Document:

MPM Holdings LLC 2014 ICP

Exhibit 10.46

Momentive Performance Materials Holdings LLC

2014 INCENTIVE COMPENSATION PLAN (the “Plan”)

Purpose of the Plan

The Plan is sponsored by Momentive Performance Materials Holdings LLC (“Parent” or “Momentive”) to reward associates of Momentive Specialty Chemicals Inc. (MSC) and Momentive Performance Materials Inc. (MPM) and their subsidiaries for delivering increased value by profitably growing the business and controlling costs. The Plan is designed to link rewards with critical financial metrics for the purposes of promoting actions which are the most beneficial to the company's short-term and long-term value creation.

Plan Year

1 January 2014 - 31 December 2014

Eligibility for Participation

Participation is based on each individual associate's scope of responsibility and contribution within the organization, as well as the market prevalence for incentive in the country where they are employed. Each participant is assigned to participate at either the corporate, division or sector, business unit, regional or commercial plan level.

Plan Performance Measures

The Plan targets are based on three performance criteria: EBITDA, EH&S and Cash Flow.

EBITDA (sometimes also referred to as Segment EBITDA): Earnings before Interest, Taxes, Depreciation and Amortization, adjusted to exclude certain non-cash, certain other income and expenses and discontinued operations.

The achievement of EBITDA targets is the critical measure on which the investment community and future shareholders will evaluate Momentive's performance in 2014. As a result, the participants should be focused and incentivized to manage the business to achieve targets in EBITDA.

Segment EBITDA will be measured for the Parent (“Momentive EBITDA”), for each of the Epoxy, Phenolic and Coating Resins and Forest Products Divisions of MSC and the Silicones & Quartz Division of MPM (each a “Division”) and for specified MSC and MPM Business Units/Regions.

Associates participating at the corporate, Division, Sector or Business Unit plan level have a total of 60 percent of their incentive target based on the achievement of the EBITDA targets.  Associates participating at the Commercial plan level have either 10 percent or 20 percent of their incentive target based on the achievement of the EBITDA targets.

EH&S: Measures the environmental, health and safety measure referred to as 1) SIF, or Severe Incident Factor. SIF will be measured for the Parent, for each Division and for specified Business Units/Regions, and 2) ERI, or Environmental Reportable Incidents.  Five percent of each participant's incentive target will be based on the achievement of the applicable SIF goal and 5 percent of each participant’s incentive target will be based on the achievement of the applicable ERI goal.

Cash Flow: Represents the amount of cash generated by business operations. Cash flow is defined as Segment EBITDA, net trading capital improvement and/or usage, capital spending and interest paid along with other operating cash flow items such as income taxes paid and pension contributions. The purpose of this component is to focus on cost control and cost reduction actions to preserve an adequate amount of liquidity to fund operations and capital expenditures, service debt and ultimately sustain the business through difficult economic cycles. Cash Flow will be measured for the Parent and for each Division at the end of the Plan Year, and may exclude certain unusual, non-recurring items at the discretion of the Compensation Committee of the Board of Managers. Associates participating at the corporate, Division, Sector or Business Unit plan level have a total of 30 percent of their incentive target based on the achievement of the applicable Parent or Division Cash Flow target.  Associates participating at the Commercial plan level have either 20 percent or 30 percent of their incentive target based on the achievement.

Supplementary Commercial Measure

MSC associates participating at the Commercial plan level are eligible for an additional sales incentive measure.

In addition to EBITDA, EH&S & Cash Flow, MSC Commercial plans contain: MOM

MOM (Margin over Material): Refers to Sales less Raw Materials & Distribution Costs.  

MSC associates participating at the Commercial plan level have 50 percent of their incentive target based on MOM achievement.
 
 Target Incentive

Each eligible participant will have a target incentive opportunity expressed as a percent of his or her base salary. Targets and plan assignment levels are determined by the associate's, country/region of employment, and the scope of his or her role and contributions within the organization.

