Document:

exhibit1064.htm

 

-1-

Exhibit 10.64

Corporate Performance Plan For 2015

CORNING INCORPORATED

INCENTIVE STOCK RIGHTS AGREEMENT

(Time-Based Incentive Stock Right)

(Terms and Conditions)

 

 

 

This Incentive Stock Rights Agreement (“Agreement”) dated March 31, 2015 between Corning Incorporated (“Corning” or the “Corporation”) and the employee is subject in all respects to Corning’s 2012 Long-Term Incentive Plan as amended, a copy of which may be obtained from the Corporation's Secretary at One Riverfront Plaza, Corning, New York  14831.

	
1.

	
Awards of Rights.  Corning hereby awards to the employee (the “Employee”) Incentive Stock Rights (the “Incentive Stock Rights”).

Each Incentive Stock Right shall entitle the Employee to receive from Corning one share of Corning's common stock ("Common Stock"); provided that the Employee satisfies both service based vesting requirements set forth in Sections 3 and 4.  Such shares, if any, shall be paid to the Employee at the time set forth in Section 5.

	
2.  

	
Non-Transferability.  The Incentive Stock Rights may not be sold, assigned, transferred, pledged or otherwise encumbered by or on behalf of or for the benefit of the Employee.

	
3.  

	
First Service Based Vesting Requirement.  Incentive Stock Rights are subject to two service-based vesting requirements, with the first one applicable in 2015 as follows:

	
  

	
(a)

	
Under the first vesting requirement, the Employee shall “earn” a number of Incentive Stock Rights based upon the number of months he/she is employed by the Corporation in the 2015 fiscal year (“First Service Period”), provided further that this number must be 3 or greater for the Employee to be eligible to “earn” any award.

	
  

	
(b)

	
If during the First Service Period the Employee’s employment  with the Corporation is terminated for any reason (other than a termination as described in Section 4(b) or 4(f) below), then the prorated number of “earned” Incentive Stock Rights shall be calculated as the total number of  Incentive Stock Rights multiplied by a ratio in which the numerator is equal to the number of full calendar months that the employee was actively employed (provided that this number is no less than 3) during the time from the start of the First Service Period through the Employee’s termination date, and the denominator of which is 12. The number of Incentive Stock Rights that have not been “earned” in the First Service Period under the first vesting requirement shall be forfeited.

	
  

	
(c)

	
An Employee shall not vest in his/her right to receive an Incentive Stock Right that has been “earned” in the First Service Period unless the Employee also satisfies the second service based vesting requirements set forth in Section 4.

	
4.  

	
Second Service Based Vesting Requirement. Subject to the exceptions set forth below, the Employee must remain in continuous employment with Corning until March 31, 2018, to satisfy the second service based vesting requirement.  If the Employee’s employment with Corning terminates on or before March 31, 2018, any “earned” Incentive Stock Rights, as described in Section 3 above, as of the date of the Employee’s employment terminates shall be treated as follows:

	
  

	
(a)

	
Retirement at or After Age 55 – If the Employee terminates employment on account of normal or early retirement on or after age 55 after the First Service Period, then the second service based vesting requirement shall be satisfied with respect to the “earned” Incentive Stock Rights.  If the Employee terminates employment on account of normal or early retirement at or after age 55 during the First Service Period, then the service based vesting requirements shall be satisfied with respect to the number of Incentive Stock Rights prorated in accordance with Section 3(b) above.

 

© 2015 Corning Incorporated. All Rights Reserved.

  

  

-2-

 

	
  

	
(b)

	
Involuntary Termination (not “for cause”) – If the Employee’s employment is involuntarily terminated before March 31, 2018, and it is not “for cause,” then the second service based vesting requirement shall be satisfied as of the Employee’s termination date for the prorated number of “earned” Incentive Stock Rights, calculated as the total number of “earned” Incentive Stock Rights multiplied by a ratio with the numerator equal to the number of full calendar months (not to exceed 36) from the start of the First Service Period through the Employee’s termination date, and the denominator of which is 36.

