Document:

Exhibit

GCP APPLIED TECHNOLOGIES INC. 
EXECUTIVE ANNUAL INCENTIVE COMPENSATION PLAN
GCP Applied Technologies Inc., a Delaware corporation (the “Company”), hereby establishes and adopts the following Executive Annual Incentive Compensation Plan (the “Plan”) to provide incentive awards, including incentive awards that are intended to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code (as defined below) and the regulations and rulings promulgated thereunder.
1.PURPOSE OF THE PLAN
The purpose of the Plan is to promote the attainment of the Company’s performance goals by providing incentive compensation for certain designated key executives of the Company and its Subsidiaries.
2.    DEFINITIONS
2.1.    “Award” shall mean any amount granted to a Participant under the Plan.
2.2.    “Board” shall mean the Board of Directors of the Company.
2.3.    “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, any successor thereto and the regulations promulgated thereunder.
2.4.    “Committee” shall mean the Compensation Committee of the Board.  For purposes of satisfying the requirements of Section 162(m) of the Code, the Committee is intended to consist solely of two or more “outside directors” as such term is defined in Section 162(m) of the Code.
2.5.    “Participant” shall have the meaning set forth in Section 3.1.
2.6.    “Performance Criteria” shall mean one or more of the following:  basic or diluted earnings per share of Company common stock; Adjusted Earnings Per Share (as defined below); Company common stock price earnings ratio; total stockholder return; relative total stock return measured against a set peer group; sales (including total sales, net sales and gross sales) of the Company or one (or more) of its operating activities; revenue, operating income, net income of the Company or one (or more) of its operating activities (in each case, either before or after taxes); Company earnings and/or net income before interest and taxes (EBIT); Adjusted EBIT (as defined below); Adjusted EBIT Return On Invested Capital (as defined below); Company earnings and/or net income before interest, taxes, depreciation and amortization (EBITDA); Adjusted EBITDA (as defined below); operating or other expense of the Company or one (or more) of its operating activities; gross, operating or cash flow margin of the Company or one (or more) of its operating activities; Segment Gross Margin (as defined below); return on investment (determined with reference to one or more categories of income or cash flow and one or more categories of assets, capital or equity, including return on net assets, return on sales, return on equity and return on invested capital); total cash flow, net cash flow, or free cash flow, each as 

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provided by the Company or by one (or more) of its operating activities, investing activities, financing activities or any combination thereof; Adjusted Free Cash Flow (as defined below); economic profit; gross margins and costs; market or industry share; days on hand of inventory; days sales outstanding; days payables outstanding; working capital; or objectively determined measures for:  productivity increases, efficiency, new product releases, customer satisfaction, diversity, safety performance, or employee engagement, satisfaction or turnover.  For purposes of establishing any of the foregoing Performance Criteria, each of the following capitalized terms shall have the following meaning:
“Adjusted EBIT” shall mean net income adjusted for:  interest income and expense; income taxes restructuring and repositioning expenses and related asset impairments; pension costs other than service and interest costs, expected returns on plan assets, and amortization of prior service costs/credits; specified income and expense items related to divested businesses, product lines, and specified other investments; and gains and losses on sales of businesses, product lines and specified other investments.
“Adjusted EBITDA” shall mean Adjusted EBIT adjusted for depreciation and amortization.
“Adjusted Earnings Per Share” shall mean diluted earnings per share of Company common stock adjusted for restructuring expenses and asset impairments, pension costs (other than service and interest costs, expected returns on plan assets, and amortization of prior service costs/credits), specified income and expense items related to divested businesses, product lines, and specified other investments, gains and losses on sales of businesses, product lines and specified other investments, and certain discrete tax items.
“Adjusted EBIT Return On Invested Capital” shall mean Adjusted EBIT (on a trailing four quarters basis) divided by the sum of net working capital, properties and equipment and specified other assets and liabilities.
“Segment Gross Margin” shall mean gross margin adjusted for pension-related costs included in cost of goods sold.
“Adjusted Free Cash Flow” shall mean net cash provided by or used for operating activities minus capital expenditures, cash paid for restructuring and repositioning, accelerated payments under defined benefit pension arrangements, and expenditures for legacy items.
All items to be specified under the definitions listed above shall be so specified by the Committee at the same time the Performance Goals are established for a Performance Period.
2.7.    “Performance Goal” shall mean the level of performance established by the Committee as the performance standard for Performance Criteria.  Performance Goals may vary from Performance Period to Performance Period and from Participant to Participant and may be established on a stand-alone basis, in tandem or in the alternative.

