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Exhibit 10.27 (;F H[YZKWP(; ([KLELW $0(1'('$1'5(67$7(' &+$1*(2)&21752/(03/2<0(17$*5((0(17 AGREEMENT by and between BorgWarner Inc., a Delaware corporation (the “Company”) and WKH “Executive”) dated as of the GD\RI The Board of Directors of the Company (the “Board”), has determined that it is in the best interests of the &RPSDQ\DQGLWVVWRFNKROGHUVWRDVVXUHWKDWWKH&RPSDQ\ZLOOKDYHWKHFRQWLQXHGGHGLFDWLRQRIWKH([HFXWLYH QRWZLWKVWDQGLQJWKHSRVVLELOLW\WKUHDWRURFFXUUHQFHRID&KDQJHRI&RQWURO DVGHILQHGEHORZ RIWKH&RPSDQ\7KH %RDUGEHOLHYHVLWLVLPSHUDWLYHWRGLPLQLVKWKHLQHYLWDEOHGLVWUDFWLRQRIWKH([HFXWLYHE\YLUWXHRIWKHSHUVRQDO uncertainties and risks created by a pending or threatened Change of Control and to encourage the Executive’s full DWWHQWLRQDQGGHGLFDWLRQWRWKH&RPSDQ\FXUUHQWO\DQGLQWKHHYHQWRIDQ\WKUHDWHQHGRUSHQGLQJ&KDQJHRI&RQWURO DQGWRSURYLGHWKH([HFXWLYHZLWKFRPSHQVDWLRQDQGEHQHILWVDUUDQJHPHQWVXSRQD&KDQJHRI&RQWUROZKLFKHQVXUH WKDWWKHFRPSHQVDWLRQDQGEHQHILWVH[SHFWDWLRQVRIWKH([HFXWLYHZLOOEHVDWLVILHGDQGZKLFKDUHFRPSHWLWLYHZLWK WKRVHRIRWKHUFRUSRUDWLRQV7KHUHIRUHLQRUGHUWRDFFRPSOLVKWKHVHREMHFWLYHVDQGLQFRQVLGHUDWLRQRIWKH Executive’s covenants in Section WKH%RDUGKDVFDXVHGWKH&RPSDQ\WRHQWHULQWRWKLV$JUHHPHQW 12:7+(5()25(,7,6+(5(%<$*5(('$6)2//2:6 &HUWDLQ'HILQLWLRQV D The “Effective Date” shall mean the first date during the Change of Control Period DVGHILQHGLQ6HFWLRQ E RQZKLFKD&KDQJHRI&RQWURO DVGHILQHGLQ6HFWLRQ RFFXUV$Q\WKLQJLQWKLV $JUHHPHQWWRWKHFRQWUDU\QRWZLWKVWDQGLQJLI L the Executive’s employment with the Company is terminated by WKH&RPSDQ\ LL WKH'DWHRI7HUPLQDWLRQLVSULRUWRWKHGDWHRQZKLFKD&KDQJHRI&RQWURORFFXUVDQG LLL LWLV UHDVRQDEO\GHPRQVWUDWHGE\WKH([HFXWLYHWKDWVXFKWHUPLQDWLRQRIHPSOR\PHQW $ ZDVDWWKHUHTXHVWRIDWKLUG SDUW\WKDWKDVWDNHQVWHSVUHDVRQDEO\FDOFXODWHGWRHIIHFWD&KDQJHRI&RQWURORU % RWKHUZLVHDURVHLQFRQQHFWLRQ ZLWKRUDQWLFLSDWLRQRID&KDQJHRI&RQWUROWKHQIRUDOOSXUSRVHVRIWKLV$JUHH ment the “Effective Date” shall mean WKHGDWHLPPHGLDWHO\SULRUWRVXFK'DWHRI7HUPLQDWLRQ E The “Change of Control Period” shall mean the period commencing on the date hereof and ending on the WKLUGDQQLYHUVDU\RIWKHGDWHKHUHRI SURYLGHG KRZHYHU WKDWFRPPHQFLQJRQWKHGDWHRQH\HDUDIWHUWKHGDWHKHUHRI DQGRQHDFKDQQXDODQQLYHUVDU\RIVXFKGDWH VXFKGDWHDQGHDFKDQQXDODQQLYHUVDU\WKHUHRIVKDOOEHKHUHLQDIWHU referred to as the “Renewal Date”), unless previously terminated, the Xxxx XXRI&RQWURO3HULRGVKDOOEH DXWRPDWLFDOO\H[WHQGHGVRDVWRWHUPLQDWHWKUHH\HDUVIURPVXFK5HQHZDO'DWHXQOHVVDWOHDVWGD\VSULRUWRWKH 5HQHZDO'DWHWKH&RPSDQ\VKDOOJLYHQRWLFHWRWKH([HFXWLYHWKDWWKH&KDQJHRI&RQWURO3HULRGVKDOOQRWEHVR H[WHQGHG &KDQJHRI&RQWURO . For the purpose of this Agreement, a “Change of Control” shall mean: D 7KHDFTXLVLWLRQE\DQ\LQGLYLGXDOHQWLW\RUJURXS ZLWKLQWKHPHDQLQJRI6HFWLRQ G RU G RI WKH6HFXULWLHV([FKDQJH$FWRI DV
amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of 5XOHG SURPXOJDWHGXQGHUWKH([FKDQJH$FW RIRUPRUHRIHLWKHU L WKHWKHQRXWVWDQGLQJVKDUHVRIFRPPRQVWRFNRI the Company (the “Outstanding Company Common Stock”) or (ii) WKHFRPELQHGYRWLQJSRZHURIWKHWKHQ RXWVWDQGLQJYRWLQJVHFXULWLHVRIW he Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); SURYLGHG KRZHYHU WKDWIRUSXUSRVHVRIWKLVVXEVHFWLRQ D WKHIROORZLQJDFTXLVLWLRQV VKDOOQRWFRQVWLWXWHD&KDQJHRI&RQWURO : DQ\DFTXLVLWLRQGLUHFWO\IURPWKH&RPSDQ\ ; DQ\DFTXLVLWLRQE\WKH &RPSDQ\ < DQ\DFTXLVLWLRQE\DQ\HPSOR\HHEHQHILWSODQ RUUHODWHGWUXVW VSRQVRUHGRUPDLQWDLQHGE\WKH &RPSDQ\RUDQ\HQWLW\FRQWUROOHGE\WKH&RPSDQ\ = DQ\DFTXLVLWLRQSXUVXDQWWRDWUDQVDFWLRQZKLFKFRPSOLHV ZLWKFODXVHV L LL DQG LLL RIVXEVHFWLRQ F RIWKLV6HFWLRQ E Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason WRFRQVWLWXWHDWOHDVWDPDMRULW\RIWKH%RDUG SURYLGHG KRZHYHU WKDWDQ\LQGLYLGXDOEHFRPLQJDGLUHFWRUVXEVHTXHQW to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a YRWHRIDWOHDVWDPDMRULW\RIWKHGLUHFWRUVWKHQFRPSULVLQJWKH,QFXPEHQW%RDUGVKDOOEHFRQVLGHUHGDVWKRXJKVXFK LQGLYLGXDOZHUHDPHPEHURIWKH,QFXPEHQW%RDUGEXWH[FOXGLQJIRUWKLVSXUSRVHDQ\VXFKLQGLYLGXDOZKRVHLQLWLDO DVVXPSWLRQRIRIILFHRFFXUVDVDUHVXOWRIDQDFWXDORUWKUHDWHQHGHOHFWLRQFRQWHVWZLWKUHVSHFWWRWKHHOHFWLRQRU UHPRYDORIGLUHFWRUVRURWKHUDFWXDORUWKUHDWHQHGVROLFLWDWLRQRISUR[LHVRUFRQVHQWVE\RURQEHKDOIRID3HUVRQRWKHU WKDQWKH%RDUG F &RQVXPPDWLRQE\WKH&RPSDQ\RIDUHRUJDQL]DWLRQVWDWXWRU\VKDUHH[FKDQJHPHUJHURUFRQVROLGDWLRQRU VLPLODUWUDQVDFWLRQLQYROYLQJWKH&RPSDQ\RUDQ\RILWVVXEVLGLDULHVRUVDOHRURWKHUGLVSRVLWLRQRIDOORUVXEVWDQWLDOO\ XXXxXXWKHDVVHWVRIWKH&RPSDQ\RUWKHDFTXLVLWLRQRIDVVHWVRUVWRFNRIDQRWKHUHQWLW\E\WKH&RPSDQ\RUDQ\RILWV subsidiaries (each of the foregoing, a “Business Combination”), in each case, unless, following such Business &RPELQDWLRQ L DOORUVXEVWDQWLDOO\XXXx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or substantially all of the Company’s assets eith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$JUHHPHQW$QQXDO%DVH6DODU\VKDOOQRWEHUHGXFHGDIWHUDQ\VXFKLQFUHDVHDQGWKHWHUP$QQXDO%DVH6DODU\DV XWLOL]HGLQWKLV$JUHHPHQWVKDOOUHIHUWR$QQXDO%DVH6DODU\DVVRLQFUHDVHG$VXVHGLQWKLV$JUHHPHQWWKHWHUP “affiliated companies” shall include any company controlled by, controlling or under common control with the &RPSDQ\ LL $QQXDO%RQXV ,QDGGLWLRQWR$QQXDO%DVH6DODU\WKH([HFXWLYHVKDOOEHDZDUGHGIRUHDFKILVFDO\HDU ending during the Employment Period, an annual bonus (the “Annual Bonus”) in cash at least equal to the Executive’s average of the bonuses paid or payable under the Company’s Management Incentive Bonus Plan, or any FRPSDUDEOHDQQXDOERQXVXQGHUDQ\SUHGHFHVVRURUVXFFHVVRUSODQLQUHVSHFWRIWKHODVWWKUHHIXOOILVFDO\HDUVSULRU WRWKH(IIHFWLYH'DWH RULIWKH([HFXWLYHZDVILUVWHPSOR\HGE\WKH&RPSDQ\DIWHUWKHEHJLQQLQJRIWKHHDUOLHVWRI VXFKWKUHHILVFDO\HDUVWKHDYHUDJHRIWKHERQXVHVSDLGRUSD\DEOHXQGHUVXFKSODQ V LQUHVSHFWRIWKHILVFDO\HDUV HQGLQJEHIRUHWKH(IIHFWLYH'DWHGXULQJZKLFKWKH([HFXWLYHZDVHPSOR\HGE\WKH&RPSDQ\ZLWKVXFKERQXVEHLQJ DQQXDOL]HGZLWKUHVSHFWWRDQ\VXFKILVFDO\HDULIWKH([HFXWLYHZDVQRWHPSOR\HGE\WKH&RPSDQ\IRUWKHZKROHRI such fiscal year) (the “Recent Average Bonus”). If the Executive has not been eligible to earn such a bonus for any SHULRGSULRUWR the Effective Date, the “Recent Annual Bonus” shall mean the Executive’s target annual bonus for WKH\HDULQZKLFKWKH(IIHFWLYH'DWHRFFXUV(DFKVXFK$QQXDO%RQXVVKDOOEHSDLGQRODWHUWKDQWZRDQGDKDOI PRQWKVDIWHUWKHHQGRIWKHILVFDO\HDUIRUZKLFKWKH$QQXDO%RQXVLVDZDUGHGXQOHVVWKH([HFXWLYHVKDOOHOHFWWR GHIHUWKHUHFHLSWRIVXFK$QQXDO%RQXVSXUVXDQWWRDQDUUDQJHPHQWWKDWPHHWVWKHUHTXLUHPHQWVRI6HFWLRQ $RI the Internal Revenue Code of 1986, as amended (the “Code”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uring the Employment Period, the Executive and/or the Executive’s family, as WKHFDVHPD\EHVKDOOEHHOLJLEOHIRUSDUWLFLSDWLRQLQDQGVKDOOUHFHLYHDOOEHQHILWVXQGHUZHOIDUHEHQHILWSODQV SUDFWLFHVSROLFLHVDQGSURJUDPVSURYLGHGE\WKH&RPSDQ\DQGLWVDIILOLDWHGFRPSDQLHV LQFOXGLQJZLWKRXW OLPLWDWLRQPHGLFDOSUHVFULSWLRQGHQWDOGLVDELOLW\VDODU\FRQWLQXDQFHHPSOR\HHOLIHJURXSOLIHDFFLGHQWDOGHDWK and travel accident insurance plans and programs) (“Company Welfare Benefit Plans”) to the extent applicable JHQHUDOO\WRRWKHUSHHUH[HFXWLYHVRIWKH&RPSDQ\DQGLWVDIILOLDWHGFRPSDQLHVEXWLIWKH&RPSDQ\:HOIDUH%HQHILW 3ODQVSURYLGHWKH([HFXWLYHZLWKEHQHILWVZKLFKDUHOHVVIDYRUDEOHLQWKHDJJUHJDWHWKDQWKHPRVWIDYRUDEOHRIVXFK SODQVSUDFWLFHVSROLFLHVDQGSURJUDPVLQHIIHFWIRUWKH([HFXWLYHDWDQ\WLPHGXULQJWKHGD\SHULRGLPPHGLDWHO\ SUHFHGLQJWKH
Effective Date (the “Former Company Welfare Benefit Plans”), the Company shall provide the Executive with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he Executive’s employment shall terminate DXW omatically upon the Executive’s death during the Employment Period. If the Company determines in good faith WKDWWKH'LVDELOLW\RIWKH([HFXWLYHKDVRFFXUUHGGXULQJWKH(PSOR\PHQW3HULRG SXUVXDQWWRWKHGHILQLWLRQRI 'LVDELOLW\VHWIRUWKEHORZ LWPD\JLYHWRWKH([HFXWLYHZULWWHQQRWLFHLQDFFRUGDQFHZLWK6HFWLRQ E RIWKLV Agreement of its intention to terminate the Executive’s employment.
