Document:

inddirectordefstock2009.htm

    Exhibit
10.2

     

    

    2009
INDEPENDENT DIRECTOR DEFERRED STOCK AWARD AGREEMENT

     

    

     

    Name of
Independent Director:                

     

    This
Agreement evidences the grant by Compass Minerals International, Inc., a
Delaware corporation (the “Company”) of Deferred Stock to the above-referenced
“Director” on April 1, 2009; July 1, 2009; October 1, 2009; and January 1, 2010
(each a “Quarterly Grant Date”) pursuant to the Compass Minerals International,
Inc. 2005 Incentive Award Plan, as amended from time to time (the
“Plan”).  By accepting the Award, Director agrees to be bound in
accordance with the provisions of the Plan, the terms and conditions of which
are hereby incorporated in this Agreement by reference.  Capitalized
terms not defined herein shall have the same meaning as used in the
Plan.

     

    1.      Deferred
Stock.  The number of shares of Deferred Stock subject to this
Agreement shall be determined as of each Quarterly Grant Date and shall be equal
to the ratio of (A) the aggregate value of the Director’s fees for the
applicable calendar quarter to be paid in the form of Deferred Stock pursuant to
Director’s election on Exhibit A attached hereto, to (B) the Fair Market Value
per share of Stock as of such Quarterly Grant Date.

     

    2.      Accounting for Deferred
Stock.  The Company shall maintain a separate bookkeeping
account (the “Deferred Stock Account”) to reflect the shares of Deferred Stock
subject to this Agreement.  Such Deferred Stock Account shall be
administered in a manner consistent with the Compass Minerals International,
Inc. Directors’ Deferred Compensation Plan.

     

    3.      Vesting.  The
Deferred Stock shall be 100% vested at all times.

     

    4.      Payment Following
Separation.  At the time Director ceases to be a member of the
Board for any reason, Director shall be entitled to receive payment equal to the
number of shares of Deferred Stock subject to this Agreement.  Such
payment shall be made in whole shares of Stock (with cash for fractional shares)
in either (i) a single lump sum or (ii) annual installments over a period of not
less than two years nor more than ten years.  Director shall designate
the form of payment on an election form filed with the Secretary of the Company
no later than the close of Director’s taxable year immediately preceding the
taxable year with respect to which this Agreement relates.

     

    5.  Payment Following Change of
Control.  Notwithstanding Section 4 or any other provision of
the Agreement to the contrary, if a Change of Control of the Company occurs
prior to the complete distribution of a Director’s benefit under this Agreement,
then any portion of such benefit that has not theretofore been distributed shall
be distributed in a single lump sum to Director (or, as applicable, his
beneficiary) immediately following the Change of Control.

     

    6.      Payment Upon Death;
Beneficiary Designation.  Director shall have the right to
designate a beneficiary who is to succeed to his or her right to receive
payments hereunder in the event of death.  Any designated beneficiary
shall receive payments in the same manner as Director if he or she had
lived.  In case of a failure of designation or the death of a
designated beneficiary without a designated successor, Director’s remaining
benefit shall be paid in full to his or her surviving spouse (or if none,
Director’s estate) as soon as administratively practicable following Director’s
death.  No designation of beneficiary or change in beneficiary shall
be valid unless it is in writing signed by the Director and filed with the
Secretary of the Company.

     

     

    
      
        
        

      

      
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    7.      Voting and Dividend
Rights.  Director shall have no voting rights with respect to
the Deferred Stock awarded hereunder.  Pursuant to Section 8.4 of the
Plan, Director shall be entitled to receive Dividend Equivalents with respect to
the Deferred Stock subject to this Agreement.  Such Dividend
Equivalents shall be credited to the Deferred Stock Account as of  the
date the Company pays any dividend (whether in cash or in kind) on shares of
Stock in an amount equal to the ratio of (A) the aggregate value of the dividend
that would have been payable on the Deferred Stock held by the Director
immediately prior to such payment date had the shares of Stock represented by
such Deferred Stock been outstanding as of such payment date to (B) the Fair
Market Value per share of Stock as of such date.  All deferred stock
issued in 2008 reflecting dividends on deferred stock (whether previously issued
under this Award or otherwise) will be issued under the Plan.

