Document:

EX-10.1

 Exhibit 10.1 
  

 
  

P. H. GLATFELTER COMPANY 

SUPPLEMENTAL LONG TERM DISABILITY 
  

 
  

Background 
 On February 25, 2014, the
Compensation Committee of the Board of Directors approved a new supplemental Long Term Disability Plan (“Supplemental LTD”) to be offered to employees of P. H. Glatfelter Company (the “Company”) with annual base earnings in
excess of $100,000. The goal of the Supplemental LTD benefit is to provide eligible employees with an overall income replacement of 60% in the event of a long-term disability. 

Benefit Provisions 
 The following table provides
an overview of the supplemental LTD benefit provisions: 
  

			
	 Feature
	 	 Supplemental LTD Provision

		
	Insures Total Compensation	 	Base salary + Prior Year Paid Bonus
		
	Definition of Disability- “own occupation”	 	Full benefit period to age 65
		
	Benefits payable upon full recovery while rebuilding compensation	 	6 month recovery benefit
		
	Catastrophic Disability Coverage (covers cost of care due to loss of Activities of Daily Living)	 	Full benefit period up to an additional $10,000 / month subject to individual underwriting
		
	Mental / Nervous Disorders	 	Up to age 65
		
	Pre-existing condition limitation	 	No restrictions
		
	Portability of Coverage	 	Fully Portable
		
	Premium and Benefit Guarantees (non-cancellable)	 	Full benefit period; benefits paid by the Company while actively employed
		
	Benefit Taxability	 	Benefits would be treated as imputed income thereby preserving the income replacement ratio

 Additional Plan Features 
  

	 	•	 	Beginning in 2015, annual eligibility will be evaluated for new entrants in the May timeframe following the completion of the annual merit increase process. Once an employee is enrolled in the program, they would not be
removed until terminated or retired from the Company. The employee would then have the option of converting the program to a private policy. 

  

	 	•	 	The guaranteed standard issue would be up to $15,000 of monthly disability income and underwritten by Unum. 

  

	 	•	 	A six-month provision for recovery of benefits would be provided to participants. Recovery benefits are payable to an employee who returns to work full-time but continues to suffer at least a 20% income loss as a result
of the prior disability. Benefits are proportionate to the income loss provided the income loss continues, not to exceed 6 months. 

  

	 	•	 	A three-month work incentive benefit would be provided to include an additional incentive to return to work while partially disabled, benefitting both the employer and employee. When returning to work with a partial
disability, the Work Incentive Benefit will pay a benefit based on the difference between an executive’s pre-disability income and the current income, up to the maximum benefit amount. 

 

	 	•	 	Catastrophic disabilities are classified as a loss of two Activities of Daily Living (ADL) (eating, bathing, dressing, using the toilet, and continence); cognitive impairment; or one is presumptively disabled (totally
and irrecoverably loses the power of speech, hearing in both ears, sight in both eyes, or use of two limbs). 

  

	 	•	 	The benefit will be treated as imputed income thereby requiring employees to pay taxes on the benefit. Employees will have the ability to opt out of the benefit if objecting to the coverage and subsequent tax treatment.

  

	
	P. H. Glatfelter Company
	
	 By: /s/ William T. Yanavitch II

	Senior Vice President of Human Resources and AdministrationEX-10.2

 Exhibit 10.2 

(form effective as of February 26, 2014) 
  

 
 P. H. GLATFELTER COMPANY 

Performance Share Award Certificate 
  

 
  

			
	Award Number:	  	2014-PSA-01
		
	Award Date:	  	February 26, 2014
		
	Award Type:	  	Performance Share
		
	 Number of Performance
   Shares
granted at Target:1
	  	                    
		
	Performance Period:	  	January 1, 2014 to December 31, 2016
		
	Vesting Date:	  	December 31, 2016
		
	Method of Payment:	  	If vested and earned, this Performance Award shall be paid in shares of Common Stock.

