Document:

lksd-ex1027_1248.htm

Exhibit 10.27

LSC Communications 

Annual Incentive Plan 

(As amended and restated effective January 17, 2017) 

 

OVERVIEW 

 

The LSC Communications Annual Incentive Plan (the “Annual Incentive Plan” or the “Plan”) is designed to promote the growth and profitability of LSC Communications and its subsidiaries with incentives to reward and enhance the retention of eligible employees. Awards are made depending on the Company’s financial performance and on how well an eligible employee performs against individual goals that link to and support LSC Communications’ strategic and financial priorities. 

 

The Plan is a sub-plan of the LSC Communications 2016 Performance Incentive Plan (the “2016 PIP”) and is subject to all of the performance conditions established pursuant to the 2016 PIP and the limitations set forth therein. With respect to participants who are subject to Section 162(m) of the Internal Revenue Code, as amended (the “Code”), to the extent that any term of the Plan conflicts with the terms of the 2016 PIP, the terms of the 2016 PIP will apply. 

 

The Human Resources Committee of the Board of Directors (the Committee) administers the Plan. The Committee has authority to establish rules and regulations for the Plan’s implementation and administration, including the authority to impose limitations and conditions, with respect to competitive employment or otherwise, that are not inconsistent with the Plan’s purposes. 

 

PARTICIPATION 

 

Eligibility is limited to executive officers selected by the Committee and other employees designated as eligible by position in the organization.

 

TARGET AWARD PERCENTAGE AND PLAN FUNDING 

 

Each eligible participant’s target incentive opportunity under the Annual Incentive Plan is a percentage of such participant’s base salary as of December 31 of the Plan Year, or such other amount as determined by the Committee. This is referred to as the “Target Award Percentage” and will be communicated to eligible participants annually. Eligible wages do not include disability benefit payments. The “Plan Year” for any year is the calendar year.   The portion of any Target Award Percentage that is dependent upon achievement of personal goals may vary based on the participant’s level in the Company (the “Personal Goal Percentage”) and will be communicated to eligible participants annually.

 

 

 

 

 

 

Subject to the performance conditions established under the 2016 PIP and the limitations set forth therein, the Company must fund the Plan for a Plan Year for participants to receive an award for that Plan Year. The decision whether or not to fund the Plan for a particular Plan Year, 

as well as the Plan’s funding level, is made by the Committee in its sole discretion based on financial performance targets set by the Committee, which may not be amended after the end of the Plan Year. Plan funding is based upon the Company’s actual financial performance for the Plan Year against the previously set targets and if the Committee determines that the financial targets have been met, the Plan will be funded.   

 

If the Plan is funded, Plan awards will be made based upon the Plan’s funding level and the participant’s achievement level of his or her personal goals, up to 150% of the participant’s Target Award Percentage (or such other percentage as determined by the Committee). 

 

PERSONAL GOALS 

 

Personal goals are established for each participant each Plan Year to link and support LSC Communications’ strategic and financial priorities. A participant’s personal goals are determined each year in consultation with the participant and his or her manager and are communicated to the participant in writing as part of the goal-setting process. The portion of any Target Award Percentage that is dependent upon achievement of personal goals may vary based on the participant’s level in the Company and will be communicated to eligible participants annually. The Committee’s determination of whether a participant has attained, in whole or in part, the participant’s personal goals for a Plan Year, shall be final and binding. 

 

AWARD AMOUNT AND PAYMENT 

 

Awards are paid following the Plan Year after the Committee has certified the achievement of performance goals under the 2016 PIP and the Plan funding decisions and personal performance goals have been made. Except as otherwise provided herein, or by the Committee, at any time prior to the end of such Plan Year, any award to be paid under the Plan shall be paid to recipients within 2 1/2 months after the end of the Plan Year (i.e., by March 15). A participant must be on the payroll of the Company as of the end of the Plan Year (i.e. as of December 31) to receive an award. Special provisions apply to retirees and in the case of a participant’s death or Disability. (Please refer to the Changes in Employment Status section of this document for details.) 