Plan Structure

The following tables depict the structure described above.
	
						
	2014 Global Momentive ICP - MPM

	MPM
	Momentive EBITDA
	Division EBITDA
	Sector EBITDA
	EH&S
	Cash Flow

	GLOBAL & Functional Momentive Resources
	30%
	10% - EPCD
10% - FPD
10% - SQD
	0%
	10% CORP
	15% - CORP
5% - EPCD
5% - FPD
5% - SQD

	DIVISION & Ops Resources
	10%
	50%
	0%
	10% Div
	30% Div

	BU Leaders & Sector Resources
	0%
	20%
	40%
	10% Div
	30% Div

	BU TEAM Resources
	0%
	10%
	50%
	10% Div
	30% Div

	
						
	2014 Global Momentive ICP - MSC

	MSC
	Momentive EBITDA
	Division EBITDA
	BU EBITDA
	EH&S
	Cash Flow

	GLOBAL & Functional Momentive Resources
	30%
	10% - EPCD
10% - FPD
10% - SQD
	0%
	10% CORP
	15% - CORP
5% - EPCD
5% - FPD
5% - SQD

	DIVISION Resources
	10%
	50%
	0%
	10% Div
	30% Div

	BU Leaders / Team Resources
	0%
	10%
	50%
	10% Div - FPD
10% BU - EPCD
	30% Div

	
							
	2014 Global Momentive ICP - MSC Commercial

	MSC
	Momentive EBITDA
	Division EBITDA
	BU EBITDA
	EH&S
	Cash Flow
	Sales Incentive Target

	EPCD
	0%
	0%
	10%
	10%
	30%
	50% - Regional BU MOM

	FPD
	0%
	0%
	20%
	10%
	20%
	50% - Product Line MOM

Calculation of Incentive Payments

The EBITDA measure will have a range of minimum, lower- middle, target, upper-middle and maximum targets for determining incentive award payout as approved by the Compensation Committee.  Incentive payout will range from 30 percent of target to a maximum of either 175 percent or 200 percent of the target incentive award depending on the participant’s position in the organization.  Each of the performance targets is measured independently such that a payout for achieving one is not dependent upon the achievement of the others, including the achievement of the EBITDA target.

For actual performance between the minimum, lower middle, target, upper middle and maximum targets, a straight line calculation will be made, rounded to the nearest 1/10th percent.  There is no additional payment made for performance above the maximum.  The final financial award will be determined when the 2014 audited financial performance results are available.

Basis for Award Payouts

Financial Results: Incentive payments will be based on audited and approved financial results. No incentive payment will be made until formal results have been approved by the Momentive Audit and Compensation Committees of its Board of Managers.

Limitations: All incentive payments must be self-funded from funds generated at the corporate, divisional, or business unit / regional level.  The Compensation Committee of the Board of Managers may elect to modify the calculation of the annual targets based on acquisitions, divestitures or other unusual, non-recurring events or transactions that occur during the calendar year.  Momentive has the right to amend or terminate this Plan at any time.

Employment Requirement: Associates must be employed in an incentive-eligible position for at least three consecutive full months during the Plan Year and must be actively employed by MSC or MPM on the final day of the Plan Year and on the incentive payment date, in order to receive an incentive payment.  Plan participants are also eligible to receive an incentive payment if they are employed on the final day of the Plan Year, but prior to the incentive payment date their employment is: (i) involuntarily terminated without cause, (ii) terminated due to the participant’s death or disability, or (iii) terminated due to retirement with the participant having reached age 60 and completed at least three years of service prior to retirement.

Plan Assignment Levels: Any change in a participant’s plan assignment level that is not related to a job transfer, must be approved by an appropriate division or functional Vice President and the Vice President of Total Rewards.

Payments:  Incentive payments are subject to applicable taxes and garnishment/wage orders.

