Document:

Hexion Specialty Chemical, Inc. 2008 Incentive Compensation Plan

 Exhibit 10.22 
 Hexion Specialty Chemicals, Inc. 
 2008 INCENTIVE COMPENSATION PLAN 
 Purpose of the Plan 
 The purpose of the Plan is to reward
associates for profitably growing the business. The Plan is designed to link rewards with critical financial metrics for the purposes of promoting leadership actions which are the most beneficial to the company’s short-term and long-term value
creation. 
 Plan year 
 1 January, 2008
– 31 December, 2008 
 Eligibility 
 Participation is based on each individual associate’s scope of responsibility and contribution within the organization. 
 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 Hexion Specialty Chemicals, Inc. or a subsidiary company on 31 December 2008. 
 Eligible compensation for incentive calculation is based on the participant’s base rate of pay as of 31 December, 2008. The participant’s incentive
calculation will be prorated if a change in salary or incentive target occurs after 1 April of the Plan year. 
 Plan Performance Measures

 Financial Measures: 
 The primary financial
metric will be: 
  

	 	•	 	 EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization and excluding restructuring (as approved by the Board), gains/losses from the sale of
businesses and integration expenses (same as ‘Segment’ EBITDA) 

 The achievement of EBITDA growth is the critical measure on
which the investment community and future shareholders will evaluate Hexion’s performance in 2008. As a result, the participants should be focused and incentivized to manage the business to achieve growth in EBITDA. 
 EBITDA will be measured for Global Hexion Specialty Chemicals and also at each Division and specified Business Unit level. 
 Individual Incentive Goals Measures: 
 Each incentive eligible
associate will also be measured on achievement of Individual Incentive Goals. Individual Incentive Goals are to be established at the beginning of the year as part of the IMPACT process. Individual Incentive Goals must be specific and measurable
(see IMPACT materials) and cannot be redundant to site/business unit/division/corporate EBITDA targets. At the conclusion of the year, the associate’s manager is responsible for the evaluation of the percent of Individual Incentive Goals
completed. A participant’s achievement of Individual Incentive Goals cannot exceed 100% 
 Payment of the Individual Incentive Goals measure is first
contingent upon the achievement of the participant’s direct reporting level of Financial Measures (Business Unit, Division or Hexion Global). 
  

 1 

 This measure must meet the minimum EBITDA payout threshold for Individual Incentive Goals to be paid. And in any case,
the Individual Incentive Goals payout will not be higher than the EBITDA performance percent payout for the division/business unit. For example: if a participant’s division payout is at 98%, then the payout for 100% achievement of Individual
Incentive Goals cannot exceed 98%. 
 Examples of acceptable Individual Incentive Goals are: 
  

	 	¡	 	 To reduce imperfect inventory by 15% 

  

	 	¡	 	 To train 100% of site associates on new OSHA standard by October 1 

 Examples of unacceptable Individual Incentive Goals are: 
  

	 	¡	 	 To reduce imperfect inventory 

  

	 	¡	 	 To hold safety training 

 Plan Incentive
Targets 
 Each eligible participant will have a target incentive opportunity expressed as a percent of their base salary. Targets are determined by
the associate’s pay Band and by the scope and contributions to the organization. 
 If the maximum EBITDA performance targets are attained and the
participant’s performance against their Individual Incentive Goals is evaluated to be at 100%, this Plan can generate an award maximum of 175% of the Target Incentive Award. 
 Plan Payout Structure 
 The structure of each participant’s incentive is determined by the
individual’s role in the organization and whether they report at a business unit level, a divisional level or at the corporate level. 
  

									
	 Reporting

relationship:
	  	 Global Hexion
 EBITDA
	  	 Division
 EBITDA
	  	 Business Unit
 EBITDA
	  	Individual
Incentive Goals
	Hexion	  	 70%
 (funds Individual
 Incentive Goals)
	  	 	  	 	  	30%
	Division	  	20%	  	 50%
 (funds Individual
 Incentive Goals)
	  	 	  	30%
	Business Unit	  	 	  	20%	  	 50%
 (funds Individual
 Incentive Goals)
	  	30%

 Calculation of Incentive Payments 
 Financial Measure: 
 EBITDA 
  

					
	 	 	Actual less Minimum Threshold	 	 
	EBITDA Payment Calculation:	 	Maximum Less Minimum Threshold	 	=     %

  

 2 

 The EBITDA measure will have the following relationship between financial performance and incentive award payout:

