Document:

Exhibit

	
			
	Exhibit 10.21
	[Terex Logo]
	 

	 
	 
	Kevin A. Barr

	 
	 
	Chief Human Resources Officer

	 
	 
	Office:  (203) 222-5905

	 
	 
	E-mail: kevin.barr@terex.com

February 2, 2017

John D. Sheehan

We are pleased to confirm our offer to you for the position of Senior Vice President and Chief Financial Officer, Terex Corporation based in Westport, CT, and reporting directly to John Garrison, CEO. You will be responsible for the Finance, Information Technology, and Terex Financial Services functions. As we discussed, this is a very visible position in our Company and one that presents a number of challenges and opportunities.

The following represents our offer of employment to you:

		
	1.
	You will be compensated at the rate of $25,000 per BI-WEEKLY pay period which annualizes to $650,000.  

		
	2.
	You will be eligible to participate in the Terex Management Incentive Bonus Plan effective on your date of hire with a target set at 75% of your base salary (pro-rated for partial year participation). The eligibility for and elements of the Plan are adjusted each year by the Company and typically include formulas based on both Terex financial performance as well as individual performance.  You can earn more or less than your target amount based on Terex’s financial performance and your individual performance and achievement of goals.  Each year, you will be issued a copy of the Plan for that year setting forth the details, including conditions for payout, for that year.  The details will be presented to you shortly after you begin employment.

		
	3.
	Subject to compliance with all applicable laws, and conditioned on the formal ratification by the Compensation Committee of the Board of Directors, you will be a participant in the Terex Corporation 2009 Omnibus Incentive Plan. Under this Plan, you will receive an initial grant of shares of Restricted Stock.  In determining the number of shares the company will use a one-time valuation number of $1,600,000 whereby $1,600,000 will be divided by the closing price of Terex stock on the last business day of the month in which your employment begins to determine the appropriate number of shares. The Restricted Stock provided for you in this letter will then be issued to you on the last business day of the month during which your employment begins with the Company (the “Grant Date”).  All shares vest ratably over a three (3) year period based on the Grant Date. Additional details will be presented to you shortly after you begin employment. Future eligibility, frequency, type, or amount of awards will be linked to company financial performance and individual performance and vary over time.

		
	4.
	In addition, subject to compliance with all applicable laws, and conditioned on the formal ratification of the Compensation Committee of the Board of Directors, you will be eligible for a 2017 long term incentive award in the amount of $1,950,000, which will be both time and performance based. The timing and form of this award will be consistent with the timing and form of similar 2017 long term incentive awards granted to other Terex executives. Subject to your performance and Company performance, you can anticipate that future annual long term incentive awards will be approximately three (3) times your annual base salary, with the amount, timing and form subject to the approval of the Compensation Committee of the Board of Directors.

		
	5.
	You will be eligible to participate in either the Terex Deferred Compensation Plan (“DCP”) or the ERISA Excess Plan (“EEP”) offered to senior level executives. Both the DCP and EEP Plan provide alternatives for use in deferring income taxes. There is a 25% matching contribution on eligible deferrals to the Terex Stock Fund in the DCP. There is a matching contribution of up to 5% for eligible deferrals to the EEP. 

Terex Corporation   200 Nyala Farm Road   Westport, CT 06880 USA   TEL +1 203 222 7170   FAX +1 203 222 7976   www.terex.com

[Terex Logo]

		
	6.
	You will be eligible to participate in the Terex Corporation Defined Contribution Supplemental Executive Retirement Plan which provides for an annual contribution of 10% of your annual salary and bonus earned to be deposited to the Bond Fund of the DCP. Upon hire, you will receive credit for five (5) Years of Participation, as defined in the DCP, which will be applied to the ten (10) Years of Participation requirement for vesting purposes. Additional details of this plan will be provided to you separately.

		
	7.
	The Company will provide change in control and severance protection upon commencement of your employment, which will be for twenty-four (24) months of salary, bonus, and benefits, in accordance with the provisions of the Change in Control and Severance Agreement provided to you simultaneously herewith (the “Severance Agreement” and such severance as defined therein, “Severance”). 

In addition, in the event your employment is terminated for any reason other than for Cause (as defined in your Severance Agreement) or you terminate your employment with the Company for Good Reason (as defined in your Severance Agreement), the Company will pay you Severance in accordance with the provisions of the Severance Agreement.

