Document:

ex_10-1.htm

    EXHIBIT
10.1

    
      

    

    Smithfield
Foods, Inc.

    2008
Incentive Compensation Plan

     

    Stock
Option Award

     

    You have
been selected to receive a Stock Option Award under the Smithfield Foods, Inc.
2008 Incentive Compensation Plan (the “Plan”), as specified below:

     

    Participant:_____________________________________________________________

     

    Address:
______________________________________________________________

     

    Number of Shares Subject to
Option: _____________________________________

     

    
      Exercise
Price:____________________

       

      Date of
Grant:____________________

       

       

    

    THIS
AGREEMENT, effective on the Date of Grant above, represents the grant of a Stock
Option by Smithfield Foods, Inc., a Virginia corporation (the “Company”), to the
Participant named above, pursuant to the provisions of the Plan.  All
capitalized terms shall have the meanings in the Plan.  The parties
agree as follows:

     

     1.
Grant of Option. The
Company has granted to Participant as of the Date of Grant above, subject to the
terms and conditions of the Plan and this Award, the right and option to
purchase from the Company (the “Option”) all or any part of the Number of Shares
Subject to Option above at the Exercise Price above.  The Exercise
Price is not less than 100% of the Fair Market Value per share of the Common
Stock on the date of grant.  The Option is exercisable as provided
below. The Option is intended to be a nonstatutory stock option
that does not receive special tax treatment under Section 422 of the Internal
Revenue Code. 

    

      2. Terms and Conditions. The
Option is subject to the following terms and conditions. 

      

        
          	
                  (a)  

                	
                  Expiration
      Date. This Option shall expire seven (7) years from the Date of
      Grant (the “Expiration Date”).   In no event may this
      Option be exercised after the Expiration Date.

                

        

         

        
          	
                  (b)  

                	
                  Nontransferability.
      This Option shall be nontransferable except by will or by the laws of
      descent and distribution and, during the lifetime of the Participant, may
      be exercised only by the Participant, except as provided in Section 3
      below. 

                

        

         

        
          	
                  (c)  

                	
                   Vesting of
      Option. Subject to the provisions of Section 3 below, this Option
      shall vest and become exercisable as
  follows

                

        

         

      

    

    Vesting DatesPercentage
Vested

     

    
      
        	
                Vesting
    Dates

              	
                Percentage
      Vested

              
	
                [one year from Date of
      Grant]

              	
                33%

              
	
                [two years from Date of
      Grant]

              	
                67%

              
	
                [three years from Date of
      Grant]

              	
                100%

              

      

    

     

    
      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    If the
Participant suffers a Disability or dies, or in the event of the Participant’s
Retirement, the requirement that the Participant be employed by the Company
through the Vesting Date is waived.  In that case, the Participant (or
in the event of the Participant’s death, the Participant’s beneficiary) shall be
vested in a pro rata portion of the Option equal to the number of full months of
employment since the Date of Grant divided by thirty-six (36).  The
remaining portion of the Option shall be forfeited.

     

    In the event
of the termination of the Participant’s employment by the Participant or the
Company for any reason other than the Participant’s Disability or death during
the Performance Period, the Participant shall forfeit any unvested portion of
the Option.  The Participant’s transfer of employment to the Company
or any Related Company from another Related Company or the Company during the
Performance Period shall not constitute a termination of
employment.

     

    In the event
of a Qualifying Change of Control, the entire Option shall be fully vested as of
the Qualifying Change of Control.

     

    
      The vested
portion of the Option shall be fully exercisable until the seventh anniversary
of the Date of Grant when the Option will terminate by its terms.