  

											
	  	  	 Minimum

 EBITDA
	  	 Lower

 Midpoint
	  	 Target

 EBITDA
	  	 Upper

 Midpoint
	  	 Maximum
 EBITDA

	 % of EBITDA
 Target
	  	95.6%	  	97.8%	  	100%	  	103.8%	  	107.6%
	 % of Financial
 Award
	  	50%	  	75%	  	100%	  	137.5%	  	175%

 For actual performance between the points above, a straight line calculation will be made. There is no additional
payment made for performance above the maximum. The final financial award will be determined when the 2008 audited financial performance results are available. 
 Individual Incentive Goals Measure: 
 At the end of the year, the participant and the participant’s manager will meet to discuss the
participants’ performance against their Individual Incentive Goals. The manager will use the participant’s feedback, as well as input from peers to determine the overall effectiveness of the participant’s performance. In addition,
leadership judgment will be applied to determine the degree to which the participant’s efforts and initiative contributed to the Company’s overall success. In the case where a goal is team based, the manager will also evaluate the
participant based on the relative individual contribution as to other participants on the team. 
 Basis for Award Payouts 
 Financial Results: Bonus payments will be based on audited and approved financial results. No bonus payment will be made until formal results have been approved by
Hexion’s corporate officers. 
 Payment against the achievement of the financial measures will be as follows: 
  

	 	a.	Payment of any financial element is contingent on its own merit. 

  

	 	b.	If there is more than one financial measure, payment against each of the measures will be independent of each other. 

 For example, if measure 1: “Business Unit” is met it will pay out regardless of 
 whether measure 2: “Division” is met. 
  

	 	c.	Payment on achievement of Individual Incentive Goals is contingent upon meeting the EBITDA financial measure for the participant’s direct reporting relationship.

 Limitations: All incentive payments must be self-funded from profits generated at the corporate, divisional, or business unit level.
The Compensation Committee of the Board of Directors may elect to modify the annual EBITDA targets based on acquisitions or divestitures that may occur during the calendar year. Hexion Specialty Chemicals has the right to amend or terminate this
plan at any time. 
 Employment: Participants must be actively employed by Hexion Specialty Chemicals, Inc. or a subsidiary company on
31 December, 2008 and must have been in an incentive eligible position for at least three full consecutive months during the financial year. 
 Performance Related Issues: Awards to participants who are subject to a disciplinary review of performance, or are on a performance improvement plan, need to be reviewed with the HR Divisional/Functional Leader to determine if the
associate is eligible for a partial award. 
  

 3 

 Incentive Payments: Payments are subject to applicable taxes and garnishment/wage orders, and if the associate
participates in the Hexion Specialty Chemical retirement plans, all incentive payments are subject to deferral and to plan provisions. 
 Pro-ration:
A participant’s incentive payment will be prorated for any of the following conditions: 
  

	 	a.	Base Salary and Incentive Group: Awards are normally calculated on the participant’s base salary as of 31 December of the Plan year. If an associate is promoted to a new
incentive group, before general merit increases are effective in April of the Plan year, there is no pro-ration for this promotion. The participant’s award will not be prorated based on their base salary for the first three months of the Plan
year. 

  

	 	b.	New Hires: Awards to participants who commenced employment during the Plan year will be pro-rated on the basis of full month’s service during the Plan year. Employees who
commence employment on or before the 15th of any month will be considered to have a full month’s service for that month but must be employed on or before October 1, 2008 to be eligible to receive any payout 

  

	 	c.	Re-hires: Awards to participants who terminated during the Plan year and are subsequently rehired during the Plan year will be eligible to receive incentive provided they have
worked at least three full consecutive months in the Plan year in an incentive eligible role. Any incentive payments will be prorated based on: 1 – their rate of pay during the full months they were employed prior to termination, and 2 –
their rate of pay at the end of the Plan year for each full month of active employment after their date of rehire. If the participant was not in an incentive eligible role at termination, no credit will be given for incentive payout for that period.

  

	 	 d.
	 Salary/Incentive Target Changes: Awards to participants whose base rate of pay and/or incentive group changes after
April 1st of the Plan year will be pro-rated on the basis of full month’s service at each job level during the year. (Job changes on or
before the 15th of any month will be considered as in respect of the full month. Changes that take effect after the 15th of the month will be counted as effective the 1st of the next month for incentive calculation purposes.)

