Document:

HSC-EX10_2013.12.31-10K

Exhibit 10 (d) (iii)

AMENDMENT NO. 2 
TO AMENDED AND RESTATED FIVE-YEAR CREDIT AGREEMENT
AMENDMENT NO. 2 TO AMENDED AND RESTATED FIVE-YEAR CREDIT AGREEMENT (this “Amendment”), dated as of December 20, 2013, among HARSCO CORPORATION, a Delaware corporation, as Borrower (the “Company”), the Lenders party hereto and CITIBANK, N.A., as Administrative Agent.
WITNESSETH
WHEREAS, the Company, the Lenders and the Administrative Agent have entered into that certain Amended and Restated Five-Year Credit Agreement dated as of March 2, 2012 (as amended, supplemented or otherwise modified through the date hereof, the “Credit Agreement”); 
WHEREAS, the Company, the Required Lenders and the Administrative Agent have agreed to amend the Credit Agreement as hereinafter set forth on the terms and conditions set forth herein;
NOW THEREFORE, in consideration of the premises and the mutual agreements, representations and warranties set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
SECTION 1.  Definitions and References.  Capitalized terms not otherwise defined herein shall have the meanings attributed thereto in the Credit Agreement.
SECTION 2.  Amendments.  Effective as of the Second Amendment Effective Date (as defined below), the Credit Agreement is hereby amended as follows:
(a)  Section 1.01 of the Credit Agreement is amended by amending the definition of “Subsidiary Debt” by adding at the end thereof the following:
“Notwithstanding the foregoing, for the period from the Second Amendment Effective Date through and including the Sale to JV Date, “Subsidiary Debt” shall exclude the following Indebtedness: (x) the loan to Quebeisi SGB LLC from Infrastructure Holdings BV in the outstanding principal amount of United Arab Emirates dirham 316,293,098.42 as of November 30, 2013 and (y) the loan to Harsco Al Darwish United WLL from Infrastructure Holdings BV in the outstanding principal amount of $9,065,322.21 as of November 30, 2013.”
(b)  Section 1.01 of the Credit Agreement is amended by adding the following new defined terms in proper alphabetical order:
““Sale to JV Date” shall mean March 31, 2014, which date may be extended with the consent of the Administrative Agent.”
““Second Amendment” shall mean the Amendment No. 2 to Amended and Restated Five-Year Credit Agreement dated as of December 20, 2013, among the Borrower, the Lenders party thereto, and the Administrative Agent.”
““Second Amendment Effective Date” shall have the meaning given to such term in the Second Amendment.”

(c)  Article V of the Credit Agreement is amended by adding the following new Section 5.10:
“SECTION 5.10.      Sale to Joint Venture.   No later than the Sale to JV Date, transfer (directly or indirectly) Quebeisi SGB LLC and Harsco Al Darwish United WLL into a joint venture of the Borrower that is not a Subsidiary.”    
SECTION 3.  Representations and Warranties.   The Company represents and warrants as of the date hereof and as of the Second Amendment Effective Date that:
(a)  This Amendment has been duly authorized, executed and delivered by the Company; 
(b)  Each of this Amendment and the Credit Agreement, as amended hereby, constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as the enforceability thereof may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or similar laws of general application relating to or affecting the rights and remedies of creditors generally or (ii) general principles of equity; 
(c)  No authorizations, approvals or consents of, and no filings or registrations with, any Governmental Authority, or any securities exchange, are necessary for the execution, delivery or performance by the Company of this Amendment or for the legality, validity or enforceability hereof, other than authorizations, approvals, consents, and filings and registrations that have already been obtained prior to the date hereof;
(d) The representations and warranties set forth in Article III of the Credit Agreement shall be true and correct on the date hereof and as of the Second Amendment Effective Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date; and
(e)  No Event of Default or Default shall have occurred and be continuing.
SECTION 4.  Ratification.  Except as amended hereby, the Credit Agreement and all other documents executed in connection therewith shall remain in full force and effect.  The Credit Agreement, as amended hereby, and all rights and powers created thereby or thereunder and under such other documents are in all respects ratified and confirmed.
SECTION 5.  Consent Fee.  The Company agrees to pay to each Lender executing and delivering (including by facsimile transmission or electronic mail) this Amendment (such Lender, a “Consenting Lender”), on or before 5:00 P.M., New York time, December 19, 2013, a fee equal to 0.05% of the Commitment of such Lender (the “Consent Fee”).  The Company shall pay the Consent Fee to the Administrative Agent (for the benefit of the Consenting Lenders) no later than the Second Amendment Effective Date.
SECTION 6.  Conditions Precedent.  The effective date of this Amendment (the “Second Amendment Effective Date”) shall be that date when, to the satisfaction of the Administrative Agent, the following conditions shall been satisfied or waived:
(a)  The Administrative Agent (or its counsel) shall have received from the Company and the Required Lenders either (i) a counterpart of this Amendment signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include facsimile transmission or electronic mail transmission of a signed signature page of this Amendment) that such party has signed a counterpart of this Amendment; 

