UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-K/A
Amendment No. 1
x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2013
OR
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number: 1-3247
CORNING INCORPORATED
(Exact name of registrant as specified in its charter)
NEW YORK | 16-0393470 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
ONE RIVERFRONT PLAZA, CORNING, NY | 14831 | |
(Address of principal executive offices) | (Zip Code) |
607-974-9000
(Registrants telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Name of each exchange on which registered | |
Common Stock, $0.50 par value per share | New York Stock Exchange |
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No ¨
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ¨ No x
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files.) Yes x No ¨
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment of this Form 10-K. ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.
Large accelerated filer | x | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x
As of June 28, 2013, the aggregate market value of the registrants common stock held by non-affiliates of the registrant was $21 billion based on the $14.23 price as reported on the New York Stock Exchange.
There were 1,392,124,762 shares of Cornings common stock issued and outstanding as of January 31, 2014.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Registrants Definitive Proxy Statement dated March 13, 2014, and filed for the Registrants 2014 Annual Meeting of Shareholders are incorporated into Part III, as specifically set forth in Part III.
EXPLANATORY NOTE
We are filing this Amendment No. 1 on Form 10-K/A (this Amendment) to our Annual Report on Form 10-K for the year ended December 31, 2013 (the Original Annual Report) for the sole purpose of filing Exhibits 10.70 (Form of Officer Severance Agreement), 10.71 (Form of Officer Change in Control Agreement) and 21 (Subsidiaries of the Registrant) which, due to a financial printer error, were inadvertently omitted from our Original Annual Report filed on February 10, 2014. In addition, as required by Rule 12b-15 under the Securities Exchange Act of 1934, as amended, new certifications by our principal executive officer and principal financial officer are filed as exhibits hereto.
Except as described above, this Amendment does not amend, update or change the financial statements or any other disclosures in the Original Annual Report and does not reflect events occurring after the filing of the Original Annual Report.
SIGNATURES
Pursuant to the requirements of Sections 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Corning Incorporated
By | /s/ R. Tony Tripeny |
Senior Vice President Corporate Controller | March 21, 2014 | |||
(R. Tony Tripeny) | (Principal Accounting Officer) |
EXHIBIT INDEX
10.70 | Form of Officer Severance Agreement dated as of January 1, 2014 between Corning Incorporated and each of the following individuals: Lewis A. Steverson. | |
10.71 | Form of Officer Change in Control Agreement dated as of January 1, 2014 between Corning Incorporated and each of the following individuals: Lewis A. Steverson. | |
21 | Subsidiaries of the Registrant at December 31, 2013. | |
31.1 | Certification Pursuant to Rule 13a-15(e) and 15d-15(e), As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification Pursuant to Rule 13a-15(e) and 15d-15(e), As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
Exhibit 10.70
CORNING INCORPORATED
FORM OF OFFICER SEVERANCE AGREEMENT
This Agreement, dated as of January 1, 2014 (the Effective Date), is entered into between Corning Incorporated, a corporation organized under the laws of the State of New York (Corning or the Company), and (the Executive).
WHEREAS, the Board of Directors of the Company (the Board) recognizes that the possibility of an Involuntary Termination (as hereinafter defined) exists and that the occurrence of an Involuntary Termination can result in significant uncertainties inherent in such a situation; and
WHEREAS, the Company has had both informal and formal practices in this area in the past, and the Board has determined that it is in the best interest of the Company and its stockholders to have clarity over the obligations of the Company to the Executive as a result of an Involuntary Termination.
NOW, THEREFORE, in consideration of the respective agreements of the parties contained herein, it is agreed as follows:
1. TERM OF AGREEMENT. This Agreement shall commence as of the Effective Date and shall continue in effect until the December 31st following the Effective Date. The Agreement shall thereafter annually be automatically extended until December 31 of the next following year unless either the Company but only if the Company acts with respect to all officers of the same class as the Executive with whom it has a substantially similar Agreement or the Executive shall have given written notice to the other that the term of this Agreement shall not be so extended by October 1 of a year; and provided this Agreement shall end if the Executive leaves the employ of the Company for any reason or if the Executive ceases to be an officer of Corning Incorporated or Corning Cable Systems or a shadow officer if based outside the United States. In the event that Executive continues as an active employee of the Company but ceases to be an officer or shadow officer of Corning Incorporated or Corning Cable Systems, this Agreement shall become null and void, and Executive shall then be eligible for Cornings standard severance policy provided to other salaried employees upon the expiration of this Agreement.
2. DEFINITIONS.
a. ACCRUED COMPENSATION. For purposes of this Agreement, Accrued Compensation shall mean the following amounts earned or accrued through the Termination Date (as hereinafter defined) but not paid as of the Termination Date: (i) base salary, (ii) reimbursement for reasonable and necessary expenses incurred by the Executive on behalf of the Company during the period ending on the Termination Date, (iii) vacation pay, and (iv) the Executives bonus payable for the year in which the Termination Date occurs under the annual Performance Incentive Plan and GoalSharing plans (collectively, the Bonus Plans) based on actual performance, pro-rated by multiplying such bonuses by a fraction whose numerator is the number of months the Executive worked in the calendar year in which the Termination Date occurred (counting those months up to the month end that is closest to the Termination Date) and whose denominator is twelve.
b. BASE AMOUNT. For purposes of this Agreement, Base Amount shall mean the Executives annual base salary at the rate in effect on the Termination Date, including all amounts of base salary that are deferred under the employee benefit plans of the Company or any other agreement or arrangement.
