Document:

Unassociated Document

Exhibit 10.5

 

QUALITY RESOURCE TECHNOLOGIES, INC.

CHARTER OF THE FINANCE COMMITTEE

 

1. Purpose.  Acting pursuant to Section 141 of the Delaware General Corporation Law and Article III of the Company’s Bylaws, the Board of Directors has established a Finance Committee for the purpose of overseeing all areas of corporate finance for the Company and its subsidiaries, including capital structure, equity and debt financings, capital expenditures, cash management, banking activities and relationships, investments, foreign exchange activities and share repurchase activities.

 

2. Membership.  The Committee will consist of a minimum of three members of the Board of Directors, the majority of whom shall meet the same independence and experience requirements of the Audit Committee of the Company and the applicable provisions of federal law and the rules and regulations promulgated thereunder and the applicable rules of The Nasdaq Stock Market, the New York Stock Exchange, or any other exchange where the shares of the Company may be listed or quoted for sale.  The members of the Committee are recommended by the Nominating and Corporate Governance Committee and are appointed by and serve at the discretion of the Board of Directors.

 

3. Responsibilities.  The Finance Committee shall be responsible for reviewing with Company management, and shall have the power and authority to approve on behalf of the Board of Directors, any and all strategies, plans, policies and actions related to corporate finance, including the following:

 

(a) Capital structure plans and strategies and specific equity or debt financings;

 

(b) Capital expenditure plans and strategies and specific capital projects;

 

(c) Strategic and financial investment plans and strategies and specific investments;

 

(d) Mergers, acquisitions and divestitures;

 

(e) Cash management plans and strategies and all activities relating to cash accounts and cash investments portfolio, including the establishment and maintenance of bank, investment and brokerage accounts; and

 

(f) Plans and strategies for managing foreign currency exchange exposure and other exposures to economic risks.

 

Notwithstanding the power and authority of the Committee to act on behalf of the Board of Directors with respect to such matters, the Committee, in its discretion, may submit any such matter, along with its recommendation with respect thereto, to the full Board of Directors for consideration and approval.

 

4. Authority.  Any action duly and validly taken by the Committee pursuant to the power and authority conferred under this Charter shall for all purposes constitute an action duly and validly taken by the Board of Directors and may be certified as such by the Secretary or other authorized officer of the Company.

 

5. Meetings and Reports.  The Committee shall hold regular meetings at least four times each year generally in conjunction with the regularly scheduled meetings of the Board of Directors, and such special meetings as the Chair of the Committee or the Chairman of the Board may direct.  The Committee shall maintain written minutes of its meetings, which will be filed with the minutes of the Board of Directors.  At each regularly scheduled meeting of the Board of Directors, the Chair of the Committee shall provide the Board of Directors with a report of the Committee’s activities and proceedings.Unassociated Document

Exhibit 10.6

 

QUALITY RESOURCE TECHNOLOGIES, INC.

CHARTER OF THE GOVERNANCE AND NOMINATING COMMITTEE

 

Purpose

 

The purpose of the Governance and Nominating Committee of the Board of Directors is to assist the Board in identifying qualified individuals to become Board members and determining the composition of the Board and its committees.

 

Membership And Procedures

 

Membership and Appointment.  The Committee shall consist of not less than three members of the Board, with the exact number being determined by the Board.  The members of the Committee shall be appointed and replaced from time to time by the Board.

 

Independence.  Each member shall meet the independence requirements of applicable provisions of the federal securities laws and the rules promulgated thereunder and the applicable rules of The Nasdaq Stock Market, the New York Stock Exchange, or any other exchange where the shares of the Company may be listed or quoted for sale.

 

Authority to Retain Advisers.  In the course of its duties, the Committee shall have sole authority, at the Company’s expense, to engage and terminate search firms, as the Committee deems advisable, to identify director candidates, including the sole authority to approve the search firm’s fees and other retention terms.

 

Evaluation.  The Committee shall annually review and reassess the adequacy of this Charter and recommend any proposed changes to the Board.

 

Duties And Responsibilities

 

The Committee shall:

 

1. Evaluate and make recommendations regarding the composition and size of the Board.

 

2. Determine the composition of committees of the Board, with consideration of the desires of individual Board members.

 

3. Monitor compliance with Board and Board committee membership criteria.

 

4. Recommend nominees to the full Board to fill vacancies on the Board.

 

5. Investigate suggestions for candidates for membership on the Board and shall recommend prospective directors, as required, to provide an appropriate balance of knowledge, experience and capability on the Board, including stockholder nominations for the Board.WebFilings | EDGAR view

 

         Exhibit 10.40
 
Momentive Performance Materials Holdings LLC 
2011 INCENTIVE COMPENSATION PLAN (the “Plan”)
 
 
Purpose of the Plan
 
The purpose of the Plan is to reward associates of Momentive Specialty Chemicals Inc. and Momentive Performance Materials Inc. and their subsidiaries (“Momentive”) 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 2011 - 31 December 2011
 
Eligibility
 
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. 
 
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 Momentive on the final day of the Plan Year and, unless involuntarily terminated without cause,  on  the incentive payment date, in order to receive an incentive payment.
 
Eligible compensation for incentive calculation is based on the participant's eligible base rate of pay as of April of the Plan Year.  The participant's incentive calculation will be prorated if a change in salary or incentive target occurs after April of the Plan Year.
 
 
Plan Performance Measures
 
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization and excluding restructuring and certain non-cash or non-recurring charges such as 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 Momentive's performance in 2011.  As a result, the participants should be focused and incentivized to manage the business to achieve growth in EBITDA.
 
