Document:

EXHIBIT 10.1

 

EMPLOYMENT AGREEMENT

 

This
Employment Agreement (“Agreement”) by and between Sealed Air Corporation (US) (“SAC”)
with an office at 200 Riverfront Boulevard, Elmwood Park, NJ 07407 and Robert
A. Pesci (“Pesci”).

 

WHEREAS,
Pesci resigned his positions as a Senior Vice President of Sealed Air
Corporation, SAC’s parent company, and as President of SAC’s Protective
Packaging Business Unit in 2009 but has continued as an employee of SAC since
then;

 

WHEREAS,
SAC desires Pesci to continue his employment through December 31, 2010,
and Pesci desires to continue his employment during the same period;

 

NOW,
THEREFORE, in consideration of the premises and of the mutual covenants and
agreements herein contained, the parties hereto agree as follows:

 

1.               The parties understand and
agree that this Agreement is contingent on the approval of the Organization and
Compensation Committee of the Board of Directors of Sealed Air Corporation, SAC’s
parent company, (“Sealed Air”) and upon such approval the Agreement shall be
effective upon such approval and will continue through December 31,
2010.  This Agreement may be extended by
mutual agreement for an additional period of not more than six months at a
reduced compensation level.

 

2.               SAC agrees to employ Pesci
and Pesci accepts employment by SAC on the terms and conditions of this
Agreement.  During the term of this
Agreement, Pesci will provide such services as may be assigned by the President
of SAC or his designee, which may include serving as the President and a Manager
of SAC affiliate Biosphere Industries LLC, subject to Pesci’s performance of
his duties and services in a manner acceptable to the President of SAC as
determined in the President’s sole discretion.

 

3.               During the term of this
Agreement Pesci shall continue to be entitled to receive the same salary as he
was receiving at the end of 2009.  He
will also be entitled to participate in the employee benefits programs that he
participated in at the end of 2009 on the terms that are offered to employees
of SAC generally, with the exception of the programs that are specifically
addressed in this Employment Agreement. 
Without limiting the foregoing, Pesci shall be entitled to receive a
2009 bonus under the terms of the Annual Incentive Plan, including the Stock Leverage
Opportunity provision in accordance with his election made for the 2009
performance year.  Pesci shall be
eligible to receive a bonus for his performance during 2010 that will not be
provided under the Sealed Air Corporation Annual Incentive Plan.  The bonus target, performance metrics and
goals applicable to Pesci’s 2010 bonus shall be mutually agreed by Pesci and
the President of SAC.

 

4.               In consideration for SAC’s
agreement to continue to employ Pesci through the term of this Agreement, Pesci
agrees that he will be considered to have retired on December 31, 2009 for
the purposes of determining the pro rata portions of Pesci’s Sealed Air
Corporation Performance Share Units Award Grant 2009-2010 and Sealed Air
Corporation Performance Share Units Award Grant 2009-2011 that Pesci will
receive following the end of the respective Performance Periods under each of
those Award Grants.

 

5.               Pesci shall
continue to have use of his Company car during the term of this Agreement.

 

6.               Pesci agrees
that, in consideration for SAC’s agreement to employ Pesci through the term of
this Agreement, while employed, and during and for two years following
termination of the his employment with SAC and its affiliates, including
Biosphere Industries LLC (collectively “the Company”), he shall not, without
the written consent of the President of SAC or the President of Sealed Air, (i) either
directly or indirectly compete with or in any way engage his talents for the
benefit of a competitor of the Company in any capacity related directly or
indirectly to any aspect of his past, present or future employment with the
Company or (ii) act as an officer, director, employee, consultant, partner
or stockholder owning more than five percent of a corporation, business or
enterprise that is in the business of designing, developing, manufacturing,
selling, servicing or promoting a product that competes with any of the
products manufactured, sold or under development by the Company during Pesci’s
employment by the Company.  Pesci
acknowledges and represents that his background and experience adequately
qualify him to engage in other profitable lines of endeavor and that he will
not be subject to undue hardship by reason of this non-competition
commitment.  The Company, at its sole
discretion, may elect to release Pesci from his obligations under this
Paragraph 6 after termination 

 

 

of
employment by the Company, which election shall be provided in writing signed
by the President of SAC or the President of Sealed Air no later than 60 days
after the termination of Pesci’s employment with the Company.

 

7.               This Agreement shall be
governed and conformed in accordance with the laws of the State of New Jersey
without regard to that State’s conflict of laws provision.