(b)  The representations and warranties set forth in Section 3 of this Amendment are true and correct on and as of the Second Amendment Effective Date;
(c)  No Event of Default or Default shall have occurred and be continuing on the Second Amendment Effective Date;
(d)  The Administrative Agent shall have received a certificate executed by an authorized officer of the Company dated the Second Amendment Effective Date confirming compliance with the conditions precedent set forth in paragraphs (b) and (c) of this Section 6; 
(e)  The Administrative Agent shall have received (i) a certificate of the Secretary or Assistant Secretary of the Company dated the Second Amendment Effective Date certifying as to the incumbency and specimen signature of each officer of the Company executing this Amendment or any other document delivered in connection herewith and (ii) a certificate of another officer of the Company as to the incumbency and signature of the Secretary or such Assistant Secretary of the Company executing the certificate pursuant to (i) above; 
(f)  The Administrative Agent shall have received payment (for the benefit of the Consenting Lenders) of the Consent Fee; and
(g)  The Administrative Agent shall have received payment or reimbursement of all fees payable to it by the Company on or prior to the Second Amendment Effective Date and its reasonable out-of-pocket expenses in connection with this Amendment including the reasonable fees, charges and disbursements of counsel for the Administrative Agent, in each case, for which invoices have been received by the Company on or prior to the Second Amendment Effective Date.
SECTION 7.  Miscellaneous.
(a)  The Credit Agreement and this Amendment shall be read, taken and construed as one and the same instrument from and after the Second Amendment Effective Date.
(b)  This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.
(c)  Any references in the Credit Agreement to “this Agreement”, “hereunder”, “herein” or words of like import, and each reference in any other document executed in connection with the Agreement, to “the Agreement”, “thereunder”, “therein” or words of like import, shall, from and after the Second Amendment Effective Date, mean and be a reference to the Agreement as amended hereby.
(d)  The Company agrees to reimburse the Administrative Agent for its reasonable out-of-pocket expenses in connection with this Amendment including the reasonable fees, charges and disbursements of counsel for the Administrative Agent, whether or not the Second Amendment Effective Date occurs.
(e)  This Amendment shall be deemed to be a Loan Document.
(f)  This Amendment may be executed in two or more counterparts, each of which shall constitute an original but all of which when taken together shall constitute but one contract, and shall become effective as provided in Section 6.  Delivery of an executed signature page of this Amendment by facsimile transmission or electronic mail shall be as effective as delivery of a manually executed counterpart hereof.

[Remainder of page intentionally left blank; Signature pages follow]

    

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written.
HARSCO CORPORATION, as Borrower

By /s/ Robert G. Yocum        
    Name:  Robert G. Yocum
   Title: Vice President and Treasurer

[Signature Page to Amendment No. 2 to Five-Year Revolving Credit Agreement (Harsco Corporation)]

CITIBANK, N.A., as Administrative Agent

By /s/ Shannon Sweeney        
     Name: Shannon Sweeney
     Title: Vice President

[Signature Page to Amendment No. 2 to Five-Year Revolving Credit Agreement (Harsco Corporation)]

CITIBANK, N.A., as Lender

By /s/ Shannon Sweeney        
     Name: Shannon Sweeney
     Title: Vice President

[Signature Page to Amendment No. 2 to Five-Year Revolving Credit Agreement (Harsco Corporation)]

