Document:

EX-10.20

 Exhibit 10.20 
 ALLISON TRANSMISSION HOLDINGS, INC. 
 INCENTIVE PLAN 

(Effective as of January 1, 2011) 
 SECTION 1. PURPOSE 
 The purposes of the Plan are to enable the Company and
its Subsidiaries to attract, retain, motivate and reward the best qualified executive officers and key employees by providing them with the opportunity to earn competitive compensation directly linked to the Company’s performance. 

SECTION 2. DEFINITIONS 
 Unless the context requires otherwise, the following words as used in the Plan shall have the meanings ascribed to each below, it being understood that masculine, feminine and neuter pronouns are used
interchangeably and that each comprehends the others. 
 (a) “Board” means the Board of Directors of the
Company. 
 (b) “Committee” means the Compensation Committee of the Board or such other committee or
subcommittee of the Board or the Compensation Committee as the Board or Compensation Committee shall designate from time to time. 
 (c) “Common Stock” means the common stock of the Company, par value $0.01 per share, and such other class of stock into which such common stock is hereafter converted or exchanged.

 (d) “Company” means Allison Transmission Holdings, Inc. 

(e) “Equity Incentive Plan” means the Allison Transmission Holdings, Inc. 2011 Equity Incentive Award Plan, as amended
from time to time. 
 (f) “Participant” means (i) each executive officer of the Company and
(ii) each other employee of the Company or a Subsidiary whom the Committee designates as a participant under the Plan. 
 (g) “Performance Period” means each fiscal year or another period as designated by the Committee. 
 (h) “Plan” means this Allison Transmission Holdings, Inc. Incentive Plan, as set forth herein and as may hereafter be amended from time to time. 

(i) “Subsidiary” means any business entity in which the Company owns, directly or indirectly, fifty percent
(50%) or more of the total combined voting power of all classes of stock entitled to vote, and any other business organization, regardless of form, in which the Company possesses, directly or indirectly, 50% or more of the total combined equity
interests. 
 SECTION 3. AWARDS 
 (a) Performance Criteria. The Committee may establish the performance objective or objectives that must be satisfied in order for a Participant to receive an award for a Performance Period or may
make discretionary payments from the Plan. Performance objectives may be based upon the relative or comparative achievement of performance criteria, whether in absolute terms or relative to the performance of one or more similarly situated companies
or a published index covering the performance of a number of companies, as determined by the Committee for the applicable performance period, which 

 
performance criteria may include: earnings before interest, taxes, depreciation and amortization; operating earnings; net earnings; income; earnings before interest and taxes; total shareholder
return; return on the Company’s assets; increase in the Company’s earnings or earnings per share; revenue; revenue growth; share price performance; return on invested capital; operating income; pre- or post-tax income; net income; economic
value added; profit margins; cash flow; improvement in or attainment of expense or capital expenditure levels; improvement in or attainment of working capital levels; return on equity; debt reduction; gross profit; market share; cost reductions;
workforce satisfaction and diversity goals; workplace health and safety goals; product quality goals; employee retention; customer satisfaction; customer retention; completion of key projects and strategic plan development and/or implementation; job
profit or performance against a multiplier. Performance objectives may be established on a Company-wide basis or with respect to one or more business units, divisions, Subsidiaries or products, or with respect to an individual. When establishing
performance objectives for a Performance Period, the Committee may exclude any or all “extraordinary items,” including, without limitation, the charges or costs associated with restructurings of the Company or any Subsidiary, discontinued
operations, extraordinary items, capital gains and losses, dividends, share repurchase, other unusual or non-recurring items, and the cumulative effects of accounting changes. The Committee may also adjust the performance objectives for any
Performance Period in its discretion, including in recognition of unusual or non-recurring events affecting the Company, changes in applicable tax laws or accounting principles, or such other factors as the Committee may determine. 

(b) Maximum Amount Payable. The maximum aggregate amount of cash that may be paid to any one Participant during any fiscal year of
the Company under the Plan with respect to one or more awards payable in cash shall be US $5,000,000. 
 (c) Termination of
Employment. Unless otherwise determined by the Committee in its sole discretion, if a Participant’s employment terminates for any reason prior to the date on which the award is paid hereunder, such Participants shall forfeit all rights to
any and all awards that have not yet been paid under the Plan. 
 (d) Discretion. Notwithstanding anything else contained
in the Plan to the contrary, the Committee shall have the right, in its absolute discretion, (i) to increase, reduce or eliminate the amount otherwise payable to any Participant under the Plan based on individual performance or conduct
or any other factors that the Committee, in its discretion, shall deem appropriate and (ii) to establish rules or procedures that have the effect of limiting the amount payable to each Participant to an amount that is less than the
maximum amount otherwise authorized under Section 3(b). 
 (e) Form of Payment. Notwithstanding any other provision
in the Plan to the contrary (including, without limitation, the maximum amounts payable under Section 3(b)), the Committee shall have the right, in its discretion, to grant any award in cash, in shares of the Company’s Common Stock under
the Equity Incentive Plan, in other awards under the Equity Incentive Plan or in any combination thereof, to any Participant up to the maximum award payable under Section 3(b), based on individual performance or any other criteria that the
Committee deems appropriate. 
 SECTION 4. PAYMENT 
 Payment of any award amount from the Plan shall be made to each Participant as soon as practicable after the Committee determines the amount of any such award amount. The Committee shall determine whether
any bonus payable under the Plan is payable in cash, in shares of Common Stock (including, but not limited to, restricted common stock or restricted stock units) or other awards under the Equity Incentive Plan, or in any combination thereof. The
Committee shall have the right to impose whatever conditions it deems appropriate with respect to the award of shares of Common Stock or other awards, including conditioning the vesting of such shares or other awards on the performance of additional
service. 

  
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 SECTION 5. GENERAL PROVISIONS 

(a) Administration. The Committee shall be responsible for the administration of the Plan. The Committee shall establish the
performance objectives for any fiscal year or other Performance Period determined by the Committee in accordance with Section 3 and determine whether such performance objectives have been obtained. The Committee may prescribe, amend and rescind
rules and regulations relating to the administration of the Plan and make all other determinations necessary or advisable for the administration and interpretation of the Plan. Any authority exercised by the Committee under the Plan shall be
exercised by the Committee in its sole discretion. Determinations, interpretations or other actions made or taken by the Committee under the Plan shall be final, binding and conclusive for all purposes and upon all persons. 

(b) Delegation by the Committee. All of the powers, duties and responsibilities of the Committee specified in this Plan may be
exercised and performed by the Committee or any duly constituted committee thereof to the extent authorized by the Committee to exercise and perform such powers, duties and responsibilities, and any determination, interpretation or other action
taken by such committee shall have the same effect hereunder as if made or taken by the Committee. 
 (c) Tax
Withholding. The Company shall have the power to withhold, or to require the Participant to remit to the Company, an amount in cash sufficient to satisfy all U.S. federal, state, local and any non-U.S. withholding tax or other governmental tax,
charge or fee requirements in respect of any payment under the Plan. 
 (d) No Guarantee of Employment. Nothing in the
Plan shall interfere with or limit in any way the right of the Company to terminate any Participant’s employment at any time, or confer upon any Participant any right to continue in the employ or retention of the Company. 

(e) Unfunded Plan; Plan Not Subject to ERISA. The Plan is an unfunded plan and Participants shall have the status of unsecured
creditors of the Company. The Plan is not intended to be subject to the Employee Retirement Income and Security Act of 1974, as amended. 
 (f) Freedom of Action. Nothing in the Plan shall be construed as limiting or preventing the Company or any of its affiliates from taking any action that it deems appropriate or in its best interest
(as determined in its sole and absolute discretion) and no Participant (or person claiming by or through a Participant) shall have any right relating to the diminishment in the value of any award or any associated return as a result of any such
action. The foregoing shall not constitute a waiver by a Participant of the terms and provisions of the Plan. 
 (g)
Forfeiture of Award Amounts. 
  

	 	(i)	 Forfeiture for Financial Reporting Misconduct. If the Company is required to prepare an accounting restatement due to material noncompliance by
the Company with any financial reporting requirement under the securities laws, (x) with respect to any Participant who either knowingly or grossly negligently engaged in the misconduct or knowingly or grossly negligently failed to
prevent the misconduct as determined by the Committee or is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, such Participant shall forfeit and disgorge to the Company any award amounts
(A) received during the twelve (12)-month period following the filing of the financial document 

  
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embodying such financial reporting requirement or (B) earned based on the materially non-complying financial reporting, and (y) with respect to any Participant who is a
current or former executive officer of the Company (as defined under the Securities Exchange Act of 1934) who received incentive compensation under the Plan during the three-year period preceding the date on which the Company is required to prepare
such accounting restatement, based on erroneous data, in excess of what would have been awarded or paid to such Participant under such accounting restatement, such Participant shall forfeit and disgorge to the Company such excess incentive
compensation. 

  

	 	(ii)	Forfeiture under Applicable Laws or Regulations. In addition to forfeiture for the reasons specified in subsection (i) of this Section 5(g), the
Participant shall forfeit and disgorge to the Company any award amounts to the extent required by applicable law or regulations in effect on or after the effective date of the Plan. 

