Document:

Exhibit
10.4

 

DIRECTORS’ STOCK
AWARD PLAN

(Approved by the
Stockholders on May 16, 2005)

 

The Company has a stockholder
approved plan, the Directors’ Stock Award Plan (“Plan”) which provides that
directors who are not compensated as employees of the Company will be
automatically awarded 200 shares of common stock upon election and 200
additional shares following each annual meeting of stockholders
thereafter.  Under the Plan, 100,000 shares have been reserved for
awards.  At December 31, 2005, 31,200 shares have been awarded under the
Plan, leaving 68,800 shares available for use after that date.

 

The following is a description
of the Plan.

 

1.              Purpose

 

The purposes of the Directors’
Stock Award Plan are (a) to attract and retain highly qualified individuals to
serve as members of the Board of Directors (the “Board”) of Southern Copper
Corporation (the “Company”), (b) to increase the stock ownership in the Company
of members of the Board who are not compensated as employees and (c) to relate
the compensation of members of the Board who are not compensated as employees
more closely to the Company’s performance and its shareholders’ interest by
granting such directors shares of common stock, par value $0.01 per share, of
the Company (the “Shares”).

 

2.              Administration

 

The Plan shall be administered
by the Board.  Subject to the provisions of the Plan, the Board shall be
authorized to interpret the Plan, to establish, amend, and rescind any rules
and regulations relating to the Plan and to make all other determinations
necessary or advisable for the administration of the Plan; provided, however,
that the Board shall have no discretion with respect to the selection of
directors to receive awards of Shares or the number of Shares to be
awarded.  The determinations of the Board in the administration of the
Plan, as described herein, shall be final and conclusive.  The Secretary
of the Company shall be authorized to implement the Plan in accordance with its
terms and to take such actions of a ministerial nature as shall be necessary to
effectuate the intent and purposes thereof.  The validity, construction
and effect of the Plan and any rules and regulations relating to the Plan shall
be determined in accordance with the laws of the State of Delaware.

 

3.              Eligibility

 

The class of individuals
eligible to receive awards of Shares under the Plan shall be directors of the
Company who are not compensated as employees of the Company (“Eligible
Directors”).  Any recipient of an award
granted hereunder shall hereinafter be referred to as a “Participant”.

 

Once elected at the
2005 annual meeting of stockholders, Messrs. Emilio Carrillo Gamboa, Jaime
Fernando Collazo Gonzalez, Xavier Garcia de Quevedo Topete, J. Eduardo Gonzalez
Felix, Harold S. Handelsman, German Larrea Mota-Velasco, Genaro Larrea
Mota-Velasco, Armando Ortega Gomez, Luis Miguel Palomino Bonilla, Gilberto
Perezalonso Cifuentes, Juan Rebolledo Gout, and Carlos Ruiz Sacristan will be
Eligible Directors.

 

4.              Shares
Subject to the Plan

 

Subject to adjustment as
provided in Section 6, an aggregate of 100,000 shares shall be available for
awards under the Plan.  The shares may be
made available from authorized but unissued shares or treasury shares.  If any stock awards under the Plan shall be

 

1

 

foregone or returned to the
Company for any reason, the shares subject to such award shall again be
available for awards.

 

5.              Grant,
Stock Awards

 

(a)  Upon first election to the Board after
September 1, 1995, each newly elected Eligible Director will be granted 200
Shares.

 

(b)  Immediately following each Annual
Shareholders Meeting, each Eligible Director will be granted 200 Shares as of
the date of such meeting.

 

(c)  An Eligible Director may forego any grant of
Shares by giving irrevocable written notice to such effect to the Secretary of
the Company six months in advance of such grant.

 

6.              Adjustment
of and Changes in Shares

 

In the event of a stock split,
stock dividend, extraordinary dividend, subdivision or combination of the Shares
or other change in corporate structure affecting the Shares, the number of
Shares authorized by the Plan and the number of Shares to be granted under
Section 5 shall be appropriately and equitably adjusted.