In such event, the Executive’s employment with the Company shall terminate effective on the 30th day after receipt of such notice by the Executive (the “Disability Effective Date”), SURYLGHG WKDWZLWKLQWKHGD\VDIWHUVXFK UHFHLSWWKH([HFXWLYHVKDOOQRWKDYHUHWXUQHGWRIXOO time performance of the Executive’s duties. For purposes of this Agreement, “Disability” shall mean the absence of the Executive from the Executive’s duties ZLWKWKH&RPSDQ\RQ DIXOOWLPHEDVLVIRUFRQVHFXWLYHEXVLQHVVGD\V RUIRUEXVLQHVVGD\VLQDQ\FRQVHFXWLYHGD\V DVDUHVXOW RILQFDSDFLW\GXHWRPHQWDORUSK\VLFDOLOOQHVVZKLFKLVGHWHUPLQHGWREHWRWDODQGSHUPDQHQWE\DSK\VLFLDQVHOHFWHG by the Company or its insurers and acceptable to the Executive or the Executive’s legal representative. E &DXVH . The Company may terminate the Executive’s employment during the Employment Period with or ZLWKRXW&DXVH)RUSXUSRVHVRIWKLV$J reement, “Cause” shall mean: (i) the willful and continued failure of the Executive to perform substantially the Executive’s duties with the &RPSDQ\RURQHRILWVDIILOLDWHV RWKHUWKDQDQ\VXFKIDLOXUHUHVXOWLQJIURPLQFDSDFLW\GXHWRSK\VLFDORUPHQWDO illness or following the Executive’s delivery of a Notice of Termination for Good Reason), after a written demand IRUVXEVWDQWLDOSHUIRUPDQFHLVGHOLYHUHGWRWKH([HFXWLYHE\WKH%RDUGRUWKH&KLHI([HFXWLYH2IILFHURIWKH &RPSDQ\ZKLFKVSHFLILFDOO\LGHQWLILHVWKHPDQQHULQZKLFKWKH%RDUGRU&KLHI([HFXWLYH2IILFHURIWKH&RPSDQ\ believes that the Executive has not substantially performed the Executive’s duties, or LL WKHZLOOIXOHQJDJLQJE\WKH([HFXWLYHLQLOOHJDOFRQGXFWRUJURVVPLVFRQGXFWZKLFKLVPDWHULDOO\DQG GHPRQVWUDEO\LQMXULRXVWRWKH&RPSDQ\ For purposes of this provision, no act or failure to act, on the part of the Executive, shall be considered “willful” XQOHVVLWLVGRQHRURPLWWHGWREHGRQHE\WKH([HFXWLYHLQEDGIDLWKRUZLWKRXWUHDVRQDEOHEHOLHIWKDWWKH Executive’s action or omission was in the best interests of the Company. Any act, or failure to act, based upon DXWKRULW\JLYHQSXUVXDQWWRDUHVROXWLRQGXO\DGRSWHGE\WKH%RDUGRULIWKH&RPSDQ\LVQRWWKHXOWLPDWHSDUHQW HQWLW\DQGLVQRWSXEOLFO\WUDGHGWKHERDUGRIGLUHFWRUV RUIRUDQRQFRUSRUDWHHQWLW\HTXLYDOHQWJRYHUQLQJERG\ RI the ultimate parent of the Company (the “Applicable Board”)or upon the instructions of the Chief Executive Officer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
RSLQLRQRIWKH$SSOLFDEOH%RDUGWKH([HFXWLYHLVJXLOW\RIWKHFRQGXFWGHVFULEHGLQVXESDUDJUDSK L RU LL DERYH DQGVSHFLI\LQJWKHSDUWLFXODUVWKHUHRILQGHWDLO F *RRG5HDVRQ . The Executive’s employment may be terminated by tKH([HFXWLYHIRU*RRG5HDVRQRUE\ the Executive voluntarily without Good Reason. For purposes of this Agreement, “Good Reason” shall mean: L WKHDVVLJQPHQWWRWKH([HFXWLYHRIDQ\GXWLHV inconsistent in any respect with the Executive’s position LQFOXGLQJVWDWXVRIILFHVWLWOHVDQGUHSRUWLQJUHTXLUHPHQWV DXWKRULW\GXWLHVRUUHVSRQVLELOLWLHVDVFRQWHPSODWHGE\ 6HFWLRQ D RIWKLV$JUHHPHQWRUDQ\RWKHUGLPLQXWLRQLQVXFKSRVLWLRQDXWKRULW\GXWLHVRUUHVSRQVLELOLWLHV (whether or not occurring solely as a result of the Company’s ceasing to be a publicly traded entity), excluding for