Document:

Exhibit 10.14

 

FORM OF
NON-QUALIFIED STOCK OPTION AGREEMENT

UNDER THE SECOND Amended and restated Hayward HOLDINGS, Inc.

2017 Equity Incentive Plan

Name of Optionee:       Lawrence
Silber (the “Optionee”)

 

	No. of Option Shares of Stock:	800 Shares of Class B Common Stock
	 	 
	Grant Date:	December 21, 2019 (the “Grant Date”)
	 	 
	Vesting Commencement Date:	November 22, 2019 (the “Vesting Commencement Date”)
		 
	Expiration Date:	December 21, 2029 (the “Expiration Date”)
	 	 
	Option Exercise Price/Share:	$272.92 (the “Option Exercise Price”)

 

Pursuant
to the Second Amended and Restated Hayward Holdings, Inc. 2017 Equity Incentive Plan (the “Plan”),
Hayward Holdings, Inc., a Delaware corporation (together with all successors thereto, the “Company”), hereby
grants to the Optionee, who is an officer, employee, director, consultant or other key person of the Company or any of its Subsidiaries,
an option (the “Stock Option”) to purchase on or prior to the Expiration Date, or such earlier date as is specified
herein, all or any part of the number of shares of Class B Common Stock, par value $0.001 per share of stock (“Stock”),
of the Company indicated above (the “Option Shares of Stock,” and such shares of stock once issued shall be
referred to as the “Issued Shares of Stock”), at the Option Exercise Price per share, subject to the terms and
conditions set forth in this Non-Qualified Stock Option Agreement (this “Agreement”) and in the Plan. This Stock
Option is not intended to qualify as an “incentive stock option” as defined in Section 422(b) of the Internal
Revenue Code of 1986, as amended from time to time (the “Code”).

 

1.            Definitions.
For the purposes of this Agreement, the following terms shall have the following respective meanings. All capitalized terms used
herein and not otherwise defined shall have the respective meanings set forth in the Plan.

 

“Business
Day” means any day except a Saturday, a Sunday or any other day on which commercial banks in New York, New York are authorized
or required by law to close.

 

“CCMP Investor”
means, collectively, CCMP Capital Investors III, L.P., CCMP Capital Investors III (Employee), L.P. and any of their respective
Affiliates that is a transferee of any CCMP Investor Shares or otherwise acquires equity securities of the Company.

 

“CCMP
Investor Shares” means the equity securities of the Company acquired by the CCMP Investor in connection with its
investment in the Company, whether acquired before, on or after the date hereof, and any additional securities received in respect
thereof, as a dividend on, or otherwise on account of, such equity securities.

 

    

     

    

 

“Disability”
means, with respect to any Optionee, the meaning set forth in such Optionee’s Employment Agreement. If such Optionee does
not have an Employment Agreement or “Disability” is not defined in such agreement, “Disability” shall mean
the failure or inability of the Optionee to perform duties with the Company or any of its Affiliates for a period of at least 180
consecutive days (or 180 days during any twelve (12) month period) by reason of any physical or mental condition, as determined
in good faith by the Company in its sole discretion; provided, that, if the Company’s long term disability plan contains
a definition of “Disability,” the definition in such plan will control.

 

“Investor
Shares” means with respect to the CCMP Investor, the CCMP Investor Shares, and with respect to the MSD Investor,
the MSD Investor Shares.

 

“Investors”
means the CCMP Investor and the MSD Investor.

 

“MSD
Investor” means MSD Aqua Partners, LLC and any of its Affiliates that is a transferee of any MSD Investor Shares
or otherwise acquires equity securities of the Company.

 

“MSD
Investor Shares” means the equity securities of the Company acquired by the MSD Investor in connection with its
investment in the Company, whether acquired before, on or after the date hereof and any additional securities received in respect
thereof, as a dividend on, or otherwise on account of, such equity securities.

 

“Permitted
Transferee” means (i) any executor, administrator or testamentary trustee of the Optionee’s estate if such
Subscriber dies, (ii) any person or entity receiving Issued Shares of Stock by will, intestacy laws or the laws of descent
or survivorship, (iii) any trustee of a trust (including an inter vivos trust) of which there are no principal beneficiaries
other than such Optionee, the Optionee’s spouse or one or more of the Optionee’s lineal decedents or (iv) any
corporation, partnership, limited liability company or similar entity controlled by the Optionee (within the meaning of “Control”
as defined in the Stockholders’ Agreement) and of which there are no principal beneficiaries or owners other the Optionee,
the Optionee’s spouse or one or more of the Optionee’s lineal decedents.

 

“Securities
Act” means the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations
of the Commission promulgated thereunder, all as the same shall be in effect from time to time.

 

“Service
Relationship” means any relationship as an employee, part-time employee, director or other key person (including
consultants) of the Company or any Subsidiary or any successor entity such that, for example, a Service Relationship shall be deemed
to continue without interruption in the event the Optionee’s status changes from full-time employee to part-time employee
or consultant.