 

7.              Withholding
of Taxes and Other Laws

 

The Company shall be
authorized to withhold from any payment due under this Plan the amount of
withholding taxes, if any, due in respect of an award hereunder, unless other
provisions satisfactory to the Company shall have been made for the payment of
such taxes.

 

The Board may refuse to issue
or transfer any Shares if, acting in its sole discretion, it determines that
the issuance or transfer of such Shares might violate any applicable law or
regulation or entitle the Company to recover the same under Section 16(b) of
the Securities Exchange Act of 1934, as amended.  Without limiting the
generality of the foregoing, no award granted hereunder shall be construed as
an offer to sell securities of the Company, and no such offer shall be
outstanding, unless and until the Board in its sole discretion has determined
that any such offer, if made, would be in compliance with all applicable
requirements of the U.S. federal securities laws.

 

8.              Effective
Date and Duration of Plan

 

The Plan became effective on
January 1, 1996 on the effective date of the exchange of the Company’s shares
for certain labor shares of the Peruvian Branch of Southern Peru Limited (the “Exchange
Offer”), subject to the completion of such Exchange Offer.  The Plan shall
terminate on January 31, 2016, unless the Plan is extended or terminated at an
earlier date by Shareholders or is terminated by exhaustion of the shares
available for issuance hereunder.

 

2Exhibit 10.1

 

NetBank, Inc.

Management
Incentive Plan

 

 

NetBank, Inc,

Management Incentive Plan

Plan
Document

 

Plan Purpose

 

The following is a description of the NetBank, Inc. (“NBI”) Management
Incentive Plan (“MIP”). The purpose of the MIP is to:

 

•                  Support the
achievement of key business objectives (i.e., earnings per share (EPS),
ensuring that Participants are stakeholder in achieving key Company goals)

•                  Motivate
participants to accomplish specific goals and provide significant rewards for
high performers

•                  Attract and
retain well-qualified associates

•                  Ensure that
total cash compensation (salary plus variable pay) is affordably competitive,
objectively determined and directly linked to realize performance.

 

Effective Date

 

The Plan Year shall be from January 1 through December 31. The Plan
will be reviewed annually to ensure proper alignment with NBI’s business
objectives.

 

Eligible Participants

 

NBI Officers to include the following positions:

 

•                  Chief Executives

•                  Senior Officers

•                  Officers

 

Plan Components

 

The goal of the plan structure is to provide an appropriate balance
between Company, Line of Business and Individual results consistent with each
Participant’s impact and to encourage teamwork and cooperation in goal
planning, execution, and successful results.

 

The plan structure is made up
of 3 components:  Target incentive,
Section weight, and Section goals. Guidelines for determining Officer level
targets and weights are provided by the Human Resources department. The
Division Executive and the Chief Human Resources Executive approve exceptions
to the guidelines for Levels 4 and below.

 

I. Target Incentive Opportunity

 

Each participant has an opportunity for an
MIP which represents a percentage of base salary. The percentage of salary is
the “target”, and represents the amount payable if goals are met. In addition,
the participant may achieve a higher MIP payout by exceeding the “target” goal.
The “maximum potential payout” is represented as 150% of the “target” payout. Conversely,
meeting goal below expectation provides a reduced payout.

 

1

 

The chart below illustrates sample target
payout at various Officer and performance levels.

 

	
   

  	
   

  	
  0%

  	
   

  	
  80%

  	
   

  	
  100%

  	
   

  	
  125%

  	
   

  	
  150%

  	
   

  
	
  Performance Level

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3 (Target)

  	
   

  	
  4

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
  Does Not Meet

  	
   

  	
  Meets Most

  	
   

  	
  Meets All

  	
   

  	
  Exceeds Most

  	
   

  	
  Exceeds All

  	
   

  
	
   

  	
   

  	
  Expectations

  	
   

  	
  Expectations

  	
   

  	
  Expectations

  	
   

  	
  Expectations

  	
   

  	
  Expectations

  	
   

  
	
  Level V

  	
   

  	
  Executive Level

  	
   

  
	
  Level III
  and IV *

  	
   

  	
  0%

  	
   

  	
  16%

  	
   