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2.8.    “Performance Period” shall mean the Company’s fiscal year or a portion of such fiscal year that the Committee, in its sole discretion, may establish.
2.9.    “Subsidiary” shall mean a corporation, partnership, limited liability company or other form of business association of which shares of common stock or other ownership interests (i) having more than 50% of the voting power regularly entitled to vote for directors (or equivalent management rights) or (ii) regularly entitled to receive more than 50% of the dividends (or their equivalents) paid on the common stock (or other ownership interests), are owned, directly or indirectly, by the Company.  References to the “Company” herein shall be deemed to include references to Subsidiaries where appropriate.
3.    ELIGIBILITY AND ADMINISTRATION
3.1.    Eligibility.  The individuals eligible to participate in the Plan shall be the Company’s Chief Executive Officer and any other executive of the Company or a Subsidiary who is selected by the Committee to participate in the Plan (each, a “Participant”).
3.2.    Administration.
(a)    The Plan shall be administered by the Committee.  The Committee shall have full power and authority, subject to the provisions of the Plan and subject to such orders or resolutions not inconsistent with the provisions of the Plan as may from time to time be adopted by the Board, to:
(i)    select the Participants to whom Awards may from time to time be granted hereunder;
(ii)    determine the terms and conditions, not inconsistent with the provisions of the Plan, of each Award; 
(iii)    determine the time when Awards will be granted and paid and the Performance Period to which they relate;
(iv)    determine the Performance Goals for Awards for each Participant in respect of each Performance Period based on the Performance Criteria and certify whether the Performance Goals and other material terms of the Award were met prior to the payment of an Award and the calculation of the amount of the Award, if any, payable to each Participant in respect of each Performance Period;
(v)    interpret and administer the Plan and any instrument or agreement entered into in connection with the Plan;
(vi)    correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent that the Committee shall deem desirable to carry it into effect;

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(vii)    establish such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and
(viii)    make any other determination and take any other action that the Committee deems necessary or desirable for administration of the Plan.
(b)    Decisions of the Committee shall be final, conclusive and binding on all persons or entities, including the Company, any Subsidiary, any Participant and any person claiming any benefit or right under an Award or under the Plan.
(c)    To the extent not inconsistent with applicable law or the rules and regulations of the New York Stock Exchange (or such other principal securities market on which the Company’s securities are listed or qualified for trading), including the applicable provisions of Section 162(m) of the Code, the Committee may delegate to one or more officers of the Company or a committee of officers the authority to take actions on its behalf pursuant to the Plan.
4.    AWARDS
4.1.    Performance Period; Participant Designation; Performance Goals; Notification.
(a)    Not later than the earlier of (i) 90 days after the commencement of each Performance Period or (ii) the expiration of 25% of the Performance Period, and while the outcome of the Performance Goals is substantially uncertain, the Committee shall, in writing, designate:
(A)    one or more Performance Periods,
(B)    the Participants for each Performance Period, and
(C)    the Performance Goals for determining the Award for each Participant for each Performance Period, based on attainment of specified levels of one or any combination of the Performance Criteria.
Notwithstanding the foregoing, within such time period, the Committee may also provide for an adjustment to reflect (or for the exclusion of) extraordinary items, acquisitions, divestitures, asset impairment, capital expenditures, unusual or non-recurring items, cost and expenses related to restructuring and/or repositioning cost and expenditures related to legacy environmental matters, material tax law changes and/or assessments and the cumulative effect of tax or accounting changes.
(b)    Notwithstanding any other provision of this Plan, no exclusion or adjustment to a Performance Goal shall be made if the effect of such exclusion or adjustment would be to cause the Award to fail to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code, if the Award was intended to so qualify.