 THIS CERTIFIES THAT P. H. Glatfelter Company (the “Company”) has, on the Award Date specified above, granted to
                                 (the “Participant,” as defined in the
Plan) a Performance Share Award (the “Award”) subject to the terms of this Award Certificate and the Company’s Amended and Restated Long-Term Incentive Plan as amended effective May 9, 2013 (the “Plan”). Capitalized
terms used in this Award Certificate without definition shall have the meanings set forth in the Plan. 
 Each Performance Share, if vested and earned,
shall entitle the Participant to receive one (1) share of the Company’s Common Stock. In the event of any conflict between the terms of the Plan and this Award Certificate, the terms of the Plan shall prevail. 

 

	1 	The actual number of Performance Shares earned by the Participant will be determined following the Vesting Date based on the degree of achievement of the Performance Goals relative to the applicable minimum, target and
maximum thresholds, as more fully described in Section 3, and may be more or less than the number of Performance Shares granted at the target threshold. 

  
 February 2014 PSA Award
Certificate – Page 1 of 7 

 (form effective as of February 26, 2014) 

 

 * * * * 

1. Vesting of Performance Shares. The Performance Shares (and any Deemed Dividends with respect to such Performance Shares as set forth in
Section 4) shall vest and be earned based on the achievement of the Company performance goals set forth below (the “Performance Goals”) and the Participant’s continued employment or service with the Company or one of its
subsidiaries through the Vesting Date. The Company’s Board of Directors (the “Board”) will determine whether the Performance Goals have been achieved. Except in the case of the Company’s CEO whose compensation is determined by
the Board, the number of Performance Shares earned by the Participant will be determined by the Compensation Committee of the Company’s Board of Directors (the “Committee”), based on the level of achievement of the Performance Goals
as more fully described in Section 3. These determinations shall be made no later than March 15, 2017. 
 2. Performance Goals. The Company
must meet or exceed the applicable minimum Performance Goal listed immediately below for the Performance Period in order for that portion of the Performance Share Award corresponding to such Performance Level on the chart in Section 3 below to
vest and be earned. 
 Performance Goals 

(For the Performance Period 

beginning January 1, 2014 and ending December 31, 2016) 
  

																	
	 Cumulative EBITDAP (40% weight)

 
	 	  
 +
	 	 3-Year Average ROCE (60% weight)

 

	 % of Target
	 	 Payout
	 	 	 % of Target
	 	 Payout

	 Maximum
	 	  $            	 		 		 	 	Maximum	 		 		 	
	 Target
	 	  $            	 		 		 	 	Target	 		 		 	
	 Threshold
	 	  $            	 		 		 	 	Threshold	 		 		 	
	 < Threshold
	 	<$            	 		 		 		 	< Threshold	 		 		 	

 For purposes of this Award Certificate, the following terms shall have the following meanings: 

“3-year Cumulative Adjusted EBITDAP” means the Company’s cumulative earnings before interest, taxes, depreciation, amortization
and pension income or pension expense, during the Performance Period, as determined by the Committee. EBITDAP is, generally speaking, equal to the Company’s revenues minus its costs, after excluding from such costs interest expense, taxes,
depreciation, amortization and pension income or pension expense, subject to adjustment as contemplated by the Plan. 
 “3-year Average
ROCE” means the Company’s average annual percentage return on capital employed during the Performance Period, as determined by the Committee. ROCE is, generally speaking, calculated as the tax-effected value of earnings before interest and
taxes (EBIT) divided by the Company’s total capital outstanding, subject to adjustment as contemplated by the Plan. 

  
 February 2014 PSA Award
Certificate – Page 2 of 7 

 (form effective as of February 26, 2014) 

 

 3. Determination of Achievement of Performance Goals. No later than March 15, 2017, the Board
shall determine whether the Performance Goals have been achieved, and the level of such achievement, and the Committee (or the Board in the case of the Company’s CEO) shall determine the number of Performance Shares, if any, earned by the
Participant. The number of Performance Shares to be vested and earned (provided the Participant remains continuously employed through the Vesting Date) shall be based on the degree of achievement of the Performance Goals, in accordance with the
following guidelines: 
  

					
	 Company Performance:
	  	 3-year Cumulative Adjusted EBITDAP

(40% Weight)
	  	 3-year Average ROCE

(60% Weight)

			
	Is at target	  	100% of Performance Shares payable with respect to this Performance Goal at target	  	100% of Performance Shares payable with respect to this Performance Goal at target
			
