Document:

EXHIBIT 10.29

SEVERANCE AGREEMENT

AMENDMENT

Madison Gas and Electric Company (the “Company”) and 

 (the “Employee”) entered into a Severance Agreement (the “Agreement”), dated     , pursuant to which Employee is entitled to certain severance payments and benefits under specified circumstances following Employee’s separation from service with the Company.  For good and valuable consideration the receipt and sufficiency are hereby acknowledged, the Company and Employee desire to amend the Agreement, effective as of December 30, 2010, as follows:

1.

Section 3(b) of the Agreement is deleted in its entirety, and subsection (c) of Section 3 is relettered subsection (b) accordingly.

2.

Section 4 of the Agreement is amended in its entirety to read as follows:

4.

Limitation on Payments.  Anything in this Agreement to the contrary notwithstanding, in the event that Employee becomes entitled to payments or benefits under this Agreement and the payments or benefits payable to Employee under this Agreement, when combined with other payments and benefits received or to be received by the Employee from the Company or any corporation affiliated with the Company within the meaning of Section 1504 of the Code, in the opinion of the Company, would constitute “parachute payments” within the meaning of Section 280G(b)(2) of the Code, then the amounts payable to Employee under this Agreement shall be reduced to an amount, the present value of which (when combined with the present value of any other payments or benefits otherwise received or to be received by Employee from the Company (or any corporation affiliated with the Company within the meaning of Section 1504 of the Code) that would be deemed “parachute payments”) is equal to 2.99 times the “base amount” within the meaning Section 280G(b)(3).    

3.

Section 12(b) is amended by deleting the words “or provide any benefit to Employee and Employee's dependents or other beneficiaries, as the case may be, under paragraphs (a) and (b) of Section 3, the Company shall pay all amounts, and provide all benefits, to Employee and Employee's dependents or other beneficiaries, as the case may be, that the Company would be required to pay or provide pursuant to paragraphs (a) and (b) of Section 3” and inserting in lieu thereof the following words:

under Section 3(a), the Company shall pay all amounts that the Company would be required to pay pursuant to Section 3(a)

1

ACCEPTED AND AGREED to this 

 day of February, 2011.

MADISON GAS AND ELECTRIC COMPANY

EMPLOYEE

by:

         

         

Date

         

2execagramend102510.htm

                           Exhibit 10.1

 

AMENDMENT NUMBER [ONE] [TWO] (the “Amendment”), dated as of October 25, 2010, between OLIN CORPORATION, a Virginia corporation (“Olin”), and [____________] (the “Executive”), to the Executive Agreement (the “Executive Agreement”), dated as of [__________], between Olin and the Executive.

 

WHEREAS on October 16, 2008, and on August 19, 2009, the Compensation Committee of Olin determined, in accordance with Section 3 of the Executive Agreement, to extend the term of the Executive Agreement for an additional year, from January 26, 2011 to January 26, 2012, and from January 26, 2012 to January 26, 2013, respectively, with changes to apply during the extended term to the method of calculating severance thereunder in order to address guidance from the Internal Revenue Service (the “IRS”) that relates to Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”); and

 

WHEREAS the extension of the Executive Agreement contemplates amendment of the Executive Agreement prior to January 26, 2011, to address guidance from the IRS that relates to Section 162(m) of the Code.

 

NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained herein, and intending to be legally bound hereby, the parties hereto agree as follows:

 

SECTION 1. Amendment to Section 1(c)(ii)(B).  Section 1(c)(ii)(B) shall be deemed to have been deleted and the following section shall be deemed to have been inserted in its place:

 