 

“Stockholders’
Agreement” means the Stockholders’ Agreement, dated August 4, 2017, as it may be amended, modified or amended
and restated from time to time.

 

2.            Vesting,
Exercisability and Termination. One hundred percent (100%) of this Stock Option shall be subject to time-based vesting criteria.
No portion of this Stock Option may be exercised until such portion shall have vested. Except as set forth below, and subject to
the terms and conditions set forth in the Plan, determination of the Committee in its sole discretion to accelerate the vesting
schedule hereunder, this Stock Option shall become vested and exercisable as follows:

 

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(a)          Time-Vesting.

 

(i)            General.
Subject to accelerated vesting as provided in Section 2(a)(iii) below, the Options shall vest in five (5) equal
installments on each of November 22, 2020, November 22, 2021, November 22, 2022, November 22, 2023, and November 22,
2024, if the Optionee remains in a continuous Service Relationship from the vesting commencement date to the applicable vesting
date.

 

(ii)           Initial
Public Offering. In the event of an IPO which does not constitute a Change of Control, any unvested Options shall remain outstanding
and remain subject to the same vesting schedule set forth herein.

 

(iii)          Change
of Control. Subject to and effective immediately prior to the consummation of a Change of Control, all Options shall be deemed
vested, provided that the Optionee remains in a continuous Service Relationship from the vesting commencement date to the date
of the consummation of the Change of Control.

 

(b)          Additional
Vesting Upon Death or Disability. In the event that the Optionee’s Service Relationship terminates by reason of such
Optionee’s death or Disability, the portion of the Optionee’s Options that would have vested had the Optionee continued
his Service Relationship until the period ending one year after such termination shall immediately vest.

 

For purposes hereof,
the Committee’s good faith determination of the reason for termination of the Optionee’s Service Relationship shall
be conclusive and binding on the Optionee and his representatives or legatees or Permitted Transferees. Subject to Section 2(b) above,
any portion of this Stock Option that is not exercisable on the date of termination of the Service Relationship shall terminate
immediately and be null and void.

 

3.            Exercise
of Stock Option.

 

(a)          The
Optionee may exercise this Stock Option, to the extent then vested, only in the following manner: Prior to the Expiration Date,
the Optionee may deliver a Stock Option exercise notice (an “Exercise Notice”) in the form of Appendix A
hereto indicating his election to purchase some or all of the Option Shares of Stock with respect to which this Stock Option is
exercisable at the time of such notice. Such notice shall specify the number of Option Shares of Stock to be purchased. Payment
of the purchase price may be made by one or more of the methods described below (payment instruments will be received subject to
collection):

 

(i)            in
cash, by certified or bank check, by wire transfer of immediately available funds, or other instrument acceptable to the Committee
in U.S. funds payable to the order of the Company in an amount equal to the purchase price of such Option Shares of Stock;

 

(ii)           by
the Optionee delivering to the Company a promissory note if the Board has expressly authorized the loan of funds to the Optionee
for the purpose of enabling or assisting the Optionee to effect the exercise of his Stock Options; provided, that at least
so much of the exercise price as represents the par value of the Stock shall be paid other than with a promissory note if otherwise
required by state law; or

 

(iii)          if
the IPO has occurred, then (A) through the delivery (or attestation to ownership) of shares of Stock that have been purchased
by the Optionee on the open market or that are beneficially owned by the Optionee and are not subject to restrictions under any
plan of the Company; provided, that, to the extent required to avoid variable accounting treatment under ASC 718 or other
applicable accounting rules, such surrendered shares shall have been owned by the Optionee for at least six months, and in any
event with an aggregate Fair Market Value (as of the date of such exercise) equal to the option purchase price, (B) by the
Optionee delivering to the Company a properly executed Exercise Notice together with irrevocable instructions to a broker to promptly
deliver to the Company cash or a check payable and acceptable to the Company to pay the option purchase price, provided that in
the event the Optionee chooses to pay the option purchase price as so provided, the Optionee and the broker shall comply with such
procedures and enter into such agreements of indemnity and other agreements as the Committee shall prescribe as a condition of
such payment procedure, or (C) a combination of (i), (ii), (iii)(A) and (iii)(B) above.

