Accrued Benefits
	 
	 	 	Following any termination of the Participant’s Employment, the Participant shall be
entitled to receive the Accrued Benefits and the Retention Incentive Credit earned
through the date of his termination of Employment, to the extent then vested
pursuant to Article III hereof, payable at the time set forth under Section 5.01.

	4.02	 	Supplemental Retirement Benefit
	 
	 	 	Following a termination of the Participant’s Employment (i) by the Employer without
Cause, (ii) by the Participant for Good Reason or (iii) by the Participant during a
Window Period, the Participant shall be entitled to receive the Supplemental
Retirement Benefit, payable at the time set forth under Section 5.02.

 

9

ARTICLE V

MANNER OF PAYMENT OF BENEFITS

	5.01	 	Time and Form of Payment of Accrued Benefit and Retention Incentive Credit
	 
	 	 	The Participant’s Accrued Benefit and Retention Incentive Credit under the Plan
(other than any amounts payable under Section 6.02) shall be paid (to the extent
vested) to the Participant (or to the Participant’s Beneficiary following the date
of the Participant’s death) in the form of lump sum payment on the earlier
of (i) the first day of the seventh month following the Participant’s termination of
Employment or (ii) a date that is within 90 days following the date of the
Participant’s death; provided, however, that in the event the
Participant has not terminated Employment prior to the Normal Vesting Date, the
Accrued Benefit earned through the Normal Vesting Date shall be paid to the
Participant in a lump sum on such date. No other timing or form of payment will be
permitted. An example of how the lump sum payments are calculated is illustrated in
Exhibit A hereto.
	 
	5.02	 	Time and Form of Payment for Supplemental Retirement Benefit
	 
	 	 	In the event the Participant is entitled to receive a Supplemental Retirement
Benefit pursuant to Section 4.02, such Supplemental Retirement Benefit shall be paid
to the Participant in equal monthly installments over the period commencing on the
first day of the seventh month following the Participant’s termination of Employment
and ending on the second anniversary of the date of the Participant’s termination of
Employment; provided, however, that the Participant’s right to
receive such payments shall be subject to the Participant’s continued compliance
with the provisions of Section 8 and 9 of the Employment Agreement (except for
insignificant breaches of Section 9 of the Employment Agreement as reasonably
determined by the Employer).

 

10

ARTICLE VI

MISCELLANEOUS PROVISIONS

	6.01	 	Income Tax Withholding
	 
	 	 	The Employer or its agent shall deduct from all distributions under the Plan the
amount of federal and state income taxes it is required to withhold.
	 
	6.02	 	OASDI/Medicare Payroll Taxes Gross-Up 
	 
	 	 	The value of benefits accrued under the Plan are expected to be wages for purposes
of the OASDI (old-age, survivors and disability insurance) and Medicare payroll
taxes. Whenever such OASDI and Medicare payroll taxes become due, but subject to
Treas. Reg. § 1.409A-3(j)(4)(vi), the Employer shall pay the Participant’s share of
the OASDI and Medicare portion of such payroll taxes, plus an amount, which when
added to such payroll taxes paid, shall result in the Participant having no-after
tax cost for the Employer’s payment of such payroll taxes. The payments required by
this section shall be considered part of the Participant’s Accrued Benefit. In
calculating such payments, the Employer shall make a reasonable good faith estimate
of the sum of the Participant’s top marginal federal, after-tax state and local tax
brackets, as well as the impact of any resulting foreign taxes or credits, or any
excise taxes, in all cases taking into account Participant’s individual
circumstances. The Employer shall retain an independent certified public accountant
at the Employer’s cost, whose selection shall be approved by the Participant, to
calculate the sum of the Participant’s top marginal federal, after-tax state and
local tax brackets, as well as the impact of any resulting foreign taxes or credits,
or any excise taxes, in all cases taking into account Participant’s individual
circumstances.
	 
	6.03	 	Funding

	 	(a)	 	The Employer shall contribute cash to pay benefits under the
Plan through an irrevocable grantor trust; provided, however, that no
such contributions shall be made at any time when such contributions would
subject the Participant to additional taxation pursuant to Section 409A(b)(3)
of the Code. The trust assets are to be used exclusively to pay benefits under
the Plan. However, in the event the Employer becomes insolvent or seeks
protection under the bankruptcy laws, the trust assets must be paid over to the
Employer as provided in the trust agreement and will be subject to the claims
of the Employer’s general creditors. Neither the Participant nor his
beneficiary shall have any right, title or interest in or to any investments
which the Employer may make to aid it in meeting its obligations hereunder. To
the extent that any person acquires a right to receive benefits from the
Employer under the Plan, such right shall be no greater than the right of an
unsecured general creditor of the Employer.

