Document:

exhibit_10-42.htm

 

EXHIBIT 10.42

 

 

FIRST AMENDMENT

 

 

TO THE

 

 

SOLUTIA 2008 RETIREE WELFARE PLAN

 

WHEREAS, Solutia Inc. (the “Company”) established the Solutia 2008 Retiree Welfare Plan (the “Plan”), generally effective as of February 28, 2008;

 

WHEREAS, by agreement executed January 14, 2008, the Company and Marshall & Ilsley Trust Company N.A. established the Solutia Retiree Welfare Trust (the “Trust”) effective February 28, 2008, in accordance with the First Amended & Restated Retiree Settlement Agreement dated July 10, 2007 (the “Settlement Agreement”) entered into in connection with the bankruptcy case filed on December 16, 2003 in the United States Bankruptcy Court for the Southern District of New York (Jointly Administered Case No. 03-17949 (PCB));

 

WHEREAS, the Company previously contributed cash and stock to the Trust, and the Trust is a source of funding for certain retiree medical, retiree life and disability benefits under the Plan;

 

WHEREAS, the Retiree Liaison Committee was formed under the Settlement Agreement and given the power to take certain actions on behalf of retirees, which includes the authority to review and negotiate over proposed Plan amendments and review and challenge the plan administrator’s calculation of medical expense contributions;

 

WHEREAS, the Company and the Retiree Liaison Committee have entered into that certain Agreement Regarding the Solutia Retiree Welfare Trust dated July 29, 2011 (the “2011 Trust Modification Agreement”); and

 

WHEREAS, the Company now desires to amend the Plan to reflect the terms of the 2011 Trust Modification Agreement;

 

NOW, THEREFORE, in accordance with the right and authority of the Company to amend the Plan as described in Section 16 of the Plan, the Company hereby amends the Plan in the following particulars, effective as of the dates specified herein:

 

1.         Section 3.3 of the Plan is hereby amended and restated in its entirety, effective as of January 1, 2011, as follows:

 

3.3  Defined Dollar Limit Amount.  The Defined Dollar Limit Amount shall be the difference between the Annual Cost Per Covered Group and the Defined Dollar Limit applicable to a Covered Group.

 

	
  

	 

	  	
- 1 -

	  

 

  

  

  

The Defined Dollar Limit applicable to a Pre-Spin Covered Group with respect to a Retired Employee or Dependent Spouse (for Groups IIB, V and VI) or Surviving Spouse who is not Medicare Eligible shall be determined by the following table:

	
COVERED GROUP

	 	
GROUPS IA, IB, IIA, 

IIB, IIIA, IIIB, IV, V, 

and VI

	 
	
Retiree Only

	 	$	7,250	 
	
Dependent Spouse or Surviving Spouse Only

	 	$	5,750	 
	
Retiree & Spouse (both under 65)

	 	$	13,000	 
	
Retiree (under 65) & Spouse (over 65)

	 	$	9,250	 
	
Retiree & Child(ren)

	 	$	9,650	 
	
Retiree, Spouse (under 65) & Child(ren)

	 	$	15,400	 
	
Retiree (under 65), Spouse (over 65) & Children

	 	$	11,650	 
	
Spouse (under 65) & Child(ren)

 

**Applicable only for Class IIA, IIB, 4, 5 and 6

	 	$	5,750	 

The Defined Dollar Limit applicable to a Pre-Spin Covered Group with respect to a Retired Employee or Surviving Spouse who is Medicare Eligible shall be determined by the following table:

	
COVERED GROUP

	 	
GROUPS 

IA and IIIA

	 	 	
GROUPS 

IB and IIIB

	 	 	
GROUPS 

IIA, IIB, IV, 

V, and VI

	 
	
Retiree Only

	 	$	2,650	 	 	$	2,450	 	 	$	2,300	 
	
Surviving Spouse Only

	 	$	2,300	 	 	$	2,125	 	 	$	2,000	 
	
Retiree (over 65) & Spouse (under 65)

	 	$	8,400	 	 	$	8,200	 	 	$	8,050	 
	
Retiree & Spouse (both over 65)

	 	$	4,950	 	 	$	4,575	 	 	$	4,300	 
	
Retiree & Child(ren)