 

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(b)          Certificates
for the Option Shares of Stock so purchased will be issued and delivered to the Optionee upon (i) compliance to the satisfaction
of the Committee with all requirements under applicable laws or regulations in connection with such issuance and (ii) delivery
of an executed Joinder Agreement (as defined in the Stockholders’ Agreement) pursuant to which the Optionee agrees to become
a party to the Stockholders’ Agreement as a “Management Stockholder” and an “Other Stockholder” (in
each case, as defined in the Stockholders’ Agreement). Until the Optionee shall have complied with the requirements hereof
and of the Plan, the Company shall be under no obligation to issue the Option Shares of Stock subject to this Stock Option, and
the determination of the Committee as to such compliance shall be final and binding on the Optionee. The Optionee shall not be
deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Stock subject to this Stock
Option unless and until this Stock Option shall have been exercised pursuant to the terms hereof, the Company shall have issued
and delivered the Issued Shares of Stock to the Optionee, and the Optionee’s name shall have been entered as a stockholder
of record on the books of the Company. Thereupon, the Optionee shall have full dividend and other ownership rights with respect
to such Issued Shares of Stock, subject to the terms of this Agreement and the Stockholders’ Agreement.

 

(c)          Upon
the exercise of the Stock Option, Issued Shares of Stock shall be subject to the terms and conditions of the Stockholders’
Agreement.

 

(d)          Notwithstanding
any other provision hereof or of the Plan, no portion of this Stock Option shall be exercisable after the Expiration Date.

 

(e)          Timing
of Exercise.

 

(i)            Termination
Due to Death or Disability. If the Optionee’s Service Relationship terminates by reason of such Optionee’s death
or Disability, this Stock Option may be exercised, to the extent exercisable on the date of such termination, by the Optionee,
the Optionee’s legal representative or legatee for a period of 12 months from the later of (A) the date of death or
Disability of such Optionee or (B) the date such Stock Option vests, or until the Expiration Date, if earlier.

 

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(ii)           Other
Termination. If the Optionee’s Service Relationship terminates for any reason other than death or Disability, and unless
otherwise determined by the Committee, this Stock Option may be exercised, to the extent exercisable on the date of termination,
for a period of 90 days following termination and, to the extent not exercised within such period, shall automatically terminate
in all respects; provided however, if the Optionee’s Service Relationship is terminated for Cause, this Stock
Option, whether vested or unvested, shall terminate immediately upon the date of such termination.

 

4.            Incorporation
of Plan. Notwithstanding anything herein to the contrary, this Stock Option shall be subject to and governed by all the terms
and conditions of the Plan.

 

5.            Transferability
of Stock Option. This Agreement is personal to the Optionee and is not transferable by the Optionee in any manner other than
(a) by will or by the laws of descent and distribution or (b) to a Permitted Transferee; provided, however,
that such Permitted Transferee shall, as a condition to any such transfer, execute such documentation as the Company may reasonably
request. The Stock Option may be exercised during the Optionee’s lifetime only by the Optionee (or by the Optionee’s
guardian or personal representative in the event of the Optionee’s incapacity) or the Optionee’s Permitted Transferee,
as applicable. The Optionee may elect to designate a beneficiary by providing written notice of the name of such beneficiary to
the Company, and may revoke or change such designation at any time by filing written notice of revocation or change with the Company;
such beneficiary may exercise the Optionee’s Stock Option in the event of the Optionee’s death to the extent provided
herein. If the Optionee does not designate a beneficiary, or if the designated beneficiary predeceases the Optionee, the legal
representative of the Optionee may exercise this Stock Option to the extent provided herein in the event of the Optionee’s
death.

 

6.            Effect
of Certain Transactions. In the case of a Liquidity Event (as defined in the Plan), provision may be made in connection with
such transaction, in the sole discretion of the parties thereto, for the continuation or assumption by the successor entity of
this Stock Option heretofore granted, or the substitution of this Stock Option with a new Stock Option of the successor entity
or a parent thereof; provided that any such substitution must be on substantially equivalent terms of the successor entity or parent
thereof, with an equitable or proportionate adjustment as to the number and kind of shares, and, if appropriate, the per share
exercise prices, as such parties shall agree.

 

7.            Withholding.
The Optionee shall be responsible for satisfying and paying all taxes arising from or due in connection with the Stock Option,
its exercise or a disposition of Issued Shares of Stock acquired upon exercise of the Stock Option. The Company shall have no liability
or obligation related to the foregoing.

 

8.            Restrictions
on Transfer of Issued Shares of Stock. None of the Issued Shares of Stock acquired upon exercise of the Stock Option shall
be sold, assigned, transferred, pledged, hypothecated, given away or in any other manner disposed of or encumbered, whether voluntarily
or by operation of law, unless such transfer is in compliance with all applicable securities laws (including, without limitation,
the Act), the terms and conditions of Sections 8 and 9 hereof and the terms and conditions of the Stockholders’
Agreement and such disposition does not cause the Company to become subject to the reporting requirements of the Exchange Act.
In connection with any transfer of Issued Shares of Stock, the Company may require the transferor to provide at the Optionee’s
own expense an opinion of counsel to the transferor, satisfactory to the Company, that such transfer is in compliance with all
foreign, federal and state securities laws (including, without limitation, the Act). Any attempted disposition of Issued Shares
of Stock not in accordance with the terms and conditions of Sections 8 and 9 hereof and the Stockholders’ Agreement
shall be null and void, and the Company shall not reflect on its records any change in record ownership of any Issued Shares of
Stock as a result of any such disposition, shall otherwise refuse to recognize any such disposition and shall not in any way give
effect to any such disposition of any Issued Shares of Stock. Subject to the foregoing general provisions, Issued Shares of
Stock may be transferred pursuant to the following specific terms and conditions:

