Document:

exv10w16

Exhibit 10.16

Base Salaries for Named Executive Officers

The following are the annual base salaries for the named executive officers of Fauquier Bankshares,
Inc., effective January 1, 2010:

	 	 	 	 	 
	Randy K. Ferrell
	 	$	253,863	 
	Eric P. Graap
	 	$	170,500exv10w1

Exhibit 10.1

TENNECO INC. THREE YEAR

LONG TERM PERFORMANCE UNIT AWARD AGREEMENT

(2010-2012 Performance Period)

March [__], 2010

Dear Participant:

Pursuant to the provisions of the Tenneco Inc. (the “Company”) 2006 Long-Term Incentive
Plan (as the same has been and may be amended from time to time, the “Plan”), you were
granted an Award (the “Award”) of Performance Units (the “Units”), on March [ ___],
2010 as specified below:

	 	 	 
	Participant:

	 	[                                        ]
	 
	 	 
	Performance Period:

	 	January 1, 2010 to December 31, 2012
	 
	 	 
	Target Value of Award:

	 	$[                    ] (the “Total Target Value”)
	 
	 	 
	Earning of Award:

	 	50% based on Relative TSR performance
	 

	 	30% based on Cumulative EBITDA performance
	 

	 	20% based on Cumulative FCF performance

Capitalized terms used and not otherwise defined in this Award shall have the respective meanings
assigned to them under the Plan.

1. Relative TSR Performance.

     (a) Earning of Award. For purposes hereof, your “TSR Target Value” is 50% of
your Total Target Value. The extent to which you will earn your TSR Target Value is based on the
Company TSR Percentile Ranking for the Performance Period based on the following chart:

	 	 	 	 	 
	Company TSR Percentile Ranking	 	Percent of TSR Target Value Earned
	> 75th

	 	200% (maximum)

	50th

	 	100% (target)

	40th

	 	50% (threshold)

	<40th

	 	 	0	%

Interpolation shall be used to determine the Percent of TSR Target Value Earned in the event the
Company TSR Percentile Ranking does not fall directly on one of the ranks listed in the above
chart. The Company TSR Percentile Ranking will be determined as set forth in Section 1(c)
below.

     (b) Calculation of TSR.

	 	 	 	 	 	 	 	 	 
	 

	 	“TSR”
	 	=
	 	      Change in Stock Price + Dividends Paid     
	 	 
	 

	 	 	 	 	 	Beginning Stock Price         
                         	 	 

 

 

	 	(i)	 	Beginning Stock Price shall mean the average of the Closing
Prices for each of the twenty (20) trading days immediately prior to the first
day of the Performance Period;
	 
	 	(ii)	 	Ending Stock Price shall mean the average of Closing Prices for
each of the last twenty (20) trading days of the Performance Period;
	 
	 	(iii)	 	Change in Stock Price shall equal the Ending Stock Price minus
the Beginning Stock Price;
	 
	 	(iv)	 	Dividends Paid shall mean the total of all dividends paid on
one (1) share of stock during the Performance Period, provided that dividends
shall be treated as though they are reinvested;
	 
	 	(v)	 	Closing Price shall mean the last reported sale price on the
applicable stock exchange or market of one share of stock for a particular
trading day; and
	 
	 	(vi)	 	In all events, TSR shall be adjusted to give effect to any
stock dividends, stock splits, reverse stock splits and similar transactions.

     (c) Calculation of Company TSR Percentile Ranking.

(i) The Company TSR Percentile Ranking is computed by (A) computing the Company’s
TSR for the Performance Period and (b) computing the TSR for the Performance Period
of each company that was in the S&P 500 Index as of the end of the Performance
Period (the “S&P Group”), provided that if a company declares bankruptcy at
any time during the Performance Period, the company will be removed from the S&P
Group, and if a company does not have publicly reported stock prices for the whole
Performance Period, the company will be removed from the S&P Group. The Company
TSR Percentile Ranking is the percentage of TSRs of the S&P Group calculated that
are lower than the Company’s TSR (e.g., if the Company’s TSR is greater than 75% of
the TSRs of the members of the S&P Group, the Company TSR Percentile Ranking is the
75th percentile).