 

11

	 	(b)	 	The terms of the Employer’s trust contribution obligation shall
be governed by the terms of the trust, a copy of which is attached hereto and
is incorporated herein by reference.

	6.04	 	ERISA Status
	 
	 	 	The Plan is an unfunded promise to pay deferred compensation. It is not intended to
comply with the rules for qualified plans in section 401(a) of the Internal Revenue
Code. The Plan is designed to be exempt from the rules for employee benefit plans in
Title I (except Parts One and Five) of the Employee Retirement Income Security Act
of 1974 (ERISA). Participation in the Plan is limited to a single highly
compensated management employee who qualifies as such under Title I of ERISA.
	 
	6.05	 	Assignment
	 
	 	 	Except to the extent required by law, neither the Participant nor any other person
shall have the right to assign, pledge, mortgage, transfer or otherwise encumber
benefits under the Plan in advance of actual receipt thereof.
	 
	6.06	 	Employment Rights
	 
	 	 	The Plan is not an employment contract and it creates no right to continue
Employment for any length of time.
	 
	6.07	 	Administration
	 
	 	 	The Board administers the Plan and has the sole discretionary authority to do all
things necessary to administer the Plan, including construing its language and
determining eligibility for benefits. The Board has the sole discretionary authority
to equitably adjust the Participant’s rights under the Plan or the amount of the
Participant’s benefit. The Board may adopt any rules necessary to administer the
Plan which are not inconsistent with its terms. The Board may delegate its authority
to administer the Plan. Notwithstanding anything to the contrary herein, any action
taken by the Board under this Section 6.07 must be consistent with, and shall in no
way contravene, the provisions of Section 5(c) of the Employment Agreement and the
Participant’s rights thereunder.
	 
	6.08	 	Incompetent Persons
	 
	 	 	If the Board finds that any person entitled to a benefit under the Plan is unable to
manage his or her affairs because of legal incompetence, the Board, in its
discretion, may pay the benefit due such person to an individual deemed by the Board
to be responsible for the maintenance of such person. Any such payment constitutes a
complete discharge of the Employer’s liability under the Plan.

 

12

	6.09	 	Amendment/Termination of the Plan
	 
	 	 	This Plan represents the entire agreement between Employer and Participant. The
Employer through action of the Board may amend or terminate the Plan by a written
instrument, provided such amendment or termination is consistent with, and in no way
contravenes, the provisions of Section 5(c) of the Employment Agreement and the
Participant’s rights thereunder. An amendment (including an amendment to terminate
the Plan) to the Plan cannot reduce or eliminate the Participant’s Accrued Benefit
as of the later of the effective date or execution date of such amendment. No
amendment (including an amendment to terminate the Plan) may be executed or made
effective on or after the date of a Change of Control (as defined in the Employment
Agreement) without the Participant’s written consent.
	 
	6.10	 	Successors
	 
	 	 	The Plan is binding on the beneficiaries, executor and administrator of the
Participant, and upon the successors (by sale, merger consolidation or otherwise) of
the Employer.
	 
	6.11	 	Governing Law
	 
	 	 	The validity and construction of the Plan is governed by the laws of the State of
New York without giving effect to the principles of conflicts of law. Further,
notwithstanding anything to the contrary herein, the Plan shall be construed in
accordance with the terms of Section 409A of the Code, wherever and to the extent
applicable.
	 
	6.12	 	Construction
	 
	 	 	The following principles apply to the construction of the Plan.

	 	(a)	 	Interpretation of Plan The Board or its delegate has
the sole discretionary authority to construe the language of the Plan and to
resolve all questions concerning eligibility for benefits, plan administration
and interpretation of the plan document.
	 
	 	(b)	 	Invalidity of Any Provision In the event any provision
of the Plan is declared to be invalid, in whole or in part, such provision is
null and void. The remaining provisions of the Plan are unaffected and remain
in full force and effect. However, the Board, in its discretion may construe
the provision in such a manner that it is valid in the jurisdiction where it is
declared to be invalid.
	 
	 	(c)	 	Enforceability of Any Provision A provision of the
Plan which is invalid in any jurisdiction remains in effect and is enforceable
in all jurisdictions in which the provision is valid.