c. BONUS AMOUNT. For purposes of this Agreement, in the event that the Executive is not the Companys Chief Executive Officer or Chief Operating Officer and the Executives base salary at all times in the calendar year of the Termination Date is less than $599,000, Bonus Amount shall mean the Executives Base Amount times the sum of a) Executives target percentage in effect on the Termination Date under the Companys Performance Incentive Plan, and b) 5% (in lieu of GoalSharing award).
d. CAUSE. For purposes of this Agreement, Cause shall mean the Executives:
(i) Conviction of or pleading guilty or no contest (or its equivalent) to a felony or conviction of or pleading guilty or no contest (or its equivalent) to a misdemeanor involving moral turpitude (from which no further appeals have been or can be taken);
(ii) a material breach of Cornings Code of Conduct;
(iii) gross abdication of his duties as an employee and officer of the Company (other than due to the Executives illness or personal family problems), which conduct remains uncured by the Executive for a period of at least 30 days following written notice thereof to the Executive by the Company, in each case as determined in good faith by the Company; or
(iv) misappropriation of Company assets, personal dishonesty or business conducts which causes material or potentially material financial or reputational harm for the Company. For purposes of this Section 2(d), no act or failure to act on the Executives part shall be deemed to be a termination for Cause if done, or omitted to be done, in good faith, and with the reasonable belief that the action or omission was in the best interests of the Company.
e. INVOLUNTARY TERMINATION. For purposes of this Agreement, an Involuntary Termination shall mean that Executives employment with the Company is severed by the Company for reasons other than Cause. For purposes of clarification, an Involuntary Termination does not include the following:
(i) a voluntary termination of employment (or resignation) by the Executive for any reason;
(ii) the voluntary retirement of the Executive at or after age 55 (or retirement at the eligible age under the terms of a Selective Voluntary Early Retirement Program (SVERP) offered by the Company);
(iii) a termination of employment as a result of Disability or death of the Executive;
(iv) Executives termination of employment as a result of a sale of all or a part of its business (or otherwise where it merges, divides, consolidates or reorganizes) and Executive has the opportunity to continue employment with the buyer (or one of the resulting entities in any merger, division, consolidation or reorganization) with comparable total compensation regardless of whether the job or terms and conditions of employment are the same as applicable during the Executives prior employment with Corning and regardless of whether the individual accepts or rejects such employment opportunity; or
(v) a termination of employment in connection with a potential or following an actual Change In Control of the Company to the extent Executive has a separate Change In Control agreement with the Company which separately addresses that situation.
f. COMPANY. For purposes of this Agreement, Company shall include Cornings Successors and Assigns (as hereinafter defined).
g. DISABILITY. For purposes of this Agreement, Disability shall mean a physical or mental infirmity which the Company reasonably believes is expected to impair the Executives ability to substantially perform the Executives duties with the Company for a period of: (i) one hundred eighty (180) consecutive days; or (ii) 180 days during any twelve (12) month period, and the Executive has not returned to full time employment prior to the Termination Date as stated in the Notice of Termination.
h. NOTICE OF TERMINATION. For purposes of this Agreement, Notice of Termination shall mean a written notice of termination of the Executives employment from the Company, which notice indicates the date of the Executives Involuntary Termination which shall be the date of the Executives involuntary separation from service with the Company within the meaning of Code Section 409A (the Termination Date), the benefits to be received by the Executive and any applicable terms and conditions (which shall include a release of all claims and liabilities arising out of Executives employment or termination of employment, a non-compete agreement for two (2) years, a non-solicit agreement and an ongoing requirement to protect the Companys confidential information (such release, non-compete agreement, non-solicit agreement and confidentiality agreement are collectively referred to as the Release)). Notwithstanding any provision in this Agreement to the contrary, Executive shall not be entitled to the benefits set forth in subsections 3(a)(ii), (iv), (vi) and (vii) and the pro-rated bonus in subsection 3(a)(i) unless the Executive executes the Release, and the Release becomes non-revocable within sixty (60) days after the Termination Date. If the Executive fails to execute the Release and the Release does not become non-revocable within the time period specified in the preceding sentence, the Executive shall forfeit all rights under this Agreement.
i. SUCCESSORS AND ASSIGNS. For purposes of this Agreement, Successors and Assigns shall mean a corporation or other entity acquiring all or substantially all of the assets and business of the Company whether by operation of law or otherwise.