Proration of Payments:  Proration of payments will be made on a whole-month basis.  Associate changes on or before the 15th of any month will be considered to have a full month's service for that month.  Associate changes after the 15th of any month will be considered to have started on the 1st of the next month.  A participant's incentive payment will be prorated for any of the following conditions:

		
	a. 
	New Hires: Awards to participants who commenced employment during the Plan Year will be prorated. Employment must commence on or before October 1, 2014 to be eligible to participate in the Plan. Rehires will be treated as new hires.

		
	b. 
	Salary: Awards will be calculated on the participant's base salary as of July 2014. Awards to participants whose base rate of pay changes after July 2014 will be prorated.

		
	c. 
	Job Changes or Transfers: Awards to participants changing jobs or transferring between Divisions/Business Units/Regions which result in a change to a different ICP target or plan incentive assignment during the Plan Year will be prorated.

		
	d. 
	Leaves of Absence/Disability: For approved leaves of absence that exceed 12 cumulative weeks, the amount of time not worked beyond the 12 weeks will be excluded for the Plan Year and the associate will receive a prorated incentive.

Timing of Payments: Typically, financial results are announced in March following the end of the Plan Year and any earned incentive payments are made in April.  In no event shall payments be made prior to the final audited year-end financial results are available and the subsequent Incentive Compensation Plan payout approval by the Compensation Committee of the Board of Managers.

The Plan remains at the total discretion of the Parent. Momentive retains the right to amend or adapt the design and rules of the Plan. Local laws will prevail where necessary.

*         *         *Jack Boss Offer Letter Agreement

Exhibit 10.47

March 14, 2014

Jack Boss 
20876 High Ridge Drive
Kildeer, IL 60047
 
Dear Jack:

I am very pleased to confirm our offer of employment for the position of Executive Vice President, Strategic Projects (the “Position”), Momentive Performance Materials Holdings LLC (“Company” or “Momentive”).  This Position is based in Albany, New York and will report directly to me.  Consistent with certain changes in corporate structure that we have discussed and to assure uninterrupted satisfaction of the financial obligations associated with the Position, the Position will be temporarily aligned with Momentive Performance Materials Holdings Employee Corporation, which will be a wholly owned subsidiary of the Company.  As an employee of Momentive Performance Materials Holdings Employee Corporation, your first assignment will be to lead the Silicones and Quartz businesses as Division President, Momentive Performance Materials Inc. 

Attached is a summary of the terms of the offer and the benefits available to you. This offer of employment is contingent upon meeting the following requirements:

		
	1.
	Your execution and delivery of the enclosed Non-Disclosure, Fair Competition and Inventions Agreement.

2.    Successful completion of a background investigation.
3.    Successful completion of a drug screen within 24 hours of acceptance of this offer.
4.    Reference verification.

Please acknowledge acceptance of this offer by completing the offer acceptance section at the end of the attached term sheet. This offer letter contains the final terms and conditions of your employment and you acknowledge that you are not relying on any other terms or conditions.  We also ask that you kindly complete and return (i) the Non-Disclosure, Fair Competition and Inventions Agreement, (ii) the enclosed Consent to Request Consumer Report form and (iii) the Momentive Background Data Questionnaire. This offer of employment is in effect until March 15, 2014. 

On your first day of employment, please bring with you documents that establish your identity and authorization to work in the U.S. in compliance with Form I-9 required by the Federal government.  A list of acceptable documents is enclosed.  A representative from the site will contact you with further details on any other requirements prior to your first day.

If you have any questions or there is anything requiring clarification, please do not hesitate to give me a call at (614) 225-4171.  Jack, we look forward to your joining Momentive and believe you will play a key role in building long term value toward our future success.

Sincerely,

Craig O. Morrison
CEO & President 
Momentive Performance Materials Holdings LLC
COM/ss

MOMENTIVE PERFORMANCE MATERIALS HOLDINGS LLC 
FOR:  Jack Boss

		
	Position:
	Executive Vice President, Strategic Projects, Momentive Performance Materials Holdings Employee Corporation, a wholly owned subsidiary of Momentive Performance Materials Holdings LLC.