(h) Amendment or Alteration. The Board or the Committee may at any time amend, suspend, discontinue or terminate the Plan.

 (i) Severability. The holding of any provision of this Plan to be illegal, invalid or unenforceable by a court of
competent jurisdiction shall not affect any other provision of this Plan, which shall remain in full force and effect. 
 (j)
Assignment. Except as otherwise provided in this Section 5(j), this Plan shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, representatives, successors and assigns. Neither this Plan nor any
right or interest hereunder shall be assignable by the Participant, his beneficiaries, or legal representatives; provided that nothing in this Section 5(j) shall preclude the Participant from designating a beneficiary to receive any
benefit payable hereunder upon his death, or the executors, administrators or other legal representatives of the Participant or his estate from assigning any rights hereunder to the person or persons entitled thereunto. This Plan shall be assignable
by the Company to a Subsidiary or affiliate of the Company; to any corporation, partnership or other entity that may be organized by the Company, its general partners or its Participants as a separate business unit in connection with the business
activities of the Company or Participants; or to any corporation, partnership or other entity resulting from the reorganization, merger or consolidation of the Company with any other corporation, partnership or other entity, or any corporation,
partnership, or other entity to or with which all or any portion of the Company’s business or assets may be sold, exchanged or transferred. 
 (k) No Attachment. Except as required by law, no right to receive payments under this Plan shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge
or hypothecation, or to execution, attachment, levy or similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void and of no effect. 

(l) Headings. The Section headings appearing in this Plan are used for convenience of reference only and shall not be considered a
part of this Plan or in any way modify, amend, or affect the meaning of any of its provisions. 
 (m) Rules of
Construction. Whenever the context so requires, the use of the masculine gender shall be deemed to include the feminine and vice versa, and the use of the singular shall be deemed to include the plural and vice versa. That this Plan was drafted
by the Company shall not be taken into account in interpreting or construing any provision of this Plan. 

  
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 (n) Governing Law. This Plan and its enforcement shall be governed by, and construed
in accordance with, the laws of the State of Indiana, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Plan to the substantive law of another jurisdiction. 

  
 5EX-10.21

  
  

 
 Allison Transmission, Inc.
Deferred 
 Compensation Plan 
 June 22, 2012 

 TABLE OF CONTENTS 
 PREAMBLE 
  

							
	ARTICLE 1 – GENERAL	  	 	1	  
			
	 1.1
	 	 Effective Dates.
	  	 	1	  
	 1.2
	 	 Rules of Interpretation.
	  	 	1	  
		
	ARTICLE 2 – DEFINITIONS	  	 	2	  
			
	 2.1
	 	 “Account”
	  	 	2	  
	 2.2
	 	 “Administrator”
	  	 	2	  
	 2.3
	 	 “Affiliate”
	  	 	2	  
	 2.4
	 	 “Beneficiary”
	  	 	2	  
	 2.5
	 	 “Board” or “Board of Directors”
	  	 	2	  
	 2.6
	 	 “Bonus”
	  	 	2	  
	 2.7
	 	 “Carlyle Stockholders”
	  	 	2	  
	 2.8
	 	 “Change in Control”
	  	 	2	  
	 2.9
	 	 “Code”
	  	 	2	  
	 2.10
	 	 “Compensation”
	  	 	2	  
	 2.11
	 	 “Compensation Committee”
	  	 	3	  
	 2.12
	 	 “Current Onex Stockholders”
	  	 	3	  
	 2.13
	 	 “Disability”
	  	 	3	  
	 2.14
	 	 “Eligible Employee”
	  	 	3	  
	 2.15
	 	 “Employer”
	  	 	3	  
	 2.16
	 	 “ERISA”
	  	 	3	  
	 2.17
	 	 “Identification Date”
	  	 	3	  
	 2.18
	 	 “Key Employee”
	  	 	3	  
	 2.19
	 	 “Onex Stockholders”
	  	 	4	  
	 2.20
	 	 “Participant”
	  	 	4	  
	 2.21
	 	 “Performance Bonus”
	  	 	4	  
	 2.22
	 	 “Permitted Transferee”
	  	 	4	  
	 2.23
	 	 “Person”
	  	 	4	  
	 2.24
	 	 “Plan”
	  	 	4	  
	 2.25
	 	 “Plan Sponsor”
	  	 	4	  
	 2.26
	 	 “Plan Year”
	  	 	4	  
	 2.27
	 	 “Related Employer”
	  	 	4	  
	 2.28
	 	 “Retirement”
	  	 	4	  
	 2.29
	 	 “Separation from Service”
	  	 	4	  
	 2.30
	 	 “Specified Date”
	  	 	5	  
	 2.31
	 	 “Valuation Date”
	  	 	5	  
	 2.32
	 	 “Years of Service”
	  	 	6	  
		
	ARTICLE 3 – PARTICIPATION	  	 	7	  
			
	 3.1
	 	 Participation
	  	 	7	  

  
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	 3.2
	 	 Termination of Participation
	  	 	7	  
		
	 ARTICLE 4 – PARTICIPANT ELECTIONS
	  	 	8	  
			
	 4.1
	 	 Deferral Agreement
	  	 	8	  
	 4.2
	 	 Amount of Deferral
	  	 	8	  
	 4.3
	 	 Timing of Election to Defer.
	  	 	8	  
	 4.4
	 	 Election of Payment Schedule and Form of Payment.
	  	 	9	  
	 4.5
	 	 Election Change
	  	 	10	  
		
	ARTICLE 5 – EMPLOYER CONTRIBUTIONS	  	 	11	  
			
	 5.1
	 	 Matching Contributions
	  	 	11	  
	 5.2
	 	 Other Employer Contributions
	  	 	11	  
		
	 ARTICLE 6 – ACCOUNTS AND CREDITS
	  	 	12	  
			
	 6.1
	 	 Establishment of Account
	  	 	12	  
	 6.2
	 	 Credits to Account
	  	 	12	  
		
	ARTICLE 7 – INVESTMENT OF CONTRIBUTIONS	  	 	13	  
			
	 7.1
	 	 Investment Options
	  	 	13	  
	 7.2
	 	 Adjustment of Accounts
	  	 	13	  
		
	ARTICLE 8 – RIGHT TO BENEFITS	  	 	14	  
			
	 8.1
	 	 Vesting.
	  	 	14	  
	 8.2
	 	 Death or Disability
	  	 	14	  
		
	ARTICLE 9 – DISTRIBUTION OF BENEFITS	  	 	16	  
			
	 9.1
	 	 Amount of Benefits
	  	 	16	  
	 9.2
	 	 Method and Timing of Distributions
	  	 	16	  
	 9.3
	 	 Cashouts Of Amounts Not Exceeding Stated Limit
	  	 	16	  
	 9.4
	 	 Required Delay in Payment to Key Employees
	  	 	16	  
	 9.5
	 	 Change in Control
	  	 	17	  
	 9.6
	 	 Permissible Delays in Payment
	  	 	20	  
	 9.7
	 	 Permitted Acceleration of Payment
	  	 	21	  
		
	ARTICLE 10 – AMENDMENT AND TERMINATION	  	 	23	  
			
	 10.1
	 	 Amendment
	  	 	23	  
	 10.2
	 	 Plan Termination Following Change in Control or Corporate Dissolution
	  	 	23	  
	 10.3
	 	 Other Plan Terminations
	  	 	23	  

  
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	ARTICLE 11 – THE TRUST	  	 	25	  
			
	 11.1
	 	 Establishment of Trust
	  	 	25	  
	 11.2
	 	 Rabbi Trust
	  	 	25	  
	 11.3
	 	 Investment of Trust Funds
	  	 	25	  
		
	 ARTICLE 12 – PLAN ADMINISTRATION
	  	 	26	  
			
	 12.1
	 	 Powers and Responsibilities of the Administrator
	  	 	26	  
	 12.2
	 	 Claims and Review Procedures.
	  	 	26	  
	 12.3
	 	 Plan Administrative Costs
	  	 	28	  
	 12.4
	 	 Indemnification
	  	 	28	  
		
	ARTICLE 13 – MISCELLANEOUS	  	 	29	  
			
	 13.1
	 	 Unsecured General Creditor of the Employer
	  	 	29	  
	 13.2
	 	 Employer’s Liability
	  	 	29	  
	 13.3
	 	 Limitation of Rights
	  	 	29	  
	 13.4
	 	 Anti-Assignment
	  	 	29	  
	 13.5
	 	 Facility of Payment
	  	 	29	  
	 13.6
	 	 Notices
	  	 	30	  
	 13.7
	 	 Tax Withholding
	  	 	30	  
	 13.8
	 	 Recoupment
	  	 	30	  
	 13.9
	 	 Successors
	  	 	30	  
	 13.10
	 	 Disclaimer
	  	 	30	  
	 13.11
	 	 Governing Law
	  	 	30	  
	 13.12
	 	 Other Plans
	  	 	31	  

 SCHEDULE 1 

  
 - iii -

 PREAMBLE 
 The Plan is intended to be a “plan which is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly
compensated employees” within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended. The Plan is further intended to conform with the requirements of Internal Revenue Code
Section 409A and the final regulations issued thereunder and shall be interpreted, implemented and administered in a manner consistent therewith. The Plan Sponsor may establish a grantor trust to hold assets for the provision of certain
benefits under the Plan as provided under Section 11. Assets of the trust, if any, shall be subject to the claims of the Plan Sponsor’s general creditors, and no Participant shall have any interest in any assets of the trust or the Plan
Sponsor, other than as a general creditor of the Plan Sponsor. 