	
  

	
For purposes of this Agreement, “for cause” shall mean the Employee’s:

	
·  

	
conviction of a felony or conviction of a misdemeanor involving moral turpitude (from which no further appeals have been or can be taken);

	
·  

	
a material breach of Corning’s Code of Conduct;

	
·  

	
gross abdication of his duties as an employee of the Corporation (other than due to the Employee’s illness or personal family problems), which conduct remains uncured by the Employee for a period of at least 30 days following written notice thereof to the Employee by the Corporation, in each case as determined in good faith by the Corporation; or

	
·  

	
misappropriation of Corning’s assets, personal dishonesty or business conduct which causes material or potentially material financial or reputational harm for the Corporation.  For purposes of this Section 4(b), no act or failure to act on the Employee’s part shall be deemed to be a termination for cause if done, or omitted to be done, in good faith, and with the reasonable belief that the action or omission was in the best interests of the Corporation.

For purposes of this Agreement, “termination date” shall mean the last day physically worked by the Employee (as compared to the last day of any severance or similar pay).

	
  

	
(c)

	
Death – If the Employee dies while employed after the First Service Period, then the second service based vesting requirement shall be satisfied with respect to the “earned” Incentive Stock Rights.  If Employee’s death occurs during the First Service Period, then the service based vesting requirements shall be satisfied with respect to the number of Incentive Stock Rights prorated in accordance with Section 3(b) above.

	
  

	
(d)

	
Disability – If the Employee’s employment is terminated after the First Service Period as a result of a total and permanent disability (as that term is defined in the Corporation’s long-term disability plan(s)), then the second service based vesting requirement shall be satisfied with respect to the “earned” Incentive Stock Rights.  If the Employee’s total and permanent disability occurs during the First Service Period, then the service based vesting requirements shall be satisfied with respect to the number of Incentive Stock Rights prorated in accordance with Section 3(b) above.

	
  

	
(e)

	
Divestiture, etc. – If the Employee’s employment is terminated due to a reduction in force, divestiture or discontinuance of certain of the Corporation’s operations after the First Service Period, then the second service based vesting requirement shall be satisfied with respect to the “earned” Incentive Stock Rights.  If the Employee’s termination of employment under this subsection occurs during the First Service Period, then the service based vesting requirements shall be satisfied with respect to the number of Incentive Stock Rights prorated in accordance with Section 3(b) above.

	
  

	
(f)

	
Voluntary Termination, Termination for Cause, Dereliction of Duties or Harmful Acts – If the Employee voluntarily leaves the employ of the Corporation, or if the Employee’s employment shall be terminated “for cause”, or if the Employee causes the Corporation to suffer financial harm or damage to its reputation through (i) dishonesty, (ii) material violation of the Corporation's standards of ethics or conduct, or (iii) material deviation from the duties owed the Corporation by the Employee, then all of the Incentive Stock Rights shall be forfeited as of the Employee’s termination date.

	
  

	
(g)

	
Change of Control – In the event of a “change of control” of Corning Incorporated, the provisions of Sections 3 and 4 shall not be applicable and all nonforfeited Incentive Stock Rights shall be “earned” and fully vest.

 

© 2015 Corning Incorporated. All Rights Reserved.

  

  

-3-

	
  

	
For purposes of this Agreement, the term “change of control” shall mean an event that is “a change in the ownership or effective control of the Corporation, or in the ownership of a substantial portion of the assets of the Corporation” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and that also falls within one of the following circumstances:

	
  

	
(i)

	
an offerer (other than Corning) purchases shares of Corning Common Stock pursuant to a tender or exchange offer for such shares;

	
  

	
(ii)

	
any person (as such term is used in Sections 13(d) and 14(d) (2) of the Securities Exchange Act of 1934) is or becomes the beneficial owner, directly or indirectly, of Corning securities representing 50% or more of the combined voting power of Corning’s then outstanding securities;

	
  

	
(iii)

	
the membership of Corning’s Board of Directors changes as the result of a contested election or elections, such that a majority of the individuals who are Directors at any particular time were initially placed on the Board of Directors as a result of such a contested election or elections occurring within the previous two years; or

	
  

	
(iv)

	
the consummation of a merger in which the Corporation is not the surviving corporation, consolidation, sale or disposition of all or substantially all of Corning’s assets or a plan of partial or complete liquidation approved by the Corporation’s shareholders.

