Document:

exhibit102gcpseverancele

Severance Plan for Leadership Team Officers   Summary Plan Description Effective February 4, 2016   GCP Applied Technologies Inc.    

 

Severance Plan for Leadership Team Officers Summary Plan Description  2016 i   Contents   Important Information  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .1   Eligibility and Coverage  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .1   Who Is Eligible .....................................................................1   When Coverage Applies .......................................................1   Notification Period ................................................................1   When Coverage Doesn’t Apply ............................................2   If You’re on a Leave of Absence ..........................................2   How the Plan Works  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .2   Amount of Severance and Total Cash Entitlement ...............2   How Benefits Will Be Paid ...................................................3   AICP Bonus Treatment .........................................................3   Deductions from Severance ..................................................3   Change in Control of GCP ....................................................3   Vesting ..................................................................................3   Reemployment by the Company ...........................................3   If You Should Die .................................................................4   When Severance Is Not Paid  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .4   Section 409A   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .4   Transferability  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .4   Claims for Benefits   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .4   What to Do ............................................................................4   If a Disputed Claim Is Denied ..............................................4   How Your Benefits Are Affected  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .5   You May Elect to Continue Medical, Dental, and        Vision Coverage ...............................................................5   Pension and Savings Plans ....................................................5   Medical, Dental, and Vision COBRA Coverage ..................5   Life, VGA, and BTA Insurance Coverage ............................5   Flexible Spending Accounts .................................................6   Short-Term Disability Coverage ...........................................6   Long-Term Disability Coverage ...........................................6   Benefit Plan Changes ............................................................6   Vacation Pay .........................................................................6   For More Information About Your Benefits .........................6   Other Information   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .6   Effective Date .......................................................................6   Plan Sponsor .........................................................................6   Plan Administration ..............................................................6   Plan Year ...............................................................................7   Plan Identification .................................................................7   The Plan’s Future, Amendment, and Termination ................7   Legal Service ........................................................................7   Plan Documents ....................................................................7   If You Can’t Receive Payments ............................................7   Cost .......................................................................................7   What Else You Should Know About the Plan ......................7   Your Rights  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .7   Receive Information About Your Plan and Benefits  ...........7   Prudent Actions by Plan Fiduciaries  ....................................8   Enforce Your Rights  ............................................................8   Assistance With Your Questions  .........................................8    

 

Severance Plan for Leadership Team Officers Summary Plan Description  2016 1   Important Information   Effective February 4, 2016, the CEO and all eligible   elected officers of GCP Applied Technologies Inc.   (“GCP”) who report to the CEO, will be covered under   the Severance Plan for Leadership Team Officers of   GCP Applied Technologies Inc. (the “Plan”).   The Plan will provide severance benefits to the CEO   and eligible elected corporate officers of GCP who re-   port to the CEO and who become eligible for benefits   as of their date of termination from the Company, as   described and summarized here.   Keep in mind that if you’re covered by the Plan, you   will not be covered under any other severance plan   maintained or sponsored by, or any severance agree-   ments with, the Company or its direct and indirect sub-   sidiaries (or any related entity).   Any agreements concerning severance benefits, writ-   ten or otherwise, between covered individuals and   the Company in effect before the effective date of the   Plan, shall be null and void as of the effective date   of the Plan. This means that, if you’re covered by   the Plan, you won’t be eligible for severance benefits   under any other prior agreement with the Company, as   of and after the effective date of the Plan (but subject   to the following paragraph).   Please note that the Plan does not cover terminations   related to a “Change in Control.” (See pages 2 and 3   for more information about the Plan and a Change in   Control.) However, eligible officers may be covered   under a different arrangement upon such a Change in   Control.   Note: References in this summary to the “Company”   refer to GCP Applied Technologies Inc. and its direct   and indirect subsidiaries.   Eligibility and Coverage   Who Is Eligible   You’re eligible for severance and other benefits under   the Plan if, at the time of your termination, you are a   corporate officer of GCP elected by its Board of Di-   rectors; you are identified by GCP as an “executive   officer” of the Company pursuant to Item 401(b) of   Securities and Exchange Commission Regulation S-K;   and you’re either the CEO or you report directly to the   CEO. If you don’t meet all of these requirements you   will not be eligible for severance or any other benefits   under the Plan.   When Coverage Applies   Coverage under the Plan will apply if you’re eligible   for the Plan and:   • your employment is terminated by the Company because   of a restructuring or downsizing, the elimination of your   position, or for any other reason except for the reasons   specified under “When Coverage Doesn’t Apply” (page   2), and   • you have agreed to and signed, and have not revoked, an   agreement acceptable to the Company under which:   – you release the Company and its directors, officers, and   employees (and other related parties) from any liability re-   lated to your termination from (and employment with) the   Company;   – you agree that you will not compete with the Company   for a period of 24 months after termination;   – you agree that you will not solicit the business of any   customer of the Company for a period of 24 months after   termination; and   – you agree that you will not induce or attempt to induce   any officer, director, or employee to leave the Company   for a period of 24 months after termination.    This agreement must be signed and become irrevocable   prior to the expiration of the 60-day period beginning on   your last date of employment.*   For example, if you’re an eligible officer who is ter-   minated by the Company, not for “Cause,” or any   other circumstance described under “When Coverage   Doesn’t Apply” (page 2), and you sign and do not   revoke the agreement described above, you’ll be elig-   ible for severance under the Plan.   *If this 60-day period extends into a new calendar year, any severance   subject to Section 409A will not be paid before the first day of that new   calendar year.   Notification Period   You’ll receive at least two-weeks notice (or pay in-   stead of notice) of your date of termination. Your “last   date of employment” is your final date of employment   that has been established by the Company.    