THE ROYAL BANK OF SCOTLAND PLC, as Lender

By /s/ L. Peter Yetman        
     Name: L. Peter Yetman
     Title: Director

[Signature Page to Amendment No. 2 to Five-Year Revolving Credit Agreement (Harsco Corporation)]

HSBC Bank USA, N.A., as Lender

By /s/ Tanya Dyke        
     Name: Tanya Dyke
     Title: Vice President

[Signature Page to Amendment No. 2 to Five-Year Revolving Credit Agreement (Harsco Corporation)]

ING Bank N.V., Dublin Branch, as Lender

By /s/ Pádraig Matthews    
     Name: Pádraig Matthews
     Title: Vice President 

By /s/ Aidan Neill        
     Name: Aidan Neill
     Title: Director 

[Signature Page to Amendment No. 2 to Five-Year Revolving Credit Agreement (Harsco Corporation)]

JPMorgan Chase Bank, N.A., as Lender

By /s/ Deborah R. Winkler    
     Name: Deborah R. Winkler
     Title: Vice President

[Signature Page to Amendment No. 2 to Five-Year Revolving Credit Agreement (Harsco Corporation)]

Lloyds Bank plc, formerly known as Lloyds TSB Bank plc, as Lender

By /s/ Stephen Giacolone        
     Name: Stephen Giacolone
     Title: Assistant Vice President G011

By /s/ Dennis McClellan    
     Name: Dennis McClellan
     Title: Assistant Vice President M040

[Signature Page to Amendment No. 2 to Five-Year Revolving Credit Agreement (Harsco Corporation)]

The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as Lender

By /s/ George Stoecklein    
     Name: George Stoecklein
     Title: Director

[Signature Page to Amendment No. 2 to Five-Year Revolving Credit Agreement (Harsco Corporation)]

PNC BANK, NATIONAL ASSOCIATION, as Lender

By /s/ Domenic D’Ginto        
     Name: Domenic D’Ginto
     Title: Senior Vice President

[Signature Page to Amendment No. 2 to Five-Year Revolving Credit Agreement (Harsco Corporation)]

Commerzbank AG, New York Branch, as Lender

By /s/ Diane Pockaj        
     Name: Diane Pockaj
     Title: Managing Director

By /s/ Michael Weinert            
     Name: Michael Weinert
     Title: Vice President

[Signature Page to Amendment No. 2 to Five-Year Revolving Credit Agreement (Harsco Corporation)]

U.S. Bank National Association, as Lender

By /s/ Mark Irey            
     Name: Mark Irey
     Title: Assistant Vice President

[Signature Page to Amendment No. 2 to Five-Year Revolving Credit Agreement (Harsco Corporation)]

Wells Fargo Bank, N.A., as Lender

By /s/ James Travagline        
     Name: James Travagline
     Title: Director

[Signature Page to Amendment No. 2 to Five-Year Revolving Credit Agreement (Harsco Corporation)]

Manufacturers Traders and Trust Company, as Lender

By /s/ Derek Lynch            
     Name: Derek Lynch
     Title: Assistant Vice President

[Signature Page to Amendment No. 2 to Five-Year Revolving Credit Agreement (Harsco Corporation)]

THE NORTHERN TRUST COMPANY, as Lender

By /s/ Andrew D. Holtz        
     Name: Andrew D. Holtz
     Title: Senior Vice President

[Signature Page to Amendment No. 2 to Five-Year Revolving Credit Agreement (Harsco Corporation)]

Svenska Handelsbanken AB (publ) New York branch, as Lender

By /s/ Anders Abelson            
     Name: Anders Abelson
     Title: Senior Vice President

By /s/ Maria Kolsrud            
     Name: Maria Kolsrud
     Title: Vice President

[Signature Page to Amendment No. 2 to Five-Year Revolving Credit Agreement (Harsco Corporation)]ip-20131231exhibit1032014mip