	
5. 

	
Time of Payment.  “Earned” Incentive Stock Rights that have vested shall be paid as of the earliest of the following dates:

	
  

	
(a)

	
Death or Separation from Service– If the Employee dies or “separates from service” (within the meaning of Section 409A of the Code) from Corning, the Employee’s Incentive Stock Rights that are “earned” and vested as of the date of the Employee’s death or separation from service shall be paid (net of tax withholdings as of the date of death or separation) and distributed as net shares of Common Stock within 30 days after the date of death or separation from service.

	
  

	
(b)

	
April 16, 2018.  If the Employee does not “separate from service” (within the meaning of Section 409A of the Code) from Corning on or before March 31, 2018, the Employee’s “earned” Incentive Stock Rights that are vested as of March 31, 2018 shall be paid (net of tax withholdings as of April 16, 2018) and distributed as net shares of Common Stock  within 30 days following April 16, 2018.

	
  

	
(c)

	
Change of Control - In the event of a Change of Control, the Employee’s Incentive Stock Rights that are vested as of the date of the Change of Control shall be paid/distributed as net shares of Common Stock (net of tax withholdings) as of/and within 30 days following the date of the Change of Control.

	
  

	
(d)

	
Special Distributions to Pay Social Security, Medicare Taxes - In the event that “earned” Incentive Stock Rights become subject to Social Security and/or Medicare taxes prior to a distribution event described in Sections 5(a)-(c) above (i.e., because the payment of the Incentive Stock Rights is no longer subject to a substantial risk of forfeiture) a partial distribution of the Incentive Stock Rights will be made to pay the Federal Insurance Contributions Act (“FICA”) tax imposed under Code sections 3101, 3121(a), and 3121(v)(2) on the Employee’s “earned” Incentive Stock Rights (the “FICA Amount”).  Additionally, a partial distribution of the Incentive Stock Rights will be made to pay the income tax at source on wages imposed under section 3401 or the corresponding withholding provisions of applicable state, local, or foreign tax laws as a result of the payment of the FICA Amount, and to pay the additional income tax at source on wages attributable to the pyramiding section 3401 wages and taxes.  However, the total payment under this provision must not exceed the aggregate of the FICA Amount, and the income tax withholding related to such FICA Amount.  Any subsequent amount that is paid under this Agreement will be reduced by the amount paid under this Section 5(d).

 

© 2015 Corning Incorporated. All Rights Reserved.

  

  

-4-

 

Notwithstanding the foregoing, if an amount becomes payable under the above rules due to the Employee incurring a “separation from service” within the meaning of Section 409A of the Code (for this purpose, payments on account of death are not considered payments made on account of separation from service), and the Employee is a “specified employee” (within the meaning of Section 409A of the Code) as of the date of separation from service, the Employee’s “earned” Incentive Stock Rights that are vested as of the date of the Employee’s separation from service shall be paid/distributed as net shares of Common Stock (net of tax withholdings) on or after the first day of the seventh month after the Employee’s separation from service and before the 15th day of the seventh month following the date the Employee separates from service.

All Incentive Stock Rights that have not vested as of the date any Incentive Stock Right is paid shall be forfeited; provided that any distributions under Section 5(d) shall not result in the forfeiture of any unpaid Incentive Stock Rights.

	
6. 

	
Form of Payment. At the time specified in Section 5, Corning shall make an appropriate book-entry, for the number of shares of Common Stock equal to the number of “earned” Incentive Stock Rights that are vested (net of tax withholdings).  An Employee shall have no further rights with regard to the Incentive Stock Rights once the underlying shares of Common Stock have been delivered.  The number of shares of Common Stock which Corning must deliver pursuant to this Agreement shall be reduced by the value of all taxes which the Corporation is required by law to withhold by reason of such delivery.

	
7.  

	
Voting and Dividend Rights.  Because the Incentive Stock Rights do not constitute shares of Common Stock (but rather just the right to receive shares in the future upon satisfaction of the specified service based vesting conditions), the grant or vesting of Incentive Stock Rights shall not provide the Employee with any shareholder rights (such as voting or dividend rights) until the Incentive Stock Rights are converted to shares of Common Stock.