 

The Committee has the discretionary authority prior to the end of the Plan Year to determine to pay any award in installment payments over a specified period of time. The Committee also has discretionary authority to increase or decrease the amount of the award otherwise payable if it determines prior to the end of the Plan Year that an adjustment is appropriate to better reflect the actual performance of the Company and/or the participant; provided, however, that the Committee may not increase the amount of the award payable to a person who is a “covered employee,” as defined in Section 162(m) of the Internal Revenue Code, to an amount in excess of the amount earned under the 2016 PIP; provided further, however, the Committee has discretionary authority to decrease the amount of the award otherwise payable at any time for any person designated as an executive officer of the Company for purposes of Section 16 of the Securities Exchange Act of 1934, including after the end of the Plan Year.  Additionally, the 

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Committee has discretionary authority to reduce the amount of the award otherwise payable if it determines that any participant engaged in misconduct. 

 

BENEFITS AND TAX TREATMENT 

 

Award payments are subject to applicable deductions, including social security taxes and federal and applicable state and local income tax withholding. 

 

The treatment of award payments as compensation for purposes of other LSC Communications employee benefits plans is determined by the terms of the applicable plans. 

 

CHANGES IN EMPLOYMENT STATUS 

 

	
A.
	
PROMOTIONS, DEMOTIONS, TRANSFERS, CHANGES IN ASSIGNMENT 

 

If a participant is promoted, demoted, transferred to or between business units or from corporate during the year, any award payout normally will be calculated by prorating the payouts for each eligible position based on the time assigned to that position.  Promotions on to the AIP Plan on or after October 1 of the Plan Year will not be eligible to participate in the Annual Incentive Plan until the following such Plan Year. 

 

	
B.
	
NEW HIRE 

 

Employees hired prior to October 1st of the Plan Year shall be eligible to participate in the Annual Incentive Plan in the year of hire if designated. Eligible employees hired on or after October 1 of the Plan Year will not be able to participate in the Annual Incentive Plan until the following such Plan Year.   

 

 

	
C.
	
RETIREMENT, DEATH or DISABILITY 

 

A participant’s retirement*, death, or Disability** during a Plan Year or prior to the payment date will not disqualify a participant from eligibility to receive any award that otherwise would be due under the Plan. 

 

	
*
	
For purposes of the Plan, “retirement” means separation from service with the Company (i) at age 65, or (ii)  at or after age 55 with 5 or more years of continuous service, except in each case as determined by the Committee. 

 

 

	
**
	
For purposes of the Plan, “Disability” means disability as defined as in the Company’s long-term disability policy as in effect at the time of the participant’s disability. 

 

	
D.
	
OTHER TERMINATION 

 

If participant’s employment terminates for reasons other than retirement (as defined above), death, or Disability (as defined above) prior to the  end of the Plan Year, no award shall be payable. 

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ADMINISTRATION 

 

The Committee has full discretionary authority to administer the Plan, including the authority to determine the performance achievement attained under the Plan. The Committee may delegate to members of LSC Communications’ management the authority to administer the Plan and determine performance under the Plan. 

 

LSC Communications retains the right to amend or terminate the Plan at any time; provided however that awards for any Plan Year may not be amended or terminated after the completion of such Plan Year except in cases of misconduct of the participant.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4lksd-ex1028_1249.htm

Exhibit 10.28

February 29, 2016

We are pleased to inform you that the HR Committee of the RR Donnelley Board of Directors has decided to provide full and immediate payment of the unvested portion of your 2013 and 2014 retention awards in the event your employment is terminated by your employer without cause prior to vest date. For the avoidance of doubt, this would not apply to the transfer of your employment to Donnelley Financial Solutions or LSC Communications (in connection with their spin-offs) or the transfer of your employment within the RRD control group (prior to these spin-offs).

This change is effective immediately.

 

/s/ Thomas Carroll

Thomas Carroll

EVP, CHRO

RR DonnelleyExhibit

Exhibit 10.5.1
 
FIRST AMENDMENT
TO
EMPLOYMENT AGREEMENT

THIS FIRST AMENDMENT TO EMPLOYMENT AGREEMENT (this “Amendment”) is made effective as of December 22, 2016 between Synergy Resources Corporation, a Colorado corporation (the “Company”), and Lynn A. Peterson (the “Executive”).

