SEC Contract Filing

Filing Date: 2020-03-03

Document Content:
<DOCUMENT>
<TYPE>EX-10.107
<SEQUENCE>2
<FILENAME>exhibit10107.htm
<DESCRIPTION>HEXION 2020 INCENTIVE COMP PLAN
<TEXT>
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<div><a name="s2A2545A54A2208FB31397CD7E37E1985"></a></div><div></div><div><br></div><div style="line-height:120%;padding-top:12px;text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Exhibit 10.107</font></div><div style="line-height:120%;text-align:right;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">HEXION HOLDINGS CORPORATION</font></div><div style="line-height:120%;text-align:center;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;">2020 INCENTIVE COMPENSATION PLAN (the &#8220;Plan&#8221;)</font></div><div style="line-height:120%;text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;"><br></font></div><div style="line-height:120%;padding-bottom:8px;text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;text-decoration:underline;">Purpose of the Plan</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">The Plan is sponsored by Hexion Holdings Corporation (&#8220;</font><font style="font-family:inherit;font-size:9pt;text-decoration:underline;">Hexion Holdings</font><font style="font-family:inherit;font-size:9pt;">&#8221;) to reward associates of Hexion Inc. (&#8220;</font><font style="font-family:inherit;font-size:9pt;text-decoration:underline;">Hexion</font><font style="font-family:inherit;font-size:9pt;">&#8221;) and its subsidiaries for delivering increased value by profitably growing the business and controlling costs. The Plan is designed to link rewards with critical financial metrics for the purpose of promoting actions which are the most beneficial to Hexion&#8217;s short-term and long-term value creation.</font></div><div style="line-height:120%;padding-bottom:8px;text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;text-decoration:underline;">Administration</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">The Plan shall be administered by and awards under the Plan shall be authorized by the Compensation Committee (the &#8220;</font><font style="font-family:inherit;font-size:9pt;text-decoration:underline;">Committee</font><font style="font-family:inherit;font-size:9pt;">&#8221;) of Hexion Holdings&#8217; Board of Directors (the &#8220;</font><font style="font-family:inherit;font-size:9pt;text-decoration:underline;">Board</font><font style="font-family:inherit;font-size:9pt;">&#8221;). The Committee may delegate some of its authority under the Plan to management or as is otherwise stated in the Plan. The Committee has the right to amend or terminate this Plan at any time.</font></div><div style="line-height:120%;padding-bottom:8px;text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;text-decoration:underline;">Plan Year</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">January 1, 2020 - December 31, 2020</font></div><div style="line-height:120%;padding-bottom:8px;text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;text-decoration:underline;">Eligibility for Participation</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">Participation is based on each associate's scope of responsibility and contribution to the organization. Each participant has a plan assignment of Corporate, Corporate-BU Blended (Global Hexion plus Business Unit) or Business Unit.</font></div><div style="line-height:120%;padding-bottom:8px;text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-weight:bold;text-decoration:underline;">Plan Performance Measures</font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">The Plan performance measures are based on three performance criteria: EBITDA, EH&amp;S and Cash Flow.</font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;font-style:italic;font-weight:bold;">EBITDA</font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">EBITDA</font><font style="font-family:inherit;font-size:9pt;font-weight:bold;">&#32;</font><font style="font-family:inherit;font-size:9pt;">refers to Earnings before Interest, Taxes, Depreciation and Amortization, adjusted to exclude (i) certain non-cash items, (ii) certain other income and expenses and (iii) discontinued operations. EBITDA is a critical measure on which the investment community and future shareholders will evaluate Hexion's performance. As a result, participants should be focused and incented to manage the business to achieve EBITDA targets.</font></div><div style="line-height:120%;padding-bottom:12px;text-align:justify;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">EBITDA will be measured for Global Hexio