 

2  Severance Plan for Leadership Team Officers Summary Plan Description  2016   When Coverage Doesn’t Apply   Coverage under the Plan won’t apply to you, and you   won’t receive benefits under the Plan, if:   • You voluntarily terminate your employment with the   Company for any reason, without the permission of the   GCP Board of Directors.   • You’re terminated for misconduct, “cause,” or similar rea-   sons on or before your last date of employment. “Cause”   means an employee engaging in actions that are injurious   to the Company (monetarily or otherwise), or an employ-   ee’s conviction for any criminal violation involving dis-   honesty or fraud or any crime which constitutes a felony.   • The Company terminates your employment because of a   “Change in Control of GCP,” as specified on page 3.   • You’ve been employed by the Company for fewer than 90   days.   • You continue your employment with the Company in any   other capacity (and any location).   • You’re terminated because of your refusal or unwillingness   to perform the duties of your position or because of insubor-   dination, on or before your last date of employment.   • The Company terminates your employment because of the   Company’s sale or transfer of all or a portion of the stock   or assets of a business of the Company to another person   or entity (i.e., a divestment), if you become an employee   of that person or entity.   • You refuse to accept an offer to transfer to another posi-   tion at the Company for a base salary, and annual incentive   compensation target and long-term incentive compensation   awards, which aren’t materially less than your most recent   base salary and annual incentive compensation target and   long-term incentive compensation awards in your current   position; and provided the principal work location of the   new position is within a reasonable commuting distance of   where you live.   • Through your last date of employment you fail to:   – follow policies, rules, or procedures of the Company or   of your business unit, or   – adhere to any agreement between you and the Company.   • As of your last date of employment:   – you’re entitled to receive long-term disability (LTD)   payments under any plan or program sponsored by the   Company, or   – you become eligible to receive such LTD payments be-   cause of a disability that begins before your last date of   employment.    Your eligibility for LTD payments reflects the terms of the   Plan or program under which you’re covered.   • You’re covered by any other severance plan of the Com-   pany.   • You do not agree to and sign, or you have revoked, an   agreement acceptable to the Company as described under   “When Coverage Applies” (see page 1).   Important! No provision of the Plan should be con-   sidered to limit in any way the Company’s authority or   discretion to terminate any employee for any reason at   any time.   If You’re on a Leave of Absence   You won’t qualify for severance if you’re away from   work on a leave of absence (whether paid or unpaid).   However, you will qualify for severance if you’re   terminated by the Company when you’re on a leave   of absence, provided that none of the provisions de-   scribed under “When Coverage Doesn’t Apply” are   applicable.   How the Plan Works   Amount of Severance and Total Cash Entitlement   If eligible, you’ll receive severance equal to your total   cash entitlement, which is comprised of your annual   base salary plus an amount equal to your targeted an-   nual incentive compensation program bonus (AICP),   adjusted as follows:   Classification Your Total Cash Entitlement Equals   CEO two times your annual base salary as   of your last day of employment plus an   amount equal to two times your targeted   AICP for your last year of employment   Other elected   corporate officer who   reports directly to the   CEO   one times your annual base salary as   of your last day of employment plus an   amount equal to one times your targeted   AICP for your last year of employment   For example, if you’re an eligible elected officer who   reports directly to the CEO, and your annual base sal-   ary is $200,000, and your targeted AICP for the year   during which your employment is terminated is 50%   ($100,000), your total cash entitlement would equal   $300,000 ($200,000 + $100,000).   By annual base salary, we mean the regular annual   earnings as of your last date of employment that you   are entitled to receive from the Company before any   deductions are made, but excluding incentive bonuses   or compensation (for example, any payment related to   the Company’s “long-term incentive plans”), “one-off”   bonuses (for example, signing bonuses), any other spe-   cial or premium compensation (for example, payments   related to relocation or retention), commissions, any   amount related to Company-sponsored employee ben-   efit plans, whether or not this compensation or amount   is taxable as income.   See “AICP Bonus Treatment” on page 3 for details   on an AICP bonus for your last year of employment.    

 

Severance Plan for Leadership Team Officers Summary Plan Description  2016 3   How Benefits Will Be Paid   Your total cash entitlement will be paid to you in a   single, lump-sum within 60 days after your last date   of employment, except to the extent that the payment   is subject to Section 409A of the Internal Revenue   Code of 1986, as amended (“Section 409A”). A pay-   ment subject to Code Section 409A will not be made   before six months and one day after your last date of   employment if you are a “specified employee” as de-   fined in Section 409A(2)(B)(i).   Keep in mind that your coverage under certain Com-   pany benefit plans may continue for up to 24 months,   but only if you pay the required monthly contributions   directly to the Company (see page 5).   AICP Bonus Treatment   If you complete at least three months of employment   in the calendar year in which you qualify for sever-   ance under the Plan, you’ll receive a pro rata amount   of any bonus you are eligible to receive for that year   under the AICP. This pro rata amount will reflect your   completed months of service in that year. For example,   if you completed four months of service when your   employment ends in a calendar year, you’d receive 33   percent (4 ÷ 12) of the AICP bonus to which you’re   entitled for that year.   Please note, as with eligible employees who are still ac-   tively at work on the date bonuses are paid (normally,   in March after the calendar year to which the bonus re-   lates), the amount of your bonus will depend on the ex-   tent that the applicable business performance goals are   met (and will be subject to any applicable Compensa-   tion Committee approvals); and also on your individual   performance while still employed by the Company,   provided that the individual performance criteria won’t   be used to reduce, or increase, the amount of your   bonus entitlement by more than 25 percent, based on   the determination of your former management at the   Company. Finally, any pro rata bonus to which you   become entitled will be paid at the same time as bo-   nuses are paid to actively employed eligible employees   (again, normally in March after the calendar year to   which the bonus relates).   Deductions from Severance   The Company will deduct from the severance you re-   ceive:   • any federal, state, or local withholding or other taxes or   charges that it’s required to deduct by law, and   • any amounts you owe the Company (to the extent permit-   ted by Section 409A).   Change in Control of GCP   “Change in Control of GCP” means and shall be   deemed to have occurred if:   (i) GCP determines that any “person” (as such term is   used in Sections 13(d) and 14(d) of the Exchange Act),   other than a trustee or other fiduciary holding securities   under an employee benefit plan of GCP or a corpora-   tion owned, directly or indirectly, by the stockholders   of GCP in substantially the same proportions of their   ownership of stock of GCP, has become the “beneficial   owner” (as defined in Rule 13d-3 under the Exchange   Act), directly or indirectly, of 20% or more of the out-   standing common stock of GCP;   (ii) Individuals who are Continuing Directors cease to con-   stitute a majority of any class of directors of the Board;   (iii) There occurs a reorganization, merger, consolidation or   other corporate transaction involving GCP (a “Corpo-   rate Transaction”), in each case, with respect to which   the stockholders of GCP immediately prior to such Cor-   porate Transaction do not, immediately after the Cor-   porate Transaction, own 50% or more of the combined   voting power of the corporation resulting from such   Corporate Transaction; or   (iv) Shareholders of GCP approve a complete liquidation or   dissolution of GCP.   Vesting   The benefits provided under the Plan aren’t “vested   benefits.” This means that your eligibility for these   benefits may be terminated at any time.   In addition, you should know that the Plan may be ter-   minated by the Company at any time and that the Com-   pany may change any feature of the Plan at any time.   Reemployment by the Company   If you’re reemployed by the Company after you’ve   received severance under the Plan, any future sever-   ance entitlement you receive from the Company will   be offset or reduced by the amount of severance you   previously received under the Plan.    

