Document:

Exhibit 10.27

 

Ingredion Incorporated

Executive Severance Agreement

 

Agreement, made this 28th day of December, 2011, by and between Ingredion Incorporated, a Delaware corporation (the “Company”), and                      (the “Executive”).

 

WHEREAS, the Executive is a key employee of the Company or a subsidiary of the Company as defined in Section 1.1(b) hereof (“Subsidiary”), and

 

WHEREAS, the Board of Directors of the Company (the “Board”) considers the maintenance of a sound management to be essential to protecting and enhancing the best interests of the Company and its stockholders and recognizes that the possibility of a change in control raises uncertainty and questions among key employees and may result in the departure or distraction of such key employees to the detriment of the Company and its stockholders; and

 

WHEREAS, the Board wishes to assure that it will have the continued dedication of the Executive and the availability of the Executive’s advice and counsel notwithstanding the possibility, threat or occurrence of a bid to take over control of the Company, and to induce the Executive to remain in the employ of the Company or a Subsidiary; and

 

WHEREAS, the Executive is willing to continue to serve the Company and its Subsidiaries taking into account the provisions of this Agreement;

 

NOW, THEREFORE, in consideration of the foregoing, and the respective covenants and agreements of the parties herein contained, the parties agree as follows:

 

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Article 1. Change in Control

 

1.1        Benefits shall be provided under Article 3 hereof only in the event there shall have occurred a “Change in Control”, as such term is defined below, and the Executive’s employment by the Company and its Subsidiaries shall thereafter have terminated in accordance with Article 2 below within the period beginning on the date of the “Change in Control” and ending on the second anniversary of the date of the “Change in Control” (the “Protection Period”). If any Protection Period terminates without the Executive’s employment having terminated, any subsequent “Change in Control” shall give rise to a new Protection Period. No benefits shall be paid under Article 3 of this Agreement if the Executive’s employment terminates outside of a Protection Period.

 

(a) “Change in Control” shall mean:

 

(1)              The acquisition by any individual, entity or group (a “Person”), including any “person” within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act, of beneficial ownership within the meaning of Rule 13d-3 promulgated under the Exchange Act, of 20% or more of either (i) the then outstanding shares of common stock of the Company (the “Outstanding Common Stock”) or (ii) the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors (the “Outstanding Voting Securities”); excluding, however, the following: (A) any acquisition directly from the Company (excluding any acquisition resulting from the exercise of an exercise, conversion or exchange privilege unless the security being so exercised, converted or exchanged was acquired directly from the Company), (B) any acquisition by the Company, (C) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company or (D) any acquisition by any corporation pursuant to a transaction which complies with clauses (i), (ii) and (iii) of subsection (3) of this Section 1.1(a); provided further, that for purposes of clause (B), if any Person (other than the Company or any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company) shall become the beneficial owner of 20% or more of the Outstanding Common Stock or 20% or more of the Outstanding Voting Securities by reason of an acquisition by the Company, and such Person shall, after such acquisition by the Company, become the beneficial owner of any additional shares of the Outstanding Common Stock or any additional Outstanding Voting Securities and such beneficial ownership is publicly announced, such additional beneficial ownership shall constitute a Change in Control;

 

(2)              Individuals who, as of the beginning of any consecutive two-year period constitute the Board of Directors (the “Incumbent Board”) cease for any reason to constitute at least a majority of such Board; provided that any individual who subsequently becomes a director of the Company and whose election, or nomination for election by the Company’s stockholders, was approved by the vote of at least a majority of the directors then comprising the Incumbent Board shall be deemed a member of the Incumbent Board; and provided further, that 

 

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any individual who was initially elected as a director of the Company as a result of an actual or threatened solicitation by a Person other than the Board for the purpose of opposing a solicitation by any other Person with respect to the election or removal of directors, or any other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board shall not be deemed a member of the Incumbent Board;

 

(3)              The consummation of a reorganization, merger or consolidation of the Company or sale or other disposition of all or substantially all of the assets of the Company (a “Corporate Transaction”); excluding, however, a Corporate Transaction pursuant to which (i) all or substantially all of the individuals or entities who are the beneficial owners, respectively, of the Outstanding Common Stock and the Outstanding Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than 50% of, respectively, the outstanding shares of common stock, and the combined voting power of the outstanding securities of such corporation entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate Transaction (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or indirectly) in substantially the same proportions relative to each other as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Common Stock and the Outstanding Voting Securities, as the case may be, (ii)  no Person (other than: the Company; any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company; the corporation resulting from such Corporate Transaction; and any Person which beneficially owned, immediately prior to such Corporate Transaction, directly or indirectly, 15% or more of the Outstanding Common Stock or the Outstanding Voting Securities, as the case may be) will beneficially own, directly or indirectly, 25% or more of, respectively, the outstanding shares of common stock of the corporation resulting from such Corporate Transaction or the combined voting power of the outstanding securities of such corporation entitled to vote generally in the election of directors and (iii) individuals who were members of the Incumbent Board will constitute at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction; or

 

(4)              The consummation of a plan of complete liquidation or dissolution of the Company.

 

(b)                           For purposes of this Agreement, the term “Subsidiary” shall mean any corporation in which the Company possesses directly or indirectly fifty percent (50%) or more of the total combined voting power of all classes of stock.

 

(c)                            Upon a Change in Control, any restricted stock, stock options or other equity awards granted to the Executive pursuant to the Ingredion Incorporated Stock Incentive Plan (the “Incentive Plan”) that are not vested shall vest on the date of Change in Control in 

 

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accordance with the terms of such plans and related agreements. The Executive’s beneficiary with respect to such benefits shall be the same person or persons as determined under the respective plan.

 

(d)                           Immediately prior to a Change in Control, the Company shall deliver to the Ingredion Incorporated Executive Benefit Trust, or a comparable “rabbi trust”, to be held for the benefit of the Executive thereunder, cash or marketable securities with a fair market value equal to the anticipated payments and benefits to be provided to the Executive hereunder, as determined by the Company in good faith, subject to approval by the Executive, which approval shall not unreasonably be withheld.

 

Article 2. Termination Following Change in Control

 

2.1        The Executive shall be entitled to the benefits provided in Article 3 hereof upon any termination of his employment with the Company and its Subsidiaries within a Protection Period, except a termination of employment because of his death, because of a “Disability,” by the Company for “Cause,” or by the Executive other than for “Good Reason.”

 

(a)                           Disability. The Executive’s employment shall be deemed to have terminated because of a “Disability” on the date on which the Executive becomes eligible to receive long-term disability benefits under the Company’s Master Welfare and Cafeteria Plan (the “Cafeteria Plan”) (or any other plan), or a similar long-term disability plan of a Subsidiary, or a successor to the Cafeteria Plan or to any such similar plan which is applicable to the Executive. If the Executive is not covered for long-term disability benefits by the Cafeteria Plan or a similar or successor long-term disability plan, the Executive shall be deemed to have terminated because of a “Disability” on the date on which he would have become eligible to receive long-term disability benefits if he were covered for long-term disability benefits by the Company’s Cafeteria Plan.

