Document:

Form of Annual Incentive Pay Plan Award Letter

 Exhibit 10.9 

 

 

  
 [Date] 
 Dear «Nickname», 
 I am pleased to
announce that the Board of Directors has approved your participation in the [Year] Annual Incentive Plan. For [Year], we have established a Target Incentive Award Percentage for your position of «Target»% of your annual base salary.
Please take the time to read this letter in detail. 
 [Year] Annual Incentive Plan (AIP) 
 Our Annual Incentive Plan for key leaders and individual contributors is designed to align your efforts with our key business metrics, thus providing line
of sight from your job performance to its impact on our business results. Your inclusion in this program recognizes the value you bring to our organization and the important role that you will play in helping our company meet its financial and
strategic business objectives in [Year]. 
 Scorecards 
 Our AIP establishes metrics for Lubrizol’s annual consolidated and business segment performance. These metrics are intended to increase our profitability while focusing on sustained growth for the
long term and continued growth in shareholder value. 
 The Consolidated scorecard focuses on the following key business metrics: 
 [Year] AIP Consolidated Scorecard 
  

				
	 EPS
	  	        	% 
	 ROIC
	  	        	% 
	 Sustained Growth
	  	        	% 

 At the consolidated
level, EPS is the profitability metric, and it serves as the circuit breaker. This means that there may be no payout if the threshold EPS performance level is not achieved, regardless of performance relative to the other scorecard metrics. ROIC
(Return on Invested Capital) is a measure of the return on the capital invested in Lubrizol. The Sustained Growth metric is a measure of Lubrizol’s progress against its infrastructure, organizational development, organic and acquisition growth
objectives. 

 For participants in the business segments, the [Year] AIP focuses on the following key business metrics:

 [Year] AIP Segment Scorecard 
  

			
	 Unit Operating Income
	  	        %
	 ROGI
	  	        %
	 Sustained Growth
	  	        %

 The Unit Operating Income metric (UOI) is a measure of the segment’s profitability and has the largest single impact on the segment’s payout. The ROGI (Return on Gross Investment) metric is a
measure of each segment’s return on invested capital. Similar to the consolidated scorecard, the segment scorecard has a Sustained Growth metric, which is a measure of each segment’s progress against its infrastructure, organizational
development, organic and acquisition growth objectives. 
 All participants in the [Year] AIP are assigned a scorecard based on their specific
position in the company. For example, a corporate participant may be assigned 100% to the Consolidated scorecard, while a segment participant will have     % of their payout determined by the consolidated scorecard and
    % determined by their Segment or Business Unit scorecard. For those participants who are also assigned to a Segment or Business Unit scorecard, your targets will be communicated under separate cover by your business
unit leader. 
 Award Calculation & Plan Administration 
 Your target AIP award may be estimated by multiplying your Target Incentive Award Percentage by your base salary. Your actual incentive award percentage will be determined based on Lubrizol’s actual
performance as measured by the appropriate scorecards. The plan provides for a payout of between 50% and 200% of your Target Incentive Award Percentage, depending on actual performance. 
 However, any payments under the [Year] AIP are subject to adjustment based on your individual performance and the discretion of the Organization & Compensation Committee of the Board of
Directors. The terms of all employees’ compensation and bonus plans are determined and revisited at least annually, and are subject to change. This letter applies to the [Year] AIP only, and no promises or representations (oral or written) can
enlarge or modify your entitlement to an award under the terms of the [Year] AIP, or can guarantee your inclusion in future AIPs, if any. 
 The
following web address can be used to access the page for your specific plan information after April 1, [Year]:                     .
Please save this web address as a “favorite” so that you can periodically check your plan’s performance. 
 If you have questions
or need additional information, please contact your compensation representative. 
 Sincerely, 
 The Lubrizol Corporation 
 29400 Lakeland
Boulevard, Wickliffe, Ohio 44092-2298 
 www.lubrizol.com2005 Officers' Supplemental Retirement Plan, as amended and restated