“(B) Executive’s then current ICP standard in respect of the year in which the date of Termination occurs (the “Current ICP Standard”), provided that if (x) Executive was reasonably expected by Olin to be a “covered employee” (within the meaning of Section 162(m) of the Code) for the taxable year of Olin in which the date of Termination occurs, (y) the ICP standard that Executive would have been eligible to receive for such year was originally intended by Olin to satisfy the performance-based exception under Section 162(m) of the Code (without regard to any entitlement to payment upon termination of employment) and (z) as of the date of Termination, Executive had been employed by Olin for a period of time sufficient to have an ICP standard for the fiscal year preceding the fiscal year in which the date of Termination occurs (the conditions in the foregoing clauses (x), (y) and (z) are hereinafter referred to collectively as the “162(m) Conditions”), the reference above to Executive’s Current ICP Standard shall be replaced by a reference to the product of (1) Executive’s annual base salary as of the date of Termination and (2) a fraction, the numerator of which is Executive’s ICP standard for the fiscal year immediately preceding the fiscal year in which the date of Termination occurs and the denominator of which is Executive’s annual base salary for such year (such product, the “Adjusted Prior Year ICP Standard”).

 

  

  

  

SECTION 2. Amendment to Section 5(a).  Section 5(a) is hereby amended by adding the following sentence immediately after the penultimate sentence of such section:

 

“Notwithstanding the foregoing, in the event that the 162(m) Conditions exist, the formula for calculating the prorated ICP award for the calendar year of Termination set forth in the immediately preceding sentence shall be replaced by a reference to Executive’s Adjusted Prior Year ICP Standard, which shall be subject to the same terms and conditions regarding proration and timing of payment as set forth in the immediately preceding sentence.”

 

SECTION 3.   Governing Law; Construction.  This Amendment shall be deemed to be made in the Commonwealth of Virginia, and the validity, interpretation, construction and performance of this Amendment in all respects shall be governed by the laws of the Commonwealth of Virginia without regard to its principles of conflicts of law.  No provision of this Amendment or any related document shall be construed against or interpreted to the disadvantage of any party hereto by any court or other governmental or judicial authority by reason of such party’s having or being deemed to have structured or drafted such provision.

 

SECTION 4.   Effect of Amendment.  Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of the parties to the Executive Agreement, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Executive Agreement, all of which shall continue in full force and effect.  This Amendment shall apply and be effective on and following January 26, 2011 only with respect to the provisions of the Executive Agreement specifically referred to herein.  On and after January 26, 2011, any reference to the Executive Agreement shall mean the Executive Agreement as modified hereby.  For the avoidance of doubt, the parties’ rights and obligations under the Executive Agreement will continue in effect until January 26, 2011, without regard to any of the changes set forth in this Amendment.

 

SECTION 5.   Counterparts.  This Amendment may be executed in one or more counterparts (including via facsimile), each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other party.

 

IN WITNESS WHEREOF, this Amendment has been executed by the parties as of the date first written above.

 

  

  

  

	
                 OLIN CORPORATION,

	
               by

	  	______________________  
	  	
Name:

Title:

	
                 EXECUTIVE,

	  	______________________  
	  	
[Name]perfshareprogram123110.htm

                                                   Exhibit 10.2

PERFORMANCE SHARE PROGRAM

 

Codified to reflect amendments

 

through December 31, 2010

 

 

1.           Terms and Conditions

 

The terms and conditions of the Performance Share Awards granted under this Program are contained in the Performance Share Certificate evidencing such Award, this Program and the LTIP.

 

2.           Definitions

 

	
  

	
“Common Stock” means the common stock of Olin, par value $1.00 per share.

	
  

	
“Final Share Number” has the meaning specified in Section 3 of this Program.

	
  

	
“LTIP” means the Olin Corporation benefit plan under which the relevant Performance Share Award is granted, including the 2003 Long Term Incentive Plan, the 2006 Long Term Incentive Plan, the 2009 Long Term Incentive Plan and any successor or similar plan.

“Olin” means Olin Corporation.

	
  

	
“Performance Cycle” means, with respect to a Performance Share Award, a period of three calendar years, beginning with the calendar year in which such Performance Share Award is granted.

	
  

	
“Performance Share Award” shall mean grants of “Performance Shares” and “Senior Performance Shares.”

	
  

	
“Performance Share” and “Senior Performance Share” mean a unit granted under the LTIP and this Program, maintained on the books of the Company during the Performance Cycle, denominated as one phantom share of Common Stock, and paid in cash or Common Stock in accordance with this Program.