 

(b)                           Cause. Termination of the Executive’s employment by the Company or a Subsidiary for “Cause” shall mean termination by reason of (A) the Executive’s willful engagement in conduct which involves dishonesty or moral turpitude which either (1) results in substantial personal enrichment of the Executive at the expense of the Company or any of its Subsidiaries, or (2) is demonstrably and materially injurious to the financial condition or reputation of the Company or any of its Subsidiaries, (B) the Executive’s willful violation of the provisions of the confidentiality or non-competition agreement entered into between the Company or any of its Subsidiaries and the Executive or (C) the commission by the Executive of a felony. An act or omission shall be deemed “willful” only if done, or omitted to be done, in bad faith and without reasonable belief that it was in the best interest of the Company and its Subsidiaries. Notwithstanding the foregoing, the Executive shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to the Executive a written notice of termination from the Compensation and Nominating Committee of the Board or any successor thereto (the “Committee”) after reasonable notice to the Executive and an opportunity for the Executive, together with his counsel, to be heard before the Committee, finding that, in the good faith opinion of such Committee, the Executive was guilty of conduct set forth above in clause (A) or (B) of the first sentence of this subsection (b) and specifying the particulars in detail.

 

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(c)                            Without Cause. The Company or a Subsidiary may terminate the employment of the Executive without Cause during a Protection Period only by giving the Executive written notice of termination to that effect. In that event, the Executive’s employment shall terminate on the last day of the month in which such notice is given (or such later date as may be specified in such notice).

 

(d)                           Good Reason. Termination of employment by the Executive for “Good Reason” shall mean termination within a Protection Period:

 

(i)                  If there has occurred a reduction by the Company or a Subsidiary in the Executive’s base salary in effect immediately before the beginning of the Protection Period or as increased from time to time thereafter;

 

(ii)               If the Company or a Subsidiary, without the Executive’s written consent, has required the Executive to be relocated anywhere in excess of thirty-five (35) miles from his office location immediately before the beginning of the Protection Period, except for required travel on the business of the Company or a Subsidiary to an extent substantially consistent with the Executive’s business travel obligations immediately before the beginning of the Protection Period;

 

(iii)            If there has occurred a failure by the Company or a Subsidiary to maintain plans providing benefits substantially the same as those provided by any benefit or compensation plan, retirement or pension plan, stock option plan, life insurance plan, health and accident plan or disability plan in which the Executive is participating immediately before the beginning of the Protection Period, or if the Company or a Subsidiary has taken any action which would adversely affect the Executive’s participation in or materially reduce the Executive’s benefits under any of such plans or deprive the Executive of any material fringe benefit enjoyed by the Executive immediately before the beginning of the Protection Period, or if the Company or a Subsidiary has failed to provide the Executive with the number of paid vacation days to which he would be entitled in accordance with the applicable vacation policy of the Company or Subsidiary as in effect immediately before the beginning of the Protection Period;

 

(iv)           If the Company or a Subsidiary has reduced in any manner which the Executive reasonably considers important the Executive’s title, job authorities or responsibilities immediately before the beginning of the Protection Period;

 

(v)              If the Company has failed to obtain the assumption of the obligations contained in this Agreement by any successor as contemplated in Section 9.2 hereof; or

 

(vi)           If there occurs any purported termination of the Executive’s employment by the Company or a Subsidiary which is not effected pursuant to a written notice of termination as described in subsection (ii) or (iii) above; and for purposes of this Agreement, no such purported termination shall be effective.

 

The Executive shall exercise his right to terminate his employment for Good Reason by giving the Company a written notice of termination specifying in reasonable detail the 

 

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circumstances constituting such Good Reason. However, the Company shall have thirty (30) days to “cure” such that the circumstances constituting such Good Reason are eliminated. The Executive’s employment shall terminate at the end of such thirty (30)-day period only if the Company has failed to cure such circumstances constituting the Good Reason.

 

A termination of employment by the Executive within a Protection Period shall be for Good Reason if one of the occurrences specified in this subsection (d) shall have occurred (and subject to the cure provision of the immediately preceding paragraph), notwithstanding that the Executive may have other reasons for terminating employment, including employment by another employer which the Executive desires to accept.

 

(e)                            Transfers; Sale of Subsidiary. A transfer of employment from the Company to a Subsidiary, from a Subsidiary to the Company, or between Subsidiaries shall not be considered a termination of employment for purposes of this Agreement. If the Company’s ownership of a corporation is reduced so as to cause such corporation to cease to be a “Subsidiary” as defined in Section 1.1(b) of this Agreement and the Executive continues in employment with such corporation, the Executive shall not be considered to have terminated employment for purposes of this Agreement and the Executive shall have no right to any benefits pursuant to Article 3 unless (a) a Change in Control occurred prior to such reduction in ownership and (b) the Executive’s employment terminates within the Protection Period beginning on the date of such Change in Control under circumstances that would have entitled the Executive to benefits if such corporation were still a Subsidiary.

 

Article 3. Benefits Upon Termination Within Protection Period

 

3.1        If, within a Protection Period, the Executive’s employment by the Company or a Subsidiary shall terminate other than because of his death, because of a Disability, by the Company for Cause, or by the Executive other than for Good Reason, if the Executive signs a general release in a form acceptable to the Company that releases the Company from any and all claims that the Executive may have, and the Executive affirmatively agrees not to violate the provisions of Article 6 (a “General Release”), the Executive shall be entitled to the benefits provided for below:

 

(a)                           The Company or a Subsidiary shall pay to the Executive through the date of the Executive’s termination of employment base salary at the rate then in effect, together with salary in lieu of vacation accrued and unused to the date on which Executive’s employment terminates, and all other benefits due to Executive through the date of Executive’s termination of employment, in accordance with the standard payroll and other practices of the Company or Subsidiary.

 

(b)                           The Company or Subsidiary shall also pay to the Executive the amount equal to the target annual bonus established for the Executive under the Company’s Annual Incentive Program or a similar bonus plan of a Subsidiary (or a successor to any such bonus plan) for the fiscal year in which the Executive’s termination of employment occurs, reduced pro rata for that portion of the fiscal year not completed as of the date of the Executive’s termination of employment.

 

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(c)                            The Company or a Subsidiary shall pay the Executive as a severance payment an amount equal to three (3) times the sum of (A) his highest base salary in effect during any period of twelve (12) consecutive months within the thirty-six (36) months immediately preceding his date of termination of employment; and (B) the target annual bonus established for the Executive under the Company’s Annual Incentive Program or a similar bonus plan of a Subsidiary (or a successor to any such bonus plan) for the fiscal year in which the Executive’s termination of employment occurs. However, if the Executive is at least sixty-two (62) years of age as of the date of his termination of employment, the Committee shall have the discretion to alternatively provide the Executive a severance payment prorated for the number of full months until the Executive attains age sixty-five (65).