2. Cumulative EBITDA Performance.

     (a) Earning of Award. For purposes hereof, your “EBITDA Target Value” is 30%
of your Total Target Value. The extent to which you will earn your EBITDA Target Value is based on
the Cumulative EBITDA for the Performance Period against the Cumulative EBITDA Target established
by the Committee for the Performance Period based on the following chart:

	 	 	 	 	 
	Cumulative EBITDA as Percentage of	 	 
	Cumulative EBITDA Target	 	Percent of EBITDA Target Value Earned
	120%

	 	200% (maximum)

	100%

	 	100% (target)

	80%

	 	50% (threshold)

	<80%

	 	 	0	%

 

 

Interpolation shall be used to determine the Percent of EBITDA Target Value Earned in the event
Cumulative EBITDA as Percentage of Cumulative EBITDA Target does not fall directly on one of the
percentages listed in the above chart. . The Cumulative EBITDA will be determined as set forth in
Section 2(b) below.

     (b) Calculation of Cumulative EBITDA.

	 	(i)	 	The Company’s Cumulative EBITDA means the sum of the Company’s
EBITDA for each of the three fiscal years included in the Performance Period.
	 
	 	(ii)	 	EBITDA means the Company’s earnings before interest, taxes,
depreciation, amortization and noncontrolling interests, adjusted for (a) asset
write-downs, (b) litigation or claim judgments or settlements, (c) the effect
of changes in tax laws, accounting principles, or other laws or provisions
affecting reported results, (d) accruals for reorganization and restructuring
programs, (e) extraordinary nonrecurring items as described in Accounting
Principles Board Opinion No. 30 and/or in management’s discussion and analysis
of financial condition and results of operations appearing in the Company’s
annual report to stockholders for the applicable year, and (f) acquisitions or
divestitures.

3. Cumulative FCF Performance.

     (a) Earning of Award. For purposes hereof, your “FCF Target Value” is 20% of
your Total Target Value. The extent to which you will earn your FCF Target Value is based on the
achievement by the Company of Cumulative FCF for the Performance Period against the Cumulative FCF
Target established by the Committee for the Performance Period based on the following chart:

	 	 	 	 	 
	Cumulative FCF as Percentage of	 	 
	Cumulative FCF Target	 	Percent of FCF Target Value Earned
	120%

	 	200% (maximum)

	100%

	 	100% (target)

	80%

	 	50% (threshold)

	<80%

	 	 	0	%

Interpolation shall be used to determine the Percent of FCF Target Value Earned in the event
Cumulative FCF as Percentage of Cumulative FCF Target does not fall directly on one of the
percentages listed in the above chart. The Cumulative FCF will be determined as set forth in
Section 3(b) below.

     (b) Calculation of Cumulative FCF.

	 	(i)	 	The Company’s Cumulative FCF means the sum of the Company’s FCF
for each of the three fiscal years included in the Performance Period.
	 
	 	(ii)	 	FCF means operating cash flow less cash interest payments, net
cash tax payments and distributions to non-controlling interest partners,
excluding the impact of acquisitions and divestitures.

 

 

4. Form and Timing of Payments Under Award.

     (a) The payment of amounts earned as calculated pursuant to Sections 1, 2 and
3 of this Award shall be paid to you no later than two and one-half months after the end of
the Performance Period. Payment of such amounts shall be made subject to the following:

	 	(i)	 	You shall have no right with respect any payments or other
amounts in respect of this Award until such payments of amounts are actually
paid or otherwise delivered to you.
	 
	 	(ii)	 	If the Committee determines, in its sole discretion, that you
at any time have willfully engaged in any activity that the Committee
determines was or is harmful to the Company or any of its subsidiaries, you
will forfeit any unpaid Award.

     (b) Amounts earned as calculated pursuant to Sections 1, 2 and 3 of
this Award may be paid out to you in shares of Common Stock based on the Fair Market Value at the
time of payment. However, pursuant to Section 5.7 of the Plan, the Committee has elected to
settle this Award in cash rather than shares of Common Stock.

5. Committee Discretion to Amend Award. The Committee may amend or terminate this Award
at any time in its sole discretion to exercise downward discretion in the amount payable under this
Award if the Committee determines that the payout yielded or that would be yielded by this Award
for the Performance Period does not accurately reflect the Company’s performance for the
Performance Period because the payout is too great. Notwithstanding any other provision of
this Agreement or the Plan to the contrary, the Committee may amend the Plan or this Agreement, to
take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of
conforming the Plan or Agreement to any present or future law relating to plans of this or similar
nature (including, but not limited to, Section 409A of the Internal Revenue Code), and to the
administrative regulations and rulings promulgated thereunder.