       

      
        	
                (d)  

              	
                Method of Exercising
      and Payment for Shares.  The Option may be exercised by
      giving notice of the exercise under procedures established by the Company
      and making payment of the Exercise Price as follows.  To pay the
      Exercise Price, the Participant (i), unless prohibited by law, may deliver
      a properly executed exercise notice together with irrevocable instructions
      to a broker to deliver promptly to the Company, from the sale or loan
      proceeds with respect to the sale of Company Stock or a loan secured by
      Company Stock, the amount necessary to pay the Exercise Price and
      Applicable Withholding Taxes, (ii) may deliver shares of Company Stock for
      which the holder thereof has good title, free and clear of all liens and
      encumbrances (valued at their Fair Market Value on the date of exercise)
      in satisfaction of all or any part of the Exercise Price, or (iii) may
      cause to be withheld from the Option shares, shares of Company Stock
      (valued at their Fair Market Value on the date of exercise) in
      satisfaction of all or any part of the Exercise
  Price.

              

 

    

    
      3. Termination of Option Upon
Termination of Employment. The right of Participant and his successors in
interest to exercise this Option shall terminate immediately when his employment
with the Company or any Subsidiary is terminated for any reason except as
provided in subsections 3(a), 3(b) and 3(c) below. 

       

      
        	
                (a)  

              	
                Exercise Following
      Death. In the event Participant dies while he is employed by the
      Company or any Subsidiary, before the exercise in full or expiration of
      this Option, Participant’s estate, or the person or persons to whom the
      rights under this Option shall have passed by will or the laws of descent
      and distribution, may exercise the vested portion of this Option at any
      time within one year after Participant’s death (but in any event before
      the Expiration Date of the Option).
 

              

      

       

      
        	
                (b)  

              	
                Exercise Following
      Disability. In the event of termination of Participant’s employment
      by the Company or any Subsidiary by reason of disability under the
      Company’s Retirement Plan, Participant may exercise the vested portion of
      this Option at any time within one year following such termination of
      employment (but in any event before the Expiration Date of the Option).
      

              

      

       

      
        	
                (c)  

              	
                Exercise Following
      Termination of Employment Other Than Death or Disability. In the
      event Participant’s termination of employment with the Company or any
      Subsidiary (including due to retirement) occurs for reasons other than
      death, or disability and before the exercise in full or expiration of this
      Option, Participant may exercise the vested portion of this Option at any
      time within three months next following such termination of employment
      (but in any event before the Expiration Date of the Option).
       

              

      

       

    

    For the
purposes of this Section 3, it shall not be considered a termination of
employment if Participant is placed by the Company or any Subsidiary on military
or sick leave or such other type of leave of absence that the Committee
considers as continuing the employment relationship intact. At the time of any
exercise of any Option exercised pursuant to this Section 3, the Exercise Price
shall be paid in full as provided in Section 2.

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    
      4.Tax Withholding. The Company
shall have the power and the right to deduct or withhold Company Stock, or
require the Participant or beneficiary to remit to the Company, an amount
sufficient to satisfy federal, state, and local taxes, domestic or foreign,
required by law or regulation to be withheld with respect to any taxable event
arising as a result of this Award.

       

      5.Nontransferability.
Performance Share Units may not be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, other than by will or by the laws of
descent and distribution.

       

      6.Administration. This Award and
the rights of the Participant hereunder are subject to all the terms and
conditions of the Plan, as the same may be amended from time to time, as well as
to such rules and regulations as the Committee may adopt for administration of
the Plan. It is expressly understood that the Committee is authorized to
administer, construe, and make all determinations necessary or appropriate to
the administration of the Plan and this Award, all of which shall be binding
upon the Participant.

