Document:

TEN-2014.12.31-10K EX -10.67

EXHIBIT 10.67

December 30, 2014  

Mr. Brian J. Kesseler 
12924 N. Cobblestone Court
Mequon, WI 53097 

Dear Brian:

I am pleased to provide for your consideration this letter offering employment to be Chief Operating Officer of Tenneco Inc.

The key terms of Tenneco’s offer of employment are described below.

Start Date

Your employment with Tenneco will commence January 6, 2015. For the purpose of this letter, we will refer to your start date within Tenneco as the "employment date".

Outline of Employment Offer

		
	1.
	Position:  As an executive officer, your position will be Chief Operating Officer, reporting directly to Gregg Sherrill, Chairman, CEO of Tenneco. 

		
	2.
	Base Salary:  Your initial base salary will be $850,000 per year less appropriate taxes and withholding, paid in accordance with Tenneco’s normal payroll practices. Beginning in 2016 and each year thereafter, your base salary will be reviewed and, in turn, may be adjusted, subject to approval by the Compensation, Nominating and Governance Committee of Tenneco Inc.’s Board of Directors (the “CNG Committee”).

		
	3.
	Annual Incentive Compensation:  You will be eligible to participate in Tenneco’s executive annual incentive plan in a manner consistent with other Tenneco executives.  The terms of the annual incentive plan are set forth in the Tenneco Value Added Incentive Compensation Plan (“TAVA Plan - copy attached). Your initial target bonus opportunity for the 2015 calendar year performance period under the TAVA Plan will be 100% of your annual base salary (or $850,000 based on the offered salary). The payment of an annual incentive to you is subject to achievement of pre-defined performance goals for the Company, the approval by the CNG Committee, as well as the terms of the TAVA Plan (or successor plan).

		
	4.
	Sign-on Bonus:  You will receive a one-time cash payment, less appropriate taxes and withholding, of $ 1,000,000 payable within the first month of your employment date.  Further, this payment is subject to the terms described on the attached “Repayment Agreement - Signing Bonus.”  Please return this form with the signed Offer Letter.

		
	5.
	Long-Term Incentive Compensation:  You will be eligible to participate in Tenneco’s long-term incentive plan in a manner consistent with other Tenneco executives. The terms of the long-term incentive plan are set forth in the Tenneco Long-Term Incentive Plan, as amended (“LTIP”), a copy of which has been attached. 

Each year the CNG Committee will determine and approve the mix of long-term incentive (LTI) awards that will be granted to you and the aggregate target value of these awards. Your first eligibility for a full LTI award will be in January 2015. The final award size, performance conditions and other terms of this award will be approved by the CNG Committee in January 2015 at the same time the terms of these awards are established for other executives at the Company. Your 2015 LTI award is currently estimated to have a $3,000,000 value, granted 50% as restricted shares with a 3-year ratable vesting and 50% Long Term Performance Units (LTPUs) with a 3-year performance measurement period. 
As part of the LTI award, you will also be eligible to receive a full LTPU award (target at 40% of LTI award) payable in 2016 for the performance period of 2013 - 2015 and a second full LTPU award (target 

at 40% of LTI award) for the performance period of 2014 - 2016 payable in 2017, subject to the performance goals and other criteria that were set for each of these two performance cycles and will be communicated in the award agreements.
		
	6.
	Retirement Plans:  You will be eligible to participate in Tenneco’s 401(k) Plan that provides a 100% company match on your first 3%, and 50% of your next 2%, of base pay contributions subject to Plan and IRS maximums. In addition, you will receive a 2% of base pay contribution into the 401(k) Plan after one year of service. 

You will also be eligible to immediately participate in Tenneco’s Excess Benefit Plan that provides a 3% of base pay company contribution after IRS compensation maximums have been reached, and a company contribution equal to 3% of TAVA Plan bonus paid. 
		
	7.
	Change-In-Control (CIC) Protection:  You will be eligible to participate in Tenneco’s Change-in-Control Severance Benefit Plan for Key Executives. Benefits under the Plan are payable if you are discharged (either actually or constructively) within two years after change-in-control that include lump-sum cash payment equal to three times base salary and targeted annual bonus in effect immediately prior to the change-in-control.

