Document:

Exhibit 10.4.2

 

ONEBEACON’S 2011 MANAGEMENT INCENTIVE PLAN

 

Purpose

The Management Incentive Plan (MIP) is an integral part of the total compensation program for managers and certain senior key individual contributors. Its primary purpose is to focus attention on 2011 profitability goals and to reward eligible participants for the achievement of those goals.

 

Eligibility

The Plan is limited to senior staff who have a significant impact on OneBeacon’s operating results.

 

Target Awards

Target awards for all participants are expressed as a percent of salary.

 

Performance Measures

The corporate MIP pool will be established primarily based upon achievement of a 95% GAAP combined ratio for total OneBeacon operations. At a corporate combined ratio of 95%, the plan will fund an amount equal the sum of each participant’s potential award at his/her target bonus percentage. The OneBeacon Insurance Group, Ltd. Compensation Committee (the “Compensation Committee”) may adjust the size of the pool based on under- or over-achievement of the Company’s target combined ratio and other objectives at its sole discretion.

 

Individual Awards

Each business unit will be judged against a number of performance metrics including, where appropriate, a combined ratio target.  Generally these metrics will relate to the aggregate financial plan rolled up by line of business. If the financial metrics are achieved, in conjunction with other business metrics, the business may be awarded 100% of its indicated share of the corporate pool. Businesses failing to meet goals may or may not, at the discretion of the CEO, receive a reduced, partial allocation of the pool. Businesses exceeding objectives may receive greater than 100% of indicated allocation.  In no event will the sum of the performance-adjusted business unit pools be greater than the performance-adjusted Company pool as authorized by the Compensation Committee.

 

Within each business, it will be the prerogative of the business leader, with guidance from and after consultation with the CEO, to further allocate the business’ pool amount to the constituent branches, lines of business and individuals, based upon performance.

 

For corporate or administrative functions that support all or multiple businesses, participants will receive allocations from the corporate pool based upon attainment of their department and individual goals for 2011.

 

The salary used to determine the amount of the individual awards will be that in effect at the end of the plan year (12/31/11).

 

Plan Participation for New Hires

Employees hired during the plan year are eligible to participate in the MIP.  Awards will be pro-rated specifically based on date of hire unless other arrangements are agreed to at the time of the employment offer.

 

Payment of Awards

Unless payment is deferred in accordance with an election made pursuant to the OneBeacon Deferred Compensation Plan and any related procedures adopted by the Company, payment of any MIP award shall be

 

1

 

made by the Company no later than 2 1/2 months after the end of the Company’s fiscal year in which such MIP award is earned, but in any event not prior to the Compensation Committee’s certification of performance results following the end of the plan year.  In all cases, payment will not be made unless and until the Compensation Committee approves the overall corporate performance factor and performance-adjusted MIP pool and no payment will be made to the CEO, the Executive Team or any of the other executive officers without specific approval from the Committee.

 

Clawback Policy

Amounts paid pursuant to the MIP are subject to clawback by OneBeacon pursuant to the Clawback Policy adopted by the Board of Directors of OBIG on June 16, 2010.  The Clawback Policy provides that, in the event of a restatement of the financial statements of OBIG for failure to comply with the federal securities laws due to misconduct of a MIP participant, the Board of Directors of OBIG may require the participant to reimburse OneBeacon for all or a portion of his or her MIP award; provided, however, that in the event of fraud, the MIP participant shall reimburse OneBeacon for all of his or her MIP award.

 

Special Circumstances

The Compensation Committee may, in its sole discretion, also recognize extraordinary conditions or circumstances in determining payment levels.

 

In the event of termination prior to the payment of awards, no incentive payments will be made.  However, in the event of retirement or reduction in force at or after the end of the plan year, but before payment is made, MIP payments may be made if approved by the senior business leader. Payment shall be contingent upon the participant signing a OneBeacon Agreement and Release as consideration for all incentive payments. No participant who was terminated prior to the payment of awards due to a reduction in force may be considered for a MIP payment unless the participant also signed the Agreement and Release provided to the participant at the time of termination within the time period specified in the Agreement and Release. For purposes of the MIP, “retirement” shall mean termination of service with the Company, other than for cause, at any time after attaining age sixty (60) or termination of service under circumstances which the Committee deems equivalent to retirement. These exceptions will be made on a case by case basis. In the event of death or disability, the participant or beneficiary may be considered for a partial award payment if approved by the senior business leader.

 

The MIP is discretionary; in no way does eligibility in this plan imply an obligation of payment on the part of OneBeacon nor should it be construed as a promise of continued employment.

 

Effect on Benefit Plans

Amounts paid under the terms of the MIP will not be counted for purposes of determining compensation under any other employee benefit plan sponsored by OneBeacon.

 

Plan Continuation

Notwithstanding any of the aforementioned, the MIP may be amended or terminated, in whole or in part, at any time, by the Compensation Committee.