 

13

	6.13	 	Claims Procedure
	 
	 	 	The claims procedure set forth in this paragraph is the exclusive method of
resolving disputes that arise under the Plan.

	 	(a)	 	Written Claim The claim must be in writing. All
claims must be submitted to the Board within 12 months of the date on which the
claimant contends he or she first had a right to receive a benefit under the
Plan.
	 
	 	(b)	 	Denial of Claim Where the Board denies a claim, in
whole or in part, it must furnish the claimant with a written notice of the
denial setting forth the following information, in a manner calculated to be
understood by the claimant.

	 	(1)	 	A statement of the specific reasons for the
denial of the claim.
	 
	 	(2)	 	References to the specific provisions of the
Plan on which the denial is based.
	 
	 	(3)	 	A description of any additional material or
information necessary to perfect the claim with an explanation of why
such material or information is necessary.
	 
	 	(4)	 	An explanation of the claims review procedure
with a statement that the claimant must request review of the decision
denying the claim within 90 days following the date on which such
notice was received by the claimant.

	 	 	 	The written notice of denial must be mailed to the claimant within 90 days
following the date on which the claim was received by the Board. If special
circumstances require an extension of time for processing a claim, the
written notice may be mailed to the claimant not more than 180 days
following the date on which the claim was received by the Board. Within the
initial 90-day period, the claimant must be notified in writing of the
extension, of the special circumstances requiring the extension and of the
date by which the claimant will be furnished with written notice of the
decision concerning the claim.
	 
	 	(c)	 	Review of Denial The claimant may request review of
the denial of a claim. A request for review must be mailed to the Board within
90 days of the date on which the written notice of denial is received by the
claimant and must set forth the following information.

	 	(1)	 	The date on which the notice of denial of the
claim was received by the claimant.
	 
	 	(2)	 	The specific portions of the denial of the
claim that the claimant disputes.

 

14

	 	(3)	 	A statement by the claimant setting forth the
basis upon which the claimant believes the Board should reverse the
denial of the claim for benefits under the Plan.
	 
	 	(4)	 	Written material (included as exhibits) that
the claimant desires the Board to examine.

	 	(d)	 	Decision on Review The Board must afford the claimant
an opportunity to review documents pertinent to the claim and must conduct a
full and fair review of the claim and its denial. The Board’s decision on
review must be furnished to the claimant in writing in a manner calculated to
be understood by the claimant, and it must include a statement of the reasons
for the decision with references to the specific provisions of the Plan upon
which the decision is based. The decision on review must be mailed to the
claimant within 90 days following the date on which the request for review is
received by the Board. If special circumstances require an extension of time to
consider a request for review, the Board’s written review of the claim may be
mailed to the claimant not more than 180 days after the Board received the
request for review. Within the initial 90-day period, the Board must notify the
claimant in writing of the extension, of the special circumstances requiring
the extension and of the date by which the claimant will be furnished with
written notice of the decision reviewing the claim.
	 
	 	(e)	 	Transmission of Documents All written documents
required by these claim procedures must be sent by first-class certified mail
(return receipt requested) through the United States Postal Service. The date
on which any document is mailed is determined by the postmark affixed to the
document by the United States Postal Service. The date on which any document is
received is determined by the date on the signed receipt for certified mail.
Notices to the Participant must be mailed to the Participant’s last known
address. Notices to the Board must be mailed to:

TRW Automotive Inc.

12001 Tech Center Drive

Livonia, Michigan 48150

Attention: General Counsel

 

15

EXECUTION

WHEREFORE, the Employer and Participant have executed this Plan on the 18th day of
December, 2008.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	TRW AUTOMOTIVE INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By
	 	/s/ Neil E. Marchuk
 

Neil E. Marchuk
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Its
	 	Executive Vice President, Human Resources
 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	PARTICIPANT	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	/s/ John C. Plant
 

     John C. Plant
	 	 
	 
	ATTEST:

/s/ Sheri Roberts
 

Sheri Roberts

	 	 	 	 	 	 	 	 

 

Exhibit A

The following example is hypothetical and intended to illustrate Plan arithmetic. Actual
benefits and lump sums under the Plan will depend on the timing and circumstances of Mr.
Plant’s retirement, and on his compensation history at that date. The illustration is based on
the assumption that Mr. Plant’s Base Salary will increase at a rate approximating 4% per year,
and that the Annual Bonus earned in a given year will vary by 150%, 200% or 250% of Base
Salary as indicated below.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	a