		
	8.
	Severance (not related to CIC):  If your employment is involuntarily terminated by the company for reasons other than disability or Cause ( means (i) fraud, embezzlement, or theft in connection with your employment (ii) gross negligence in the performance of your duties, or (iii) conviction, guilty plea, or plea of nolo contender with respect to a felony), and other than under circumstances which would entitle you to benefits under the Change in Control Plan, you will be entitled to severance equal to two times your annual base salary payable in a lump sum, subject to your execution of a general release and such other documents as the company may reasonably request. 

		
	9.
	Stock Ownership Guidelines:  Upon employment, you will be subject to Tenneco’s stock ownership guideline policy, requiring that you hold qualifying shares of Tenneco Inc. equal to four times base salary, to be attained within five years of your employment date. 

		
	10.
	Anti-Hedging Policy:  Upon employment, you will be subject to Tenneco’s anti-hedging policy that limits the timing and types of transactions in Tenneco securities. 

		
	11.
	Replacement of Foregone Equity:  Foregone non vested equity from your previous employer that would otherwise vest no later than November 19, 2016 will be valued using a 45-day trading day stock price average (date range to be determined). To replace the value of foregone equity compensation from your previous employer, Tenneco will grant one or more awards equal to the foregone value in the form of Tenneco restricted stock, vesting 50% on the 2nd and 4th anniversaries from grant date with the number of shares based on a 45-trading day stock price average at the date of the grants. 

		
	12.
	Relocation Benefits: You will eligible for Tenneco’s relocation benefits (policy attached) at a Tier II level for up to two years from your employment date. These benefits will include a temporary living benefit for a period of three months. 

		
	13.
	Health, Welfare and Retirement Benefits:  You will be eligible to participant in Tenneco’s broad-based health, welfare and defined contribution retirement plans in a manner consistent with other Tenneco executives. Please refer to benefit plan documents for specific terms and eligibility. The Company reserves the right to change these benefit programs and any of our other benefit programs. Attached for your convenience is the Tenneco Salaried Benefits Fact Sheet 2015. 

		
	14.
	Vacation and holiday paid time off:   You will be entitled to four weeks of paid vacation per year in accordance with the provisions of the Company’s vacation policy.  In addition, the Company is typically closed during the week between Christmas and New Year’s Day holidays.  You will also be eligible for paid holidays and personal floating holidays in accordance with the Company’s policies.  However, if you leave employment with Tenneco, your accrued unused vacation will be paid in accordance with our vacation policy. Vacation is prorated to your date of hire and accrued on a monthly basis.

		
	15.
	Employment at Will:  This offer does not constitute a contract of employment for any specific period of time, but will create an employment at-will relationship that may be terminated at any time by you or the Company, with or without cause.

Two copies of this offer letter have been provided.  Please sign the offer letter and return it to me, along with the completed Combined Disclosure Notice and Authorization paperwork as soon as possible.  The second copy should be retained for your personal records.
Brian, we look forward to you joining Tenneco and are excited for you to contribute and share in its future success.  Please contact me to acknowledge your acceptance or with any other questions or concerns.

Sincerely,

/s/ Gregg A. Bolt

Gregg A. Bolt
SR VP Global HR & Administration
Tenneco Inc. 

------------------______________________________________________________________________________                                                                                            

I have read, understood and accept this offer of employment at Tenneco Inc.