Participants at the Global Momentive and Division level have 50% of their incentive target based on the achievement of the EBITDA targets.  Participants at the Business Unit/Region level have 60% of their incentive target based on the achievement of EBITDA targets.
 
EBITDA will be measured for Global Momentive, each Division and specified Business Unit/Region.
 
EHS:  Measures the Occupational Incidents Injury Rate (OIIR) and Lost Time Injuries
 
5% of the participant's incentive target will be based on the achievement of the OIIR goal.
5% of the participant's incentive target will be based on the achievement of the Lost Time Injury goal.
 
Each of these EHS goals are measured and paid independently of each other and must be achieved at 100% or better in order to be eligible to receive that portion of the incentive award. EHS will be measured for Global Momentive, each Division and specified Business Units/Regions.  Payment of each of the EHS 

 

 

measures is contingent upon the EBITDA results of the participant's primary area of responsibility (Global Momentive, Division or Business Unit/Region) meeting the minimum financial payout threshold. 
 
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 increase 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. 
 
30% of the participant's incentive target will be based on the achievement of Cash Flow targets.
 
Cash Flow will be separately calculated from EBITDA for payout. Even if the EBITDA target is not achieved, it is still possible to meet or exceed Cash Flow targets for partial payout.
 
Cash Flow will be measured for Global Momentive and the Divisions at the end of the Plan Year.
 
Synergies:  Represents cost savings achieved through the Momentive combination that have improved EBITDA.  These cost savings will come from a combination of raw material and logistic savings based on our combined purchasing leverage and reduction of administrative costs based on shared services. 
 
Participants at the Global Momentive and Division level have 10% of their incentive target  based on the achievement of Synergy targets.  Participants at the Business Unit/Region level do not have Synergy incentive targets.
 
Synergies will be separately calculated from EBITDA for payout.  Even if the EBITDA target is not achieved, it is still possible to meet or exceed Synergy targets for partial payout. 
 
Synergies will be measured for Global Momentive at the end of the Plan Year.
 
 
Target Incentive
 
Each eligible participant will have a target incentive opportunity expressed as a percent of their base salary.  Targets are determined by the associate's, country/region of employment, the scope of their role and contributions within the organization.
 
 
Plan 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/region level, a divisional level or at the Global Momentive level.  
 
 
 
 

 

 

	
							
	 
	Global Momentive EBITDA
	Division EBITDA
	Business Unit EBITDA
	EHS Goals
(Funds through EBITDA achievement)
	Cash Flow
(Funds Independently)
	Synergies       (Funds Independently)

	Global Momentive  Level
	50%
(Funds EHS Goals)
	 
	 
	10%
Global Measure
	30%
Global Measure
	10%              Global           Measure

	Division 
Level & Regional Leaders
	10%
	40%
(Funds EHS Goals)
	 
	10%
Division Measure
	30%
Division Measure
	 10%              Global           Measure

	Business Unit/Region
Level
	10%
	10%
	40%
(Funds EHS Goals)
	10%
Business Unit /Region Measure
	30%
Division Measure
	 

 
Calculation of Incentive Payments
 
The EBITDA measure will have the following relationship towards incentive award payout at Global Momentive level:
 
	
				
	2011 Plan
	Minimum
	Target
	Maximum

	EBITDA performance as % of Target
	90%
	100%
	110%

	Incentive Payout %
	50%
	100%
	175% or 200%

 
For actual performance between the Minimum, Target and Maximum points above, 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 2011 audited financial performance results are available.
 
Note:  If the maximum EBITDA, Cash Flow, Synergies and EHS performance targets are attained, the Plan will pay 175% or 200% of the Target Incentive Award depending on the participant's position in the organization.  
 
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 appropriate Momentive Audit and Compensation Committees. 
 
Limitations: All incentive payments must be self-funded from profits generated at the corporate, divisional, or business unit / regional level. The Compensation Committee of the Board of Managers may elect to modify the annual EBITDA targets based on acquisitions or divestitures that occur during the calendar year.  Momentive has the right to amend or terminate this Plan at any time.
 
Employment: 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 Momentive on the final day of the Plan Year and, unless involuntarily terminated without cause,  on  the incentive payment date, in order to receive an incentive payment.
 
Performance-Related Issues: Participants who are subject to a disciplinary review of performance, or receive a “Does Not Meet” performance rating are not eligible to receive an incentive award.
 
Incentive Payments: Payments are subject to applicable taxes and garnishment/wage orders, and if the associate participates in the Momentive Specialty Chemicals Retirement Savings Plan, all incentive payments are subject to deferral and to plan provisions.

 

 

 
Proration:  Awards are normally calculated on the participant's base salary as of April of the Plan Year.
 
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 and must start on or before October 1, 2011 to be eligible to receive any payout. Rehires will be treated as a new hire.

 
		
	b.
	Salary/Incentive Target Changes: Awards to participants whose base rate of pay and/or incentive plan changes after April of the Plan Year will be prorated.

 
		
	c.
	Transfers: Awards to participants transferring between Divisions/Business Units/Regions during the Plan Year will be prorated.

 
		
	d.
	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.

 
Note:  Employee changes on or before the 15th of any month will be considered to have a full month's service for that month.  Employee changes after the 15th of any month will be considered to have started on the 1st of the next month.
 
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 being formally announced and the subsequent Incentive Compensation Plan payout approval by the Compensation Committee of the Board of Managers. 
 
 
The Momentive Incentive Compensation Plan remains at the total discretion of the Company.  Momentive retains the right to amend or adapt the design and rules of the plan.  Local legislation will prevail where necessary.

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