Document:

Exhibit 10.1

 

SEALED AIR CORPORATION

ANNUAL INCENTIVE PLAN

 

As effective January 1, 2008

 

1.             Purpose. 
The purpose of the Annual Incentive Plan (the “Plan”) is to enhance the
ability of Sealed Air Corporation and its subsidiaries (collectively, the
“Company”) to motivate, attract, and retain the services of individuals upon
whose judgment, interest, and special effort the successful conduct of the
Company’s operation is largely dependent. 
The Plan furthers these goals by providing eligible employees of the
Company an opportunity to participate in the Company’s success by earning
annual incentive compensation in the form of a cash bonus (or in certain cases,
a stock award) based on the achievement by the Company of certain
pre-established goals and the employees’ contributions towards meeting the
goals.

 

2.             Eligibility. 
Participation in the Plan will be limited to those key employees that
are selected for participation on an annual basis.  Key employees selected for participation each
year will be notified about their participation and about the goals and
objectives for the year early in the year. 
Newly hired key employees or employees promoted into an eligible role
will be notified about their participation in the Plan in connection with such
hiring or promotion.  Each eligible
employee will have a target bonus expressed as a percentage of base salary,
dollar amount or other method of expression.

 

3.             Determination of Annual Bonuses.

 

(a)           Determination of Company-Wide Pool.  The target Company-wide annual bonus pool for
a calendar year will equal the sum of all of the individual target awards of
participating employees for the year. 
The funding of the Company-wide annual bonus pool for the year will be
determined as a percentage of the target pool as follows:

 

	
  (i)

  	
   

  	
  Early in the year, the Organization and Compensation Committee (the
  “Committee”) of the Board of Directors will establish a schedule based on
  overall Company performance for the year (measured by one or more
  Company-wide financial, strategic or other goals, with related weightings if
  more than one goal is selected), with a threshold level of goal attainment
  below which no pool would be funded and a maximum level of goal attainment at
  or above which a maximum pool would be funded, in each case subject to
  subparagraphs (ii), (iii) and (iv) below. The schedule will be
  reviewed and may be adjusted each year by the Committee.

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  The Committee will have discretion to fund a portion of the pool if
  an extraordinary event occurs that adversely affects Company performance
  (such as a natural disaster causing significant business disruption) and the

  

 

 

 

	
   

  	
   

  	
  Committee determines nonetheless that the Company performed well
  relative to its peers.

  
	
   

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  If a Company-wide bonus pool is funded for a year per the applicable
  schedule established in subparagraph (i) above, the Committee may in its
  discretion, upon consultation with the Chief Executive Officer (“CEO”),
  adjust the funded pool for the year up or down by up to 25% of the target
  pool to recognize quality of earnings, performance relative to peers, or
  other facts.

  
	
   

  	
   

  	
   

  
	
  (iv)

  	
   

  	
  In addition, a minimum funded pool equal to 25% of the target
  Company-wide annual bonus pool will be available to award exceptional
  business unit or individual performance, even if Company-wide performance
  falls below the threshold level for the year per the schedule established in
  subparagraph (i) above.

  

 

(b)           Allocation of Pool to Corporate, Business Units and
Functions.  The CEO will divide the
funded Company-wide pool determined in section (a) above among Corporate,
Business Units and Functions based on a review of each unit’s performance for
the year.  In that regard, each Business
Unit and Function will have its own performance goals (financial, strategic or
otherwise) for the year to be considered in determining the allocation.

 

(c)           Allocation to Individuals.  The funded Company-wide annual bonus pool for
a year will be allocated as individual bonus awards as follows: (i) the
Committee will determine the annual bonus award for the CEO, subject to section
4(b) below; (ii) the Committee, upon recommendation by the CEO, will
determine the annual bonus awards for (A) the Company’s other executive
officers, subject to section 4(b) below to the extent applicable, and (B) any
other eligible employees whose compensation is determined by the Committee; and
(iii) annual bonus awards to all other eligible employees will be
determined by the CEO, applicable Business Unit or Function heads or their
respective designees, all in accordance with Company practices as in effect
from time to time, and linked to individual performance ratings.  A correlation between performance ratings and
payments will be expected.

 

4.             Special Provisions for Senior Management Team.

 

[Note:  The Stock Leverage Opportunity
discussed below is subject to stockholder approval of amendments to the 2005
Contingent Stock Plan at the 2008 Annual Meeting.]