 

(d)                           If the Executive is a participant in the Executive Life Insurance Plan (“ELIP”) on the date of the Executive’s termination of employment, the Executive’s eligibility to participate in the ELIP with respect to a Policy (as defined in the ELIP) shall continue; provided that, during the thirty-six (36) or lesser month benefit continuation period described in Section 3.1(e) below, the Executive will attain at least age fifty-five (55) and would have completed, if the Executive’s termination of employment had not occurred, at least five (5) Policy Years (as defined in the ELIP) with respect to such Policy.

 

(e)                            Subject to (i) and (ii) below, the Company or a Subsidiary shall provide, at the exact same cost as to the Executive, and at the same coverage level, as in effect as of the Executive’s date of termination of employment, a continuation of the Executive’s (and, where applicable, the Executive’s eligible dependents’) welfare benefit coverage, including health insurance, dental insurance, group term life insurance and long-term disability insurance (but excluding any flexible spending accounts) for thirty-six (36) months from his date of termination of employment (the “Benefit Period”).  However, if the Executive is at least sixty-two (62) years of age as of the date of his termination of employment, the Committee shall have the discretion to alternatively provide the Executive’s (and the Executive’s eligible dependents’) health insurance coverage as described under this subsection (e) for the number of full months until the Executive attains age sixty-five (65). The Executive’s applicable COBRA health insurance benefit continuation period shall begin at the end of this thirty-six (36) or lesser month benefit continuation period.  If the Company is not able to provide under its welfare benefit plans for employees all or any portion of the welfare benefit coverage required to be provided to the Executive pursuant to this Section 3.1(e), the Company shall provide such coverage through alternative insurance coverage, at the exact same cost as to the Executive, and at the same level of benefits to the Executive, as in effect as of the date of the Executive’s termination of employment.

 

(i)                  If the Executive becomes covered under the health insurance, dental insurance, group term life insurance or long-term disability insurance coverage of a subsequent employer which does not contain any exclusion or limitation with respect to any preexisting condition of the Executive or the Executive’s eligible dependents, the Company’s obligation to provide health insurance, dental insurance, group term life insurance or long-term disability insurance coverage pursuant to this Section 3.1(e), whichever is applicable, shall be discontinued prior to the end of the thirty-six (36) 

 

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or lesser month continuation period. For purposes of enforcing this offset provision, the Executive shall have a duty to inform the Company as to the terms and conditions of any subsequent employment and the corresponding benefits earned from such employment. The Executive shall provide, or cause to provide, to the Company in writing correct, complete, and timely information concerning the same.

 

(ii)               If, as of the Executive’s date of termination of employment, the provision to the Executive of the health insurance, dental insurance, group term life insurance or long-term disability insurance coverage described in this Section 3.1(e) would either: (1) violate the terms of the Company’s health insurance, dental insurance, group term life insurance or long-term disability insurance plan (or any other related insurance policies), (2) violate any of the Code’s nondiscrimination requirements applicable to the health insurance, dental insurance, group term life insurance or long-term disability insurance coverage, or (3) cause the Executive to be subject to the excise tax under IRC 409A, then the Company, in its sole discretion, may elect to pay the Executive, in lieu of the health insurance, dental insurance, group term life insurance or long-term disability insurance coverage, described under this Section 3.1(e), whichever is applicable, cash payments equal to the total monthly premiums (or in the case of a self-funded health insurance plan, the cost of COBRA continuation coverage) that would have been paid by the Company for the Executive under the health insurance, dental insurance, group term life insurance or long-term disability insurance plan from the date of termination through the thirty-six (36) or lesser months following such date.

 

In the event that any health insurance, dental insurance, group term life insurance or long-term disability insurance coverage provided under this Section 3.1(e) is subject to federal, state, or local income or employment taxes (other than any such taxes which were applicable to the same extent to the Executive’s insurance coverage prior to the Executive’s termination of employment) or IRC Section 409A excise tax, or in the event that cash payments are made in lieu of all or a part of such insurance coverage, the Company shall provide the Executive with an additional payment in the amount necessary such that after payment by the Executive of all such taxes (calculated after assuming the Executive pays such taxes for the year in which the payment or benefit occurs at the highest marginal tax rate applicable), including any taxes imposed on the additional payments, the Executive effectively received coverage on a tax-free basis (other than any such taxes which were applicable to the same extent to the Executive’s insurance coverage prior to the Executive’s termination of employment) or retains a cash amount equal to the cash payments in lieu of insurance coverage provided pursuant to this Section 3.1(e), reduced by any such taxes which are applicable to the Executive’s insurance coverage same extent as prior to the Executive’s termination of employment.

 

(f)                             The Company shall also (i) credit to the Executive’s Cash Balance Plan Make-Up Account in the Company’s Supplemental Executive Retirement Plan or any successor plan (the “SERP”) an amount equal to the value of any benefits forfeited under the Company’s Cash Balance Plan for Salaried Employees or any successor plan and (ii) credit to the Executive’s Savings Plan Make-Up Account in the SERP an amount equal 

 

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to the value of any benefits forfeited under the Company’s Retirement Savings Plan for Salaried Employees or any successor plan.

 

(g)                            The Company shall provide the Executive with three (3) additional years of service credits under the Company’s Cash Balance Plan for Salaried Employees and under the Executive’s Cash Balance Plan Make-Up Account in the SERP or any successor plans. However, if the Executive is at least sixty-two (62) years of age as of the date of his termination of employment, the Company shall provide the Executive with a pro rata portion of three (3) additional years of service credits, based on the number of full months until the Executive attains age sixty-five (65).  All additional years of service credits (including credits under the Company’s Cash Balance Plan for Salaried Employees and under the Executive’s Cash Balance Plan Make-Up Account in the SERP)  will be calculated consistently with the provisions in the plans, will be based on target total cash compensation as of the date employment terminates (base salary plus target annual bonus), and will be credited to the Executive’s Cash Balance Plan Make-Up Account in the SERP.  Any distribution from the SERP with respect to such additional credits shall comply with Section 5.1.

 

(h)                           The Company shall credit to the Executive’s Savings Plan Make-Up Account in the SERP an amount equal to three (3) times the sum of (i) the employer matching contributions and profit sharing contributions made to the Executive’s accounts under the Company’s Retirement Savings Plan for Salaried Employees and (ii) the employer matching contributions and profit sharing contributions credited to the Executive’s Savings Plan Make-Up Account in the SERP or any successor plans, in each case for the most recent plan year that ended before the date of the Change in Control or, if higher, for the most recent plan year that ended after the date of the Change in Control (in either case, annualized to the extent that such plan year consisted of less than twelve (12) months and/or the Executive was not eligible to participate in the Company’s Retirement Savings Plan or Savings Plan Make-Up Account in the SERP, as applicable, for the full plan year).  However, if the Executive is at least sixty-two (62) years of age as of the date of his termination of employment, the Company shall provide the Executive with a pro rata portion of three (3) times the sum of such employer matching contributions and profit sharing contributions, based on the number of full months until the Executive attains age sixty-five (65).  Any distribution from the SERP with respect to such additional credits shall comply with Section 5.1.