	 	$	5,050	 	 	$	4,850	 	 	$	4,700	 
	
Retiree, Spouse (under 65) & Child(ren)

	 	$	10,800	 	 	$	10,600	 	 	$	10,450	 
	
Retiree, Spouse (over 65) & Children

	 	$	7,350	 	 	$	6,975	 	 	$	6,700	 
	
Spouse (over 65) & Child(ren)

	 	$	4,700	 	 	$	4,525	 	 	$	4,400	 

 

 

  

  

  

The Defined Dollar Limit applicable to a Post-Spin Covered Group with respect to a Retired Employee or Dependent Spouse (for Groups IIB, V and VI) or Surviving Spouse who is not Medicare Eligible shall be determined by the following table:

 

	
COVERED GROUP

	 	
GROUPS IA, IB, IIA, 

IIB, IIIA, IIIB, IV, V, 

and VI

	 
	
Retiree Only

	 	$	6,600	 
	
Dependent Spouse or Surviving Spouse Only

	 	$	5,100	 
	
Retiree & Spouse (both under 65)

	 	$	11,700	 
	
Retiree (under 65) & Spouse (over 65)

	 	$	7,950	 
	
Retiree & Child(ren)

	 	$	9,000	 
	
Retiree, Spouse (under 65) & Child(ren)

	 	$	14,100	 
	
Retiree (under 65), Spouse (over 65) & Children

	 	$	10,350	 
	
Spouse (under 65) & Child(ren)

 

**Applicable only for Class IIA, IIB, 4, 5 and 6

	 	$	5,100	 

The Defined Dollar Limit applicable to a Post-Spin Covered Group with respect to a Retired Employee or Surviving Spouse who is Medicare Eligible shall be determined by the following table:

	
COVERED GROUP

	 	
GROUPS 

IA and IIIA

	 	 	
GROUPS 

IB and IIIB

	 	 	
GROUPS 

IIA, IIB, IV, 

V, and VI

	 
	
Retiree Only

	 	$	2,000	 	 	$	1,800	 	 	$	1,650	 
	
Surviving Spouse Only

	 	$	1,650	 	 	$	1,475	 	 	$	1,350	 
	
Retiree (over 65) & Spouse (under 65)

	 	$	7,100	 	 	$	6,900	 	 	$	6,750	 
	
Retiree & Spouse (both over 65)

	 	$	3,650	 	 	$	3,275	 	 	$	3,000	 
	
Retiree & Child(ren)

	 	$	4,400	 	 	$	4,200	 	 	$	4,050	 
	
Retiree, Spouse (under 65) & Child(ren)

	 	$	9,500	 	 	$	9,300	 	 	$	9,150	 
	
Retiree, Spouse (over 65) & Children

	 	$	6,050	 	 	$	5,675	 	 	$	5,400	 
	
Spouse (over 65) & Child(ren)

	 	$	4,050	 	 	$	3,875	 	 	$	3,750	 

 

For an Employee who is not covered by a collective bargaining agreement and who becomes a Retired Employee after December 31, 2002 or the Dependent Spouse (for Groups IIB, V and VI) or Surviving Spouse of such a Retired Employee, the applicable Defined Dollar Limit shall be the amount determined under the above charts multiplied by a fraction, the numerator of which is the Retired Employee’s complete years of Service (but no more than 25) and the denominator of which is 25.

 

2.           Section 16.1(d) of the Plan is hereby amended, effective as of the date hereof, by restating the last sentence thereof to read as follows:

 

Conversely, if after the effective date of this Plan it is amended to add additional benefits or to reduce the costs of the Participant or Dependent, such additional benefits or cost reductions may be eliminated or reduced by subsequent amendments without materially and adversely affecting the benefits or costs of the Participant or Dependent; provided that any additional benefits or Participant or Dependent cost reductions resulting from that certain Agreement Regarding the Solutia Retiree Welfare Trust, dated July 29, 2011, by and between the Company and the Retiree Liaison Committee shall be outside the scope of this sentence.

 

  

  

  

 

*      *      *      *      *

 

IN WITNESS WHEREOF, the undersigned hereby certifies that this First Amendment to the Solutia 2008 Retiree Welfare Plan was duly adopted by the Company on July 29, 2011.