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(c)    Designation of any individual as a Participant for any Performance Period shall not require designation of such individual as a Participant in any other Performance Period, and designation of one individual as a Participant shall not require designation of any other individual as a Participant for such Performance Period or for any other Performance Period.
(d)    If a person becomes eligible to participate in the Plan after the Committee has made its initial designation of Participants for a Performance Period, such individual may become a Participant if so designated by the Committee; provided that the Award applicable to such individual shall be adjusted to the extent necessary to meet the “performance-based compensation” exception under Section 162(m) of the Code to the extent intended to so qualify.
(e)    The Performance Goals designated by the Committee may be expressed with respect to the Company’s performance or the performance of one or more Subsidiaries, divisions, business segments or business units of the Company, and may be expressed in terms of dollars, rates of growth, absolute levels or percentages or ratios expressing relationships between two or more of the Performance Criteria, period-to-period changes, relative to business plans or budgets, or relative to one or more other companies or one or more indices.  Performance Goals may be calculated for a year or a portion of a year.  Such Performance Goals shall otherwise comply with the requirements of the “performance-based compensation” exception under Section 162(m) of the Code for Awards intended to so qualify.
(f)    As soon as practicable after they have approved the items set forth in Section 4.1(a) above, the Committee will:
(i)    notify each individual who has been selected to participate in the Plan that he or she is a Participant for such Performance Period; and
(ii)    communicate in writing to each Participant the applicable Performance Criteria and Performance Goals for determining Awards for such Performance Period.
4.2.    Certification.  At such time as it shall determine appropriate following the conclusion of each Performance Period and prior to payment of any Award, the Committee shall certify, in writing, whether the Performance Goals and other material terms of the Award were met and the amount, if any, of the Award for each Participant for such Performance Period.
4.3.    Payment of Awards.
(a)    The amount of the Award actually paid to a Participant may, in the sole discretion of the Committee, be less than the amount otherwise payable to the Participant based on attainment of the Performance Goals for the Performance Period as determined in accordance with Section 4.1.  The Committee may not waive the achievement of the applicable Performance Goals for any award intended to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code, except in the case of the death or disability of the Participant or as described in Section 4.6 in the event of a “Change in Control of the Company” (as defined therein).  The Committee may establish factors to take into consideration 

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in implementing its discretion to reduce the amount of an Award, including, but not limited to, individual performance and/or one or more of the Performance Criteria.  In no event may the Committee increase the amount of the Award otherwise payable to the Participant based on attainment of the Performance Goals for the Performance Period.
(b)    The actual amount of the Award determined by the Committee for a Performance Period shall be paid in cash.  Payment to each Participant shall be made no later than the fifteenth day of the third month following the end of the fiscal year of the Company in which the applicable Performance Period ends, unless payment is deferred pursuant to a plan or arrangement satisfying the requirements of Section 409A of the Code (“Section 409A”).
4.4.    Changes in Employment.
(a)    If (i) a person becomes a Participant during a Performance Period as specified in Section 4.1, or (ii) a Participant (A) dies, retires (within the meaning of a Company retirement plan) or becomes disabled or (B) is terminated by the Company due to a reduction in force, job elimination, divestment of the Participant’s employing unit or other termination not for “cause” (as determined by the Committee), in each case, prior to the end of a Performance Period (provided the Participant has more than three months of service during such Performance Period), then the Participant may be deemed to have participated for the entire Performance Period and the Award, payable to such a Participant may be proportionately reduced based on the period of actual employment during the applicable Performance Period.  Notwithstanding the forgoing, as specified in Section 4.3(a), the Committee may waive the achievement of the Performance Goals for a Performance Period for purposes of payment of an Award, in the case of death or disability of the Participant, or in the case of a “Change in Control of the Company,” but only in such cases.
(b)    Except as otherwise specifically provided in this Section 4.4, if the Participant’s employment with the Company is terminated prior to the end of a Performance Period for any other reason, the Participant will not be entitled to any Award for such Performance Period unless otherwise determined by the Committee or unless otherwise required by law and in no event unless the Performance Goals and other material terms of the Award are certified in writing by the Committee as having been met.
(c)    Notwithstanding the foregoing provisions of this Section 4.4, the Committee may provide that a Participant shall not be paid an Award for a specific Performance Period, even if the Participant is employed at the end of that Performance Period, if the Participant separates from service before the date payments of Awards are made to other Participants for that Performance Period.
4.5.    Transfers and Changes in Responsibilities.  If a Participant’s responsibilities materially diminish to a level, or the Participant is transferred during a Performance Period to a position, that is not deemed by the Committee as eligible to participate in the Plan, the Company may, as determined by the Committee, terminate the Participant’s participation in this Plan.  In the event of such termination, the Participant would be eligible for a prorated Award based on the number of months in such Performance Period prior to such termination.  Such Award would be 