WITNESSETH

WHEREAS, Executive and the Company are party to that certain Employment Agreement, dated as of May 27, 2015 (the “Employment Agreement”), pursuant to which Executive is employed as President of the Company;

WHEREAS, Executive and the Company wish to amend the Employment Agreement to clarify the rights and responsibilities of the parties upon termination of the Employment Agreement and to remove certain extraneous language regarding same; and 

WHEREAS, Section 9.7 of the Employment Agreement permits the parties thereto to amend the Employment Agreement by written instrument, and Executive and the Company now wish to amend the Employment Agreement as set forth herein.

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

AMENDMENT

1.    Article 4 of the Employment Agreement is hereby amended by removing the existing Article 4 as set forth therein and replacing it with the following:

    “4.    Termination.

4.1    If the Executive should die during the Term, this Agreement shall terminate as of the date of the Executive's death, except that the Executive's legal representatives shall be entitled to receive all compensation otherwise payable to Executive through the last day of the month in which Executive's death occurs and unvested equity grants or stock options, if any, that vest solely upon the passage of time shall immediately vest. The foregoing shall not apply to equity incentive awards that are earned and/or vested based on the satisfaction of performance metrics or goals, which awards shall be governed solely by their respective grant documents.  The Executive's legal representatives shall have the right to exercise outstanding options, if any, for the first to occur of a period of one year or the expiration date of the original term of such grant.

4.2    If, during the Term, the Executive shall become physically or mentally disabled, whether totally or partially, so that the Executive is unable substantially  to  perform his services hereunder for (i) a period of two consecutive months, or (ii) for shorter periods aggregating four months during any twelve-month  period, the Company may, at any time after the last day of the second consecutive  month of disability or the day on which the shorter periods of disability shall have equaled an aggregate of four months,  by written notice to the Executive (but before the Executive has recovered from such disability),terminate this Agreement.  Notwithstanding such disability, the Company shall continue to pay the Executive his full salary up to and including the date of such termination.  Upon termination for disability, unvested equity grants and stock options, if any, that vest solely upon the passage of time shall immediately vest. The foregoing shall not apply to equity incentive awards that are earned and/or vested based on the satisfaction of performance metrics or goals, which awards shall be governed solely by their respective grant documents.  The Executive shall have the right to exercise outstanding options, if any, for the first to occur of a period of one year or the expiration date of the original term of such grant.

4.3     In the event of (i) conviction of the  Executive of any crime or offense involving the property of the Company, or any of its subsidiaries or affiliates, fraud or moral  turpitude,  and such  crime or offense  significantly harms the business operations of the Company,  (ii) the refusal of Executive to follow the lawful directions of the Company's  Board of Directors (the "Board")  within a reasonable  period  after delivery  to  Executive  of  written notice of such directions, (iii) the Executive's gross  negligence,  and such gross negligence significantly  harms the business operations of the Company  (gross negligence does not include errors of judgment, mistakes, or discretionary  decisions, but is conduct which shows a reckless or willful disregard for reasonable  business practices), or (iv) a breach of this  Agreement  by Executive which Executive fails to cure  within thirty days after  notice  from the  Board,  or fails to diligently pursue a cure if the breach is not able to reasonably be cured within 30 days (any such event, a "Cause  Event"), then the Company may terminate Executive's employment hereunder by written notice to Executive in which event Executive shall be entitled to receive all  compensation otherwise payable to Executive through the date of termination.

4.4    [Reserved].

4.5    In the event the Company shall terminate Executive's employment hereunder without the occurrence of a Cause Event and not due to death or disability,  and not on or within  twelve  (12)  months  following  a Change of Control, the Company shall promptly, but in no event later than sixty (60) days, pay to Executive by certified check, wire transfer  funds, or other form of payment reasonably acceptable to Executive, a lump sum amount to the sum of (i) two (2) times the Executive's annual salary at such compensation rate as is then in effect under the terms of this  Agreement, and any extension or renewal thereof,  plus (ii) Executive's most recent  bonus.  Such payment shall not be reduced by any charges, expenses, debts, set-offs or other deductions of any kind whatsoever except for required withholding taxes. All of Executive's unpaid or unvested equity grants and stock options that vest solely upon the passage of time shall be immediately vested.  The foregoing shall not apply to equity incentive awards that are earned and/or vested based on the satisfaction of performance metrics or goals, which awards shall be governed solely by their respective grant documents.  

