LSC Communications, Inc. 2016 Stub Annual Incentive Plan Description (Oct 1–Dec 31, 2016)
LSC Communications, Inc. established a short-term incentive plan for employees covering the period from October 1, 2016 to December 31, 2016. Under this plan, incentive payouts are based on the company achieving at least 90% of a set EBITDA target of $96 million. The plan was approved by the Human Resources Committee and is a subplan of the company's 2016 Performance Incentive Plan. Funding and payouts are determined according to a scale based on the company's financial performance during the specified period.
Exhibit 10.26
WRITTEN DESCRIPTION OF ANNUAL INCENTIVE PLAN OF
LSC COMMUNICATIONS, INC.
WITH RESPECT TO THE PERIOD FROM
OCTOBER 1, 2016 TO DECEMBER 31, 2016
Pursuant to the LSC Communications, Inc. 2016 Performance Incentive Plan (the “LSC PIP”) the Human Resources Committee approved a stub incentive plan (the “Stub Plan”), a subplan under the LSC PIP, covering the period from October 1, 2016 to December 31, 2016 (the “Stub Plan Period”). The threshold performance measure for the Stub Plan is a corporate financial target for the Stub Plan Period based on the Company’s reported EBITDA of $96,000,000 (the “Stub Plan Target”). The Stub Plan will begin to fund when 90% of the Stub Plan Target is exceeded, as set forth on the scale approved by the Human Resources Committee.