 Exhibit 10.10 
 THE LUBRIZOL CORPORATION 
 2005 OFFICERS’ SUPPLEMENTAL

 RETIREMENT PLAN 
 (As Amended and Restated as of December 15, 2009) 
 The Lubrizol Corporation
hereby establishes, effective as of January 1, 2005 as amended, The Lubrizol Corporation 2005 Officers’ Supplemental Retirement Plan (the “Plan”) for the purpose of providing deferred compensation benefits to a select group of
management or highly compensated employees. 
 Section 1. Definitions. For the purposes hereof, the following words
and phrases shall have the meanings indicated, unless a different meaning is plainly required by the context: 
 (a) Beneficiary. The term “Beneficiary” shall mean a person who is designated by a Participant to receive benefits payable upon his death pursuant to the provisions of Section 6. 
 (b) Code. The term “Code” shall mean the Internal Revenue Code as amended from time to time. Reference to a
section of the Code shall include such section and any comparable section or sections of any future legislation that amends, supplements, or supersedes such section. 
 (c) Company. The term “Company” shall mean The Lubrizol Corporation, an Ohio corporation, its corporate
successors and the surviving corporation resulting from any merger of The Lubrizol Corporation with any other corporation or corporations. 
 (d) Credited Service. The term “Credited Service” shall mean a Participant’s years of service with the Company equal to the number of full and fractional years of service (to the
nearest twelfth of a year) beginning on the date the Participant first performed an hour of service for the Company and ending on the date he is no longer employed by the Company. 
 (e) Final Average Pay. The term “Final Average Pay” shall mean the aggregated amount of Basic Compensation
(as that term is defined in the Lubrizol Pension Plan modified to add cash (but not shares), if any, which the Participant has elected to defer under The Lubrizol Corporation 2005 Deferred Compensation Plan for Officers or under The Lubrizol
Corporation 2005 Executive Council Deferred Compensation Plan or, effective January 1, 2006, under The Lubrizol Corporation Senior Management Deferred Compensation Plan, received by the Participant during the three consecutive calendar years
during which such Participant received the greatest aggregate amount of Basic Compensation, as defined above, within the most recent ten years of employment, divided by 36. 
 (f) Lubrizol Pension Plan. The term “Lubrizol Pension Plan” shall mean The Lubrizol Corporation Pension Plan
as the same shall be in effect on the date of a Participant’s retirement, death, or other termination of employment. 
 (g) Normal Retirement Date. The term “Normal Retirement Date” shall mean the first day of the month following the date on which a Participant attains age sixty-five (65). 

 (h) Participant. The term “Participant” shall mean the
Chief Executive Officer, the Chief Operating Officer and any other officer of the Company who is designated by the Board of Directors of the Company and the Chief Executive Officer to participate in the Plan, and who has not waived participation in
the Plan. 
 (i) Plan. The term “Plan” shall mean a deferred compensation plan set forth herein,
together with all amendments hereto, which Plan shall be called “The Lubrizol Corporation 2005 Officers’ Supplemental Retirement Plan.” 
 (j) Change in Control. The term “Change in Control” shall mean the occurrence of any of the following events: 
 (i) The date that any one person, or more than one person acting as a group, acquires ownership of stock of the Company that,
together with the stock held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the stock of the Company. 
 (ii) The date any person, or more than one person acting as a group, acquires (or has acquired during the 12-month period
ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company possessing 30% or more of the total voting power of the stock of the Company. 
 (iii) The date a majority of members of the Company’s board of directors is replaced during any 12-month period by
directors whose appointment or election is not endorsed by a majority of the members of the Company’s board of directors before the date of the appointment or election. 
 (iv) The date that any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month
period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of the Company
immediately before the acquisition or acquisitions. 
 Section 2. Vesting. Each Participant shall become 100 percent
vested in his supplemental pension benefit under this Plan upon the earliest of the following events: his completing five years of service, his reaching age 55; his death; his becoming disabled and receiving benefits pursuant to the Company’s
long-term disability plan; or a Change in Control. 
 Section 3. Normal Retirement Benefit. Each Participant who
separates from service with the Company on or after his Normal Retirement Date shall receive, subject to the provisions of Sections 6 and 7, a monthly supplemental retirement benefit which shall be equal to two percent (2%) of his Final Average
Pay multiplied by his Credited Service (up to 30 years) offset by the following amounts: 
 (a) Benefits payable to the
Participant under the Lubrizol Pension Plan; 
 (b) Benefits payable to the Participant under The Lubrizol Corporation
Employees’ Profit Sharing and Savings Plan, excluding benefits attributable to Matching Contributions, CODA Contributions, Supplemental Contributions, Rollover Contributions, Transferred Contributions, Catch-up Contributions or Other Company
Contributions, as defined thereunder; 
  

 2 

 (c) Benefits payable to the Participant under The Lubrizol Corporation Age-Weighted Defined
Contribution Plan; 
 (d) Benefits payable to the Participant under The Lubrizol Corporation 2005 Excess Defined Contribution
Plan; 
 (e) Benefits payable to the Participant under The Lubrizol Corporation 2005 Excess Defined Benefit Plan; 
 (f) The Participant’s Social Security benefits; 
 (g) Any other employer-provided benefits not specifically excluded herein which are payable to the Participant pursuant to any qualified or nonqualified retirement plan maintained by the Company.

