Stock Incentive Plan 20 Performance Plan Award Agreement Corn Products International, Inc.
Exhibit 10.1
Stock Incentive Plan
20 Performance Plan Award Agreement
20 Performance Plan Award Agreement
Corn Products International, Inc.
, 20
Contents
Article 1. Performance Period |
1 | |||
Article 2. Value of Performance Shares |
1 | |||
Article 3. Performance Shares and Achievement of Performance Measures |
1 | |||
Article 4. Termination Provisions |
4 | |||
Article 5. Dividends |
5 | |||
Article 6. Form and Timing of Payment of Performance Shares |
5 | |||
Article 7. Nontransferability |
5 | |||
Article 8. Administration |
5 | |||
Article 9. Miscellaneous |
6 |
You have been selected to be a participant in the Corn Products International, Inc.
Stock Incentive Plan (the “Plan”), as specified below:
| Participant: | ||||
| Target Performance Share Award: | ||||
| Performance Period: | , 20 to , 20 | |||
| Performance Measures: | 50% — Relative Total Shareholder Return (“TSR”) | |||
| 50% — Matrix incorporating Return on Capital Employed (“ROCE”) and Three-Year Compounded EPS Growth |
THIS AGREEMENT (the “Agreement”) effective as of , 20 , represents the grant of
Performance Shares by Corn Products International, Inc., a Delaware corporation (the “Company”), to
the Participant named above, pursuant to the provisions of the Plan.
The Plan provides a complete description of the terms and conditions governing the Performance
Shares. If there is any inconsistency between the terms of this Agreement and the terms of the
Plan, the Plan’s terms shall completely supersede and replace the conflicting terms of this
Agreement. All capitalized terms shall have the meanings ascribed to them in the Plan, unless
specifically set forth otherwise herein. The parties hereto agree as follows:
Article 1. Performance Period
The Performance Period commences on , 20 and ends on , 20 .
Article 2. Value of Performance Shares
Each Performance Share shall represent and have a value equal to one share of common stock of the
Company as detailed herein.
Article 3. Performance Shares and Achievement of Performance Measures
| (a) | The number of Performance Shares to be earned under this Agreement shall be based upon the achievement of preestablished TSR percentile ranking performance and return on capital employed and three-year compounded earnings per share goals as approved by the Compensation Committee of the Company’s Board of Directors (the “Committee”) for the Performance Period, based on the following charts: |
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Total Shareholder Return
| Percent of Target | ||||
| TSR Percentile | Performance Share | |||
| Ranking Goal | Award Earned | |||
³_th |
200% (maximum) | |||
__th |
150% | |||
__th |
100% (target) | |||
__th |
75% | |||
__th |
50% (threshold) | |||
<__th |
0% | |||
Interpolation shall be used to determine the percentile rank in the event the Company’s
TSR Percentile Rank does not fall directly on one of the ranks listed in the above
chart.
Unless otherwise determined by the Committee, a minimum of a positive TSR must be
achieved at the end of the three-year cycle for this portion of the award to be earned.
