Exhibit 10.1

 

MAYTAG CORPORATION

2002 EMPLOYEE AND DIRECTOR STOCK INCENTIVE PLAN

EXECUTIVE ECONOMIC PROFIT PLAN (<<Year>> Award)

 

You have been selected to be a recipient of an award under the Maytag
Corporation 2002 Employee and Director Stock Incentive Plan (the “Plan”), as
specified below:

 

Awardee: <<Name>>

Date of Award: <<Date>>

Award Amount: $ <<Award>>

Performance Period: <<Performance Period Years>>

 

THIS AWARD, effective as of the Date of Award set forth above, is granted by
Maytag Corporation, a Delaware corporation (the “Corporation”), to the Awardee
named above pursuant to the provisions of the Plan. The terms of this Award are
as follows:

 

1. Employment by the Company and its Subsidiaries. The Executive Economic Profit
Plan award made hereunder is awarded on the condition that the Awardee remain in
the employ of the Company and its Subsidiaries (as defined in the Plan) from the
Date of Award through (and including) the remainder of the Performance Period as
specified above.

 

However, neither such condition nor the award under the Executive Economic
Profit Plan shall impose upon the Company and its Subsidiaries any obligation to
retain the Awardee in its employ for any given period or upon any specific terms
of employment.

 

2. Metrics and Payout. The Company has established various levels of performance
attainment using Economic Profit as the performance metric. The degree to which
the Awardee will be entitled to payment under this Award will be a function of
the Company’s performance against these goals over the three-year Performance
Period, subject to the Committee’s discretion to reduce awards.

 

The following table illustrates how the target level of performance have been
established:

 

Executive Economic Profit Plan

($ in millions)

 

     (Base Year)

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   Year 1

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   Year 2

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   Year 3

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Revenues

                   

Operating Income

                   

NOPAT (34.5% tax rate)

                   

Total Net Assets (13 mo. avg.)

                   

Cost of Capital

                   

Economic Profit Target

                   

 

Cumulative 3-year Economic Profit Target =      +      +      -     

 

1

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Attainment of the following performance levels for any metric results in the
respective payout shown:

 

Performance Level

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Economic Profit

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Payout

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Below Threshold

  <__       %

Threshold

    __       %

Target

    __       %

Maximum

  >__       %

 

Payment for results falling between the above performance levels will be
calculated using straight-line interpolation. Actual payments will be made in
cash and/or shares of common Stock of the Company, as determined by the
Committee in its sole discretion. Any portion of such payments made in Shares
shall consist of a number of Shares having a Fair Market Value (as defined in
the Plan), as of the last day of the Performance Period set forth above in this
Award, equal to the amount of cash otherwise payable, rounded to the nearest
whole number of Shares. All such payments shall be subject to all required tax
withholding.

 

3. Termination of Employment.

 

(a) Death. In the event the employment of the Awardee is terminated by reason of
the Awardee’s death during the Performance Period, the Awardee will be entitled
to a prorated award based on the percentage of days of the Awardee’s employment
during the Performance Period and on the degree of achievement of the
pre-established performance goals during the Performance Period. Payment to the
designated beneficiary will occur at the same time it otherwise would have had
the Awardee’s death not occurred.

 

(b) Disability or Retirement. In the event the employment of the Awardee is
terminated by reason of Disability or Retirement (as defined in the Plan) during
the Performance Period, the Awardee will be entitled to a prorated award based
on the percentage of days of the Awardee’s employment during the Performance
Period and on the degree of achievement of the pre-established performance goals
during the Performance Period. Payment will occur at the same time it otherwise
would have had the Awardee’s disability or retirement not occurred.

 

If, after the termination of the Awardee’s employment due to Disability or
Retirement, but prior to the conclusion of the Performance Period as set forth
on the first page of this Award, the Awardee dies, then the provisions of this
section 3(b) will continue to apply.

 

(c) Cause. In the event the employment of the Awardee is terminated by reason of
Cause (as defined in the Plan) during the Performance Period, the award granted
hereunder shall immediately be forfeited upon the effective date of termination
of employment. For purposes of this Award, “Cause” shall be determined in good
faith by the Committee or its delegee.

 

(d) Termination for Other Reasons. In the event that during the Performance
Period the Awardee terminates employment with the Company and its Subsidiaries
for any reason other than those reasons set forth in Sections 3(a), 3(b) and
3(c), the award granted hereunder shall be forfeited. In the event that the
during the Performance Period the Company terminates the Awardee’s employment
with the Company or its Subsidiaries for any reason other than those reasons set
forth in Sections 3(a), 3(b) and 3(c), any payment, in whole, in part, or none
of the award, is within sole discretion of the Company.

 

2

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6. Change of Control. In the event of a Change of Control (as defined in the
Plan), the awards granted hereunder shall be paid out to the Awardee as if the
date of the Change of Control were the last day of the Performance Period and
the Company had achieved 100% of its target performance level(s), without regard
to any termination of the Awardee’s employment that occurs on or after the date
of the Change of Control.

 

7. Transferability. The award granted hereunder may not be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by will or
by the laws of descent and distribution and as provided in Section 8 of this
Award. If any sale, transfer, pledge, assignment or other alienation or
hypothecation of the award granted hereunder shall be made, or if any
attachment, execution, garnishment, or lien shall be issued against or placed
upon the award, such transfer will be null and void.

 

8. Beneficiary Designation. Attached to this Award is a beneficiary designation
form that the Grantee may use to name a beneficiary or beneficiaries to whom any
benefit pursuant to the award granted hereunder is to be paid in case of the
Grantee’s death before the Grantee receives any or all of such benefit. In the
absence of any such designation, any such benefits shall be paid to the
Grantee’s estate.

 

9. Administration. This Award and the rights of the Awardee 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 Compensation
Committee of the Company may adopt for administration of the Plan. It is
expressly understood that the Committee or its delagees is authorized to
administer, construe, and make all determinations necessary or appropriate to
the administration of the Plan and this Award, all of which shall be binding
upon the Awardee. Any inconsistency between this Award and the Plan shall be
resolved in favor of the Plan.

 

10. Miscellaneous.

 

(a) This Award shall not confer upon the Awardee any right to continuation of
employment by the Company and its Subsidiaries, nor shall this Award interfere
in any way with the right of the Company and its Subsidiaries to terminate his
or her employment at any time.

 

(b) The Plan and this Award are subject to amendment as set forth in the Plan.

 

(c) This Award 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) To the extent not preempted by Federal law, this Award shall be governed by,
and construed in accordance with the laws of the State of Delaware.

 

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