	
8.  

	
Dividend Equivalents.  The Employee’s earned and vested Incentive Stock Rights shall be credited with dividend equivalents in a manner that is consistent with the manner in which dividends are paid on shares of Common Stock.  Dividend equivalents shall be paid in cash at the same time that the Incentive Stock Rights are paid in Section 5.  The Corporation shall establish rules and administrative processes that apply to dividend equivalents that shall be binding on the Employee.  No dividend equivalents shall be paid on Incentive Stock Rights that have been forfeited or paid.

	
9.  

	
Transfers.  If the Employee is transferred from Corning to a subsidiary (being a 50% or greater owned entity), or vice versa or from one subsidiary to another, the Employee’s employment shall not be deemed to have terminated.

	
10. 

	
Section 409A and Unfunded Plan.  This Agreement is intended to comply with the requirements of Section 409A of the Code  and shall be interpreted and administered in accordance with that intent.  If any provision of the agreement would otherwise conflict with or frustrate this intent, that provision will be interpreted and deemed amended so as to avoid the conflict.  This Agreement is an unfunded deferred compensation plan.

	
11. 

	
Modification/Interpretation.  Any modification of the terms of this Agreement must be approved, and any dispute, disagreement or matter of interpretation which shall arise under this Agreement shall be finally determined by the Compensation Committee of the Corning Board of Directors in its absolute discretion.

© 2015 Corning Incorporated. All Rights Reserved.

  

  

-5-

 

       IN WITNESS WHEREOF, this Agreement has been duly executed by Corning .

CORNING INCORPORATED

	
By:

	
/s/ John P. MacMahon

	  
	  	
John P. MacMahon

	  
	  	
Senior Vice President,

	  
	  	
Global Compensation & Benefits

	  
	  	
Corning Incorporated

	  

 

 

© 2015 Corning Incorporated. All Rights Reserved.exhibit1065.htm

 

  

-1 -

Exhibit 10.65

Corporate Performance Plan For 2015

CORNING INCORPORATED

CASH PERFORMANCE UNIT AGREEMENT

(Terms and Conditions)

This Cash Performance Unit Agreement (“Agreement”) dated February 4, 2015 between Corning Incorporated (the “Company”) and the employee (the “Employee”) is subject in all respects to the Company’s 2012 Long-Term Incentive Plan as amended from time to time (the “Plan”), a copy of which may be obtained from the Company's Secretary at One Riverfront Plaza, Corning, New York  14831.  Capitalized terms not otherwise defined herein shall have the meaning ascribed thereto in the Plan.

	
1.

	
Award of Units.  The Company hereby awards to the Employee  Cash Performance Units (the “Cash Units”).

Each Cash Unit shall entitle the Employee to receive from the Company an amount equal to $1. The Cash Units, if any, shall be paid to the Employee at the time set forth in Section 6 and in the manner set forth in Section 7 provided that both the “Performance-Based Vesting Requirement” set forth in Section 3 and the “Service Based Vesting Requirement” set forth in Section 4 are satisfied.  Prior to vesting pursuant to Sections 3 and 4, the Cash Units shall not be earned and shall remain subject to forfeiture.

	
2.  

	
Non-Transferability.  The Cash Units may not be sold, assigned, transferred, pledged or otherwise encumbered by or on behalf of or for the benefit of the Employee other than by last will and testament, by the laws of descent and distribution, pursuant to a domestic relations order or as otherwise permitted by the Committee pursuant to Section 12 of the Plan.

	
3.  

	
Performance-Based Vesting Requirement.

	
  

	
(a)

	
Within ninety days following the beginning of each fiscal year ending on December 31st 2015, 2016 and 2017 (each such year, an “Annual Performance Period” and collectively, the “Performance Period”), the Compensation Committee of the Company’s Board of Directors (the “Committee”) shall determine performance targets (each a “Performance Target”) applicable to the current fiscal year.  Such targets will be communicated annually to the Employee.

For purposes of determining the number of Cash Units that the Employee will earn at the end of the Performance Period, performance will be calculated as the simple average of the actual level of attainment of the Performance Targets for each Annual Performance Period as determined by the Committee.  Any Cash Units that are not earned pursuant to Sections 3 and 4 at the end of the Performance Period shall be forfeited.