6. Retirement, Death and Total Disability. Notwithstanding anything to the contrary
contained herein or in any written employment agreement you may have with the Company, if your
employment by the Company and its Subsidiaries terminates on or before the end of the Performance
Period (a) as a result of your death or Total Disability (as defined below), you will be entitled
to a payment equal to 100% of the Total Target Value assigned to you under this Award, which amount
shall be paid to you, in cash, within 60 days after the date of your death or termination for Total
Disability, and (b) as a result of your Retirement (as defined below), you will be entitled to a
payment equal to the payment that you would have earned under this Agreement had you continued to
be employed by the Company and its Subsidiaries through the end of the Performance Period
multiplied by a fraction, the numerator of which is your number of full months employment during
the Performance Period prior to your Retirement and the denominator of which is the number of full
months in the Performance Period, which amount shall be paid to you, in cash, at the time
determined under Section 4. For purposes hereof, the term “Retirement” means termination
of your employment with the Company and its Subsidiaries after the date on which you attain age 65
or the date on which you attain age 55 and complete 10 years of service with the Company and its
Subsidiaries, and the term “Total Disability” means your permanent and total disability as
determined under the rules and guidelines established by the Company in order to qualify for
long-term disability coverage under the Company’s long-term disability plan in effect at the time
of such determination.

 

 

7. Termination in Other Circumstances. Notwithstanding anything to the contrary contained
herein (subject, however, to any applicable provisions of any written employment agreement you may
have with
the Company and the provisions hereof related thereto), if your employment with Tenneco Inc. and
its Subsidiaries terminates on or before the end of the Performance Period other than as a result
of your Retirement, death or Total Disability, you will forfeit this Award, unless the Committee
determines otherwise.

8. Payment of Fair Market Value in Certain Cases. If you are entitled to receive payment
for the fair market value of this Award pursuant to Article 6 of the Plan, that fair market value
will be equal to the amount you would have received hereunder as if (1) your service had continued
through the end of the Performance Period and (2) you had earned 100% of your Total Target Value.

9. Withholding Taxes. This Award and any payments hereunder are subject to withholding of
all applicable taxes and this Award and any payments hereunder are conditioned on satisfaction of
all applicable withholding obligations. The Company shall be entitled to withhold from any payment
due hereunder (whether or not those amounts are then payable to you) an amount sufficient to
satisfy any federal, state, local or other withholding taxes with respect to this Award.

10. Miscellaneous. As a condition of this Award, you are required to execute the
acknowledgment at the bottom of the enclosed copy of this Award notice and return the acknowledged
copy of this Award notice to the Human Resources Department of Tenneco Inc. not later than [DATE],
[___]. By accepting this Award, you agree and acknowledge that you have received and read the copy
of the Plan and that you accept this Award subject to the terms and conditions of the Plan. This
Award is transferable only by will, the laws of descent and distribution, pursuant to a qualified
domestic relations order, or by designation of beneficiary in the event of death (enclosed). This
Award is subject to all the definitions, terms and conditions of the Plan, a copy of which is
enclosed. To the extent any provision of this Award conflicts with applicable law, the Committee
shall have the discretion to modify or amend this Award, or adopt additional terms and or
conditions, as may be deemed necessary or advisable in order to comply with the local, state,
federal or foreign laws and regulations of any jurisdiction. In the event of any discrepancy
between the provisions of the Plan and this or any other communication regarding the Plan, the
provisions of the Plan control. This Award shall be binding upon and inure to the benefit of the
Company and its successors and assigns, on the one hand, and you and your permitted transferees, on
the other hand. The Award does not constitute a contract of employment or continued service, and
the grant of the Award shall not give you the right to be retained in the employ or service of the
Company or any of its Subsidiaries, nor any right or claim to any benefit under the Plan or the
Award, unless such right or claim has specifically accrued under the terms of the Plan and the
Award.

11. Special 409A Provisions. Notwithstanding any other provision of this Agreement or the
Plan to the contrary, if any payment hereunder is subject to section 409A of the Code and if such
payment is to be paid on account of your separation from service (within the meaning of section
409A of the Code), if you are a specified employee (within the meaning of section 409A(a)(2)(B) of
the Code), and if any such payment is required to be made prior to the first day of the seventh
month following your separation from service, such payment shall be delayed until the first day of
the seventh month following your separation from service. To the extent that any payments or
benefits under this Award are subject to section 409A of the Code and are paid or provided on
account of your termination of employment, the determination as to whether your have had a
termination of employment (or separation from service) shall be made in accordance with section
409A of the Code and the guidance issued thereunder.

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