 

4  Severance Plan for Leadership Team Officers Summary Plan Description  2016   If You Should Die   If you should die before your last date of employment,   no severance will be paid under the Plan to a benefi-   ciary.   But if you should die on or after your last date of   employment, any unpaid amount of the severance to   which you were entitled will be paid in a lump sum    either to your spouse or your estate (if you weren’t   married on the date of your death).   When Severance Is Not Paid   Benefits under the Plan may not be made (or may be   discontinued) if:   • you don’t qualify for benefits under the terms of the Plan,   or   • the Plan administrator determines you have engaged in   “inappropriate conduct” before or after your last date of   employment. Inappropriate conduct means any action   that violates any policy, rule, or procedure of the Com-   pany or your business unit, or violates any agreement   between you and the Company, or is otherwise detrimental   to the Company.   Section 409A   Your severance is intended to be either exempt from   Section 409A or in compliance with Section 409A,   and any ambiguities in the Plan shall be so interpreted.   Your severance may not be subject to Section 409A to   the extent it (together with any other severance or sepa-   ration pay otherwise subject to Section 409A) does not   equal or exceed two times the lesser of (i) your annual-   ized compensation based on your rate of pay for the   calendar year prior to the year of your termination of   employment, or (ii) the annual qualified retirement plan   contribution limit ($265,000 for 2016).    Transferability   The right to receive benefits under the Plan may not be   transferred, alienated, assigned, or pledged.   Claims for Benefits   What to Do   No action by you is required to file a claim for ben-   efits. The Company will notify you in writing if you’re   eligible for benefits under the severance pay plan.   If you believe that you’re entitled to a benefit and   haven’t been notified that one is payable, or if you   disagree with the amount of the benefit that’s payable,   you may file a disputed claim with the Company.   The Plan administrator has full and exclusive authority   to interpret the applicable plan provisions and to de-   cide claims for benefits that are filed.   A decision on a disputed claim will be given to you as   soon as possible, but no later than 90 days after a claim   is filed, or 180 days in special cases. If a decision on a   disputed claim can’t be made within 90 days, you’ll be   notified in writing before the end of this 90-day period   of the special circumstances that require an extended   period of consideration of the disputed claim and the   approximate date the Plan administrator expects to   reach a decision on the disputed claim.   If a Disputed Claim Is Denied   If a disputed claim is denied, in whole or in part, you’ll   receive a written notice from the Company explaining   why and on which plan provisions the disputed claim   has been denied. An appeal must be made within 60   days after a denial by writing to the Company (contact   your benefits administrator for details). You also may   choose to name a representative to handle your appeal.   You’ll be told if any additional information is needed   to make a disputed claim acceptable. You may exam-   ine material related to your disputed claim. Copies   of any materials or records that support the disputed   claim should be sent with the appeal.   A decision on an appeal usually will be made within   60 days of when it’s received, or 120 days in special   cases. If a decision on an appeal can’t be made within   60 days, you’ll be notified in writing before the end of   this 60-day period of the special circumstances that re-   quire an extended period of consideration of the appeal.   The Company’s decision on an appeal is final. If you   have filed a claim for benefits which has been denied   on appeal by the Company and you believe the claim   has been improperly denied, in whole or in part, you   have certain rights. See “Your Rights” on page 7   for more information.    

 