WKLVSXUSRVHDQLVRODWHGLQVXEVWDQWLDODQGLQDGYHUWHQWDFWLRQQRWWDNHQLQEDGIDLWKDQGZKLFKLVUHPHGLHGE\WKH &RPSDQ\SURPSWO\DIWHUUHFHLSWRIQRWLFHWKHUHRIJLYHQE\WKH([HFXWLYH LL DQ\IDLOXUHE\WKH&RPSDQ\WRFRPSO\ZLWKDQ\RIWKHSURYLVLRQVRI6HFWLRQ E RIWKLV$JUHHPHQWRWKHU WKDQDQLVRODWHGLQVXEVWDQWLDODQGLQDGYHUWHQWIDLOXUHQRWRFFXUULQJLQEDGIDLWKDQGZKLFKLVUHPHGLHGE\WKH &RPSDQ\SURPSWO\DIWHUUHFHLSWRIQRWLFHWKHUHRIJLYHQE\WKH([HFXWLYH (iii) the Company’s requiring the Executive to be based at any office or location other than as provided in 6HFWLRQ 4(a)(i)(B) hereof or the Company’s requiring the Executive to travel on Company business to a substantially JUHDWHUH[WHQWWKDQUHTXLUHGLPPHGLDWHO\SULRUWRWKH(IIHFWLYH'DWH LY DQ\SXUSRUWHGWHUPLQDWLRQE\WKH&RPSDQ\RIWKH([HFXWLYH ’s employment otherwise than as expressly SHUPLWWHGE\WKLV$JUHHPHQW RU Y DQ\IDLOXUHE\WKH&RPSDQ\WRFRPSO\ZLWKDQGVDWLVI\6HFWLRQ F RIWKLV$JUHHPHQW )RUSXUSRVHVRIWKLV6HFWLRQ 5(c), any good faith determination of “Good Reason” made by the Executive shall be FRQFOXVLYH G ,QFDSDFLW\ . The Executive’s mental or physical incapacity following the occurrence of an event described DERYHLQFODXVHV L WKURXJK Y of Section 5(c) shall not affect the Executive’s ability t RWHUPLQDWHHPSOR\PHQWIRU Good Reason and the Executive’s death following delivery of a Notice of Termination for Good Reason shall not DIIHFWWKHHQWLWOHPHQWRIWKHHVWDWHRIWKH([HFXWLYHWRVHYHUDQFHSD\PHQWVRUEHQHILWVSURYLGHGKHUHXQGHUXSRQD WHUPLQDWLRQRIHPSOR\PHQWIRU*RRG5HDVRQ H 1RWLFHRI7HUPLQDWLRQ $Q\WHUPLQDWLRQRIHPSOR\PHQWE\WKH&RPSDQ\IRU&DXVHRUE\WKH([HFXWLYH IRU*RRG5HDVRQVKDOOEHFRPPXQLFDWHGE\1RWLFHRI7HUPLQDWLRQWRWKHRWKHUSDUW\KHUHWRJLYHQLQDFFRUGDQFH with Section 12(b) of this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written QRWLFHZKLFK L LQGLFDWHVWKHVSHFLILFWHUPLQDWLRQSURYLVLRQLQWKLV$JUHHPHQW
UHOLHGXSRQ LL WRWKHH[WHQWDSSOLFDEOHVHWVIRUWKLQUHDVRQDEOHGHWDLOWKHIDFWVDQGFLUFXPVWDQFHVFODLPHGWR provide a basis for termination of the Executive’ VHPSOR\PHQWXQGHUWKHSURYLVLRQVRLQGLFDWHGDQG LLL LIWKH'DWH RI7HUPLQDWLRQ DVGHILQHGEHORZ LVRWKHUWKDQWKHGDWHRIUHFHLSWRIVXFKQRWLFHVSHFLILHVWKH'DWHRI7HUPLQDWLRQ ZKLFKGDWHVKDOOEHQRWPRUHWKDQWKLUW\GD\VDIWHUWKHJLYLQJRIVXFKQRWLFH 7KHIDLOXUHE\WKH([HFXWLYHRUWKH &RPSDQ\WRVHWIRUWKLQWKH1RWLFHRI7HUPLQDWLRQDQ\IDFWRUFLUFXPVWDQFHZKLFKFRQWULEXWHVWRDVKRZLQJRI*RRG 5HDVRQRU&DXVHVKDOOQRWZDLYHDQ\ULJKWRIWKH([HFXWLYHRUWKH&RPSDQ\UHVSHFWLYHO\KHUHXQGHURUSUHFOXGHWKH Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder. I 'DWHRI7HUPLQDWLRQ . “Date of Termination” means (i) if the Executive’s empl R\PHQWLVWHUPLQDWHGE\WKH &RPSDQ\IRU&DXVHRUE\WKH([HFXWLYHIRU*RRG5HDVRQWKHGDWHRIUHFHLSWRIWKH1RWLFHRI7HUPLQDWLRQRUDQ\ later date specified therein, as the case may be, (ii) if the Executive’s employment is terminated by the Company RWKHUWKDQIRU&DXVHRU'LVDELOLW\WKHGDWHRQZKLFKWKH&RPSDQ\QRWLILHVWKH([HFXWLYHRIVXFKWHUPLQDWLRQ LLL LI WKH([HFXWLYHUHVLJQVZLWKRXW*RRG5HDVRQWKHGDWHRQZKLFKWKH([HFXWLYHQRWLILHVWKH&RPSDQ\RIVXFK WHUPLQDWLRQDQG LY LIWKH([HFXWL ve’s employment is terminated by reason of death or Disability, the date of death RIWKH([HFXWLYHRUWKH'LVDELOLW\(IIHFWLYH'DWHDVWKHFDVHPD\EH1RWZLWKVWDQGLQJWKHIRUHJRLQJLQQRHYHQW VKDOOWKH'DWHRI7HUPLQDWLRQRFFXUXQWLOWKH([HFXWLYHH[SH riences a “separation from service” within the meaning RI6HFWLRQ $RIWKH&RGHDQGQRWZLWKVWDQGLQJDQ\WKLQJFRQWDLQHGKHUHLQWRWKHFRQWUDU\WKHGDWHRQZKLFKVXFK separation from service takes place shall be the “Date of Termination.” 