3. SEVERANCE BENEFITS
a. If, during the term of this Agreement, an Involuntary Termination occurs, the Executive shall be entitled to the following compensation and benefits (provided that the amounts described in subsections 3(a)(ii), (iv), (vi), (vii) and the pro-rated bonus under the Bonus Plans in subsection 3(a)(i) are subject to the Executives execution of the Release and the Release becoming non-revocable within sixty (60) days after the Termination Date):
(i) The Company shall pay Executive all Accrued Compensation;
(ii) Executive shall receive an amount in accordance with the following:
| If the Executive is not the Companys Chief Executive Officer or Chief Operating Officer and the Executives base salary at all times in the calendar year of the Termination Date is less than $ , the Company shall pay Executive two (2) times the sum of (A) the Base Amount, and (B) the Bonus Amount; |
| If the Executive is the Companys Chief Executive Officer, the Company shall pay Executive six (6) times the Base Amount; |
| If the Executive is the Companys Chief Operating Officer, the Company shall pay Executive four (4) times the Base Amount; |
| If the Executive is not the Companys Chief Executive Officer or Chief Operating Officer and the Executives base salary at any time in the calendar year of the Termination Date is equal to or greater than $599,000, the Company shall pay Executive three-and-a-half (3.5) times the Base Amount. |
(iii) Executive shall receive all vested benefits earned under any Company-sponsored retirement or benefit plan in accordance with the terms of those plans;
(iv) Commencing on the Termination Date and continuing for a period that shall not exceed one year, Executive shall be eligible for reasonable comprehensive outplacement assistance up to a maximum benefit of 20% of the Base Amount at the time of termination (but not to exceed $50,000). The Company shall pay the cost for such assistance, within one year after the date such assistance commences, directly to an outside vendor selected by the Executive and Company;
(v) The restrictions on any outstanding equity and other long-term incentive awards, including stock options, restricted stock, incentive stock units and cash performance units, granted to the Executive under the Companys stock option and other stock incentive plans shall be governed solely by the terms of those specific plans and agreements;
(vi) The Company shall pay to the Executive a lump sum amount equal to: (i) twenty-four (24) times (ii) the monthly cost of Executives COBRA coverage as of the Termination Date;
(vii) The Executive may request the Company to purchase the Executives principal residence in the Corning, New York area. Such purchase must take place and be finalized in the calendar year following the year in which the Termination Date occurs. Such purchase shall be made at the residences appraised value at the Termination Date, as determined in accordance with the Companys standard relocation policies in effect immediately prior to the Termination Date. The Companys obligation under this section is solely limited to a purchase of Executives principal residence as described above at the appraised value and does not include any other costs that may be associated with Executives decision to relocate (e.g., movement of household goods).
b. The amounts provided for in subsections 3(a)(i), 3(a)(ii) and 3(a)(vi) shall be paid in a single lump sum cash payment within sixty (60) days after the Date of Termination; provided that the bonus described in subsection 2(a)(iv) shall be paid at the time such payments are made for other similarly situated executives who participate in the Bonus Plans and in all instances before the date that is two and one-half (2 1⁄2) months after the end of the fiscal year to which the bonuses relate.
c. The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise, and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Executive in any subsequent employment.
d. Notwithstanding anything to the contrary in this Agreement, to the extent that the total value of all cash and non-cash benefits and payments provided to Executive under Sections 3(a)(ii), 3(a)(iv), and 3(a)(vi) exceeds 2.99 times the sum of (A) the Base Amount, and (B) the annual target bonuses under the Bonus Plans, (this overall 2.99x value being referred to as the Maximum Amount), then the payments and benefits provided under this Agreement will be reduced or eliminated dollar-for-dollar as required to ensure that the total value of all such payments and benefits provided under the sections noted above do not exceed the Maximum Amount. If any reductions are required under this subsection, the Company shall reduce the payment under subsection 3(a)(ii) to the extent so necessary.
4. EMPLOYMENT TAXES. All payments made pursuant to this Agreement will be subject to all applicable withholdings of income and employment taxes.
5. SUCCESSORS; BINDING AGREEMENT. This Agreement shall be binding upon and shall inure to the benefit of the Company, its Successors and Assigns and the Company shall require any Successors and Assigns to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession or assignment had taken place. Neither this Agreement nor any right or interest hereunder shall be assignable or transferable by the Executive or the Executives beneficiaries or legal representatives. This Agreement shall inure to the benefit of and be enforceable by the Executives legal personal representative.
6. NOTICE. For the purposes of this Agreement, notices and all other communications provided for in the Agreement (including the Notice of Termination) shall be in writing and shall be deemed to have been duly given when personally delivered or sent by certified mail, return receipt requested, postage prepaid, addressed to the respective addresses last given by each party to the other, provided that all notices to the Company shall be directed to the attention of the Senior Vice President, Global Compensation & Benefits, Human Resources and Diversity or the Senior Vice President, Human Resources of the Company.
7. NON-EXCLUSIVITY OF RIGHTS. Nothing in this Agreement shall prevent or limit the Executives continuing or future participation in any benefit, bonus, incentive or other plan or program provided by the Company (except for any severance or termination policies, plans, programs or practices) and for which the
Executive may qualify, nor shall anything herein limit or reduce such rights as the Executive may have under any other agreements with the Company. Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plan or program of the Company shall be payable in accordance with such plan or program, except as explicitly modified by this Agreement.
8. NO IMPLIED EMPLOYMENT RIGHTS. Nothing in this Agreement shall alter the Executives status as an at will employee of the Company or be construed to imply that the Executives employment is guaranteed for any period of time except as otherwise agreed in a written agreement signed by a duly authorized officer of the Company.
9. MISCELLANEOUS. Except as expressly provided herein, no provision of this Agreement may be modified, waived or discharged, unless such waiver, modification or discharge is agreed to in writing and signed by the Executive and the Company. No waiver by either party hereto at any time of any breach by the other party hereto, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreement or representation, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement.
10. GOVERNING LAW. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York without giving effect to the conflict of law principles thereof.
11. ARBITRATION. Any dispute or controversy arising under or in connection with the subject matter, the interpretation, the application, or alleged breach of this Agreement (Arbitrable Claims) shall be resolved by binding arbitration in New York City, New York, in accordance with the then-current National Rules for the Resolution of Employment Disputes of the American Arbitration Association. Arbitration shall be final and binding upon the parties and shall be the exclusive remedy for all Arbitrable Claims. Notwithstanding the foregoing, either party may bring an action in court to compel arbitration under this Agreement, to enforce an arbitration award, or to seek injunctive relief. THE PARTIES HEREBY WAIVE ANY RIGHT TO JURY TRIAL AS TO ARBITRABLE CLAIMS.