		
	8.
	You will receive relocation reimbursement as outlined on the attachment “Relocation Expense Reimbursement.” Should you resign or be released for cause, as determined by the Company in its sole discretion, within one (1) year of relocation, you would be required to repay the Company a prorated amount of the total relocation expenses based on the number of full months of employment after relocation (e.g. if after relocation you worked for 9 months and then resigned, you would be required to repay twenty-five percent of your relocation expenses).

		
	9.
	You will be eligible for twenty working days (20) of paid vacation annually. This will be pro-rated for your first year, based on your date of hire. 

		
	10.
	Following two (2) years of service and subject to the approval of the Board of Directors of Terex Corporation, you will have the ability to serve as an external member on a Board of Directors.

		
	11.
	Terex Corporation currently offers a comprehensive benefits program including medical, dental, vision, life insurance, and disability benefits, a 401 (k) plan with a Company match, and an employee stock purchase plan with a Company match.  Benefits for eligible team members become effective 1st of the month coinciding with or following 30 days of employment unless otherwise noted.  Additional details will be mailed to you under separate cover.  

		
	12.
	Your employment with Terex Corporation will start on a date to be arranged but it is expected to start on or before February 27, 2017.

If you accept this job offer, you will be required to successfully complete a background check and a drug test. Please contact Yola Smeriglio at 203-341-6784 regarding the procedure, location, and information required. 

Confidentiality
		
	(a)
	You agree that you will not at any time, either during your employment with Terex or thereafter, divulge to any person, firm or corporation outside of Terex Corporation, any confidential or privileged information or trade secrets received by you during the course of your employment, with regard to the financial, business operations, manufacturing methods, processes, know-how, or procedures of Terex Corporation, or any of its affiliated 

Terex Corporation   200 Nyala Farm Road   Westport, CT 06880 USA   TEL +1 203 222 7170   FAX +1 203 222 7976   www.terex.com

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[Terex Logo]

companies, parent or subsidiaries.  All such information shall be kept confidential and shall not, in any manner, be revealed to anyone, provided, however, that the foregoing provision shall not apply to any information which is or generally becomes available to the public through no breach by yourself of this paragraph.

		
	(b)
	You agree that you will not at any time during the period of your employment hereunder engage in any business or own or control any interest in, or act as a director, officer, team member, agent or consultant of, any firm, corporation, partnership or other entity, directly or indirectly engaged in the business being conducted by Terex Corporation, or its affiliated companies, parent or subsidiaries, or which manufactures or sells products which are in direct competition with the products sold by Terex Corporation, or its affiliated companies, parent or subsidiaries. 

(c)  You agree that you have not disclosed any trade secrets or confidential information of your prior employer(s) to the Company during the course of these negotiations and that you have not been asked to do so by the Company.  You further agree that you will not disclose any trade secrets or confidential information of your prior employer(s) to the Company at any time during your employment with the Company.  By way of illustration but not limitation, “confidential information” means non-public proprietary company information including:  information and materials related to proprietary products, services, experimental work, research, pricing information, business procedures, strategies, and methodologies, customer lists and business histories, analyses of customer information, and technical data and/or specifications related to your prior employer’s(s’) products.

(d) Despite the confidentiality provisions in this agreement, you shall be immune from civil or criminal liability for disclosure of trade secrets in three situations: (1) where you disclose the trade secret in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney for the purpose of reporting or investigating a suspected violation of law; (2) where you disclose the trade secret in a sealed filing in a lawsuit or other proceeding; and/or (3) where you disclose the trade secret to your attorney in the course of pursuing a lawsuit where you allege retaliation for reporting a suspected violation of the law.

Terex Code of Ethics and Conduct
We have enclosed for your review the Terex Code of Ethics and Conduct (the “Code”).  Terex is committed to an ethical business culture based on our Terex Way values, as described in the Code.  You agree that you will comply with all aspects of the Code during your employment with the Company.
  
Employment at Will
Nothing in this offer of employment should be construed, understood, or interpreted to mean, promise, guarantee, contract, or imply employment by Terex Corporation for any definite or specific length of time.  Employment is strictly at will and you or the Company can end your employment at any time, for any reason not prohibited by law.

I want to thank you again, for your interest in Terex Corporation. We believe Terex has a very bright future and feel that it can provide you with challenging and rewarding experiences.

