Document:

10 K 12.31.2013 Exhibit 10.19

Exhibit 10.19
BORGWARNER INC.
RETIREMENT SAVINGS EXCESS BENEFIT PLAN
(as Amended and Restated Effective January 1, 2009)
1. Purpose of the Plan.
The BorgWarner Retirement Savings Plan (the “RSP”) was established by BorgWarner Inc., to provide its employees and the employees of its subsidiaries and affiliates with a method of long-term savings. This BorgWarner Retirement Savings Excess Benefit Plan (the “Excess Plan” or “Plan”) was established to provide benefits to certain employees whose participation in and benefits under the RSP are limited by provisions in the Internal Revenue Code of 1986, as amended, including, without limitation, Sections 401(a)(17), 401(k)(3), 401(m), 402(e) and 415 of the Code.
The Excess Plan was originally established effective as of January 27, 1993 as the Borg-Warner Automotive Inc. Retirement Excess Savings Excess Benefit Plan and since renamed the BorgWarner Inc. Retirement Savings Excess Benefit Plan. This amendment and restatement of the Plan is effective January 1, 2009.
2. Definitions.
For purposes of this Excess Plan, the use of terms defined in the RSP shall have the same meaning when used herein, and the following terms, when used herein, shall have the following meanings, unless, in either case, the context clearly indicates otherwise.
2.01 Account. The term “Account” means, with respect to any Participant, the Participant’s Supplementary Company Retirement Account and the Participant’s Supplementary Savings Account.
2.02 Beneficiary. The term “Beneficiary” means the person, persons or trust designated to receive a benefit under the RSP after the death of a Participant.
2.03 Code. The term “Code” means the United States Internal Revenue Code of 1986 and any successor thereto.
2.04 Code Section 409A. The term “Code Section 409A means Section 409A of the Code, and the regulations and other guidance issued by the Treasury Department and the Internal Revenue Service thereunder.
2.05 Company. The term “Company” means, individually, the Corporation and the Corporation’s divisions, subsidiaries, joint ventures and affiliates which are participating in the Excess Plan. Divisions of the Corporation shall participate in the Excess Plan as determined from time to time by the Committee. Subsidiaries and affiliates shall participate in the Excess Plan by taking appropriate corporate action with the Committee’s consent.
2.06 Compensation. The term “Compensation” means the regular salary, overtime pay and any bonus during any Plan Year; provided, however, that for purposes of determining the amount credited to the Supplemental Retirement Accounts under Sections 5 and 6 hereof, the Compensation of each Participant shall include such Participant’s Before-Tax Contributions under the RSP, and such term shall not be limited to the maximum amount of the Participant’s Compensation taken into consideration for purposes of the RSP.
2.07 Employee. The term “Employee” means an Employee of the Company as defined in the RSP.
2.08 Participant. The term “Participant” means any Employee participating in the RSP (i) whose annual compensation is equal to or in excess of the Section 401(a)(17) compensation limit or more, and (ii) whose participation in and benefits under the RSP are limited by provisions in the Code, including, without limitation, Sections 401(a)(17), 401(k)(3), 401(m), 402(g)(1) and 415 of the Code.
2.09 Plan Year. The term “Plan Year” means the accounting year of the RSP, which is maintained on a January 1 through December 31 basis.
2.10 Pre-2005 Account Balance. The Term “Pre-2005 Account Balance” means the amounts credited to the Excess Plan on behalf of a Participant prior to January 1, 2005, and earnings thereon, that were vested as of December 31, 2004.

1

2.11 Post-2004 Account Balance. The Term “Post-2004 Account Balance” means the amounts credited to the Excess Plan on behalf of a Participant on or after January 1, 2005 or that vested on or after January 1, 2005, and earnings thereon.

2

2.12 Separation from Service. the term “Separation from Service” means the date on which a Participant dies, retires, or otherwise has a termination of employment from the Company within the meaning of Code Section 409A and Treasury Regulation Section 1.409A-1(h), or its successor.
2.13 Supplementary Company Retirement Account. The term “Supplementary Company Retirement Account” means the account maintained for a Participant to which is credited the amount determined under Section 5 hereof, adjusted as determined under Section 10 hereof.
2.14 Supplementary Savings Account. The term “Supplementary Savings Account” means the account maintained for a Participant to which is credited the amount determined under Section 6 hereof, adjusted as determined under Section 10 hereof
2.15 Unforeseeable Emergency. The term “Unforeseeable Emergency” means a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant’s spouse, the Participant’s dependent (as defined in Code Section 152, without regard to Section 152(b)(1), (b)(2), and (d)(1)(B)), or a Beneficiary; loss of the Participant’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance, for example, as a result of a natural disaster); or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond
the control of the Participant. The types of events which may qualify as an Unforeseeable Emergency may be limited by the Committee.
2.16 Valuation Date. The term “Valuation Date” means a date as of which each Investment Fund under the RSP is valued and the Participant’s Accounts adjusted as provided in Article 10 thereof. Each business date (any day on which the New York Stock Exchange is open for trading and on which the principal office of the Administrative Services Provider, as such term is defined in the RSP, is open) during the Plan Year shall be deemed a Valuation Date.
3. Administration.
3.01 Generally. This Excess Plan shall be administered by a committee of one or more persons established and appointed by the Corporation to administer the RSP (the “Committee”). The Committee shall have the sole responsibility for the administration of the Excess Plan. A Committee member may resign by written notice to, or may be removed by, the Corporation, which shall appoint a successor to fill any vacancy on the Committee, howsoever caused. An Employee’s membership on the Committee shall automatically terminate upon such Employee’s termination of employment with the Corporation and all of the Corporation’s subsidiaries, joint ventures and affiliates.
3.02 Appointment and Duties of the Committee. The Committee may delegate its responsibilities hereunder to one or more persons to serve at the Committee’s discretion. The Committee or its delegate(s) shall have such powers as may be necessary to discharge its duties hereunder, including, but not by way of limitation, the following:
		
	(i)
	To administer and enforce the Excess Plan, including the discretionary and exclusive authority to interpret the Excess Plan, to make all factual determinations under the Excess Plan and to resolve questions as between the Company and Participants or Beneficiaries, including questions which relate to eligibility and distributions from the Excess Plan, to remedy possible ambiguities, inconsistencies or omissions, and decisions on claims which shall, subject to the claims procedures under the Excess Plan, be conclusive and binding upon all persons hereunder, including, without limitation, Participants, other employees of the Company, Beneficiaries, and former Participants, and their executors, administrators, conservators, or heirs;

		
	(ii)
	To prescribe procedures to be followed by Participants or Beneficiaries filing applications for benefits;

		
	(iii)
	To prepare and distribute, in such manner as the Committee determines to be appropriate, information explaining the Excess Plan;

		
	(iv)
	To receive from the Company and from Participants such information as shall be necessary for the proper administration of the Excess Plan;

		
	(v)
	To furnish the Company, upon request, such reports with respect to the administration of the Excess Plan as are reasonable and appropriate;

		
	(vi)
	To receive, review and keep on file (as it deems convenient or proper) reports of the receipts and disbursements under the Excess Plan;

		
	(vii)
	To appoint or employ individuals to assist in the administration of the Excess Plan and any other agents it deems advisable, including legal counsel, third party administrators (“TPAs”), and such clerical, medical, accounting, auditing, actuarial and other services as it may require in carrying out the provisions of the 

3

Excess Plan or in connection with any legal claim or proceeding involving the Excess Plan, to settle, compromise, contest, prosecute or abandon claims in favor of or against the Excess Plan; and
		
	(viii)
	To discharge all other duties set forth herein.