Exhibit 10.3

INTERNATIONAL PAPER COMPANY
2014 MANAGEMENT INCENTIVE PLAN (MIP)
Amended and Restated as of January 1, 2014
I.        Purposes of the Plan and Plan Description
The purposes of this Plan are to: (a) provide an incentive to reward Participants for results in improving the financial performance of the Company; (b) attract and retain the best talent available; and (c) further align the interests of the Participants and the Company’s shareowners.  
The Plan is an annual cash incentive plan developed around the achievement of pre-established Performance Objectives and funded based on the Company’s achievement level against those Performance Objectives.  
II.    Definitions
Award Scale
“Award Scale” means the conversion of the Performance Objective Rating to a percent of Target Award earned.
Cash Flow from Operations
“Cash Flow from Operations” includes cash flow from discontinued and continuing operations as well as cash flow from special items, and is shown in the Company’s Statement of Cash Flow as “Cash Provided by (Used for) Operations.”  Cash flow as a result of pension contributions or other unanticipated, highly unusual items may, at the Committee’s discretion, be excluded in the calculation of “Cash Flow from Operations” for purposes of determining achievement of this cash flow metric.  
Cause
“Cause” includes but is not limited to misconduct or other activity detrimental to the business interest or reputation of the Company or continued unsatisfactory job performance without making reasonable efforts to improve.  Examples include insubordination, protracted or repeated absence from work without permission, illegal activity, disorderly conduct, etc.
CEO Special Award Pool
“CEO Special Award Pool” means the amount payable for CEO Special Awards as determined in Section III.

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Committee
“Committee” means the Management Development and Compensation Committee of the Company’s Board of Directors.
Company
“Company” means International Paper Company, a New York corporation, together with its Subsidiaries.
Employee
“Employee” means a regular, active, full-time employee employed on a non-temporary basis.
Misconduct
“Misconduct” includes but is not limited to an act detrimental to the business interest or reputation of the Company or any act determined to be a deliberate disregard of the Company’s rules, or violation of the Employee’s Non-Competition or Non-Solicitation Agreement. 
Participant
“Participant” means a person who has been designated as a participant in the Plan, according to Section V.
Performance Objective Rating
“Performance Objective Rating” means the percentage amount assigned to a 
Performance Objective for a level of performance achievement.
Performance Objectives
“Performance Objectives” mean the measures identified by the Company and approved by the Committee identified in Section VI.
Plan or MIP
“Plan” or “MIP” means this Management Incentive Plan, amended and restated as of January 1, 2014.
Plan Year
“Plan Year” means the twelve month period corresponding to the Company’s fiscal year (January 1 through December 31).

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Retirement Eligible
“Retirement Eligible” means an employee is at least age 55 with 10 years of service or age 65
Return on Invested Capital or ROIC
“Return on Invested Capital” or “ROIC” means operating earnings before interest, including both earnings from continuing and discontinued operations (up through the date of sale), and before the impact of special items and non-operating pension expense, divided by average invested capital.  Invested capital is total equity (adjusted for pension) plus interest bearing liabilities.  The numerator in the Company’s ROIC metric excludes the impact of special items (such as gains or losses associated with asset sales, restructuring costs,  and significant out-of-period or “one-off” items) and non-operating pension expense.  
Subsidiary
“Subsidiary” means any company that is owned (50% or more) or controlled by the Company, directly or indirectly.
Target Award
“Target Award” means an amount equal to the percentage of salary range midpoint applicable to the actual position level of each Participant, shown in Appendix A. 
Total MIP Award Pool
“Total MIP Award Pool” means an amount generated by the sum of eligible Participants’ Target Awards multiplied by the Company’s percentage achievement of its Performance Objectives.

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III.        CEO Special Award Pool
The CEO may designate a portion of the Total MIP Award Pool to fund CEO Special Awards for extraordinary individual performance to award to Employees, regardless of whether such Employees are otherwise eligible to participate in the Plan.  The CEO Special Award Pool, if any, has historically been in the range of 1.5% to 3.0% of the Total MIP Award Pool. All CEO Special Awards are funded out of the Total MIP Award Pool. 
IV.     Administration of the Plan
The Plan operates at the discretion of the Committee. The Committee may exercise considerable discretion and judgment in interpreting the Plan, and adopting, from time to time, rules and regulations that govern the administration of the Plan.
The Committee has delegated authority to the CEO or his designee for the day-to-day administration of the Plan, except with respect to awards made to the CEO or any employee of the Company in a position designated as Senior Vice President or above.
Decisions of the Committee are final, conclusive and binding on all parties, including the Company, its shareowners, and employees.
V.    Participation in the Plan
Participation in the Plan is limited to individuals who meet the definition of Employee set forth in Section II whose position level is 14 or higher. Except as set forth in Section VII, a Participant must be an Employee as of September 30 of the Plan Year and on the date of the award payout in order to be eligible to receive a payout.  
Employees who are eligible for participation in any other short-term, cash-based incentive compensation plan of the Company are not eligible for participation in this Plan.  
An Employee who becomes eligible to participate in the Plan during the Plan Year or who moves from one eligible position level to another will be eligible for a prorated award.  An Employee who moves from an eligible position to a non-eligible position during the Plan Year will be eligible for a prorated award based on the number of months the employee was eligible during the Plan Year.