Please indicate your acceptance of this offer by signing the enclosed copy and returning it to me at your earliest convenience.

Sincerely,

/s/ Kevin Barr
Kevin Barr

Terex Corporation   200 Nyala Farm Road   Westport, CT 06880 USA   TEL +1 203 222 7170   FAX +1 203 222 7976   www.terex.com

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[Terex Logo]

Senior Vice President Human Resources

Accepted: _/s/ John D. Sheehan_____________________
                       John D. Sheehan

Date Signed:  February 5, 2017

Terex Corporation   200 Nyala Farm Road   Westport, CT 06880 USA   TEL +1 203 222 7170   FAX +1 203 222 7976   www.terex.com

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[Terex Logo]

Relocation Expense Reimbursements for Executives

Full benefit details will be provided to you by AIReS, our Relocation provider  
upon receipt of your authorized relocation

	
		
	Relocation Allowance
	Lump sum payment of $55,000, to be paid within 30 days of relocation to Westport. Paid through local Terex payroll. Taxable, not grossed-up.

	Closing Costs – Sale of Primary Residence
	Normal and customary closing costs, including licensed broker’s sale commission up to a maximum of 6% of the contract sale price.

	House Hunting Trips
	Two trips, not to exceed ten days total.

	Closing Costs – Purchase of Primary Residence
	Normal and customary closing costs.

	Temporary Living Expense
	Up to 45 days.

	Movement of Household Goods
	Full service includes packing and partial unpacking.  Some limitations apply.

	Storage
	Up to 45 days.

	Family Travel to new Location
	Reimbursement for reasonable travel expenses, including meals and lodging, for the employee and immediate family while en route to the new location.

	Tax Gross-up of Applicable Items
	Relocation expenses will be grossed-up at the employee’s tax rate.

This relocation package is offered for a time period up to twelve (12) months after the hire/transfer date. 

/s/ Kevin Barr
Kevin Barr

Should I resign or be released for cause, as determined by the Company in its sole discretion, within one (1) year of relocation, I will repay the Company a prorated amount of the total relocation expenses based on the number of full months of my employment after relocation (e.g. if after relocation I work for 9 months and then resign, I will be required to repay twenty-five percent of my relocation expenses).  I agree that repayment is due immediately upon my termination of employment and I further agree that any portion or amount of the repayment can be offset from monies owed to me at the time of termination.

Accepted: /s/ John D. Sheehan
         John D. Sheehan
    
Date Signed: February 5, 2017

Terex Corporation   200 Nyala Farm Road   Westport, CT 06880 USA   TEL +1 203 222 7170   FAX +1 203 222 7976   www.terex.com

5Exhibit

AMENDED AND RESTATED AMERICAN AXLE & MANUFACTURING HOLDINGS, INC. 
2012 OMNIBUS INCENTIVE PLAN  
2018 INCENTIVE COMPENSATION PROGRAM FOR EXECUTIVE OFFICERS 

The 2018 Incentive Compensation Program for Executive Officers (the “Program”) operates under and is otherwise subject to the terms of the Amended and Restated American Axle & Manufacturing Holdings, Inc. 2012 Omnibus Incentive Plan (the “Plan”). Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan. 
ARTICLE 1
DEFINITIONS

When used in the Program, the following words and phrases shall have the following meanings unless the context clearly indicates another meaning:

1.1    Administrator means the Management Benefits Committee acting through the Corporate Human Resources Department, as set forth in Article 5.
1.2    Base Salary means a Participant’s monthly gross regular rate of pay from the Company or a Subsidiary as of December 1 of a Program Year or on the date of a Participant’s death, Disability, Retirement, before any required reductions or withholdings or reductions under any salary reduction agreement between a Participant and the Company or a Subsidiary. Base Salary shall not include overtime, bonuses, compensation paid in kind, special allowances or reimbursements to cover expenses paid or incurred on behalf of the Company or a Subsidiary or in the course of employment with the Company or a Subsidiary, the Company’s contribution to this Program or to any pension or profit sharing plan to which the Company or a Subsidiary makes contributions, or the Company or applicable Subsidiary’s contribution to any employee welfare plan or arrangement.
1.3    Bonus Award means a Cash-Based Award under the Plan determined in accordance with Article 3. 
1.4    Bonus Award Multiplier means the applicable annual target bonus percentage of the Eligible Employee’s Base Salary. 
1.5    CEO means the Chief Executive Officer of the Company.
1.6    CFO means the Chief Financial Officer of the Company.
1.7    Covered Earnings means a Participant’s Base Salary multiplied by his or her Months of Participation during a Program Year. 
1.8    Eligible Employee means an Executive Officer.
1.9    Executive Officer means “executive officer” of the Company as defined in Section 16 of the Securities Exchange Act of 1934 and the rules thereunder, as determined by the Board of Directors.
1.10    GAAP means generally accepted accounting principles in the United States.