Severance Plan for Leadership Team Officers Summary Plan Description  2016 5   How Your Benefits Are Affected   You May Elect to Continue Medical, Dental, and   Vision Coverage   If you’re eligible for severance under the Plan, cov-   erage for you and enrolled members of your family   under the Company’s medical, dental, and vision   plans may continue for up to 24 months after your last   date of employment, provided you make the required   monthly contributions directly to the Company.   In this case, your coverage under these benefit plans   will end on the earlier of:   • the end of the 24-month period following your last day of   employment, or   • the end of the month in which you fail to make the required   contribution for your coverage.   Important! For this purpose, the 24-month period will   be determined without regard to any six-month period   delay that may be required by Section 409A. In addi-   tion, the required monthly contributions must be made   during any period severance is delayed under Section   409A.   Medical, dental, and vision coverage may continue   until the end of the period described above. In addition,   medical, dental, and vision coverage for an enrolled   family member will end on the date your coverage   ends, the date a family member becomes ineligible, or   the date you stop contributions for family coverage,   whichever occurs first.   Pension and Savings Plans   If you’re a participant in a Company-sponsored pen-   sion or savings and investment plan:   • severance pay won’t count to determine benefits under a   pension or savings plan,   • severance pay can’t be contributed to the savings plan.   Medical, Dental, and Vision COBRA Coverage   You’ll be notified of your ability to elect contin-   ued medical, dental, and vision coverage from the   Company, as required by the COBRA continuation   requirements of federal law. The 24-month period dur-   ing which medical, dental, and vision coverage may   continue as described above won’t count against the   maximum period during which you may continue this   coverage under COBRA. That is, after your severance   ends, COBRA continuation may be elected for the   maximum period that applies.   In addition, when COBRA medical coverage for you   or an enrolled family member ends, you’ll be given   details on any conversion rights that apply (conversion   rights don’t apply to dental or vision coverage).   If a member of your family has COBRA coverage   under a Company plan as of your last date of employ-   ment, this coverage will continue for the remainder of   the period that applies, provided the required contribu-   tions continue.   Life, VGA, and BTA Insurance Coverage   Your basic life insurance coverage, any supplemental   or dependent life insurance you elected, any coverage   you elected for yourself and your family under the   Company’s voluntary group accident insurance plan   (VGA plan), and coverage under the Company’s busi-   ness travel accident insurance plan (BTA plan) will   end automatically as of your last date of employment.   If you choose, you may restore any life insurance   coverage that’s lost and not replaced for yourself or a   family member by converting to an individual policy   without providing proof that you’re healthy by apply-   ing during the 31-day period after this coverage ends   or is reduced. Contact the GCP Employee Service   Center at 1-844-279-7897 for details on converting life   insurance coverage.   You may not, however, convert to an individual policy   to continue coverage under the VGA plan or BTA   plan; no conversion rights apply to this coverage.    

 

6  Severance Plan for Leadership Team Officers Summary Plan Description  2016   Flexible Spending Accounts   If you’re contributing to a health care spending   account and/or dependent care spending account as   of your last date of employment, contributions to a   health care spending account and/or dependent care   spending account will end with your last eligible   paycheck and no contribution to those accounts will   be taken from your lump-sum severance payment. In   no event, however, may participation in these accounts   extend beyond the December 31 of the year in which   your last day of employment occurs. Contact the   GCP Employee Service Center at 1-844-279-7897 for   details.   Short-Term Disability Coverage   All short-term disability and salary continuation cover-   ages will end as of your last date of employment.   Long-Term Disability Coverage   If you’re a participant in a Company-sponsored long-   term disability income plan (LTD plan), your partici-   pation in the Plan will continue through your last date   of employment, provided you continue the required   contributions. Benefits under any Company-sponsored   LTD plan won’t be payable for disabilities occurring   after your last date of employment.   Benefit Plan Changes   The Company reserves the right to change, amend, or   end any benefit plan, including the Plan; and any such   change, amendment, or termination may also apply to   any former employee or officer receiving severance   (and beneficiaries, if applicable).   Vacation Pay   If you have not already taken the full vacation to   which you’re entitled for the calendar year in which   your employment is terminated and your last date of   employment is June 30 or later, you will receive a   lump-sum payment equal to your unused vacation.   If your last date of employment is June 29 or earlier,   you will receive a lump-sum payment based on one-   half of the total number of vacation days to which you   would otherwise have been entitled for the calendar   year in which your employment is terminated, less any   used vacation days. For example, if you are entitled to   10 vacation days for the calendar year, your last date   of employment is June 29 or earlier, and you have   used three vacation days, you would receive a lump-   sum payment for two vacation days (10 days x .5 = 5   days, less the 3 days used, leaving 2 days for the lump-   sum payment).   Your vacation payout, however, won’t include floating   holidays.   For More Information About Your Benefits   This booklet briefly summarizes some of the rules that   apply to the benefit plans mentioned on pages 5-6. It   doesn’t provide a full description of these rules. Please   refer to the summary plan descriptions of these plans   for more information.   Other Information   The following describes other information you should   know about the Plan and your rights.   Effective Date   The effective date of the Plan is February 4, 2016.   Plan Sponsor   The sponsor of the Plan is:   GCP Applied Technologies Inc.   62 Whittmore Avenue   Cambridge, MA 02140   Plan Administration   “Plan Administrator” shall mean the individual(s)    appointed by the Committee to administer the terms of   the Plan and if no individual is appointed by the Com-   mittee to serve as the Plan Administrator for the Plan,   the Plan Administrator shall be the Senior Vice Presi-   dent, Chief Human Resources Officer of the Company.   Notwithstanding the preceding sentence, in the event   that an individual, who is also the Plan Administra-   tor, claims entitlement to severance benefits under the   Plan, the Committee or its delegate shall act as the   Plan Administrator for purposes of administering the   terms of the Plan with respect to that individual. The   Plan Administrator may delegate all or any portion of   its authority under the Plan to any other person(s).     

 