12. SEVERABILITY. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.
13. ENTIRE AGREEMENT. The parties agree that the terms of this Agreement are intended to be the final expression of their agreement with respect to the subject matter of this Agreement and may not be contradicted by evidence of any prior or contemporaneous Agreement, except to the extent that the provisions of any such agreement have been expressly referred to in this Agreement as having continued effect. Any and all previous agreements, practices and programs between the Company and the Executive dealing with severance or a Termination of Employment are null and void and given no effect as of the Effective Date.
14. COORDINATION WITH CHANGE IN CONTROL AGREEMENT. No amounts or benefits shall be provided to Executive under this Agreement in the event that the Executive becomes entitled to benefits under a separate Change in Control Agreement with the Company which separately addresses payments in that situation.
15. SECTION 409A.
a. For purposes of this Agreement, Section 409A shall mean Section 409A of the Internal Revenue Code of 1986, as amended, and the Treasury regulations and other authoritative guidance issued thereunder. The benefits under this Agreement are intended to either be exempt from the requirements of Section 409A (e.g., the payments under subsections 3(a)(i), (ii) and (vi) are intended to be exempt because they are intended to qualify as short term deferrals within the meaning of Treasury Regulation Section 1.409A-1(b)(4), as outplacement benefits under Treasury Regulation Section 1.409A-1(b)(9)(v)(A), and/or as certain welfare benefits under Treasury Regulation Section 1.409A-1(a)(5)) or to comply with the requirements of Section 409A, and this Agreement shall be interpreted and administered in accordance with that intent so that no taxes are imposed on the Executive under Section 409A. If any provision of this Agreement would otherwise conflict with or frustrate this intent, that provision will be interpreted and deemed amended so as to avoid the conflict. Any reference to termination of employment or similar term shall mean separation from service as defined under Section 409A.
b. The Company reserves the right, without the consent of the Executive, to amend this Agreement at any time to comply with Section 409A and the regulations and other authoritative guidance issued thereunder.
c. The timing of all payments and benefits under this Agreement shall be made consistent with the requirements of Section 409A to the extent that Section 409A is applicable to payments under this Agreement. Therefore, notwithstanding any provision in this Agreement to the contrary, in the event that the Executive is a specified employee (as defined in Section 409A), any benefit or amount described in this Agreement that is nonqualified deferred compensation within the meaning of Section 409A and that is to be made upon separation from service shall be delayed until the date which is the first day of the seventh month after the date the Executive separates from service (or, if earlier, the date of the Executives death), if necessary to avoid any taxes that would otherwise be imposed by Section 409A.
IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer and the Executive has executed this Agreement as of the day and year first above written.
Corning Incorporated: | ||
By: |
| |
Executive: | ||
|
Exhibit 10.71
CORNING INCORPORATED
FORM OF CHANGE IN CONTROL AGREEMENT
This Agreement, dated as of (the Effective Date) is entered into between Corning Incorporated, a corporation organized under the laws of the State of New York (Corning or the Company), and (the Executive).
WHEREAS, the Board of Directors of the Company (the Board) recognizes that the possibility of a Change in Control (as hereinafter defined) exists and that the threat or the occurrence of a Change in Control can result in significant distractions to its key management personnel because of the uncertainties inherent in such a situation; and
WHEREAS, the Board has determined that it is essential and in the best interest of the Company and its stockholders to retain the services of the Executive in the event of a threat or occurrence of a Change in Control and to ensure the Executives continued dedication and efforts in such event without undue concern for the Executives personal, financial and employment security; and
WHEREAS, in order to induce the Executive to remain in the employ of the Company, particularly in the event of a threat or the occurrence of a Change in Control, the Company desires to enter into this Agreement with the Executive to provide the Executive with certain benefits in connection with a Change in Control or a Potential Change in Control (as hereinafter defined).
NOW, THEREFORE, in consideration of the respective agreements of the parties contained herein, it is agreed as follows:
1. TERM OF AGREEMENT. This Agreement shall commence as of the Effective Date and shall continue in effect until the December 31st following Effective Date. The Agreement shall thereafter annually be automatically extended until December 31 of the next following year unless either the Company (but only if the Company acts with respect to all officers of the same class as the Executive with whom it has a substantially similar Agreement) or the Executive shall have given written notice to the other that the term of this Agreement shall not be so extended by October 1 of a year; and provided, further, that notwithstanding any such notice by the Company not to extend, the term of this Agreement shall not expire during a Potential Change in Control Period or prior to the expiration of two (2) years after the date of a Change in Control that occurs during the term hereof (including during a Potential Change in Control Period).