 ARTICLE 1 – GENERAL 

 

	1.1	Effective Dates. 

  

	 	(a)	Original Effective Date. The Original Effective Date is June 22, 2012, the date as of which the Plan is initially adopted. 

 

	1.2	Rules of Interpretation. 

  

	 	(a)	The Plan is intended to comply with (i) Code Section 409A and (ii) the applicable provisions of ERISA, and it shall be interpreted and administered in
accordance with such intent. Except as provided in the preceding sentence or as otherwise expressly provided herein, the Plan shall be construed, enforced, and administered, and the validity thereof determined, in accordance with the internal laws
of the State of Indiana without regard to conflict of law principles and the following provisions of this Section. 

  

	 	(b)	Words used herein in the masculine shall be construed to include the feminine, where appropriate, and vice versa, and words used herein in the singular or plural
shall be construed to include the plural or singular, where appropriate. 

  

	 	(c)	Headings and subheadings are used for convenience of reference only and shall not affect the interpretation of any provision hereof. 

 

	 	(d)	If any provision of the Plan shall be held to violate the Code or ERISA or be illegal or invalid for any other reason, that provision shall be deemed null and void, but
the invalidation of that provision shall not otherwise affect the Plan. 

  

	 	(e)	Reference to any provision of the Code, ERISA, or other law shall be deemed to include a reference to the successor of such provision. 

  
 - 1 -

 ARTICLE 2 – DEFINITIONS 
 Wherever used herein, the following terms have the meanings set forth below, unless a different meaning is clearly required by the context: 
 2.1 “Account” means an account established for the purpose of recording amounts credited on behalf of a Participant and any income, expenses, gains, losses or distributions included
thereon. The Account shall be a bookkeeping entry only and shall be utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant or to the Participant’s Beneficiary pursuant to the Plan.

 2.2 “Administrator” means the Benefits Committee and/or its designee who is responsible for the administration of the Plan.

 2.3 “Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by,
or is under common control with, such Person. For these purposes, “control” shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise. 
 2.4 “Beneficiary” means the persons, trusts, estates or other
entities entitled under Section 8.2 to receive benefits under the Plan upon the death of a Participant. 
 2.5 “Board” or
“Board of Directors” means the Board of Directors of the Plan Sponsor. 
 2.6 “Bonus” means any cash bonus
payable by an Employer to an Eligible Employee (i) that does not constitute a Performance Bonus, and (ii) has been determined by the Administrator to be subject to a separate annual deferral election (including an initial deferral
election) on the applicable deferral agreement. 
 2.7 “Carlyle Stockholders” means (i) Carlyle Partners IV AT Holdings,
L.P. and (ii) any Permitted Transferee of Carlyle Partners IV AT Holdings, L.P. that hereafter acquires any shares of stock of the Plan Sponsor. 
 2.8 “Change in Control” means the occurrence of an event involving the Plan Sponsor that is described in Section 9.5. 
 2.9 “Code” means the Internal Revenue Code of 1986, as amended. 
 2.10
“Compensation” means (a) a Participant’s base salary, (b) amounts paid to a Participant within 1 month after the Participant’s severance from employment, to the extent these amounts absent a severance from
employment, would have been paid to the Participant prior to the severance from employment if employment with the Employer had continued, (c) eligible salary continuation payments for Participants on an approved short term disability leave of
absence, (d) pre-tax contributions and catch up 

  
 - 2 -

 
contributions under the Allison Transmission Salaried Employee Retirement Savings Plan as well as amounts contributed to the flexible benefits plan, but not flexible compensation contributions,
(e) any Bonus that the Administrator has made subject to a separate annual deferral election (including an initial deferral election) on the applicable deferral agreement for such year and, (f) Performance Bonuses. Exclusions from
Compensation include: (a) flexible compensation payments, (b) overtime and shift payments, (c) accrued vacation pay paid after severance from employment, (d) amounts paid for not working (i.e., sickness, accident and leave
payments), (e) seven day operation premiums, (f) lump sum merit increases, (g) merit bonuses, (h) other bonuses, (i) other special payments, fees, awards or incentive compensation allowances, and/or (j) equity
compensation. 
 2.11 “Compensation Committee” means the Compensation Committee of the Board of Directors of Allison
Transmission Holdings, Inc. 
 2.12 “Current Onex Stockholders” means those entities set forth on Schedule 1. 

2.13 “Disability” means a determination by the Administrator that the Participant is either (a) 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, or (b) is, by reason of any medically
determinable physical or mental impairment which can be expected to result in death or last for a continuous period of not less than twelve months, receiving income replacement benefits for a period of not less than three months under an accident
and health plan covering employees of the Employer. A Participant will be considered to have incurred a Disability if he is determined to be totally disabled by the Social Security Administration or the Railroad Retirement Board. 

2.14 “Eligible Employee” means a select group of management or highly compensated employees of the Employer who are classified as
executives in the payroll system, as defined under Sections 201(2), 301(a)(3), and 401(a)(1) of ERISA. Eligible Employees will not include non-resident aliens who receive no earned income (within the meaning of Code Section 911(d)(2)) from the
Employer which constitutes income from sources within the United States within the meaning of Code Section 861(a)(3). 
 2.15
“Employer” means the Plan Sponsor which is authorized to participate in the Plan. 
 2.16 “ERISA” means the
Employee Retirement Income Security Act of 1974, as amended. 
 2.17 “Identification Date” means each December 31, the
date as of which Key Employees are determined. 
 2.18 “Key Employee” means an employee who satisfies the conditions set forth
in Section 9.4. 

  
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 2.19 “Onex Stockholders” means (i) the Current Onex Stockholders and (ii) any
Permitted Transferee of the Current Onex Stockholders that hereafter acquires any shares of stock of the Plan Sponsor. 
 2.20
“Participant” means an Eligible Employee who has elected to make deferrals under the Plan, and/or has received Employer Contributions, and whose Account has not been fully distributed. 

2.21 “Performance Bonus” means the cash portion of the gross annual bonus payable under the Plan Sponsor’s Allison
Transmission, Inc. Career Incentive Compensation Program with respect to any performance period of at least twelve months; provided that such gross bonus constitutes “performance-based compensation” within the meaning of Code
Section 409A(a)(2)(A)(v) and the regulations thereunder. 
 2.22 “Permitted Transferee” means (i) any Affiliate of
the Carlyle Stockholders or the Onex Stockholders (other than the Plan Sponsor and its subsidiaries), and (ii) any director, officer or employee of any Affiliate of the Carlyle Stockholders or the Onex Stockholders (other than the Plan Sponsor
and its subsidiaries). 
 2.23 “Person” means an individual, corporation, company, limited liability company, association,
partnership, joint venture, organization, business, trust or any other entity or organization, including a government or any subdivision or agency thereof. 
 2.24 “Plan” means the Allison Transmission, Inc. Deferred Compensation Plan, including any trust agreement, as adopted by the Compensation Committee of the Board of Directors of Allison
Transmission Holdings, Inc. and as amended from time to time. 
 2.25 “Plan Sponsor” means Allison Transmission, Inc.

 2.26 “Plan Year” means June 22, 2012 through December 31, 2012, and January 1 through December 31,
thereafter. 
 2.27 “Related Employer” means the Employer and (a) any corporation that is a member of a controlled group
of corporations as defined in Code Section 414(b) that includes the Employer or (b) an unincorporated trade or business that is under common control as defined in Code Section 414(c) that includes the Employer. 

2.28 “Retirement” means (a) age 55 and (b) 10 Years of Service. 
 2.29 “Separation from Service” means the date that the Participant dies, retires or otherwise has a termination of employment with respect to all entities comprising the Related Employer.
A Separation from Service does not occur if the Participant is on military leave, sick leave or other bona fide leave of absence if the period of leave does not exceed six months or such longer period during which the Participant’s right to
re-employment is provided by statute or contract. If the period of leave exceeds six 

  
 - 4 -

 
months and the Participant’s right to re-employment is not provided either by statute or contract, a Separation from Service will be deemed to have occurred on the first day following the
six-month period. If the period of leave is due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six months, where the impairment
causes the Participant to be unable to perform the duties of his or her position of employment or any substantially similar position of employment, a 29 month period of absence may be substituted for the six month period. 