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paid only after the end of such Performance Period and only if the Performance Goals and other material terms of the Award are certified in writing by the Committee as having been met.
4.6.    Change in Control.
(a)    In connection with any “Change in Control of the Company” (within the meaning of the “Executive CIC Agreement” as defined below), which occurs during a Performance Period, the Committee will take all such actions hereunder as it may determine to be necessary or appropriate in connection with Awards for such Performance Period to treat Participants equitably, including, without limitation, the modification or waiver of applicable Performance Goals, Performance Criteria, Performance Periods, or Awards, notwithstanding the terms of any initial award.
(b)    “Executive CIC Agreement” shall mean the executive severance agreement between each of the elected officers of the Company, as amended from time to time, which generally provides post-employment payments and benefits to these officers upon a change in control of the Company.
4.7.    Maximum Award.  The maximum value of Award payable under the Plan granted to any Participant for any Performance Period is $3,000,000, adjusted pro rata for a Performance Period shorter than 12 months.
5.    MISCELLANEOUS
5.1.    Amendment and Termination of the Plan.  The Board or the Committee may, from time to time, alter, amend, suspend or terminate the Plan as it shall deem advisable, subject to any requirement for stockholder approval imposed by applicable law, including Section 162(m) of the Code, or by the New York Stock Exchange (or such other principal securities market on which the Company’s securities are listed or qualified for trading).  No amendments to, or termination of, the Plan shall in any way impair the rights of a Participant under any Award previously granted without such Participant’s consent.
5.2.    Section 162(m) of the Code.  To the extent an Award is intended to constitute “performance-based compensation” thereunder, the provisions of this Plan shall be administered and interpreted in accordance with Section 162(m) of the Code.
5.3.    Tax Withholding.  The Company or any Subsidiary shall have the right to make all payments or distributions pursuant to the Plan to a Participant, net of any applicable federal, state and local taxes required to be paid or withheld.  The Company or a Subsidiary shall have the right to withhold from wages, Awards or other amounts otherwise payable to such Participant any such taxes as may be required by law, or to otherwise require the Participant to pay or provide for the payment of any such taxes in a manner satisfactory to the Company or such Subsidiary.  If the Participant shall fail to make such tax payments as are required, the Company or a Subsidiary shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to such Participant or to take such other action as may be necessary to satisfy such tax obligations.

