Document:

Offer Letter Agreement - Mike Modak

 Exhibit 10.23 

 

 

 6/16/2008 Revised 
 Mike Modak 
 21 Laurel Mountain Way 
 Califon, NJ 07830 
 Dear Mike: 
 We are pleased to offer you the position of Chief Commercial Officer at Momentive Performance Materials located in Albany, NY. For this position, you are offered a gross annual salary of $400,000 (this quoted pay rate is for convenience
and is not intended as a guarantee of employment for any fixed period). You will also be eligible for Momentive’s bonus plan in which you will have a target bonus of 60% of your annual salary. For 2008, your bonus will be $180,000 unless 1)
you voluntarily resign or are terminated for cause prior to the April ’09 payment date in which case you will not receive a bonus or 2) your employment is terminated for other reasons in which case your bonus will be pro-rated for the period
1/1/08 through your last day worked. 
 Your offer additionally includes a sign-on bonus of $400,000 (gross) which will be paid as follows: the
first 1/3 upon your commencement of work for Momentive, the second 1/3 at 12 months and the third 1/3 at 24 months. The second and third payments will be made unless you have voluntarily resigned or are terminated for cause. You will be eligible for
4 weeks annual vacation for the period up to your tenth anniversary, at which time you will assume the standard Momentive Vacation allowance in effect at that time. As an employee, you will be eligible to participate in Momentive’s
comprehensive package of benefit plans effective upon your start date. This offer also includes severance benefits in the case of termination without cause which would entitle you to stay on the Company’s payroll at your salary then in effect
including benefits (health, life insurance, etc.) for up to one year or until you begin full-time employment with another employer, whichever event occurs first. These severance benefits would be contingent on your execution of a separation
agreement and general release of claims against the Company. 
 To assist with your relocation to the Albany, NY area, you will be eligible for
Momentive’s U.S. Homeowners Relocation Benefits for new employees. Details of this relocation program are outlined in the attached Summary of Benefits. You will be contacted by a relocation consultant from Cartus, our relocation provider to
assist you with your move. 
 This offer is contingent upon certain conditions described in the enclosed “ACKNOWLEDGMENT – CONDITIONS
OF EMPLOYMENT,” which you need to sign and return according to the instructions on the form. One of the requirements is a pre-placement drug-screening test. Our Medical Center will contact you to schedule a drug screen. 
 We are looking forward to you joining our organization and believe that this position will provide you with the kind of challenge and career growth you are
seeking. 
 If you have any questions, please contact me at 203-761-1925. 
  

	
	Sincerely,
	
	/s/ Edward Stratton
	 Edward Stratton
 Global
Human Resources Leader

  

			
	260 Hudson River Road Waterford, NY 12188	  	T 518-233-5028

 

 

 

 

 ACKNOWLEDGMENT - CONDITIONS OF EMPLOYMENT 
 Instructions: please read the contents of this ACKNOWLEDGMENT and the documents it references carefully. Your offer of employment is contingent upon
your acceptance of the conditions of employment described below. If you accept those conditions, please sign in the space provided at the bottom of this form and fax it to Ed Stratton at 1-203-761-1991. 
  

	 	1.	I acknowledge that the offer of employment made to me is contingent upon meeting all employment requirements, including but not limited to the following:

  

	 	•	 	 my successful completion of a pre-employment background investigation, including my signature on and return of the background investigation
Acknowledgment and Authorization form prior to start of employment; 

  

	 	•	 	 the successful completion of a pre-placement medical evaluation based on the requirements to perform the position (as applicable), including a drug
screen; 

  

	 	•	 	 proof of legal authorization to work in the United States. In that regard, within three business days of reporting to work, I will produce certain
documents that will establish my identity and work eligibility. Such documents are listed in the attached, “List of Acceptable Documents”; 

  

	 	•	 	 my completion of the enclosed Employment Application; 

  

	 	2.	I acknowledge that the statement of an annual salary in the offer letter is for convenience of computation only and does not imply a guarantee of employment for any
specific period, and that as indicated in the Company’s employment application, all employment with the Company is at will. 

  

	 	3.	I understand and agree that in the event I use any vacation days that are more than the amount to which I am entitled, the Company will seek reimbursement through
payroll deductions or other means. 

  

	 	4.	I acknowledge that should my employment terminate before my tenth anniversary, I will not be entitled to payment of any supplementary vacation time, but will be paid my
accrued, but unused vacation according to Momentive’s standard vacation allowance. 

  

	 	5.	Upon employment you will also be required to understand and acknowledge that you will agree to comply with all Momentive Performance Materials human resources and
compliance requirements and policies. 

  

	 	6.	I agree to and understand all elements of the Momentive Relocation Benefits program which has been offered to me and which is outlined in the attached Benefit Policy
Summary. I also agree to repay 100% of all relocation expenses and sign-on bonus if I resign or if I am terminated for cause within 24 months of hire date. 