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Participation in this Plan, or receipt of an award under this Plan, does not give a Participant or Employee any right to a subsequent award, or any right to continued employment by the Company for any period. 
VI.        Award Pool and Award Scale 
		
	A.
	Performance Objectives – Funding the Total MIP Award Pool

The Company must achieve at least a minimum level of performance, as pre-established and approved by the Committee, in order to fund the Total MIP Award Pool.  
The Total MIP Award Pool will be determined based on achievement of the Performance Objectives listed below during the Plan Year. 
 The maximum level of performance achievement that may be applied to calculate the Total MIP Award Pool for the Plan Year is 200%.
Ù 50% Weight:  Cash Flow from Operations
	
		
	Performance
	Award %

	Greater than $3,300 MM and
up to $4,000 MM
	+ .1429% for each $1MM improvement greater than 
$3,300 MM up to $4,000 MM

	$3,300 MM
	100%

	From $2,500 MM to 
less than $3,300 MM
	- .0625% for each $1MM 
drop below 
$3,300 MM down to $2,500 MM

 50% Weight:  Absolute Return on Invested Capital
	
		
	Performance
	Award %

	Greater than 10.7% and up to 13.9%
	+ 3.125% for each 0.1% 
improvement greater than 
10.7% up to 13.9%

	10.7%
	100%

	From 8.0% to less than 10.7%
	-1.852% for each 0.1% 
drop below 
10.7% down to 8.0%

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	Ù
	Performance Objective Rating

The Company’s achievement of each Performance Objective will be evaluated by the Company as of the end of the Plan Year, and reviewed and verified by the Company’s external auditors.  
The Company’s determination of performance achievement will be presented to the Committee for its review and approval at the February meeting following the end of the Plan Year. 
		
	B.
	Approval by the Committee of the Total MIP Award Pool

The Committee approves the Total MIP Award Pool based on the Company’s performance achievement against the Performance Objectives described above.  
The Committee may determine in its sole discretion to reduce or eliminate the Total MIP Award Pool based upon any objective or subjective criteria it deems appropriate.  
The Committee may determine in its sole discretion to increase the Total MIP Award Pool above the calculated amount by no more than 25% based upon any objective or subjective criteria it deems appropriate.  In no event shall the Total MIP Award Pool exceed the Maximum Award Pool of 200%. 
The Company shall make every effort to provide projected performance achievement to the Committee by the December meeting with the intent of understanding the Committee’s desire whether to exercise its discretion with regard to increasing or decreasing the Total MIP Award Pool. 
The amount allocated for payment of awards under the Plan and for the CEO Special Award Pool may not exceed the Total MIP Award Pool.  
VII.    Individual Participant Awards
		
	A.
	Individual Award Recommendations

Following the end of the Plan Year, the CEO (in consultation with the Senior Vice President, Human Resources and Communications) will recommend to the Committee the individual MIP awards for awards made to any employee of the Company in a position designated as Senior Vice President or above (other than the CEO) and an aggregate award amount for all other Participants. 
The Committee will recommend to the independent members of the Board the amount of the MIP award for the CEO and any other employee-director, if any.

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These recommendations will be presented to the Committee, and in the case of the CEO to the Board, for its review and approval at the February meeting following the end of the Plan Year.
		