	
  

	
(b)

	
Any Cash Units that are earned pursuant to Sections 3 and 4 (after taking into account the proration adjustments referenced in Section 4 (the “Proration Factor”), if applicable) shall be referred to as the “Earned Units,” provided, however, that if the numerator of the Proration Factor is less than 3, all Cash Units shall be forfeited upon a termination of employment for any reason.

	
4.  

	
Service Based Vesting Requirement.  Subject to the exceptions set forth below, the Employee must remain in continuous employment with the Company Group until the expiration of the Performance Period in order to vest in the Earned Units.  If the Employee’s employment with the Company Group terminates on or before the expiration of the Performance Period, any Earned Units shall be treated in the manner set forth in this Section 4.

© 2015 Corning Incorporated. All Rights Reserved.

  

  

-2 -

	
Event

	
Termination Date Occurs in 1st Annual Performance Period

	
Termination Date Occurs After 1st Annual Performance Period

	
# of Earned Units

Proration Factor (subject to the limitation in

Section 3(b))

	
(a) Retirement at or After Age 55

	
Employee vests in 100% of the Earned Units (after taking the Proration Factor into account) based on actual performance over the Performance Period

	
Employee vests in 100% of the Earned Units based on actual performance over the Performance Period

	
Prorated by a ratio the numerator of which is the number of full calendar months the Employee was actively employed during the first Annual Performance Period and the denominator of which is 12

	
(b) Termination without Cause

	
Employee vests in 100% of the Earned Units (after taking the Proration Factor into account) based on actual performance over the Performance Period

 

	
Employee vests in 100% of the Earned Units (after taking the Proration Factor into account) based on actual performance over the Performance Period

	
Prorated by a ratio the numerator of which is the number of full calendar months the Employee was actively employed during the Performance Period through the Termination Date, and the denominator of which is 36

	
(c) Death, or

 

(d) Disability, or

 

(e) Reduction in Force, Divestiture or Discontinuance of Certain Company Group’s Operations, or

 

(f) Change of Control

	
Employee vests in 100% of the Earned Units (after taking the Proration Factor into account) and the Performance Targets shall be deemed attained based on actual performance for the first Annual Performance Period and 100% target performance for all other Annual Performance Periods

	
Employee vests in 100% of the Earned Units and the Performance Targets shall be deemed attained at actual performance for any completed Annual Performance Period and 100% target performance for all other Annual Performance Periods

	
Prorated by a ratio the numerator of which is the number of full calendar months the Employee was actively employed during the first Annual Performance Period and the denominator of which is 12.

 

	
(g) Voluntary Termination or Termination for Cause

	
Employee forfeits all of the Cash Units

	
Employee forfeits all of the Cash Units

	
None

	
5.

	
Definitions. For purposes of this Agreement,

 

	
  

	
(a)

	
“Termination Date” shall mean the last day on which the Employee provides services to the Company Group (notwithstanding any applicable severance periods).

	
  

	
(b)

	
“Cause” shall mean the Employee’s:

 

	
  

	
(A)

	
conviction of a felony or conviction of a misdemeanor involving moral turpitude (from which no further appeals have been or can be taken);

 

	
  

	
(B)

	
material breach of the Company Group’s Code of Conduct;

	
  

	
(C)

	
gross abdication of duties as an employee of the Company Group, which conduct remains uncured by the Employee for a period of at least 30 days following written notice thereof to the Employee by the Company Group, in each case as determined in good faith by the Company; or

© 2015 Corning Incorporated. All Rights Reserved.

  

  

-3-

 

	
  

	
(D)

	
misappropriation of the Company Group’s assets, personal dishonesty or business conduct which causes material or potentially material financial or reputational harm for the Company;

 

provided, however, that no act or failure to act on the Employee’s part shall be deemed to be a termination for Cause if done, or omitted to be done, in good faith, and with the reasonable belief that the action or omission was in the best interests of the Company Group.

	
  

	
(c)

	
“Disability” shall mean the Employee’s termination of employment with the Company Group as a result of a total and permanent disability as that term is defined in the long-term disability plan applicable to the Employee.