  	
  20%

  	
   

  	
  25%

  	
   

  	
  30%

  	
   

  
	
  Level II and
  III *

  	
   

  	
  0%

  	
   

  	
  12%

  	
   

  	
  15%

  	
   

  	
  19%

  	
   

  	
  23%

  	
   

  
	
  Level I and
  II *

  	
   

  	
  0%

  	
   

  	
  8%

  	
   

  	
  10%

  	
   

  	
  13%

  	
   

  	
  15%

  	
   

  
	
  Level I *

  	
   

  	
  0%

  	
   

  	
  6%

  	
   

  	
  8%

  	
   

  	
  10%

  	
   

  	
  12%

  	
   

  

 

*  Targets are
set, based on level of experience, tenure, and performance

 

II. Section Weight

 

The MIP is comprised of three separate sets of goals, divided on the scorecard
into three Sections – Company goals, Line of Business goals, and Individual
goals. Each section is weighted separately for a total scorecard weight of 100%.
Weights for each section are based on the organizational level of the Officer.

 

As illustrated below, the higher the organizational level of the
participant, the more heavily the Company section should be weighted on the
scorecard. The minimum weight for the company section is 20%.

 

	
  Organizational

  Level

  	
   

  	
  Company

  Weight

  	
   

  	
  Line of

  Business

  Weight

  	
   

  	
  Individual

  Weight

  	
   

  
	
  Chief Executives

  	
   

  	
  Higher

  	
   

  	
  Varies

  	
   

  	
  Lower

  	
   

  
	
  Senior Officers

  	
   

  	
  

  	
   

  	
  

  	
   

  	
  

  	
   

  
	
  Officer 3

  	
   

  	
   

  	
   

  	
   

  
	
  Officer 2

  	
   

  	
   

  	
   

  	
   

  
	
  Officer 1

  	
   

  	
  Lower

  (Minimum
  20%)

  	
   

  	
  Varies

  	
   

  	
  Higher

  	
   

  

 

III. Scorecard Section Goals

 

Goals will be set by the participant and his/her supervisor near the
beginning of the plan year. Specific goals will be assigned to each of the
three MIP sections (Company, Line of business, Individual).

 

Participants should be assigned up to four goals in each section. These
goals should reflect the most critical and relevant “Key Performance Measures”
representing the participant’s planned activities for the year. The use of more
than four measures will dilute the significance of any one goal. All goals
should be given a percentage weight to reflect their relative priority and the
Participant’s overall impact on each. The total of the goals within each
section should equal 100%.

 

2

 

MIP goals should conform to SMART principals, as follows:

 

	
  Specific

  	
   

  	
  The goal relates to a desirable product of effort/contribution, which
  is clearly understood by all.

  
	
   

  	
   

  	
   

  
	
  Measurable

  	
   

  	
  The goal can be readily and objectively assessed relative to degree
  of attainment.

  
	
   

  	
   

  	
   

  
	
  Achievable

  	
   

  	
  The goal is set based on a realistic chance for achievement.

  
	
   

  	
   

  	
   

  
	
  Results Based

  	
   

  	
  The goal relates to products of effort or conclusions, which add
  value rather than focus on activities performed.

  
	
   

  	
   

  	
   

  
	
  Time Focused

  	
   

  	
  The time period for completion is specified when the goal is
  established.

  

 

Defining Scorecard Targets and Ratings

 

At the beginning of the plan year, each Key
performance measure should be clearly defined at the “target” level and at all
other performance levels as follows:

 

“5” – Greatly Exceeds
Target

“4” – Exceeds Target

“3” – Meets Target

“2” – Below Target

“1” – Outside of
acceptable target range

 

Example of Key Performance measure targets
ratings:

 

	
   

  	
   

  	
  Rating

  	
   

  
	
   

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3 (Target)

  	
   

  	
  4

  	
   

  	
  5

  	
   

  
	
  Key Performance

  Measures

  	
   

  	
  Unacceptable

  results

  	
   

  	
  Below Target

  	
   

  	
  Meets Target

  	
   

  	
  Exceeds Target

  	
   