 

	
  /s/
  Robert A. Pesci

  	
   

  	
  2/13/10

  
	
  Robert
  A. Pesci

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
  For
  Sealed Air Corporation (US)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  William V. Hickey

  	
   

  	
  2/18/10

  
	
  William
  V. Hickey

  	
   

  	
  Date

  
	
  PresidentEXHIBIT 10.2

 

SEALED AIR CORPORATION

 

POLICY ON RECOUPMENT OF INCENTIVE COMPENSATION

FROM EXECUTIVES IN THE EVENT OF CERTAIN RESTATEMENTS

As amended for performance periods beginning on or after January 1,
2010

 

The
Organization and Compensation Committee of the Board of Directors has approved
the policy that the Company will, to the extent permitted by governing law,
require reimbursement to the Company of all or a portion of any annual
incentive compensation (whether payable in cash or by an award under the 2005
Contingent Stock Plan) and any Performance Share Units awards under the 2005
Contingent Stock Plan awarded to any executive officer of the Company or to the
leader of any business unit or function of the Company for performance periods
beginning on or after January 1, 2010, where:

 

(a)          the payment or award was
predicated upon the achievement of certain financial results that were
subsequently the subject of a restatement due to error or misconduct
(regardless of the executive officer’s or leader’s responsibility for such
error or misconduct), and

 

(b)         either no payment or award,
or a lower payment or award, would have been made to the officer or leader
based upon the restated results.

 

In
each case, upon a determination to seek recovery by the Board of Directors, the
Company will, to the extent practicable, seek to recover the amount by which
the officer’s or leader’s annual incentive compensation and/or Performance
Share Units award for the relevant period exceeded the lower amount that would
have been paid or awarded (or the entire amount, if nothing would have been
paid or awarded).  This may include the
cancellation of all or a portion of unvested awards or unpaid awards (or a
delay in payment of any such awards while financial results are under review by
the Company).

 

In
addition, any person who is subject to forfeiture of compensation or profits
from the sale of the Company’s securities under Section 304 of the
Sarbanes-Oxley Act of 2002 shall reimburse the Company the amount of such
compensation and profits.

 

In
addition to these reimbursements, the Company may take any other actions that
it deems appropriate to remedy any fraud or misconduct related to the
restatement based on a consideration of the relevant facts and circumstances.  These remedies would be in addition to any
actions imposed by law enforcement agencies, regulators, or other authorities.

 

2/18/2010EXHIBIT 10.3

 

SEALED AIR CORPORATION

PERFORMANCE-BASED
COMPENSATION PROGRAM

(as amended for the 2008
fiscal year)

(Revised February 18, 2010)

 

In
order to entitle Sealed Air Corporation (the “Corporation”) to deduct for U.S.
income tax purposes the compensation expense resulting from certain
performance-based compensation provided to certain officers and other eligible
employees (as defined below) pursuant to awards under the Corporation’s 2005
Contingent Stock Plan or under annual cash bonus arrangements, the following
are the terms under which such awards may be granted to such eligible employees
as provided in Internal Revenue Code Section 162(m) and the
regulations thereunder, as the same may be amended from time to time (“Section 162(m)”):

 

I.  Eligible Employees:

 

The
class of employees eligible for awards under this program (“eligible employees”)
consists of the chief executive officer of the Corporation, the other four most
highly compensated executive officers of the Corporation, and other officers and
key employees of the Corporation or any of its subsidiaries selected by the
committee of the Board of Directors (the “Committee”) that is authorized by the
Board of Directors to establish and administer performance goals under this
program.  The Committee will be comprised
of “outside directors” as that term is defined in Section 162(m).

 

II.  Performance-based Awards of Common Stock:

 

Performance-based awards
payable in shares of the Corporation’s Common Stock under the 2005 Contingent
Stock Plan of Sealed Air Corporation or a successor plan can be made based upon
achievement of pre-established objective goals during a performance period
(which may be the calendar year) established by the Committee, consistent with
the requirements of Section 162(m). 
If such goals are achieved, then an eligible employee may be granted one
or more awards payable in shares of Common Stock under the 2005 Contingent
Stock Plan during the 12-month period following the performance period in an
aggregate amount up to the pre-established award level. For purposes of clarification only,
performance-based awards of common stock under this Performance-Based
Compensation Program do not include “Performance Share Units,” which are
separately addressed under the terms of the 2005 Contingent Stock Plan.

 

The
maximum amount of performance-based awards payable in shares of the Corporation’s
Common Stock under the 2005 Contingent Stock Plan to any eligible employee
under this program during any 12-month period may not exceed two-tenths of 1%  (0.2%) of the issued and outstanding shares of the
Corporation’s Common Stock at the beginning of such period.  The Committee retains the sole and exclusive
discretion to set pre-established award levels for awards under the Corporation’s
2005 Contingent Stock Plan at an amount less than the maximum level specified
in the prior sentence and to reduce (including a reduction to zero) any award
payable in shares of Common Stock under the 2005 Contingent Stock Plan that is
otherwise payable under the program.

 

III.  Performance-based Awards of Cash:

 

Performance-based
awards of cash under the Corporation’s annual cash bonus arrangements can be
made to eligible employees based upon achievement of pre-established objective
goals during a calendar year performance period.  If such goals are achieved, the eligible
employee may be granted an annual cash bonus for such year in an amount of up
to  the greater of one percent (1%) of the Corporation’s net earnings
for that fiscal year or $2 million, provided, however, that the Committee in
its sole and exclusive discretion may reduce (including a reduction to zero)
any award to be made in cash to any eligible employee that is otherwise payable
under the program for such year.  At the
sole and exclusive discretion of the Committee, an annual cash bonus may be
paid although such goals have not been achieved if the eligible employee dies
or becomes disabled during the performance period or a “change in control” (as
defined in the 2005 Contingent Stock Plan) occurs during the performance
period.

