Document:

2013 Exhibit 10.37 PIP Plan

EXHIBIT 10.37 

PerkinElmer, Inc.

Performance Incentive Plan (Executive Officer)

(amended and restated effective December 30, 2013)

1.    PURPOSE

1.1    The Performance Incentive Plan (“Plan”) provides senior and other key leaders with an opportunity to earn annual cash bonus awards based on the achievement of financial and non-financial objectives. This document governs the policy and administration of the Plan for the executive officers of PerkinElmer, Inc. (the “Company”).

2.    PARTICIPATION

2.1    The Compensation and Benefits Committee of the Board of Directors (“the Committee”) has the sole discretion to approve executive officer participation in the Plan and the target award assigned to each executive officer (a “Participant”).  

3    PERFORMANCE PERIOD

3.1    A Plan year begins on the first day of the fiscal year and ends on the last day of the same fiscal year. The Plan year may be divided into one or more performance periods as determined by the Committee.   

4.    TARGET AWARDS

4.1    Before the earlier of (i) 90 days after the commencement of the performance period or (ii) the expiration of 25% of the performance period (the “Determination Period”), the Committee will establish in writing a target award for each Participant which will be expressed as a percentage of base salary.

4.2    A Participant’s target award is calculated as his or her base salary for the performance period (as established at the start of the performance period) times his or her target percentage as defined in section 4.1. The target award is the award for the performance period if pre-set financial measures are achieved.

5.    FINANCIAL MEASURES

5.1    Before the expiration of the Determination Period, the Committee will establish in writing financial measures. The financial measures and weightings are described in Attachment A, as determined from time to time. The Committee will also approve the assignment of the approved financial measures to each Participant for the purpose of Plan award calculation.

5.2    The Committee also may set specified payout percentages for each financial measure for achievements between (1) the minimum achievement level and the target achievement level; and (2) between the target achievement level and the maximum achievement level. In the event only the minimum, target, and maximum achievement levels are set, payout percentages for performance above and below the target level shall be calculated on a linear basis. 

5.3    The Committee has the right to reduce (but not to increase) calculated awards to one or more Participants if the Company fails to achieve minimum performance levels, as determined by the Committee in its sole discretion.

EXHIBIT 10.37 

6.    PLAN AWARD POOL DETERMINATION

6.1    At the end of the performance period, the Committee shall certify in writing the attainment of the financial measures and the payout percentage based on the level of achievement for each Participant against the financial measures established as described in section 5. 

7.    AWARD CALCULATIONS

7.1    A Participant’s calculated award is determined by multiplying the Participant’s target award for the performance period times the Plan payout percentage for the Participant’s assigned financial measures. 

7.2    The final award to each Participant shall be reviewed and approved by the Committee.  The Committee may reduce (but not increase) the final award to a Participant based on its evaluation of the Participant’s performance.  

8.    EMPLOYMENT CHANGES AFFECTING AWARD CALCULATIONS

8.1    All pro-rations shall occur on a whole month basis. In the event of a change requiring pro-ration, changes occurring prior to the 16th of the month will become effective the first of that month. Changes occurring on or after the 16th of the month will become effective the first day of the following month.

8.2    If a Participant is hired or is otherwise approved for participation on or after the first day of the performance period, the Participant’s award shall be pro-rated as described in section 8.1.

8.3    If a Participant is absent from work on an approved leave of absence during the performance period, the Participant’s award shall be pro-rated as described in section 8.1 so that the paid award is proportionate to the time actually worked during the performance period.

8.4    If a Participant is promoted into a position with a higher target percentage during a performance period, the Participant’s target award shall be based on his or her target percentage on the last day of the performance period.  Any target percentage change and the effective date of the change shall be approved by the Committee.

8.5    If a Participant is not a full-time employee, the Participant’s target award shall be pro-rated based on scheduled work hours.  For example, the award will be pro-rated to 75% for a Participant who is regularly scheduled to work 30 hours per week.  If a Participant has a change to scheduled work hours during a performance period, the Participant’s target award shall be pro-rated as described in section 8.1. 

8.6    In the event a Participant’s employment is terminated prior to the payment of the award due to retirement, death, disability, or other reason, the Participant shall not be entitled to an award. The last sentence notwithstanding, the Committee may approve a payment to the Participant (or the Participant’s estate) of all or a portion of a Plan award.  If approved by the Committee, the award payment will be calculated following completion of the performance period based on performance against the assigned financial measures and will be paid on the regularly scheduled award payment date for that performance period. The decision of the Committee shall be conclusive and binding upon all parties. 

9.    PAYMENT OF AWARDS

9.1    Payment of awards to Participants will be made upon approval by the Committee and after the public release of the Company’s financial results for the applicable performance period, but in no event later than the 15th day of the third month following the calendar year in which the performance period ends. Participants must be actively employed with the Company on the day awards are paid to be entitled to an award, except as provided in section 8.6

EXHIBIT 10.37 

9.2    The Company will withhold all applicable taxes and other required withholdings from award payments, including where applicable contributions to the Company’s Savings Plan (401(k) plan). 