     

    8.      Permitted Transfers.
The rights under this Agreement may not be assigned, transferred or otherwise
disposed of except by will or the laws of descent and distribution and may be
exercised during the lifetime of Director only by Director. Upon any attempt to
assign, transfer or otherwise dispose of this Agreement, or any right or
privilege conferred hereby, or upon any attempted sale under any execution,
attachment or similar process, this Agreement and the rights and privileges
conferred hereby immediately will become null and void.

     

    9.  Unfunded
Obligation.  This Agreement is designed and shall be
administered at all times as an unfunded arrangement and Director shall be
treated as an unsecured general creditor and shall have no beneficial ownership
of any assets of the Company.

     

    10.  Taxes.  Director
will be solely responsible for any federal, state or other taxes imposed in
connection with the granting of the Deferred Stock or the delivery of shares of
Stock pursuant thereto, and Director authorizes the Company or any Subsidiary to
make any withholding for taxes which the Company or any Subsidiary deems
necessary or proper in connection therewith.  Upon recognition of
income by Director with respect to the Award hereunder, the Company shall
withhold taxes pursuant to the terms of the Plan.

     

    11.  Changes in
Circumstances.  It is expressly understood and agreed that
Director assumes all risks incident to any change hereafter in the applicable
laws or regulations or incident to any change in the value of the Deferred Stock
or the shares of Stock issued pursuant thereto after the date
hereof.

     

    12. Conflict Between Plan and
This Agreement.  In the event of a conflict between this
Agreement and the Plan, the provisions of the Plan shall govern.

     

    13 Notices.  All
notices, claims, certificates, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given and
delivered if personally delivered or if sent by nationally-recognized overnight
courier, by telecopy, or by registered or certified mail, return receipt
requested and postage prepaid, addressed as follows:

     

    If to the
Company, to it at:

     

    Compass
Minerals International, Inc.

     

    9900 West
109th Street

     

    Overland
Park KS 66210

     

    Attn:
Vice President Human Resources

     

    

    
      
        
        

      

      
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    If to
Director, to him or her at the address set forth on the signature page hereto or
to such other address as the party to whom notice is to be given may have
furnished to the other party in writing in accordance herewith.  Any
such notice or communications shall be deemed to have been received (a) in the
case of personal delivery, on the date of such delivery (or if such date is not
a business day, on the next business day after the date of delivery), (b) in the
case of nationally-recognized overnight courier, on the next business day after
the date sent, (c) the case of telecopy transmission, when received (or if not
sent on a business day, on the next business day after the date sent), and (d)
in the case of mailing, on the third business day following that on which the
piece of mail containing such communication is posted.

     

    14           Governing
Law.  This Agreement shall be governed under the laws of the
State of Delaware without regard to the principles of conflicts of
laws.  Each party hereto submits to the exclusive jurisdiction of the
United States District Court for the District of Kansas (Kansas City, Kansas).
Each party hereto irrevocably waives, to the fullest extent permitted by law,
any objections that either party may now or hereafter have to the aforesaid
venue, including without limitation any claim that any such proceeding brought
in either such court has been brought in an inconvenient forum, provided
however, this provision shall not limit the ability of either party to enforce
the other provisions of this paragraph.

     

    15  Severability. It is
the desire and intent of the parties hereto that the provisions of this
Agreement be enforced to the fullest extent permissible under the laws and
public policies applied in each jurisdiction in which enforcement is
sought.  Accordingly, if any particular provision of this Agreement
shall be adjudicated by a court of competent jurisdiction to be invalid,
prohibited or unenforceable for any reason, such provision, as to such
jurisdiction, shall be ineffective, without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction.  Notwithstanding the foregoing,
if such provision could be more narrowly drawn so as not to be invalid,
prohibited or unenforceable in such jurisdiction, it shall, as to such
jurisdiction, be so narrowly drawn, without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction.