Whether a termination of employment has occurred is based on whether the facts and circumstances indicate that the Related Employer and the Participant
reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services the Participant would perform after such date (whether as an employee or as an independent contractor) would permanently
decrease to no more than 20 percent of the average level of bona fide services performed (whether as an employee or an independent contractor) over the immediately preceding 36 month period (or the full period of services to the Related Employer if
the employee has been providing services to the Related Employer for less than 36 months). 
 An independent contractor is considered to have
experienced a Separation from Service with the Related Employer upon the expiration of the contract (or, in the case of more than one contract, all contracts) under which services are performed for the Related Employer if the expiration constitutes
a good-faith and complete termination of the contractual relationship. 
 If a Participant provides services as both an employee and an
independent contractor of the Related Employer, the Participant must separate from service both as an employee and as an independent contractor to be treated as having incurred a Separation from Service. If a Participant ceases providing services as
an independent contractor and begins providing services as an employee, or ceases providing services as an employee and begins providing services as an independent contractor, the Participant will not be considered to have experienced a Separation
from Service until the Participant has ceased providing services in both capacities. 
 All determinations of whether a Separation from Service
has occurred will be made in a manner consistent with Code Section 409A and the final regulations thereunder. 
 2.30 “Specified
Date” means a “specified time (or pursuant to a fixed schedule)” within the meaning of Code Section 409A(a)(2)(A)(iv) and the regulations thereunder. 
 2.31 “Valuation Date” means each business day of the Plan Year that the New York Stock Exchange is open. 

  
 - 5 -

 2.32 “Years of Service” means “Years of Credited Service” as defined under the
Allison Transmission Salaried Employee Retirement Savings Plan. 

  
 - 6 -

 ARTICLE 3 – PARTICIPATION 

 

	3.1	Participation. Only Eligible Employees may become Participants. An Eligible Employee shall become eligible to have amounts credited to his or her Account as of
the date he or she becomes an “executive” as designated under the Plan Sponsor’s payroll system, or the Original Effective Date of the Plan, if later. 

An Eligible Employee shall become a Participant as of the date such amounts are credited to his or her Accounts, provided that he has
completed such forms and made such elections as the Administrator may prescribe as a condition of participation. 
  

	3.2	Termination of Participation. The Administrator may, in its sole discretion, terminate a Participant’s participation in the Plan in a manner consistent with
Code Section 409A, and the regulations thereunder. If a Participant’s participation is terminated before the Participant experiences a Separation from Service, the Participant’s vested Accounts shall be paid in accordance with the
provisions of Article 9. 

  
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 ARTICLE 4 – PARTICIPANT ELECTIONS 

 

	4.1	Deferral Agreement. Each Eligible Employee may elect to defer his Compensation, Bonus, and/or Performance Bonuses separately by executing in writing or
electronically, a deferral agreement in accordance with rules and procedures established by the Administrator and the provisions of this Article 4. Any Performance Bonus and/or other Bonus deferred under the Plan can be deferred from cash
compensation only, and not from equity or other types of compensation. 

 A new deferral agreement must be timely
executed for each Plan Year during which the Eligible Employee desires to defer Compensation. An Eligible Employee who does not timely execute a deferral agreement shall be deemed to have elected zero deferrals of Compensation, Bonus, and/or
Performance Bonus (except as provided below for “Special Election for Performance Bonus Compensation”) for such Plan Year. 
 A deferral agreement may be changed or revoked during the period specified by the Administrator. Except as provided in Section 4.3 and 9.2, a deferral agreement becomes irrevocable at the close of
the specified period. 
  

	4.2	Amount of Deferral. An Eligible Employee may elect to defer his or her Compensation (exclusive of any Bonus or any Performance Bonus), in a minimum amount of 5%
of Compensation, up to a maximum amount of 50% of Compensation, in 1% increments. Bonuses and Performance Bonuses may be deferred in a minimum amount of 5% , up to a maximum amount of 100% of the Performance Bonus and/or Bonus, in 1% increments.

  

	4.3	Timing of Election to Defer. 

 Initial Election. Except as otherwise provided below, an Eligible Employee who is making an initial deferral election, and who is classified or designated as an Eligible Employee
during a Plan Year, may elect to defer Compensation, and Bonus separately otherwise payable during the remainder of such Plan Year in accordance with the rules of this Section 4.3 by executing a deferral agreement within the thirty
(30) day period beginning on the date the employee is classified or designated as an Eligible Employee (or, if earlier, within 30 days after the date on which he or she becomes eligible to participate in any other plan of a Related Employer
that is required to be aggregated with this Plan for purposes of Code Section 409A). 
 Notwithstanding the preceding
provisions, initial deferral elections made prior to June 30, 2012 will be implemented as soon as administratively feasible with respect to Compensation (other than Bonuses) payable on or after September 1, 2012. Initial deferral elections
made prior to June 30, 2012, for Bonuses, will be prorated for the number of days after the election is effective. 

  
 - 8 -

 If a deferral agreement is not elected within this 30 day time period the Eligible Employee
will not be able to elect to defer Compensation, Bonuses and/or Performance Bonuses under the Plan until the next annual deferral election period. 
 If a Bonus is based on a specified performance period that begins before the Eligible Employee executes his initial deferral agreement, the election will be deemed to apply to the portion of such Bonus
equal to the total amount of such Bonus for the performance period multiplied by the ratio of the number of days remaining in the performance period after the election becomes irrevocable and effective over the total number of days in the
performance period. The rules of this paragraph shall not apply unless the Eligible Employee can be treated as initially eligible in accordance with Reg. Sec. 1.409A-2(a)(7). 
 Annual Deferral Election. Each Eligible Employee who desires to defer Compensation and/or Bonus otherwise payable during a Plan Year, must execute a deferral agreement within the
period preceding the Plan Year specified by the Administrator. 
 Special Election for Performance Bonus
Compensation. If the Performance Bonus can be treated as “performance-based compensation” as described in Code Section 409A(a)(4)(B)(iii), the deferral agreement may be executed within the period specified by the
Administrator. This election period, in no event, shall end after the date which is six months prior to the end of the period during which the Performance Bonus is earned; provided the Participant has performed services continuously from the later
of: (a) the beginning of the performance period or, (b) the date the performance criteria are established through the date the Participant executed the deferral agreement. Furthermore, the Compensation must not yet become ‘readily
ascertainable’ within the meaning of Reg. Sec 1.409A-2(a)(8). In addition, if the Compensation qualifies as ‘fiscal year compensation’ within the meaning of Reg. Sec. 1.409A-2(a)(6), the deferral agreement may be entered into not
later than the end of the Employer’s taxable year immediately preceding the first taxable year of the Employer in which any services are performed for which such Compensation is payable. 

 

	4.4	Election of Payment Schedule and Form of Payment. 

 All elections of a payment schedule and a form of payment will be made in accordance with rules and procedures established by the Administrator and the provisions of this Section 4.4. 

Deferrals. At the time an Eligible Employee completes a deferral agreement, the Eligible Employee must separately
elect a “distribution event” and form of distribution designated for deferrals for Compensation, Bonuses and/or Performance Bonuses, as applicable, as of the earliest to occur of the following distribution events: (i) a Specified
Date, in the form of a lump sum, or (ii) Retirement, in the form of a lump sum or quarterly installment payments not to 

  
 - 9 -

 
exceed 5 years. Once installment payments begin, except as otherwise required herein (e.g., Section 9.4) or prohibited by Code Section 409A, the following intervening payment events
will accelerate any remaining installments, to be paid (in the form of a lump sum distribution) in accordance with Section 9.2: (1) death, (2) Disability, or (3) Change in Control. 

Notwithstanding the above and regardless of whether the Participant made different elections of time and/or form of payment at the time of
Separation from Service for purposes of Compensation, Bonuses, and/or Performance Bonuses, but subject to Section 9.5, payment of the remaining vested Account balance of the Participant will automatically occur in the form of a lump sum
payment, in the event of (a) a Separation from Service prior to Retirement or a Specified Date, (b) Disability, or (c) death. See Article 9 for timing of such distributions. Except as otherwise required herein or by Code
Section 409A and the final regulations thereunder, payments will be made as provided under Section 9.2, but in no event later than the time prescribed by Treas. Reg. Section 1.409A-3(d). 

If an Eligible Employee fails to elect a distribution event for Compensation, Bonuses, and/or Performance Bonuses, he shall be deemed to
have elected Separation from Service as the distribution event. If he fails to elect a form of payment, he shall be deemed to have elected a lump sum form of payment. 
 The minimum deferral period for a Specified Date event shall be 3 years for all Participant deferrals. 
 Employer Contributions. Employer Contributions shall be distributed in the form and under the timing provisions that are applicable to deferrals. 

 

	4.5	Election Change. To the extent permitted under Code Section 409A, a Participant may make an election change pursuant to this Section with
respect to each scheduled distribution date and/or payment option previously elected by the Participant with respect to distribution of Compensation, and/or Bonuses, and/or Performance Bonuses. A Participant’s election change pursuant to this
Section shall be not be valid until 12 months after it is filed with the Administrator, and it shall be valid only (a) if it defers the original payment date for at least five years and, (b) if it changes an election for payment at a
specified time or pursuant to a specified schedule, it is made at least 12 months before the original payment date. The distribution election change must be made in accordance with procedures and rules established by the Administrator. The
Participant may, at the same time the date of payment is deferred, change the form of payment but such change in the form of payment may not effect an acceleration of payment in violation of Code Section 409A or the provisions of Reg. Sec.
1.409A-2(b). For purposes of this Section 4.5, a series of installment payments is always treated as a single payment and not as a series of separate payments. 