 

IV.  Pre-established Objective Goals:

 

A.  Performance-based awards under this program
will require attainment of objective, pre-established goals based on one or
more of the following criteria: growth in net sales; gross profit; operating
profit; net earnings; measures of cash flow; measures of expense control;
improvement in management of working capital items (inventory, accounts
receivable or accounts payable); earnings before interest and taxes (commonly
called EBIT); earnings before interest, taxes, depreciation and 

 

 

amortization (commonly
called EBITDA); earnings per share; sales from newly-introduced products;
successful completion of strategic acquisitions, joint ventures or other
transactions; measures of product quality, safety, productivity, yield or
reliability (on time and complete orders); measures of return on assets, return
on invested capital or return on equity; shareholder value added (net operating
profit after tax (NOPAT), excluding non-recurring items, less the Corporation’s
cost of capital); and the ratio of net sales to net working capital; share
price; or any combination of the foregoing goals.  Goals may be established on a corporate-wide
basis or with respect to one or more business units, divisions or subsidiaries,
and may be either in absolute terms or relative to the performance of one or
more comparable companies or an index covering multiple companies.  For the purpose of determining whether a goal
has been attained, the Committee may exclude the impact of charges, credits and
related costs for restructurings, discontinued operations, extraordinary items,
debt redemption or retirement, and the cumulative effects of accounting
changes, each as defined by generally accepted accounting principles, and other
unusual or non-recurring items as defined by the Committee when the goals are
established.

 

B.  Pre-established goals and award levels will
be established by the Committee in writing during the first 90 days of the
performance period (or during the first 25% of the performance period if the
performance period is less than a year), provided that the outcome is
substantially uncertain at the time the Committee establishes the goal. Except
as specified in this program, performance goals may not be changed once
set.  No awards under the 2005 Contingent
Stock Plan or cash payments will be made until the Committee has certified that
the performance goals have been met.

 

V.  Additional Provisions:

 

A.  The limits on awards made under the 2005
Contingent Stock Plan and in cash are cumulative, that is, the Corporation may
grant to any eligible employee in any year awards up to the specified limits
both for Common Stock and for cash. 
While the limits are annual, performance-based awards need not be made
every year, and the Committee shall have the discretion to determine the
intervals between successive performance-based awards.

 

B.  In the event of any change in the Corporation’s
capitalization, such as through a stock split, stock dividend,
recapitalization, merger or consolidation, appropriate adjustments will be made
by the Board of Directors to the maximum amount of performance-based awards
payable in shares of the Corporation’s Common Stock during any 12-month period
to an eligible employee, to the pre-established award level for any award
payable in shares of the Corporation’s Common Stock, to the amount of any
performance-based award payable in shares of the Corporation’s Common Stock
that has been approved by the Committee before such change occurred but not yet
made as of such change, and to any pre-established goal that is based upon the
Corporation’s capitalization, such as earnings per share.

 

C.  The Committee shall be entitled at its
discretion to approve awards under the 2005 Contingent Stock Plan, cash bonuses
or compensation under any other compensation plan or arrangement that does not
meet the requirements of Section 162(m) and thus may be partly or
fully non-deductible by the Corporation for U.S. income tax purposes.

 

D.  Except as provided above and subject to the
stockholder approval requirements of Section 162(m), the Committee shall
have complete power and authority to amend, suspend or terminate any or all
terms of the performance-based compensation program, except that it may not
alter performance goals or increase pre-established award levels once they have
been established for a performance period. 
The Committee shall have full authority to administer the
performance-based compensation program and to interpret the program’s terms and
establish rules for the administration of the program, although the
Committee may consider recommendations from the Chief Executive Officer of the
Corporation or from directors who are not members of the Committee.  The Committee’s determinations under the
program shall be final.

 

E.  An eligible employee’s rights and interests
under the program may not be assigned or transferred by the eligible
employee.  To the extent an eligible
employee acquires a right to receive an award under the program, such right
shall be no greater than the right of any unsecured general creditor of the
Corporation.  Nothing contained in the
program shall be deemed to create a trust of any kind or any fiduciary
relationship between the Corporation and an eligible employee.  Designation as an eligible employee under the
program shall not entitle the employee to continued employment with or, if
applicable, continuation as an officer of the Corporation or any of its
subsidiaries.

 

F.  The program shall be construed and governed
in all respects under the laws of the United States to the extent applicable
and, to the extent such laws are not applicable, under the laws of the State of
New Jersey.

 

The
foregoing terms of the amended performance-based compensation program shall
become effective as of the Corporation’s 2008 fiscal year, subject to the
approval by the affirmative vote of a majority of votes cast by the
stockholders of the Corporation at the 2008 annual meeting of stockholders.

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