     

    16  Enforcement.  In
the event the Company or Director institutes litigation to enforce or protect
its rights under this Agreement or the Plan, the party prevailing in any such
litigation shall be paid by the non-prevailing party, in addition to all other
relief, all reasonable attorneys’ fees, out-of-pocket costs and disbursements of
such party relating to such litigation.

     

    17.  Waiver of Jury
Trial.  Each party hereto hereby irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do
so, trial by jury in any suit, action or proceeding arising
hereunder.

     

    18.   Counterparts.  This
Agreement may be executed in one or more counterparts, and each such counterpart
shall be deemed to be an original, but all such counterparts together shall
constitute but one agreement.

     

    [Signature
page to follow]

     

    

    
      
        
        

      

      
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    IN WITNESS WHEREOF, the
parties hereto have executed this Agreement.

     

    COMPASS
MINERALS INTERNATIONAL, INC.

     

    By:       /s/ Victoria
Heider                                    

    Name:  Victoria
Heider, VP of Human
Resources        

    Date:                                                      

     

    

     

    

     

    DIRECTOR

     

    

     

    ______________________________

     

     

    Date

     

    

     

    Residence
Address

     

    

     

    _______________________________

     

    _______________________________

     

    

     

    
      
        
        

      

      
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    EXHIBIT
A TO 2009 INDEPENDENT DIRECTOR DEFERRED STOCK AWARD

     

    

     

    ___________________________________________________________________________________________     

    Last
Name            First Name            MI                  Social
Security Number

     

    _____________________________________________________________________________________________

    Mailing
Address                      City                                                              State                                                                      Zip
Code

     

    _________________________                                                                ____________________________

    Telephone                     
    
                                               Email
Address

     

    _____________________________________________________________________________________________

     

    

     

    Instruction:  Elections
must be made on or before December 31 of the year immediately preceding the year
with respect to which the award relates.  Any person who first becomes
a Director during a calendar year, and who was not a Director of the Company on
the preceding December 31, may elect, no later than seven days after the
Director’s term begins, to defer payment of all or a specified part of his or
her fees payable for the remainder of such year.

     

    SECTION
1 - DEFERRAL ELECTION

     

    A.           Cash
Retainer

    

    I elect
to receive the following portion of my annual cash retainer in the form of
Deferred Stock under the Compass Minerals International, Inc. 2005 Incentive
Award Plan:

    

    _______%
(insert 0%; 25%; 50%; 75%; or 100%)

    

    B.           Stock
Retainer

    

    Instruction:  In
connection with the minimum shareholder ownership requirements for non-employee
directors, your annual stock retainer will be automatically issued in the form
of Deferred Stock until your total shareholder ownership (or equivalent) equals
or exceeds five times your annual cash retainer.  Once you attain the
minimum shareholder ownership threshold, the automatic deferral requirement will
no longer apply, beginning with the first year following the year in which the
minimum threshold is achieved.

    

    I elect
to receive the following portion of my annual cash retainer in the form of
Deferred Stock under the Compass Minerals International, Inc. 2005 Incentive
Award Plan:

     

    _______%
(insert 0%; 25%; 50%; 75%; or 100%)

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SECTION
2 – DISTRIBUTION  ELECTION

     

    A.           Commencement
of Distribution

     

    Except as
otherwise set forth in Section 2C, below, your Deferred Stock benefit will be
paid or benefits will commence as soon as administratively practicable following
the date you resign or otherwise cease being a Director for any
reason.

     

    B.           Form
of Distribution

     

    Except as
otherwise set forth in Section 2C, below, I irrevocably elect to receive
distributions of my Deferred Stock benefit in accordance with the following
election (check one):

     

    o   In one lump
sum; or

     

    o   In _______
(insert number) annual installments (not less than 2 or more than
10).