 

(i)                               The Executive’s Cash Balance Plan Make-Up Account and Savings Plan Make-Up Account in the SERP shall be fully vested on the date of the Executive’s termination of employment.

 

(j)                              The Executive shall receive the cash value of his current retiree healthcare spending account (“RHCSA”) and related dependent healthcare spending account, plus the value of three (3) additional years of Company contributions to such accounts.  However, if the Executive is at least sixty-two (62) years of age as of the date of his termination of employment, the Company shall provide the Executive with a pro rata portion of the value of three (3) additional years of Company contributions to such accounts, based on the number of full months until the Executive attains age sixty-five (65).  The Executive 

 

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shall be immediately vested in his RHCSA and related dependent healthcare spending account on the date of the Executive’s termination of employment and the account balances will be paid out in accordance with the terms of the Company’s Master Retiree Welfare Plan or any successor plan. To the extent the Executive’s RHCSA and related dependent healthcare spending account may not be immediately vested and paid out under the Company’s Master Retiree Welfare Plan or any successor plan, such amounts shall be paid out of the general assets of the Company.  In addition, notwithstanding anything to the contrary in the Company’s Master Retiree Welfare Plan or any successor plan, the Executive shall be immediately eligible to participate in the benefits available to Retirees thereunder, and the Executive and the Executive’s spouse shall remain eligible for their lifetimes, to participate, on an after-tax basis in the event that the Executive’s RHCSA or dependent healthcare spending account, whichever is applicable, has a zero balance, to participate the benefits provided to Retiree’s under the Company’s Master Retiree Welfare Plan or any successor plan as of the date of the Executive’s termination of employment.  If the Company is not able to provide under its Master Retiree Welfare Plans or any successor plan all or any portion of the welfare benefit coverage required to be provided to the Executive and the Executive’s spouse pursuant to this Section 3.1(j), the Company shall provide such coverage through alternative insurance coverage.

 

(k)                           The Company shall provide the Executive with executive-level outplacement services for a period of one (1) year from the date of the Executive’s termination of employment. Such outplacement services shall be provided through an outplacement firm that is mutually agreed upon by the parties.

 

(l)                               The Company shall (i) pay the Executive a lump sum cash amount equivalent to the same level of personal allowances (such as club dues and automobile expenses) for the period of three (3) months, as the Executive received immediately prior to his termination of employment, and (ii) continue to pay the lease payments on the vehicle provided to the Executive by the Company for a period of three (3) months or, if less, the remainder of the lease period in effect as of the Executive’s date of termination of employment.  The Executive shall be entitled to the continued use of such vehicle during such period and to purchase the vehicle at the end of such period on the terms provided in the applicable lease agreement.

 

(m)                       All other rights and benefits that the Executive is vested in, pursuant to other plans and programs of the Company.

 

The Executive shall be entitled to all payments and benefits provided for by or pursuant to this Section 3.1 whether or not he seeks or obtains other employment, except as otherwise specifically provided in this Section 3.1.

 

Article 4. Benefits Upon Termination Outside of Protection Period

 

4.1        If, outside of a Protection Period, the Executive’s employment by the Company or a Subsidiary shall be terminated by the Company without Cause, if the Executive signs a General Release, the Executive shall be entitled to the benefits provided for below:

 

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(a)                           The Company or a Subsidiary shall pay to the Executive through the date of the Executive’s termination of employment base salary at the rate then in effect, together with salary in lieu of vacation accrued and unused to the date on which Executive’s employment terminates, and all other benefits due to Executive through the date of Executive’s termination of employment, in accordance with the standard payroll and other practices of the Company or Subsidiary.

 

(b)                           The Company or Subsidiary shall also pay to the Executive as a severance payment an amount equal to one (1) times his base salary in effect on the date of his date of termination of employment.

 

Article 5. Benefits Payment Schedule

 

5.1        Payment Schedule. Payments due to the Executive pursuant to Article 3 or Article 4 shall be paid as follows:

 

(a)                           If the Executive is not a “Specified Employee” (as that term is defined and determined under IRC Section 409A) or if the Executive is a Specified Employee, then only with respect to payments provided in Section 3.1 or 4.1 that are not deferred compensation subject to IRC Section 409A, as soon as administratively practicable, but in no event later than March 15 of the calendar year after the calendar year of the Executive’s date of Separation from Service (as defined under IRC Section 409A); and

 

(b)                           If the Executive is a Specified Employee, for payments that are deferred compensation subject to IRC Section 409A, as soon as administratively practicable on or after, but in no event later than the end of the calendar year in which such date occurs, or, if later, the 15th day of the third calendar month following such date, the date six (6) months following the Executive’s date of Separation from Service.

 

Notwithstanding the above, the Company’s obligation to pay severance amounts due to the Executive pursuant to Article 3 or Article 4, to the extent not already paid, shall cease immediately and such payments will be forfeited, if the Executive violates any condition described in Sections 6.1, 6.2, 6.3 or 6.4, after his termination of employment. To the extent already paid, should the Executive violate any condition described in Sections 6.1, 6.2, 6.3 or 6.4, after his termination of employment, the severance amounts provided hereunder shall be repaid in their entirety by the Executive to the Company, and all rights to such payments shall be forfeited.

 

Article 6. Restrictive Covenants

 

6.1        Confidentiality. The Company has advised the Executive and the Executive acknowledges that it is the policy of the Company to maintain as secret and confidential all Protected Information (as defined below), and that Protected Information has been and will be developed at substantial cost and effort to the Company. The Executive shall not at any time, directly or indirectly, divulge, furnish or make accessible to any person, firm, corporation, association, or other entity (otherwise than as may be required in the regular course of Executive’s employment), nor use in any manner, either during the Executive’s employment period or after the termination, for any reason, any Protected Information, or cause any such information of the Company or its Subsidiaries to enter the public domain. For purposes of this Agreement, “Protected Information” means trade secrets, confidential and proprietary business information of the Company or its Subsidiaries, and any other 

 

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information of the Company, including but not limited to, software, records, manuals, books, forms, documents, notes, letters, reports, data, tables, compositions, articles, devices, apparatus, customer lists (including potential customers), sources of supply, processes, plans, materials, pricing information, internal memoranda, marketing plans, internal policies, and products and services which may be developed from time to time by the Company, its Subsidiaries and its agents or employees, including the Executive; provided, however that information that is in the public domain (other than as a result of a breach of this Agreement), approved for release by the Company or lawfully obtained from third parties who are not bound by a confidentiality agreement with the Company, is not Protected Information.