Severance Plan for Leadership Team Officers Summary Plan Description  2016 7   You may contact the Plan administrator as follows:   Senior Vice President, Chief Human Resources        Officer   GCP Applied Technologies Inc.   62 Whittmore Avenue   Cambridge, MA 02140   (617) 876-1400              Severance benefits are paid by the Company from its   general assets. There are no funds set aside for such   benefits.   Plan Year   Records are kept on a plan-year basis. A plan year   starts on January 1st and ends on the following    December 31st.   Plan Identification   The official name of the Plan is the Severance Plan for   Leadership Team Officers of GCP Applied Tech-   nologies Inc . The Internal Revenue Service and De-   partment of Labor identify the Company by the number   65-0654331 and the Plan by the number 521. The Plan   is classified as a “welfare plan,” providing severance   benefits.   The Plan’s Future, Amendment, and Termination   The Company, by action of its Board of Directors or   the Investment and Benefits Committee, may change,   suspend, or end the Plan at any time.   Legal Service   The agent for service of legal process is the:   General Counsel   GCP Applied Technologies Inc.   62 Whittmore Avenue   Cambridge, MA 02140   Legal process may also be served on the Plan admin-   istrator.   Plan Documents   This booklet describes the Severance Plan for Leader-   ship Team Officers of GCP Applied Technologies Inc.   as of February 4, 2016. It’s written in everyday terms   and avoids technical terms wherever possible.   If You Can’t Receive Payments   If the Company determines that you aren’t able to re-   ceive payments—for example, if you’re physically or   mentally disabled—it may have payments made to the   person or institution responsible for you.   Cost   The Company pays the full cost of the Plan.      What Else You Should Know About the Plan   The Plan administrator has the discretionary author-   ity to determine eligibility for Plan benefits and to   otherwise interpret all of the terms of the Plan. The   decisions of the Plan administrator with regard to de-   termining eligibility and interpreting the terms of the   Plan are final and binding on all parties.   The Company cannot and does not guarantee the    period for which the Plan will remain in effect and the   levels or types of benefits available under the Plan.   There is no legal requirement that the Company pay   any severance pay, and the Company reserves the right   to determine whether or not any employee or officer   will receive severance pay.   Your Rights   As a participant in the Severance Plan for Leadership   Team Officers of GCP Applied Technologies Inc.,   you’re entitled to certain rights and protections under   the Employee Retirement Income Security Act of 1974   (ERISA). ERISA provides that all plan participants are   entitled to know the following information.   Receive Information About Your Plan and Benefits   You may examine, without charge, at the Plan admin-   istrator’s office (GCP’s Headquarters) and at other   specified locations, such as worksites, all documents   governing the Plan, including a copy of the latest an-   nual report (Form 5500 Series) filed by the Plan with   the U.S. Department of Labor and available at the   Public Disclosure Room of the Employee Benefits Se-   curity Administration.   You may obtain, upon written request to the Plan ad-   ministrator, copies of documents governing the opera-   tion of the Plan, including copies of the latest annual   report (Form 5500 Series) and updated summary plan   description. The administrator may make a reasonable   charge for the copies.   You will receive a summary of the Plan’s annual fi-   nancial report. The Plan administrator is required by   law to furnish each participant with a copy of this sum-   mary annual report.     

 

8  Severance Plan for Leadership Team Officers Summary Plan Description  2016   Prudent Actions by Plan Fiduciaries   In addition to creating rights for plan participants,   ERISA imposes duties upon the people who are respon-   sible for the operation of the employee benefit plan. The   people who operate your plan, called “fiduciaries” of the   Plan, have a duty to do so prudently and in the interest   of you and other plan participants and beneficiaries. No   one, including your employer or any other person, may   fire you or otherwise discriminate against you in any   way to prevent you from obtaining a welfare plan ben-   efit or exercising your rights under ERISA.   Enforce Your Rights   If your claim for a severance benefit is denied or ig-   nored, in whole or in part, you have a right to know   why this was done, to obtain copies of documents re-   lating to the decision without charge, and to appeal any   denial, all within certain time schedules.   Under ERISA, there are steps you can take to enforce   the above rights. For instance, if you request a copy   of plan documents or the latest annual report from the   Plan and do not receive them within 30 days, you may   file suit in a Federal court. In such a case, the court may   require the Plan administrator to provide the materi-   als and pay you up to $110 a day until you receive the   materials, unless the materials were not sent because of   reasons beyond the control of the administrator.   If you have a claim for benefits that is denied or ig-   nored, in whole or in part, you may file suit in a state   or Federal court. In addition, if you disagree with the   Plan’s decision or lack thereof concerning the qualified   status of a domestic relations order or a medical child   support order, you may file suit in Federal court.   If it should happen that plan fiduciaries misuse the Plan’s   money, or if you are discriminated against for asserting   your rights, you may seek assistance from the U.S. De-   partment of Labor, or you may file suit in a Federal court.   The court will decide who should pay court costs and   legal fees. If you are successful the court may order the   person you have sued to pay these costs and fees. If you   lose, the court may order you to pay these costs and fees,   for example, if it finds your claim is frivolous.   Assistance With Your Questions   If you have any questions about the Plan, you should   contact GCP’s Chief Human Resources Officer at 617-   876-1400.   If you have any questions about this statement or about   your rights under ERISA, or if you need assistance   in obtaining documents from the Plan administrator,   you should contact the nearest office of the Employee   Benefits Security Administration, U.S. Department of   Labor, listed in your telephone directory or the Divi-   sion of Technical Assistance and Inquiries, Employee   Benefits Security Administration, U.S. Department of   Labor, 200 Constitution Avenue N.W., Washington,   D.C. 20210.   You may also obtain certain publications about your   rights and responsibilities under ERISA by calling the   publications hotline of the Employee Benefits Security   Administration.    

 

GCP Applied Technologies Inc.   62 Whittmore Avenue   Cambridge, MA 02140   (617) 876-1400   © 2016 GCP Applied Technologies Inc.Exhibit

Exhibit 10.3

GCP APPLIED TECHNOLOGIES INC. 
EXECUTIVE SALARY PROTECTION PLAN

AS ADOPTED BY
GCP APPLIED TECHNOLOGIES INC.
EFFECTIVE FEBRUARY 4, 2016

Exhibit 10.3

GCP APPLIED TECHNOLOGIES INC.
EXECUTIVE SALARY PROTECTION PLAN

INTRODUCTION

Effective February 4, 2016, GCP Applied Technologies Inc., (“GCP"), adopted the GCP Applied Technologies Inc. Executive Salary Protection Plan (the "Plan") for the purpose of providing salary continuation benefits in the event of the death or disability of an Eligible Executive (as described in the Plan) of GCP or its subsidiaries.