10.    RECOUPMENT OF AWARDS

10.1    This recoupment provision will apply to Plan awards paid to Participants for performance periods beginning on and after December 30, 2013.

10.2        In the event the Company is required to prepare an accounting restatement due to material noncompliance by the Company with any financial reporting requirement under  the federal securities laws of the United States, the Committee will have the right to recover from  any current or former Participant who received an award payment during the three-year period preceding the date on which the Company files an accounting restatement with the Securities and Exchange Commission, all or a portion of the excess paid to the Participant over the award payment that would have been paid to the Participant under the accounting restatement. 

10.3         The Committee, in its sole discretion, will make the determination whether to recover all or a portion of any excess award payment.  In making its determination, the Committee will consider the facts and circumstances leading to the accounting restatement, including whether Participant misconduct was a factor.

10.4    If the Committee determines recovery of all or a portion of an excess award payment is appropriate, the Company will use reasonable efforts to recover the award.

10.5    Nothing in this Plan shall be deemed to limit or restrict the right or obligation of the Company to recover award payments to the fullest extent required under Section 304 of the Sarbanes-Oxley Act of 2002 or Section 10D of the Securities Exchange Act of 1934.

11.    ADMINISTRATION OF THE PLAN

11.1    The Committee reserves the right to amend, change, suspend or terminate the Plan at any time.  

11.2    The Committee will have full and final authority to prescribe, amend, and rescind rules and regulations relating to the Plan; to interpret the Plan and the rules and regulations relating to the Plan; and to make all other determinations deemed necessary or advisable for administration of the Plan.  Such administrative action shall be conclusive and binding on all parties.

11.3    The Plan is governed by the terms and conditions set forth in the Company’s shareholder-approved 2009 Incentive Plan, or any successor shareholder-approved plan and is intended to permit cash bonus awards that comply with performance-based compensation rules of Section 162(m) of the Internal Revenue Code.

12.    NON-ASSIGNABILITY

12.1    A Participant’s award under the Plan shall not (otherwise than by will or the laws of descent and distribution) be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge.  Any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same shall be null and void.

13.    NO RIGHT TO CONTINUED EMPLOYMENT

EXHIBIT 10.37 

13.1    The Plan shall not, by its terms, in any way grant any rights to any Participant to his or her continued employment by the Company, and the Company shall maintain any rights it might otherwise have to terminate the employment of any Participant.

EXHIBIT 10.37 

PerkinElmer, Inc.

Performance Incentive Plan

Attachment AWdesk | WFT 12.31.13 EX 10.40

Exhibit 10.40

November 4, 2013

Peter Fontana
via email to Peter.Fontana@weatherford.com

Re:    Separation Agreement

Dear Peter:

Pursuant to the terms of your Employment Agreement, as defined below, please consider this letter as official notice by Weatherford International Ltd. and its subsidiaries (“Weatherford”) of non-renewal of your Agreement beyond the current Employment Period, as well as full and final agreement regarding your separation from service from Weatherford.  As part of your separation, you agree that you will step down as Executive Vice President and Chief Operating Officer of Weatherford as of the close of business on November 4, 2013, but continue as a regular, full-time employee until your separation becomes finally effective at the close of business on December 13, 2013 (the “Separation Date”).  You will also execute any necessary documents requested by Weatherford, including resignation letters, relating to any positions or powers of attorney you hold for any Weatherford affiliates. In full, complete and final settlement of all amounts owed by Weatherford to you under your Employment Agreement with Weatherford, dated April 19, 2010, (your “Employment Agreement”), your assignment letters dated May 19, 2010, December 30, 2010, and January 9, 2012 1 (your “Assignment Letters”), various award agreements covering as yet unvested equity awards granted to you (“Awards”) and in satisfaction of any other end-of-service obligations or statutory benefits, Weatherford will provide you the financial compensation outlined in this letter.

For purposes of your Employment Agreement, Assignment Letters and Awards, and as agreed by you and Weatherford, the termination of your employment relationship is effective as of the Separation Date.

Pursuant to Section 5(b)(i) of your Employment Agreement, Weatherford will pay to you, in British pounds, the Accrued Obligation reflected in Table 1 below within 30 days of the Separation Date. You acknowledge and agree that Weatherford may withhold appropriate and applicable taxes from the amounts to be paid or processed but that you are ultimately responsible for the payment of your income and personal taxes and any other personal remuneration related tax expenses applicable to you.

From the date hereof to and until the Separation Date, you will continue to be paid your base salary and the amounts set forth in the Assignment Letter dated December 30, 2010, i.e. your annual stipend, local coefficient and international service premium, in accordance with normal payroll practices.

Within 30 days following your Separation Date, Weatherford will pay you a lump sum equal to the total amount set forth on Table 2 below.