“Program” means this Performance Share Program.

	
  

	
“S&P ROC” shall mean the average annual return on capital (calculated in the same manner as Olin’s Return on Capital) of a group composed of the materials companies included in the Standard & Poor 1000 Materials, plus Occidental Petroleum Corporation, Alliant Techsystems, PPG Industries, Inc., The Dow Chemical Company and Westlake Chemical Corporation, broken out by quintiles.

  

  

  

	
  

	
Capitalized terms not otherwise defined in this Program shall have the meaning specified in the LTIP.

 

3.           Performance Share Awards

 

	
  

	
a.

	
Awards of Senior Performance Shares (category A) under this Program granted pursuant to the LTIP are intended to be “performance-based compensation” as that term is used in Section 162(m) of the Code.  Each Performance Share Award shall establish a target number of Performance Shares or Senior Performance Shares awarded to the Participant named in such Award.

 

	
  

	
b.

	
The target number of Performance Shares for each Participant shall be adjusted based upon a comparison of Olin’s average annual Return on Capital during the Performance Cycle with the S&P ROC during the Performance Cycle, in accordance with the following chart:

 

	
If Olin’s Return on Capital for a Performance Cycle is in the:

	
The % of the target number of Performance Shares paid will be:

	
highest Quintile of the S&P ROC

	
150%

	
2nd Quintile of the S&P ROC

	
125%

	
3rd Quintile of the S&P ROC

	
100%

	
4th Quintile of the S&P ROC

	
50%

	
lowest Quintile of the S&P ROC

	
25%

	
  

	
c.

	
The target number of Senior Performance Shares for each Participant shall be adjusted based upon a comparison of Olin’s average annual Return on Capital during the Performance Cycle with the S&P ROC during the Performance Cycle, in accordance with the following chart:

 

	
If Olin’s Return on Capital for a Performance Cycle is in the:

	
The % of the target number of Senior Performance Shares paid will be:

	  	
A Shares

	
B Shares

	
highest Quintile of the S&P ROC

	
150%

	
150%

	
2nd Quintile of the S&P ROC

	
125%

	
125%

	
3rd Quintile of the S&P ROC

	
100.0%

	
100%

	
4th Quintile of the S&P ROC

	
33.33%

	
100%

	
lowest Quintile of the S&P ROC

	
       0%

	
100%

 

	
  

	
d.

	
As soon as practicable in the calendar year following the end of the Performance Cycle, the Company shall calculate the appropriate adjustment, if any, to the target number of Performance Shares and Senior Performance Shares (the “Final Share Number”) for all Participants whose Performance Share Awards have vested during or at the end of such Performance Cycle.

 

 

4.           Vesting and Forfeiture

 

 

	
  

	
a.

	
Except as otherwise provided by the Committee, the LTIP, this Program or the Performance Share Award certificate, an interest in a Performance Share Award shall vest only if the Participant is an employee of the Company or a subsidiary on the last day of the relevant Performance Cycle.

 

  

  

  

 

	
  

	
b.

	
If a Participant’s employment with the Company or a subsidiary terminates for cause or without the Company’s consent (other than as the result of the Participant’s death, disability or retirement) before a Performance Share Award has vested, his or her Performance Share Award shall terminate and all rights under such Award shall be forfeited.

 

 

	
  

	
c.

	
If a Participant’s employment with the Company or a subsidiary terminates as the result of his or her disability, (as that term is defined in Section 409A of the Code or any successor provision), or retirement under any of the Company’s retirement plans before a Performance Share Award has vested, the Participant shall be entitled to a pro rata Performance Share Award, payable solely in cash at the time that the Performance Share Award would otherwise be payable under Section 5.  The cash payment shall be equal to the Final Share Number calculated in accordance with Sections 3 and 5 of this Program, multiplied by the Fair Market Value on the last day of the relevant Performance Cycle, multiplied by a fraction with a numerator equal to the number of months during the Performance Cycle the Participant was employed by the Company or a subsidiary (rounded up to the nearest whole month) and a denominator of 36.