  

	 	e.	Transfers: Awards to participants transferring between Divisions/Business Units/Sites during the Plan year will be pro-rated on the basis of full month’s service in each
Division/Business Unit/Site during the year. Business performance against each applicable measure will be based on the full year performance. The award will be funded based on the direct reporting relationship of the associate. (Transfers on or
before the 15th of any month will be considered as in respect of the full month. Transfers that take effect after the 15th of the month will be counted as effective the 1st of the next month for incentive calculation purposes.)

  

	 	f.	 Leaves of Absence/Disability: Approved leaves of absence for 12 weeks or less in the Plan year will not be excluded from the incentive payment, i.e. the associate
will be eligible to receive the full incentive payment. If an associate is absent or on a leave that exceeds 12 cumulative weeks, then any time not worked beyond the 12 weeks will be excluded for the Plan year and the associate will receive a
prorated incentive. 

  

 4 

 Timing of Payments: Typically, financial results are announced in March following the end of the Plan year and
incentive payouts are made in April. In no event shall payments be made prior to the final audited year end financials results of Hexion Specialty Chemicals, Inc. being formally announced and the subsequent Incentive Compensation Plan payout
approval by the Compensation Committee of the Board of Directors. No leader within the organization is to make prospective statements regarding the payment of Incentive Compensation until the Compensation Committee has given approval. 
 The Hexion Incentive Compensation Plan remains at the total discretion of the Company. Hexion retains the right to amend or adapt the design and rules of the plan.
Local legislation will prevail where necessary. 
  

 5Employment Agreement between the Company and Cornelis K. Verhaar

 Exhibit 10.27 
 Visiting address/Bezoekadres: 
 Koddeweg 67 
 3194 DH Hoogvliet Rotterdam 
 Tel: +31 (0)10 295 4144 
 Fax: +31 (0)10 295 4097 
 CONTRACT OF EMPLOYMENT FOR AN
INDEFINITE PERIOD OF TIME 
 The undersigned: 
 The
private company with limited liability Hexion Specialty Chemicals B.V. 
 having its principal place of business in Hoogvliet (Rotterdam), 
 hereinafter to be referred to as “employer”, 
 and 
 Cornelis Verhaar, residing in Amsterdam, 
 hereinafter to be referred to as
“employee”, 
 declare that they have agreed upon the following: 
  

	1.	Date of Commencement of Employment and Duration of the Contract of Employment 

  

	•	 	 Employee shall enter the service of the employer for an indefinite period of time commencing on May 15, 2006. 

  

	2.	Trial Period 

  

	•	 	 The employment shall commence with a trial period of two months. Either party can terminate the contract of employment with immediate effect during the trial
period, without any obligation to observe the conditions governing the notice of termination. 

  

	3.	Position 

  

	•	 	 Employee shall be engaged in the position as Executive Vice President and President, Epoxy and Coatings Division and shall have to report to the CEO. The duties to
be entrusted to the employee as well as the location where the latter shall have to perform them, shall be determined by employer and can be altered by employer. 

  

	•	 	 If the employer so deems necessary for economic and/or company organisation reasons, he shall be entitled to ask the employee or instruct him in reason, to take up
another position or to carry out other activities within the company for a while both in The Netherlands and abroad. All this shall be done maintaining employee’s salary and in proper consultation. 

  

	4.	Working Hours 

  

	•	 	 Employee’s weekly working hours shall amount to 40 hours, divided over 5 working days. This is 1,0 full-time equivalent (FTE). 

  

	5.	Salary 

  

	•	 	 At the beginning of the present agreement, the annual gross pension base salary of the employee shall amount to €325,000 on a full-time basis. One fourteenth
part of said pension base salary shall be paid out every month. 

 Visiting address/Bezoekadres: 
 Koddeweg 67 
 3194 DH Hoogvliet Rotterdam 
 Tel: +31 (0)10 295 4144 
 Fax: +31 (0)10 295 4097

  

	 	 
In accordance with the scheme applying at employer’s, employee shall receive at the end of the month of April of each and every year a holiday allowance
of one-fourteenth part of the pension base salary applying then. This allowance shall be determined in proportion to employee’s active service in the period that ends then (May 1st through April 30th) . 

 The employee shall equally receive at the end of the month of December of each and every year, an allowance of one-fourteenth part of the pension base
salary applying then, provided the employee has been in active service throughout the calendar year concerned. In the event of a shorter period of active service, the employee shall receive said allowance in proportion to the period of active
service. The legal minimum holiday allowance shall immediately be included in both payments referred to in the present article. 
  