4

3.03 Recusal. No member of the Committee shall participate in any action on any matters involving solely his or her own rights or benefits as a Participant under the Excess Plan, and any such matters shall be determined by the other members of the Committee.
3.04 Direction on Payments. The Committee, or the person or persons designated by the Committee, shall review and approve all distributions from the Excess Plan, including requests for distributions by reason of an Unforeseeable Emergency.
3.05 Actions by the Committee. The Committee may act at a meeting or by writing without a meeting, by the vote or assent of a majority of its members. The Committee may adopt such by-laws and regulations as it deems desirable for the conduct of its affairs and the administration of the Excess Plan. A dissenting Committee member who, within a reasonable time after he or she has knowledge of any action or failure to act by the majority, registers his or her dissent in writing delivered to the other Committee members shall not be responsible for any such action or failure to act.
3.06 Expenses of the Committee. Members of the Committee shall not receive compensation from the Excess Plan for those services they perform as the Committee members while employed by the Company. Any and all necessary expenses related to Excess Plan administration shall be paid by the Corporation and each participating Company but may be charged against Excess Plan Accounts.
3.07 Records of the Committee. The Committee shall keep a record of all of its meetings and shall keep all such books of account, records and other data as may be necessary or desirable in its judgment for the administration of the Excess Plan. The Committee may retain a TPA to perform some or all of its Excess Plan record-keeping functions.
3.08 Information from Participant. The Committee may require a Participant to complete and file with the Committee written or electronic forms approved by the Committee, and to furnish all pertinent information requested by such Committee. The Committee may rely upon all such information so furnished, including the Participant’s current mailing address.
4. Eligibility.
An Employee who meets the criteria established to be a Participant, as set forth herein, shall be eligible for benefits hereunder; provided, however, that in no event shall a Participant who is not entitled to benefits under the RSP be eligible for a benefit under this Excess Plan.
5. Supplementary Company Retirement Account.
The Corporation shall credit an amount to each Participant’s Supplementary Company Retirement Account equal to the excess of (i) the Company Retirement Contributions that would have been made under the RSP in a Plan Year, without regard to any limitations on such Company Retirement Contributions contained in the RSP and/or any cap on Compensation therein, over (ii) the actual Company Retirement Contribution made under the RSP.
6. Supplementary Savings Account.
The Corporation shall credit an amount to each Participant’s Supplementary Savings Account equal to the excess of (i) the Company Matching Contributions that would have been made under the RSP in a Plan Year, without regard to any limitations on such Company Matching Contributions contained in the RSP and/or any cap on Compensation therein, over (ii) the actual Company Matching Contribution made under the RSP.
7. No Participant Contributions.
Contributions to the Excess Plan by Participants, whether on a salary reduction basis or otherwise, are not required and are not permitted.
8. Vesting.
The amounts credited to a Participant’s Supplementary Company Retirement Account and his Supplementary Savings Account shall vest in the same manner as under the RSP.
9. Distribution of Benefits.
9.01 Generally. A Participant’s vested Account shall be distributed to him or her as follows:

5

		
	(i)
	Pre-2005 Account Balances. A Participant’s vested Pre-2005 Account Balance shall be distributed to him or her in cash in a single sum within thirty (30) days following the date of the Participant’s Separation from Service.

		
	(ii)
	Post-2004 Balances. A Participant’s vested Post-2004 Account Balance shall be distributed to the Participant in cash in a single sum in the seventh month following the month in which the Participant’s Separation from Service occurs.

9.02 No In-Service Withdrawals or Loans. No in-service withdrawals or Participant loans are available under the Excess Plan.
9.03 Unforeseeable Emergency. A Participant or Beneficiary entitled to vested benefits under the Excess Plan may request a single-sum distribution in cash to satisfy an Unforeseeable Emergency. The distribution shall be limited to the amount necessary to satisfy the Unforeseeable Emergency (including any applicable federal, state or local taxes attributable to such distribution), and shall not exceed the current value of the Participants vested Account balance. The determination of the existence of an Unforeseeable Emergency and the approval of an Unforeseeable Emergency distribution shall be made by the Committee. Approval shall be given only if, taking into account all of the facts and circumstances, failure to grant such request would result in a severe financial hardship to the Participant or Beneficiary. Approval shall not be granted if such hardship is or may be relieved through insurance, by liquidation of his or her assets (to the extent such liquidation would not itself cause severe financial hardship). The amount of payment permitted hereunder shall in no event exceed the amount permitted under Treasury Regulation Section 1.409A-3(i)(3)(ii), or its successor.
10. Investments.
10.01 On each Valuation Date, for each Participant, the Corporation shall determine in which of the Investment Funds under Article 9 of the RSP the accounts of the Participant under the RSP were invested for that Valuation Date. The Corporation shall then credit the Participant Supplementary Company Retirement Account and Supplementary Savings Account to reflect (i) earnings or expenses and recognized gains or losses of the Investment Funds since the preceding Valuation Date and (ii) any adjustments reflecting a revaluation in the total fair market value of the Investment Funds that have been made by the Trustee under the RSP, as if the Participant’s Supplementary Company Retirement Account had been invested in the same proportion and manner as his Company Retirement Account under the RSP, and as if his Supplementary Savings Account had been invested in the same proportion and manner as his Savings Account under the RSP. The Committee may instead offer Participants different investment funds options than the Investment Funds offered under the RSP or allow Participants to invest their Accounts under the Plan in a different manner than then manner in which the Participants invest their accounts under the RSP.
11. Unfunded Status.
11.01 All benefits payable under this Excess Plan to or on behalf of Participants who were employed by the Corporation shall be paid from the general assets of the Corporation and all benefits payable to or on behalf of Participants who were employed by any Company which has adopted this Excess Plan shall be paid from the general assets of such Company. If the Corporation or any Company which has adopted this Excess Plan, in its sole discretion, establishes a fund or account for the payment of benefits hereunder, the Participant, his Beneficiary or Beneficiaries, or any other person shall not have, under any circumstances, any interest whatever in such fund or account or in any particular property or assets of the Corporation or of such Company by virtue of this Excess Plan, and the rights of the Participant, his Beneficiary or Beneficiaries or any other person who may claim a right to receive benefits under this Excess Plan shall at all times be no greater than the rights of a general unsecured
creditor of the Corporation or of such Company. The Participant shall not be entitled to any payments from the trust fund maintained under the RSP on the basis of any benefits to which he may be entitled under this Excess Plan.
11.02 If the Committee shall find that a Participant, former Participant or Beneficiary is unable to care for his affairs because of illness or accident, or is a minor, or has died, the Committee may direct that any payment due him, unless claim therefor shall have been made by a duly appointed legal representative, shall be paid to his spouse, a child, a parent or other blood relative or to a person with whom he resides, and any such payment so made shall be in complete discharge of the liabilities of Excess Plan therefor.
11.03 Subject to all applicable laws relating to unclaimed property, if the Committee mails by registered or certified mail, postage prepaid, to the last known address of a Participant or Beneficiary, a notification that he is entitled to a distribution hereunder, and if the notification is returned by the United States Postal Service as being undeliverable because the addressee cannot be located at the address indicated and if the Committee has no 