	B.
	Payout of Individual Awards

Participants each have a Target Award expressed as a percentage of the midpoint of a defined salary range based on position level as set forth on the attached Appendix A.  
A Participant’s Calculated Award is equal to the Participant’s Target Award multiplied by the Company’s actual performance percentage achieved reduced by the percentage designated for the CEO Special Award Pool.  
A Participant’s Final Award is equal to the Participant’s Calculated Award adjusted by the Participant’s individual performance achievement, which may or may not include business unit, facility or mill performance, as determined by his or her manager against pre-established performance objectives. A Participant’s individual award is capped at 200% of his or her Target Award.
A Participant may be eligible to receive a CEO Special Award in addition to his or her Final Award, which may cause the Participant’s actual award to be paid to exceed 200%, provided, however, that the sum of all Final Awards plus CEO Awards may not exceed the Total MIP Award Pool.
The following is an example of an award payout calculation for a Participant. 

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	C.
	Impact of Temporary Layoff for Salaried Employees

The MIP award of a Participant who is involuntarily, temporarily laid off by the Company will be determined as follows:
		
	•
	Layoff of three months or less followed by return to active employment for Company: The Participant will be eligible for his or her Calculated Award payable under the terms of the Plan. The Calculated Award will not be reduced for the period of temporary layoff.

		
	•
	Layoff of three months or less followed by termination of employment:  The Participant will be eligible for his or her Calculated Award payable under the terms of the Plan. The Participant’s eligibility for an award will be determined under Section VII(E) and (F).  The award payable, if any, will not be reduced for the period of temporary layoff.

		
	D.
	Impact of Leave of Absence for Salaried Employees

A Participant’s Target Award will not be prorated for the number of months on a leave of absence during the Plan Year.  The Participant’s final award is based on the Participant’s individual performance achievement, which may include business unit, facility or mill performance, as determined by his or her manager against pre-established performance objectives.
		
	E.
	Cancellation of Award Upon Certain Events Prior to Payout

An award not yet paid (prior to actual payment, see Note below) will cancel as of the date of the Participant’s termination of employment in the following events:
		
	•
	Voluntary resignation before retirement eligibility;

		
	•
	Termination for Cause;

		
	•
	Violation of a Non-Compete, Non-Solicitation or Confidentiality Agreement, as applicable;

		
	•
	Failure by the participant in the Company’s Unfunded Supplemental Retirement Plan for Senior Managers (“SERP”) to submit notice of retirement one year in advance of the effective date of his or her retirement, except in the event of death, disability or waiver by the Management Development and Compensation Committee; and

		
	•
	Misconduct. The determination of whether a Participant has engaged in Misconduct shall be made by the Senior Vice President, Human Resources and Communications, or by the Management Development and Compensation Committee with regard to employees of the Company in a 

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position designated as Senior Vice President or above, or by the Board of Directors for a determination with regard to the Chief Executive Officer.
Note: Awards will be cancelled in the situations listed above even if time and performance have been met but the award has not yet been physically paid at the time of termination.  Any dispute as to whether any of the events described in this paragraph have occurred will be resolved by the Committee in its sole discretion in accordance with Section IV.
		
	F.
	Proration Upon Certain Events 

An award not yet paid will be prorated based upon the number of months of employment during the Plan Year in which the Participant worked 15 days or more.  
Awards paid at the target amount in connection with a termination scenario during the Plan Year are not deemed an MIP Award and accordingly are not paid from the Total MIP Award Pool, but instead are charged to the appropriate cost center, as part of the termination allowance. 

	
				
	TERMINATION SCENARIO
	DATE OF TERMINATION
	AMOUNT 
TO BE PAID
	TIME OF PAYMENT

	For All MIP-eligible Employees other than Senior Vice Presidents & CEO

	DURING PLAN YEAR

	•Death
•Long-Term Disability
•Eligible for Termination Allowance under Company Salaried Employee Severance Plan* (see Note)
•Divestiture of Participant’s Business
	1/1 through 12/31
	Pro rata Target Award
	As soon as practical following termination

	•Retirement eligible

	1/1 through 11/30
	Pro rata Target Award 
	As soon as practical following termination

	Month of December
	Full Calculated Award based on Actual performance
	At time of normal MIP payout

	