 

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  EXHIBIT 10(a) (xii)    
    

THIS AMENDING AGREEMENT is made the thirteenth day of December 2011 

BETWEEN

	(1)
	HARSCO FINANCE B.V. (a company incorporated in The Netherlands) and HARSCO
INVESTMENT LIMITED (registered number 03985379) (each a "Borrower" and together the  "Borrowers");

	(2)
	HARSCO CORPORATION (a corporation incorporated in the State of Delaware) (the  "Guarantor"); and

	(3)
	THE ROYAL BANK OF SCOTLAND plc acting as agent for NATIONAL WESTMINSTER
BANK Plc (the "Lender") 

WHEREAS

	(A)
	The
Lender, the Borrowers and the Guarantor entered into a US$50,000,000 (subsequently reduced to US$30,000,000) credit facility dated 15 December
2000, as amended by side letters dated 19 December 2001, 6 March 2003, 19 December 2003, 17 December 2004, 12 December 2005, 8 December 2006,
31 January 2008, 8 December 2008, 22 December 2008, 10 December 2009 and 20 December 2010 (the "Facility Agreement");
and

	(B)
	The
Lender, the Borrowers and the Guarantor have agreed to make certain amendments to the Facility Agreement. 

NOW IT IS AGREED as follows: 

AMENDMENTS

        With
effect from the Effective Date the following amendments shall be made to the Facility Agreement: 

	1.1
	In the definition of "Commitment" in Clause 1.1 of
the Facility Agreement reference to $30,000,000 shall be replaced with $25,000,000.

	1.2
	In the definition of "Final Maturity Date" in
Clause 1.1 of the Facility Agreement sub clause (a) shall be deleted in its entirety and replaced with:

	(a)
	in
relation to a Revolving Loan not converted into a Term Loan pursuant to Clause 7.2 (Term-Out), 10 December 2012 or, if extended
in accordance with Clause 7.3 (Extension), the date provided for in Clause 7.3 (Extension); or

 

	1.3
	The definition of "Margin" in Clause 1.1 of the
Facility Agreement shall be deleted in its entirety and replaced with: 

"Margin" means 1.00 per cent per annum.  

	1.4
	Clause 7.2(b)(i) of the Facility Agreement shall be deleted in its entirety and replaced
with:

	(i)
	the
date to which the Final Maturity Date for each Term Loan converted from a Revolving Loan is to be extended, which date shall be no later than
9 December 2013;

 

	1.5
	Clause 7.2(b)(iv) of the Facility Agreement shall be deleted in its entirety and replaced
with:

	(iv)
	the
Final Maturity Date for any further Term Loan requested, which date shall be no later than 9 December 2013.

 

	1.5
	Clause 12.1(a) of the Facility Agreement shall be deleted in its entirety and replaced
with:

	(a)
	The
Guarantor shall pay to the Lender a commitment fee in Dollars computed at the rate of 0.40 per cent per annum on the Available Commitment from
day to day during the Availability Period. 

	1.6
	Clause 12.2(a) of the Facility Agreement shall be deleted in its entirety and replaced
with:

	(a)
	The
Guarantor shall pay to the Lender a utilization fee in Dollars computed at the rate of .125 per cent per annum on the aggregate amount of the
Loans outstanding payable in respect of each day that the Base Currency Amount of all Losses exceeds 50 per cent of the Commitment on that day. 

EFFECTIVE DATE

        The
Effective Date shall be the date the Lender confirms it has received, in form and substance satisfactory to it: 

	2.1
	a copy, certified a true and up to date copy by the Secretary of Harsco Investment Limited of a resolution
of its board of directors approving the execution and delivery of this Amending Agreement and the performance of the obligations hereunder and authorising a person or persons (specified by name) on
behalf of it to sign and deliver this Amending Agreement and any other documents to be delivered by it pursuant hereto and to give all notices which may be required to be given on its behalf
hereunder;

	2.2
	a legal opinion of the General Counsel and Secretary of the Guarantor in a form acceptable to the Lender;

	2.3
	a legal opinion from the in house legal advisers to Harsco Finance B.V. in the Netherlands in a form
acceptable to the Lender;

	2.4
	a copy of this Amending Agreement signed by the Borrowers and the Guarantor.

	3.
	FEES

        The
Guarantor must pay to the Lender a fee of US$37,500.  

	4.
	REPRESENTATIONS AND WARRANTIES

        The
Repeating Representations and Warranties set out in Clause 19.20 of the Facility Agreement shall be deemed repeated by the Borrowers and the Guarantor on the date of this
Amending Agreement with reference to the facts and circumstances then existing.  

	5.
	MISCELLANEOUS

	5.1
	All capitalised terms not otherwise defined herein shall have the meaning ascribed to them in the Facility
Agreement.

	5.2
	All other terms and conditions of the Facility Agreement remain the same.

	5.3
	This Amending Agreement shall be governed by and construed in accordance with the laws of England and the
parties hereto submit to the jurisdiction of the English courts.

	5.4
	This Amending Agreement is a Finance Document. 

SIGNED FOR AND ON BEHALF OF:

THE LENDER

 

			
	By:	 	Ray Kinghorn
	Address:	 	250 Bishopsgate, London, EC2M 4AA, GB
	Attention:	 	 

 

 HARSCO FINANCE B.V.

 

			
	By:	 	 Han Jansen
	Address:	 	Harsco Corporate Office

350 Poplar Church Road

Camp Hill, PA 17011

United States
	Attention:	 	 

 

 HARSCO INVESTMENT LIMITED

 

			
	By:	 	 Han Jansen
	Address:	 	Harsco Corporate Office

350 Poplar Church Road

Camp Hill, PA 17011

United States
	Attention:	 	 

 

 HARSCO CORPORATION

 

			
	By:	 	S.J. Schnoor Senior Vice President, CFO and Treasurer
	Address:	 	350 Poplar Church Road

Camp Hill, PA 17011

United States
	Attention:	 	 

 

 

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EXHIBIT 10(a) (xii)

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