6

knowledge of such Participant’s or Beneficiary’s whereabouts within 3 years from the date the notification was mailed, or if within 3 years from the date the notification was mailed to such Participant or Beneficiary he does not respond thereto by informing the Committee of his whereabouts, then, and in either of said events, upon the December 31 coincident with or next succeeding the third anniversary of the mailing of such notification, the undistributed amount in the Supplementary Company Retirement Account of such Participant or Beneficiary shall be paid to the person or persons who would have been entitled to take such share in the event of the death of the Participant or Beneficiary whose whereabouts are unknown, assuming that such death occurred as of the December 31 coincident with or next succeeding the third anniversary of the mailing of such notification.
11.04 No Participant, former Participant or Beneficiary or any other person shall have any interest in or right under the Excess Plan in any part of the assets or earnings held in the RSP Trust or in any other trust established by the Corporation.
11.05 Whenever in the administration of the Excess Plan action is required, such action shall be uniform in nature as applied to all persons similarly situated, and no such action shall be taken which shall discriminate in favor of Employees who are officers, shareholders or highly compensated Employees.
11.06 Any action by the Committee pursuant to the provisions of the Excess Plan may be evidenced by written instrument executed by any person authorized by the Committee to take such action, and any fiduciaries shall be fully protected in acting in accordance with any such written instrument received by them.
12. Claims Procedures.
12.01 Filing A Claim. It is intended that the benefits under the Excess Plan to which a Participant is entitled be paid at the time provided for their distribution without the Participant being required to make a claim for such benefits. If, however, a Participant or Beneficiary (“Claimant”) does not receive the benefits which the Claimant believes he or she is entitled to
receive under the Excess Plan, the Claimant may file a claim for benefits with the Committee. A claim shall be made by filing a written request with the Committee on a form provided by the Committee, which shall be delivered to the Committee and, in the case of a request for a distribution on account of an Unforeseeable Emergency, be accompanied by such substantiation of the claim as the Committee considers necessary and reasonable. If the claims procedure form made available by the Committee does not contain information on where to file the claim, the claim may be submitted to the human resources office at the site where the Claimant is employed.
12.02 Denied Claims. If a claim is denied in whole or in part, the Claimant shall receive a written or electronic notice explaining the denial of the claim within ninety (90) days after the Committee’s receipt of the claim. The Committee may appoint one or more persons or a committee of one or more persons to act as the claims administrator for the Excess Plan. If the Committee (or its delegate) determines that for reasons beyond its control, a ninety (90) day extension of time is necessary to process the claim, the Claimant shall be notified in writing of the extension and reason for the extension within ninety (90) days after the Committee (or its delegate)’s receipt of the claim. The written extension notification shall also indicate the date by which the Committee (or its delegate) expects to render a final decision. A notice of denial of claim shall contain the following: the specific reason or reasons for the denial; reference to the specific provisions of the Excess Plan on which the denial is based; a description of any additional materials or information necessary for such Claimant to perfect the claim and an explanation of why such material or information is necessary; and a description of the Excess Plan’s review procedures and the time limits applicable to such procedures, including a statement of the Claimant’s right to bring a civil action under Section 502(c) of ERISA following an adverse determination on review.
12.03 Review of Denied Claims. To request a review of a denied claim, a Claimant must file a written request for review within sixty (60) days after receiving written notice of the denial. The Claimant may submit written comments, documents, records and other relevant information in support of the claim. A Claimant shall be provided, upon request and without charge, reasonable access to, and copies of, all documents, records, and other information relevant to the Claimant’s claim. A document, record, or other information shall be considered relevant if it: (i) was relied upon in denying the claim; (ii) was submitted, considered or generated in the course of processing the claim, regardless of whether it was relied upon; (iii) demonstrates compliance with the claims procedures process; or (iv) constitutes a statement of policy for the Excess Plan or guidance concerning the denied claim.
12.04 Decisions on Reviewed Claims. The Committee (or its delegate) will notify the Claimant in writing of its decision on the appeal. Such notification will be in a form designed to be understood by the Claimant. If the claim is denied in whole or in part on appeal, the notification will also contain: the specific reason or reasons for the denial; reference to the specific provisions of the Excess Plan on which the determination is based; a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all 

7

documents, records, and other information relevant to the Claimant’s claim for benefits; and a statement that the Claimant has a right to bring an action under Section 502(a) of ERISA. A document, record, or other information shall be considered relevant if it: (i) was relied upon in denying the claim; (ii) was submitted, considered or generated in the course of processing the
claim, regardless of whether it was relied upon; (iii) demonstrates compliance with the claims procedures process; or (iv) constitutes a statement of policy for the Excess Plan or guidance concerning the denied claim. Such notification will be given by the Committee (or its delegate) within sixty (60) days after the complete appeal is received by the Committee (or its delegate) (or within one hundred twenty (120) days if the Committee (or its delegate) determines special circumstances require an extension of time for considering the appeal, and if written notice of such extension and circumstances is given to the Claimant within the initial sixty (60) day period). Such written extension notice shall also indicate the date by which the Committee (or its delegate) expects to render a decision.
12.05 Review Procedures. In reviewing a denied claim, the reviewer shall take into consideration all comments, documents, records, and other information submitted by the Claimant in support of the claim, without regard to whether such information was submitted or considered in the initial determination.
12.06 Exhaustion of Remedies; Filing of Legal Actions. A claimant may not bring any legal action relating to a claim for benefits under the Excess Plan unless and until the claimant has followed the claims procedures under the Excess Plan and exhausted his or her administrative remedies under such claims procedures. A claimant may not bring a legal action seeking payment of benefits under the Excess Plan more than one year after the claimant has received written notice of the decision on the review of his or her claim.
13. Amendment and Discontinuance.
The Committee may at any time amend or discontinue this Excess Plan. However, if this Excess Plan should be amended and discontinued, the Corporation and any Company which has adopted this Excess Plan, as the case may be, shall be liable for any benefits accrued under this Excess Plan as of the date of such action for Participants who are or have been employed by the Corporation or any such Company. Such accrued benefits shall be the undistributed vested portion of the Participant’s Supplementary Company Retirement Account balance as of such date of amendment or discontinuance. Upon a termination of the Excess Plan, a Participant’s Post-2004 Account Balance shall not be distributed prior to the date on which it would be otherwise distributable as provided by Section 9 of the Excess Plan except to the extent and in accordance with Treas. Regs. Section 1.409A-3(j)(4)(ix).
14. Restriction on Assignment.
The benefits provided hereunder are intended for the personal security of persons entitled to payment under this Excess Plan and are not subject in any manner to the debts or other obligations of the persons to whom they are payable. The interest of any Participant or his Beneficiary or Beneficiaries may not be sold, transferred, assigned, or encumbered in any manner, either voluntarily or involuntarily, and any attempt so to anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge the same shall be null and void; neither shall the benefits hereunder be liable for or subject to the debts, contracts, liabilities, engagements, or torts of any person to whom such benefits or funds are payable, nor shall they be subject to garnishment, attachment, or other legal or equitable process, nor shall they be an asset in bankruptcy. However, the restrictions herein shall not prevent the Committee from satisfying the
requirements of a “qualified domestic relations order” as defined in Section 441(1)(B) of the Code.
15. Continued Employment.
Nothing contained in this Excess Plan shall be construed as conferring upon a Participant the right to continue in the employment of the Corporation or any Company in any capacity or as otherwise affecting the employment relationship.
16. Liability of the Committee.
No member of the Committee shall be liable for any loss unless resulting from his own fraud or willful misconduct, and no member shall be personally liable upon or with respect to any agreement, act, transaction or omission executed, committed or suffered to be committed by himself as a member of the Committee or by any other member, agent, representative or employee of the Committee. The Committee and any individual member of the Committee and any agent thereof shall be fully protected in relying upon the advice of the following professional consultants or advisors employed by the Corporation or the Committee: any attorney insofar as legal matters are 

8

concerned, any accountant insofar as accounting matters are concerned, and any actuary insofar as actuarial matters are concerned.
17. Indemnification.
The Corporation and any Company which has adopted this Excess Plan hereby indemnifies and agrees to hold harmless and indemnify the members of the Committee and all directors, officers, and employees of the Corporation and of any Company which has adopted this Excess Plan against any and all parties whomsoever, and all losses therefrom, including without limitation, costs or defense and attorneys’ fees, based upon or arising out of any act or omission relating to, or in connection with this Excess Plan other than losses resulting from such person’s fraud or willful misconduct.
18. Termination of Service for Dishonesty.
If a Participant’s service with the Corporation or with any Company which has adopted this Excess Plan, is terminated because of dishonest conduct injurious to the Corporation or such Company, or if dishonest conduct injurious to the Corporation or such Company committed by a Participant is determined by the Corporation within one year after his service with the Corporation or such Company is terminated, the Committee may terminate such Participant’s remaining interest and benefits under this Excess Plan.
The dishonest conduct committed by a Participant that is injurious to the Corporation or to any Company which has adopted this Excess Plan shall be determined and decided by the Committee only after a full investigation of such alleged dishonest conduct and an opportunity has been given the Participant to appear before the Committee to present his case. The decision made by the Committee in such cases shall be final and binding on all Participants and other persons affected by such decision.
19. Binding on the Corporation, Company, Participants and Their Successors.
This Excess Plan shall be binding upon and inure to the benefit of the Corporation and to the benefit of any Company which has adopted this Excess Plan, their successors and assigns and the Participants and their heirs, executors, administrators, and duly appointed legal representatives.
20. Rights of Affiliates to Participate.
Any Company participating in the RSP may, in the future, adopt this Excess Plan provided the proper action is taken by the board of directors of such Company. The administrative powers and control of the Corporation, as provided in this Excess Plan, shall not be deemed diminished under this Excess Plan by reason of the participation of any Company and the administrative powers and control granted hereunder to the Committee shall be binding upon any Company adopting this Excess Plan. Each Company adopting this Excess Plan shall have the obligation to pay the benefits to its Participants who were in its employment hereunder and no other Company shall have such obligation and any failure by a particular employer to live up to its obligations under this Excess Plan shall have no effect on any other Company. Any Company may discontinue this Excess Plan at any time by proper action of its board of directors subject to the provisions of Section 13.
21. Withholdings.
The Company shall withhold from any amount distributable to a Participant under the Excess Plan any applicable federal, state or local income or employment taxes or any other amounts required to be withheld by law. In addition, the Company may withhold from a Participant’s currently payable salary, bonus or other compensation any applicable federal, state or local income or employment taxes that may be due upon the crediting of an amount to the Participant’s Account.
22. Construction.
The headings in this Excess Plan have been inserted for convenience of reference only and are to be ignored in any construction of the provision. Except when otherwise clearly indicated by the context, when used in the Excess Plan words in any gender shall include any other gender, and words in the singular shall include the plural, and words in the plural shall include the singular.
23. Severability.
In the event any provision of the Excess Plan shall be held invalid or illegal for any reason, any illegality or invalidity shall not affect the remaining parts of the Excess Plan, but the Excess Plan shall be construed and 