2. DEFINITIONS.
a. ACCRUED COMPENSATION. For purposes of this Agreement, Accrued Compensation shall mean the following amounts earned or accrued through the Termination Date (as hereinafter defined) but not paid as of the Termination Date: (i) base salary, (ii) reimbursement for reasonable and necessary expenses incurred by the Executive on behalf of the Company during the period ending on the Termination Date, (iii) vacation pay and (iv) the Executives bonus payable under the annual Performance Incentive Plan and GoalSharing plans (collectively, the Bonus Plans) based on actual performance, pro-rated by multiplying such bonuses by a fraction whose numerator is the number of months the Executive worked in the calendar year in which the Termination Date occurred (counting those months up to the month end that is closest to the Termination Date) and whose denominator is twelve.
b. BASE AMOUNT. For purposes of this Agreement, Base Amount shall mean the Executives annual base salary at the rate in effect on the Termination Date, including all amounts of base salary that are deferred under the employee benefit plans of the Company or any other agreement or arrangement.
c. BONUS AMOUNT. For purposes of this Agreement, in the event that the Executive is not the Companys Chief Executive Officer or Chief Operating Officer and the Executives base salary at all times in the calendar year of the Termination Date is less than $599,000, Bonus Amount shall mean the Executives Base Amount times the sum of: (a) Executives target percentage in effect on the Termination Date under the Companys Performance Incentive Plan, and (b) 5% (in lieu of GoalSharing award).
d. CAUSE. For purposes of this Agreement, Cause shall mean the Executives:
(i) Conviction of or pleading guilty or no contest (or its equivalent) to a felony or conviction of or pleading guilty or no contest (or its equivalent) to a misdemeanor involving moral turpitude (from which no further appeals have been or can be taken);
(ii) gross abdication of his duties as an employee and officer of the Company (other than due to the Executives illness or personal family problems), which conduct remains uncured by the Executive for a period of at least 30 days following written notice thereof to the Executive by the Company, in each case as determined in good faith by the Company; or
(iii) misappropriation of Company assets, personal dishonesty or business conduct which causes material or potentially material financial or reputational harm for the Company. For purposes of this Section 2(d), no act or failure to act on the Executives part shall be deemed to be a termination for Cause if done, or omitted to be done, in good faith, and with the reasonable belief that the action or omission was in the best interests of the Company.
e. CHANGE IN CONTROL. For purposes of this Agreement, a Change in Control shall mean any of the following events, provided that such event is also a change of ownership or effective control of the corporation, or in the ownership of a substantial portion of the assets of the corporation within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the Code):
(i) Any person (as such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing 30% or more of the combined voting power of the Companys then outstanding securities;
(ii) The individuals who are members of the Board as of the date this Agreement is approved by the Board (the Incumbent Board) cease for any reason to constitute at least a majority of the Board within a twelve (12) month period; PROVIDED, HOWEVER, that if the appointment, election or nomination for election by the Companys stockholders, of any new director is approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes of this Agreement, be considered a member of the Incumbent Board; PROVIDED, FURTHER, HOWEVER, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened Election Contest (as described in Rule 14a-11 promulgated under the 1934 Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a Proxy Contest) including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest;
(iii) Consummation of a merger, consolidation or reorganization involving the Company, unless such merger, consolidation or reorganization results in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or parent thereof) more than fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or parent thereof outstanding immediately after such merger, consolidation, or reorganization;
(iv) A complete liquidation or dissolution of the Company; or
(v) The sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a subsidiary).
f. COMPANY. For purposes of this Agreement, Company shall include Cornings Successors and Assigns (as hereinafter defined).
g. DISABILITY. For purposes of this Agreement, Disability shall mean a physical or mental infirmity which the Company reasonably believes is expected to impair the Executives ability to substantially perform the Executives duties with the Company for a period of: (i) one hundred eighty (180) consecutive days; or (ii) 180 days during any twelve (12) month period, and the Executive has not returned to full time employment prior to the Termination Date as stated in the Notice of Termination.
h. GOOD REASON. For purposes of this Agreement, Good Reason shall mean the occurrence of any of the events or conditions described in subsections (i) through (vi) below, PROVIDED, HOWEVER, that the Executive gives the Company thirty (30) days Notice of Termination (as defined below) (during which time the Company will have an opportunity to correct the condition constituting Good Reason), and PROVIDED, FURTHER, that such notice is submitted by the Executive no later than three (3) months after the occurrence of the event that is the basis for the Good Reason:
(i) a material change in the Executives title, position or responsibilities which represents a material and adverse change from the Executives title, position or responsibilities as in effect immediately prior to such change;
(ii) the assignment to the Executive of any duties or responsibilities which are substantially inconsistent with the Executives title, position or responsibilities as in effect immediately prior to such assignment and which represents a material adverse change to the Executive;
(iii) any removal of the Executive from or failure to reappoint or reelect the Executive to any of such offices or positions, except in connection with the termination of the Executives employment for Disability, Cause, as a result of the Executives death or by the Executive other than for Good Reason;
(iv) a material reduction in the Executives base salary, other than a reduction not in excess of ten percent (10%) that occurs in connection with a uniform reduction in base salary of other executives of the Company;
(v) the Companys requiring the Executive to change the location of his principal office which results in Executive having to commute more than 30 miles from his residence, without Executives express consent, except for reasonably required travel on the Companys business which is not materially greater than such travel requirements prior to the Change in Control; or
(vi) any material breach by the Company of any provision of this Agreement or any Employment Agreement between the Company and the Executive, including, but not limited to, the failure of the Company to obtain an agreement from any Successors and Assigns to assume and agree to perform this Agreement, as contemplated in Section 8 hereof.