 

6.2        Nonsolicitation. During the term of this Agreement and for a period after the Executive’s date of termination of employment equal to (i) thirty-six (36) months if the Executive’s employment by the Company or a Subsidiary is terminated within a Protection Period or (ii) twelve (12) months if the Executive’s employment by the Company or a Subsidiary is terminated outside of a Protection Period, the Executive shall not , directly or indirectly, other than on behalf of the Company or its Subsidiaries:

 

(A)          Induce or assist in the inducement of any individual away from the Company’s or any of its Subsidiaries’ employ or from the faithful discharge of such individual’s contractual and fiduciary obligations to serve the Company’s or any of its Subsidiaries’ interests with undivided loyalty; or

 

(B)          Induce or assist in the inducement of any individual or entity that provides services to the Company or any of its Subsidiaries to reduce any such services provided to, or to terminate their relationship with the Company or any of its Subsidiaries.

 

6.3        Noncompetition.  The Executive expressly acknowledges that the Company and its Subsidiaries market and sell products globally, and given the Executive’s substantial experience and expertise in the industry including his significant exposure, access to, and participation in the development of the Company’s and its Subsidiaries’ strategy, marketing, intellectual property and confidential and proprietary information, his business affiliation with any individual or entity that sells or develops products similar to, or that may serve as a substitute for, the Company’s or any of its Subsidiaries’ products, would cause substantial and irreparable harm to the Company’s, and/or its Subsidiaries’ business.  Accordingly, the Executive agrees that during his employment with the Company or any of its Subsidiaries, and for a period after the termination of his employment with the Company and its Subsidiaries equal to (i) thirty-six (36) months if the Executive’s employment by the Company or a Subsidiary is terminated within a Protection Period or (ii) twelve (12) months if the Executive’s employment by the Company or a Subsidiary is terminated outside of a Protection Period, the Executive shall not, directly or indirectly, other than on behalf of the Company or its Subsidiaries, participate or become involved as an owner, partner, member, director, officer, employee, or consultant, or otherwise enter into any business relationship, with any individual or entity anywhere in the world that develops, produces, manufactures, sells, or distributes starch, corn, rice, potato, oils, sweeteners, starches or other products produced by the Company or any of its Subsidiaries or that could be used as a substitute for such products including, but not limited to, Tapioca, Manioc, Yucca or Potato starches; Dextrose, Stevia-based or other high intensity sweeteners, Glucose, Polyols, HFCS, High 

 

12

 

Meltose syrup, texturants, and Maltodextrin sweeteners; Prebiotics; Omega-3; seed development, emulsifiers, encapsulants, non-synthetic green products, Plant derived calcium and minerals; Inulin fibers; Resins used in adhesives and fragrances; Corn oil; Gluten protein; and Caramel Color, and specifically including but not limited to the following entities that manufacture such or similar products:  ADM, Cargill, Bunge, Roquette, Penford, Staley, Tate & Lyle, and Avebe.

 

6.4        Ownership. The Executive agrees that all inventions, copyrightable material, business and/or technical information, marketing plans, customer lists, and trade secrets which arise out of the performance of this Agreement are the property of the Company.

 

6.5        Injunctive Relief.  The Executive acknowledges and agrees that the covenants contained in this Article 6 are reasonable in scope and duration, and are necessary to protect the Company’s, and its Subsidiaries’ legitimate business interests.  Without limiting the rights of the Company and/or its Subsidiaries to pursue any other legal and/or equitable remedies available to them for any breach by the Executive of the covenants contained in this Article 6, the Executive acknowledges that a breach of those covenants would cause a loss to the Company and/or its Subsidiaries for which it could not reasonably or adequately be compensated by damages in an action at law, that remedies other than injunctive relief could not fully compensate the Company and/or its Subsidiaries for a breach of those covenants and that, accordingly, the Company and/or its Subsidiaries shall be entitled to seek injunctive relief to prevent any breach or continuing breaches of the Executive’s covenants as set forth in this Article 6.  It is the intention of the parties that if, in any action before any court empowered to enforce such covenants, any term, restriction, covenant, or promise is found to be unenforceable, then such term, restriction, covenant, or promise shall be deemed modified to the extent necessary to make it enforceable by such court.

 

Article 7. No Other Severance Benefits; Right to Other Plan Benefits.

 

In the event of termination of the Executive’s employment under circumstances entitling the Executive to benefits hereunder, the Executive shall not be entitled to any other severance benefits except those provided by or pursuant to this Agreement, and the Executive hereby waives any claim against the Company or any of its Subsidiaries or affiliates for any additional severance benefits to which he might otherwise be entitled, including under any plan, program, policy or arrangement maintained by the Company or any of its Subsidiaries or affiliates.  Except as provided in the preceding sentence, nothing in this Agreement shall be construed as limiting in any way any rights or benefits that the Executive may have pursuant to the terms of any other plan, program, policy or arrangement maintained by the Company or any of its Subsidiaries or affiliates.

 

Article 8. Termination of Employment Agreements.

 

Any and all Employment Agreements entered into between the Company or any of its Subsidiaries and the Executive prior to the date of this Agreement are hereby terminated.

 

Article 9. Termination and Amendment; Successors; Binding Agreement.

 

9.1        This Agreement shall terminate on the close of business on the date preceding the one-year anniversary of the date of this Agreement; provided, however, that commencing on the annual anniversary of the date of this Agreement and each anniversary of the date of this Agreement thereafter, the term of this Agreement shall automatically be extended for one additional year unless at least six (6) months prior to such anniversary date, the Company or the Executive shall have given 

 

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notice to the other party, in accordance with Article 10, that this Agreement shall not be extended. This Agreement may be amended only by an instrument in writing signed by the Company and the Executive. The Company expressly acknowledges that, during the term of this Agreement, the Executive shall have a binding and irrevocable right to the benefits set forth hereunder in the event of his termination of employment during a Protection Period to the extent provided in Section 2.1. Any purported amendment or termination of this Agreement by the Company, other than pursuant to the terms of this Section 9.1, shall be ineffective, and the Executive shall not lose any right hereunder by failing to contest such a purported amendment or termination.

 

9.2        The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company or to any subsidiary that employs the Executive, to expressly assume and agree to honor this Agreement in the same manner and to the same extent that the Company would be required to so honor if no such succession had taken place. Failure of the Company to obtain such agreement prior to the effectiveness of any such succession shall be a violation of this Agreement and shall entitle the Executive to benefits from the Company or such successor in the same amount and on the same terms as the Executive would be entitled hereunder if he terminated his employment for Good Reason, except that for purposes of implementing the foregoing, the date on which any such succession becomes effective shall be deemed the date of termination of employment. As used in this Section 9.2, “Company” shall mean the Company hereinbefore defined and any successor to its business and/or assets as aforesaid which executes and delivers the agreement provided for in this Section 9.2 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law. The Company shall promptly notify the Executive of any succession by purchase, merger, consolidation or otherwise to all or substantially all the business and/or assets of the Company and shall state whether or not the successor has executed the agreement required by this Section 9.2 and, if so, shall make a copy of such agreement available to the Executive.