	 	Normal Retirement age under Plan Provisions
	 	 	 	 	 	 	 	 	 	 	57 1/2	 
	b

	 	Actual age of retirement
	 	 	 	 	 	 	 	 	 	 	59	 
	 	 	Calculate accrued annual gross Plan benefit at age 59	 	 	 	 	 	 	 	 
	 

	 	Base Salary in prior year
	 	 	 	 	 	$	1,966,000	 	 	 	 	 
	 

	 	Annual Bonus in prior year
	 	 	200	%	 	$	3,932,000	 	 	 	 	 
	 

	 	Annual Bonus in second prior year
	 	 	150	%	 	$	2,835,000	 	 	 	 	 
	 

	 	Annual Bonus in third prior year
	 	 	200	%	 	$	3,634,000	 	 	 	 	 
	 

	 	Annual Bonus in fourth prior year
	 	 	250	%	 	$	4,367,500	 	 	 	 	 
	 

	 	Annual Bonus in fifth prior year
	 	Actual
	 	$	3,904,000	 	 	 	 	 
	 

	 	Annual Bonus in sixth prior year
	 	Actual
	 	$	3,610,800	 	 	 	 	 
	 

	 	Annual Bonus in seventh prior year
	 	Actual
	 	$	3,658,000	 	 	 	 	 
	 

	 	Annual Bonus in eighth prior year
	 	Actual
	 	$	3,115,830	 	 	 	 	 
	 

	 	Earnings to apply in gross benefit formula
	 	 	 	 	 	 	 	 	 	$	5,931,375	 
	 

	 	Years of Pensionable Employment at age 59
	 	 	 	 	 	 	 	 	 	 	35	 
	c	 	Annual gross Plan benefit, payable for life commencing at 59	 	$	3,102,600	 
	d	 	Present Value at 1/01/2013, of $1 per year payable for life commencing on this date*	 	 	15.1127	 
	e	 	Lump sum value at 1/1/2013 = d x c	 	$	46,888,508	 
	f	 	Lump sum adjusted for Medicare gross-up ( 2.6%)	 	$	48,107,609	 
	g	 	Aggregate amount paid from the Employee Trust on the Employee Trust Payment Date **	 	$	(19,670,650	)
	h	 	Amount Specified in 2.01 (a) (6)	 	$	(18,326,074	)
	i	 	Accrued Benefit Paid on the Normal Vesting Date***	 	 	—	 
	j	 	Accrued Benefit****	 	$	10,110,885	 

 

			
	*	 	Under the terms of the Plan, the factor that will be used in converting the formula benefit to an
actuarially equivalent lump sum will be based on a 4.0% interest rate and on mortality rates prescribed
by the IRS for use in determining minimum lump sums in the year in which the distribution occurs. The
factor used in the illustration above are based on the mortality rates published for use in 2013.
	 
	**	 	Assumes investment earnings of .6% (net of applicable taxes) on initial trust deposit of $19,436,710.
	 
	***	 	Assume zero for purposes of this illustration
	 
	****	 	The Retention Incentive Credit has been excluded for purposes of this illustrationEX-10.1

Exhibit 10.1

FOURTEENTH AMENDMENT TO CREDIT AGREEMENT

     FOURTEENTH AMENDMENT, dated as of December 19, 2008 (this “Amendment”), to the Credit
and Guaranty Agreement, dated as of July 19, 2007, as amended by the First Amendment and Waiver to
Credit Agreement, dated as of November 9, 2007, the Second Amendment to Credit Agreement, dated as
of March 12, 2008, the Third Amendment to Credit Agreement, dated as of March 26, 2008, the Fourth
Amendment to Credit Agreement, dated as of July 18, 2008, the Fifth Amendment to Credit Agreement,
dated as of July 24, 2008, the Sixth Amendment to Credit Agreement, dated as of August 25, 2008,
the Seventh Amendment to Credit Agreement, dated as of September 30, 2008, the Eighth Amendment to
Credit Agreement, dated as of October 2, 2008, the Ninth Amendment to Credit Agreement, dated as of
October 29, 2008, the Tenth Amendment to Credit Agreement, dated as of November 6, 2008, the
Eleventh Amendment to Credit Agreement, dated as of November 14, 2008, the Twelfth Amendment to
Credit Agreement, dated as of November 21, 2008, the Thirteenth Amendment to Credit Agreement,
dated as of December 4, 2008 and that certain letter agreement dated February 26, 2008 (as further
amended, restated or otherwise modified from time to time, the “Credit Agreement”), by and
among Proliance International Inc., a Delaware corporation (“Holdings” and
the “Borrower”), certain domestic subsidiaries of the Borrower listed as a “Guarantor” on
the signature pages thereto (together with each other Person (as defined in the Credit Agreement)
that guarantees all or any portion of the Obligations (as defined in the Credit Agreement) from
time to time, each a “Guarantor” and collectively, the “Guarantors”), the lenders
from time to time party thereto (each a “Lender” and collectively, the “Lenders”),
Silver Point Finance, LLC, a Delaware limited liability company (“Silver Point”), as
collateral agent for the Agents (as hereinafter defined) and the Lenders (in such capacity,
together with its successors and assigns in such capacity, if any, the “Collateral Agent”),
and as administrative agent for the Agents and the Lenders (in such capacity, together with its
successors and assigns in such capacity, if any, the “Administrative Agent” and together
with the Collateral Agent, each an “Agent” and collectively, the “Agents”) and
Silver Point as lead arranger (in such capacity, together with its successors and assigns in such
capacity, if any, the “Lead Arranger”).