 

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(a)          Transfers
to Permitted Transferees. The Optionee may sell, assign, transfer or give away any or all of the Issued Shares of Stock to
Permitted Transferees; provided, however, that such Permitted Transferee(s) shall, as a condition to any such
transfer, agree to be subject to the provisions of this Agreement to the same extent as the Optionee (including, without limitation,
the provisions of Sections 8, 9, 11 and 12) and shall have delivered a written acknowledgment to that
effect to the Company.

 

(b)          Transfers
Upon Death. Upon the death of the Optionee, any Issued Shares of Stock then held by the Optionee at the time of such death
and any Issued Shares of Stock acquired thereafter by the Optionee’s legal representative pursuant to this Agreement shall
be subject to the provisions of Sections 8, 9, 10, 11 and 12, if applicable, and the Optionee’s
estate, executors, administrators, personal representatives, heirs, legatees and distributees shall be obligated to convey such
Issued Shares of Stock to the Company or its assigns under the terms contemplated hereby.

 

9.            Company’s
Right of Repurchase.

 

(a)          Right
of Repurchase. Upon a Termination Event (as defined below), the Issued Shares of Stock held or subsequently acquired upon exercise
of this Stock Option in accordance with the terms hereof by the Optionee (or any Permitted Transferee) shall be subject to the
repurchase rights set forth in Section 2.5 of the Stockholders’ Agreement (the “Repurchase Right”).

 

(b)          Company’s
Right to Exercise Repurchase Right. The Company shall have the Repurchase Right in the event that the following event shall
occur (the “Termination Event”): the termination of the Optionee’s Service Relationship for any reason
whatsoever, regardless of the circumstances thereof, and including without limitation upon death, Disability, retirement, discharge
or resignation for any reason, whether voluntarily or involuntarily.

 

10.           
Escrow Arrangement.

 

(a)          Escrow.
In order to carry out the provisions of Sections 8, 9 and 11 of this Agreement more effectively, the Company
shall hold any Issued Shares of Stock in escrow together with separate stock powers executed by the Optionee in blank for transfer,
and any Permitted Transferee shall, as an additional condition to any transfer of Issued Shares of Stock, execute a like stock
power as to such Issued Shares of Stock. The Company shall not dispose of the Issued Shares of Stock except as otherwise provided
in this Agreement. In the event of any repurchase by the Company (or any of its assigns), the Company is hereby authorized by
the Optionee and any Permitted Transferee, as the Optionee’s and each such Permitted Transferee’s attorney-in-fact,
to date and complete the stock powers necessary for the transfer of the Issued Shares of Stock being purchased and to transfer
such Issued Shares of Stock in accordance with the terms hereof. At such time as any Issued Shares of Stock are no longer subject
to the Company’s repurchase and drag along rights, the Company shall, at the written request of the Optionee, deliver to
the Optionee (or the relevant Permitted Transferee) a certificate representing such Issued Shares of Stock with the balance of
the Issued Shares of Stock to be held in escrow pursuant to this Section 10.

 

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(b)            Remedy.
Without limitation of any other provision of this Agreement or other rights, in the event that the Optionee, any Permitted Transferees
or any other Person is required to sell the Optionee’s Issued Shares of Stock pursuant to the provisions of Sections 9
and 11 of this Agreement and in the further event that he or she refuses or for any reason fails to deliver to the Company
or its designated purchaser of such Issued Shares of Stock the certificate or certificates evidencing such Issued Shares of Stock
together with a related stock power, the Company or such designated purchaser may deposit the applicable purchase price for such
Issued Shares of Stock with a bank designated by the Company, or with the Company’s independent public accounting firm, as
agent or trustee, or in escrow, for the Optionee, any Permitted Transferees or other Person, to be held by such bank or accounting
firm for the benefit of and for delivery to him, her, them or it, and/or, in its discretion, pay such purchase price by offsetting
any indebtedness then owed by the Optionee as provided above. Upon any such deposit and/or offset by the Company or its designated
purchaser of such amount and upon notice to the Person who was required to sell the Issued Shares of Stock to be sold pursuant
to the provisions of Sections 9 and 11, such Issued Shares of Stock shall at such time be deemed to have been sold,
assigned, transferred and conveyed to such purchaser, the holder thereof shall have no further rights thereto (other than the right
to withdraw the payment thereof held in escrow, if applicable), and the Company shall record such transfer in its stock transfer
book or in any appropriate manner.