By:  /s/ Brian J. Kesseler                            Date:  December 30, 2014    

Print Name:  Brian J. KesselerTEN-2014.12.31-10K EX -10.71

EXHIBIT 10.71

TENNECO INC. 2006 LONG-TERM INCENTIVE PLAN
RESTRICTED STOCK AWARD AGREEMENT

Brian J. Kesseler
Participant

Effective as of January 14, 2015 (the “Grant Date”), the Participant has been granted a Full Value Award under the Tenneco Inc.  2006 Long-Term Incentive Plan (the “Plan”) in the form of shares of restricted stock with respect to 83,474 shares of Common Stock (“Restricted Shares”).  The Award shall be subject to the following terms and conditions (sometimes referred to as this “Award Agreement”) and the terms and conditions of the Plan as the same may be amended from time to time.  Terms used in this Award Agreement are defined elsewhere in this Award Agreement; provided, however, that, capitalized terms used herein and not otherwise defined shall have the meaning set forth in the Plan. 
1.Vesting and Forfeiture of Restricted Shares.  All Restricted Shares shall be unvested unless and until they become vested and nonforfeitable in accordance with this Paragraph 1.  Subject to the terms and conditions of this Award Agreement and the Plan, fifty percent (50%) of the Restricted Shares awarded hereunder shall vest on each of the second and fourth anniversaries of the Grant Date (each a “Vesting Date”), provided that the Participant is continuously employed by the Company or a Subsidiary through the applicable Vesting Date.   Notwithstanding the foregoing:
(a)in the event that (i) either (1) the Participant satisfies the requirements for Total Disability (as defined below) or (2) a tax withholding obligation is incurred under local law with respect to any of the Restricted Shares, in either case, prior to the Vesting Date with respect to such Restricted Shares (the date on which the requirements of clause (i)(1) or (i)(2) are satisfied being referred to herein as the “Tax Vesting Date”) and (ii) the Participant elects to satisfy the tax withholding obligation arising on the Tax Vesting Date pursuant to subparagraph 3(c) of this Award Agreement, then, on the Tax Vesting Date, that number of Restricted Shares having a Fair Market Value (determined as of the Tax Vesting Date) equal to the amount of taxes required to be withheld pursuant to the provisions of subparagraph 3(c) with respect to all Restricted Shares for which the Vesting Date has not occurred prior to the Tax Vesting Date shall become vested and the Tax Vesting Date shall be treated as the “Vesting Date” with respect to such shares; and 
(b)if the Participant's Termination Date occurs by reason of Total Disability or death, any unvested Restricted Shares that are outstanding on the Termination Date shall vest immediately on the Termination Date and the Termination Date shall be the “Vesting Date” for purposes of this Award Agreement. 
All Restricted Shares which are not vested upon the Participant’s Termination Date shall immediately expire and shall be forfeited and the Participant shall have no further rights with respect to such Restricted Shares.  For purposes of this Award Agreement, the term “Total Disability means the Participant’s permanent and total disability as determined under the rules and guidelines established by the Company in order to qualify for long-term disability coverage under the Company’s long-term disability plan in effect at the time of such determination.   Any Restricted Shares for which the Tax Vesting Date is the Vesting Date (as determined in accordance with this Paragraph 1) shall be treated as attributable to successive tranches of Restricted Shares for which a Vesting Date has not occurred as of the Tax Vesting Date (and shall reduce the number of Restricted Shares in applicable tranches that will otherwise vest on future applicable Vesting Dates), beginning with the tranche of Restricted Shares with the first Vesting Date that occurs after the Tax Vesting Date.  Upon the Vesting Date with respect to any Restricted Shares, shares of Common Stock in an amount equal to the number of Restricted 