     WHEREAS, capitalized terms used in these recitals shall have the respective meanings set forth
in the Credit Agreement unless otherwise defined herein.

     WHEREAS, the Credit Parties have requested that the Agents and the Lenders amend certain
provisions of the Credit Agreement, subject to the terms and conditions set forth in this
Amendment.

     WHEREAS, the Agent and the Lenders are willing to agree to this requested Amendment, but only
upon the terms and subject to the conditions set forth herein.

     NOW, THEREFORE, in consideration of the foregoing and the mutual promises contained herein,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Credit Parties, the Agents and the Lenders hereby agree as follows:

 

 

     1. Definitions. All capitalized terms used herein and not otherwise defined herein
are used herein as defined in the Credit Agreement.

     2. Defined Terms in the Credit Agreement. Section 1.1 of the Credit Agreement is
hereby amended, as follows:

          (a) New Definitions. Section 1.1 of the Credit Agreement is hereby amended by adding
the definitions of the following terms thereto, in alphabetical order, to read in their entirety as
follows:

          “‘Fourteenth Amendment’ means the Fourteenth Amendment to the Credit Agreement, dated as of
December 19, 2008, by and among the Credit Parties, the Requisite Lenders and the Agents.”

          “‘Fourteenth Amendment Effective Date’ has the meaning ascribed to the term “Fourteenth
Amendment Effective Date” in the Fourteenth Amendment.”

     3. Section 2.23 — Southaven Insurance Proceeds Reserve. Section 2.23 of the Credit
Agreement is hereby amended by replacing the references therein to “December 19, 2008” with
“January 5, 2009”.

     4. Section 5.13 — Interest Rate Protection. Section 5.13 of the Credit Agreement is
hereby amended by replacing the reference therein to “December 31, 2008” with “January 31, 2009”

     5. Conditions to Effectiveness. This Amendment shall become effective (the
“Fourteenth Amendment Effective Date”) only upon satisfaction in full of the following
conditions precedent:

     (a) Collateral Agent shall have received counterparts of this Amendment that bear the
signatures of each Credit Party, each Agent and the Requisite Lenders.

     (b) Except as set forth in the Second Amendment, the Third Amendment, the Fourth Amendment,
the Fifth Amendment, the Sixth Amendment, the Seventh Amendment, the Eighth Amendment, the Ninth
Amendment, the Tenth Amendment, the Eleventh Amendment, the Twelfth Amendment and the Thirteenth
Amendment, the representations and warranties contained herein, in Section IV of the Credit
Agreement and in each other Credit Document are true and correct in all material respects on and as
of the Fourteenth Amendment Effective Date as though made on and as of such date, except to the
extent that any such representation or warranty expressly relates solely to an earlier date (in
which case such representation or warranty shall be true and correct in all material respects on
and as of such earlier date).

     (c) Borrower shall have paid to Administrative Agent all amounts due and owing to any Agent or
any Lender in connection with this Amendment and the Credit Documents.

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     (d) No Default or Event of Default shall have occurred and be continuing on the Fourteenth
Amendment Effective Date or would result from this Amendment becoming effective in accordance with
its terms.

     (e) All legal matters incident to this Amendment shall be reasonably satisfactory to the
Agents and their respective counsel.