  	
  Greatly

  Exceeds Target

  	
   

  
	
  Time Based Goal

  	
   

  	
  On or after November 1st

  	
   

  	
  Sept 1st

  	
   

  	
  July 1st

  	
   

  	
  May 1st

  	
   

  	
  on or before March 1st

  	
   

  
	
  Dollar Based Goal

  	
   

  	
  < $1.0MM

  	
   

  	
  $1.25MM

  	
   

  	
  $1.5MM

  	
   

  	
  $1.75MM

  	
   

  	
  > $2.0MM

  	
   

  

 

Year End Scoring and Payout Process

 

At the end of the plan year, key performance measures are scored and
incentives are calculated. Each of the scorecard sections will results in a
separate incentive amount, which then are combined into one payment.

 

Section
Scoring The Key Performance
Measures in each section are scored, and a weighted rating is determined for
each measure based on the weight assigned. The total of the weighted ratings
determines the section score. The weighted section score determines the
weighted percent earned, which is multiplied by the plan target incentive to
determine the section payout. The salary amount used for the purposes of MIP
calculations is based on the annual base salary at the beginning of the plan
year.

 

3

 

Plan
Administration

 

1.              Plan Administrator

 

The Chief Human Resources Executive will
serve as the Plan Administrator with responsibility for ongoing Plan
administration and implementation. The Chief Executive Officer will have final
approval for all Plan policy issues, disputes and decisions. Questions
regarding the interpretation of this Plan should first be referred to the
Division Executive.

 

2.              Plan Duration

 

NBI’s intent is to provide Officers and other
selected associates with an incentive opportunity for achieving worthwhile
goals; however, management reserves the right to amend, change and/or terminate
this Plan at any time, without prior notice.

 

3.              Employment Contract

 

The Plan does not create, nor
should it be construed to constitute, a contract of employment between the
Company and any of its associates.

 

4.              Payment Eligibility

 

To be eligible for an incentive award
payment, the Plan Participant must be employed by NBI at the time of payout.
Any exceptions to Payment Eligibility must be approved by the Chief Executive
Officer and the Chief Human Resources Executive.

 

5.              Incentive Payments

 

Earned incentive awards will be paid within two and one half months
after the end of the plan year.

 

6.              New Officers – New
Hires and Promotions

 

Upon hire or promotion, new Officers will be
nominated and approved on a quarterly basis and are eligible to participate in
a prorated MIP. The salary amount used for the purposes of MIP calculations is
the annual base salary at the beginning of the plan year or at hire. In the
case of newly promoted officers, the promotional increase salary will be used
if applicable.

 

7.              Re-assignment of
Duties

 

In the event that an officer is reassigned
during the Plan year, earned awards will be prorated for the number of months
in each position.

 

8.              Termination

 

If the Plan Participant terminates before incentive payout, no
incentive award will be paid.

 

4

 

9.              Plan Interpretation

 

The
Compensation Committee of the Board of Directors establishes the annual Company
Key Performance Weights. Any revisions to the Plan’s methodology must be
approved by the Compensation Committee.

 

If there is
any ambiguity as to the meaning of any terms or provisions of this plan, the
interpretation of any information contained therein, the Company’s
interpretation will be determined by the Compensation Committee and will be
final and binding.

 

The altering,
inflating, and/or inappropriate manipulation of performance/sales results or
any other infraction of recognized ethical business standards, will subject the
employee to disciplinary action up to and including termination of employment. In
addition, any incentive compensation as provided by this plan to which the
employee would otherwise be entitled will be revoked.

 

Participants
who have willfully engaged in any activity, injurious to the Company, will upon
termination of employment, death, or retirement, forfeit any incentive award
earned during the award period in which the termination occurred.

 

10.       General Conditions

 

•                  This
Management Incentive Plan, and the transactions and payments hereunder shall,
in all respects, be governed by, and construed and enforced in accordance with
the laws of the state of Georgia.

•                  Each
provision of this Management Incentive Plan is severable, and if any provision
is held to be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not, in any way, be affected
or impaired thereby.

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]