The definition of Good Reason is intended to qualify as good reason separation from service under Treasury Regulation section 1.409A-1(n)(2) (e.g., the Good Reason must be a material adverse change to the Executive), and the definition of Good Reason shall be interpreted and administered consistent with that intent.
i. NOTICE OF TERMINATION. For purposes of this Agreement, Notice of Termination shall mean a written notice of termination of the Executives employment from the Company, which notice indicates the Termination Date (as defined below), the specific termination provision in this Agreement relied upon and which sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executives employment under the provision so indicated.
j. POTENTIAL CHANGE IN CONTROL PERIOD. For purposes of this Agreement, Potential Change in Control Period shall mean the period beginning on the date of execution (during the term of this Agreement) of an agreement with respect to a transaction the consummation of which would constitute or result in a Change in Control, and ending on the date immediately following the Change in Control date or the date on which such agreement is terminated or the transaction contemplated therein otherwise is abandoned.
k. SUCCESSORS AND ASSIGNS. For purposes of this Agreement, Successors and Assigns shall mean a corporation or other entity acquiring all or substantially all of the assets and business of the Company whether by operation of law or otherwise.
l. TERMINATION DATE. For purposes of this Agreement, Termination Date shall mean, in the case of the Executives death, the Executives date of death. For other separations from service the Termination Date shall mean the Executives separation from service within the meaning of Section 409A. In the case of a Good Reason separation from service, the Executive must provide the Company at least thirty (30) days advance notice of the Executives anticipated separation date. If the Executives employment is terminated by the Company due to Disability, the date specified in the Notice of Termination shall be at least 30 days from the date the Notice of Termination is given to the Executive, and the Executive shall not have returned to the full-time performance of the Executives duties during such period of at least 30 days.
3. CHANGE IN CONTROL BENEFITS
a. If, during the term of this Agreement, the Executives employment with the Company shall be terminated within the Potential Change in Control Period or within two (2) years following a Change in Control, the Executive shall be entitled to the following compensation and benefits:
(i) If the Executives employment with the Company shall be terminated by reason of death or Disability, the Company shall pay to the Executive the Accrued Compensation. If the Executives employment with the Company shall be terminated by the Company for Cause or by the Executive other than for Good Reason, the Company shall pay to the Executive the Accrued Compensation, except that the Executive shall not be entitled to the bonus described in subsection 2(a)(iv).
(ii) If the Executives employment with the Company shall be terminated by the Company not for Cause or by the Executive for Good Reason, the Executive shall be entitled to the following:
(1) The Company shall pay the Executive all Accrued Compensation;
(2) Executive shall receive an amount in accordance with the following:
| If the Executive is not the Companys Chief Executive Officer or Chief Operating Officer and the Executives base salary at all times in the calendar year of the Termination Date is less than $599,000, the Company shall pay Executive two (2) times the sum of (A) the Base Amount, and (B) the Bonus Amount; |
| If the Executive is the Companys Chief Executive Officer, the Company shall pay Executive six (6) times the Base Amount; |
| If the Executive is the Companys Chief Operating Officer, the Company shall pay Executive four (4) times the Base Amount; |
| If the Executive is not the Companys Chief Executive Officer or Chief Operating Officer and the Executives base salary at any time in the calendar year of the Termination Date is equal to or greater than $599,000, the Company shall pay Executive three-and-a-half (3.5) times the Base Amount. |
(3) The restrictions on any outstanding equity and other long-term incentive awards, including stock options, restricted stock, restricted stock units and cash performance units, granted to the Executive under the Companys stock option and other stock incentive plans shall be governed solely by the terms of those specific plans and agreements.
(4) The Company shall pay to the Executive a lump sum amount equal to: (i) twenty-four (24) times (ii) the monthly cost of Executives COBRA coverage as of the Termination Date;
(5) The Executive may request the Company to purchase the Executives principal residence. Such purchase must take place and be finalized in the calendar year following the year in which the Termination Date occurs. Such purchase shall be made at the residences appraised value at the Termination Date, as determined in accordance with the Companys relocation policies in effect immediately prior to the Potential Change in Control Period or Change in Control (as applicable);
(6) Commencing on the Termination Date and continuing for a period that shall not exceed one year, the Executive shall be eligible for reasonable comprehensive outplacement assistance up to a maximum benefit equal to 20% of base pay at the time of termination (but not to exceed $50,000). The Company shall pay the cost for such assistance, within one year after the assistance commences, directly to an outside vendor selected by the Executive and the Company.
b. The amounts provided for in subsections 3(a)(i), 3(a)(ii)(1), 3(a)(ii)(2), and 3(a)(ii)(4) shall be paid in a single lump sum cash payment within sixty (60) days after the Executives Termination Date; provided that the bonus described in subsection 2(a)(iv) shall be paid at the time such payments are made for other similarly situated executives who participate in the Bonus Plans and in all instances before the date that is two and one-half (2 1⁄2) months after the end of the fiscal year to which the bonuses relate.
c. The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise, and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Executive in any subsequent employment.
4. NOTICE OF TERMINATION. During the Potential Change in Control Period and on or following a Change in Control, any purported termination of the Executives employment shall be communicated by a Notice of Termination to the Executive. For purposes of this Agreement, no such purported termination shall be effective without such Notice of Termination.
5. OVERALL LIMIT ON TOTAL BENEFITS. Notwithstanding anything to the contrary in this Agreement, to the extent that the total value of all cash and non-cash benefits and payments provided to Executive under Sections 3(a)(ii)(2), 3(a)(ii)(4) and 3(a)(ii)(6) exceeds 2.99 times the sum of (A) the Base Amount, (B) Executives target bonus under the Companys Performance Incentive Plan, and (C) 5% of the Base Amount in lieu of Executives GoalSharing award (this overall 2.99 value being referred to as the Maximum Benefit), then the payments and benefits provided under this Agreement will be reduced dollar-for-dollar as required to ensure that the total value of all such payments and benefits provided under the sections noted above do not exceed the Maximum Benefit. Notwithstanding anything contained in this Agreement or any other compensation plan to the contrary, if upon or following a change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets of the Company (each within the meaning of Section 280G of the Code), the tax imposed by Section 4999 of the Code (the Excise Tax) applies to any payments, benefits and/or amounts received by the Executive pursuant to this Agreement or otherwise (collectively, the Total Payments), then the Total Payments shall be reduced so that the maximum amount of the Total Payments (after reduction) shall be one dollar ($1.00) less than the amount which would cause the Total Payments to be subject to the Excise Tax; provided that such reduction to the Total Payments shall be made only if the total after-tax benefit to the Executive is greater after giving effect to such reduction than if no such reduction had been made. If any reductions are required under this section, the Company shall reduce the payment under subsection 3(a)(ii)(2) to the extent so necessary.