AFTER PLAN YEAR BUT BEFORE MIP PAYOUT

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	•Death
•Long-Term Disability
•Eligible for Termination Allowance under Company Salaried Employee Severance Plan* (see Note)
•Divestiture of Participant’s Business•Retirement eligible 
	1/1 (of year following plan year) through MIP payout date
	Full prior year Calculated Award based on Actual performance

AND

Pro rata Target Award for year of termination
	Calculated Award is paid at time of normal MIP payout

AND

Pro rata Target Award is paid as soon as practical following termination

	For Senior Vice Presidents and CEO

	•Death
•Long-Term Disability

	1/1 through 12/31
	Pro rata Target Award
	As soon as practical following termination

	•Retirement eligible 
•Eligible for Termination Allowance under Company Salaried Employee Severance Plan* (see Note)
•Divestiture of Participant’s Business
	1/1 through 12/31
	Pro rata Calculated Award based on Actual performance
	At time of normal MIP payout

*NOTE:  A Participant who does not sign the Company’s Termination Agreement and Release in connection with the payment of a termination allowance will forfeit his or her MIP award, unless retirement eligible.
		
	VIII.
	Allocation of MIP Award Pool among Business Units and Corporate Staff Organizations

Each Business Unit and Corporate Staff Organization is allocated a portion of the Total MIP Award Pool, reduced by the CEO Special Award Pool, based on the Company’s performance achievement of the Performance Objectives.  Such allocations may be further adjusted by the CEO based upon any objective or subjective criteria the CEO deems appropriate. 

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IX.    Payment of Awards  
		
	A.
	Type of Payment

MIP awards are paid in cash unless deferred by the Participant. Alternatively, the Committee may, in its sole discretion, authorize payment of all or a portion of earned MIP awards to all or certain groups of Participants under the Company’s Incentive Compensation Plan in shares of Company stock.
		
	B.
	Time of Payment

Awards may be paid in one or two installments, as determined by the Committee.  Each such installment will be deemed to be a separate payment for purposes of Section 409A of the Internal Revenue Code and Treas. Reg. §1.409A-2(b)(2)(iii).  In the event an award is paid in one installment, it will be made no later than March 15 following the Plan Year.  In the event an award is paid in more than one installment, the first such payment will be made no later than March 15 following the Plan Year and the second such payment will be made no later than December 31 following the Plan Year.  In no event will an award or any portion thereof be paid in the current Plan Year.
C.Payment to Beneficiaries
If a Participant dies prior to receipt of an approved award under the Plan, the award will be paid in accordance with the chart under Section VII(F) in a lump sum to the Participant’s estate as soon as practicable but in no event later than 90 days after the date of death. 
D.Deferral of Payment
Any Participant who is eligible for and has elected to participate in the Company’s Deferred Compensation Savings Plan (“DCSP”) may elect to defer payment, not to exceed 85%, of any award under this Plan by filing an irrevocable MIP Deferral Election by the last business day in December of the year prior to the year in which such award would be earned.  Awards or portions elected to be deferred will be credited with investment earnings or losses in accordance with provisions of, and the Participant’s elections under, the DCSP.  MIP awards that are deferred will be paid in accordance with the payment terms of the DCSP.
X.    Recoupment or Forfeiture of Awards
If the Company reasonably believes that a Participant has committed an act of Misconduct either during employment or within 90 days after such employment terminates, the Company may terminate the Participant’s participation in the Plan or seek recoupment of an Award paid under this Plan.  Recoupment may be 