	
		
	 
	 

	 
	 

1 Letter contains a typographical error, date referenced in letter states 2011 instead of 2012. 

	
			
	Weatherford
	+1.713.836.4117 Direct
	www.weatherford.com

	2000 St. James Place
	+1.713836.5050 Fax
	 

	Houston, TX 77056
	 
	 

	USA
	 
	 

Peter Fontana
November 4, 2013
Page 2

Pursuant to Section 5(b)(ii) of your Employment Agreement, you and your dependents will have continued insurance coverage for one year from the Separation Date, provided that you continue to pay the monthly employee contribution for benefits requiring an employee contribution.  The current monthly payments for your benefit selections requiring an employee contribution are:  

Medical:        USD 165.00 per month
Dental:            USD   24.00 per month
Vision:            USD     0.00 per month
Total            USD 189.00 per month

Payments should be made to Weatherford and mailed to “Benefits” at 2000 St. James Place, Houston, Texas 77056.  These rates are effective through December 31, 2013 and are subject to change January 1, 2014.  You will be notified of any change in payments as well as be given an opportunity to change any of your plans during any open-enrollment period.  If you become re-employed with benefits during the one-year period, Weatherford benefit plans become secondary to coverage provided by a new employer.

You acknowledge your continuing obligations with respect to confidential information and Work Product under Sections 9 and 10 of the Employment Agreement and your obligations with respect to non-competition and non-solicitation under Section 11 of your Employment Agreement.

Pursuant to Section 5(b)(i)(A)(II) of your Employment Agreement and various Awards, you will have restricted share units and performance units vest as shown in Table 3 below.  These will be transferred to your account in accordance with the terms of the various Awards.  

The termination of your employment and your Employment Agreement does not reduce any rights you have under the indemnification agreement(s) between you and Weatherford or its subsidiaries.

Further, you and Weatherford agree that for a transitional period, as may be mutually agreed, commencing on the Separation Date, you will provide continuous consulting services to the Company as requested by Weatherford, such services expected to be rendered during normal business hours and upon reasonable notice.  During the consulting period, you will be compensated at a rate of USD $50,000 per month, but such monthly rate shall be paid only starting April 19, 2014 and you agree that no other specific compensation or payments will be owed for services rendered prior to such date.  You will be reimbursed normal and reasonable business expenses during this time.  This consulting arrangement may be terminated at any time by either party upon 30 days written notice. 

Please let me know if you have any questions regarding these matters. Otherwise, please execute this letter agreement where indicated below.
                            	
		
	Best regards,
	 

	 
	 

	/s/ Alejandro Cestero
	 

	Alejandro Cestero
	 

	Vice President and Co-General Counsel
	 

	
			
	Weatherford
	+1.713.836.4117 Direct
	www.weatherford.com

	2000 St. James Place
	+1.713836.5050 Fax
	 

	Houston, TX 77056
	 
	 

	USA
	 
	 

Peter Fontana
November 4, 2013
Page 3

Acknowledged and Agreed
As of November 4, 2013

	
		
	/s/ Peter T. Fontana
	 

	Peter T. Fontana
	 

Peter Fontana
November 4, 2013
Page 4

Table 1
	
			
	Clause of Section 5(b)
	Item
	Amount

	(i)(A)(I) (to be paid 
by January 13, 2014)
	Accrued Obligation 
(includes accrued vacation @ 86.75 days) 
	GBP213,869.11

	(i)(B)(II) (to be paid the later of 
January 13, 2014 or at the time annual bonuses are normally paid).
	Expected, Pro-rated 2013 bonus @ target, *however, final payment will be based on actual performance
	GBP609,381*

	(i)(B)(III) (to be paid 
by January 13, 2014)
	1 x base + bonus @ target
	GBP1,281,984

Table 2
	
			
	December 14, 2013 - April 18, 2014 

	Base:
	 

	     Salary
	222,566.67
	

	     Global Employee Retirement Savings Plan - match
	11,128.33
	

	International Benefits:
	 

	     International Service Premium
	22,256.67
	

	     Good and Services
	44,513.33
	

	     Stipend (in lieu of housing, auto and schooling)
	56,338.58
	

	 
	 

	Amount Due
	GBP 356,803.58
	

Table 3
	
					
	Award
	Grant Date
	Units
	Shares Vesting
	

	Restricted Share Units
	15 February 2011
	37,688
	37,688
	

	Restricted Share Units
	23 March 2012
	66,807
	66,807
	

	Restricted Share Units
	23 March 2012
	66,807
	66,807
	

	Performance Units (a)
	15 February 2011
	113,064
	TBD
	

	Performance Units (b)
	23 March 2012
	100,211
	TBD
	

	Performance Units (c)
	23 March 2012
	100,210
	TBD
	

	Performance Units (d)
	7 March 2013
	429,923
	TBD
	

	  Total
	 
	 
	TBD
	

(a) - (d)  Number of Shares Vesting for Performance Units to be calculated and measured as of  Separation Date of December 13, 2013.   For illustrative purposes only, as of September 30, 2013, the Performance Units would have vested as follows: 

		
	(a)
	Weatherford ranked fourth, so these awards vest at 0.0x the units. 

		
	(b)
	Weatherford ranked third, so these awards vest at 0.5x the units.

		
	(c)
	Weatherford’s CAGR was less than 10%, so these awards vest at 0.0x the units. 

		
	(d)
	Weatherford’s CAGR was greater than 20%, so these awards vest at 2.0x the units.

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