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a1029borgwarnerinc2004de

                                                                                                   Exhibit 10.29   (;FH[YZKWP(;                                                                                                    ([KLELW                                               %25*  :$51(5   ,1&                                       '()(55('  &203(16$7,21   3/$1                              $ 6$0(1'('$1' 5(67$7('  ())(&7,9( -$18$5<                                                                                                                                                                              

 

                                             $57,&/(                             385326(67$786$1'())(&7,9('$7( 6HFWLRQ3XUSRVHRI3ODQ %RUJ:DUQHU,QFD'HODZDUHFRUSRUDWLRQDGRSWHGWKH%RUJ:DUQHU,QF Deferred Compensation Plan (the “Plan”), as set forth KHUHLQHIIHFWLYH-XO\DVDPHDQVRIUHZDUGLQJDQG UHWDLQLQJVHOHFWHGHPSOR\HHVDQGWRSURYLGHVXFKLQGLYLGXDOVWKHRSSRUWXQLW\IRUFDSLWDODFFXPXODWLRQWKURXJK HOHFWLYHGHIHUUDOVRIFRPSHQVDWLRQ 7KH3ODQLVDOVRWKHVXFFHVVRUWRDPHQGVDQGUHVWDWHVDVVXPHVWKHREOLJDWLRQVRIDQGUHSODFHVWKH%RUJ:DUQHU ,QF([HFXWLYH'HIHUUHG&RPSHQVDWLRQ3ODQIRUPHUO\QDPHGWKH%RUJ:DUQHU$XWRPRWLYH,QF'HIHUUHG Compensation Plan) (the “Prior Plan”).  7KHDFFRXQWEDODQFHVXQGHUWKH3ULRU3ODQZHUHWUDQVIHUUHGWRWKH3ODQDVRI-XO\RUVKRUWO\WKHUHDIWHU DQGWKH3ODQFRPSULVHVWKHVROHVRXUFHRIOLDELOLW\RIWKH&RPSDQ\DQGRI(PSOR\HUVIRUDOOREOLJDWLRQVXQGHUWKH Prior Plan. The distribution of a Participant’s Account under the Plan sh DOOEHLQFRPSOHWHVDWLVIDFWLRQRIWKH Participant’s right to a distribution under the Prior Plan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record the Participant’s interest under the Plan. The balance posted to the record RIWKH$FFRXQWRID3DUWLFLSDQWVKDOO consist of the sum of the Participant’s balance transferred from the Prior Plan (if any) and Deferrals, adjusted for  HDUQLQJVORVVHVDSSUHFLDWLRQGHSUHFLDWLRQGLVWULEXWLRQVH[SHQVHVDQGRWKHUFKDUJHVPDGHDJDLQVWWKH$FFRXQW SXUVXDQWWR$UWLFOH 6HFWLRQ$GPLQLVWUDWLYH&RPPLWWHH VKDOOPHDQWKHDGPLQLVWUDWLYHFRPPLWWHHRIWKH&RPSDQ\DSSRLQWHGE\WKH %RDUGRI'LUHFWRUVWRDGPLQLVWHUWKH3ODQZLWKWKHSRZHUVVHWIRUWKLQ$UWLFOHDQGDVHOVHZKHUHSURYLGHGLQWKH 3ODQRWKHUWKDQWKRVHSRZHUVWKDWWKH%RDUGRI'LUHFWRUVKDVUHVHUYHGIRULWVHOI                                                                                                                                                      

 