     

    I
understand that the first distribution will be payable as of the date set forth
in Section 2A, above, and that if I elect annual installment payments I will
receive an installment as of each January 1 immediately following the first
distribution until my entire Deferred Stock benefit has been distributed in
full.  I also understand that my election under this Section 2B is
irrevocable.

     

    C.           Change
in Control

     

    
      I
understand that, notwithstanding any other provision of this Deferral Election
Form to the contrary, my entire Deferred Stock benefit will be distributed in a
single lump sum immediately following the occurrence of a Change in Control of
the Company.

       

       

    

     

    

    SECTION
3 - BENEFICIARY DESIGNATION

     

    If you
die before you receive full payment of your Deferred Stock benefit, your
remaining benefit will be paid to your Beneficiary designated in this Section
3.  Payment will be made in the same manner as specified under Section
2B.

     

    _____________________________________________________________________________________________

     

    Social
Security
Number                                            Last
Name                                           First
Name                                           MI

     

    _____________________________________________________________________________________________

     

    
      Mailing
Address                                              City                                State                      Zip
Code                                Telephone

       

      

    

    
      

       

      

    

    SECTION
4 - SIGNATURE

     

    _____________________________________________________________________________________________

     

    Signature

     

    _____________________________________________________________________________________________

     

    Dateamendchangeincontrolagrmt.htm

     

        Exhibit 10.3

    AMENDMENT
TO CHANGE IN CONTROL SEVERANCE

    

    This
Amendment is made this ___ day of December 2008, by and between Compass Minerals
International, Inc., a Delaware corporation (“Company”), and __________________
(“Executive”).

    

    WHEREAS,
Company and Executive are parties to a Change in Control Severance Agreement
dated _____________________ (the “Agreement”) and the parties now desire to
amend the Agreement to comply with Section 409A of the Internal Revenue Code of
1986, as amended;

    

    NOW,
THEREFORE, for and in consideration of the premises and the mutual covenants and
agreements contained herein, Company and Executive agree that the Agreement is
amended as follows:

    

    A.           Section
4(c) is amended by deleting the reference to “2 years” and by inserting “18
months” in lieu thereof.

    

    B.           Section
5 is amended by adding the following to end of such Section:

    

    Any
Reimbursement Payment payable pursuant to this paragraph 5 shall be paid by the
Company to Executive no later than the last day of Executive’s taxable year next
following Executive’s taxable year in which he remits the related
taxes.

    

    C.           Section
8(b) is amended by adding the following to end of such Section:

    

    Such
reimbursement shall be made on or before the last day of Executive’s taxable
year following the taxable year in which the expense was incurred.

    

    D.           A
new Section 18 is added to read as follows:

     

    COMPLIANCE
WITH  SECTION 409A OF THE INTERNAL REVENUE CODE.  To the
extent applicable and notwithstanding any provision in this Agreement to the
contrary, this Agreement shall be interpreted and administered in accordance
with  Section 409A of the Internal Revenue Code and regulations and
other guidance issued thereunder.  For purposes of determining whether
any payment made pursuant to the Plan results in a "deferral of compensation"
within the meaning of Treasury Regulation §1.409A-1(b), the Company shall
maximize the exemptions described in such section, as applicable.  Any
reference to a “termination of employment” or similar term or phrase shall be
interpreted as a “separation from service” within the meaning of Section 409A
and the regulations issued thereunder.  Any expense reimbursements
under this Agreement shall be made by Company on or before the last day of
Executive’s taxable year following the taxable year in which the expense was
incurred.  If any deferred compensation payment is payable upon
separation from service and is required to be delayed pursuant to Section
409A(a)(2)(B) because Executive is a “specified employee”, then payment of such
amount shall be delayed for a period of six months and paid in a lump sum on the
first payroll payment date following expiration of such six month
period.

    

    

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    IN
WITNESS WHEREOF, the parties have executed this Amendment as of the day and year
first written above.

    

    COMPASS
MINERALS INTERNATIONAL, INC.

    

    

    By:           /s/
Victoria
Heider                                                     

    Title: 
VP of
Human Resources                                                                           

    

    

    EXECUTIVE

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