Exhibit 10.3

GCP APPLIED TECHNOLOGIES INC.
EXECUTIVE SALARY PROTECTION PLAN

§1.    Purpose of the Plan 

To induce the employment or continued employment of Key Employees and to enable the Company to compete with other corporations offering benefits in obtaining and retaining the services of competent executives, in order that the interests of the Company may be advanced.

§2.    Definitions

Unless otherwise required by the context, the following terms when used in this Plan shall have the meanings set forth in this section.

(a)    "Board of Directors": The Board of Directors of the Company.
		
	(b)
	"Committee": The Committee designated to administer the ESP Plan pursuant to the provision of §3.

		
	(c)
	"Company": GCP Applied Technologies Inc.

		
	(d)
	"Eligible Executive": A Key Employee who is eligible to participate in the ESP Plan in accordance with standards established by the Committee pursuant to §4(a).

		
	(e)
	"ESP Agreement": An Agreement entered into between the Company and an Eligible Executive pursuant to the provision of §4(b), providing for the continuance of the Eligible Executive's Recognized Compensation in the event of death or disability (as determined in accordance with §4(b)).

		
	(f)
	"ESP Plan" or "Plan": The Executive Salary Protection Plan of the Company herein set forth as the same may from time to time be amended.

		
	(g)
	"Key Employee": An employee of the Company or of a Subsidiary, including an officer or director who is an employee, who in the opinion of the Committee can contribute significantly to the growth and successful operations of the Company or a Subsidiary.

		
	(h)
	"Officers": The chairman, vice chairmen, chief executive officer, president,  treasurer and all executive vice presidents, senior vice presidents, and vice presidents of the Company.

		
	(i)
	"Recognized Compensation": The base monthly salary of the Eligible Executive as of the time of death or disability (as determined in accordance with §4(b)), or at such other time as shall be specified by the Committee; provided that the Committee may specify a fixed amount which may be higher or lower than the Eligible Executive's base monthly salary, and provided further that Recognized Compensation shall not exceed the highest base salary earned by the Eligible Executive during the five years preceding his death or disability (as determined in accordance with §4(b)) in any event.

		
	(j)
	"Subsidiary": A corporation or other form of business association of which shares (or other ownership interests) having 50% or more of the voting power are owned or controlled, directly or indirectly, by the Company.

§3.    Administration

(a)    The ESP Plan shall be administered by the Compensation Committee of the Board of Directors; provided that no member of the Committee shall be eligible to participate in the Plan while serving on the Committee.

Exhibit 10.3

(b)    The Committee may establish such rules and regulations, not inconsistent with the provisions of the ESP Plan, as it deems necessary to determine eligibility to participate in the Plan and for the proper administration of the Plan, and may amend or revoke any rule or regulation so established. The Committee may make such determinations and interpretations under or in connection with the Plan as it deems necessary or advisable. All such rules, regulations, determinations and interpretations shall be binding and conclusive upon the Company, its Subsidiaries, its shareholders and all employees, and upon their respective legal representatives, beneficiaries, successors and assigns and upon all other persons claiming under or through any of them.
(c)    [Intentionally Blank] 
(d)    Members of the Board of Directors and members of the Committee acting under the ESP Plan shall be fully protected in relying in good faith upon the advice of counsel and shall incur no liability except for gross negligence or willful misconduct in the performance of their duties.

§4.    Executive Salary Protection Agreements

(a)    Officers, and such other Key Employees as the Committee shall from time to time select, shall be eligible to participate in the ESP Plan. The Committee may require participants in the Plan to meet such standards of health as the Committee may from time to time establish, and, for this purpose, the Committee may require the employee to furnish information as to his physical condition and medical history and to submit to one or more physical examinations.
(b)    Upon a Key Employee's qualification as an Eligible Executive, the Company may enter into an agreement with such employee providing for the continued payment of his Recognized Compensation in the event he should die or become disabled  while an active employee of the Company or a Subsidiary. An Eligible Executive shall be determined to be disabled for purposes of the ESP Plan if and when he is determined to be disabled pursuant to the GCP Applied Technologies Inc. Long Term Disability Income Plan.
(i)    The agreement shall provide for the continuation, in the event of such employee's death (except as otherwise provided in subparagraph (iii) of this paragraph (b)), of his Recognized Compensation for such periods as the Committee may determine, provided that the amounts and the periods do not exceed the following:
(A)    100% of his Recognized Compensation for the first twelve (12) months following death;

Exhibit 10.3

(B)    50% of his Recognized Compensation for the next one-hundred-eight (108) months; provided that, in the event the employee dies at age 56 or thereafter, the payments referred to in this clause (B) shall not be continued for more than the following periods:

Maximum
Age at Death                Number of Monthly Payments

56                        96
57                        84
58                        72
59                        60
60                        54
61                        48
62                        48    
63                        48
64                        48
65                        42
66                        36
67                        30
68                        24
69                        18

(ii)    The agreement shall also provide for the continuation, in the event that an Eligible Executive shall become disabled, of his Recognized Compensation for such periods as the Committee may determine, provided that the amounts and the periods do not exceed the following:
(A)    100% of his Recognized Compensation for the first twelve (12) months after he has become disabled;
(B)    60% of his Recognized Compensation until he attains age 65, provided that in the event he becomes disabled at age 60 or thereafter, the payments referred to in this clause (B) shall not be continued for more than the following periods:

	
		
	Age at Date
of Disability
	Number of Months of Compensation
After 12 Months at 100%

	60
	48

	61
	36

	62
	30

	63
	24

	64
	18

	65
	12

	66
	9

	67
	6

	68
	3

	69
	0

The agreement shall further provide that no Eligible Executive shall be entitled to any continuation of Recognized Compensation in accordance with this subparagraph (ii) unless he is a participant in the GCP Applied Technologies Inc. Long Term Disability Income Plan, and that any amounts which may be payable to him in accordance with this subparagraph: 

Exhibit 10.3

(ii) shall be reduced by (x) the amount of any benefits payable to him under the GCP Applied Technologies Inc. Long Term Disability Income Plan and under any other disability payment arrangement between him and the Company or a Subsidiary, and any social security benefits payable to him, for any reason, or to any members of his family by reason of his disability, and (y) from and after the date he reaches age 62, any retirement benefits to which he may be entitled under any retirement plan of the Company or a Subsidiary.
    