  6HFWLRQ%HQHILFLDU\ VKDOOPHDQWKHSHUVRQRUSHUVRQVRUHQWLW\GHVLJQDWHGE\WKH3DUWLFLSDQWWRUHFHLYHWKH balance of the Participant’s Account in the event of the Participant’s death. The designation may be in favor of one  RUPRUH%HQHILFLDULHVPD\LQFOXGHFRQWLQJHQWDVZHOODVSULPDU\GHVLJQDWLRQVDQGQDPHGRUXQQDPHGWUXVWHHVXQGHU DQ\ZLOORUWUXVWDJUHHPHQWPD\DSSRUWLRQWKHEHQHILWVSD\DEOHLQDQ\PDQQHUDPRQJWKH%HQHILFLDULHVSURYLGHG however, that a married Participant’s primary Beneficiary shall EHDWDOOWLPHVZKLOHWKH3DUWLFLSDQWLVPDUULHGWKH Participant’s current spouse unless the spouse consents in writing, properly notarized or witnessed by a member of  WKH$GPLQLVWUDWLYH&RPPLWWHHRULWVGHOHJDWHHWRWKHQDPLQJE\WKH3DUWLFLSDQWRIVRPHRQHRWKHUWKDQWKHVSRXVHDV DSULPDU\%HQHILFLDU\DQGWKHFRQVHQWDFNQRZOHGJHVWKHILQDQFLDOHIIHFWRIWKHZDLYHUDQGIXUWKHUDFNQRZOHGJHVWKH QRQVSRXVHEHQHILFLDU\LHVFODVVRIEHQHILFLDULHVRUFRQWLQJHQWEHQHILFLDU\LHVDQGWKHVSHFLILFIRUPRISD\PHQWLI any, chosen by the Participant. A Participant’s designation of one or more Beneficiaries shall be made in writing in a  PDQQHUGHVLJQDWHGE\WKH$GPLQLVWUDWLYH&RPPLWWHHDQGVKDOOQRWEHHIIHFWLYHXQWLOUHFHLYHGE\WKH$GPLQLVWUDWLYH &RPPLWWHH,ID3DUWLFLSDQWZKRLVXQPDUULHGDWWKHWLPHRIKLVRUKHUGHDWKIDLOVWRSURSHUO\GHVLJQDWHD%HQHILFLDU\ RULIWKHGHVLJQDWHGEHQHILFLDULHVRIVXFKXQPDUULHG3DUWLFLSDQWVKDOOKDYHSUHGHFHDVHGWKH3DUWLFLSDQWWKH Participant’s estate shall be the Beneficiary. If a married Participant’s spouse has validly consented to the  GHVLJQDWLRQRID%HQHILFLDU\LHVRWKHUWKDQVXFKVSRXVHDQGVXFKGHVLJQDWHGEHQHILFLDULHVVKDOOKDYHSUHGHFHDVHG the Participant, the Participant’s spouse shall be the Beneficiary.   Subject to the provisions of the preceding paragraph requiring spousal consent to a married Participant’s  designation of a Beneficiary other than such Participant’s spouse, a Participant may change his or her Beneficiary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individual, the term “Board of Directors” shall also include such committee or individual.  6HFWLRQ%:6WRFN8QLW VKDOOPHDQDPHDVXUHRISDUWLFLSDWLRQXQGHUWKH3ODQZKLFKKDVDYDOXHEDVHGRQ Common Stock. Each BW Stock Unit credited to a Participant’s Account represents an obligation of the Company  RUUHOHYDQW(PSOR\HUWRPDNHDSD\PHQWRIFDVKHTXDOWRWKHIDLUPDUNHWYDOXHRIDVKDUHRI&RPPRQ6WRFNWRVXFK Participant at such time as the Participant’s Account shall become distributable to him or her under the terms of the  3ODQ,QWKHHYHQWRIDQ\&RPSDQ\VWRFNVSOLWVWRFNGLYLGHQGUHFDSLWDOL]DWLRQUHRUJDQL]DWLRQPHUJHU FRQVROLGDWLRQFRPELQDWLRQH[FKDQJHRIVKDUHVOLTXLGDWLRQVSLQRIIRURWKHUVLPLODUFKDQJHLQFDSLWDOL]DWLRQRU HYHQWRUDQ\GLVWULEXWLRQWRKROGHUVRI&RPPRQ6WRFNRWKHUWKDQDUHJXODUFDVKGLYLGHQGWKHQXPEHURI%:6WRFN 8QLWVFUHGLWHGWR3DUWLFLSD nts’ Accounts under the Plan shall be appropriately adjusted by the Board of Directors.  7KHGHFLVLRQRIWKH%RDUGRI'LUHFWRUVUHJDUGLQJDQ\DGMXVWPHQWVKDOOEHILQDOELQGLQJDQGFRQFOXVLYH                                                                                                                                                      

 