	
  

	
(d)

	
“Change of Control” shall mean an event that is “a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the assets of the Company” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended and the regulations and guidance promulgated thereunder (the “Code”), and that also falls within one of the following circumstances:

 

	
  

	
(A)

	
an offerer (other than the Company) purchases shares of the Company’s Common Stock pursuant to a tender or exchange offer for such shares;

 

	
  

	
(B)

	
any person (as such term is used in Sections 13(d) and 14(d) (2) of the Securities Exchange Act of 1934) is or becomes the beneficial owner, directly or indirectly, of securities representing 50% or more of the combined voting power of the Company’s then outstanding securities;

	
  

	
(C)

	
the membership the Company’s Board of Directors changes as the result of a contested election or elections, such that a majority of the individuals who are directors at any particular time were initially placed on the Board of Directors as a result of such a contested election or elections occurring within the previous two years; or

 

	
  

	
(D)

	
the consummation of a merger in which the Company is not the surviving corporation, consolidation, sale or disposition of all or substantially all of the Company’s assets or a plan of partial or complete liquidation approved by the Company’s shareholders;

 

	
6.  

	
Time of Payment.

	
  

	
(a)

	
Except as noted below, the Earned Units that have vested pursuant to Sections 3 and 4 shall be paid within 60 days following the expiration of the Performance Period.

	
  

	
(b)

	
In the event of a termination of employment due to Sections 4(c), 4(d) or 4(e),  the Earned Units that vest shall be paid within 60 days following (i) the Termination Date, or (ii) the determination of results for the first Annual Performance Period, whichever date is later.

	
  

	
(c)

	
In the event of a Change of Control, the Earned Units that vest in accordance with Section 4(f) shall be paid within 60 days following (i) the effective date of the Change of Control, or (ii) the determination of results for the first Annual Performance Period, whichever date is later.

	
  

	
(d)

	
The applicable date on which Cash Units are paid pursuant to this Section 6 is referred to as the “Payment Date.”  All Cash Units that have not been earned and vested as of the Payment Date shall be forfeited.

	
  

	
(e)

	
In the event that the Earned Units become subject to Social Security and/or Medicare taxes prior to the applicable Payment Date, the Company shall withhold a number of Cash Units equal in value to (i) the applicable Federal Insurance Contributions Act (“FICA”) tax imposed under Code Sections 3101, 3121(a), and 3121(v)(2) on the Cash Units (the “FICA Amount”) and (ii) the applicable federal, state, local or foreign income taxes owedas a result of the withholding of the Cash Units to pay the FICA Amount.  Any subsequent payment under this Agreement will be reduced by the amount withheld under this Section 6(e).

© 2015 Corning Incorporated. All Rights Reserved.

  

  

-4-

	
7.  

	
Form of Payment.

	
  

	
(a)

	
Unless otherwise specified by the Committee at the Payment Date pursuant to Section 7(b), Earned Units shall be paid in cash.

	
  

	
(b)

	
On or prior to the Payment Date, the Committee may elect, to pay any Earned Units in shares of the Company’s common stock, par value $0.50 per share (“Common Stock”).  If paid in Common Stock, the Company shall make an appropriate book-entry, for the number of whole shares of Common Stock equal in value to the number of Earned Units that are vested as of the business day preceding the Payment Date, with any resulting fractional shares being delivered to the Employee in cash.

	
  

	
(c)

	
The Employee shall have no further rights with regard to the Cash Units once the cash or shares of Common Stock have been delivered pursuant to this Section 7.

	
  

	
(d)

	
All payments made pursuant to this Agreement shall be reduced by the amount of all tax withholdings and other permitted deductions. To the extent the Cash Units are paid in shares of Common Stock, the Company may withhold shares of Common Stock to satisfy any tax withholdings and permitted deductions.

	
8.  

	
Voting and Dividend Rights.  The Cash Units do not entitle the Employee to any of the rights of a shareholder of the Company (such as voting or dividend rights).

	
9.  