		
	Anticipated Start Date:
	March 31, 2014

		
	Base Salary Year 1:
	$585,000, paid bi-weekly

		
	Annual Incentive Compensation:
	You will be eligible to participate in the 2014 Momentive annual incentive compensation program effective April 1, 2014 through December 31, 2014. The plan provides a target incentive award of 80% of your annualized base salary, based on achieving the specific goals identified by the business for the plan year.  You will be eligible for a full year payout in 2014 based on business results.  There will be no pro-ration of the 2014 Incentive Plan based on start date.  The terms of this plan and eligibility for participation are reviewed annually by the Compensation Committee of the Board.

		
	Sign-On Bonus:
	The Company shall provide you with a $1,300,000 sign-on bonus to be paid over a two year period, which payment is guaranteed notwithstanding any other events, including but not limited to:  (i) any changes in the corporate structure of Momentive Performance Materials Holdings Employee Corporation; and/or, (ii) the liquidation or reorganization of Momentive Performance Materials Inc.  The first payment of $500,000 will be paid in July 2014 and the second payment of $800,000 will be paid in April 2015.  The Company is required to make this payment to you as long as you have not resigned voluntarily or been terminated for “cause” as referenced below. 

		
	Severance:
	The Company shall provide you with Severance equal to eighteen (18) months of your Base Salary in the event that you are terminated by the Company “without cause”.  “With cause” is generally defined as violation of law, fraud, misappropriation, embezzlement, dishonesty, failure to follow lawful directions, negligence or willful misconduct.  Additional benefits related to Executive Outplacement and COBRA benefit continuation are outlined in the Severance Guidelines.

  
		
	Equity:
	In addition, in the event of a financial restructuring of Momentive Performance Materials Inc., at completion of such restructuring the Company shall use its reasonable best efforts to the full extent available under the relevant reorganization proceeding to cause you to be (or, if no restructuring occurs you shall be), nominated to the Board of Directors of Momentive Performance Materials Inc. for an equity grant with a targeted value of $8.0MM.  The exact form and number of units, shares, options and/or other awards will be specified at the time of the grant.  If you are not granted an equity award with the aforementioned target value, you will have the right to terminate your employment for “good reason” and to receive (i) any unpaid amount of the Sign-On Bonus listed above (ii) the full amount of Severance listed above and (iii) not be required to repay any relocation benefits already received.

		
	Relocation: 
	You will be covered under the Momentive Relocation Policy - Guaranteed Offer Program, which we will be happy to discuss with you either before or after your first day of employment.  The benefits offered to you under this program are outlined in the enclosed Relocation attachment.  Before initiating any action with your move, or if you have any questions, please contact Janet Berg at (614) 225-2019.

		
	Benefits:
	New employees are eligible for health benefits coverage from the first day of employment.  Enclosed is a copy of our Health and Welfare benefits guide and our Retirement benefits summary (see inside the front cover of the Health & Welfare benefits guide for enrollment instructions).  Please review the information so that you may make appropriate choices regarding your benefits.  To be eligible, you must elect benefits within your first 45 days of employment.  Once on board, if you have questions regarding your benefits or enrollment you may contact HR Connect at 1-877-888-7599.  The benefits are subject to change from time to time as determined by the Company.

		
	Vacation:
	You will be eligible for 4 weeks of vacation annually, which must be used by the end of each year.

		
	Company Agreements:
	Enclosed is the Non-Disclosure, Fair Competition and Inventions Agreement which is required to be read, understood and signed and returned by you.  Compliance with the Code of Business Ethics and the Antitrust Compliance Manual is a condition of employment. Compliance with additional Momentive policies will be required.

		
	Terms of Plans:
	Some of the above are highlights of various plans or programs, and all are subject to the terms of the actual plans and programs.

		
	"AT WILL" Statement:
	This offer of employment is for an "AT WILL" position, which means that either you or the Company can end this relationship at any time.

OFFER ACCEPTED:

__________________________
Signature: Jack Boss

___________________________

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