4.6    Constructive Termination shall occur if  the Executive resigns his employment within ninety (90) days of the occurrence  of any of the following events:  (i) a relocation (or demand for  relocation) of Executive's place of employment  to a location  more than  thirty-five (35) miles from Executive's current place of employment, (ii) the Board  materially  interferes  with the performance of the Executive's duties, (iii) if a Change of Control event has occurred; (iv) the Company shall fail to nominate the Executive for  nomination or appointment  to the Board of  Directors of the Company;  (v) the  Company's material  breach of this Agreement  or any  other  written  agreement  between Executive and the Company; provided the Company is given notice of said breach and provided an opportunity to cure such breach for 30 days from the date of such  notice;  (vi) the material diminution of the Executive's duties responsibilities, authority,  offices or titles in effect as of the Effective Date; or (vii) a reduction of Executive's  salary, or adverse modifications to the stock awarded to Executive under this Agreement,  or to the Company's stock plan (or any other similar plan), or a material reduction in Executive's total compensation under this Agreement, except for any reductions equally applicable to all executive officers of the Company as approved by the Board.

"Change of Control" shall mean a change in ownership or control of the Company as a result of any of the following transactions:

(a)    a merger, consolidation or other business combination transaction of the  Company with or into  another corporation  entity or person, whether or not  approved  by the Board of Directors of the Company, other than a transaction  that would result in the holders of at least 50% of the voting  securities of the Company  outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted or into voting securities  of the  surviving entity or the  parent of the  surviving  entity) at least 50% of the total voting power represented by the voting securities of the Company or such surviving entity (or the parent of any such surviving entity) outstanding immediately after such transaction; or

(b)    any stockholder-approved transfer or other disposition of all or substantially all of the Company's assets, or

(c)    the acquisition, directly or indirectly by any person or related group of persons (other than the Company or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company), of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the total voting power of the Company's outstanding securities;
(d)    a change in the composition of the Board over a period of thirty-six (36) months or less such that a majority  of the Board members, by reason of one or more contested elections for Board membership, are no longer comprised of individuals who (A) were Board members at the  beginning  of such period or (B) have 

been elected or nominated for election as Board members during such period by at least a majority of Board members described in clause (A).

         In the event a Constructive Termination event has occurred, other than on or within twelve (12) months following a Change of Control, Executive may, in his sole discretion, provide Company with his written notice of resignation within ninety (90) days of the occurrence of any of the Constructive Termination events, to be effective not less than thirty (30) days after receipt by Company, whereupon Executive shall cease to be employed by the Company. Upon receipt of such notice of resignation, Company shall promptly, but in no event later  than  sixty  (60) days after the  effective  date of the, termination,  pay to Executive by certified check, wire transfer funds, or other form of payment reasonably  acceptable to Executive,  a lump sum amount equal to the sum of (i) two (2) times the Executive's  annual salary at such compensation rate as is then in effect under the terms of this Agreement, and any extension or renewal thereof, plus (ii) Executive's most recent bonus. Such payment shall not be reduced by any charges, expenses, debts, set-offs or other deductions of any kind whatsoever except for required withholding taxes. All of Executive's unpaid or unvested equity grants and stock options that vest solely upon the passage of time shall be immediately vested.  The foregoing shall not apply to equity incentive awards that are earned and/or vested based on the satisfaction of performance metrics or goals, which awards shall be governed solely by their respective grant documents.  