  
 - 10 -

 ARTICLE 5 – EMPLOYER CONTRIBUTIONS 

 

	5.1	Matching Contributions. The Employer will credit the Participant’s Account with a Matching Contribution in an amount determined by the Compensation
Committee, and at such times determined by the Compensation Committee, in its sole discretion. The Matching Contribution will be treated as allocated to the Participant’s Account at the time specified by the Administrator, in its sole
discretion. 

  

	5.2	Other Employer Contributions. The Employer will credit the Participant’s Account with an additional Employer Contribution in an amount determined by the
Compensation Committee at such times determined by the Compensation Committee, in its sole discretion. The Employer Contribution will be treated as allocated to the Participant’s Account at the time specified by the Administrator, in its sole
discretion. 

  
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 ARTICLE 6 – ACCOUNTS AND CREDITS 

 

	6.1	Establishment of Account. For accounting and computational purposes only, the Administrator will establish and maintain an Account on behalf of each Participant
which will reflect the credits made pursuant to Section 6.2, distributions or withdrawals, along with the earnings, expenses, gains and losses allocated thereto, attributable to actual investments as selected by Participants made with the
amounts in the Account as provided in Article 7. The Administrator will establish and maintain such other records and accounts, as it decides in its discretion to be reasonably required or appropriate to discharge its duties under the Plan.

  

	6.2	Credits to Account. A Participant’s Account will be credited for each Plan Year with: (a) the amount of his elective deferrals under Section 4.1
at the time the amount subject to the deferral election would otherwise have been payable to the Participant; and, (b) the amount of Employer Contributions treated as allocated on his behalf under Article 5. 

  
 - 12 -

 ARTICLE 7 – INVESTMENT OF CONTRIBUTIONS 

 

	7.1	Investment Options. The amount credited to each Account shall be invested in the investment options designated for this purpose by the Allison Transmission, Inc.
Investment Committee. 

  

	7.2	Adjustment of Accounts. The amount credited to each Account shall be adjusted for hypothetical investment earnings, expenses, gains or losses in an amount equal
to the earnings, expenses, gains or losses attributable to the investment options selected by the Participant or Beneficiary from among the investment options provided in Section 7.1. A Participant (or the Participant’s Beneficiary after
the death of the Participant) may, in accordance with rules and procedures established by the Administrator, select the investments from among the options provided in Section 7.1 to be used for the purpose of calculating future hypothetical
investment adjustments to the Account or to future credits to the Account under Section 6.2, effective as of the Valuation Date coincident with or next following notice to the Administrator. Each Account shall be adjusted as of each Valuation
Date to reflect: (a) the hypothetical earnings, expenses, gains and losses described above; (b) amounts credited pursuant to Section 6.2; and (c) distributions or withdrawals. In addition, each Account may be adjusted for its
allocable share of the hypothetical costs and expenses associated with the maintenance of the hypothetical investments provided in Section 7.1. 

  
 - 13 -

 ARTICLE 8 – RIGHT TO BENEFITS 

 

	8.1	Vesting. 

Deferrals. A Participant, at all times, has a 100% nonforfeitable interest in the amounts credited to his Account
attributable to his elective deferrals made in accordance with Section 4.1. 
 Employer Contributions.
A Participant’s right to the amounts credited to his Account attributable to Matching Contributions and Other Employer Contributions made in accordance with Article 5, shall be vested at 100% after three Years of Service. 

Retention or Other Special Bonuses or Other Employer Contributions Notwithstanding the preceding provisions, the
Administrator may allocate Other Employer Contributions (such as a retention bonus) to the Plan on the condition that the Participant satisfy a separate vesting or service schedule (e.g., determined without regard to prior Years of Service) in
addition to or in lieu of the vesting requirement referenced in the preceding sentence. In such instance, such additional vesting or service shall govern the Participant’s right to such allocations. The form and timing of the distribution will
be as set forth in the award agreement announcing such Other Employer Contribution; provided, however, that if the form and timing of the payment is not provided in the award agreement or such timing does not comply with Code Section 409A, then
such Other Employer Contribution shall be distributed in the form of a lump sum payment upon the earlier of (a) death, (b) Disability or (c) Separation from Service, subject to Section 9.5. See Article 9 for timing of such
distributions 
 Notwithstanding the provisions above in Section 8.1 under Employer Contributions, and regardless of
the designation of timing and/or the form of payment set forth in the award agreement, a Participant’s interest in his Account (including deferrals and Employer Contributions), will automatically become 100% vested, and will be paid out in the
form of a lump sum payment upon the earlier of: (a) the Participant’s death (see Section 8.2), (b) in the event of a Change in Control (see Section 9.5), or Disability (see Section 8.2). 

Upon a Separation from Service, the Participant shall forfeit the nonvested portion of his Account, unless otherwise provided by the
Compensation Committee. 
  

	8.2	 Death or Disability. A Participant’s nonvested interest in his Account will be automatically 100% vested upon the death or Disability of
the Participant, and payment of the vested Account balance will occur upon the Participant’s death or Disability in a lump sum payment, subject to the timing under Section 9.2, regardless of whether the Participant had made different
elections of time and/or form of payment (even to the extent installment payments were previously elected or were previously in pay status). The determination of whether a 

  
 - 14 -

	 	
Participant has incurred a Disability shall be made by the Administrator, in its sole discretion, in a manner consistent with the requirements of Code Section 409A. 

In the event of a death, Participant may designate a Beneficiary or Beneficiaries, or change any prior designation of Beneficiary or
Beneficiaries in accordance with rules and procedures established by the Administrator. A copy of the death notice or other sufficient documentation must be filed with and approved by the Administrator. If upon the death of the Participant there is,
in the opinion of the Administrator, no designated Beneficiary for part or all of the Participant’s vested Account, such amount will be paid to the deceased Participant’s spouse, but if none, to the deceased Participant’s estate (such
estate shall be deemed to be the Beneficiary for purposes of the Plan) in accordance with the provisions of Article 9. 

  
 - 15 -

 ARTICLE 9 – DISTRIBUTION OF BENEFITS 

 

	9.1	Amount of Benefits. The vested amount credited to a Participant’s Account as determined under Articles 6, 7 and 8 shall determine and constitute the basis
for the value of benefits payable to the Participant under the Plan. 

  

	9.2	 Method and Timing of Distributions. Except as otherwise provided in this Article 9, distributions under the Plan shall be made in accordance
with the elections made or deemed made by the Participant under Article 4. There shall be a 6 month delay from the date of Separation from Service or Retirement, in the event of Separation from Service or Retirement (regardless of whether it is
required under Section 9.4), with payments to commence as soon as administratively feasible within the month following the 6th month following the distribution event, but in no event later than the time prescribed by Treasury Regulation
Section 1.409A-3(d). All other distributions under the Plan shall commence as soon as administratively feasible following the distribution event, but in no event later than the time prescribed by Treasury Regulation Section 1.409A-3(d).

  

	9.3	Cashouts Of Amounts Not Exceeding Stated Limit. If the vested amount credited to the Participant’s Account does not exceed $5,000.00 at the time he incurs a
Separation from Service for any reason, the Employer shall distribute such amount to the Participant in a single lump sum cash payment following such Separation from Service, as soon as administratively feasible following the distribution event, but
in no event later than the time prescribed by Treasury Regulation Section 1.409A-3(d). 

  

	9.4	Required Delay in Payment to Key Employees. Except as otherwise provided in this Section, a distribution made on account of Separation from Service (or
Retirement, if applicable) to a Participant who is a Key Employee as of the date of his Separation from Service (or Retirement, if applicable) shall not be made before the date which is 6 months after the Separation from Service (or Retirement, if
applicable). If payments to a Key Employee are delayed in accordance with this Section, the payments to which the Key Employee would otherwise have been entitled during the 6 month period shall be accumulated and paid in a single lump sum at the
time specified in Section 9.2 after the 6 month period elapses. 

  

	 	(a)	A Participant is treated as a Key Employee if (i) he is employed by a Related Employer any of whose stock is publicly traded on an established securities market,
and (ii) he satisfies the requirements of Code Section 416(i)(1)(A)(i), (ii) or (iii), determined without regard to Code Section 416(i)(5), at any time during the 12 month period ending on the Identification Date.

  

	 	(b)	A Participant who is a Key Employee on an Identification Date shall be treated as a Key Employee for purposes of the 6 month delay in distributions for the 12 month
period beginning on the first day of the fourth month following the Identification Date. 

  
 - 16 -

	 	(c)	The Plan Administrator may elect to apply an alternative method to identify Participants who will be treated as Key Employees for purposes of the 6 month delay in
distributions if the method satisfies each of the following requirements. The alternative method is reasonably designed to include all Key Employees, is an objectively determinable standard providing no direct or indirect election to any Participant
regarding its application, and results in either all Key Employees or no more than 200 Key Employees being identified in the class as of any date. Use of an alternative method that satisfies the requirements of this Section 9.4(c ) will not be
treated as a change in the time and form of payment for purposes of Reg. Sec. 1.409A-2(b). 