 

11.            Drag
Along Right. If the Investors at any time propose that the Company consummate (or commit to consummate), in one transaction
or a series of related transactions, a Change of Control (as defined in the Plan), the Optionee’s Issued Shares of Stock
(including for this purpose all of such Optionee’s or his Permitted Transferee’s Issued Shares of Stock that presently
or as a result of any such transaction may be acquired upon the exercise of options (following the payment of the exercise price
therefor)) shall be subject to the drag-along rights set forth in Section 2.4 of the Stockholders’ Agreement.

 

12.            Lockup
Provision. If the Company at any time shall register an offering and sale of shares common stock of the Company under the Securities
Act in an Underwritten Offering (as defined in the Stockholders’ Agreement), the Optionee agrees to be subject to the holdback
obligations set forth in Section 5.5 of the Stockholders’ Agreement. The Optionee agrees, if requested by the underwriter
engaged by the Company, to execute a separate letter reflecting the agreement set forth in this Section 12.

 

13.            Restrictive
Covenants. As a further condition to the issuance of this Stock Option pursuant to this Agreement, and as partial consideration
for the grant of the Stock Option, the Optionee agrees to be bound by the Non-Competition, Non-Solicitation, Confidentiality and
Assignment Agreement attached hereto as Appendix B.

 

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14.            Miscellaneous
Provisions.

 

(a)            Termination.
The Company’s repurchase rights pursuant to Section 9 and the drag along obligations pursuant to Section 11
shall terminate upon the closing of the Company’s IPO or upon consummation of any Liquidity Event (as defined in the Plan),
in either case as a result of which shares of the Company (or successor entity) of the same class as the Issued Shares of Stock
are registered under Section 12 of the Exchange Act and publicly traded on any national securities exchange.

 

(b)            Equitable
Relief. The parties hereto agree and declare that legal remedies may be inadequate to enforce the provisions of this Agreement
and that equitable relief, including specific performance and injunctive relief, may be used to enforce the provisions of this
Agreement.

 

(c)            Adjustments
for Changes in Capital Structure. If, as a result of any reorganization, recapitalization, reincorporation, reclassification,
stock dividend, stock split, reverse stock split or other similar change in the Stock, the outstanding shares of Stock are increased
or decreased or are exchanged for a different number or kind of shares of the Company’s stock, the restrictions contained
in this Agreement shall apply with equal force to additional and/or substitute securities, if any, received by the Optionee in
exchange for, or by virtue of his ownership of, Issued Shares of Stock.

 

(d)            Change
and Modifications. This Agreement may not be orally changed, modified, amended or terminated, nor shall any oral waiver of
any of its terms be effective. This Agreement may be changed, modified, amended or terminated only by an agreement in writing signed
by the Company and the Optionee.

 

(e)            Governing
Law. This Agreement shall be governed by and construed in accordance with the General Corporation Law of the State of Delaware
without regard to conflict of law principles that would result in the application of any law other than the law of the State of
Delaware.

 

(f)            Headings.
The headings are intended only for convenience in finding the subject matter and do not constitute part of the text of this Agreement
and shall not be considered in the interpretation of this Agreement.

 

(g)            Saving
Clause. If any provision(s) of this Agreement shall be determined to be illegal or unenforceable, such determination shall
in no manner affect the legality or enforceability of any other provision hereof.

 

(h)            Notices.
All notices, amendments, waivers or other communications pursuant to this Agreement shall be in writing and shall be deemed to
have been duly given if personally delivered, sent by e-mail or sent by nationally recognized overnight courier to the parties
hereto at the following addresses (or at such other address for any party hereto as shall be specified by like notice):

 

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if to the Company:

 

Hayward Holdings, Inc.

400 Connell Drive, Suite 6100

Berkeley Heights, NJ 07922

Attention:

Email:

 

if to the Optionee, as set forth
underneath the Optionee’s signatures below

 

or to such other address
as the party to whom notice is to be given may have furnished to each other party in writing in accordance herewith. Any such notice
or communication shall be deemed to have been given and received (w) when delivered, if personally delivered; (x) upon
machine generated acknowledgement of receipt after transmittal by electronic mail if so acknowledged to have been received before
5:00 p.m. on a Business Day at the location of receipt and otherwise on the next following Business Day; (y) on the next
Business Day after dispatch, if sent by nationally recognized overnight courier guaranteeing next Business Day delivery; and (z) on
the fifth Business Day following the date on which the piece of mail containing such communication is posted, if sent by mail.

 

(i)            Benefit
and Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their respective
successors, permitted assigns, and legal representatives. The Company has the right to assign this Agreement, and such assignee
shall become entitled to all the rights of the Company hereunder to the extent of such assignment.

 

(j)            Dispute
Resolution.