	  	
SOLUTIA INC.

 

 

By: /s/Paul J. Berra III

Name:  Paul J. Berra III

Title: Sr. V.P., General Counsel

	
Acknowledged and Accepted:

 

RETIREE LIAISON COMMITTEE

 

By:  /s/Kenneth M. Kettler

Name:  Kenneth M. Kettler

Title: Committee Chairmanjnpr123111ex10.57

EXHIBIT 10.57    
JUNIPER NETWORKS, INC.
SEVERANCE AGREEMENT
This Severance Agreement (the “Agreement”) is made and entered into by and between ______________ (the “Employee”) and Juniper Networks, Inc., a Delaware Corporation (the “Company”), effective as of ___________, 2012 (the “Effective Date”).
RECITALS
The Compensation Committee believes that it is imperative to provide the Employee with certain severance benefits upon certain terminations of employment.  These benefits will provide the Employee with enhanced financial security and incentive and encouragement to remain with the Company.
Certain capitalized terms used in the Agreement are defined below.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto agree as follows:
1.Term of Agreement.  This Agreement shall terminate upon the later of (i) January 1, 2015 or (ii) if Employee is terminated involuntarily by Company without Cause prior to January 1, 2015, the date that all of the obligations of the parties hereto with respect to this Agreement have been satisfied.
2.At-Will Employment.  The Company and the Employee acknowledge that the Employee's employment is and shall continue to be at-will, as defined under applicable law, except as may otherwise be specifically provided by applicable law or under the terms of any written formal employment agree-ment or offer letter between the Company and the Employee (an “Employment Agreement”). This Agreement does not constitute an agreement to employ Employee for any specific time. 
3.Severance Benefits.
(a)In the event the Employee is terminated involuntarily by Company without Cause, as defined below, and provided the Employee executes and does not revoke a full release of claims with the Company (in a form satisfactory to the Company and effective no later than March 15 of the year following the year in which the termination occurs) (the “Release”), the Employee will be entitled to receive the severance benefits set out in subsections (i) and (ii).  For purposes of this Agreement, “Cause” is defined as: (i) willfully engaging in gross misconduct that is demonstrably injurious to Company; (ii) willful act or acts of dishonesty or malfeasance undertaken by the individual; (iii) conviction of or a plea of nolo contendere to a felony; or (iv) willful and continued refusal or failure to substantially perform duties with Company (other than incapacity due to physical or mental illness); provided that the action or conduct described in clause (iv) above will constitute “Cause” only if such failure continues after the Company's CEO, COO or Board of Directors has provided the individual with a written demand for substantial performance setting forth in detail the specific respects in which it believes the individual has willfully and not substantially performed the individual's duties thereof and has been provided a reasonable opportunity (to be not less than 30 days) to cure the same.
(i)A cash payment in a lump sum (less any withholding taxes) equal to [12 months for Grade 15, 15 months for Grade 16, 16.5 months for Grade 17] months of base salary (as in effect immediately prior to the termination). 
(ii)In lieu of continuation of benefits, Employee shall receive $18,000 (whether 