  6HFWLRQ%XVLQHVV'D\ VKDOOPHDQDGD\RQZKLFKWKH1HZ<RUN6WRFN([FKDQJHLVRSHQIRUWUDGLQJ 6HFWLRQ&KDQJHLQ&RQWURO VKDOOPHDQWKHKDSSHQLQJRIDQ\RIWKHIROORZLQJHYHQWV $7KHDFTXLVLWLRQE\DQ\LQGLYLGXDOHQWLW\RUJURXSZLWKLQWKHPHDQLQJRI6HFWLRQGRUGRIWKH Exchange Act )(a “Person “) of beneficial ownership (within the meaning of Rule GSURPXOJDWHGXQGHUWKH ([FKDQJH$FWRIVWRFNRIWKH&RPSDQ\WKDWWRJHWKHUZLWKVWRFNKHOGE\VXFKSHUVRQRUJURXSFRQVWLWXWHVPRUH than 50% of either (i) the total fair market value of the stock of the Company (the “Outstanding Company Stock”) or  LLWKHWRWDOYRWLQJSRZHURIWKHWKHQRXWVWDQGLQJYRWLQJVHFXULWLHVRIWKH&RPSDQ\HQWLWOHGWRYRWHJHQHUDOO\LQWKH election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this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exchange for or with respect to such shareholder’s stock of the Company; (ii) DQHQWLW\RIPRUHRIWKHWRWDO YDOXHRUWRWDOYRWLQJSRZHURIZKLFKLVRZQHGGLUHFWO\RULQGLUHFWO\E\WKH&RPSDQ\LLLD3HUVRQWKDWRZQV GLUHFWO\RULQGLUHFWO\RUPRUHRIWKH2XWVWDQGLQJ&RPSDQ\6WRFNRU2XWVWDQGLQJ&RPSDQ\9RWLQJ6HFXULWLHV RUDQHQWLW\DWOHDVWRIWKHWRWDOYDOXHRUYRWLQJSRZHURIZKLFKLVRZQHGGLUHFWO\RULQGLUHFWO\E\D3HUVRQ GHVFULEHGLQFODXVHLLLRIWKLVSDUDJUDSK 6HFWLRQ&ODLPDQW VKDOOPHDQWKH3DUWLFLSDQWRU%HQHILFLDU\RUKLVRUKHUUHSUHVHQWDWLYHVXEPLWWLQJDFODLPIRU EHQHILWVXQGHUWKH3ODQ                                                                                                                                                      

 

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                                                                     Exhibit 10.32                          RETENTION BONUS AGREEMENT     This Retention Bonus Agreement  (“Agreement”) is entered into between BorgWarner, Inc.  (“BW”) and  Anthony Hensel  (“EMPLOYEE”) in order to set forth the parties’ mutual intentions and understandings   regarding EMPLOYEE’s eligibility for a bonus during the retention period.       1.    Retention Period and Retention Bonus.  In consideration for EMPLOYEE remaining continuously  employed on an active, full-time basis, from the date EMPLOYEE signs this Agreement through March 31,  2020 (“Retention Period”) and subject to the terms of this Agreement, BW agrees to pay EMPLOYEE a lump  sum retention bonus in the total gross amount of Two Hundred Sixteen Thousand Dollars  ($ 216,000.00 ),   less any applicable taxes, social security charges, or other amounts required by law to be withheld (“Retention   Bonus”). The Retention Bonus shall be in addition to EMPLOYEE’s standard benefits and compensation.       2.    Responsibilities  during  Retention  Period.  EMPLOYEE  agrees  and  acknowledges  that  he  is   subject to all policies, procedures and expectations of BW during the Retention Period and must perform his   duties and responsibilities (as the same are currently being performed by EMPLOYEE) in good faith on a full- time basis to the satisfaction of BW EMPLOYEE acknowledges and agrees that nothing in this Agreement  modifies  or  changes  his  at-will  employment  status  and  either  EMPLOYEE  or  BW  may  terminate  the  employment  relationship  at  any  time,  with  or  without cause  or  advance  notice,  at  the  will  of  either  party.  Notwithstanding anything to the contrary contained herein, EMPLOYEE shall be allowed to perform his duties  and  responsibilities  remotely,  provided  that  EMPLOYEE  provides  BW  with  prior  notice  that  he  will  be  working remotely, and further provided that EMPLOYEE may not work remotely during the months following   a quarter end (i.e. January 2019, April 2019, July 2019, October 2019, and January 2020) until BW has satisfied   its reporting obligations with the U.S. Securities and Exchange Commission.  If requested by BW, EMPLOYEE  will attend senior leadership meetings in person.           3.    Management  Incentive  Plan.  Nothing  in  this  Agreement  modifies  or  waives  EMPLOYEE’S  eligibility for a bonus or other payment under the BW Management Incentive Plan (MIP) for the years 2019 or  2020.  Any eligibility for a bonus or other payment will be determined solely by the express terms of the MIP,  as amended or modified by BW.     4.    Payment of Retention Bonus.  EMPLOYEE acknowledges that the Retention Bonus is only due  and payable if EMPLOYEE remains continuously employed in good standing and performs his duties on an  active, full-time basis, until March 31, 2020, or is terminated by BW without cause  prior to March 31, 2020.   Payment of the Retention Bonus shall be conditioned on EMPLOYEE’s execution of a general release of   claims in a form acceptable to BW.  EMPLOYEE acknowledges and agrees that BW will not  be obligated to   pay the Retention Bonus if: (i) EMPLOYEE is discharged “for cause” as that term is defined in the BorgWarner   Inc.  2018  Stock  Incentive  Plan;  (ii)  EMPLOYEE  resigns  for  any  reason  prior  to  March  31,  2020;  (iii)     