9

enforced as if the illegal or invalid provision had never been inserted, and the Committee shall have the right to correct and remedy such questions of illegality or invalidity by amendment as provided by the Excess Plan.
24. Law Governing.
This Excess Plan shall be construed in accordance with and governed by the laws of the State of Michigan.
25. No Offets Permitted.
The Company shall not offset a distribution to a Participant or otherwise reduce the Account balance of a Participant to satisfy any debt or other obligation owed by the Participant to the Company.
26. No Postponement of Distributions.
A Participant shall not be entitled to postpone the distribution of his of her Account beyond the date on which it is distributable to him or her under the terms of the Excess Plan.
27. Code Section 409A.

10

The Excess Plan is intended to constitute a plan of deferred compensation that meets the requirements for the deferral of income taxation under Code Section 409A. It is intended that the provisions of the Excess Plan comply with Code Section 409A and all provisions of the Excess Plan shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Code Section 409A.
27.01 A Participant’s Separation from Service shall not be deemed to have occurred for purposes of any provision of the Excess Plan providing for the payment of amounts upon or following a Separation from Service unless such termination is also a “Separation from Service” within the meaning of Code Section 409A and, for purposes of any such provision of the Excess Plan, references to a “resignation,” “termination,” “termination of service” or like terms shall mean Separation from Service.
27.02 The Excess Plan satisfies the requirement under Code Section 409A with respect to Post-2004 Account Balances that any distribution of deferred compensation to a Participant who is a “specified employee” of the Company (within the meaning of that term under Section 409A(2)(A) of the Code) on account of his or Separation from Service not be made or provided prior to the earlier of (i) the expiration of the six-month period measured from the date of the Participant’s Separation from Service or (ii) the date of the Participant’s death by providing that all distributions of Post-2004 Account Balances be distributed in a single sum in the seventh month following the month in which the Participant’s Separation from Service occurs.
27.03 No payment or distribution of Post-2005 Account Balances shall be accelerated, except as permitted under Code Section 409A. Nothing contained herein shall enable the Committee to accelerate payments because of the financial condition of the Corporation.
27.04 To the extent that any provision of this amendment is considered to have changed the time or form of payment of deferred compensation, for a payment that is payable in 2009 or later, it is intended that the Code Section 409A transition rules permitting such changes apply..
28. Plan History.
This Excess Plan was originally effective as of January 27, 1993, amended effective as of May 16, 1994 and amended again as of October 1, 1994. This Amendment and Restatement is effective January 1, 2009.

1110 K 12.31.2013 Exhibit 10.21

Exhibit 10.21
BORGWARNER INC.
BOARD OF DIRECTORS DEFERRED COMPENSATION PLAN
(As Amended and Restated Effective January 1, 2009)
BORGWARNER INC.
BOARD OF DIRECTORS DEFERRED COMPENSATION PLAN
As Amended and Restated Effective January 1, 2009
I. PURPOSE
The purpose of the BorgWarner Inc. Board of Directors Deferred Compensation Plan (the “Plan”) is to enhance the Company’s ability to attract and retain qualified non-employee Directors. The Plan was originally established effective January 1, 1995 as the Borg-Warner Automotive, Inc. Board of Directors Deferred Compensation Plan. The Plan has subsequently been amended to permit allocation of deferred amounts to Borg-Warner Automotive (now BorgWarner) Stock Units Accounts and has been renamed the BorgWarner Inc. Board of Directors Deferred Compensation Plan. Except where otherwise specified, this amendment and restatement of the Plan is effective January 1, 2009.
II. DEFINITIONS
Where appropriate, references in this Plan to the singular shall include the plural.
	
		
	2.1
	“Beneficiary” shall mean the person or persons or entity designated by the Participant to receive the balance of the Participant’s Account in the event of the Participant’s death. The designation may be in favor of one or more Beneficiaries, may include contingent as well as primary designations and named or unnamed trustees under any will or trust agreement, may apportion the benefits payable in any manner among the Beneficiaries. A Participant’s designation of one or more Beneficiaries shall be made in writing in a manner designated by the Committee and shall not be effective until received by the Committee. If a Participant’s designated beneficiaries shall have predeceased the Participant, the Participant’s estate shall be the Beneficiary. A Participant may change his or her Beneficiary without the consent of any Beneficiary by similar instrument in accordance with rules and procedures established by the Committee. The beneficiary designation form received and acknowledged most recently by the Committee shall control as of any date. If concurrent Beneficiaries are named without specifying the proportion of benefits due each, distribution shall be made in equal shares to those Beneficiaries.

	 
	 

	2.2
	“Board of Directors” means the Board of Directors of BorgWarner Inc.

	 
	 

	2.3
	“Business Day” means a day on which the New York Stock Exchange is open for trading.

1

	
		
	2.4
	“BW Stock Unit” means a measure of participation under the Plan which has a value based on the Market Value of Common Stock. In the event of any Company stock split, stock dividend, recapitalization, reorganization, merger, consolidation, combination, exchange of shares, liquidation, spin-off or other similar change in capitalization or event, or any distribution to holders of Common Stock other than a regular cash dividend, the number of BW Stock Units credited to Participants’ BW Stock Units Accounts under the Plan shall be appropriately adjusted by the Board of Directors. The decision of the Board of Directors regarding any adjustment shall be final, binding, and conclusive.

	 
	 

	2.5
	“BW Stock Units Account” means the subaccount of each Participant Account that is established to reflect the Participant’s selection of BW Stock Units as an Investment Option and to record the Company’s liability therefor, and which has a value based on the Market Value of Common Stock.

	 
	 

	2.6
	“Committee” means the committee of the Company appointed by the Board of Directors to manage and administer the Plan. This Committee shall consist of all or a portion of those members of the Board of Directors who are employees of the Company.

	 
	 

	2.7
	“Common Stock” means the common stock, $0.01 par value, of BorgWarner Inc.

	 
	 

	2.8
	“Company” means BorgWarner Inc. (formerly, Borg-Warner Automotive, Inc.).

	 
	 

	2.9
	“Deferral Election” means the election agreement filed with the Committee by a Participant for a Plan Year pursuant to the requirements of Article IV. The Deferral Election shall indicate the percentage of the annual Retainer Fee that a Participant is deferring, an allocation of the annual Retainer Fee deferral among the Plan’s notional investment funds, and an election as to the time and form of payment of the amounts deferred and associated earnings or losses.

	 
	 

	2.10
	“Deferral Year” means any calendar year with respect to which a Participant files a Deferral Election, beginning as of January 1, 1995, and continuing until this Plan is terminated.

	 
	 

	2.11
	“Deferred Benefit Account” means the account maintained on the books of the Company for each Deferral Election of a Participant pursuant to Article IV.

	 
	 

	2.12
	“Disability” or “Disabled” means that a Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.

For purposes of this Plan, a Participant shall also be deemed Disabled if determined to be totally disabled by the Social Security Administration.

2

	
		
	2.13
	“Effective Date” means January 1, 1995. The Effective Date with respect to the addition of the BW Stock Unit Accounts and related amendments to the Plan is April 18, 1995. The Effective Date of this amendment and restatement of the Plan is January 1, 2009 unless otherwise provided.

	 
	 

	2.14
	“Investment Option” shall mean a security, mutual fund, common or collective trust, insurance company pooled separate account, or other notional benchmark for measuring the income, gain or loss recorded for all or a portion of a Participant Account.

	 
	 

	2.15
	“Market Value” means, with respect to a share of Common Stock, the closing price of such share on the New York Stock Exchange on the day in question, or the day of the last previous sale if there is not any sales on the day in question.