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5.4.    Right of Discharge Reserved; Claims to Awards.  Nothing in this Plan shall provide any Participant a right to receive any Award or payment under the Plan with respect to a Performance Period.  Nothing in the Plan nor the grant of an Award hereunder shall confer upon any Participant the right to continue in the employment of the Company or a Subsidiary or affect any right that the Company or a Subsidiary may have to terminate the employment of (or to demote or to exclude from future Awards under the Plan) any such Participant at any time for any reason.  Except as specifically provided herein or in any agreement or other instrument entered or adopted into in connection with this Plan, the Company shall not be liable for the loss of existing or potential profit from any Award granted in the event of the termination of employment of any Participant.
5.5.    Other Plans.  Nothing contained in the Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to stockholder approval if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases.
5.6.    Severability.  If any provision of the Plan shall be held unlawful or otherwise invalid or unenforceable in whole or in part by a court of competent jurisdiction, such provision shall (a) be deemed limited to the extent that such court of competent jurisdiction deems it lawful, valid and/or enforceable and as so limited shall remain in full force and effect, and (b) not affect any other provision of the Plan or part thereof, each of which shall remain in full force and effect.  If the making of any payment or the provision of any other benefit required under the Plan shall be held unlawful or otherwise invalid or unenforceable by a court of competent jurisdiction, such unlawfulness, invalidity or unenforceability shall not prevent any other payment or benefit from being made or provided under the Plan, and if the making of any payment in full or the provision of any other benefit required under the Plan in full would be unlawful or otherwise invalid or unenforceable, then such unlawfulness, invalidity or unenforceability shall not prevent such payment or benefit from being made or provided in part, to the extent that it would not be unlawful, invalid or unenforceable, and the maximum payment or benefit that would not be unlawful, invalid or unenforceable shall be made or provided under the Plan.
5.7.    Clawback.  All awards shall be subject to recovery by the Company in such circumstances as may be prescribed by the Committee at any time or from time to time, if the Committee deems such recovery to be necessary to ensure compliance with any rules, regulations or listing standards adopted by the Securities and Exchange Commission or the New York Stock Exchange to implement Section 10D of the Securities and Exchange Act, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
5.8.    Section 409A.  The Company intends that the Plan and each Award granted hereunder shall comply with, or be exempt from, Section 409A and that the Plan shall be interpreted, operated and administered accordingly.  If any provision of the Plan contravenes any regulations or guidance promulgated under Section 409A, or would cause any Award to be subject to taxes, interest or penalties under Section 409A, the Company may, in its sole discretion, modify the Plan to (a) comply with, or avoid being subject to, Section 409A, (b) avoid 

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the imposition of taxes, interest and penalties under Section 409A, and/or (c) maintain, to the maximum extent practicable, the original intent of the applicable provision without violating the provisions of Section 409A.  The Company is not obligated to modify the Plan and there is no guarantee that any payments will be exempt from taxes, interest and penalties under Section 409A.  Notwithstanding anything herein to the contrary, in no event shall the Company be liable for the payment of, or gross up in connection with, any taxes, interest and or penalties owed by the Participant pursuant to Section 409A.
5.9.    Unfunded Status of the Plan.  The Plan is intended to constitute an “unfunded” plan for incentive compensation.  With respect to any payments not yet made to a Participant by the Company, nothing contained herein shall give any such Participant any rights that are greater than those of a general creditor of the Company.
5.10.    Governing Law.  The Plan and all determinations made and actions taken thereunder, to the extent not otherwise governed by the Code or the laws of the United States, shall be governed by the laws of the State of Delaware without reference to principles of conflict of laws that might result in the application of the laws of another jurisdiction, and shall be construed accordingly.
5.11.    Effective Date of Plan.  The Plan shall be effective as of January 1, 2016.

-9-Exhibit

                        

GCP APPLIED TECHNOLOGIES INC. 
SUPPLEMENTAL EXECUTIVE 
RETIREMENT PLAN

ADOPTED 
EFFECTIVE JANUARY 1, 2016

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GCP APPLIED TECHNOLOGIES INC.
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
 
Introduction

This Plan is effective as of January 1, 2016.

This Plan is a successor to the W. R. Grace & Co. Supplemental Executive Retirement Plan (the “Grace SERP”) with respect to eligible GCP Transferred Employees (as defined below), and liabilities with respect to such GCP Transferred Employees that are transferred from the Grace SERP to this GCP Plan effective January 1, 2016 (or such other date such an individual becomes a Eligible Person in this Plan).  The benefits under this GCP SERP shall be no less than the benefits accrued under the Grace SERP with respect to such Eligible Person prior to the date of such transfer, and except as otherwise provided herein or by law, the terms of the Grace SERP as in effect from time to time before such transfer shall govern the determination of rights and benefits under this GCP Plan with respect to events before such date.  

