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Amended and Restated AAM 2009 Long-Term Incentive Plan

Executive Compensation Plan Agreement

Amended and Restated AAM 2009 Long-Term Incentive Plan | Document Parties: AMERICAN AXLE & MANUFACTURING HOLDINGS INC You are currently viewing:
This Executive Compensation Plan Agreement involves

AMERICAN AXLE & MANUFACTURING HOLDINGS INC

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Title: Amended and Restated AAM 2009 Long-Term Incentive Plan
Governing Law: New York     Date: 8/6/2009
Industry: Auto and Truck Parts     Sector: Consumer Cyclical

Amended and Restated AAM 2009 Long-Term Incentive Plan, Parties: american axle & manufacturing holdings inc
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10-Q

Amended and Restated

AAM 2009 Long-Term Incentive Plan

 

Article 1. Establishment, Purpose, and Duration

 

1.1            Establishment of the Plan . American Axle & Manufacturing Holdings, Inc. (the “Company”), a Delaware corporation, hereby establishes an incentive compensation plan to be known as the “AAM 2009 Long-Term Incentive Plan” (the “Plan”), as set forth in this document. The Plan permits the payment of cash awards based upon the achievement of predefined performance goals established by the Committee.

 

The Plan shall become effective as of January 1, 2009 (the “Effective Date”) and shall remain in effect as provided in Section 1.3 hereof.

 

1.2            Purpose of the Plan . The purposes of the Plan are to reward Participants for the overall success of the Company; to provide Participants with an incentive for excellence in individual performance; to retain key senior employees; and to provide a competitive and valuable long-term incentive program for Participants.

 

1.3            Duration of the Plan . The Plan shall commence on the Effective Date and shall remain in effect, subject to the right of the Board to alter, amend, suspend, or terminate the Plan at any time pursuant to Article 7 hereof.

 

Article 2. Definitions

 

For purposes of the Plan, the capitalized words shall have the meanings set forth below:

 

 

(a)

“Affiliate” means any Parent or Subsidiary and any person that directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the Company.

 

 

(b)

“Award” means a grant under the Plan of a cash incentive opportunity to be earned by and paid to a Participant pursuant to the terms of the Plan and Award Document.

 

 

(c)

“Award Document” means an agreement, certificate or other type or form of document or documentation approved by the Committee that sets forth the terms and conditions of an Award. An Award Document may be written, electronic, or other media, may be limited to a notation on the books and records of the Company and, unless the Committee requires otherwise, need not be signed by a representative of the Company or Participant.

 

 

(d)

“Award Opportunity” or “Award Opportunities” means the Award or Awards that a Participant can earn based upon the achievement of a pre-established performance goal or goals during a Performance Period as specified in the Participant’s Award Document and pursuant to the terms of the Plan.

 

 

(e)

Beneficial Owner ” or “ Beneficial Ownership ” shall have the meaning ascribed to such terms in Rule 13d-3 of the General Rules and Regulations under the Exchange Act.

 

 

(f)

Board of Directors” or “Board” means the Board of Directors of the Company.

 


 

(g)

Change in Control ” means any of the following events:

 

 

(i)

Any Person, excluding the Company and any subsidiary and any employee benefit plan sponsored or maintained by the Company or any subsidiary (including any trustee of such plan acting as trustee), directly or indirectly, becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), of securities of the Company representing 30% or more of the combined voting power of the Company’s then outstanding securities; or

 

(ii)  

The consummation of any merger or other business combination involving the Company, a sale of 51% or more of the Company’s assets, liquidation or dissolution of the Company or a combination of the foregoing transactions (the “ Transactions ”) other than a Transaction immediately following which the shareholders of the Company immediately prior to the Transaction own, in the same proportion, at least 51% of the voting power, directly or indirectly, of (A) the surviving corporation in any such merger or other business combination; (B) the purchaser of or successor to the Company’s assets; (C) both the surviving corporation and the purchaser in the event of any combination of Transactions; or (D) the parent company owning 100% of such surviving corporation, purchaser or both the surviving corporation and the purchaser, as the case may be; or

 

 

(iii)

Within any 12-month period, the persons who were directors immediately before the beginning of such period (the “ Incumbent Directors ”) cease (for any reason other than death) to constitute at least a majority of the Board or the board of directors of a successor to the Company. For this purpose, any director who was not a director at the beginning of such period shall be deemed to be an Incumbent Director if such director was elected to the Board by, or on the recommendation of or with the approval of, at least two thirds of the directors who then qualified as Incumbent Directors, so long as such director was not nominated by a person who commenced or threatened to commence an election contest or proxy solicitation by or on behalf of a person (other than the Board) or who has entered into an agreement to effect a Change in Control or expressed an intention to cause such a Change in Control.

 

 

 

(h)

“Code” means the Internal Revenue Code of 1986, as amended from time to time.

 

 

(i)

“Committee” means the Compensation Committee of the Board, which shall consist entirely of “non-employee directors” for purposes of Rule 16b-3 of the Exchange Act and “outside directors” for purposes of Section 162(m) of the Code; provided, however, that a failure to meet such requirements shall not invalidate awards granted or decisions made by the Committee.

 

 

(j)

“Director” means any individual who is a member of the Board of Directors of the Company.

 

 

(k)

“Disability” shall have the meaning ascribed to such term in the governing long-tern disability plan pursuant to which the Participant may be entitled to benefits, if any, or if there shall be no such plan, as determined by the Committee in its absolute discretion.

 

 

(l)

“Effective Date” shall have the meaning ascribed to such term in Section 1.1 hereof.

 

 

(m)

“Eligible Individuals” means the individuals described in Article 4 who are eligible for Awards under the Plan.

 

 

(n)

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto.

 

 

(o)

“Participant” means Eligible Individual who has been granted an Award under the Plan.

 

 

(p)

“Performance Period” means the period established by the Committee and set forth in the Award Document over which performance goals are measured.

 

 

(q)

Person ” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof.

 

 

(r)

“Retirement” means, with respect to any Participant, such Participant’s voluntary resignation at any time after attaining age 65 or as such term is defined in the governing retirement plan(s) to which the Participant may be entitled to benefits, if any.

 

 

(s)

“Subsidiary” means

 

(i)  

a corporation or other entity with respect to which the Company, directly or indirectly, has the power, whether through the ownership of voting securities, by contract or otherwise, to elect at least a majority of the members of the board of directors or analogous governing body, or

 

(ii)  

any other corporation or other entity in which the Company, directly or indirectly, has an equity or similar interes


 
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