6. EMPLOYMENT TAXES. All payments made pursuant to this Agreement will be subject to applicable withholdings of income and employment taxes.
7. SUCCESSORS; BINDING AGREEMENT. This Agreement shall be binding upon and shall inure to the benefit of the Company, its Successors and Assigns and the Company shall require any Successors and Assigns to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession or assignment had taken place. Neither this Agreement nor any right or interest hereunder shall be assignable or transferable by the Executive or the Executives beneficiaries or legal representatives, except by will or by the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executives legal personal representative.
8. NOTICE. For the purposes of this Agreement, notices and all other communications provided for in the Agreement (including the Notice of Termination) shall be in writing and shall be deemed to have been duly given when personally delivered or sent by certified mail, return receipt requested, postage prepaid, addressed to the respective addresses last given by each party to the other, provided that all notices to the Company shall be directed to the attention of the Chairman of the Board with a copy to the Secretary of the Company. All notices and communications shall be denied to have been received on the date of delivery thereof or on the third business day after the mailing thereof, except that notice of change of address shall be effective only upon receipt.
9. NON-EXCLUSIVITY OF RIGHTS; EFFECT ON CHANGE IN CONTROL POLICY. Nothing in this Agreement shall prevent or limit the Executives continuing or future participation in any benefit, bonus, incentive or other plan or program provided by the Company (except for any severance or termination policies, plans, programs or practices) and for which the Executive may qualify, nor shall anything herein limit or reduce such rights as the Executive may have under any other agreements with the Company. Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plan or program of the Company shall be payable in accordance with such plan or program, except as explicitly modified by this Agreement.
10. NO IMPLIED EMPLOYMENT RIGHTS. Nothing in this Agreement shall alter the Executives status as an at will employee of the Company or be construed to imply that the Executives employment is guaranteed for any period of time except as otherwise agreed in a written agreement signed by a duly authorized officer of the Company.
11. MISCELLANEOUS. Except as expressly provided herein, no provision of this Agreement may be modified, waived or discharged, unless such waiver, modification or discharge is agreed to in writing and signed by the Executive and the Company. No waiver by either party hereto at any time of any breach by the other party hereto, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreement or representation, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement.
12. GOVERNING LAW. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York without giving effect to the conflict of law principles thereof.
13. ARBITRATION. Any dispute or controversy arising under or in connection with the subject matter, the interpretation, the application, or alleged breach of this Agreement (Arbitrable Claims) shall be resolved by binding arbitration in New York City, New York, in accordance with the then-current National Rules for the Resolution of Employment Disputes of the American Arbitration Association. Arbitration shall be final and binding upon the parties and shall be the exclusive remedy for all Arbitrable Claims. Notwithstanding the foregoing, either party may bring an action in court to compel arbitration under this Agreement, to enforce an arbitration award, or to seek injunctive relief. THE PARTIES HEREBY WAIVE ANY RIGHT TO JURY TRIAL AS TO ARBITRABLE CLAIMS.
14. LEGAL FEES AND EXPENSES. The Company shall pay or reimburse the Executive on an after-tax basis for all costs and expenses (including, without limitation, court and arbitrations cost and reasonable legal fees and expenses which reflect common practice with respect to the matters involved) incurred by the Executive as a result of any claim, action or proceeding arising out of this Agreement or the contesting, disputing or enforcing of any provision, right or obligation under this Agreement, except where it is finally determined that the Executives position was entirely without merit and asserted in bad faith. The Company agrees to pay such amounts within sixty (60) days following the Companys receipt of an invoice from the Executive, provided that the Executive shall have submitted an invoice for such amounts at least ninety (90) days before the end of the calendar year following the calendar year in which such fees and disbursements were incurred.
15. SEVERABILITY. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.
16. ENTIRE AGREEMENT. The parties agree that the terms of this Agreement are intended to be the final expression of their agreement with respect to the subject matter of this Agreement and may not be contradicted by evidence of any prior or contemporaneous Agreement, except to the extent that the provisions of any such agreement have been expressly referred to in this Agreement as having continued effect. Any and all previous change in control agreements between the Company and the Executive are null and void and given no effect as of the Effective Date.