2EOLJDWLRQVRIWKH&RPSDQ\XSRQ7HUPLQDWLRQ D *RRG5HDVRQ 2WKHU7KDQIRU&DXVH'HDWKRU 'LVDELOLW\ . If, during the Employment Period, the Company shall terminate the Executive’s employment other than IRU&DXVH'HDWKRU'LVDELOLW\RUWKH([HFXWLYHVKDOOWHUPLQDWHHPSOR\PHQWIRU*RRG5HDVRQ L WKH&RPSDQ\VKDOOSD\WRWKH([HFXWLYHLQDOXPSVXPLQFDVKZLWKLQGD\VDIWHUWKH'DWHRI7HUPLQDWLRQ WKHDJJUHJDWHRIWKHIROORZLQJDPRXQWV $ WKHVXPRI the Executive’s Annual B DVH6DODU\WKURXJKWKH'DWHRI7HUPLQDWLRQWRWKHH[WHQWQRW WKHUHWRIRUHSDLG the Executive’s business expenses that are reimbursable pursuant to Section E Y EXWKDYH QRWEHHQUHLPEXUVHGE\WKH&RPSDQ\DVRIWKH'DWHRI7HUPLQDWLRQ WKH([HFXW ive’s Annual Bonus for the fiscal \HDULPPHGLDWHO\SUHFHGLQJWKHILVFDO\HDULQZKLFKWKH'DWHRI7HUPLQDWLRQRFFXUVLIVXFKERQXVKDVEHHQ GHWHUPLQHGEXWQRWSDLGDVRIWKH'DWHRI7HUPLQDWLRQ DQ\DFFUXHGYDFDWLRQSD\WRWKHH[WHQWQRWWKHUHWRIRUH SDLG WKHVXPRIWKHDPRXQWVGHVFULEHGLQVXEFODXVHV and (4), the “Accrued Obligations”) and (5) DQ DPRXQWHTXDOWRWKHSURGXFWRI [ WKH5HFHQW$YHUDJH%RQXVDQG \ DIUDFWLRQWKHQXPHUDWRURIZKLFKLVWKH QXPEHURIGD\VLQWKHFXUUHQWILVFDO\HDUWKURXJKWKH'DWHRI7HUPLQDWLRQDQGWKHGHQRPLQDWRURIZKLFKLV WKH “Pro Rata Bonus”); SURYLGHG WKDWQRWZLWKVWDQGLQJWKHIRUHJRLQJLIWKH([HFXWLYHKDVPDGHDQLUUHYRFDEOHHOHFWLRQ XQGHUDQ\GHIHUUHGFRPSHQVDWLRQDUUDQJHPHQWVXEMHFWWR6HFWLRQ $RIWKH&RGHWRGHIHUDQ\SRUWLRQRIWKH $QQXDO%DVH6DODU\RUWKH$QQXDO%RQXVGHVFULEHGLQFODXVHV RU DERYH
WKHQIRUDOOSXUSRVHVRIWKLV6HFWLRQ LQFOXGLQJZLWKRXWOLPLWDWLRQ6HFWLRQV E WKURXJK G VXFKGHIHUUDO HOHFWLRQDQGWKHWHUPVRIWKHDSSOLFDEOHDUUDQJHPHQWVKDOODSSO\WRWKHVDPHSRUWLRQRIWKHDPRXQWGHVFULEHGLQVXFK FODXVH or clause (3), and such portion shall not be considered as part of the “Accrued Obligations” but shall instead be an “Other Benefit” (as defined below); and % WKHDPRXQWHTXDOWRWKHSURGXFWRI >WZRWKUHH@DQG WKHVXPRI (x) the Executive’s Annual Base 6DODU\DQG \ WKH5HFHQW$YHUDJH%RQXV DQG & DQDPRXQWHTXDOWRWKHSURGXFWRI >WZRWKUHH@DQG WKHVXPRI D WKH&RPSDQ\5HWLUHPHQW &RQWULEXWLRQV DVGHILQHGLQWKH%RUJ:DUQHU,QF5HWLUHPHQW6D vings Plan (“RSP”)) that would have been made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b)(ii) of this Agreement (“Limitations” meaning limitations contained in the RSP, the Em SOR\HH Retirement Income Security Act (“ERISA”) or the Code (including without limitation the $150,000 cap on &RPSHQVDWLRQ (ii) for two years following the Date of Termination (the “Benefits Period”), the Company shall provide the ([HFXWLYH and his eligible dependents with medical and dental insurance coverage (the “Health Care Benefits”) and OLIHLQVXUDQFHEHQHILWVQROHVVIDYRUDEOHWRWKRVHZKLFKWKH([HFXWLYHDQGKLVVSRXVHDQGHOLJLEOHGHSHQGHQWVZHUH UHFHLYLQJLPPHGLDWHO\SULRUWRWKH'DWHRI7HUPLQDWLRQRULIPRUHIDYRUDEOHWRVXFKSHUVRQVDVLQHIIHFWJHQHUDOO\ DWDQ\WLPHWKHUHDIWHUZLWKUHVSHFWWRRWKHUSHHUH[HFXWLYHVRIWKH&RPSDQ\DQGWKH$IILOLDWHG&RPSDQLHV SURYLGHG KRZHYHU WKDWWKH+HDOWK&DUH%HQHILWVVKDOOEHSURYLGHGGXULQJWKH%HQHILWV3HULRGLQVXFKDPDQQHUWKDWVXFK benefits are excluded from the Executive’s income for federal income tax purposes; SURYLGHG IXUWKHU KRZHYHU WKDW LIWKH([HFXWLYHEHFRPHVUHHPSOR\HGZLWKDQRWKHUHPSOR\HUDQGLVHOLJLEOHWRUHFHLYHKHDOWKFDUHEHQHILWVXQGHU DQRWKHUHPSOR\HUSURYLGHGSODQWKHKHDOWKFDUHEHQHILWVSURYLGHGKHUHXQGHUVKDOOEHVHFRQGDU\WRWKRVHSURYLGHG XQGHUVXFKRWKHUSODQGXULQJVXFKDSSOLFDEOHSHULRGRIHOLJLELOLW\7KHUHFHLSWRIWKH+HDOWK&DUH%HQHILWVVKDOOEH FRQGLWLRQHGXSRQWKH([HFXWLYHFRQWLQXLQJWRSD\WKH$SSOLFDEOH&REUD3UHPLXPZLWKUHVSHFWWRWKHOHYHORI coverage that the Executive has elected for the Executive and the Executive’s spouse and eligible dependents ( e.g. VLQJOHVLQJOHSOXVRQHRUIDPLO\ 'XULQJWKHSRUWLRQRIWKH%HQHILWV3HULRGLQZKLFKWKH([HFXWLYHDQGKLVHOLJLEOH GHSHQGHQWVFRQWLQXHWRUHFHLYHFRYHUDJHXQGHUWKH
Company’s Health Care Benefits plans, the Company shall pay to the Executive a monthly amount equal to the $SSOLFDEOH&2%5$3UHPLXPLQUHVSHFWRIWKHPD[LPXPOHYHORIFRYHUDJHWKDWWKH([HFXWLYHFRXOGKDYHHOHFWHGWR receive for the Executive and the Executive’s spouse and eligible dependents if the Executive were still an employee RIWKH&RPSDQ\GXULQJWKH%HQHILWV3HULRG e.g. VLQJOHVLQJOHSOXVRQHRUIDPLO\ UHJDUGOHVVRIZKDWOHYHORI FRYHUDJHLVDFWXDOO\HOHFWHGZKLFKSD\PHQWVKDOOEHSDLGLQDGYDQFHRQWKHILUVWSD\UROOGD\RIHDFKPRQWK commencing with the month immediately following the Executive’s Date of Termination. The Company shall use LWVUHDVRQDEOHEHVWHIIRUWVWRHQVXUHWKDWIROORZLQJWKHHQGRI the Benefit Period, the Executive and the Executive’s VSRXVHDQGHOLJLEOHGHSHQGHQWVVKDOOEHHOLJLEOHWRHOHFWFRQWLQXHGKHDOWKFRYHUDJHSXUVXDQWWR6HFWLRQ %RIWKH Code or other applicable law (“COBRA Coverage”), as if the Executive’s employment wi WKWKH&RPSDQ\KDG WHUPLQDWHGDVRIWKHHQGRIVXFKSHULRG)RUSXUSRVHVRIGHWHUPLQLQJHOLJLELOLW\ EXWQRWWKHWLPHRIFRPPHQFHPHQW of benefits) of the Executive for retiree welfare benefits pursuant to the Company’s retiree welfare benefit plans, if DQ\WKH([HFXWLYHVKDOOEHFRQVLGHUHGWRKDYHUHPDLQHGHPSOR\HGXQWLOWKHHQGRIWKH%HQHILW3HULRGDQGWRKDYH retired on the last day of such period. For purposes of this Provision, “Applicable COBRA Premium” means the PRQWKO\SUHPLXPLQHIIHFWIURPWLPHWRWLPHIRUFRYHUDJHSURYLGHGWRIRUPHUHPSOR\HHVXQGHU6HFWLRQ %RI WKH&RGHDQGWKHUHJXODWLRQVWKHUHXQGHUZLWKUHVSHFWWRDSDUWLFXODUOHYHORIFRYHUDJH e.g. VLQJOHVLQJOHSOXVRQHRU IDPLO\ LLL WKH&RPSDQ\VKDOODWLWVVROHH[SHQVHDVLQFXUUHGSURYLGHWKH([HFXWLYHZLWKRXWSODFHPHQWVHUYLFHVWKH scope and provider of which shall be selected by the Executive in the Executive’s sole discretion, but the cost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referred to as the “Other Benefits”) in accordance with the terms of the underlying plans or agreements. 