	 
	 

	2.16
	“Participant” means a member of the Board of Directors of the Company who (a) is not an employee of the Company, (b) is designated to be eligible to participate in the Plan pursuant to Article III, and (c) has made an initial Deferral Election pursuant to Article IV. A director who has deferred a percentage of his or her Retainer Fee under the Plan shall continue as a Participant until he or she has received payment of all amounts deferred by him or her pursuant to his or her Deferral Elections under the Plan.

	 
	 

	2.17
	“Participant Account” means the account established for each Participant to reflect the total liability of the Company to him or her for all Deferred Benefit Accounts, as provided in Section 5.1.

	 
	 

	2.18
	“Plan” means this BorgWarner Inc. Amended and Restated Board of Directors Deferred Compensation Plan, as amended from time to time.

	 
	 

	2.19
	“Retainer Fee” means the annual Retainer Fee payable during the relevant Deferral Year to a Participant for services rendered as a member of the Board of Directors of the Company. The Retainer Fee does not include payment of any specific service fees (such as meeting fees, chairperson fees, etc.) to members of the Board of Directors.

	 
	 

	2.20
	“Termination of Service” means the Participant’s cessation of service with the Board of Directors for any reason whatsoever, whether voluntary or involuntary, including by reason of death or Disability. In addition, for purposes of distributing the portion of a Participant Account attributable to Retainer Fees earned on or after January 1, 2005, a “Termination of Service” must also constitute a “Separation of Service” from BorgWarner and all of its affiliates, as such term is defined in the regulations for Section 409A of the Internal Revenue Code.

	
		
	2.21
	“Unforeseeable Emergency” means a severe financial hardship of the Participant or the Participant’s beneficiary resulting from an illness or accident of the Participant or the Participant’s Beneficiary, the Participant’s or beneficiary’s spouse, or the Participant’s or beneficiary’s dependent (as defined in section 152(a)); loss of the Participant’s or beneficiary’s property due to casualty; or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant or beneficiary. An event shall not qualify as an unforeseeable emergency to the extent that such emergency is or may be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the Participant’s assets, to the extent the liquidation of such assets would not cause severe financial hardship, or by cessation of deferrals under the Plan. The purchase of a home and the payment of college tuition are not Unforeseeable Emergencies.

	 
	 

	2.22
	“Unscheduled Withdrawal” is defined in Section 6.7.

	 
	 

	2.23
	“Valuation Date” means the date on which the value of a Participant Account or any portion thereof is determined, as provided in Article V hereof. The first day of each Deferral Year shall be a Valuation Date. Additional Valuation Dates may be established by the Committee, including any other dates specifically mentioned in the Plan; the Committee may provide for “daily valuation” of Participant Accounts.

III. ELIGIBILITY AND PARTICIPATION
Participation in the Plan shall be limited to all non-employee members of the Board of Directors who elect to participate in the Plan by filing a Deferral Election with the Committee pursuant to Article IV. A Participant who has made a Deferral Election for one or more Deferral Years but does not make a Deferral Election (or elects not to 

3

defer a percentage of his or her annual Retainer Fee) in a subsequent Deferral Year shall continue as a Participant until all benefits under the Plan have been distributed to him or her.
IV. DEFERRAL ELECTIONS
	
		
	4.1
	Time of Election. Deferral Elections made for a Deferral Year shall be made no later than December 31 of the year prior to the Deferral Year for which the Deferral Election is made. A new non-employee member of the Board of Directors shall be eligible to participate in the Plan for a Deferral Year if he or she files a Deferral Election with the Committee within 30 days of his or her commencement of service as a member of the Board of Directors; such Deferral Election shall apply only to Retainer Fees that have not been earned as of the date of the filing of the Deferral Election.

	
		
	4.2
	Minimum and Maximum Deferral and Form of Election.

	
				
	 
	a.
	 
	Prior to the beginning of each Deferral Year, each Participant may elect to defer up to 100% of his or her Retainer Fee for such Deferral Year, in increments of 5%. The Participant may also elect not to defer any portion of his or her Retainer Fee in a Deferral Year. The Participant shall also select one or more times and forms of distribution, as specified in Section 6.1. A Participant’s Deferral Election shall become effective in the year prior to the Deferral Year upon the Committee reviewing it and deeming it complete. A Participant’s Deferral Election shall be irrevocable after December 31 of the year prior to the year for which the Deferral Election is made.

	 
	 
	 
	 

	 
	b.
	 
	A Participant shall complete a separate Deferral Election for each Deferral Year; no Deferral Election shall continue in effect after the Deferral Year for which it has been made. The amount of any Retainer Fee deferred pursuant to each Deferral Election must remain in the Plan until the Participant’s sixty-fifth birthday or his or her Termination of Service (as elected by the Participant, subject to the provisions of Section 6.1) unless the Committee elects to distribute such amounts due to an Unforeseeable Financial Emergency (pursuant to Section 6.6).

	 
	 
	 
	 

	 
	c.
	 
	At the time of the Participant’s initial Deferral Election, he or she shall also elect a Beneficiary and form of payment to such Beneficiary, on a Beneficiary designation form provided by the Committee, as provided in Section 6.3.

	
		
	4.3
	Timing of Deferral Credits. The percentage amount of a Retainer Fee that a Participant elects to defer in the Deferral Election shall cause an equivalent reduction in the amount of the Retainer Fee actually paid in cash to the Participant for that year. Retainer Fee deferrals shall be credited to each Participant’s appropriate Deferred Benefit Account as of the first Business Day after the January 1 that immediately follows the relevant Deferral Year. For example, any Retainer Fee payable to the Participant during 2009 shall be credited to the Participant’s Account as of the first Business Day after January 1, 2010. Such amounts credited to the Participant’s Account shall be allocated among the Investment Options elected by the Participant pursuant to Section 5.1.

	 
	 

	4.4
	Failure to Submit Election Forms. If a Participant fails to submit a Deferral Election within the relevant time limit under Section 4.1 that is accepted by the Committee on or before December 31 of the year prior to the Deferral Year, the Participant will be deemed to have elected to defer 0% of his or her Retainer Fee for the Deferral Year for which such Deferral Election is required.

	
		
	4.5
	Termination of Deferral Election. The Committee shall terminate a Participant’s Deferral Election for the remainder of the Deferral Year in which the Committee grants the Participant’s written request for a distribution by reason of an Unforeseen Financial Emergency.

V. STATUS OF DEFERRED AMOUNTS
	
		
	5.1
	Participant Accounts.

4

	
				
	 
	a.
	 
	Establishment and Crediting of Contributions, Earnings, and Dividends. The Company shall establish a Participant Account for each Participant to reflect accurately its total liability to the Participant for all Deferred Benefit Accounts. The Participant Account shall be credited with all amounts deferred by a Participant under each Deferral Election, and any earnings, losses and distributions.

	 
	 
	 
	 

	 
	b.
	 
	Deferred Benefit Accounts. Each Participant Account shall contain sub-accounts for each Deferred Benefit Account, and shall reflect amounts in such Deferred Benefit Account that are attributable to the Retainer Fee deferred under the applicable Deferral Election.

	 
	 
	 
	 

	 
	c.
	 
	Investment Options. The Company shall offer one or more Investment Options for measuring the income, gain or loss recorded for a Participant’s Account and may prospectively change Investment Options at any time upon written notice to Participants. Until the Board of Directors otherwise provides, the Investment Options under the Plan shall include BW Stock Units.

	 
	 
	 
	 

	 
	d.
	 
	Investment Options Allocation Elections. A Participant shall elect on his or her Deferral Election form or on such other form or by such other means as may be specified by the Committee, one or more Investment Options to which deferrals to be credited to his or her Participant Account shall be allocated. A Participant may change the allocation of future deferrals among the Investment Options and may change the allocation of his or her Participant Account balance among the Investment Options as frequently as permitted by the Committee under rules and procedures applicable to all Participants. The Committee shall establish and may prospectively change its rules regarding the timing and frequency of Investment Option elections and may establish and may prospectively change minimum amounts or percentages for allocating deferrals and transferring Account balances among the Investment Options.

	 
	 
	 
	 

	 
	e.
	 