	Meets minimum Performance Goal	  	50% of the Performance Shares payable with respect to this Performance Goal at target	  	50% of the Performance Shares payable with respect to this Performance Goal at target
			
	Exceeds the minimum Performance Goal but is less than target	  	Interpolated between minimum and target	  	Interpolated between minimum and target
			
	Meets or exceeds the maximum Performance Goal	  	200% of the Performance Shares payable with respect to this Performance Goal at target	  	200% of the Performance Shares payable with respect to this Performance Goal at target
			
	Exceeds the target Performance Goal but is less than maximum	  	Interpolated between target and maximum	  	Interpolated between target and maximum

 The Committee (or the Board in the case of the Company’s CEO) has the discretion to reduce (but not increase) some or all
of the number of shares of Common Stock that would otherwise be earned as a result of the satisfaction of the Performance Goals. In making this determination, the Committee may take into account any such factor or factors it determines are
appropriate, including but not limited to Company, business unit or individual performance. 
 4. Dividends on Performance Shares. During the period
from the Award Date to the issue of shares of Common Stock in accordance with Section 7, the Participant shall be credited with deemed dividends (a “Deemed Dividend”) in an amount equal to each cash dividend payable subsequent to the
Award Date, just as though such Participant, on the record date for payment of such dividend, had been the holder of record of shares of Common Stock equal to the number of Performance Shares at target (adjusted as described in the following
sentence) represented by this Award Certificate. The Deemed Dividends will be converted to additional Performance Shares at target, rounded down to the nearest whole number, by dividing the Deemed Dividends by the Fair Market Value (as defined in
the Plan) of one share of Common Stock on the record date for the cash dividend to which it relates is paid. The Company shall establish a bookkeeping account to account for the Deemed Dividends and additional Performance Shares at target to be
credited to the Participant. The additional Performance Shares represented by Deemed Dividends are subject to the same vesting requirements (see Section 1) as other Performance Shares, including without limitation the requirement that the
applicable Performance Goals described herein have been achieved. 

  
 February 2014 PSA Award
Certificate – Page 3 of 7 

 (form effective as of February 26, 2014) 

 

 5. Separation from Service Prior to the Vesting Period. 

(a) In General. Subject to paragraphs (b) and (c) below, if, prior to the Vesting Date, the Participant ceases to be an
employee of, or to provide services to, the Company or any of its subsidiaries for any reason (whether voluntarily or involuntarily) then this Performance Shares Award shall be immediately and irrevocably forfeited. 

(b) Retirement, Death or Disability. Notwithstanding the foregoing, if the Participant has a Separation from Service due to the death
or Retirement of the Participant, or a termination of service due to Disability (whether or not a Separation from Service), and such event takes place on or after January 1, 2015 but prior to the Vesting Date, then the Participant shall be
entitled to receive a pro-rated Performance Share Award following the end of the Performance Period, provided that the Performance Goal(s) are determined to have been achieved. Such pro-ration shall be determined by multiplying the number of
Performance Shares the Participant would have received by a fraction, the numerator of which equals the number of days that elapse between the first day of the Performance Period and the date of death, Retirement, or Disability commencement, and the
denominator shall equal the total number of days in the Performance Period. Payment of such pro-rated Award shall be made in accordance with the provisions set forth in Section 7. 

(c) Impact of a Change in Control. In the event of a Change in Control in which the Company is not the surviving entity, this
Performance Share Award shall be deemed to be earned at the greater of target or actual performance through the date of the Change in Control, as determined by the Board, for each Performance Goal as of the date of the consummation of such Change in
Control, and shall be replaced with the common stock of the surviving entity (“Replacement Performance Shares”). The number of Replacement Performance Shares shall be calculated based on the Fair Market Value of the Company’s Common
Stock at the date of the Change in Control divided by the fair market value of the surviving entity’s common stock on such date. If the Replacement Performance Shares are not issued for any reason, or if the common stock of the surviving entity
is not publically traded at the date of the Change in Control, then, all Performance Shares shall be deemed to be earned upon the occurrence of the Change in Control at the greater of target or actual performance through the date of the Change in
Control, as determined by the Board. 
 The Participant’s right to such Replacement Performance Shares shall not vest unless and until
the Participant has remained in continuous employment with the Company or a subsidiary, or the Company’s successor or a subsidiary, through the Vesting Date. Notwithstanding the foregoing, if the Participant has (i) an involuntary
Separation from Service, other than for Cause, with the Company or the surviving entity following a Change in Control or (ii) a voluntary Separation from Service for Good Reason following a Change in Control, the requirement of continued
employment through the Vesting Date shall be waived and the Participant shall be deemed vested with respect to payment of the Replacement Performance Shares on the date of such Separation from Service. 