(iii)    The agreement shall also provide for the continuation, in the event of an Eligible Executive's death while he is receiving payments provided for in subparagraph (ii) of this paragraph (b), of his Recognized Compensation for such periods as the Committee may determine, provided that the amounts and the periods do not exceed the amounts and periods specified in clauses (A) and (B) of subparagraph (i) of this paragraph (b).

(c)    The payments provided for in an ESP Agreement (other than payments provided for in accordance with subparagraph (ii) of paragraph (b) of this §4) shall be made to the beneficiary or beneficiaries (which may include one or more trusts or other entities) of the employee designated by him in accordance with the provisions of the ESP Agreement, or, if no such designation was effectively made, such payments shall be made to the employee's estate or other person or persons entitled to receive the same under the laws of testate or intestate succession, as the case may be.

(d)    All rights of an employee under an ESP Agreement shall terminate (i) thirty (30) days following the date upon which he retires or otherwise (except by reason of death or disability) ceases to be an active employee of the Company or a Subsidiary, or (ii) thirty (30) days following the date upon which written notice is given to him that the Committee has determined that he is no longer a Key Employee, whichever is earlier. A leave of absence, if approved by the Committee, shall not be deemed a cessation of employment or a loss of Key Employee status within the meaning of this paragraph.

(e)    Subject to compliance with the provisions of this Plan, each ESP Agreement shall contain such other terms and conditions and shall be in such form as the Committee may determine. Without limiting the foregoing, the ESP Agreement may, if so prescribed by the Committee, include a requirement that the employee contribute towards the cost of the benefits provided thereunder.

§5.    Insurance

Upon the determination of the Committee, the Company may procure one or more life insurance policies, including group policies, on the lives of Eligible Executives covered by the ESP Plan or may by other appropriate means provide for the payment of all or part of its obligations under the ESP Plan. All rights and incidents of ownership in any such insurance policies or in any other assets of the Company shall belong to the Company; and no employee (individually or as a member of the group), and no beneficiary or other person claiming under or through him, shall have any right, title or interest in or to any such insurance policies or assets.

§6.    General Provisions

(a)    Nothing in the ESP Plan nor in any ESP Agreement or instrument executed pursuant hereto shall confer upon any employee any right to continue in the employ of the Company or a Subsidiary, or shall affect the right of the Company or of a Subsidiary to terminate the employment of any employee with or without cause.

Exhibit 10.3

(b)    No ESP Agreement shall become effective unless and until all legal requirements applicable thereto have, in the opinion of counsel to the Company, been complied with.

(c)    The Company or a Subsidiary may make such provisions as it may deem appropriate for the withholding of any taxes which the Company or a Subsidiary determines it is required to withhold in connection with any ESP Agreement, or any contribution or payment thereunder.

(d)    Nothing in the ESP Plan is intended to be a substitute for, or shall preclude or limit the establishment or continuation of, any other plan, practice or arrangement for the payment of compensation or fringe benefits to employees generally, or to any class or group of employees, which the Company or any Subsidiary now has or may hereafter lawfully put into effect, including, without limitation, any retirement, pension, group insurance, stock purchase, stock bonus or stock option plan.

(e)    Any other provision of this Plan to the contrary notwithstanding, if an Eligible Executive becomes entitled to benefits under this Plan at the time that the Company determines such Executive is a “specified employee”, within the meaning of Code section 409A(a)(2)(B), then such Executive shall not be paid any benefits that would be regarded as compensation deferred under a “nonqualified deferred compensation plan”, within the meaning of that Code section, prior to a date that is 6 months after the Executive’s “separation from service” (within the meaning of Code section 409A(2)(A)(i)) from the Company or, if sooner, his date of death or the date the Executive becomes “disabled” (within the meaning of Code section 409A(2)(C)).  

(f)    The ESP Plan may be amended or terminated by the Board of Directors at any time provided, however, that no such amendment or termination shall adversely affect the rights of an employee under an ESP Agreement unless thirty (30) days' prior written notice thereof is given to the employee, and, provided further, that no such amendment or termination shall adversely affect the rights of a deceased employee under an ESP Agreement except as otherwise provided therein.

Exhibit 10.3

GCP APPLIED TECHNOLOGIES INC.

EXECUTIVE SALARY PROTECTION PLAN AGREEMENT

FOR

____________________________

Exhibit 10.3

GCP APPLIED TECHNOLOGIES INC.

EXECUTIVE SALARY PROTECTION PLAN AGREEMENT

This Agreement is made and entered into as of _____________, by and between        GCP Applied Technologies Inc. (hereinafter referred to as the "Company"), and ____________________ (hereinafter referred to as "Employee"). 

In consideration of the past and future services of the Employee, it is hereby mutually agreed as follows:

§1.    Payment of Death and Disability Benefits

(a)    If Employee dies or becomes disabled (as provided in subparagraph (ii) of this Section 1(a)) while an active employee of the Company or a Subsidiary (as defined in Section 2 of the ESP Plan), the Company or the Subsidiary by which Employee is employed (said employing entity being hereinafter referred to as the "Employer") will pay to Employee's Beneficiary (as defined herein), as a death benefit (in the event of death), or to Employee (in the event of disability), the percentages of his "Recognized Compensation" for the number of months determined as set forth below. For the purposes of this Agreement, Employee's Recognized Compensation shall be his base monthly salary as of the time of death or disability.

