Federal-Mogul 2008 Management
Incentive Uplift Plan
The 2008 Management Incentive Uplift Plan (2008 Uplift) is a special program designed to incentivize long term performance and
retain critical skills. Toward this goal it provides participants with the opportunity to receive an additional bonus for 2008
This program is being offered to a select group of employees and applies solely to the calendar year 2008. Individual employees
are eligible for participation in the 2008 Uplift based upon appointment by the President and Chief Executive Officer. Because of
limited participation in this program, employees are expected to keep their participation confidential.
The 2008 Uplift Target Bonus Percentage is assigned to eligible participants at the discretion of the President and Chief
For example, the President and Chief Executive Officer may elect to assign a Manager with a normal MIP Target Award of 20%
of base a 2008 Uplift Target Bonus of 10%. When combined with the annual MIP program his/her combined 2008 Target Award
Shown another way this example would provide:
If an employee is hired or promoted during 2008, the calculation of his/her award will be prorated in the same manner as the
annual MIP prorata calculation formula. If a participant is not actively at work for a period of more than three months, his/her
award will be pro-rated.
The 2008 Uplift program metrics focus on Corporate-Wide EBITDA, Corporate-Wide Free Cash Flow, New Business Bookings,
and Return on Equity as calculated by the Corporate Finance department.
Corporate-Wide EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization.
Corporate-Wide Free Cash Flow - EBITDA adjusted for capital expenditures and interest.
Annual MIP Target Bonus
2008 Uplift Target Bonus
Combined 2008 Target Awards
New Business Bookings - The total dollar value