  

	 	7.	I accept the conditions of employment described above: 

 Signature: /s/ Mike Modak     Print Name: Mike Modak     Date: 6-17-2008 
  

			
	260 Hudson River Road Waterford, NY 12188	  	T 518-233-5028Form of Management Equity Investment and Incentive Acknowledgement

 Exhibit 10.24 
 Management Equity Investment and Incentive Acknowledgement 
 I
understand that, in connection with my new position at Momentive Performance Materials Inc. (the “Company”), an affiliate of Apollo Management VI, LP (“Apollo”), I have been given an opportunity to purchase up to
$           worth of shares (collectively, the “Shares”) of common stock (the “Common Stock”) of the Company’s parent, Momentive Performance Materials
Holdings Inc. (the “Parent”) at a per share price (the “Purchase Price”) equal to the greater of (i) $100 per share or (ii) the fair market value as determined by the Board of Directors of the Parent (the
“Board”) under the Parent’s 2007 Long-Term Incentive Plan (such purchase opportunity is collectively referred to herein as the “Investment”) and, if I elect to make an Investment, I will be granted options (the
“Options”), which will give me the right to purchase approximately            times the number of Shares I purchase as part of my Investment and shall be subject to vesting as
determined by the Board. I understand that the exercise price of the Options shall be equal to the Purchase Price. I understand that the dollar amount of Shares I am committing to purchase is set forth below. I further understand that the purchase
and sale of the Shares shall take place no later than      days after the date I am notified of the per share purchase price of the Common Stock and the per share exercise price of the Options. 
 I acknowledge and understand that my Investment and grant of Options are subject to Board approval and my execution of a subscription agreement, an option
grant agreement and an adoption agreement substantially in the form previously delivered to me, pursuant to which I will become subject to the terms and conditions of the Parent’s securityholders agreement. I further understand and acknowledge
that, as part of the Investment and my grant of Options, I will be subject to certain noncompetition and nonsolicitation covenants included in the securityholders agreement, which will apply while I am employed by the Company and for twelve months
after termination of my employment with the Company. 
 Investment Amount:
                                     
  

			
	By:	 	 
		 	Name:
		
	Date:	 	 

  

			
	Acknowledged and Agreed:
	
	Momentive Performance Materials Holdings Inc.
		
	By:	 	 
		 	Name:
		
	Date:Form of Global Amendment to Nonqualified Stock Option Agreement

 Exhibit 10.25 
 FORM OF GLOBAL AMENDMENT TO 
 NONQUALIFIED STOCK
OPTION AGREEMENT 
 WHEREAS, each of the individuals set forth on Exhibit A hereto (the “Optionees”) is
party to a non-qualified stock option agreement with Momentive Performance Materials Holdings Inc., a Delaware corporation (the “Company”) (each such agreement, an “Option Agreement”); and 
 WHEREAS, pursuant to the Option Agreements, the Optionees were granted that number of Tranche B Options and Tranche C Options (each,
as defined in the Option Agreements) set forth on Exhibit A hereto; 
 WHEREAS, the Compensation Committee of the Board
of Directors of the Company (the “Committee”) has determined that the vesting terms of such Tranche B Options and the Tranche C Options no longer serve their intended retentive and incentive purposes; and 
 WHEREAS, pursuant to Section 13 of each of the Option Agreements and Article XIII of the Plan (as defined in the Option
Agreements), the Company may modify the terms of Option Agreements without the consent of the applicable Optionee where such modification does not materially impair the rights of the Optionee; 
 WHEREAS, the Committee believes it is in the best interests of the Company to amend the Tranche B Options and the Tranche C Options
to modify the vesting terms thereof by providing an alternative vesting goal for such Tranche B Options and Tranche C Options, which modification does not impair the rights of the Optionees; and 
 NOW, THEREFORE, effective as of
                , the Option Agreements are hereby amended as follows: 
 1. Section 4(b) of each of the Option Agreements is hereby deleted in its entirety and replaced with the following: 
 (b) Tranche B Options. All of the Tranche B Options shall become Vested Options and shall become exercisable on the earlier of (i) the date that the Investor IRR is equal to or exceeds 20% and
(ii) the Investor’s achievement of a minimum cash-on-cash return of 1.75 times the Investor Investment (the targets in subclauses (i) and (ii), the “Tranche B Targets”). 
 2. Section 4(c) of each of the Option Agreements is hereby deleted in its entirety and replaced with the following: 
 (c) Tranche C Options. All of the Tranche C Options shall become Vested Options and shall become exercisable on the earlier of
(i) the date that the Investor IRR is equal to or exceeds 25% and (ii) the Investor’s achievement of a minimum cash-on-cash return of 2.25 times the Investor Investment (the targets in subclauses (i) and (ii), the
“Tranche C Targets”). 

 3. The flush paragraph following Section 4(c) of each of the Option Agreements is
hereby deleted in its entirety and replaced with the following: 
 All decisions by the Committee with respect to any
calculations pursuant to this Section 4 (absent manifest error), including the Investor’s achievement of the applicable cash-on-cash return and the date such cash-on-cash return is equal to or exceeds the applicable targets, shall
be final and binding on the Optionee. Except as otherwise provided herein all unvested Options will immediately terminate upon a Termination of Relationship. 
 4. Except as expressly amended by this Amendment, all terms and conditions of the Agreement remain in full force and effect and are unmodified hereby. 
 IN WITNESS WHEREOF, the Company has caused these presents to be executed in its name on its behalf, all as of
                . 
  

			
	MOMENTIVE PERFORMANCE MATERIALS HOLDINGS INC.
	
	 
	By	 	
	Name:	 	
	Title:	 	

  

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