| (b) | For this purpose, TSR shall be determined as follows: |
TSR
|
= | Change in Stock Price + Dividends Paid | ||||
| Beginning Stock Price |
| (i) | Beginning Stock Price shall mean the average of the Daily Averages for each of the twenty (20) trading days immediately prior to the first day of the Performance Period; | ||
| (ii) | Ending Stock Price shall mean the average of Daily Averages for each of the last twenty (20) trading days of the Performance Period; | ||
| (iii) | Change in Stock Price shall mean the difference between the Beginning Stock Price and the Ending Stock Price; and | ||
| (iv) | Dividends Paid shall mean the total of all dividends paid on one (1) share of stock during the applicable calendar quarter(s) during the Performance Period, provided that dividends shall be treated as though they are reinvested at the end of each calendar quarter based on the stock price at the end of each calendar quarter. |
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| (v) | Daily Average shall mean the average of the high and low stock price on the applicable stock exchange of one share of stock for a particular trading day. |
| (c) | Following the TSR determination, the Company’s Percentile Rank against the “Peer Group” shall be determined. Once the Company’s Percentile Rank is determined, 50% of the Performance Shares target to be awarded shall then be determined based on the chart in Section 3(a). | ||
| (d) | “Peer Group” shall mean the companies listed below, categorized by industry. If two companies in the Peer Group merge, or one is acquired, the new company will be included in the Peer Group. If a company merges with a company not in the Peer Group or if a company declares bankruptcy, the company will be removed and its TSR will not be included as part of the Peer Group. |
Agricultural Processing
|
Paper/Timber/Planing | |
Xxxxxx Xxxxxxx Midland Company
|
AbitibiBowater Inc. | |
Xxxxx Limited
|
Aracruz Celulose S.A.-ADR | |
Gruma, S.A. de C.V.
|
Buckeye Technologies Corporation | |
MGP Ingredients, Inc.
|
Caraustar Industries Inc. | |
Penford Corp
|
Chesapeake Corporation | |
Xxxx & Xxxx — ADR
|
Deltic Timber Corp. | |
| MeadWestvaco Corporation | ||
Agricultural Production/Farm Production
|
Xxxx & Xxxxxx Inc. | |
Alliance One International
|
Potlatch Corporation | |
Alico Inc.
|
Smurfit-Stone Container Corp | |
Xxxxxxx River Labs International Inc.
|
Wausau Paper Corporation | |
Universal Corporation |
||
Agricultural Chemicals
|
||
Agrium Inc. |
||
Monsanto Company |
||
Potash Corporation of Saskatchewan Inc. |
||
Syngenta AG-ADR |
||
Terra Industries Inc. |
||
Terra Nitrogen Co.-LP |
Return on Capital Employed and Earnings Growth Matrix
The remaining fifty percent of the performance plan award will be earned based on the Company’s
return on capital employed (ROCE) and compounded three-year earnings per share growth at the end of
the performance period. The ROCE calculation will be based on the opening balance sheet in the
third year, measured against the net operating profit after tax in the third year. Incentives for
this component of the award will be earned according to the following matrix:
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There will be no payout if ROCE in the third year of the performance cycle is less than ___% or if
the three-year compounded earnings per share growth during the performance cycle is less than ___%.
Earned awards for performance between the financial results presented in the matrix above will be
interpolated.
An extraordinary event as judged by the Committee may result in the change of the goal.
Once the number of Performance Shares to be awarded based on the Company’s performance measures
results are known, then the Committee may decrease or eliminate entirely the number of Performance
Shares to be awarded based on whether the Participant’s individual performance during the
Performance Period was acceptable (an average rating of “meets expectation” or above).
Article 4. Termination Provisions
Except as provided below, the Participant shall be eligible for payment of awarded Performance
Shares, as determined in Section 3, only if the Participant’s employment with the Company continues
through the end of the Performance Period.
If the Participant’s employment with the Company terminates prior to the end of the Performance
Period by reason of death, retirement on or after age 55 (with a minimum of 10 years of employment
or service with the Company) or the occurrence of such Participant’s Disability Date, a pro-rated
payment will be provided as long as the event occurred in years two or three of the period, subject
to the Committee’s approval. Upon termination of employment under any other circumstances, the
Committee, in its sole discretion and taking into consideration the performance of the Participant
and the performance of the Company during the Performance Period, may authorize the payment to the
Participant (or his legal representative) at the end of the Performance Period of all or any
portion of the Performance Share Award which would have been paid to the Participant for such
Performance Period.
If the Participant’s employment with the Company terminates for any other reason prior to the end
of the Performance Period, then the award which is subject to such Performance Period on the
effective date of the Participant’s termination of employment shall be forfeited to and cancelled
by the Company.