 

(i)            Except
as provided below, any dispute arising out of or relating to this Agreement or the breach, termination or validity hereof shall
be finally settled by binding arbitration conducted expeditiously in accordance with the J.A.M.S./Endispute Comprehensive Arbitration
Rules and Procedures. The arbitration shall be governed by the United States Arbitration Act, 9 U.S.C. §§1-16, and
judgment upon the award rendered by the arbitrators may be entered by any court having jurisdiction thereof. The place of arbitration
shall be New York, New York.

 

(ii)           The
parties covenant and agree that the arbitration shall commence within 60 days of the date on which a written demand for arbitration
is filed by any party hereto. In connection with the arbitration proceeding, the arbitrator shall have the power to order the production
of documents by each party and any third-party witnesses. In addition, each party may take up to three depositions as of right,
and the arbitrator may in his or her discretion allow additional depositions upon good cause shown by the moving party. However,
the arbitrator shall not have the power to order the answering of interrogatories or the response to requests for admission. In
connection with any arbitration, each party shall provide to the other, no later than seven Business Days before the date of the
arbitration, the identity of all persons that may testify at the arbitration and a copy of all documents that may be introduced
at the arbitration or considered or used by a party’s witness or expert. The arbitrator’s decision and award shall
be made and delivered within six months of the selection of the arbitrator. The arbitrator’s decision shall set forth a reasoned
basis for any award of damages or finding of liability. The arbitrator shall not have power to award damages in excess of actual
compensatory damages and shall not multiply actual damages or award punitive damages or any other damages that are specifically
excluded under this Agreement, and each party hereby irrevocably waives any claim to such damages.

 

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(iii)          The
parties covenant and agree that they will participate in the arbitration in good faith. This Section 14(j) applies
equally to requests for temporary, preliminary or permanent injunctive relief, except that in the case of temporary or preliminary
injunctive relief any party may proceed in court without prior arbitration for the limited purpose of avoiding immediate and irreparable
harm.

 

(iv)          Each
of the parties hereto (x) hereby irrevocably submits to the jurisdiction of any United States District Court of competent
jurisdiction for the purpose of enforcing the award or decision in any such proceeding and (y) hereby waives, and agrees not
to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject
personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution (except
as protected by applicable law), that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the
suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court,
and hereby waives and agrees not to seek any review by any court of any other jurisdiction which may be called upon to grant an
enforcement of the judgment of any such court. Each of the parties hereto hereby consents to service of process by registered mail
at the address to which notices are to be given. Each of the parties hereto agrees that its, his or her submission to jurisdiction
and its, his or her consent to service of process by mail is made for the express benefit of the other parties hereto. Final judgment
against any party hereto in any such action, suit or proceeding may be enforced in other jurisdictions by suit, action or proceeding
on the judgment, or in any other manner provided by or pursuant to the laws of such other jurisdiction.

 

(k)            Counterparts.
For the convenience of the parties and to facilitate execution, this Agreement may be executed in two or more counterparts, each
of which shall be deemed an original, but all of which shall constitute one and the same document.

 

(l)             Entire
Agreement. The Plan, this Agreement and the Stockholders’ Agreement constitute the entire agreement with respect to the
subject matter hereof and thereof. In the event of any inconsistency between the Plan and this Agreement, the terms and conditions
of the Plan shall control.

 

[SIGNATURE PAGE FOLLOWS]

 

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The foregoing Agreement
is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned as of the date first above written.

 

	 	HAYWARD HOLDINGS, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Kevin P. Holleran

	 	Name:	Kevin P. Holleran
	 	Title:	President & CEO

 

[Signature Page to Non-Qualified Stock Option Agreement]

 

    

     

    

 

The foregoing Agreement
is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned as of the date first above written.

 

	 	OPTIONEE:
	 	 	 
	 	 	 
	 	/s/ Lawrence Silber
	 	Name: 	Lawrence Silber

 

	 	Address:
	 	 
	 	 
	 	 

 