 

9.3        This Agreement and all rights of the Executive hereunder shall inure to the benefit of, and shall be enforceable by, the Executive and the Executive’s legal representatives. If the Executive should die while any amounts remain payable to his hereunder, all such amounts shall be paid to his designated beneficiary or, if there be no such beneficiary, to his estate.

 

9.4        The Company expressly acknowledges and agrees that the Executive shall have a contractual right to the benefits provided hereunder, and the Company expressly waives any ability, if possible, to deny liability for any breach of its contractual commitment hereunder upon the grounds of lack of consideration, accord and satisfaction or any other defense. If any dispute arises after a Change in Control as to whether the Executive is entitled to benefits under this Agreement, there shall be a presumption that the Executive is entitled to such benefits and the burden of proving otherwise shall be on the Company.

 

9.5        The Company’s obligation to provide the benefits set forth in this Agreement shall be absolute and unconditional and shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, or other right which the Company or any Subsidiary may have against the Executive or anyone else. All amounts payable by the Company hereunder shall be paid without notice or demand. Each and every payment made hereunder by the Company or any Subsidiary shall be final, and neither the Company nor any Subsidiary will seek to 

 

14

 

recover all or any portion of such payment from the Executive or from whomsoever may be entitled thereto, for any reason whatsoever.

 

Article 10. Notice.

 

All notices of termination and other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand or mailed by United States registered mail, return receipt requested, addressed as follows:

 

If to the Executive:

 

 

 

 

If to the Company:

 

Ingredion Incorporated

5 Westbrook Corporate Center

Westchester, IL 60154

Attention: Vice President – Human Resources

 

or to such other address as either party may have furnished to the other in writing in accordance herewith.

 

Article 11. Miscellaneous.

 

No provision of this Agreement may be waived or modified unless such waiver or modification is in writing and signed by the Executive and the Company’s Chief Executive Officer or such other officer as may be designated by the Board. No waiver by either party of any breach by the other party of, or compliance with, any provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions at the same or any prior or subsequent time. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Illinois, without regard to its principles of conflict of laws, and by applicable laws of the United States.

 

Article 12. Validity.

 

The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision, which shall remain in full force and effect.

 

Article 13. Legal Expenses; Dispute Resolution; Arbitration; Pre-Judgment Interest.

 

13.1      The Company shall promptly pay all legal fees and related expenses incurred by the Executive in seeking to obtain or enforce any right or benefit under this Agreement (including all fees and expenses, if any, incurred in seeking advice in connection therewith).

 

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13.2      If any dispute or controversy arises under or in connection with this Agreement, including without limitation any claim under any Federal, state or local law, rule, decision or order relating to employment or the fact or manner of its termination, the Company and the Executive shall attempt to resolve such dispute or controversy through good faith negotiations.

 

13.3      If such parties fail to resolve such dispute or controversy within ninety days, such dispute or controversy shall, if the Executive so elects, be settled by arbitration, conducted before a panel of three arbitrators in Chicago, Illinois in accordance with the applicable rules and procedures of the Center for Public Resources then in effect. Judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction. Such arbitration shall be final and binding on the parties. Costs of any arbitration, including, without limitation, reasonable attorneys’ fees of both parties, shall be borne by the Company.

 

13.4      If such parties fail to resolve such dispute or controversy within ninety days and the Executive does not elect arbitration, legal proceedings may be instituted, in which event the Company shall be required to pay the Executive’s legal fees and related expenses to the extent set forth in Section 13.1 above.

 

13.5      Pending the resolution of any arbitration or court proceeding, the Company shall continue payment of all amounts due the Executive under this Agreement and all benefits to which the Executive is entitled, including medical and life insurance benefits, other than those specifically at issue in the arbitration or court proceeding and excluding long term disability benefits.

 

13.6      If the Executive is awarded amounts pursuant to arbitration or court proceeding, the Company shall also pay pre-judgment interest on such amounts calculated at the Prime Rate (as defined below) in effect on the date of such payment. For purposes of this Agreement, the term “Prime Rate” shall mean the prime rate as published in the Wall Street Journal Midwest edition showing such rate in effect as of the first business day of each calendar quarter.

 

* * * * *

 

IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written.

 

 

	
 
    	
 
    
	
 
    	
 
    	
Executive
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Ingredion   Incorporated
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Company Representative Position
    

 

16Exhibit 10.38

 

5 Westbrook Corporate Center

Westchester, IL 60154

 

PERSONAL & CONFIDENTIAL

 

September 02, 2013

 

Assignment details for Ricardo Souza

Mexico to Brazil

 

Dear Ricardo:

 

On behalf of Ingredion (the “Company”), we are pleased to confirm the terms and conditions of your international assignment to Brazil (the “Host”) as Senior Vice President & President, South America Ingredient Solutions, reporting to Ilene Gordon.  These terms and conditions will take effect from the start of the international assignment. Your international assignment is subject to the Host obtaining the necessary work permit for you to be eligible to start work in the Host Country on the date that the international assignment starts.

 

The administrative arrangements and allowances to assist you in your move to the Host Country, and those available during your international assignment, are set out in the ‘Schedule’ accompanying this letter.  During your international assignment, you will be required to comply with the laws of the Host Country and follow the rules and practices of the Host.

 

Save as varied by this letter and the Schedule, your terms and conditions of employment with the Company remain unchanged.

 

1.              IDENTITY OF EMPLOYER

 

During your international assignment you will remain an employee of the Company’s Mexican entity.  Your terms and conditions of employment will continue while you are in Brazil except in so far as modified by this letter and the Schedule.

 

2.              DURATION

 

It is intended that your international assignment to the Host Country shall begin on January 1, 2014.  Subject to satisfactory performance, it shall continue for a period of 21 months. The period in the Host Country will be treated as a period of continuous employment with the Company for both statutory and contractual purposes and will count towards any of your service-related entitlements, including pension.

 

3.              REMUNERATION

 

Details of your base salary and provision for the payment of all taxes are set out in the Schedule.

 

 

4.              CONFIDENTIALITY AND INTELLECTUAL PROPERTY RIGHTS AND CONTINUING PROVISIONS

 

4.1       The terms and conditions of your employment with the Company with respect to confidential information and intellectual property rights in materials, patents and inventions discovered by you will remain in full force and effect.

 

5.              ALLOWANCES

 

All of the allowances associated with your international assignment are set out in the Schedule.  The data used to calculate these allowances is subject to periodic review.  You will be advised of any changes prior to their implementation.