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Article 5. Dividends
The Participant shall have no right to any dividends which may be paid with respect to shares of
Company common stock until any such shares are paid to the Participant following the completion of
the Performance Period.
Article 6. Form and Timing of Payment of Performance Shares
| (a) | The payment of the Performance Share Awards shall be paid to the Participant no later than two and one-half months after the end of the Performance Period. Payment of the Performance Shares awarded shall be made subject to the following: |
| (i) | The Participant shall have no right with respect to any Award until such award shall be paid to such Participant. | ||
| (ii) | If the Committee determines, in its sole discretion, that the Participant at any time has willfully engaged in any activity that the Committee determines was or is harmful to the Company, any unpaid Award will be forfeited by the Participant. |
| (b) | Performance Shares awarded, if any, will only be paid out in shares of Company stock. | ||
| (c) | The Participant may defer receipt of all or any portion of the Performance Shares awarded hereunder, upon such terms and conditions stated in the deferral election form by filing such written election with the Vice President of Human Resources no later than six months prior to the termination of the Performance Period, provided such election is made in a manner which complies with the requirements of Code Section 409A. Deferrals may only be made into the Corn Products International, Inc. phantom unit investment option under the Corn Products International Supplemental Executive Retirement Plan or a successor to that investment option. |
Article 7. Nontransferability
Performance Shares may not be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution. Further, except as
otherwise provided in a Participant’s Award Agreement, the Participant’s rights under the Plan
shall be exercisable during the Participant’s lifetime only by the Participant or the Participant’s
legal representative.
Article 8. Administration
This Agreement and the rights of the Participant hereunder are subject to all the terms and
conditions of the Plan, as the same may be amended from time to time, as well as to such rules and
regulations as the Committee may adopt for administration of the Plan. It is expressly understood
that the
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Committee is authorized to administer, construe, and make all determinations necessary or
appropriate to the administration of the Plan and this Agreement, all of which shall be binding
upon the Participant. Any inconsistency between the Agreement and the Plan shall be resolved in
favor of the Plan.
Article 9. Miscellaneous
| (a) | The selection of any employee for participation in the Plan and this Agreement shall not give such Participant any right to be retained in the employ of the Company. The right and power of the Company to dismiss or discharge the Participant is specifically reserved. The Participant or any person claiming under or through the Participant shall not have any right or interest in the Plan or any Award thereunder, unless and until all terms, conditions, and provisions of the Plan that affect the Participant have been complied with as specified herein. | ||
| (b) | With the approval of the Board, the Committee may terminate, amend, or modify this Agreement; provided, however, that no such termination, amendment, or modification of this Agreement may in any way adversely affect the Participant’s rights under this Agreement without the Participant’s written consent. | ||
| (c) | This Agreement shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. | ||
| (d) | Notwithstanding any other provision of this Agreement or the Plan to the contrary, the Board of Directors may amend the Plan or this Agreement, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or Agreement to any present or future law relating to plans of this or similar nature (including, but not limited to, Code Section 409A), and to the administrative regulations and rulings promulgated thereunder. | ||
| (e) | To the extent not preempted by federal law, this Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware. | ||
| (e) | The Company shall have the power and right to deduct or withhold, or require the Participant to remit to Company, the minimum statutory amount to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising under this Agreement. | ||
| (f) | With respect to withholdings required upon payment of Company stock in satisfaction of all of the Performance Shares awarded, the Company will withhold Company stock having an aggregate Fair Market Value on the |
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| date the tax is to be determined equal to the minimum statutory total tax that could be imposed on the transaction. | |||
| (g) | In the event of a Change in Control, the Performance Period will be deemed to have ended, and the Performance Shares will be considered earned and the Target Performance Share Award amount will be paid out in accordance with the Plan. Such deemed earned Performance Shares shall be paid out as soon as practicable. |
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed effective as of
, 20 .
| Corn Products International, Inc. | ||||||
| By: | ||||||
| Title: | ||||||
| EXECUTIVE: | ||||||
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