 

                                                                     Exhibit 10.32  EMPLOYEE retires prior to March 31, 2020; or (iv) EMPLOYEE dies or is incapacitated from performing  his full time duties (with or without accommodation) for four non-consecutive months during the Retention  Period; provided, however, if such an event occurs, BW shall pay EMPLOYEE (or the spouse of EMPLOYEE,  in the event of EMPLOYEE'S death) a prorated portion of the Retention Bonus based on the number of  months prior to the occurrence of an event specified in clause (iv) over the total number of months in the  Retention Period. The Retention Bonus (or any prorated portion thereof, if applicable) will be paid on March  31, 2020 or, in the event EMPLOYEE’s employment is terminated by BW without cause  prior to March 31, 2020,  or terminated due to an event described in clause (iv) above or in Paragraph 6 below, on the first regularly  scheduled payroll date following such termination date or event.           5.    Cooperation and Successor.   To enable EMPLOYEE to voluntarily resign or retire effective on  March  31,  2020,  BW  [will  use  its  commercially  reasonable  best  efforts  to]  [shall]  identify  a  successor  to  EMPLOYEE (the "Successor") by September 15, 2019. EMPLOYEE agrees to cooperate in good faith in the  training the Successor during the quarterly financial closing process following September 30, 2019, and will  transition EMPLOYEE’S duties to the Successor during the year-end financial closing following December 31,   2019.             6.    Full Transfer of Duties to Successor.  Notwithstanding anything to the contrary contained herein,   in  the  event  that  EMPLOYEE'S  duties  are  fully  transferred  to  his  Successor  prior  to  March  31,  2020  (as   determined or approved by BW) EMPLOYEE shall be permitted to retire on said date and BW shall pay   EMPLOYEE  the  entire  Retention  Bonus  on  the  first  regularly  scheduled  payroll  date  following  the  date   EMPLOYEE'S duties are so transferred.            7.    Section 409A.  The Retention Bonus is intended to comply with the “short term deferral” exception   from  Section  409A  of  the  Internal  Revenue  Code  (“Section  409A”)  and  shall  be  interpreted  in  a  manner   consistent with the applicable exception(s).  If the Retention Bonus is subject to Section 409A, this Agreement   shall be interpreted and administered in such a way as to comply with Section 409A to the maximum extent   possible. The terms “termination of employment,” “resignation,” or words of similar import in this Agreement   shall mean the Employee’s “separation from service” as defined by Section 409A.  If payment of any amount   subject to Section 409A is triggered by a separation from service that occurs while EMPLOYEE is a “specified   employee” under Section 409A and if such amount is scheduled to be paid within six (6) months after such   separation from service, the amount shall accrue without interest and shall be paid the first business day after   the end of such six-month period, or, if earlier, within thirty (30) days after EMPLOYEE’s death.  Nothing in   this  Agreement  shall  be  construed  as  a  guarantee  of  any  particular  tax  treatment  to  EMPLOYEE  and   EMPLOYEE shall be solely responsible for the tax consequences with respect to all amounts payable under   this Agreement.              

 

                                                                     Exhibit 10.32  8.    Applicable Law, Integration, Modification and Counterparts.  This Agreement shall be construed   in accordance with and governed by the laws of the State of Michigan without reference to choice of law or   conflict  of  law  principles.  This  Agreement  supersedes  all  prior  or  contemporaneous  agreements  or   understandings, oral or written, between the parties regarding any Retention Bonus; provided, however, that   this  Agreement  expressly  does  not  apply  to  the  Change  in  Control  Agreement  dated  July  1,  2002..  This  Agreement may only be amended or modified in a writing so stating and signed by EMPLOYEE and the   President of BW.  EMPLOYEE may not assign, sell or transfer his rights under this Agreement to any third-  party without the written consent of the President of BW.   This Agreement may be executed in counterparts,   each of which shall be deemed an original and all of which, taken together, shall constitute one Agreement.             9.   Voluntary Agreement.   EMPLOYEE signs this Agreement voluntarily, of his own free will, without   any duress or coercion by BW or its representatives.  EMPLOYEE read this Agreement and understands its   terms, and has been advised to seek legal advice prior to signing this Agreement.    I understand and accept the above terms and voluntarily agree to this Agreement.      /s/ Anthony D. Hensel_______________  /s/ Tonit M. Calaway__________________  EMPLOYEE                            BorgWarner, Inc .  Anthony Hensel                      By:  Tonit M. Calaway  Dated:   December 8, 2018                                                                                                                                                                                                                                         36503615.1

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