         In the event of a Change of Control,  if the  Company shall terminate Executive's  employment hereunder without the occurrence of a Cause Event on or within twelve (12) months following a Change of Control and not due to death or disability,  or if during such time period a Constructive Termination event has occurred and Executive has, within (90)  days  of  the  occurrence  of  any of the Constructive  Termination events, given written notice of resignation to be effective not less than thirty (30) days after receipt by Company (whereupon Executive shall cease to be employed by the Company), then the Company shall  promptly, but in no event later than sixty (60) days, pay to Executive by certified  check, wire transfer funds, or other form of payment reasonably  acceptable to Executive, a lump sum amount equal to the  sum  of  (i)  three (3)  times the Executive's annual salary  at  such compensation rate as is then in effect under the terms of this  Agreement, and any extension or renewal thereof,  plus (ii) Executive's most recent bonus. Such payment shall not be reduced by any charges, expenses, debts, set-offs or other deductions of any kind whatsoever except for required withholding taxes. All of Executive's unpaid or unvested equity grants and stock options that vest solely upon the passage of time shall immediately vest in such event (to the extent such awards remain outstanding after the Change in Control).  The expiration date of any options which remain outstanding after the Change in Control and which would expire during the six month period following the date of termination pursuant to this paragraph will be extended to the date which is the earlier to occur of twelve months after the date of the termination or the expiration date of the original term of such grant.  The foregoing shall not apply to equity incentive awards that are earned and/or vested based on the satisfaction of performance metrics or goals, which awards shall be governed solely by their respective grant documents.  

4.7     In the event of a Change of Control, whether or not followed by termination of Executive's employment, all of Executive's unpaid or  unvested  equity grants and stock options that vest solely upon the passage of time shall be immediately vested.    The foregoing shall not apply to equity incentive awards that are earned and/or vested based on the satisfaction of performance metrics or goals, which awards shall be governed solely by their respective grant documents.   Nothing herein shall require that the Company or any successor to maintain any then-outstanding equity incentive awards following the occurrence of a Change in Control.

4.8     In the event of a Change of Control and subject to the Executive being terminated from employment on or within twelve (12) months following the Change in Control for any reason other than the occurrence of a “Cause Event” or as a result of Executive’s voluntary termination of employment without the occurrence of a Constructive Termination, Executive shall receive the value of 18 months of COBRA premiums paid in a cash lump sum no later than sixty (60) days after the date of termination.

4.9     If the Executive is a  "specified  employee" as such term is defined under  Section  409A of the  Internal  Revenue  Code of 1986, as amended  (the "Code"),  on the date of his termination of employment and if the benefits to be provided under this  Agreement are subject to Section 409A of the Code and are payable on account of a termination of employment, payment in respect of such benefits shall not be paid or  commence until the earliest of (i) the first business day that is six months  after the date of termination of employment, (ii) Executives date of death, or (iii) such other earlier date for which such payment will not be subject to additional tax or interest imposed by Section 409A of the Code, and shall otherwise be paid as provided in this Agreement.

4.10      Notwithstanding any of the above to the contrary, the Executive will not be entitled to any of the payments provided in this Article 4 (other than in connection  with a Change of Control) if (i) the Executive materially breaches this Agreement,  including the provisions of Article 5, or (ii) the Executive fails to execute and return an effective 

release from liability and waiver of right to sue the Company or its affiliates in a form  reasonably  acceptable to the Company  waiving all claims the Executive may have against the Company, its affiliates, and their predecessors, successors, assigns, employees, officers and directors and such other  parties and in such form as determined by the Company in its sole discretion within fifty-two (52) days after the date of termination of the  Executive's  employment  (or such  shorter  period as may be required to be provided by law or as determined by the Company and provided in the release), and the release becoming effective.

4.11     To the extent any amount payable under this Article 4 is deferred compensation subject to the Code, if the period during which the Executive has discretion to execute or revoke the general release of claims straddles two of your taxable years, then the Company shall make the severance payments starting in the second of such taxable years, regardless of which taxable year the Executive actually deliver the executed general release of claims to the Company.  The Executive may not, directly or indirectly, designate the calendar year or timing of payments.”

2.    Except for the above amendment, the Employment Agreement shall be unamended and shall continue in full force and effect.

[Remainder of Page Intentionally Blank]

IN WITNESS WHEREOF,  the parties have executed this Amendment as of the day and year first above written.
	
		
	 
	SYNERGY RESOURCES CORPORATION

	 
	 

	 
	/s/ James P. Henderson

	 
	James P. Henderson

	 
	Chief Financial Officer

	 
	 

	 
	EXECUTIVE

	 
	 

	 
	/s/ Lynn A. Peterson

	 
	Lynn A. Peterson

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