Shares which become vested on that Vesting Date will be delivered to the Participant (or his or her beneficiary), subject to withholding for taxes.
2.Restrictions Prior to Vesting.  Prior to the Vesting Date with respect to the Restricted Shares and until all conditions imposed on the Restricted Shares are satisfied, such Restricted Shares are restricted in that (a) they will be held by the Company and may not be sold, transferred, pledged or otherwise encumbered, tendered or exchanged, or disposed of, by the Participant unless otherwise provided by the Plan and (b) they are subject to forfeiture by the Participant under certain circumstances as described herein and in the Plan.  However, as long as the applicable Restricted Shares are outstanding and have not been forfeited (i) the Participant will be entitled to receive, subject to withholding for taxes, dividends payable on the Restricted Shares, which the Committee or the Company may require to be reinvested in additional shares of Common Stock subject to the same restrictions as the Restricted Shares on which such dividends are paid and (ii) the Participant may vote the Restricted Shares.  The Participant agrees that the Restricted Shares (including any shares of Common Stock described in clause (ii)) shall be held by the Company prior to the Vesting Date with respect thereto.
3.Withholding.  All distributions under the Plan, including any distribution in respect of this Award, are subject to withholding of all applicable taxes, and the delivery of any shares or other benefits under the Plan or this Award is conditioned on satisfaction of the applicable tax withholding obligations.  Except as otherwise provided by the Committee, such withholding obligations may be satisfied, at the Participant’s election, (a) through cash payment by the Participant, (b) through the surrender of shares of Common Stock which the Participant already owns, or (c) through the surrender of shares of Common Stock to which the Participant is otherwise entitled under the Plan; provided, however, that shares of Common Stock under subparagraph (c) may be used to satisfy not more than the Company’s minimum statutory withholding obligation (based on minimum statutory withholding rates for Federal and state tax purposes, including without limitation payroll taxes, that are applicable to such supplemental taxable income).  The Company shall have the right to deduct from this Award shares sufficient to satisfy any tax withholdings required by law.  If the Participant makes an election in accordance with Section 83(b) of the Code to be taxed on the Restricted Shares in the year in which the Grant Date occurs, he or she must so notify the Company in writing, file the election with the Internal Revenue Service within thirty (30) days after the Grant Date, and promptly pay the Company the amount it determines is needed to satisfy tax withholding requirements.
4.Administration.  The authority to manage and control the operation and administration of this Award shall be vested in the Committee, and the Committee shall have all powers with respect to the Award and this Award Agreement as it has with respect to the Plan.  Any interpretation of the Award or this Award Agreement by the Committee and any decision made by it with respect to the Award or the Award Agreement is final and binding on all persons.
5.Adjustment of Award.  The number of Restricted Shares awarded pursuant to this Award Agreement may be adjusted by the Committee in accordance with the terms of the Plan to reflect certain corporate transactions which affect the number, type or value of the Restricted Shares.  The Participant agrees that the term Restricted Shares shall include any shares or other securities which the Participant may receive or be entitled to receive as a result of the ownership of the original Restricted Shares, whether they are issued as a result of a share split, share dividend, recapitalization, or other subdivision or consolidation of shares effected without receipt of consideration by the Company or the result of the merger or consolidation of the Company, or sale of assets of the Company. 
6.Notices.  Any notice required or permitted under this Award Agreement shall be deemed given when delivered personally, or when deposited in a United States Post Office, postage prepaid, addressed, as appropriate, to the Committee or the Company at the Company’s principal offices, to the Participant at the Participant’s address as last known by the Company or, in any case, such other address as one party may designate in writing to the other.

7.Governing Law.  The validity, construction and effect of this Award Agreement shall be determined in accordance with the laws of the State of Illinois and applicable federal law.
8.Amendments.  The Board may, at any time, amend or terminate the Plan, and the Committee may amend this Award Agreement, provided that, except as provided in the Plan, no amendment or termination may, in the absence of written consent to the change by the affected Participant (or, if the Participant is not then living, the affected beneficiary), adversely affect the rights of any Participant or beneficiary under this Award Agreement prior to the date such amendment or termination is adopted by the Board or the Committee, as the case may be.  
9.Award Not Contract of Employment.  The Award does not constitute a contract of employment or continued service, and the grant of the Award will not give the Participant the right to be retained in the employ or service of the Company or any Subsidiary, nor any right or claim to any benefit under the Plan or this Award Agreement, unless such right or claim has specifically accrued under the terms of the Plan and this Award Agreement.  
10.Severability.  If a provision of this Award Agreement is held invalid by a court of competent jurisdiction, the remaining provisions will nonetheless be enforceable according to their terms.  Further, if any provision is held to be overbroad as written, that provision shall be amended to narrow its application to the extent necessary to make the provision enforceable according to applicable law and enforced as amended.
11.Plan Governs.  The Award evidenced by this Award Agreement is granted pursuant to the Plan, and the shares of Restricted Stock and this Award Agreement are in all respects governed by the Plan and subject to all of the terms and provisions thereof, whether such terms and provisions are incorporated in this Award Agreement by reference or are expressly cited.
12.Counterparts. This Award Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original and all of which together shall constitute one and the same instrument.

ACCEPTED:                             TENNECO INC. 

                            

                                                                                
/s/ Gregg A. Bolt                    
Type or Print Legal Name                      Senior Vice President Global Human Resources 
and Administration

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(Date)
     

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                  Signature                        

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Social Security Number or National ID

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Street Address

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City/State/Zip/Country

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