[Signature Page to Non-Qualified Stock Option Agreement]Document

Exhibit 10.16

OWENS CORNING
2021 Corporate Incentive Plan
1. Introduction 
This Owens Corning 2021 Corporate Incentive Plan (the “Plan” or “Corporate Incentive Plan”) has been established for the purposes of advancing the interests of Owens Corning (the “Company”) and its stockholders by providing incentive opportunities to Executive Officers of the Company or other employees of the Company and its subsidiaries who are designated for participation in the Plan from time to time for certain performance periods (the “Participants”). This Plan is designed to deliver rewards based on Company and/or individual performance for applicable performance periods. Applicable Plan performance periods, metrics and goals will be established that (a) promote the attainment of the Company’s business objectives; (b) encourage and reward management teamwork across the entire Company; and (c) assist in the attraction and retention of Executive Officers vital to the Company’s long-term success.
2. Application
Set forth below are the Plan terms applicable to Participants and their award opportunities under the Plan. For purposes of this Plan, “Executive Officers” means the Company’s Section 16 “officers” as defined for purposes of Rule 16a-1(f) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), who report directly to the Chief Executive Officer.  
3. Eligibility
The Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of the Company will designate the Participants in the Plan for particular performance periods.  While all employees of the Company and its subsidiaries are eligible to be selected from time to time as Participants in award opportunities under the Plan (“Awards”), it is generally expected that the Committee will designate only the Executive Officers as Participants in the Plan, including for annual Awards under the Plan.  Designation as a Participant in this Plan in any year does not require the Committee to, or imply that the Committee will, select the same person as a Participant in the Plan in any subsequent year.
4. Administration
The Plan shall be administered by the Committee, or by another committee of the Board appointed by the Board consisting of not less than two (2) members of the Board (“Directors”) who are not employees of the Company or its subsidiaries. The Committee shall be comprised exclusively of Directors who satisfy the independence-related requirements for service on the Committee under the listing standards of the New York Stock Exchange (the “NYSE”).  Members of the Committee shall also qualify as “non-employee directors” within the meaning of Rule 16b-3 promulgated under the Exchange Act, and shall satisfy any other necessary standards of independence under the federal securities laws. To the extent permitted by law, the Committee may delegate its administrative authority with respect to the Corporate Incentive Plan and, in the event of any such delegation of authority, the term “Committee” as used in this Plan shall be deemed to refer to the Committee’s delegate(s) as well as to the Committee. The Committee shall, subject to the provisions herein: designate employees as Participants; establish and administer performance periods for Awards, establish any performance goals and the other Award terms applicable to each Participant and determine whether the goals have been attained; construe and interpret the Plan and any agreement or instrument entered into or utilized under the Plan; establish, amend, or waive rules and regulations for the Plan’s administration; and make all other determinations which may be necessary or advisable for the administration of the Plan and Awards granted under the Plan. Any determination by the Committee pursuant to the Plan shall be final, binding and conclusive on all employees and participants and anyone claiming under or through any of them.

5. Establishment of Performance Periods, Goals and Award Opportunities
The Committee shall establish the method for computing the amount of compensation which will be payable under the Plan to each Participant in the Plan for each performance period, including whether any performance goals established by the Committee for such period will need to be attained in whole or in part, and whether any portion of the Participant’s Award is based on the Committee’s subjective assessment of the Participant’s performance.  No provision herein is intended to preclude the Committee from exercising positive or negative discretion with respect to any Award hereunder, or from establishing a discretionary bonus plan for any performance period.
The Committee may utilize any performance criteria, either alone or in any combination, including on either a consolidated or business unit level, as the Committee may determine, including those selected from the following non-exhaustive example list: return on assets; return on net assets; return on equity; return on common equity; return on shareholder equity; return on invested capital; return on capital; total shareholder return; shareholder value added; share price; improvement in and/or attainment of expense levels; improvement in and/or attainment of cost levels; selling, general and administrative expense (“SG&A”); SG&A as a percent of revenue; costs as a percent of revenue; productivity objectives; quality metrics; capacity utilization; unit manufacturing costs; sales; net sales; gross profit margin; operating margin; cash margin; net income margin; earnings per share; earnings from operations; segment earnings from operations; earnings; earnings before taxes; earnings before interest and taxes (“EBIT”); earnings before interest, taxes, depreciation and amortization (“EBITDA”); revenue measures; number of units sold; number of units installed; revenue per employee; market share; market position; working capital measures; inventory; accounts receivable; accounts payable; cash conversion cycle; cash flow; cash generation; net cash generation; proceeds from asset sales; free cash flow; investable cash flow; capital expenditures; capital structure measures; cash balance; debt levels; equity levels; economic value added models; technology milestones; commercialization milestones; customer metrics; customer satisfaction; consumable burn rate; installed base; repeat customer orders; acquisitions; divestitures; employee metrics; employee engagement; employee retention; employee attrition; workforce diversity or safety. The applicable performance criteria shall have any reasonable definitions that the Committee may specify, and may include or exclude any or all of the following items, among others, as the Committee may determine: extraordinary, unusual or non-recurring items; effects of accounting changes; effects of currency fluctuations; effects of financing activities (e.g., effect on earnings per share of issuance of convertible debt securities); expenses for restructuring or productivity initiatives; other non-operating items; spending for acquisitions; effects of divestitures; and other extraordinary items. Any applicable performance criterion or combination of such criteria may apply to a Participant’s Award in its entirety or to any designated portion or portions of the Award, as the Committee may determine.
6. Maximum Award
The maximum dollar amount that may be paid to any Participant under the Plan for any year is equal to $5 million.
7. Service Requirement 
Awards based on the attainment of the performance goals established by the Committee and/or awards based on the Committee’s subjective assessment of participant performance shall also, unless otherwise determined by the Committee, be contingent on continued employment by the Company, its subsidiaries and affiliates during the performance or assessment period (collectively “performance period”) until the time of payout. Exceptions to these rules shall apply as determined by the Committee, including in the event of termination of employment by reason of death or Disability, or in the event of a Change in Control of the Company (as such terms are defined in the Company’s then-effective equity compensation plan document (“Stock Plan”)), during such performance period, in which case the following provisions shall apply (unless otherwise determined by the Committee):
 (a)  In the event of termination of employment by reason of death or Disability during a performance period, an Award shall be payable under this Plan to the Participant or the Participant’s estate for such performance period, which payout shall be adjusted, pro-rata, for the period of time during the performance period the Participant actually worked;
(b)  In the event of a Change in Control during a performance period and prior to any termination of a Participant’s employment, an Award shall be paid under the Plan at the higher of the Participant’s (i) target Award 