	Failure or Refusal to Allocate. In the event a Participant fails or refuses to make an election allocating Deferrals credited to his or her Account among the then available Investment Options, the Committee shall, in its discretion, either: (i) reject the Participant’s Deferral Election as incomplete (if such rejection may be made prior to the Deferral Year for which the Deferral Election is made); or (ii) specify the Investment Option or Investment Options to which the Participant’s Account shall be allocated and notify the Participant of its selection, which notification may be the Participant Account statements provided to the Participant. If the Committee specifies the Investment Option or Investment Options to which a Participant’s Account has been allocated because of the Participant’s failure or refusal to make an election allocating Deferrals credited to his or her Account, neither the Committee nor the Company shall have any liability to the Participants therefor.

	
				
	 
	f.
	 
	Allocations to BW Stock Units Accounts. Amounts in a Participant Account that have been allocated to BW Stock Units shall be converted to BW Stock Units based on the Market Value of Common Stock as of the date of crediting.

	 
	 
	 
	 

	 
	g.
	 
	Crediting of Dividends on BW Stock Units. Whenever the Company pays a dividend on its Common Stock, in cash or property, at a time when a Participant has BW Stock Units credited to his or her Account, the Participant shall be credited with a number of additional BW Stock Units equal to the result of multiplying the number of BW Stock Units in the Participant’s Account on the dividend record date by the dividend paid on each share of Common Stock, and then dividing this amount by the Market Value of the Common Stock on the dividend payment date. In the case of any dividend distributable in property other than Common Stock, the per share value of the dividend shall be the value determined by the Company for federal income tax reporting purposes.

	 
	 
	 
	 

	 
	h.
	 
	Transfers From or Into BW Stock Units Accounts. Notwithstanding anything in this Section to the contrary,

	
		
	1
	Under such procedures as may be established by the Committee, a Participant may elect to make one transfer per year, from or into the Participant’s BW Stock Units Account, of amounts previously credited to the Participant’s Account.

	 
	 

	2
	Transfers must be in an amount that equals or exceeds the lesser of $1,000 (or such other amount as the Committee may establish) or the entire balance of the account from which the transfer is made.

5

	
				
	 
	i.
	 
	Adjustments to Participant Accounts for Investment Performance. A Participant Account balance shall be adjusted as of each Valuation Date, based on the performance of the Investment Options selected or deemed selected by the Participant, as if the portion of the Participant’s Account allocated to an Investment Option were actually invested in such Investment Option and adjusted for other amounts as if such other amounts were actually charged or credited to an actual Account balance of the Participant. The Committee may also charge as an expense against a Participant’s Account: (i) amounts customarily charged by the sponsor of one or more Investment Funds that are charged on a per Participant or per transaction basis and not otherwise charged as an expense of an Investment Option; and (ii) the Committee’s and the Company’s own expenses and out-of-pocket fees in administering the Plan. The Committee’s allocation of charges and expenses among Participant Accounts shall be final and conclusive against the Participants and all other parties.

	
		
	5.2
	Vesting of Participant Accounts. A Participant shall be 100 percent vested in all amounts credited to his or her Participant Account at all times.

	 
	 

	5.3
	Effective Date. Article V shall be effective January 1, 2007 except that Section 5.1(h) shall be effective January 1, 2009.

VI. DISTRIBUTIONS AND WITHDRAWALS OF BENEFITS
	
		
	6.1
	Distribution Options. When making a Deferral Election pursuant to Section 4.2, the Participant must elect one of the following alternative forms of payment for each related Deferred Benefit Account:

	
				
	 
	a.
	 
	Pre-2009 Balances. The following alternative forms of payment shall apply to the portion of a Participant Account that is attributable to Retainer Fees earned prior to January 1, 2009:

	
		
	1
	Substantially equal monthly installments for a period of 5, 10, 15 or 20 years payable on the first day of each month commencing on the January 1 next following the Participant’s sixty-fifth (65th) birthday or Termination of Service, according to the option chosen by the Participant.

	 
	 

	2
	A lump sum payable on the first Business Day after the January 1 next following the Participant’s sixty-fifth (65th) birthday or Termination of Service, according to the option chosen by the Participant.

	
				
	 
	b.
	 
	Post-2008 Deferrals. The following alternative forms of payment shall apply to the portion of a Participant Account that is attributable to Retainer Fees earned after December 31, 2008:

	
		
	1
	Substantially equal annual installments for a period of 5 years commencing on the January 1 next following the Participant’s sixty-fifth (65th) birthday or Termination of Service, according to the option chosen by the Participant.

	 
	 

	2
	A lump sum payable on the January 1 next following the Participant’s sixty-fifth (65th) birthday or Termination of Service, according to the option chosen by the Participant.

Notwithstanding subsections (a) and (b) above, any Participant who is age sixty-five (65) or older in the relevant Deferral Year must elect to commence payment of any Deferred Benefit Account for such Deferral Year on the first Business Day after the January 1 next following his or her Termination of Service.
	
		
	6.2
	Change in Distribution Options.

6

	
				
	 
	a.
	 
	Pre-2005 Balances. At least 24 months (or more) prior to the expiration of the Participant’s term as a member of the Board of Directors or the Participant’s sixty-fifth (65th) birthday, whichever occurs first, a Participant may submit a written election to the Committee to change the commencement of payment of one or more Deferred Benefit Accounts from Termination of Service to age 65 or change the form of payment elected for such Deferred Benefit Account(s) from installment payments to a lump sum without penalty; provided, however, that if the Participant subsequently incurs a Termination of Service within the 24 months immediately succeeding such election change, the election change shall be null and void and the original election shall be reinstated. However, any other changes elected by the Participant shall result in a 10% reduction before payment of the relevant Deferred Benefit Account. This includes, but is not limited to, (a) an election to change from a lump sum payment to installment payments or (b) an election to defer commencement of payment that is submitted to the Committee less than 24 months prior to the expiration of the Participant’s term. The Participant shall only be subjected to one 10% reduction in each affected Deferred Benefit Account at one time, regardless of the number of changes in form of payment that a Participant elects at that time. This Section 6.2(a) shall only apply to the portion of a Participant’s Account that is attributable to Retainer Fees earned prior to January 1, 2005.

	 
	 
	 
	 

	 
	b.
	 
	Post-2004 Balances. Prior to January 1, 2009, a change in the form of payment may only be made in accordance with the Special Transition Election provided by Section 6.10 hereof. After December 31, 2008, no change in a Participant’s distribution election shall be permitted. This Section 6.2(b) shall only apply to the portion of a Participant Account that is attributable to Retainer Fees earned on or after January 1, 2005.

	
		
	6.3
	Designation of Beneficiary and Form of Death Benefit. Each Participant must designate at least one Beneficiary on a Beneficiary designation form provided by the Committee in the event of the Participant’s death. The Participant shall also designate a form of death benefit from among the following: lump sum payment or equal monthly installments (equal annual installments for installments payable on or after January 1, 2007) for a period of 5 years. The form of death benefit elected shall apply to the full amount of the Participant’s Account. All forms of benefit shall commence as of the first Business Day after the January 1 next following the Participant’s death.

	 
	 

	6.4
	Death Prior to Termination of Service.

	
				
	 
	a.
	 
	Pre-2005 Balances. Upon the death of a Participant prior to his or her Termination of Service, the Beneficiary of the deceased Participant shall be entitled to a death benefit equal to the value of the Participant Account. The form of benefit shall be as provided in Section 6.3. If the Participant’s Beneficiary is not alive at the time of the Participant’s death, payment of the Participant Account shall be made to the Participant’s estate in the form of a lump sum on the first Business Day of the first month subsequent to the Participant’s death (such day to be a Valuation Date with respect to the applicable Participant Account) or as soon as otherwise administratively feasible. This Section 6.4(a) shall only apply to the portion of a Participant’s Account that is attributable to Retainer Fees earned prior to January 1, 2005.

	 
	 
	 
	 

	 
	b.
	 
	Post-2004 Balances. Upon the death of a Participant prior to his or her Termination of Service, the Beneficiary of the deceased Participant shall be entitled to a death benefit equal to the value of the Participant Account. The form of benefit shall be as provided in Section 6.3. This Section 6.4(b) shall only apply to the portion of a Participant’s Account that is attributable to Retainer Fees earned on or after to January 1, 2005.

	
		
	6.5
	Death Following Termination of Service. Upon the death of a Participant following his or her Termination of Service, the Beneficiary of the deceased Participant shall continue to receive any of the remaining payments from the Participant Account in the form of payment elected by the Participant in his or her Deferral Elections.