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effectuated by a notice of recapture (“Recapture Notice”) sent to such Participant within the 90-day period following the termination of employment.  The Participant will be required to deliver to the Company an amount in cash equal to the gross cash payment of the Award to which such Recapture Notice relates within 30 days after receiving such Recapture Notice from the Company.
The Company has sole and absolute discretion to take action or not to take action pursuant to this Section X upon discovery of Misconduct, and its determination not to take action in any particular instance does not in any way limit its authority to terminate the participation of a Participant in the Plan and/or send a Recapture Notice in any other instance.
If any provision of this Section X is determined to be unenforceable or invalid under any applicable law, such provision will be applied to the maximum extent permitted by applicable law, and shall automatically be deemed amended in a manner consistent with its objectives to the extent necessary to conform to any limitations required under applicable law.
XI.    Impact of Restatement of Financial Statements Upon Previous Awards.  
If any of the Company’s financial statements are required to be restated, resulting from errors, omissions, or fraud, the Committee may (in its sole discretion, but acting in good faith) direct that the Company recover all or a portion of any such Award made to any, all or any class of Participants with respect to any fiscal year of the Company the financial results of which are negatively affected by such restatement.  The amount to be recovered from any Participant shall be the amount by which the affected Award(s) exceeded the amount that would have been payable to such Participant had the financial statements been initially filed as restated, or any greater or lesser amount (including, but not limited to, the entire award) that the Committee shall determine.  The Committee may determine to recover different amounts from different Participants or different classes of Participants on such bases as it shall deem appropriate.  In no event shall the amount to be recovered by the Company be less than the amount required to be repaid or recovered as a matter of law.  The Committee shall determine whether the Company shall effect any such recovery (i) by seeking repayment from the Participant, (ii) by reducing (subject to applicable law and the terms and conditions of the applicable plan, program or arrangement) the amount that would otherwise be payable to the Participant under any compensatory plan, program or arrangement maintained by the Company or any of its affiliates, (iii) by withholding payment of future increases in compensation (including the payment of any discretionary bonus amount) or grants of compensatory awards that would otherwise have been made in accordance with the Company’s otherwise applicable compensation practices, or (iv) by any combination of the foregoing.

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XII.    Modification, Suspension or Termination of Plan
The Committee may at any time suspend, terminate, modify or amend any or all of the provisions of this Plan.
XIII.    Governing Law
The Plan is governed by the laws of the State of New York.
XIV.    Tax Withholding
The Company has the right to make such provisions as it deems necessary or appropriate to satisfy any obligations it may have under law to withhold federal, state or local income or other taxes incurred by reason of payments pursuant to the Plan.
XV.    IP Political Action Committee (“PAC”) Contributions
A Participant who makes a valid election in accordance with the Company’s procedures may deduct a specified amount or percentage from his or her MIP award for the purpose of contributing to the IP-PAC. The amount of the contribution may not exceed the federal limit for individual contributions to a political action committee. In no event shall a Participant’s election to contribute or not contribute to the IP-PAC have any impact on a Participant’s eligibility for, or amount of, his or her MIP award. 
XVI.    Section 409A
The Plan is intended to comply with the applicable requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and will be limited, construed and interpreted in accordance with such intent.  
XVII.    Non-Transferability of Award
No award under this Plan, and no rights or interests therein, will be assignable or transferable by a Participant (or legal representative). 
XVIII.    Effective Date
This Plan is effective as of January 1, 2014 and continues until terminated, suspended, modified, or amended by the Committee.

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Appendix A
Management Incentive Plan (MIP)
2014 Target Awards
	
				
	Position Level
	Target Award
(% of Midpoint)*
	Target Award
(Value)*

	43
	145
	%
	$2,109,000

	42
	90
	%
	$1,029,600

	41
	85
	%
	$884,100

	40
	85
	%
	$803,700

	39
	80
	%
	$687,600

	38
	80
	%
	$625,000

	37
	75
	%
	$532,700

	36
	75
	%
	$488,300

	35
	70
	%
	$416,600

	34
	70
	%
	$380,900

	33
	65
	%
	$323,800

	32
	65
	%
	$296,100

	31
	60
	%
	$250,300

	30
	55
	%
	$216,300

	29
	50
	%
	$178,100

	28
	50
	%
	$165,000

	27
	45
	%
	$135,900

	26
	45
	%
	$124,200

	25
	40
	%
	$101,000

	24
	40
	%
	$94,500

	23
	35
	%
	$75,600

	22
	30
	%
	$59,300

	21
	30
	%
	$54,200

	20
	25
	%
	$41,400

	19
	25
	%
	$38,500

14

	
				
	18
	20
	%
	$28,600

	17
	20
	%
	$26,700

	16
	20
	%
	$24,700

	15
	15
	%
	$17,100

	14
	15
	%
	$15,900

*Target Award % of Base Salary midpoint and value for non-U.S. participants may vary based on local market practice. The 2014 U.S. Core Salary Structure was increased by 1.5% over 2013, for PLs 14 and above.

15

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