(i)    In the event of death (except as otherwise provided in subparagraph (iii) of this Section 1(a)), the following payments shall apply:

(A)    100% of Employee's Recognized Compensation for the first twelve (12) months following death;
    
(B)    50% of Employee's Recognized Compensation for the next one-hundred-eight (108) months; provided that, in the event Employee dies at age 56 or thereafter, the payments referred to in this clause (B) shall not be continued for more than the following number of months:

	
		
	Maximum
Age at Death
	Number of Monthly Payments

	56
	96

	57
	84

	58
	72

	59
	60

	60
	54

	61
	48

	62
	48

	63
	48

	64
	48

	65
	42

	66
	36

	67
	30

	68
	24

	69
	18

Exhibit 10.3

(ii)    In the event of disability (Employee shall be determined to be disabled for purposes of this Agreement if and when he is determined to be disabled pursuant to the GCP Applied Technologies Inc. Long Term Disability Income Plan ("LTD Plan")), the following payments shall apply:

(A)    100% of Employee's Recognized Compensation for the first twelve (12) months after he has become disabled;

(B)    60% of Employee's Recognized Compensation until he attains age 65, provided that in the event he becomes disabled at age 60 or thereafter, the payments referred to in this clause (B) shall not be continued for more than the following number of months:

	
		
	Age at Date
of Disability
	Number of Months of Compensation
after 12 Months at 100%

	60
	48

	61
	36

	62
	30

	63
	24

	64
	18

	65
	12

	66
	9

	67
	6

	68
	3

	69
	0

and provided further that Employee shall not be entitled to any continuation of Recognized Compensation in accordance with this subparagraph (ii) unless he is a participant in the LTD Plan, and any amounts which may be payable to him in accordance with this subparagraph (ii) shall be reduced by (x) the amount of any benefits payable to him under the LTD Plan and under any other disability payment arrangement between him and the Company or a Subsidiary, and any social security benefits payable to him, for any reason, or to any members of his family by reason of his disability, and (y) from and after the date he reaches age 62, any retirement benefits to which he may be entitled under any retirement plan of the Company or a Subsidiary.

(iii)    In the event of Employee's death while he is receiving payments provided for in subparagraph (ii) of this Section 1(a), the payments provided for in subparagraph (i) of this Section 1(a) shall apply.

(b)    As used herein, the term "Beneficiary" of Employee shall mean the person or persons (which may include, without limitation, the Employee's estate or one or more trusts or other entities) designated by Employee in a "Designation of Beneficiary" filed with the Company. Such "Designation of Beneficiary" shall be in such form as the Committee (as defined in Section 2 of the ESP Plan) may from time to time prescribe or accept. The Employee may at any time change any such designation of Beneficiary by filing a new form with the Company. If Employee has not made any such designation, or if any such designation shall not be effective, "Beneficiary" shall mean Employee's estate or other person or persons entitled to receive the payments herein provided for under the laws of testate or intestate succession, as the case may be. In the event the Employer has any doubt as to the proper person or persons entitled to receive payments due hereunder, the Employer shall have the right to withhold such payments until the matter is decided by a court of competent jurisdiction.

Exhibit 10.3

§2.    Termination

(a)    All rights of Employee hereunder shall terminate (i) thirty (30) days following the date upon which he retires or otherwise (except by reason of death or disability) ceases to be an active employee of the Company or a Subsidiary or (ii) thirty (30) days following the date upon which written notice is given to him that the Committee has determined that he is no longer a Key Employee (as defined in Section 2 of the ESP Plan), whichever is earlier. A leave of absence, if approved by the Committee, shall not be deemed a cessation of employment or a loss of Key Employee status within the meaning of this paragraph.

(b)    Subject to the provisions of Section 6(e) of the ESP Plan, this Agreement shall terminate or be deemed amended if the ESP Plan is terminated or amended, as the case may be.

(c)    In the event that the Company shall, pursuant to Section 5 of the ESP Plan, at any time procure any life insurance policy on the life of Employee (or that Grace Connecticut procured any such life insurance policy prior to the effective date of this Agreement), the Company may terminate this agreement and the Company's obligations hereunder if the issuer of such insurance policy shall cancel such policy (or the coverage extended to Employee's life) by reason of a misrepresentation or omission made by Employee prior to the date of such policy relating to his age, physical condition or medical history.

(d)    Employee may terminate this Agreement at any time upon thirty (30) days' written notice to the Company.

§3.    General

(a)    All rights and incidents of ownership in any life insurance policies that the Company may procure (or that were procured by Grace Connecticut prior to the effective date of this Agreement) on the life of Employee pursuant to Section 5 of the ESP Plan shall belong to the Company or to Grace Connecticut, as the case may be; and neither Employee, nor any Beneficiary or other person claiming under or through him, shall have any right, title or interest in or to any such insurance policies or other assets of the Company.

(b)    Subject to Section 6(c) of the ESP Plan, Employee shall not be obligated to contribute towards the cost of the benefits herein provided.

(c)    This Agreement is issued pursuant to the ESP Plan which is incorporated herein by reference. Each term defined in the ESP Plan shall have the same meaning herein as therein, unless the context otherwise requires. This Agreement is subject to the terms and conditions of the ESP Plan and shall be construed to conform to such Plan.

(d)    Any notice required or permitted to be given under this Agreement shall be in writing and shall be deemed properly given if sent by registered or certified mail, addressed as follows:

(i)    Notices to Employee:

(ii)    Notices to the Company:
WILLIAM MCCALL
Chief Human Resources Officer
62 Whittmore Avenue
Cambridge, Massachusetts

Exhibit 10.3

Either party may, from time to time, change the address to which notices to it shall be mailed by giving notice of such new address in the manner provided herein.

Exhibit 10.3

IN WITNESS WHEREOF, Employee and the Company have executed this Agreement as of the date first above written.

                    

__________________________________

GCP Applied Technologies Inc.

__________________________________            
By:    William McCall
            Chief Human Resources Officer

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