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1.11    Month of Participation means each full or partial month during which an employee of the Company or a Subsidiary is an Eligible Employee. An Eligible Employee who, during the Program Year, dies, Retires, or incurs a Disability will be credited with his or her Months of Participation through the month of death, Retirement, Disability or transfer but not thereafter.
1.12    Payment Date means the date or dates on which Bonus Awards under the Program are paid to Participants as determined in accordance with Section 4.1 hereof.
1.13    Program Year means the 12-month period beginning on January 1 and ending on December 31 of each year.
1.14    Weighted Percentage means the percentage allocation (relative weighting) assigned to each of the applicable Performance Measures for each Program Year, as approved by the Committee in consultation with the CEO and CFO.
ARTICLE 2
PARTICIPATION

2.1    Participation.  An individual who becomes an Eligible Employee before October 1 of a Program Year shall be a Participant for such Program Year.  An individual who becomes an Eligible Employee on or after October 1 of a Program Year shall not be a Participant for such Program Year, but shall become a Participant for the next succeeding Program Year on January 1 of such next succeeding Program Year in the event and to the extent such individual remains an Eligible Employee continuously into such succeeding Program Year.
2.2    Eligibility.  Each Participant:
		
	a.
	who remains an Eligible Employee through the last day of a Program Year and continuously throughout the next succeeding Program Year up to and including the Payment Date;  or

		
	b.
	whose participation in the Program terminated during the Program Year due to the Participant’s:

		
	i.
	death; or

		
	ii.
	Disability; or

		
	iii.
	Retirement; 

shall be entitled to receive a Bonus Award, except as otherwise provided herein.
ARTICLE 3
CALCULATION OF BONUS AWARDS

3.1    Bonus Award Formula.  The Bonus Award of an Executive Officer for a particular Program Year shall be determined pursuant to this Article 3 and shall be equal to the sum of the amounts calculated for each applicable Performance Measure pursuant to the following formula: 
		
	1.
	the bonus award percentage which corresponds to the applicable Performance Measure for the Program Year; 

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	2.
	multiplied by the Weighted Percentage assigned to each such Performance Measure; 

		
	3.
	multiplied by the Covered Earnings of the Executive Officer for the Program Year;

		
	4.
	multiplied by the Bonus Award Multiplier of the Executive Officer for the Program Year.

3.2    Weighted Percentages.  Each Program Year the Committee, in consultation with the CEO and CFO, shall assign a Weighted Percentage to each of the Performance Measures, which may be between 0% and 100%. For purposes of determining Bonus Awards for Executive Officers, the Weighted Percentages for all of the Performance Measures must total 100%. A list setting forth all Weighted Percentages for each of the Performance Measures shall be established for each Program Year based on the recommendation of the CEO and CFO and approval of the Committee. For the avoidance of doubt, such listing need not include any Performance Measures for which the Weighted Percentage is 0%. 
3.3    Individual Performance Adjustments. Anything in this Program to the contrary notwithstanding, the amount of a Participant’s Bonus Award for a given Program Year shall be subject to review and adjustment by the CEO, who shall have the discretion to increase, decrease, or eliminate entirely (“Individual Performance Adjustments”) any Bonus Award determined pursuant to this Article 3; provided, however, that the amount of an Executive Officer’s Bonus Award must be approved by the Committee and cannot exceed the annual individual limit under the Plan applicable to Cash-Based Awards.
3.4    Requirement of Profitability.  Except as provided in the Plan, no Bonus Award shall be payable pursuant to this Program to any Participant for any Program Year in which the Company’s audited consolidated financial statements contained in its Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) for such Program Year do not report positive net income for the Program Year in question after reflecting all costs and expenses associated with the Plan for such Program Year.
ARTICLE 4
PAYMENT OF BONUS AWARD