 

6.              LOCAL WORKING RULES AND PRACTICES

 

6.1       During your international assignment you will be required to observe the Host’s working rules and practices then in force and as amended from time to time. You will be subject to the Host’s disciplinary and grievance procedures. However, no disciplinary sanction may be imposed by the Host without prior knowledge and approval of Diane Frisch, Senior Vice President, Human Resources. Details of all rules and practices applicable to you during your international assignment are in the Host’s staff handbook (or similar publication), a copy of which will be provided to you by the Host’s HR Department.

 

6.2          If there is any conflict between a provision of this letter and/or the Schedule and the local working rules and practices of the Host, then the terms of this letter and the Schedule shall apply.

 

7.              TERMINATION

 

7.1          The Company may terminate the international assignment by giving to you two months’ written notice.  Upon termination of the international assignment, the allowances and other arrangements applicable during the period of your international assignment will cease.

 

7.2       You and the Company may terminate your employment with the Company in accordance with the terms and conditions of your employment with the Company.  Other than for reason of cause, the Company will not serve notice of termination of your employment until the date on which your international assignment comes to an end, whether because the assignment period has expired or because it has been terminated on two month’s notice in accordance with clause 7.1.

 

8.              GOVERNING LAW

 

This international assignment letter and the Schedule will be governed by and construed in accordance with the laws of the Home Country and you agree that the courts of the Home Country will have exclusive jurisdiction.

 

9.              ACCEPTANCE

 

If you are in agreement with the terms set out above and the provisions in the Schedule please sign and return this letter, initialling each page of the Schedule.  This will indicate your agreement to and acceptance of the terms of this letter and the Schedule, and will amend the terms and conditions of your employment with the Company.

 

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Sincerely,
    
	
 
    
	
 
    
	
/s/ Diane Frisch
    	
 
    
	
Diane Frisch
    	
 
    
	
Senior Vice President, Human   Resources, Ingredion
    	
 
    

 

To accept this offer, please sign below and initial each page.

 

I accept the international assignment on the terms and conditions set out above and in the attached Schedule. I agree that these provisions amend the terms and conditions of my contract of international assignment with the Company.

 

 

	
Signed 
    	
/s/Ricardo de Abrue Souza
    	
 
    
	
 
    	
 
    	
 
    
	
Date
    	
09/02/13
    	
 
    

 

cc:           Ilene Gordon

Marcelo Couto

Corporate Compensation

 

Deloitte

Mercer

 

Attachments:  Schedule

 

3

 

SCHEDULE

 

Administrative Arrangements and Allowances

 

1.              LOCATION

 

During your International Assignment, you will based in Sao Paulo, Brazil.

 

2.              REMUNERATION

 

2.1       Base Salary

 

Your international assignment salary (Home Base Salary) will be maintained to a US equivalent of $450,447 gross per annum.  The payment and all deductions will be made in the Home Country currency through the Home payroll unless otherwise stated in this Letter and/or Schedule. For base salary purposes, the FX rate between Mexico and the US will be reviewed and the home base salary adjusted twice per year; February and July. Select allowances will be delivered through the Host payroll system in accordance with statutory payroll delivery requirements in Brazil.

 

This new salary is inclusive of your 2014 merit increase and your base salary will next be reviewed in 2015 with corresponding changes effective April, 2015.

 

2.2       International Living Allowance

 

You will receive an annual net international living allowance equal to 5% of your Home Salary, delivered in the Host. The allowance is payable with the same frequency as regular Host payroll delivery cycle, and will be reviewed whenever your Home gross salary is reviewed.  The percentage base of the allowance will remain at 5% and will not be adjusted during your international assignment.  Currently, the annual net amount is BRL 57,044.

 

3.              OTHER BENEFITS

 

3.1       Short Term Incentive Plan

 

You will be eligible to participate in the Annual Incentive Plan, (AIP), and your targets will be aligned with the business performance of the Company and its applicable regions. The bonus award will be delivered by the Home Country and will be calculated based on the Company’s target award. Any such payments will be made to you after deductions for tax at the applicable Home Country rates. Any benefits arising under this plan will be based on your 12-month Home Salary at the end of the annual incentive plan review period. The target award will be 75% of your Home Salary.

 

4

 

3.2       Long Term Incentive Plan

 

Based on the level of this position, you will continue to be eligible to participate in Ingredion’s Long-term Incentive program. All awards granted as an eligible participant of this program are based on performance. The value of your award delivered in 2014 will be USD $400,000.

 

3.3       Retirement

 

During your international assignment, you will continue to participate in the pension plan based in Mexico.

 

4.   STATE BENEFITS

 

Throughout the duration of this assignment you will continue to participate in all applicable statutory home-based Social benefit Programs. This will include the statutory “13-month” salary which will be delivered through the Mexico payroll system, per the current payroll delivery schedule.

 

5.   TAXATION

 

5.1  Host Country Taxation

 

You will be responsible for complying with any and all applicable income tax regulations in your home and host country and in any other countries where you are required to pay taxes as a result of your assignment.  During this assignment, required income tax returns will be prepared by the Company’s designated tax services provider (currently Deloitte Tax LLP) at the Company’s expense.  If you choose to use the services of another provider for tax matters, this will be at your own expense, and you will no longer be provided with tax equalized benefits.

 

Representatives of the Company’s dedicated tax services provider will conduct meetings with you to ensure your familiarity with your home and host country’s tax requirements as well as your responsibilities in the tax filing process.  Should you choose to utilize the Company’s designated tax provider, you must furnish all information necessary to complete your income tax returns on a timely basis so that you and the company meet relevant fiscal and statutory regulations.  Any additional costs incurred due to information you provide which is incomplete, inaccurate, or not provided on a timely basis will be passed on to you.

 

The company will pay for advice in relation to general circumstances required for the preparation of your home and host country income tax returns and other matters related to your relocation, but if you have personal assets or investments which may materially affect your position, then such costs of advice on these matters will generally be your responsibility.

 

The Company will pay for extension filings relating to tax years of assignment, if applicable as well as responses to notices received in relation to Ingredion compensation or tax positions related to your assignment.

 

5

 

5.2 Tax Equalization

 

As you may be aware, as a result of your services outside of Mexico, you may become liable for foreign income taxes on the wages earned outside of Mexico.  In order to neutralize the financial impact to you, you will be eligible for tax equalization during your assignment outside of Mexico.  The objectives of tax equalization are:

 

1.   To ensure that an employee on assignment outside the home country does not suffer an additional tax liability or benefit from a tax gain as a result of services performed outside the home country.

 

2.   To provide professional tax return preparation assistance to the employee to ensure compliance with home country expatriate tax laws as well as the tax laws of the host country.

 

Thus, tax equalization is designed to ensure that your income tax burden while on assignment will be approximately the same as your home country income tax would have been, regardless of the country to which you are assigned.  It is the Company’s intent that assignment allowances and reimbursements are tax free to you. You will bear the approximate equivalent of home country (and local, if applicable) income and social taxes on Company income and personal earnings that would have been incurred had you remained in the home country.  The Company’s designated tax services provider will prepare your tax equalization settlement subsequent to the preparation of your home country tax returns.