(as determined by the Committee), or (ii) projected performance for the performance period, determined by the Committee at the time the Change in Control occurs;
(c)  In the event of termination of a Participant’s employment by reason of Retirement (as defined in the Stock Plan) during a performance period, an Award may but need not (as the Committee may determine) be payable under this Plan to the Participant, which payout shall be adjusted, pro-rata, for the period of time during the performance period the Participant actually worked; and
(d)  A Participant whose employment terminates prior to the end of a performance period for any reason not excepted above shall not be entitled to any Award payout under the Plan for that performance period.
Any earned Award will be paid in a single lump sum in cash between January 1 and March 15 of the year following the year in which the applicable performance period ends.  The Company shall have the right to withhold an amount sufficient to satisfy any applicable federal, state, local or foreign withholding tax requirements imposed with respect to the payments under this Plan. The Plan and the Awards granted under the Plan are intended to be either exempt from, or compliant with, Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). This Plan and all Awards granted under the Plan shall be interpreted in a manner consistent with these intentions. Notwithstanding anything herein or regarding an Award to the contrary, in the case of any Participant who is a “specified employee” determined pursuant to procedures adopted by the Company in compliance with Section 409A of the Code as of the date of his or her “separation from service” (as defined under Section 409A of the Code), any Award that is subject to Section 409A of the Code that would otherwise be payable during the six-month period immediately following the Participant’s separation from service will instead be paid on the earlier of the first business day of the seventh month after the Participant’s separation from service or the Participant’s death. Notwithstanding the foregoing, the tax treatment of the benefits provided under the Plan is not warranted or guaranteed, and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Participant on account of non-compliance with Section 409A of the Code.
8. Amendment or Termination
The Committee may amend, modify or terminate this Plan at any time, provided that no such action shall materially adversely affect the rights of a Participant with respect to an Award under the Plan without the consent of the affected Participant, except to the extent any such amendment, modification, termination is made to cause the Plan to comply with applicable law (including Section 409A of the Code), stock market or exchange rules and regulations or accounting or tax rules and regulations. Unless otherwise determined by the Committee, each Participant shall be eligible to receive the incentive compensation to which the Participant would have been otherwise entitled but for such termination or modification, pro-rata for the period of the applicable performance period prior to the termination or modification.
9. Interpretation and Construction
No provision of the Plan, nor the selection of any eligible employee to participate in the Plan, shall constitute an employment agreement or affect the duration of any Participant’s employment, which shall remain “employment at will” unless an employment agreement between the Company and the Participant provides otherwise. Both the Participant and the Company shall remain free to terminate employment at any time to the same extent as if the Plan had not been adopted.  Nothing in the Plan prevents any Participant or other employee from providing, without prior notice to the Company, information to governmental authorities regarding possible legal violations or otherwise testifying or participating in any investigation or proceeding by any governmental authorities regarding possible legal violations.
10. Claw-Back
Awards granted under the Plan are subject to forfeiture, recovery by the Company or other action pursuant to any clawback or recoupment policy which the Company may adopt and maintain from time to time, including without limitation any such policy which the Company may be required to adopt under the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law.

11. Use of Electronic Media and Written Communications
All Plan notices and all Participant or beneficiary notices, designations, elections, consents or waivers must be in writing (which may include an electronic communication) and made in a form the Plan permits. Any person entitled to notice under the Plan may waive the notice or shorten the notice period unless such actions are contrary to applicable law. The Plan, using any electronic medium, may give or receive any Plan notice, communicate any Plan policy, conduct any written Plan communication, satisfy any Plan filing or other compliance requirement and conduct any other Plan transaction to the extent permissible under applicable law. A Participant may use any electronic medium to provide any beneficiary designation, election, notice, consent or waiver under the Plan, to the extent permissible under applicable law. Any reference in this Plan to a “form,” a “notice,” an “election,” a “consent,” a “waiver,” a “designation,” a “policy” or to any other Plan-related communication includes an electronic version thereof as permitted under applicable law.
11. Governing Law
The terms of this Plan shall be governed by the laws of the State of Ohio, without reference to the conflicts of laws principles of that state.

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