	 
	 

	6.6
	Emergency Benefit: Waiver of Deferral. In the event that the Committee, upon written petition of the Participant or his or her Beneficiary, determines in its sole discretion that the Participant or his or her Beneficiary has suffered an Unforeseeable Financial Emergency, the Company shall pay to the Participant or his or her Beneficiary on the first Business Day of the first calendar month following such determination or as soon as practicable (such date to be a Valuation Date with respect to the applicable Participant Account), an amount necessary to satisfy the emergency, but not in excess of the Participant Account balance, provided however, that no payments shall be made from a Participant’s BW Stock Unit Account pursuant to this Section 6.6.

7

 	
		
	6.7
	Unscheduled Withdrawals for Pre-2005 Balances. A Participant may make an Unscheduled Withdrawal of any amounts in his or her Participant Account that have been in the Plan for at least five years by filing an election with the Committee. The Company shall make payment of the requested withdrawal as of the first Business Day after the January 1 next following the Committee’s receipt and approval of the withdrawal election. Subject to the remainder of this Section 6.7, a request for an Unscheduled Withdrawal may be filed at any time prior to December 15th of the year preceding the year in which unscheduled withdrawal is made. A Participant may take no less than the lesser of $2,000 or the remaining balance in his or her Participant Account in the form of an Unscheduled Withdrawal. Amounts taken in the form of an Unscheduled Withdrawal will be reduced by a 10% penalty at the time of payment. No Unscheduled Withdrawals shall be made from a Participant’s BW Stock Unit Account. This Section 6.7 shall only apply to the portion of a Participant Account that is attributable to Retainer Fees earned prior to January 1, 2005.

	 
	 

	6.8
	Withholding Taxes. To the extent required by law in effect at the time payments are made, the Company shall withhold any taxes required to be withheld by any Federal, State, or local government.

	 
	 

	6.9
	Form of Distributions/Withdrawals. All distributions and withdrawals made under the Plan shall be made in cash and shall be valued as of the Valuation Date coincident with or immediately preceding the date of the distribution or withdrawal. Distributions from the BW Stock Account shall be converted to cash, as of such Valuation Date, in order to effect such distributions.

	 
	 

	6.10
	Code Section 409A Special Transition Rules Elections for Post-2004 Deferrals. Notwithstanding the required deadline for the submission of an initial distribution election described in this Article 6, the Committee may, as permitted by Code Section 409A and related Treasury guidance or Regulations, provide a limited period beginning January 1, 2008, in which Participants may make new distribution elections (from among those offered by the Plan except that the only the form of installment payments available is the 5-year annual installments form described by Section 6.1(b)(1)), by submitting a distribution election form, as prescribed by the Committee, on or before the deadline established by the Committee, which in no event shall be later than December 31, 2008; provided, however, no such change in election shall defer any payment which would otherwise have been made in 2008 nor accelerate any payment that is payable in 2009 or later into 2008. Any distribution election made in accordance with the requirements established by the Committee, pursuant to this section, shall not be treated as a change in the form or timing of a Participant’s benefit payment for purposes of Code Section 409A or the Plan. The Committee shall interpret all provisions relating to an election submitted in accordance with this section in a manner that is consistent with Code Section 409A and related Treasury guidance or Regulations. If any distribution election submitted in accordance with this section either (i) relates to payments that a Participant would otherwise receive in 2008, or (ii) would cause payments to be made in 2008, such election shall not be effective. This Section 6.10(a) shall only apply to the portion of a Participant Account that is attributable to Retainer Fees earned after December 31, 2004 and shall be effective October 31, 2008.

VII. CLAIMS FOR BENEFITS PROCEDURE

8

	
		
	7.1
	Claim for Benefits. Any claim for benefits under the Plan shall be made in writing to any member of the Committee. If such claim is wholly or partially denied by the Committee, the Committee shall, within a reasonable period of time, but not later than 60 days after receipt of the claim, notify the claimant of the denial of the claim.

	 
	 

	7.2
	Request for Review of a Denial of a Claim for Benefits. Upon the receipt by the claimant of written notice of denial of the claim, the claimant may within 90 days file a written request to the Committee, requesting a review of the denial of the claim, which review shall include a hearing if deemed necessary by the Committee in its sole discretion. In connection with the claimant’s appeal of the denial of his or her claim, he or she may review relevant documents and may submit issues and comments in writing.

	 
	 

	7.3
	Decision upon Review of Denial of Claim for Benefits. The Committee shall render a decision on the claim review promptly, but no more than 60 days after the receipt of the claimant’s request for review, unless special circumstances (such as the need to hold a hearing) require an extension of time, in which case the 60 day period shall be extended to 120 days. The decision of the Committee shall be final and binding in all respects on both the Company and the claimant.

VIII. ADMINISTRATION
	
		
	8.1
	Committee. The Plan shall be administered by the Committee. No member of the Committee may be a Participant under the Plan. The Committee may designate another administrative committee comprised of Company employees to oversee the day to day administration of the Plan, including, without limitation, the solicitation, review and approval of Participant election forms.

	
		
	8.2
	General Rights, Powers, and Duties of Committee. The Committee shall be the Plan Administrator and it shall be responsible for the management, operation, and administration of the Plan. In addition to any powers, rights and duties set forth elsewhere in the Plan, it shall have the following powers and duties:

	
				
	 
	a.
	 
	To adopt such rules and regulations consistent with the provisions of the Plan as it deems necessary for the proper and efficient administration of the Plan;

	 
	 
	 
	 

	 
	b.
	 
	To administer the Plan in accordance with its terms and any rules and regulations it establishes;

	 
	 
	 
	 

	 
	c.
	 
	To maintain records concerning the Plan sufficient to prepare reports, returns and other information required by the Plan or by law;

	 
	 
	 
	 

	 
	d.
	 
	To construe and interpret the Plan and resolve all questions arising under the Plan;

	 
	 
	 
	 

	 
	e.
	 
	To direct the payment of benefits under the Plan, and to give such other directions and instructions as may be necessary for the proper administration of the Plan; and

	 
	 
	 
	 

	 
	f.
	 
	To be responsible for the preparation, filing and disclosure on behalf of the Plan of such documents and reports as are required by any applicable Federal or State law.

	
		
	8.3
	Information to be Furnished to Committee. The Company shall furnish the Committee such data and information as it may require. The records of the Company shall be determinative of each Participant’s period of service as a member of the Board of Directors, personal data and Retainer Fee deferrals. Participants and their Beneficiaries shall furnish to the Committee such evidence, data or information, and shall execute such documents, as the Committee requests.

	 
	 

	8.4
	Responsibility. No member of the Committee or of the Board of Directors shall be liable to any person for any action taken or omitted in connection with the administration of this Plan unless attributable to his or her own fraud or willful misconduct; nor shall the Company be liable to any person for any such action unless attributable to fraud or willful misconduct on the part of a director, officer or employee of the Company within the scope of his or her Company duties. Each member of the Committee shall be indemnified and held harmless by the Company for any liability arising out of the administration of the Plan, to the maximum extent permitted by law.

9

IX. AMENDMENT AND TERMINATION
	
		
	9.1
	Amendment. The Plan may be amended in whole or in part by the Committee at any time. No amendment shall effectively decrease the value of a Participant Account. The Committee reserves the unilateral right to change any rule under the Plan if it deems such a change necessary to avoid constructive receipt, to comply with the requirements of Code Section 409A, or to avoid the application of the Employee Retirement Income Security Act of 1974, as amended, to the Plan.

	 
	 

	9.2
	Company’s Right to Terminate. The Committee reserves the sole right to terminate the Plan at any time after the Effective Date. In the event of any such termination, the Participant shall be entitled to the accrued amount of his or her Participant Account. In the event of the Plan’s termination, the portion of the Participant’s Accounts that is attributable to Retainer Fees earned on or after January 1, 2005, shall be paid to the Participant in as early as possible consistent with the requirements for payments of deferred compensation under Subsections (a)(2) – (a)(4), inclusive of Code Section 409A and the regulations thereunder.

X. MISCELLANEOUS
	
		
	10.1
	No Implied Rights: Rights on Termination of Service. Neither the establishment of the Plan nor any amendment thereof shall be construed as giving any Participant, Beneficiary, or any other person any legal or equitable right unless such right shall be specifically provided for in the Plan or conferred by specific action of the Committee in accordance with the terms and provisions of the Plan. Except as expressly provided in this Plan, the Company shall not be required or be liable to make any payment under the Plan.