Section 1
Definitions 

When used herein, the words and phrases defined hereinafter shall have the following meanings unless a different meaning is clearly required by the context of the Plan.

1.01    Affiliate:

Any corporation or trade or business (other than the Company) that is treated under the first sentence of section 414(b) or under section 414(c) of the code as 

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constituting the same "employer" as the Company, during the period of controlled status thereunder.

1.02    Board of Directors:

 The Board of Directors of the Company.

1.03    Code:
  The Internal Revenue Code of 1986, as amended.

1.04    Committee:

 The Salary, Incentive Compensation and Employee Benefits Committee of       the Board of Directors.

1.05    Company:

GCP Applied Technologies Inc.

1.06    Disabled or Disability:

A medically determinable physical or mental impairment of the Eligible Person which can be expected to last for a continuous period of not less than 12 months, and for which the Participant is receiving income replacement benefits for a period of not less than 3 months under the Company’s long-term disability plan. An Eligible Person shall be considered to have incurred a Disability if he or she is determined to be total disabled by the Social Security Administration.  

1.07    Effective Date:

 January 1, 2016.

1.08    Eligible Person:

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A person who is described in section 2 as eligible to receive benefits under the Plan.

1.09.    Employee:

An Employee of the Company or an Affiliate under the Plan and any GCP Transferred Employees who participated in the Grace SERP prior to his or her transfer to GCP.
 
1.10    Employing Unit:

Any employing unit described in Section 1.14 of the GCP Salaried Plan.
  
1.11    GCP Transferred Employee:
            
As defined in the Employee Matters Agreement that is implemented in           conjunction with the spin-off of the Company from W. R. Grace & Co. and its subsidiaries (“Grace”) in 2016 
            
1.12    GCP Salaried Plan:

The GCP Applied Technologies Inc. Retirement Plan for Salaried Employees. Any reference to a section of the GCP Salaried Plan shall include the corresponding section of any future text thereof.

1.13        Plan:

The GCP Applied Technologies Supplemental Executive Retirement Plan.

1.14        Termination of  Service:

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The date of the cessation of the Eligible Person’s provision of services to the Company and each Affiliated Employer (other than by death or Disability), subject to the following:
		
	(a) 
	For this purpose, the employment relationship is treated as continuing intact while the Eligible Person is on military leave, sick leave, or other bona fide leave of absence (such as temporary employment by the government) if the period of such leave does not exceed six (6) months or, if longer, so long as his right to reemployment with the Company or an Affiliated Employer is provided either by statute or by contract. If the period of leave exceeds six (6) months and his right to reemployment is not provided either by statute or contract, the employment relationship is deemed to terminate on the first date immediately following the six-month period.

		
	(b)
	The determination of whether an Eligible Person has terminated employment shall be determined based on the facts and circumstances in accordance with the rules set forth in section 409A of the Code and regulations thereunder.

Section 2 Eligibility and Vesting

		
	2.01 
	Any Employee, including but not limited to any GCP Transferred Employee whose liabilities are transferred from the Grace SERP to this Plan, who (i) accrues credited service (as defined the GCP Salaried Plan) under the GCP Salaried Plan on or after the Effective Date of the Plan, (ii) has an annual base salary of at least $75,000 at any time during the period that he is accruing such credited service under the GCP Salaried Plan, and (iii) satisfies the provisions of Section 2.02, shall be eligible to receive benefits under this Plan in accordance with Section 3 of the Plan.

		
	 2.02 
	An Eligible Person must terminate service with the Company and its Affiliates on or after the date as of which he otherwise becomes vested under the GCP Salaried Plan, in order to be eligible to receive benefits, if any, under this Plan. In the event that an Eligible Person 

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terminates service with the Company and its Affiliates prior to the date his benefits become vested in accordance with this Section 2.02, he shall be entitled to no benefits under this Plan.