     6. Representations and Warranties. Each Credit Party represents and warrants as
follows:

     (a) Organization, Good Standing, Etc. Each Credit Party (i) is a corporation, limited
liability company or limited partnership, duly organized, validly existing and in good standing
under the laws of the state or jurisdiction of its organization, (ii) has all requisite power and
authority to execute and deliver this Amendment, consummate the transactions contemplated hereby
and perform the Credit Agreement, as amended and modified hereby and (iii) is duly qualified to do
business and is in good standing in each jurisdiction in which the character of the properties
owned or leased by it or in which the transaction of its business makes such qualification
necessary other than in such jurisdictions where the failure to be so qualified and in good
standing could not reasonably be expected to have a Material Adverse Effect.

     (b) Authorization, Etc. The execution, delivery and performance by each Credit Party
of this Amendment and the performance by each Credit Party of the Credit Agreement, as amended and
modified hereby (i) have been duly authorized by all necessary action, (ii) do not and will not
contravene its charter or by-laws, its limited liability company or operating agreement or its
certificate of partnership or partnership agreement, as applicable, or any applicable law, or any
contractual restriction binding on or otherwise affecting it or any of its properties, (iii) do not
and will not result in or require the creation of any Lien (other than pursuant to any Credit
Document) upon or with respect to any of its properties, and (iv) do not and will not result in any
default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any
material permit, license, authorization or approval applicable to its operations or any of its
properties.

     (c) Governmental Approvals. No authorization or approval or other action by, and no
notice to or filing with, any Governmental Authority is required in connection with the due
execution, delivery and performance by any Credit Party of this Amendment or the performance by any
Credit Party of the Credit Agreement, as amended and modified hereby.

     (d) Enforceability of Credit Documents. Each of this Amendment and the Credit
Agreement, as amended and modified hereby, is a legal, valid and binding obligation of the Credit
Parties which are party hereto or thereto, enforceable against such Credit Parties in accordance
with its terms, except as enforceability may be limited by equitable principles and by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’
rights generally.

     (e) Representations and Warranties; No Default. Except as set forth in the Second
Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment, the
Seventh Amendment, the Eighth Amendment, the Ninth Amendment, the

-3-

 

Tenth Amendment, the Eleventh Amendment, the Twelfth Amendment and the Thirteenth Amendment,
the representations and warranties contained herein, in Section IV of the Credit Agreement and in
each other Credit Document are true and correct in all material respects on and as of the
Fourteenth Amendment Effective Date as though made on and as of such date, except to the extent
that any such representation or warranty expressly relates solely to an earlier date (in which case
such representation or warranty shall be true and correct in all material respects on and as of
such earlier date); and no Default or Event of Default shall have occurred and be continuing on the
Fourteenth Amendment Effective Date or would result from this Amendment becoming effective in
accordance with its terms.

     7. Effect of Amendment; Continued Effectiveness of the Credit Agreement.

     (a) Ratifications. Except as otherwise expressly provided herein, (i) the Credit
Agreement and the other Credit Documents are, and shall continue to be, in full force and effect
and are hereby ratified and confirmed in all respects, except that on and after the Fourteenth
Amendment Effective Date (A) all references in the Credit Agreement to “this Agreement”, “hereto”,
“hereof”, “hereunder” or words of like import referring to the Credit Agreement shall mean the
Credit Agreement as amended and modified by this Amendment, and (B) all references in the other
Credit Documents to the “Credit Agreement”, “thereto”, “thereof”, “thereunder” or words of like
import referring to the Credit Agreement shall mean the Credit Agreement as amended and modified by
this Amendment, (ii) to the extent that the Credit Agreement or any other Credit Document purports
to pledge to the Collateral Agent, or to grant to the Collateral Agent a security interest in or
lien on, any collateral as security for the Obligations or the Guaranteed Obligations, such pledge
or grant of a security interest or lien is hereby ratified and confirmed in all respects, and (iii)
the execution, delivery and effectiveness of this Amendment shall not operate as an amendment of
any right, power or remedy of the Agents or the Lenders under the Credit Agreement or any other
Credit Document, nor constitute an amendment of any provision of the Credit Agreement or any other
Credit Document. This Amendment shall be effective only in the specific instances and for the
specific purposes set forth herein and does not allow for any other or further departure from the
terms and conditions of the Credit Agreement or any other Credit Document, which terms and
conditions shall remain in full force and effect.