 Such offsets shall be determined using the actuarial factors provided in the Lubrizol Pension Plan. 
 Section 4. Early Retirement Eligibility and Determination of Benefit. Each Participant who separates from service with the
Company at or after age 55, but prior to his Normal Retirement Date, shall receive a percentage of his vested supplemental retirement benefit determined under Section 3, in accordance with the early retirement schedule provided in the Lubrizol
Pension Plan at the time and in the form specified under Section 6. 
 Section 5. Payment to Participant.

 (a) Each Participant who separates from service with the Company and its related corporations shall receive
payment of his supplemental pension benefit in the standard form of payment of a single lump-sum payment payable within 60 days following the later of six months following the separation from service or the beginning of the calendar year following
the calendar year in which Participant separated from service. 
 (b) Payments hereunder shall be less any
applicable withholding taxes. The form of payment described shall be calculated using the same actuarial factors and interest rates used under The Lubrizol Corporation Pension Plan (or its successor) as in effect on the date of separation from
service. 
 Section 6. Payment in the Event of Death Prior to Commencement of Distribution. If a Participant dies
prior to commencement of benefits under the Plan, his surviving spouse, if any, shall be eligible for a survivor benefit which is equal to one-half of the reduced monthly benefit the Participant would have received under the Plan if the Participant
was 100 percent vested in his accrued supplemental retirement benefit, had terminated employment on the day before his death and had elected to receive his benefit hereunder in the form of a 50 percent joint and survivor annuity. In making the
determinations and reductions required in this Section 6, the Company shall apply the assumptions then in use under the Lubrizol Pension Plan. For purposes hereof, a surviving spouse shall only be eligible for a benefit under this
Section 6, if such spouse had been married to the deceased Participant for at least one year as of the date of the Participant’s death. Benefits hereunder shall commence within 60 days after the death of the Participant and shall be paid
monthly in substantially equal payments for the life of the surviving spouse. 
  

 3 

 Section 7. Actuarial Factors. All actuarial assumptions and factors used in this
Plan shall be the same as those used in the Lubrizol Pension Plan. 
 Section 8. Funding. The obligation of the
Company to pay benefits provided hereunder shall be unfunded and unsecured and such benefits shall be paid by the Company out of its general funds. In order to provide a source of payment for its obligations under the Plan, the Company may cause a
trust fund to be maintained and/or arrange for insurance contracts. Subject to the provisions of the trust agreement governing any such trust fund or the insurance contract, the obligation of the Company under the Plan to provide a Participant with
a benefit shall nonetheless constitute the unsecured promise of the Company to make payments as provided herein, and no person shall have any interest in, or a lien or prior claim upon, any property of the Company. 
 Section 9. Plan Administrator. The Company shall be the plan administrator of the Plan. The plan administrator shall perform all
ministerial functions with respect to the Plan. Further, the plan administrator shall have full power and authority to interpret and construe the Plan and shall determine all questions arising in the administration, interpretation, and application
of the Plan. Any such determination shall be conclusive and binding on all persons. The plan administrator shall employ such advisors or agents as it may deem necessary or advisable to assist it in carrying out its duties hereunder. 
 Section 10. Not a Contract of Continuing Employment. Nothing herein contained shall be construed as a commitment or agreement on
the part of the Participant to continue his employment with the Company, and nothing herein contained shall be construed as a commitment or agreement on the part of the Company to continue the employment or the annual rate of compensation of the
Participant for any period, and the Participant shall remain subject to discharge to the same extent as if this Plan had never been put into effect. 
 Section 11. Right of Amendment and Termination. The Company reserves the right to amend or terminate the Plan in whole or in part at any time and to suspend operation of the Plan, in whole or
in part, at any time, by resolution or written action of its Board of Directors or by action of a committee to which such authority has been delegated by the Board of Directors; provided, however, that no amendment shall result in the forfeiture or
reduction of the interest of any Participant or person claiming under or through any one or more of them pursuant to the Plan. Any amendment of the Plan shall be in writing and signed by authorized individuals. 
 Section 12. Termination and Distribution of Accrued Benefits. The Plan may be terminated at any time by the Company, and in that
event the amount of the accrued benefits as of the date of such termination shall remain an obligation of the Company and shall be payable as if the Plan had not been terminated. 
 Section 13. Construction. Where necessary or appropriate to the meaning hereof, the singular shall be deemed to include the
plural, the plural to include the singular, the masculine to include the feminine, and the feminine to include the masculine. 
 Section 14. Severability. In the event any provision of the Plan is deemed invalid, such provision shall be deemed to be severed from the Plan, and the remainder of the Plan shall continue to be in full force and effect.

  

 4 

 Section 15. Governing Law. Except as otherwise provided, the provisions of the
Plan shall be construed and enforced in accordance with the laws of the State of Ohio. 
  

 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}]]