4.1    Time and Manner of Payment.  Payment of a Participant’s Bonus Award for a Program Year shall be made not later than March 15 of the subsequent year. Provided, however, that if the employment of a Participant by the Company shall terminate during a Program Year, or prior to March 15 of the subsequent year, for a reason other than his or her death, Disability, or Retirement, the Participant shall forfeit all rights to a Bonus Award in such Program Year and no Bonus Award shall be paid to such Participant for such Program Year. Notwithstanding any provision of the Program to the contrary, the Company shall withhold from any Bonus Award all federal, state and local taxes as shall be required pursuant to any law or governmental regulation or ruling, any amounts owed by the Participant to the Company to the extent permitted by law, and any amounts otherwise required to be withheld or deducted under applicable law or by agreement of the Company and the Participant.
ARTICLE 5
ADMINISTRATION, AMENDMENT AND TERMINATION

5.1    Authority of Administrator.  The Management Benefits Committee shall monitor the performance of the Program to ensure that it is administered by the Human Resources Department in accordance with its terms and applicable laws and regulations. Except as otherwise expressly stated, the Committee, or such other committee, including the Management Benefits Committee, to which it delegates 

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such authority, shall have the full power, discretion and authority to construe, interpret and administer the Program, including authority to correct any defect or reconcile any inconsistency or ambiguity. All decisions, acts or interpretations of the Committee shall be final, conclusive and binding upon all persons. No member of the Committee, the Management Benefits Committee, or any other committee to which Plan administrative authority has been delegated, shall be personally liable by reason of any action taken by him or her in good faith or on his or her behalf as Administrator, nor for any mistake in judgment made in good faith, and the Company and Holdings shall indemnify and hold harmless each member of the Committee, the Management Benefits Committee, the CEO, the CFO, and each other executive officer, employee or director of the Company or a Subsidiary to whom any duty or power relating to the Program, or its administration or interpretation, may be delegated, against any cost or expense (including legal fees) or liability (including any sum paid in settlement of a claim with the approval of the Board of Directors) arising out of any act or omission to act in connection with the Program unless arising out of such person’s own fraud or bad faith.
5.2    Amendment and Termination.  The Committee may at its discretion amend this Program in any respect at any time and for any reason and may terminate the Program, in whole or in part, at any time and neither notice of amendment nor of termination is necessary for any amendment or termination to be effective. Any amendment or termination of the Program may be made effective retroactively to the first day of the Program Year or, in the case of an amendment or termination of the Program adopted on or before March 15, the first day of the preceding Program Year. No Participant or designated beneficiary shall be deemed to have a vested or contractual right to a Bonus Award until such Bonus Award is actually paid to the Participant or designated beneficiary by the Company. The payment of Bonus Awards pursuant to this Program is completely discretionary on the part of the Company. The existence of this Program shall create no rights on behalf of Participants or Beneficiaries or obligations on behalf of the Company.
ARTICLE 6
MISCELLANEOUS

6.1    Compliance with Financing Agreements.  This Program may be subject to the terms and conditions of any agreements entered into between the Company and any third party lender to whom the Company is now indebted, or may at any time during the term of this Program become indebted, and the Bonus Awards for any Program Year may be reduced by such amounts as may be necessary to ensure that the Company is not in default under any such agreements.
6.2    No Right, Title or Interest in or to the Company’s Assets.  Neither Participants nor Beneficiaries shall have any right, title or interest whatsoever in or to any investments which the Company may make to aid it in meeting its obligations under this Program. Nothing contained in the Program and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind or a fiduciary relationship between Holdings or the Company and any Participant, designated beneficiary or any other person. All payments to be made under this Program shall be paid from the general assets of the Company.
6.3    No Alienation of Bonus Awards.  Except as otherwise may be required by law, no amount payable at any time under this Program shall be subject in any manner to alienation by anticipation, sale, transfer, assignment, bankruptcy, pledge, attachment, charge or encumbrance of any kind, nor in any manner be subject to the debts or liabilities of any person, and any attempt to so alienate or subject any such amount, whether currently or hereafter payable, shall be void.

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6.4    No Contract of Employment.  Neither the actions of the Company in establishing this Program, nor any provisions of this Program or any action taken by the Company, the Committee, the Administrator or the CEO pursuant to its provisions, shall be construed as giving to any Eligible Employee or any employee the right to be employed by the Company or a Subsidiary or affect the right of the Company or a Subsidiary to dismiss any employee.

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