 

 

	
  

	
d.

	
If a Participant’s employment with the Company or a subsidiary terminates as the result of his or her death before a Performance Share Award has vested, the Participant shall be entitled to a pro rata Performance Share Award, payable solely in cash within ninety (90) days of the Participant’s death.  The cash payment shall be equal to the Participant’s target number of Performance Shares or Senior Performance Shares, as the case may be, multiplied by the Fair Market Value on the date of the Participant’s death (or the next trading day, if the Common Stock was not traded on such date), multiplied by a fraction with a numerator equal to the number of months during the Performance Cycle the Participant was employed by the Company or a subsidiary (rounded up to the nearest whole month) and a denominator of 36.

 

 

	
  

	
e.

	
If a Participant’s employment with the Company or a subsidiary terminates for any other reason, the Company shall determine the portion, if any, of the Performance Share Award that shall not be forfeited, and the form of payment (cash or shares or a combination) that the Participant shall receive.  That determination shall be made by the Committee in the case of any officer, and by the Chairman of the Board, President, Chief Executive Officer, or any Vice President, in the case of any non-officer employee.  Notwithstanding this Section 4, payment shall be made pursuant to Section 5.

 

 

5.           Payment Timing

 

 

	
  

	
a.

	
As soon as is administratively practicable after the determination of the Final Share Number, but not later than the last day of the calendar year following the Performance Cycle, the Company will (i) issue to each Participant a number of shares of the Common Stock equal to one-half of the Final Share Number, rounded down to the nearest whole share if such number is not a whole number, and (ii) pay the Participant an amount equal to the Fair Market Value of one-half of the Final Share Number of shares of Common Stock on the last day of the Performance Cycle, rounded up to the nearest whole share if such number is not a whole number.

 

  

  

  

 

	
  

	
b.

	
No dividends or dividend equivalents shall be paid on any Performance Shares or Senior Performance Shares.

 

 

6.           Reserved

 

 

7.           Miscellaneous

 

 

	
  

	
a.

	
By acceptance of the Performance Share Award, each Participant agrees that such Award is special compensation, and that any amount paid will not affect:

 

 

	
  

	
i.

	
the amount of any pension under any pension or retirement plan in which he or she participates as an employee of Olin,

 

 

ii.           the amount of coverage under any group life insurance plan in which he or she participates as an employee of Olin, or

 

 

iii.           the benefits under any other benefit plan of any kind heretofore or hereafter in effect, under which the availability or amount of benefits is related to compensation.

 

 

	
  

	
b.

	
The Company will withhold from the distribution of any cash pursuant to Performance Share Awards the amount necessary to satisfy the Participant’s federal, state and local withholding tax requirements.  It is the Company’s intention that all income tax liability on Performance Share Awards be deferred in accordance with the applicable requirements of Code Section 409A, until the Participant actually receives such shares or payment thereof.

 

	
  

	
c.

	
To the extent any provision of the Program (or any Performance Share Award) or action by the Board of Directors or Committee would subject any Participant to liability for interest or additional taxes under Code Section 409A, it will be deemed null and void, to the extent permitted by law and deemed advisable by the Committee.  It is intended that the Program (and any Performance Share Award) will comply with Code Section 409A, and the Program (and any Performance Share Award) shall be interpreted and construed on a basis consistent with such intent.  The Program (and any Performance Share Award) may be amended in any respect deemed necessary (including retroactively) by the Committee in order to preserve compliance with Code Section 409A.  The preceding shall not be construed as a guarantee of any particular tax effect for Program benefits or Performance Share Awards.  Except as specifically provided in the LTIP, a Participant (or beneficiary) is solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on the Participant (or beneficiary) in connection with any distributions to such Participant (or beneficiary) under the Program (including any taxes and penalties under Code Section 409A), and neither Olin nor any Affiliate shall have any obligation to indemnify or otherwise hold a Participant (or beneficiary) harmless from any or all of such taxes or penalties.

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