	6.	Bonus 

  

	•	 	 Employee shall qualify for a bonus in conformity with the corporate Hexion Specialty Chemicals bonus scheme, provided employee’s individual performance and the
performance of the department in which employee works and the overall operating result allow for it, according the corporate Hexion Specialty Chemicals agreement. For 2006 bonus will be set on a target range from 60% of pension base salary with a
maximum payout of 200%. Employee will only qualify to receive bonus if and as far duties are applicable to and are being performed throughout the calendar year concerned, provided employee has been in active service throughout the calendar year
concerned. Exception will be the year 2006 since employee shall first enter the service of employer per May 15, 2006. 

  

	7.	Long Term Value Creation Reward Program 

  

	•	 	 Employee is eligible to participate in Hexion’s Specialty Chemicals Inc. Long Term Value Creation Reward Program. Parties agree that employee is a participant
with a target of 125% of pension base salary 2006. If, and as far payment will take place, in conformity with this Long Term Value Creation Reward Program, employee may choose between payment in cash, restricted shares and/or SARs payment in cash.
This program shall be awarded over a three years period, aimed for payment in 2009. 

  

	•	 	 Employer has the intention to offer employee a competitive employer conditions package within the industry branch. If employer will introduce a new Long Term Value
Creation Program in the year 2006 as a result of an IPO, Long Term Value Creation Program can be adjusted to a new program, taking into account a reasonable market evaluation. 

  

	8.	Expenses 

  

	•	 	 All normal travel and representation costs incurred by employee in the performance of his duties, shall be borne by employer, who shall reimburse said costs, if,
following their justification by employee, it appears that they were necessary in reason to perform said duties. The commuter distance must not be included in said costs. 

 The employee shall be held to produce proof of the costs incurred by employee. The employee shall require employer’s prior consent to that effect for
exceptional costs. 
  

	9.	Health Costs 

  

	•	 	 The employee can take out a group health insurance with IAK. 

 Visiting address/Bezoekadres: 
 Koddeweg 67 
 3194 DH Hoogvliet Rotterdam 
 Tel: +31 (0)10 295 4144 
 Fax: +31 (0)10 295 4097

  

	10.	Leased Car 

  

	•	 	 The employer shall make a company car available to employee within the framework of the latter’s duties. All conditions concerned are listed in the enclosed
lease contract. 

  

	11.	Home Office Allowance 

  

	•	 	 Employee shall receive an allowance within the framework of his duties in conformity with the enclosed scheme. 

  

	12.	Removal Allowance 

  

	•	 	 If the employee moves within one year from entering into the present contract of employment at the request of employer to a place of residence within a radius of 30
km from the company, employee shall receive a removal allowance equalling one monthly salary paid gross for net, as well as a refund of the transport and removal costs actually incurred, provided employee send employer an original invoice made out
to employee’s name. 

  

	13.	Holiday 

  

	•	 	 Employee shall be entitled to 29 days holiday and to 11 reduction of working hours days per calendar year, in conformity with the scheme set out in the personnel
manual. 

  

	•	 	 The days holiday / days off can be taken up in hours. The beginning and the end of the holiday shall be determined by employee following consultation with employer.
At the end of the employment, the employer can set off the excess days holiday / days off taken up by you as well as the excess holiday allowance received. 

  

	14.	Duties and Obligations 

  

	•	 	 Employee shall perform the duties following the instructions given by or on behalf of the employer. 

  

	•	 	 Employee shall not be allowed to have a direct or indirect interest in any company other than that of the employer, to carry out any other activities for any other
third party against payment or not or to hold a (salaried) position, unless the employer has given his consent to this effect in writing. 

  

	•	 	 The employee shall undertake to observe the employer’s safety instructions in the room concerned (in particular those relating to the use of safety gear,
wearing company clothing and the use of the access badge). 

  

	15.	Pension 

  

	•	 	 If employee meets the pension regulations requirements, employee can be included in the pension scheme in place at employer’s. The rules of the pension
regulations as laid down by the employer, shall apply to said participation and the payment of the premium. 

  

	16.	Secrecy; Documents 

  

	•	 	 Both during and upon expiry of the employment, the employee shall keep secret all oral and written information about the employer or any legal entity forming a part
of the group the employer belongs to, the information about their clients, relations, working methods and 

 Visiting address/Bezoekadres: 
 Koddeweg 67 
 3194 DH Hoogvliet Rotterdam 
 Tel: +31 (0)10 295 4144 
 Fax: +31 (0)10 295 4097

  

	 	 
company secrets, and employee shall not use said information for any other purpose than required in connection with the performance of his/her duties by
virtue of the present agreement. 