  

	 	(d)	The 6 month delay does not apply to any other distribution events set forth in this Plan, including payments described in Section 9.7(a),(b) or (d).

  

	9.5	Change in Control. In the event of a Change in Control, a Participant’s vested interest in his Account, including deferrals and Employer Contributions, will
automatically become 100% vested, and payment of the vested Account balance will occur upon the Change in Control in a lump sum payment (even to the extent installment payments were previously elected or were previously in pay status), subject to
the timing of Section 9.2 and any required delay under Section 9.4. In addition, the Plan Sponsor reserves the right to terminate the Plan and distribute all vested amounts credited to Participant Accounts upon a Change in Control.

 A Change in Control, for purposes of the Plan, will occur upon a change in the ownership of the Plan Sponsor, a
change in the effective control of the Plan Sponsor, or a change in the ownership of a substantial portion of the assets of the Plan Sponsor; provided, that a transaction shall not be a Change in Control for purposes of the Plan if a change in the
ownership of the Plan Sponsor, a change in the effective control of the Plan Sponsor, or a change in the ownership of a substantial portion of the assets of the Plan Sponsor results from the acquisition of Stock or assets by one or more Carlyle
Stockholders or Onex Stockholders. The Plan Sponsor, for this purpose, includes any corporation identified in this Section. 

Whether a Change in Control has occurred will be determined by the Administrator in accordance with the rules and definitions set forth in
this Section and in a manner consistent with the provisions of Code Section 409A and the final regulations issued thereunder. A distribution to the Participant will be treated as occurring upon a Change in Control if the Plan Sponsor terminates
the Plan in accordance with Section 10.2 and distributes the Participant’s benefits within 12 months of a Change in Control as provided in Section 10.2. 

  
 - 17 -

	 	(a)	Relevant Corporations. To constitute a Change in Control for purposes of the Plan, the event must relate to (i) the corporation for whom the Participant is
performing services at the time of the Change in Control, (ii) the corporation that is liable for the payment of the Participant’s benefits under the Plan (or all corporations liable if more than one corporation is liable) but only if
either the deferred compensation is attributable to the performance of services by the Participant for such corporation (or corporations) or there is a bona fide business purpose for such corporation (or corporations) to be liable for such payment
and, in either case, no significant purpose of making such corporation (or corporations) liable for such payment is the avoidance of federal income tax, or (iii) a corporation that is a majority shareholder of a corporation identified in
(i) or (ii), or any corporation in a chain of corporations in which each corporation is a majority shareholder of another corporation in the chain, ending in a corporation identified in (i) or (ii). A majority shareholder is defined as a
shareholder owning more than fifty percent (50%) of the total fair market value and voting power of such corporation. 

  

	 	(b)	Stock Ownership. Code Section 318(a) applies for purposes of determining stock ownership. Stock underlying a vested option is considered owned by the
individual who owns the vested option (and the stock underlying an unvested option is not considered owned by the individual who holds the unvested option). If, however, a vested option is exercisable for stock that is not substantially vested (as
defined by Treasury Regulation Section 1.83-3(b) and (j)) the stock underlying the option is not treated as owned by the individual who holds the option. 

 

	 	(c)	 Change in the Ownership of a Corporation. A change in the ownership of a corporation occurs on the date that any one person or more than one
person acting as a group, acquires ownership of stock of the corporation that, together with stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of such
corporation. If any one person or more than one person acting as a group is considered to own more than fifty percent (50%) of the total fair market value or total voting power of the stock of a corporation, the acquisition of additional stock
by the same person or persons is not considered to cause a change in the ownership of the corporation (or to cause a change in the effective control of the corporation as discussed below in Section 9.5(d)). An increase in the percentage of
stock owned by any one person, or persons acting as a group, as a result of a transaction in which the corporation acquires its stock in exchange for property will be treated as an acquisition of stock. Section 9.5(c) applies only when there is
a transfer of stock of a corporation (or issuance of stock of a corporation) and stock in such corporation remains outstanding after the transaction. For purposes of this Section 9.5(c), persons will not be considered to be acting as a group
solely because they purchase or own stock of the same corporation at the 

  
 - 18 -

	 	
same time or as a result of a public offering. Persons will, however, be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase
or acquisition of stock, or similar business transaction with the corporation. If a person, including an entity, owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such
shareholder is considered to be acting as a group with other shareholders in a corporation only with respect to ownership in that corporation prior to the transaction giving rise to the change and not with respect to the ownership interest in the
other corporation. 

  

	 	(d)	Change in the effective control of a corporation. A change in the effective control of a corporation occurs on the date that either (i) any one person, or
more than one person acting as a group, acquires (or has acquired during the twelve month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the corporation possessing thirty percent
(30%) or more of the total voting power of the stock of such corporation, or (ii) a majority of members of the corporation’s board of directors is replaced during any twelve month period by directors whose appointment or election is
not endorsed by a majority of the members of the corporation’s board of directors prior to the date of the appointment or election, provided that for purposes of this paragraph (ii), the term corporation refers solely to the relevant
corporation identified in Section 9.5(a) for which no other corporation is a majority shareholder for purposes of Section 9.5(a). In the absence of an event described in Section 9.5(d)(i) or (ii), a change in the effective control of
a corporation will not have occurred. A change in effective control may also occur in any transaction in which either of the two corporations involved in the transaction has a change in the ownership of such corporation as described in
Section 9.5(c) or a change in the ownership of a substantial portion of the assets of such corporation as described in Section 9.5(e). If any one person, or more than one person acting as a group, is considered to effectively control a
corporation within the meaning of this Section 9.5(d), the acquisition of additional control of the corporation by the same person or persons is not considered to cause a change in the effective control of the corporation or to cause a change
in the ownership of the corporation within the meaning of Section 9.7(c). For purposes of this Section 9.5(d), persons will or will not be considered to be acting as a group in accordance with rules similar to those set forth in
Section 9.7(c) with the following exception. If a person, including an entity, owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to
be acting as a group with other shareholders in a corporation only with respect to the ownership in that corporation prior to the transaction giving rise to the change and not with respect to the ownership interest in the other corporation.

  
 - 19 -

	 	(e)	Change in the ownership of a substantial portion of a corporation’s assets. A change in the ownership of a substantial portion of a corporation’s
assets occurs on the date that any one person, or more than one person acting as a group (as determined in accordance with rules similar to those set forth in Section 9.5(d)), acquires (or has acquired during the twelve month period ending on
the date of the most recent acquisition by such person or persons) assets from the corporation that have a total gross fair market value equal to or more than forty percent (40%) of the total gross fair market value of all of the assets of the
corporation immediately prior to such acquisition or acquisitions. For this purpose, gross fair market value means the value of the assets of the corporation or the value of the assets being disposed of determined without regard to any liabilities
associated with such assets. There is no Change in Control event under this Section 9.5(e) when there is a transfer to an entity that is controlled by the shareholders of the transferring corporation immediately after the transfer. A transfer
of assets by a corporation is not treated as a change in ownership of such assets if the assets are transferred to (i) a shareholder of the corporation (immediately before the asset transfer) in exchange for or with respect to its stock,
(ii) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the corporation, (iii) a person, or more than one person acting as a group, that owns, directly or
indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the corporation, or (iv) an entity, at least fifty (50%) of the total value or voting power of which is owned, directly or
indirectly, by a person described in Section 9.5(e)(iii). For purposes of the foregoing, and except as otherwise provided, a person’s status is determined immediately after the transfer of assets. 

 

	9.6	Permissible Delays in Payment. Distributions may be delayed beyond the date payment would otherwise occur in accordance with the provisions of Articles 8 and 9
in any of the following circumstances as long as the Employer treats all payments to similarly situated Participants on a reasonably consistent basis. 

  

	 	(a)	The Employer may delay payment if it reasonably anticipates that its deduction with respect to such payment would be limited or eliminated by the application of Code
Section 162(m). Payment must be made during the Participant’s first taxable year in which the Employer reasonably anticipates, or should reasonably anticipate, that if the payment is made during such year the deduction of such payment will
not be barred by the application of Code Section 162(m) or during the period beginning with the Participant’s Separation from Service and ending on the later of the last day of the Employer’s taxable year in which the Participant
Separates from Service or, the 15th day of the third month following the Participant’s Separation from Service. If a scheduled payment to a Participant is delayed in accordance with this Section 9.6(a), all scheduled payments to the
Participant that could be delayed in accordance with this Section 9.6(a) will also be delayed. 

  
 - 20 -

	 	(b)	The Employer may also delay payment if it reasonably anticipates that the making of the payment will violate federal securities laws or other applicable laws provided
payment is made at the earliest date on which the Employer reasonably anticipates that the making of the payment will not cause such violation. 

  

	 	(c)	The Employer reserves the right to amend the Plan to provide for a delay in payment upon such other events and conditions as the Secretary of the Treasury may prescribe
in generally applicable guidance published in the Internal Revenue Bulletin. 