	
Recoupment/Claw-back.  Notwithstanding anything in this Agreement to the contrary, the Cash Units and any payments made pursuant to this Agreement shall be subject to claw-back or recoupment as mandated by applicable law, rules, regulations or Company policy as enacted, adopted or modified from time to time.

	
10.  

	
Transfers.  If the Employee is transferred from the Company to a Subsidiary, from a Subsidiary to the Company or from one Subsidiary to another, the Employee’s employment  with the Company Group shall not be deemed to have terminated; provided, however, that the Subsidiary is owned 50% or greater by the Company Group.

	
11.  

	
Section 409A.

	
  

	
(a)

	
The Cash Units are intended to comply with or be exempt from Section 409A of the Code and shall be administered and interpreted in accordance with that intent.  If any provision of the Plan or this Agreement would, in the reasonable good faith judgment of the Committee, result or likely result in the imposition on the Employee of a penalty tax under Section 409A, the Committee may modify the terms of the Plan or this Agreement, without the consent of the Employee, in the manner that the Committee may reasonably and in good faith determine to be necessary or advisable to avoid the imposition of such penalty tax.  This Section 11 does not create an obligation on the part of the Company to modify the Plan or this Agreement and does not guarantee that the Cash Units will not be subject to taxes, interest and penalties under Section 409A.

	
  

	
(b)

	
Notwithstanding anything to the contrary in the Plan or this Agreement, to the extent that the Cash Units constitute deferred compensation for purposes of Section 409A and the Employee is a “Specified Employee” (within the meaning of the Committee’s established methodology for determining “Specified Employees” for purposes of Section 409A), no payment or distribution of any amounts with respect to the Cash Units that are subject to Section 409A may be made before the 15th day of the seventh month following the Employee’s “Separation from Service” from the Company (as defined in Section 409A) or, if earlier, the date of the Employee’s death.

	
  

	
(c)

	
The actual Payment Date pursuant to Section 6 shall be within the sole discretion of the Company.  In no event may the Employee be permitted to control the year in which settlement occurs.

© 2015 Corning Incorporated. All Rights Reserved.

  

  

-5-

	
12.  

	
Modification/Interpretation.  The Committee shall have the power to alter, amend, modify or terminate the Plan or this Agreement at any time; provided, however, that no such termination, amendment or modification may adversely affect, in any material respect, the Employee’s  rights under this Agreement without the Employee’s consent.  Notwithstanding the foregoing, the Company shall have broad authority to amend this Agreement without the consent of the Employee to the extent it deems necessary or desirable (a) to comply with or take into account changes in or interpretations of, applicable tax laws, securities laws, employment laws, accounting rules and other applicable laws, rules and regulations, (b) to take into account unusual or nonrecurring events or market conditions, or (c) to take into account significant acquisitions or dispositions of assets or other property by the Company.  Any amendment, modification or termination shall, upon adoption, become and be binding on all persons affected thereby without requirement for consent or other action with respect thereto by any such person.  The Committee shall give written notice to the Employee of any such amendment, modification or termination as promptly as practicable after the adoption thereof.  The foregoing shall not restrict the ability of the Employee and the Company by mutual consent to alter or amend the terms of the Cash Units in any manner that is consistent with the Plan and approved by the Committee.

	
13.  

	
Headings.  The headings of sections and subsections are included solely for convenience of reference and shall not affect the meaning of the provisions of this Agreement.

	
14.  

	
Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

	
15.  

	
Entire Agreement.  This Agreement and the Plan constitute the entire agreement between the parties hereto with regard to the subject matter hereof.  They supersede all other agreements, representations or understandings (whether oral or written and whether express or implied) that relate to the subject matter hereof.

	
16.  

	
Governing Law.  Except as to matters of federal law, this Agreement and all actions taken thereunder shall be governed by and construed in accordance with the laws of the State of New York  (other than its conflict of law rules).

IN WITNESS WHEREOF, this Agreement has been duly executed by Corning.

CORNING INCORPORATED

	
By:

	
/s/ John P. MacMahon

	  
	  	
John P. MacMahon

	  
	  	
Senior Vice President,

	  
	  	
Global Compensation & Benefits

	  
	  	
Corning Incorporated

	  

© 2015 Corning Incorporated. All Rights Reserved.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}]]