Section 3 
Benefits 
		
	3.01 
	Retirement Benefit.  The monthly benefit payable to a vested Eligible Person under the Plan shall be equal to the excess, if any, of

		
	(a) 
	The amount of the monthly benefit which would be payable to such Eligible Person under the GCP Salaried Plan if the provisions set forth in the GCP Salaried Plan to comply with the benefit limitations of section 415 of the Code, the compensation limitations of section 401 (a) (17) of the Code and any other Code provisions that become effective after January 1, 2016 which similarly limit the amount of retirement benefit that may be accrued under the GCP Salaried Plan, were inapplicable, and determined in accordance with the following additional principles;

over
		
	(b) 
	the amount of the monthly benefit that would be payable to such Eligible Person under the GCP Salaried Plan commencing on the same date and in the same form of payment that payments commence under the Plan. 

		
	3.02 
	The calculation of the monthly benefit described in Section 3.01(a) above shall be based on the actuarial assumptions and other benefit-determining factors determined pursuant to the terms of the GCP Salaried Plan. 

		
	3.03 
	The monthly benefit under the Plan shall commence as soon as reasonably practicable following the later of (1) the first day of the month following the month in which such Eligible Person Terminates Employment with the Company and all of its Affiliates and (2) the first day of the month following the month he or she attains age 55, provided, however, 

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that with respect to a Participant who becomes Disabled, distribution shall commence as of the first day of the month following his attainment of age 65 .  

		
	3.04 
	Death Benefits.  Upon the death of an Eligible Person prior to his commencement of benefits hereunder, benefits will be payable for the life of the surviving spouse to whom he has been married throughout the one year preceding his date of death.  Such surviving spouse shall receive a monthly benefit equal to 50% of the retirement benefit the Participant would have received hereunder payable in the form of the corresponding Joint and Survivor Option if he had retired on his date of death (or his date of actual termination, if earlier) with an immediate retirement benefit commencing as of the first day of the month coincident with or next following his date of death (with a reduction for early commencement of benefits for the period prior to his attainment of age 65 determined in accordance with Section 7 of the GCP Salaried Plan. No benefit will otherwise be payable under the Plan upon the death of an Eligible Person whose death occurs prior to commencement of his benefits hereunder.

		
	  
	The benefit, if any, payable upon the death of an Eligible Person following his commencement of benefits hereunder shall be based on the form of payment elected pursuant to Section 3.05. Payment to a joint annuitant, beneficiary or surviving spouse, as applicable, shall commence on the first day of the month following the date of death of the Eligible Participant, and shall continue in accordance with the provisions of the applicable form of payment.      

Notwithstanding any provision of the Plan to the contrary, in the event that an Eligible Person's joint annuitant, beneficiary, or surviving spouse entitled to benefits hereunder shall become entitled to benefits (in such capacity) under the GCP Salaried Plan, and the provisions of the GCP Salaried Plan do not preclude such joint annuitant, beneficiary, or surviving spouse from receiving all or part of the benefit provided thereunder with respect to such Eligible Person, then the GCP Salaried Plan shall pay such benefit to the extent permitted under the GCP Salaried Plan (and no amount duplicating such benefit shall be payable under the Plan).  To the extent that benefits payable under the GCP Salaried Plan to such person commences after the date benefits to such person commence under this Plan, the provisions of this Section 3.04 shall take effect (and payments under this Plan 

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shall be reduced) beginning on the date such benefits commence under the GCP Salaried Plan. 

		
	3.05 
	Form of Payment of Benefits.  Benefits payable under the Plan shall be distributed in a form of payment determined pursuant to the following:

		
	(a) 
	Unless the Eligible Person elects otherwise, benefits shall be paid in the form of a single life annuity with the last payment due for the month in which the Eligible Person dies. 

		
	(b) 
	In lieu of receiving payment in the form of a single life annuity, an Eligible Person may elect to receive payment in the form of any annuity available to such person under the GCP Salaried Plan, other than the level income option; provided such annuity option is actuarially equivalent within the meaning of Treasury Regulation Section 1.409A-2(b)(2)(ii) (for example, any period certain annuity option is not actuarially equivalent). All elections under this paragraph (b) shall be made in accordance with procedures prescribed by the Committee.