  

	9.7	Permitted Acceleration of Payment. The Employer may permit acceleration of the time or schedule of any payment or amount scheduled to be paid pursuant to a
payment under the Plan provided such acceleration would be permitted by the provisions of Reg. Sec. 1.409A-3(j)(4), including the following events: 

  

	 	(a)	Domestic Relations Order. A payment may be accelerated if such payment is made to an alternate payee pursuant to and following the receipt and qualification of a
domestic relations order as defined in Code Section 414(p). 

  

	 	(b)	Compliance with Ethics Agreements and Legal Requirements. A payment may be accelerated as may be necessary to comply with ethics agreements with the Federal
government or as may be reasonably necessary to avoid the violation of Federal, state, local or foreign ethics law or conflicts of laws, in accordance with the requirements of Code Section 409A. 

 

	 	(c)	De Minimis Amounts. A payment will be accelerated if (i) the amount of the payment is not greater than the applicable dollar amount under Code
Section 402(g)(1)(B), (ii) at the time the payment is made the amount constitutes the Participant’s entire interest under the Plan and all other plans that are aggregated with the Plan under Reg. Sec. 1.409A-1(c)(2).

  

	 	(d)	FICA Tax. A payment may be accelerated to the extent required to pay the Federal Insurance Contributions Act tax imposed under Code Sections 3101, 3121(a) and
3121(v)(2) of the Code with respect to compensation deferred under the Plan (the “FICA Amount”). Additionally, a payment may be accelerated to pay the income tax on wages imposed under Code Section 3401 of the Code on the FICA Amount
and to pay the additional income tax at source on wages attributable to the pyramiding Code Section 3401 wages and taxes. The total payment under this subsection (d) may not exceed the aggregate of the FICA Amount and the income tax
withholding related to the FICA Amount. 

  
 - 21 -

	 	(e)	Section 409A Additional Tax. A payment may be accelerated if the Plan fails to meet the requirements of Code Section 409A; provided that such payment
may not exceed the amount required to be included in income as a result of the failure to comply with the requirements of Code Section 409A. 

  

	 	(f)	Offset. A payment may be accelerated in the Employer’s discretion as satisfaction of a debt of the Participant to the Employer, where such debt is incurred
in the ordinary course of the service relationship between the Participant and the Employer, the entire amount of the reduction in any of the Employer’s taxable years does not exceed $5,000, and the reduction is made at the same time and in the
same amount as the debt otherwise would have been due and collected from the Participant. 

  

	 	(g)	Other Events. A payment may be accelerated in the Administrator’s discretion in connection with such other events and conditions as permitted by Code
Section 409A. 

  
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 ARTICLE 10 – AMENDMENT AND TERMINATION 

 

	10.1	Amendment. The Plan shall continue in force with respect to any Participant until the completion of any payments due hereunder and shall be binding upon any
successor to the Employer. The Plan Sponsor reserves the right, in its sole discretion, to amend or modify the Plan in whole or in part, at any time, by action of the Vice President, Human Resources, and the Director of Employee Benefits and Pension
Administration. Such amendment or modification shall be in writing and may be retroactive if and to the extent such action is appropriate in light of government regulations or other legal requirements. Notwithstanding the above, any amendment or
modification that materially changes the benefits provided under the Plan or increases the costs of the Plan beyond that amount budgeted by the Plan Sponsor for the Plan Year, shall be made by the Compensation Committee. The Compensation Committee
will also determine the amount of Matching Contributions and other Employer Contributions in its sole discretion. If an amendment is to provide that no additional benefits shall accrue with respect to any Participant under the Plan, no such
amendment shall (a) deprive any Participant or Beneficiary of any benefit that accrued under the Plan before the adoption of such amendment; (b) result in an acceleration of benefit payments in violation of Code Section 409A and the
guidance thereunder, or (c) result in any other violation of Section 409A or the guidance thereunder. 

  

	10.2	Plan Termination Following Change in Control or Corporate Dissolution. As set forth in Section 9.5, the Compensation Committee reserves the right to
terminate the Plan and distribute all amounts credited to all Participant Accounts within the 30 days preceding or the 12 months following a Change in Control as determined in accordance with the rules set forth in Section 9.5. For this
purpose, the Plan will be treated as terminated only if all agreements, methods, programs and other arrangements sponsored by the Related Employer immediately after the Change in Control which are treated as a single plan under Reg. Sec.
1.409A-1(c)(2) are also terminated so that all participants under the Plan and all similar arrangements are required to receive all amounts deferred under the terminated arrangements within 12 months of the date the Compensation Committee
irrevocably takes all necessary action to terminate the arrangements. In addition, the Compensation Committee reserves the right to terminate the Plan within twelve months of a corporate dissolution taxed under Code Section 331 or with the
approval of a bankruptcy court pursuant to 11 U. S. C. Section 503(b)(1)(A) provided that amounts deferred under the Plan are included in the gross incomes of Participants in the latest of (a) the calendar year in which the termination and
liquidation occurs, (b) the first calendar year in which the amount is no longer subject to a substantial risk of forfeiture, or (c) the first calendar year in which payment is administratively practicable. 

 

	10.3	 Other Plan Terminations. The Compensation Committee retains the discretion to terminate the Plan if (a) all arrangements sponsored by the
Plan Sponsor that 

  
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would be aggregated with any terminated arrangement under Code Section 409A and Reg. Sec. 1.409A-1(c)(2) are terminated, (b) no payments other than payments that would be payable under
the terms of the arrangements if the termination had not occurred are made within 12 months of the termination of the arrangements, (c) all payments are made within 24 months of the date the Compensation Committee takes all necessary action to
irrevocably terminate and liquidate the arrangements, (d) the Plan Sponsor does not adopt a new arrangement that would be aggregated with any terminated arrangement under Code Section 409A and the regulations thereunder at any time within
the 3 year period following the date of termination of the arrangement, and (e) the termination does not occur proximate to a downturn in the financial health of the Plan sponsor. The Compensation Committee also reserves the right to amend the
Plan to provide that termination of the Plan will occur under such conditions and events as may be prescribed by the Secretary of the Treasury in generally applicable guidance published in the Internal Revenue Bulletin. 

  
 - 24 -

 ARTICLE 11 – THE TRUST 

 

	11.1	Establishment of Trust. The Plan Sponsor may but is not required to establish a trust to hold amounts which the Plan Sponsor may contribute from time to time to
correspond to some or all amounts credited to Participants under Section 6.2. In the event that the Plan Sponsor wishes to establish a trust to provide a source of funds for the payment of Plan benefits, any such trust shall be constructed to
constitute an unfunded arrangement that does not affect the status of the Plan as an unfunded plan for purposes of Title I of ERISA and the Code. 

  

	11.2	Rabbi Trust. Any trust established by the Plan Sponsor shall be between the Plan Sponsor and a trustee pursuant to a separate written agreement under which
assets are held, administered and managed, subject to the claims of the Plan Sponsor’s creditors in the event of the Plan Sponsor’s insolvency. The trust is intended to be treated as a rabbi trust in accordance with existing guidance of
the Internal Revenue Service, and the establishment of the trust shall not cause the Participant to realize current income on amounts contributed thereto. The Plan Sponsor must notify the trustee in the event of a bankruptcy or insolvency.

  

	11.3	Investment of Trust Funds. Any amounts contributed to the trust by the Plan Sponsor shall be invested by the trustee in accordance with the provisions of the
trust and the instructions of the Administrator. Trust investments need not reflect the hypothetical investments selected by Participants under Section 7.1 for the purpose of adjusting Accounts, and the earnings or investment results of the
trust need not affect the hypothetical investment adjustments to Participant Accounts under the Plan. 

  
 - 25 -

 ARTICLE 12 – PLAN ADMINISTRATION 

 

	12.1	Powers and Responsibilities of the Administrator. The Administrator has the full power and the full responsibility to administer the Plan in all of its details,
subject, however, to the applicable requirements of ERISA. The Administrator’s powers and responsibilities include, but are not limited to, the following: 

 

	 	(a)	To make and enforce such rules and procedures as it deems necessary or proper for the efficient administration of the Plan; 

 

	 	(b)	To interpret the Plan, its interpretation thereof to be final, except as provided in Section 12.2, on all persons claiming benefits under the Plan;

  

	 	(c)	To decide all questions concerning the Plan and the eligibility of any person to participate in the Plan; 

 

	 	(d)	To administer the claims and review procedures specified in Section 12.2; 

 

	 	(e)	To compute the amount of benefits which will be payable to any Participant, former Participant or Beneficiary in accordance with the provisions of the Plan;

  

	 	(f)	To determine the person or persons to whom such benefits will be paid; 

  

	 	(g)	To authorize the payment of benefits; 

  

	 	(h)	To comply with the reporting and disclosure requirements of Part 1 of Subtitle B of Title I of ERISA, as applicable; 

 

	 	(i)	To appoint such agents, counsel, accountants, and consultants as may be required to assist in administering the Plan; 

 

	 	(j)	By written instrument, to allocate and delegate its responsibilities, including the delegation to a committee to administer the Plan. 

 

	12.2	Claims and Review Procedures. 

  

	 	(a)	Claims Procedure. 