 The employee shall not be allowed to continue to retain possession in any way whatsoever
of documents, correspondence or copies thereof which employee retains possession of in connection with the performance of his/her duties for employer, any longer than required for the performance of his/her duties for employer. All documents or
records employee retains possession of in connection with the performance of his/her duties for the employer, shall remain the property of the employer and shall have to be returned to the employer if and the moment the latter so demands.

  

	17.	Inventions 

  

	•	 	 If, during the employment, the employee invents something, finds an improvement or makes a design, all this suited or not for patenting, registration or filing in
connection with: 

  

	•	 	 What is produced or could be produced within the framework of employer’s activities. 

  

	•	 	 A working method used or suited to be used within the framework of the employer’s activities, 

 The right to such an invention, improvement or design (or each and every advantage being the result thereof) shall be vested in the employer; the employee
shall provide the employer with all the information and instructions enabling the latter to make use of it, and the employee shall refrain from making any statement in this respect to any third party. The employee shall be under the obligation to do
all and everything at the employer’s expense the employer deems necessary to obtain a patent, registration or filing or any kind of protection for the invention, improvement or design in the name of the employer, the employee or the employee
and the employer jointly, all this at the discretion of the employer, in all countries to be indicated by the employer. If the employer decides not to make use of any invention, discovery, improvement or any design that the employer has become aware
of, the corresponding right (or each and every advantage being the result thereof) shall revert to the employee, who shall then be able to dispose thereof at his/her discretion and in his/her own favour and to obtain patents or such kind of
protection. 
  

	18.	Publications 

  

	•	 	 The employee shall refrain from publishing any information via books, magazines or in any other way possible as well as from attending any conferences or
participating in any TV or radio broadcasts and the like which relate in any way to the employer’s company in the broadest sense of the word, if no prior consent in writing to this effect has been obtained from the employer.

  

	19.	Non-Competition Clause / Relation Clause 

  

	•	 	 See enclosure 

  

	20.	Termination of the Contract 

  

	•	 	 Either party shall be authorised to prematurely cancel the contract of employment, 

 giving one month’s notice by the end of a calendar month on the part of the employee. 
  

	•	 	 The contract of employment shall have to be cancelled in writing. 

 Visiting address/Bezoekadres: 
 Koddeweg 67 
 3194 DH Hoogvliet Rotterdam 
 Tel: +31 (0)10 295 4144 
 Fax: +31 (0)10 295 4097

  

	•	 	 The cancellation shall, however, furthermore end by operation of law when the employee reaches the age of 65, subject to explicit further agreements between parties
to let the employment continue for a period after said date. 

  

	21.	Applicable Law 

  

	•	 	 Dutch law shall apply to the present agreement and the consequences thereof. 

  

	•	 	 Employer’s current personnel manual shall form a part of the present agreement. The employer shall be entitled to modify the personnel manual unilaterally and
to replace it with a new personnel manual. 

  

	22.	Final Stipulation 

  

	•	 	 The enclosures going with the present agreement, i.e. 

  

	 	•	 	 Home office policy; 

  

	 	•	 	 Car policy; 

  

	 	•	 	 Personeelshandboek (Personnel Manual); 

  

	 	•	 	 Gedragscode (Code of Conduct); 

  

	 	•	 	 Pensioenreglement (Pension Regulations); 

  

	 	•	 	 Centraal Beheer Achmea (Central Management Achmea) pension information folder ; 

  

	 	•	 	 Life Cycle agreement; 

  

	 	•	 	 Absenteeism due to illness protocol; 

  

	 	•	 	 Arbo Unie (Working Conditions Union) information folder; 

  

	 	•	 	 IAK information package; 

  

	 	•	 	 Petrol discount information 

 shall
form a part of the present contract of employment. 
  

	•	 	 The employer shall reserve the right to unilaterally modify aforementioned enclosures having due regard to the ‘Wet op de Ondernemingsraden (WOR)’ (Works
Councils Act). 

 Thus agreed upon, drawn up and signed in duplicate in Hoogvliet Rotterdam on April 20, 2006.

  

					
	On behalf of the employer	 		 	The employee
			
	  	 		 	  
	Ans Knape	 		 	Kees Verhaar
	VP HR

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