     (b) No Waivers. Except as expressly set forth herein, this Amendment is not a waiver
of, or consent to, any Default or Event of Default now existing or hereafter arising under the
Credit Agreement or any other Credit Document and the Agents and the Lenders expressly reserve all
of their rights and remedies under the Credit Agreement and the other Credit Documents in respect
of all such Defaults or Events of Default not waived or consented to hereby, by the Second
Amendment, by the Third Amendment, by the Fourth Amendment, by the Fifth Amendment, by the Sixth
Amendment, the Seventh Amendment, the Eighth Amendment, the Ninth Amendment, the Tenth Amendment,
the Eleventh Amendment, the Twelfth Amendment or the Thirteenth Amendment, under applicable law or
otherwise.

     (c) Amendment as Credit Document. Each Credit Party confirms and agrees that this
Amendment shall constitute a Credit Document under the Credit Agreement. Accordingly, it shall be
an Event of Default under the Credit Agreement if any representation or warranty made or deemed
made by any Credit Party under or in connection with this

-4-

 

Amendment shall have been incorrect in any material respect when made or deemed made or if any
Credit Party fails to perform or comply with any covenant or agreement contained herein.

     8. Release. Each Credit Party hereby acknowledges and agrees that: (a) neither it
nor any of its Affiliates has any claim or cause of action against any Agent, the Borrowing Base
Agent or any Lender (or any of their respective Affiliates, officers, directors, employees,
attorneys, consultants or agents) and (b) each Agent, the Borrowing Base Agent, and each Lender has
heretofore properly performed and satisfied in a timely manner all of its obligations to the Credit
Parties and their Affiliates under the Credit Agreement and the other Credit Documents.
Notwithstanding the foregoing, the Agents, the Borrowing Base Agent and the Lenders wish (and the
Credit Parties agree) to eliminate any possibility that any past conditions, acts, omissions,
events or circumstances would impair or otherwise adversely affect any of the Agents’, the
Borrowing Base Agent’s and the Lenders’ rights, interests, security and/or remedies under the
Credit Agreement and the other Credit Documents. Accordingly, for and in consideration of the
agreements contained in this Amendment and other good and valuable consideration, each Credit Party
(for itself and its Affiliates and the successors, assigns, heirs and representatives of each of
the foregoing) (collectively, the “Releasors”) does hereby fully, finally, unconditionally
and irrevocably release and forever discharge each Agent, the Borrowing Base Agent, each Lender and
each of their respective Affiliates, officers, directors, employees, attorneys, consultants and
agents (collectively, the “Released Parties”) from any and all debts, claims, obligations,
damages, costs, attorneys’ fees, suits, demands, liabilities, actions, proceedings and causes of
action, in each case, whether known or unknown, contingent or fixed, direct or indirect, and of
whatever nature or description, and whether in law or in equity, under contract, tort, statute or
otherwise (collectively, “Claims”), which any Releasor has heretofore had or now or
hereafter can, shall or may have against any Released Party by reason of any act, omission or thing
whatsoever done or omitted to be done (collectively, “Actions”) on or prior to the
Fourteenth Amendment Effective Date arising out of, connected with or related in any way to this
Amendment, the Credit Agreement or any other Credit Document, or any act, event or transaction
related or attendant thereto done or omitted to be done on or prior to the Fourteenth Amendment
Effective Date, or the agreements of any Agent, the Borrowing Base Agent or any Lender contained
therein, or the possession, use, operation or control of any of the assets of any Credit Party, or
the making of any Loans or other advances, or the management of such Loans or advances or the
Collateral on or prior to the Fourteenth Amendment Effective Date. For the avoidance of doubt,
nothing contained in this Amendment shall be deemed to release or discharge any Released Party from
any Claims arising out of, in connection with or related in any way to Actions occurring after the
date of this Amendment.

     9. Miscellaneous.

     (a) Counterparts. This Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which shall be deemed to be an original,
but all of which taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of this Amendment by telefacsimile or electronic mail shall be equally
effective as delivery of an original executed counterpart of this Amendment.

-5-

 

     (b) Headings. Section and paragraph headings herein are included for convenience of
reference only and shall not constitute a part of this Amendment for any other purpose.

     (c) Governing Law. This Amendment shall be governed by, and construed in accordance
with, the laws of the State of New York.