 If any
person believes he is being denied any rights or benefits under the Plan, such person may file a claim in writing with the Administrator. If any such claim is wholly or partially denied, the Administrator will notify such person of its decision in
writing. Such notification will contain (i) specific reasons for the denial, (ii) specific reference to pertinent Plan provisions, (iii) a description of any additional material or information necessary for such person to perfect such
claim and an explanation of why such material or information is necessary, and (iv) a description of the Plan’s review procedures and the time limits applicable to such procedures, 

  
 - 26 -

 
including a statement of the person’s right to bring a civil action following an adverse decision on review. Such notification will be given within 90 days (45 days in the case of a claim
regarding Disability) after the claim is received by the Administrator. The Administrator may extend the period for providing the notification by 90 days (30 days in the case of a claim regarding Disability) if special circumstances require an
extension of time for processing the claim and if written notice of such extension and circumstance is given to such person within the initial 90 day period (45 day period in the case of a claim regarding Disability). If such notification is not
given within such period, the claim will be considered denied as of the last day of such period and such person may request a review of his claim. 
  

	 	(b)	Review Procedure. 

 Within 60
days (180 days in the case of a claim regarding Disability) after the date on which a person receives a written notification of denial of claim (or, if written notification is not provided, within 60 days (180 days in the case of a claim regarding
Disability) of the date denial is considered to have occurred), such person (or his duly authorized representative) may (i) file a written request with the Administrator for a review of his denied claim and of pertinent documents and
(ii) submit written issues and comments to the Administrator. The Administrator will notify such person of its decision in writing. Such notification will be written in a manner calculated to be understood by such person and will contain
specific reasons for the decision as well as specific references to pertinent Plan provisions. The notification will explain that the person is entitled to receive, upon request and free of charge, reasonable access to and copies of all pertinent
documents and has the right to bring a civil action following an adverse decision on review. The decision on review will be made within 60 days (45 days in the case of a claim regarding Disability). The Administrator may extend the period for making
the decision on review by 60 days (45 days in the case of a claim regarding Disability) if special circumstances require an extension of time for processing the request such as an election by the Administrator to hold a hearing, and if written
notice of such extension and circumstances is given to such person within the initial 60-day period (45 days in the case of a claim regarding Disability). If the decision on review is not made within such period, the claim will be considered denied.

  

	 	(c)	Exhaustion of Claims Procedures and Right to Bring Legal Claim. 

 No action at law or equity shall be brought more than one (1) year after the Administrator’s affirmation of a denial of a claim, or, if earlier, more than four (4) years after the facts or
events giving rising to the claimant’s allegation(s) or claim(s) first occurred. 

  
 - 27 -

	12.3	Plan Administrative Costs. All reasonable costs and expenses (including legal, accounting, and employee communication fees) incurred by the Administrator in
administering the Plan shall be paid by the Plan to the extent not paid by the Employer. 

  

	12.4	Indemnification. To the maximum extent permitted by applicable law, the Employer shall indemnify and hold harmless the Administrator, the Compensation Committee,
any person serving on the Compensation Committee or a committee that serves as Administrator, and any officer, employee, or director of an Employer to whom any duty or power relating to the administration of the Plan has been properly delegated,
from and against any cost, expense, or liability arising out of any act or omission in connection with the Plan, unless arising out of such person’s own fraud or bad faith. 

  
 - 28 -

 ARTICLE 13 – MISCELLANEOUS 

 

	13.1	Unsecured General Creditor of the Employer. Participants and their Beneficiaries, heirs, successors and assigns shall have no legal or equitable rights,
interests or claims in any property or assets of the Employer. For purposes of the payment of benefits under the Plan, any and all of the Employer’s assets shall be, and shall remain, the general, unpledged, unrestricted assets of the Employer.
Each Employer’s obligation under the Plan shall be merely that of an unfunded and unsecured promise to pay money in the future. 

  

	13.2	Employer’s Liability. Each Employer’s liability for the payment of benefits under the Plan shall be defined only by the Plan and by the deferral
agreements entered into between a Participant and the Employer. An Employer shall have no obligation or liability to a Participant under the Plan except as provided by the Plan and a deferral agreement or agreements. An Employer shall have no
liability to Participants employed by other Employers. 

  

	13.3	Limitation of Rights. Neither the establishment of the Plan, nor any amendment thereof, nor the creation of any fund or account, nor the payment of any benefits,
will be construed as giving to the Participant or any other person any legal or equitable right against the Employer, the Plan or the Administrator, except as provided herein; and in no event will the terms of employment or service of the
Participant be modified or in any way affected hereby. 

  

	13.4	Anti-Assignment. Except as may be necessary to fulfill a domestic relations order within the meaning of Code Section 414(p), none of the benefits or rights
of a Participant or any Beneficiary of a Participant shall be subject to the claim of any creditor. In particular, to the fullest extent permitted by law, all such benefits and rights shall be free from attachment, garnishment, or any other legal or
equitable process available to any creditor of the Participant and his or her Beneficiary. Neither the Participant nor his or her Beneficiary shall have the right to alienate, anticipate, commute, pledge, encumber, or assign any of the payments
which he or she may expect to receive, contingently or otherwise, under the Plan, except the right to designate a Beneficiary to receive death benefits provided hereunder. Notwithstanding the preceding, the benefit payable from a Participant’s
Account may be reduced, at the discretion of the Administrator, to satisfy any debt or liability to the Employer. 

  

	13.5	 Facility of Payment. If the Administrator determines, on the basis of medical reports or other evidence satisfactory to the Administrator, that
the recipient of any benefit payments under the Plan is incapable of handling his affairs by reason of minority, illness, infirmity or other incapacity, the Administrator may direct the Employer to disburse such payments to a person or institution
designated by a court which has jurisdiction over such recipient or a person or institution otherwise having the legal authority under State law for the care and control of such recipient. The receipt by such person or institution of any such

  
 - 29 -

	 	
payments therefore, and any such payment to the extent thereof, shall discharge the liability of the Employer, the Plan and the Administrator for the payment of benefits hereunder to such
recipient. 

  

	13.6	Notices. Any notice or other communication to the Employer or Administrator in connection with the Plan shall be deemed delivered in writing if addressed to the
Plan Sponsor at the address specified by the Plan Sponsor and if either actually delivered at said address or, in the case or a letter, 5 business days shall have elapsed after the same shall have been deposited in the United States mails,
first-class postage prepaid and registered or certified. 

  

	13.7	Tax Withholding. If the Employer concludes that tax is owing with respect to any deferral or payment hereunder, the Employer shall withhold such amounts from any
payments due the Participant or from amounts deferred, as permitted by law, or otherwise make appropriate arrangements with the Participant or his Beneficiary for satisfaction of such obligation. Tax, for purposes of this Section 13.7 means any
federal, state, local or any other governmental income tax, employment or payroll tax, excise tax, or any other tax or assessment owing with respect to amounts deferred, any earnings thereon, and any payments made to Participants under the Plan.

  

	13.8	Recoupment. Notwithstanding any provision herein to the contrary, the portion of any Accounts maintained under this Plan that are attributable to Employer
Contributions and any and all payments made or required to be made and pursuant to the Plan that are attributable to Employer Contributions shall be subject to repayment to the Plan Sponsor by the Participant or former Participant (and the
successors, assigns, heirs, estate and personal representative of the Participant or former Participant) pursuant to the terms of any clawback, recoupment or other policy implemented from time to time by the Board or its designee, as amended (the
“Recoupment Policy”). As additional consideration for any credits of Employer Contributions hereunder and any payments attributable thereto to any Participant, each Participant agrees that he/she is bound by and subject to the Recoupment
Policy as in effect at any time and from time to time, as amended (whether before, at or after crediting of such Employer Contributions to such Participant’s Account). 

 

	13.9	Successors. The provisions of the Plan shall bind and inure to the benefit of the Plan Sponsor, the Employer and their successors and assigns and the Participant
and the Participant’s designated Beneficiaries. 

  

	13.10	Disclaimer. It is the Plan Sponsor’s intention that the Plan comply with the requirements of Code Section 409A. Neither the Plan Sponsor nor the
Employer shall have any liability to any Participant should any provision of the Plan fail to satisfy the requirements of Code Section 409A. 

  

	13.11	Governing Law. The Plan will be construed, administered and enforced according to the laws of the State of Indiana. 

  
 - 30 -

	13.12	Other Plans. Amounts and benefits paid under the Plan shall not be considered compensation to the Participant for purposes of computing any benefits to which he
may be entitled under any other pension or retirement plan maintained by the Employer. 

  
 - 31 -

 SCHEDULE 1 
 CURRENT ONEX STOCKHOLDERS 
 Onex Partners II LP 

Onex Advisor III LLC 
 Allison Executive
Investco LLC 
 Onex Partners II GP LP 

Onex American Holdings II LLC 
 Onex US
Principals LP 
 Onex Allison Co-Invest LP 
 Onex Advisor Subco II LLC 
 OAH Wind LLC 
 Allison Executive Investco II LLC 
 Onex Advisor Subco LLC 

Onex American Holdings Subco LLC 
 Onex Allison
Holding Limited S.á.R.L. 
 1597257 Ontario Inc.

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