1RWZLWKVWDQGLQJWKHIRUHJRLQJSURYLVLRQVRI6HFWLRQ D L DQG6HFWLRQ D LL LQWKHHYHQWWKDWWKH([HFXWLYHLVD “specified employee” within the meaning of Section $RIWKH&RGH DVGHWHUPLQHGLQDFFRUGDQFHZLWKWKH PHWKRGRORJ\HVWDEOLVKHGE\WKH&RPSDQ\DVLQH ffect on the Date of Termination) (a “Specified Employee”), amounts that constitute “nonqualified deferred compensation” within the meaning of Section $RIWKH&RGHWKDW ZRXOGRWKHUZLVHEHSD\DEOHDQGEHQHILWVWKDWZRXOGRWKHUZLVHEHSURYLGHGXQGHU6HFWLRQ D L RU6HFWLRQ D LL GXULQJWKHVL[PRQWKSHULRGLPPHGLDWHO\IROORZLQJWKH'DWHRI7HUPLQDWLRQ RWKHUWKDQWKH$FFUXHG2EOLJDWLRQV VKDOOLQVWHDGEHSDLGZLWKLQWHUHVWRQDQ\GHOD\HGSD\PHQWDWWKHDSSOLFDEOHIHGHUDOUDWHSURYLGHGIRULQ 6HFWLRQ 7872(f)(2)(A) of the Code (“Interest”) determined as of the Date of Termination,
RUSURYLGHGRQWKHILU st business day after the date that is six months following the Executive’s Date of Termination (the “Delayed Payment Date”); E 'HDWK . If the Executive’s employment is terminated by reason of the Executive’s death during the (PSOR\PHQW3HULRG the Company shall provide the Executive’s estate or beneficiaries with the Accrued Obligations DQGWKH3UR5DWD%RQXVDQGWKHWLPHO\SD\PHQWRUGHOLYHU\RIWKH2WKHU%HQHILWVDQGVKDOOKDYHQRRWKHUVHYHUDQFH REOLJDWLRQVXQGHUWKLV$JUHHPHQW7KH$FFUXHG2EOLJDWLRQV VXEMHFWWRWKHSURYLVRVHWIRUWKLQ6HFWLRQ D $ WR the extent applicable) and the Pro Rata Bonus shall be paid to the Executive’s estate or beneficiary, as applicable, in DOXPSVXPLQFDVKZLWKLQGD\VRIWKH'DWHRI7HUPLQDWLRQ:LWKUHVSHFWWRWKHSURYLVLRQRIWKH2WKHU%HQHILWV the term “Other Benefits” as utilized in this Section 6(b) shall include, without limitation, and the Executive’s estate DQGRUEHQHILFLDULHVVKDOOEHHQWLWOHGWRUHFHLYHEHQHILWV HLWKHUSXUVXDQWWRDSODQSURJUDPSUDFWLFHRUSROLF\RUDQ LQGLYLGXDODUUDQJHPHQW DWOHDVWHTXDOWRWKHPRVWIDYRUDEOHEHQHILWVSURYLGHGE\WKH&RPSDQ\DQGWKHDIILOLDWHG FRPSDQLHVWRWKHHVWDWHVDQGEHQHILFLDULHVRISHHUH[HFXWLYHVRIWKH&RPSDQ\DQGVXFKDIILOLDWHGFRPSDQLHVXQGHU VXFKSODQVSURJUDPVSUDFWLFHVDQGSROLFLHVUHODWLQJWRGHDWKEHQHILWVLIDQ\DVLQHIIHFWZLWKUHVSHFWWRRWKHUSHHU H[HFXWLYHVDQGWKHLUEHQHILFLDULHVDWDQ\WLPHGXULQJWKHGD\SHULRGLPPHGLDWHO\SUHFHGLQJWKH(IIHFWLYH'DWH RULIPRUHI avorable to the Executive’s estate and/or the Executive’s beneficiaries, as in effect on the date of the Executive’s death with respect to other peer executives of the Company and its affiliated companies and their EHQHILFLDULHV F 'LVDELOLW\ If the Executive’s employment is terminated by reason of the Executive’s Disability during the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ayment Date. With respect to the provision of the Other Benefits, the term “Other Benefits” as utilized in this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favorable to the Executive and/or the Executive’s IDPLO\DVLQHIIHFWDWDQ\WLPHWKHUHDIWHUJHQHUDOO\ZLWKUHVSHFWWRRWKHUSHHUH[HFXWLYHVRIWKH&RPSDQ\DQGWKH DIILOLDWHGFRPSDQLHVDQGWKHLUIDPLOLHV G &DXVH 2WKHUWKDQIRU*RRG5HDVRQ If the Executive’s employment is terminated for Cause during the Employment Period, the Company shall provide the Executive with the Executive’s Annual Base Salary (subject to WKHSURYLVRVHWIRUWKLQ6HFWLRQ D $ WRWKHH[WHQWDSSOLFDEOH WKURXJKWKH'DWHRI7HUPLQDWLRQDQGWKHWLPHO\ SD\PHQWRUGHOLYHU\RIWKH2WKHU%HQHILWVDQGVKDOOKDYHQRRWKHU
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