     (d) Expenses. The Borrower will pay on demand all reasonable fees, costs and expenses
of the Agents, the Borrowing Base Agent and the Lenders in connection with the preparation,
execution and delivery of this Amendment and all documents incidental hereto, including, without
limitation, the reasonable fees, disbursements and other charges of Schulte Roth & Zabel LLP,
counsel to Administrative Agent and Collateral Agent, and of McGuireWoods LLP, counsel to Borrowing
Base Agent. In addition, the Borrower will pay all costs and expenses, including attorneys’ fees
(including allocated costs of internal counsel) and costs of settlement, incurred by any Agent,
Borrowing Base Agent and Lenders in enforcing any Obligations of or in collecting any payments due
from any Credit Party hereunder or under the other Credit Documents by reason of any Default or
Event of Default (including in connection with the sale of, collection from, or other realization
upon any of the Collateral or the enforcement of the Guaranty) or in connection with any
refinancing or restructuring of the credit arrangements provided hereunder in the nature of a “work
out” or pursuant to any insolvency or bankruptcy cases or proceedings (including, without
limitation, the costs and expenses of any advisers retained by Agents, the Borrowing Base Agent and
Lenders; provided, that so long as no Event of Default has occurred and is continuing the
Borrower shall not be responsible for costs and expenses of CRS in excess of $25,000).

[Remainder of this page intentionally left blank]

-6-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 	 
	 	 	BORROWER:	 
	 
	 	 	 	 	 
	 	 	PROLIANCE INTERNATIONAL, INC.	 
	 
	 	 	 	 	 
	 

	 	By:
	 	/s/Arlen F. Henock	 
	 

	 	 	 	 	 
	 

	 	 	 	Name: Arlen F. Henock

Title: Executive Vice President, Chief Financial Officer	 
	 
	 	 	 	 	 
	 	 	GUARANTORS:	 
	 
	 	 	 	 	 
	 	 	AFTERMARKET LLC	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Arlen F. Henock	 
	 

	 	 	 	 	 
	 

	 	 	 	Name: Arlen F. Henock

Title: Vice President	 
	 
	 	 	 	 	 
	 	 	AFTERMARKET DELAWARE CORPORATION	 
	 
	 	 	 	 	 
	 

	 	By:
	 	/s/ Arlen F. Henock	 
	 

	 	 	 	 	 
	 

	 	 	 	Name: Arlen F. Henock

Title: Vice President	 
	 
	 	 	 	 	 
	 	 	PROLIANCE INTERNATIONAL HOLDING CORPORATION	 
	 
	 	 	 	 	 
	 

	 	By:
	 	/s/ Arlen F. Henock	 
	 

	 	 	 	 	 
	 

	 	 	 	Name: Arlen F. Henock

Title:President	 

 

 

	 	 	 	 	 	 
	 	 	AGENTS AND LEAD ARRANGER:	 
	 
	 	 	 	 	 
	 	 	SILVER POINT FINANCE, LLC, as Administrative
Agent, Lead Arranger and Collateral Agent	 
	 
	 	 	 	 	 
	 

	 	By:
	 	/s/ Zachary M. Zeitlin	 
	 

	 	 	 	 	 
	 

	 	 	 	Name: Zachary M. Zeitlin

Title: Authorized Signatory	 
	 
	 	 	 	 	 
	 	 	LENDERS:	 
	 
	 	 	 	 	 
	 	 	SPF CDO I, LTD., as a Lender	 
	 
	 	 	 	 	 
	 

	 	By:
	 	/s/ Zachary M. Zeitlin	 
	 

	 	 	 	 	 
	 

	 	 	 	Name: Zachary M. Zeitlin

Title: Authorized Signatory	 
	 
	 	 	 	 	 
	 	 	FIELD POINT III, LTD. as a Lender	 
	 
	 	 	 	 	 
	 

	 	By:
	 	/s/ Zachary M. Zeitlin	 
	 

	 	 	 	 	 
	 

	 	 	 	Name: Zachary M. Zeitlin

Title: Authorized Signatory	 
	 
	 	 	 	 	 
	 	 	Title FIELD POINT IV, LTD. as a Lender	 
	 
	 	 	 	 	 
	 

	 	By:
	 	/s/ Zachary M. Zeitlin	 
	 

	 	 	 	 	 
	 

	 	 	 	Name: Zachary M. Zeitlin

Title: Authorized Signatory	 

 

 

	 	 	 	 	 	 
	 	 	BORROWING BASE AGENT AND LENDER:	 
	 
	 	 	 	 	 
	 	 	WELLS FARGO FOOTHILL, LLC, as Borrowing Base
Agent and
a Lender	 
	 

	 	 	 	 	 
	 

	 	By:	 	/s/ Jonathan Boynton	 
	 

	 	 	 	 	 
	 

	 	 	 	Name: Jonathan Boynton

Title: Vice President

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