The terms and provisions of this Certificate shall continue to apply to the Replacement Performance Shares upon issuance. In addition, if the
Participant remains in continuous employment with the Company or its successor, or a subsidiary of the Company or its successor, 

  
 February 2014 PSA Award
Certificate – Page 4 of 7 

 (form effective as of February 26, 2014) 

 

 
through the Vesting Date, the Participant shall be entitled to receive a value restoration payment with respect to such Replacement Performance Shares as are deemed vested on such Vesting Date (a
“Value Restoration Payment”). The Value Restoration Payment shall be equal to the difference between the fair market value of the surviving entity’s common stock on the date of the Change in Control and, if less, the fair market value
of the surviving entity’s common stock on the Vesting Date (which shall be deemed to mean the date of the Participant’s involuntary Separation from Service other than for Cause, or voluntary Separation from Service for Good Reason, as
described in the last sentence of the paragraph immediately above). For example, if the surviving entity’s common stock fair market value is $20.00 per share on the date of the Change in Control and is $15.00 per share on the Vesting Date, the
Participant shall be entitled to receive a Value Restoration Payment equal to $5.00 per Replacement Performance Share. Any such Value Restoration Payment shall include interest (at the prime rate of interest of the Company’s principal bank in
effect on the vesting date for the period between the date of the Change in Control and the Vesting Date), and shall be paid in cash within thirty (30) days after the Vesting Date. 

6. Restriction on Transfer. No rights under this Performance Shares Award may be sold, assigned, transferred, pledged, hypothecated or otherwise
disposed of by the Participant, and any such purported sale, assignment, transfer, pledge, hypothecation or other disposition of Performance Shares or other rights under this Performance Shares Award shall be void and unenforceable against the
Company and shall result in the immediate forfeiture of such Performance Shares Award and rights. Notwithstanding the foregoing, the Participant may, in the manner established by the Committee, designate a beneficiary or beneficiaries to exercise
the rights of the Participant and receive any shares of Common Stock issued with respect to the Performance Shares Award upon the death of the Participant. 

7. Payment of Performance Shares. Payment in respect of the vested and earned Performance Shares shall be made to the Participant no later than
March 15, 2017 but only to the extent it is determined that the applicable Performance Goal(s) and other requirements set forth herein have been met. Payment of vested and earned Performance Shares shall be made in shares of Common Stock. The
number of shares issued shall be rounded down to the next whole number of shares and the Company shall cause the shares to be issued, in book-entry form, registered in the Participant’s name or in the name of the Participant’s legal
representatives, beneficiaries or heirs, as the case may be, in satisfaction of such Performance Shares, the number of shares of Common Stock equal to the number of vested and earned Performance Shares. 

The Company shall take such actions as it deems appropriate to ensure all applicable federal, state, local or foreign payroll, withholding,
income or other taxes are withheld or collected from the Participant. In accordance with the terms of the Plan, the Committee hereby confirms that the Participant may elect to satisfy the Participant’s federal, state, local and foreign tax
withholding obligations arising from the receipt of, or the vesting of, Performance Shares by (i) delivering check or money order payable to the Company in any amount equal to the federal, state, local or foreign taxes the Company determines is
required to satisfy its minimum withholding obligations, or (ii) having the Company withhold a portion of the shares of Common Stock otherwise to be delivered having a Fair Market Value equal to the amount of such federal, state, local or
foreign taxes the Company determines is required to satisfy its minimum withholding obligations. The Company will not deliver any fractional share of Common Stock 

  
 February 2014 PSA Award
Certificate – Page 5 of 7 

 (form effective as of February 26, 2014) 