17. SECTION 409A.
a. For purposes of this Agreement, Section 409A shall mean Section 409A of the Internal Revenue Code of 1986, as amended, and the Treasury regulations and other authoritative guidance issued thereunder. The benefits under this Agreement are intended to either be exempt from the requirements of Section 409A (e.g., the payments under subsections 3(a)(i), 3(a)(ii)(1), 3(a)(ii)(2), and 3(a)(ii)(4) are intended to be exempt because they are intended to qualify as short term deferrals within the meaning of Treasury Regulation Section 1.409A-1(b)(4), as outplacement benefits under Treasury Regulation Section 1.409A-1(b)(9)(v)(A), and/or as certain welfare benefits under Treasury Regulation Section 1.409A-1(a)(5)) or to comply with the requirements of Section 409A, and this Agreement shall be interpreted and administered in accordance with that intent so that no taxes are imposed on the Executive under Section 409A. If any provision of this Agreement would otherwise conflict or frustrate this intent, that provision will be interpreted and deemed amended so as to avoid the conflict. Any reference to termination of employment or similar term shall mean separation from service as defined under Section 409A.
b. The Company reserves the right, without the consent of the Executive, to amend this Agreement at any time to comply with Section 409A and the regulations and other authoritative guidance issued thereunder.
c. The timing of all payments and benefits under this Agreement shall be made consistent with the requirements of Section 409A to the extent that Section 409A is applicable to payments under this Agreement. Therefore, notwithstanding any provision in this Agreement to the contrary, in the event that the Executive is a specified employee (as defined in Section 409A), any benefit or amount described in this Agreement that is nonqualified deferred compensation within the meaning of Section 409A and that is to be made upon separation from service shall be delayed until the date which is the first day of the seventh month after the date the Executive separates from service (or, if earlier, the date of the Executives death), if necessary to avoid any taxes that would otherwise be imposed by IRC Section 409A.
IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer and the Executive has executed this Agreement as of the day and year first above written.
Corning Incorporated: | ||
By: |
| |
John P. MacMahon | ||
Senior Vice President, Global Compensation & Benefits |
Executive: | ||
|
Exhibit 21
Corning Incorporated and Subsidiary Companies
Subsidiaries of the Registrant as of December 31, 2013 are listed below:
Axygen BioScience, Inc. | Delaware | |
Axygen Holdings Corporation | Delaware | |
Axygen, Inc. | California | |
CCS Holdings, Inc. | Delaware | |
CCS Technology, Inc. | Delaware | |
Corning (Shanghai) Co., Ltd. | China | |
Corning Australia Holdings Co. Pty. Ltd. | Australia | |
Corning B.V. | Netherlands | |
Corning Cable Systems LLC | North Carolina | |
Corning Cable Systems Polska Sp. Z o. o. | Poland | |
Corning Cable Systems Pty. Ltd. | Australia | |
Corning Display Technologies (China) Co., Ltd. | China | |
Corning Display Technologies Taiwan Co., Ltd. | Taiwan | |
Corning Finance B.V. | Netherlands | |
Corning Finance France S.A.S. | France | |
Corning Finance Luxembourg S.à.r.l. | Luxembourg | |
Corning GmbH | Germany | |
Corning Holding GmbH | Germany | |
Corning Holding Japan GK | Japan | |
Corning Holding S.a.r.l. | Luxembourg | |
Corning Hungary Asset Management Limited Liability Company | Hungary | |
Corning Hungary Data Services Limited Liability Company | Hungary | |
Corning International B.V. | Netherlands | |
Corning International Corporation | Delaware | |
Corning International Luxembourg S.a.r.l. | Luxembourg | |
Corning Japan KK | Japan | |
Corning Luxembourg S.a.r.l. | Luxembourg | |
Corning Mauritius Ltd. | Mauritius | |
Corning NetOptix, Inc. | Delaware | |
Corning Oak Holding LLC | Delaware | |
Corning Products South Africa (Pty) Ltd. | South Africa | |
Corning Property Management Corporation | Delaware | |
Corning Singapore Holdings Private Limited | Singapore | |
Corning Specialty Materials, Inc. | Delaware | |
Corning Telecommunications Luxembourg S.a.r.l. | Luxembourg | |
Corning Treasury Services Limited | Ireland | |
Corning Tropel Corporation | Delaware | |
Corning Ventures France S.A.S. | France | |
Corning Ventures S.à.r.l. | Luxembourg | |
Discovery Labware, Inc. | Delaware | |
Labnet International, Inc. | New Jersey | |
Companies accounted for under the equity method as of December 31, 2013 are listed below: | ||
Cormetech, Inc. | Delaware | |
Dow Corning Corporation | Michigan | |
Eurokera Guangzhou Co., Ltd. | China | |
Eurokera North America, Inc. | Delaware | |
Eurokera S.N.C. | France | |
Keraglass S.N.C. | France | |
Pittsburgh Corning Europe N.V. | Belgium | |
Samsung Corning Advanced Glass LLC | Korea | |
Samsung Corning Precision Materials Co., Ltd. | Korea |
Summary financial information on Cornings equity basis companies is included in Note 7 (Investments) to the Consolidated Financial Statements in this Annual Report on Form 10-K. Certain subsidiaries, which considered in the aggregate as a single subsidiary, that would not constitute a significant subsidiary, per Regulation S-X, Article 1, as of December 31, 2013, have been omitted from this exhibit.
Exhibit 31.1
SECTION 302 CERTIFICATION
I, Wendell P. Weeks, certify that:
1. | I have reviewed this annual report on Form 10-K/A of Corning Incorporated; and |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report. |
Date: March 21, 2014
/S/ Wendell P. Weeks |
Wendell P. Weeks |
Chairman, Chief Executive Officer and President (Principal Executive Officer) |
Exhibit 31.2
SECTION 302 CERTIFICATION
I, James B. Flaws, certify that:
1. | I have reviewed this annual report on Form 10-K/A of Corning Incorporated; and |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report. |
Date: March 21, 2014
/S/ James B. Flaws |
James B. Flaws |
Vice Chairman and Chief Financial Officer (Principal Financial Officer) |