 

The hypothetical tax withheld will be based on the state in which you worked and resided prior to the assignment.  All appropriate state tax rates and rules will be applied in computing the tax.  This provision also applies to city taxes, where city taxes are imposed.

 

For tax purposes, income is generally sourced based on the physical location of the taxpayer while performing the services, irrespective of the fact that the taxpayer remains on the Mexico payroll.   Any benefit from foreign tax credits that arise as a result of this foreign source income may result in a benefit available on your individual income tax return.  This benefit may be property of the Company and if so should be remitted to the company.  The Company has the right to require you to file an amended tax return, prepared by the Company’s designated tax provider, to claim an anticipated tax benefit associated with the international assignment.

 

Any tax reimbursement or tax gross-up due to you will be made as soon as administratively possible after the amount is determined.  However, in no event will the tax payment be made after the later of:  (a) the end of the second tax year in which your related tax return is required to be filed for the year to which the compensation subject to the tax payment relates, or (b) the end of the second taxable year after your foreign tax return or payment is due.

 

6.    LEAVE/VACATION ENTITLEMENT

 

6.1       During your employment to the Host, your vacation entitlement will be determined by the Home country vacation policy, or you will be entitled to 4 weeks of vacation, whichever is higher.  Home leave trips are included in your vacation entitlement.   During your employment, the Host’s practice regarding leave reporting and recording will apply to your employment and must be taken in accordance with those local rules and practices.  All leave entitlement accrued during your employment should be taken before the end of the employment.

 

6

 

6.2       The company will provide you with two home leave trips every 12 months of the assignment, travel class in accordance with the corporate travel policy. You are required to keep all travel ticket receipts for taxation purposes.

 

6.3      In addition to basic entitlement, you are also eligible for any public holidays given in the Host Country.

 

7.              ACCOMMODATIONS AND TRANSPORTATION OF PERSONAL EFFECTS

 

7.1       During the international assignment you will be provided with a monthly accommodations allowance of BRL 25,000, net of taxes.

 

7.2       If rental accommodation is furnished, the Company will pay reasonable expenses for transport of personal belongings and household effects.  If furnished housing is not available, shipment of furniture and personal goods is permitted; maximum volume is one 40ft container sea shipment and 500 lbs (226.8 kg) air shipment.

 

You will be responsible for the cost of insuring your personal effects while on international assignment.

 

7.3       You will also be responsible for the costs of all utilities incurred in connection with your occupation of the Host Country accommodation, including but not limited to electricity, gas, water and telephone supplies.

 

7.4       If you choose to sell your Home Country property or release rented property immediately before or during your international assignment, your net assignment salary will be reduced by a ‘housing deduction’ calculated as 15% of your Adjusted Home Salary.

 

Should you maintain a Home Country property, you will receive net USD 3,600 per year for the cost of reasonable and customary property management services for your Home Country property while on assignment. You will be responsible for securing the property management services for your Home country property according to the specific services required.

 

You will also be reimbursed for required utilities for your Home Country housing upon submission of the documented expenses.  Reimbursable utilities include gas, electricity and water/refuse.  Costs related to telephone and television will not be reimbursed.

 

You are requested to notify Corporate Compensation if your housing situation changes in your Home Country and adjustments to allowances and taxation will be executed as necessary.

 

7.5       On the termination of the international assignment and in the event your employment does not continue in Mexico on local terms, other than in circumstances where your employment ends by reason of the termination of your employment with the Company by your resignation or your dismissal for cause, the Host will pay cover reasonable removal expenses from the Host Country to support your repatriation.

 

7

 

8.              RELOCATION ALLOWANCE

 

8.1       In the month in which your assignment starts and ends, you will be paid a one-time net relocation allowance equivalent to USD 10,000.  This allowance will be delivered to you by the Company’s relocation partner, and is intended to cover furnishings, electronics, and other indefinable expenses associated with your transfer and resettlement.

 

8.2       No other relocation expenses, except where outlined elsewhere in this letter, will be paid.

 

9. COST OF LIVING ADJUSTMENT (COLA)

 

The Cost of Living Adjustment (Cola) will be applied during your international assignment to account for differentials in living costs between your Home and Host Countries.

 

This COLA will be reviewed from time to time, up to two times per year. The COLA may either increase or decrease and has currently been set at BRL 137,622 per year. This amount will be provided to you on a net basis and will be delivered through the Host payroll at the onset of your assignment, and will be delivered with the same frequency as the regular payroll schedule in Brazil.

 

10.  HOST COUNTRY CAR

 

While on assignment, you will receive a company car allowance in accordance with the Brazil car policy.

 

11. INSURANCES

 

During your international assignment, you will participate in the Ingredion International Assignee medical benefit programs and your health coverage will be provided by Cigna. During this period, your participation in home-based medical insurance programs in Mexico will continue as well.

 

8

 

 

	
TO:
    	
Ricardo   Souza
    
	
 
    	
 
    
	
FROM:
    	
Leslie   Retcher
    
	
 
    	
 
    
	
CC:
    	
Diane   Frisch, Marcelo Couto, Robert Simitz
    
	
 
    	
 
    
	
SUBJECT:
    	
Three-month   salary “true up” schedule
    
	
 
    	
 
    
	
DATE:
    	
February 19,   2014
    

 

As approved by the compensation committee and in consideration of our commitment to deliver your 13-month base salary in MXN as a “fixed” annualized amount equivalent to USD 493,347 (effective 1/1/2014), a review of your 13-month annual salary will be conducted as per the following methodology and schedule going forward:

 

·                  A review of the three-month rolling average foreign exchange rate of MXN to USD has been conducted for the period dated 10/1/2013 — 12/31/2013, and your base salary will be updated to reflect the MXN equivalent based on the approved, fixed USD amount as of January 1, 2014.

 

·                  Using the official average FX rate as reported by Mexico bank system and Ingredion’s finance team in Mexico for the period of 10/1/13 — 12/31/13, the average exchange was 13.0277 MXP to every $1 USD.  As such, your annualized 13-month salary updated as of 1/1/2014 will be 6,427,176MXP / year for the period of 1/1/2014 — 3/31/2014, and will be delivered to you in accordance with the local Mexico payroll schedule and process, less applicable hypothetical taxes and withholdings.

 

·                  The same review and update will occur as of March 30, 2014, again assessing the three month rolling average exchange for the months of January, February and March, and your salary will be updated as of April 1, 2014 to the approved USD equivalent.

 

·                  This methodology for updating your salary against the approved USD equivalent will be conducted every three months thereafter for the duration of your assignment.

 

 

	
Signature:
    	
/s/   Ricardo de Abreu Souza
    	
 
    
	
 
    	
 Ricardo   Souza
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Date:
    	
01/30/2014

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