 

 
but will instead round down to the next full number the amount of shares of Common Stock to be delivered. The Participant’s election must be made on or before the date that any such
withholding obligation with respect to the Performance Shares arises. If the Participant fails to make a timely election, the Company shall have the right to withhold a portion of the shares of Common Stock otherwise to be delivered having a Fair
Market Value equal to the amount the Company determines is required to satisfy its minimum withholding obligations with respect to such taxes. 
 8.
Compliance with Code Section 409A. To the extent that distributions of Common Stock or cash in payment of this Performance Shares Award represent a “deferral of compensation” within the meaning of Internal Revenue Code of 1986,
as amended (“Code”) section 409A, such distributions shall conform to the applicable requirements of Code section 409A including, without limitation, the requirement that a distribution to a Participant who is a “specified
employee” within the meaning of Code section 409A(a)(2)(B)(i) which is made on account of the specified employee’s Separation from Service shall not be made before the date which is six (6) months after the date of Separation from
Service. However, distributions as aforesaid shall not be deemed to be a “deferral of compensation” subject to Code section 409A to the extent provided in the exception in Treasury Regulation Section 1.409A-1(b)(4) for short-term
deferrals. 
 9. Miscellaneous. 
 (a)
The Award does not confer on the Participant any right with respect to the continuance of any relationship with the Company or its subsidiaries, nor will it interfere in any way with the right of the Company to terminate such relationship at any
time. 
 (b) The Company shall not be required to deliver any shares of Common Stock upon vesting of the Performance Shares until the
requirements of any federal or state securities laws, rules or regulations or other laws or rules (including the rules of any securities exchange) as may be determined by the Company to be applicable are satisfied. 

(c) Definitions. In addition to the definitions set forth in the Plan, the following definitions shall apply to this Award Certificate:

 “Cause” means (i) an act or acts of personal dishonesty taken by the Participant and intended to result in
substantial personal enrichment of the Participant at the expense of the Company, (ii) the Participant’s willful, deliberate and continued failure to substantially perform for the Company the normal material duties related to
Participant’s job position which are not remedied in a reasonable period of time after receipt of written notice from the Company, (iii) violation by the Participant of any of the Company’s policies, including, but not limited to,
policies regarding sexual harassment, insider trading, confidentiality, non-disclosure, non-competition, non-disparagement, substance abuse and conflicts of interest and any other written policy of the Company, which violation could result in the
termination of the Participant’s employment; or (iv) the conviction of the Participant of a felony. 
 “Change in
Control” shall have the meaning set forth in the Plan. 

  
 February 2014 PSA Award
Certificate – Page 6 of 7 

 (form effective as of February 26, 2014) 

 

 “Good Reason” means (i) a material diminution in the Participant’s
base salary, or (ii) a material change in the geographic location at which the Participant must perform services (for this purpose, a requirement that the Participant’s services be performed at a location less than forty (40) miles
from the location where the Participant previously performed services shall not be considered a material change); provided that within ninety (90) days after the occurrence of any of the events listed in clauses (i) or (ii) above the
Participant delivers written notice to the Company of his/her intention to terminate his/her employment for Good Reason specifying in reasonable detail the facts and circumstances deemed to give rise to the Participant’s right to terminate
his/her employment for Good Reason and the Company shall not have cured such facts and circumstances within thirty (30) days after delivery of such notice by the Participant to the Company (unless the Company shall have waived its right to cure
by written notice to the Participant) and provided further that the Participant in fact has a Separation from Service no later than thirty (30) days following the expiration of such cure period. 

“Retirement” shall mean the retirement of an employee from employment with the Company and all affiliates on or after
attaining age 65, or on or after attaining age 55 with a minimum of ten (10) years of service 
 A copy of the Amended and Restated Long-Term Incentive
Plan is available by request to the office of the Corporate Secretary. 
  

	
	P. H. GLATFELTER COMPANY
	
	  

 By my signature below, I hereby acknowledge receipt of this Award Certificate on the date shown above, which has been
issued to me under the terms and conditions of the Plan. I further acknowledge that I reviewed the Plan and agree to conform to all of the terms and conditions of the Award Certificate and the Plan. 

 

									
	Signature:	 	  
	 		 		 	Date:                     
		 	(Name of Participant)	 		 		 	

  
 February 2014 PSA Award
Certificate – Page 7 of 7

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