or not Employee elects COBRA).
(b)Release Effectiveness.  The receipt of any severance pursuant to Section 3(a) will be subject to Employee signing and not revoking the Release and provided that such Release is effective within sixty (60) days following the termination of employment.  No severance pursuant to such Section will be paid or provided until the Release becomes effective.  In the event the termination occurs at a time during the calendar year where it would be possible for the Release to become effective in the calendar year following the calendar year in which the Employee's termination occurs, any severance that would be considered Deferred Compensation Separation Benefits (as defined in Section 3(d)) will be paid on the first payroll date to occur during the calendar year following the calendar year in which such termination occurs.  
(c)Timing of Severance Payments.  Any cash severance payment to which Employee is entitled shall be paid by the Company to Employee in a single lump sum in cash on the Release's effective date.
(d)Change of Control Benefits.  In the event the Employee receives severance and other benefits pursuant to a change in control agreement that are greater than or equal to the amounts payable hereunder, then the Employee shall not be entitled to receive severance or any other benefits under this Agreement. 
(e)Section 409A.  
(i)Notwithstanding anything to the contrary in this Agreement, if Employee is a “specified employee” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the final regulations and any guidance promulgated thereunder (“Section 409A”) at the time of Employee's termination (other than due to death) or resignation, then the severance payable to Employee, if any, pursuant to this Agreement, when considered together with any other severance payments or separation benefits that are considered deferred compensation under Section 409A (together, the “Deferred Compensation Separation Benefits”) that are payable within the first six (6) months following Employee's termination of employment, will become payable on or within ten days following the first payroll date that occurs on or after the date six (6) months and one (1) day following the date of Employee's termination of employment.  All subsequent Deferred Compensation Separation Benefits, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit.  Notwithstanding anything herein to the contrary, if Employee dies following his termination but prior to the six (6) month anniversary of his termination, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of Employee's death and all other Deferred Compensation Separation Benefits will be payable in accordance with the payment schedule applicable to each payment or benefit.  Each payment and benefit payable under this Agreement is intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.
(ii)Any amount paid under this Agreement that satisfies the requirements of the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations shall not constitute Deferred Compensation Separation Benefits for purposes of clause (i) above.
(iii)Any amount paid under this Agreement that qualifies as a payment made as a result of an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that do not exceed the Section 409A Limit shall not constitute Deferred Compensation Separation Benefits for purposes of clause (i) above.  “Section 409A Limit” will mean the lesser of two (2) times: (i) Employee's annualized compensation based upon the annual rate of pay paid to Employee during the Employee's taxable year preceding the Employee's taxable year of Employee's termination of employment as determined under, and with such adjustments as are set forth in, Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto; or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Employee's employment is terminated.

(iv)The foregoing provisions are intended to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply.  The Company and Employee agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Employee under Section 409A.
4.Successors.
(a)The Company's Successors.  Any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company's business and/or assets shall assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession.  For all purposes under this Agreement, the term “Company” shall include any successor to the Company's business and/or assets which executes and delivers the assumption agreement described in this Section 4(a) or which becomes bound by the terms of this Agreement by operation of law. The term “Company” shall also include any direct or indirect that is majority owned by Juniper Networks, Inc.
(b)The Employee's Successors.  The terms of this Agreement and all rights of the Employee hereunder shall inure to the benefit of, and be enforceable by, the Employee's personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.
5.Notice.  All notices and other communications required or permitted here-under shall be in writing, shall be effective when given, and shall in any event be deemed to be given upon receipt or, if earlier, (a) five (5) days after deposit with the U.S. Postal Service or other applicable postal service, if delivered by first class mail, postage prepaid, (b) upon delivery, if delivered by hand, (c) one (1) business day after the business day of deposit with Federal Express or similar overnight courier, freight prepaid or (d) one (1) business day after the business day of facsimile transmission, if delivered by facsimile transmission with copy by first class mail, postage prepaid, and shall be addressed (i) if to Employee, at his or her last known residential address and (ii) if to the Company, at the address of its principal corporate offices (attention:  Secretary), or in any such case at such other address as a party may designate by ten (10) days' advance written notice to the other party pursuant to the provisions above.
6.Miscellaneous Provisions.
(a)No Duty to Mitigate.  The Employee shall not be required to mitigate the amount of any payment contemplated by this Agreement, nor shall any such payment be reduced by any earnings that the Employee may receive from any other source.
(b)Waiver.  No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Employee and by an authorized officer of the Company (other than the Employee).  No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time.
(c)Headings.  All captions and section headings used in this Agreement are for convenient reference only and do not form a part of this Agreement.
(d)Entire Agreement.  This Agreement constitutes the entire agreement of the parties hereto and supersedes in their entirety all prior representations, understandings, undertakings or agreements (whether oral or written and whether expressed or implied) of the parties with respect to the subject matter hereof.
(e)Choice of Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California.  The Superior Court of Santa Clara County and/or the United States District Court for the Northern District of California shall have exclusive jurisdiction and venue over all controversies in connection with this Agreement.

(f)Severability.  The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect.
(g)Withholding.  All payments made pursuant to this Agreement will be subject to withholding of applicable income and employment taxes.
(h)Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.
IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year set forth below.

COMPANY                    JUNIPER NETWORKS, INC.
By:                            
Name:     ____________________________________
Title:                            

EMPLOYEE                                
Name:

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