	 
	 

	10.2
	No Right to Company Assets. Neither the Participant nor any other person shall acquire by reason of the Plan any right in or title to any assets, funds or property of the Company whatsoever including, without limiting the generality of the foregoing, any specific funds, assets, or other property which the Company, in its sole discretion, may set aside in anticipation of a liability hereunder. Any benefits which become payable hereunder shall be paid from the general assets of the Company. The Participant shall have only a contractual right to the amounts, if any, payable hereunder, unsecured by any asset of the Company. Nothing contained in the Plan constitutes a guarantee by the Company that the assets of the Company shall be sufficient to pay any benefit to any person.

10

	
		
	10.3
	No Service Rights. Nothing herein shall constitute a contract of continuing service or in any manner obligate the Company to continue the services of the Participant or obligate the Participant to continue in the service of the Company. Nothing herein shall be construed as fixing or regulating the Retainer Fee or any other amount payable to any Participant.

	 
	 

	10.4
	Offset. If, at the time payments or installments of payments are to be made hereunder, the Participant or the Beneficiary or both are indebted or obligated to the Company, then the payments under the Plan remaining to be made to the Participant or the Beneficiary or both may, at the discretion of the Company, be reduced by the amount of such indebtedness or obligation, provided, however, that an election by the Company not to reduce any such payment or payments shall not constitute a waiver of its claim for such indebtedness or obligation. This Section 10.4 shall only apply to the portion of the Participant Account that is attributable to Retainer Fees earned prior to January 1, 2005.

	 
	 

	10.5
	Non-assignability. Neither the Participant nor any other person shall have any voluntary or involuntary right to commute, sell, assign, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate or convey in advance of actual receipt the amounts, if any, payable hereunder, or any part thereof; which are expressly declared to be unassignable and non-transferable. No part of the amounts payable prior to actual payment shall be subject to seizure or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by the Participant or any other person, or be transferable by operation of law in the event of the Participant’s or any other person’s bankruptcy or insolvency.

	 
	 

	10.6
	Notice. Any notice required or permitted to be given under the Plan shall be sufficient if in writing and hand delivered, or sent by registered or certified mail, and if given to the Company, delivered to the principal office of the Company, directed to the attention of the Committee. Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark or the receipt for registration or certification.

	 
	 

	10.7
	Governing Laws. The Plan shall be construed and administered according to the laws of the State of Michigan.

	 
	 

	10.8
	Status of Investment Options. The Investment Options offered under the Plan are for the sole purpose of providing a performance measurement for adjusting Participant Accounts for income, gain or loss. Notwithstanding anything in this Plan to the contrary, the Company shall not be required to actually invest monies in any fund designated as an Investment Option, any decision to so invest shall remain within the complete discretion of the Company, and any amounts so invested shall remain the property of the Company. A Participant whose Participant Account consists in whole or in part of BW Stock Units shall have no rights of a shareholder of Common Stock. Neither the Participant nor his or her Beneficiary shall have any right, other than the right of an unsecured general creditor, against the Company or in respect to the benefits payable, or which may be payable, to the Participant or Beneficiary under the Plan.

11

	
		
	10.9
	Compliance With Court Orders. The Committee is authorized to comply with any court order in any action in which the Plan or the Committee has been named as a party, including any action involving a determination of the rights or interests in a Participant’s benefits under the Plan. Notwithstanding the foregoing, the Committee shall interpret this provision in a manner that is consistent with Code Section 409A and other applicable tax law. In addition, if necessary to comply with a qualified domestic relations order, as defined in Code Section 414(p)(1)(B), pursuant to which a court has determined that a spouse or former spouse of a Participant has an interest in the Participant’s benefits under the Plan, the Committee, in its sole discretion, shall have the right to immediately distribute the spouse’s or former spouse’s interest in the Participant’s benefits under the Plan to such spouse or former spouse.

	 
	 

	10.10
	Distributions For the Payment of Taxes. If any portion of a Participant Account under this Plan is required to be included in income by the Participant prior to receipt due to a failure of this Plan to meet the requirements of Code Section 409A and related Treasury guidance or Regulations, the Participant may petition the Committee or Administrator, as applicable, for a distribution of that portion of his or her Participant Account Balance that is required to be included in his or her income. Upon the grant of such a petition, which grant shall not be unreasonably withheld, the Company shall distribute to the Participant immediately available funds in an amount equal to the portion of his or her Participant Account required to be included in income as a result of the failure of the Plan to meet the requirements of Code Section 409A and related Treasury guidance or Regulations, which amount shall not exceed the Participant’s unpaid vested Participant Account balance under the Plan. If the petition is granted, such distribution shall be made within ninety (90) days of the date when the Participant’s petition is granted. Such a distribution shall affect and reduce the Participant’s benefits to be paid under this Plan.

	 
	 

	10.11
	Special Transition Rule for the Crediting of Participant Accounts. Prior to January 2, 2007, the Plan’s Investment Options consisted of (1) the Moody’s Money Market Credit Investment Option, (2) the Prime Rate Money Credit Option, and (3) BWA Stock Units.

	
				
	 
	a.
	 
	The opening balances of Participant Accounts on January 1, 2007 (if any) shall be based upon the value of Participant Accounts as of December 31, 2006 as determined under the provisions of the Plan for crediting and valuing Participant Accounts as in effect prior to its amendment and restatement effective January 1, 2005, and based on Participants’ Investment Options allocations as in effect on December 31, 2006.

	
				
	 
	b.
	 
	On January 2, 2007, Participant Accounts shall be credited with amounts deferred by the Participants for the 2006 Deferral Year in accordance with their 2006 Deferral Elections, which deferrals shall be allocated to the Participants’ Moody’s Money Market Credit Account, Prime Rate Money Credit Account, and/or BW Stock Units Account, as previously elected by the Participant.

	 
	 
	 
	 

	 
	c.
	 
	Following the crediting to Participant Accounts as provided by Section 10.11 (a) and (b), each Participant Account shall be subsequently reallocated on January 2, 2007 among the Investment Options as elected by the Participant under rules and procedures established by the Committee.

	
		
	10.12
	Code Section 409A.. It is intended that the provisions of the Plan comply with Section 409A of the Code and the regulations and guidance promulgated thereunder (collectively, “Code Section 409A”), and all provisions of the Plan shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Code Section 409A.

	
				
	 
	a.
	 
	If under the Plan, an amount is to be paid in two or more installments, for purposes of Code Section 409A, each installment shall be treated as a separate payment.

	 
	 
	 
	 

	 
	b.
	 
	A Termination of Service shall not be deemed to have occurred for purposes of any provision of the Plan providing for the payment of amounts upon or following a Termination of Service unless such termination is also a “Separation from Service” within the meaning of Code Section 409A and, for purposes of any such provision of the Plan, references to a “resignation,” “termination,” “termination of service” or like terms shall mean Separation from Service.

	 
	 
	 
	 

	 
	c.
	 
	Participation in this Plan is limited to non-employee directors of the Company. Accordingly, it is unlikely that any Participant will subsequently become a “specified employee” of the Company within the meaning of that term under Section 409A(2)(A) of the Code. If, however, a Participant is deemed on the date of termination of his/her service to be a “specified employee”, within the meaning of that term under the Code and using the identification methodology selected by the Company from time to time, or if none, the default methodology, then:

12

	
		
	1
	With regard to any payment under the Plan to the Participant that is payable on account of separation from service, such payment shall not be made or provided prior to the earlier of (i) the expiration of the six-month period measured from the date of the Participant’s Separation from Service or (ii) the date of the Participant’s death; and

	 
	 

	2
	On the first day of the seventh month following the date of the Participant’s Separation from Service or, if earlier, on the date of his/her death, (x) all payments delayed pursuant to this section (whether they would otherwise have been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to the Participant in a lump sum, and any remaining payments and benefits due under this Plan shall be paid or provided in accordance with the normal dates specified from them herein and (y) all distributions of equity delayed pursuant to this section shall be made to the Participant.

	
				
	 
	d.
	 
	No payment or distribution under the Plan shall be accelerated or delayed, except as permitted under Code Section 409A.

	 
	 
	 
	 

	 
	e.
	 
	This Section 10.12 shall only apply to the portion of a Participant Account that is attributable to Retainer Fees earned on or after January 1, 2005.

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00226-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00226-of-00352.parquet"}]]