		
	(c)
	Payment of benefits hereunder shall commence on or as soon as reasonably practicable following the scheduled payment date described above, subject to the provisions of Section 6.04; provided, however, that in all events, payment shall commence no later than the end of the calendar year that includes the scheduled payment date or, if later, by the 15th day of the third calendar month following the scheduled payment date.

		
	3.06 
	The benefits payable under the Plan shall be paid by the Company or a subsidiary of the Company, as the case may be, out of its general assets and shall not be funded in any manner.

		
	3.07
	Notwithstanding any other provision of the Plan to the contrary, except to the extent described in Section 3.05(c) with respect to small amounts, benefits under the Plan shall not be paid in the form of a lump sum to any Eligible Person, joint annuitant, beneficiary or surviving spouse, as applicable, regardless of the form of payment applicable to benefits payable to any Eligible Person under the GCP Salaried Plan.

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Section 4 
Administration

		
	4.01 
	The Plan shall be administered by the Investment and Benefit Committee of GCP (or its designee) in accordance with its terms and purposes. The Committee (or its designee) shall determine the amount and manner of payment of the benefits under the Plan.

		
	4.02 
	The decisions made and the actions taken by the Committee (and its designee) in the administration of the Plan shall be final and conclusive on all persons, and the Committee, its members, and its designees shall not be subject to liability with respect to the Plan.

		
	4.03 
	The Committee (or its designee) shall have the sole responsibility for the administration of the Plan and shall have the exclusive right to interpret the provisions of the Plan and to determine any question arising thereunder or in connection with the administration of the Plan, including the remedying of any omissions, inconsistency, or ambiguity, and its decision or action in respect thereof shall be conclusive and binding on all persons.

Section 5

Amendment and Termination 

		
	5.01 
	The Board of Directors of GCP may amend or terminate the Plan with respect to future periods at any time for whatever reason it may deem appropriate. In the event of termination of the Plan, no person shall be entitled to accrue additional benefits under the Plan with respect to any period after the effective date of termination determined by the Board of Directors; provided, however, that any benefits under the Plan accrued prior to the effective date of the termination determined by the Board of Directors shall not be reduced on account of such termination. Notwithstanding the foregoing, the provisions of Section 2.04 shall continue to be applicable to an Eligible Person, unless the Board of Directors elects to waive such provisions in order to vest all Eligible Persons in any such benefits provided under the Plan even if such an Eligible Person terminates service with the Company and 

9

its Affiliates prior to the date he attains age 55 or he completes at least five (5) years of vesting service) (as defined in the GCP Salaried Plan).
Section 6
Miscellaneous 

		
	6.01 
	Nothing contained in the Plan shall be construed as a contract of employment between the Company and an Eligible Person, or as a right of any Eligible Person to continue in the employ of the Company or as a limitation of the right of the Company to discharge any Eligible Person, with or without cause.

		
	6.02 
	The benefits payable under the Plan may not be assigned or alienated.

		
	6.03 
	The Plan shall be governed, to the extent provided thereunder, by the Employee Retirement Income Security Act of 1974 and to the extent not preempted, by the laws of the State of New York.

		
	6.04 
	Any other provision of this Plan notwithstanding, if an Eligible Person becomes entitled to benefits under this Plan at a time that the Company determines such Eligible Person is a "specified employee", within the meaning of Code section 409A(a)(2)(B), then such Eligible Person shall not be paid those benefits, prior to a date that is 6 months after the Eligible Person's "separation from service" (within the meaning of section 409A(2)(A)(i)) from the Company or his date of death if sooner. Such payments shall commence as soon as reasonably practicable following the first day of the first month next following the earlier of the Participant’s death or the last day of the six-month delay period. 

		
	6.05 
	Payments under this Plan are intended to be in compliance with Code section 409A; and the provisions of the Plan shall be interpreted and administered in that manner.

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