 

(a)           Stock Leverage Opportunity.  Prior to the start of each year, officers and
senior executives of the Company selected by the Committee will be given a
leveraged opportunity to receive restricted stock or restricted stock units
granted under the Company’s 2005 Contingent Stock Plan in lieu of cash as part
(either 0%, 25%, 50%, 75% or 100%) of their annual bonus award.  The portion provided in stock may be given a
premium to be determined by the Committee each year and will be rounded up to
the nearest whole share.  The stock price
used in the calculation will be the closing sale price of the Company’s common
stock on the New York Stock Exchange Composite Tape on the first day of the
applicable performance year 

 

 

 

2

 

on which shares of the
Company’s common stock are sold.  The
grant date for such restricted stock will be established by the Committee and
will be no earlier than the date the Committee determines the annual bonus
award for an executive officer and no later than March 15 of the year in
which the annual bonuses for the year are otherwise paid.  Such restricted stock or restricted stock
units will vest 100% on the second anniversary of the grant date or earlier in
the case of death, disability (as defined in the 2005 Contingent Stock Plan) or
retirement from employment by the Company.   
All other terms and conditions of the restricted stock or restricted
stock unit award will be set forth in an Award Grant consistent with the
requirements of the 2005 Contingent Stock Plan. 
“Retirement” for this purpose will mean termination of employment after
five or more years of employment with the Company and with years of employment
plus age equal to 70 or more.  Each
eligible officer or other senior executive will be required to complete a stock
leverage opportunity election form each year on which he or she will
acknowledge that the annual bonus for the year is subject to the Company’s
Policy on Recoupment of Incentive Compensation.

 

(b)           Maximum Bonuses Under Performance-Based Compensation
Program.  For the CEO and any other
participants in the Company’s Performance-Based Compensation Program during a
year, the annual bonus and restricted stock or restricted stock unit award, if
any, under subsection (a) above for the year will be limited to the
maximum bonus or award amount as determined under the applicable
pre-established objective performance formula for the year per the terms of
that program.

 

5.             Timing of Payments.  Annual bonus awards will be determined and
paid no later than March 15 following the applicable performance year.

 

6.             Impact of Termination of Employment.  Except as the Company may otherwise determine
in its discretion, payment to an eligible employee of an annual bonus for a
year is conditioned on the employee remaining continuously employed with the
Company or its subsidiaries and affiliates through the applicable payment date.

 

7.             Other Provisions.

 

(a)           Payments will be net of applicable taxes and/or
withholdings.

 

(b)           Payments will be taken into account for purposes of the
Company’s employee benefit plans and programs only to the extent provided under
the terms of such plans and programs.

 

(c)           Committee and Company management discretion serves as
final authority over the Plan, its interpretation and all incentive awards and
their payment.

 

(d)           This Plan may be modified or discontinued at any time with
or without notice at the discretion of the Company. Participation in this Plan
cannot be construed to constitute a contract of employment or otherwise between
the Company or any of its subsidiaries or affiliates and any of its employees.
Plan participation does not limit the Company from terminating the employment
of an employee at any time, with or without cause or notice.  

 

 

3

 

Participation in the Plan
during a year does not imply participation in any subsequent year.  This Plan shall be administered, interpreted
and enforced so as to ensure its compliance with all applicable laws, and
nothing herein is intended or should be construed to violate any such law.

 

 

4Exhibit 10.1

 

	
  

  Executive Officer

  	
   

  	
  

  2008 Base Salary(1)

  	
   

  	
  2008 Target Bonus

  (% of Base Salary)(2)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Henry E. Blair

  Chairman, President and Chief Executive Officer 

  	
   

  	
  $

  	
  650,000

  	
   

  	
  45.0

  	
  %

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gustav A. Christensen 

  Executive Vice President and Chief Business Officer 

  	
   

  	
  $

  	
  375,000

  	
   

  	
  40.0

  	
  %

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stephen S. Galliker 

  Executive Vice President, Finance and Chief Financial Officer 

  	
   

  	
  $

  	
  301,479

  	
   

  	
  37.5

  	
  %

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ivana
  Magovcevic-Liebisch, Ph.D., J.D.

  General Counsel and Executive Vice President of Administration 

  	
   

  	
  $

  	
  355,000

  	
   

  	
  37.5

  	
  %

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Clive R. Wood, Ph.D.

  Executive Vice President, DiscoveryResearch and Chief Scientific Officer 

  	
   

  	
  $

  	
  355,000

  	
   

  	
  37.5

  	
  %

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 (1) These base salaries were made
retroactive to January 1, 2008.

 

 (2) The target bonus opportunity can be
exceeded by up to 20% of the target for exceptional performance. For example,
an executive with a target bonus of 30% who has outstanding performance can
receive a bonus of as much as 36% of base salary.

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