    

    

      7.Specific Restrictions Upon
Shares.  The Participant hereby agrees with the Company as
follows:  

       

      
        	
                (a)  

              	
                The
      Participant shall acquire the shares of Company Stock issuable with
      respect to the Option for investment purposes only and not with a view to
      resale or other distribution thereof to the public in violation of the
      Securities Act of 1933, as amended (the “1933 Act”), and shall not dispose
      of any such Stock in transactions which, in the opinion of counsel to the
      Company, violate the 1933 Act, or the rules and regulations thereunder, or
      any applicable state securities or “blue sky”
  laws;

              

      

       

      
        	
                (b)  

              	
                If any
      shares of Company Stock acquired with respect to the Option shall be
      registered under the 1933 Act, no public offering (otherwise than on a
      national securities exchange, as defined in the Exchange Act) of any such
      Stock shall be made by the Participant under such circumstances that he or
      she (or such other person) may be deemed an underwriter, as defined in the
      1933 Act; and

              

      

       

      
        	
                (c)  

              	
                The
      Company shall have the authority to endorse upon the certificate or
      certificates representing the Shares acquired hereunder such legends
      referring to the foregoing
restrictions.

              

      

       

    

    8.Miscellaneous.

    

      
        	
                (a)  

              	
                Adjustments to
      Shares. Subject to Plan Section 16, in the event of any merger,
      reorganization, recapitalization, stock dividend, stock split,
      extraordinary distribution with respect to the Stock or other change in
      corporate structure affecting the Stock, the Committee or Board if
      Directors of the Company may make such substitution or adjustments in the
      aggregate number and kind of shares of Company Stock subject to this Stock
      Option Award and the Exercise Price as it may determine, in its sole
      discretion, to prevent dilution or enlargement of
      rights.  

              

      

       

      
        	
                (b)  

              	
                Notices.  Any written
      notice required or permitted under this Award shall be deemed given when
      delivered personally, as appropriate, either to the Participant or to the
      Executive Compensation Department of the Company, or when deposited in a
      United States Post Office as registered mail, postage prepaid, addressed,
      as appropriate, either to the Participant at his or her address set forth
      above or such other address as he or she may designate in writing to the
      Company, or to the Attention: Corporate Secretary, at its headquarters
      office or such other address as the Company may designate in writing to
      the Participant.

              

      

       

      
        	
                (c)  

              	
                Failure To Enforce Not
      a Waiver.  The failure of the Company to enforce at any
      time any provision of this Award shall in no way be construed to be a
      waiver of such provision or of any other provision hereof. 

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        	
                (d)  

              	
                Governing
      Law.  All
      questions concerning the construction, validity and interpretation of this
      Award shall be governed by and construed according to the internal law,
      and not the law of conflicts, of the Commonwealth of Virginia, except that
      questions concerning the relative rights of the Company and the
      Participant with respect to Shares, shall be governed by the corporate law
      of the Commonwealth of
Virginia.

              

      

       

      
        	
                (e)  

              	  Provisions
      of Plan .  The Option provided for herein is granted
      pursuant to the Plan, and the Option is in all respects governed by the
      Plan and subject to all of the terms and provisions thereof, whether such
      terms and provisions are incorporated in this Award solely by reference or
      expressly cited herein.  If there is any inconsistency between
      the terms of this Award and the terms of the Plan, the Plan’s terms shall
      completely supersede and replace the conflicting terms of this
    Award

      

       

    

    [ SIGNATURE
PAGE FOLLOWS ]

    
 

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

     

    IN WITNESS
WHEREOF, the Company has executed this Award in duplicate on this _____ days of
____________, 2009.

     

    

    SMITHFIELD FOODS,
INC.

    

    

               By:
_______________________

    
 

    

    

    The undersigned hereby accepts, and
agrees to, all terms and provisions of the forgoing Award.

    

    

    

    __________________________ex_10-2.htm

    EXHIBIT
10.2

    
      

    

    Smithfield
Foods, Inc.

    2008
Incentive Compensation Plan

     

    Performance
Share Unit Award

     

    You have
been selected to receive a Performance Share Unit Award under the Smithfield
Foods, Inc. 2008 Incentive Compensation Plan (the “Plan”), as specified
below:

     

    Participant:______________________________________________________________

     

    Address:
______________________________________________________________

     

    Number of Performance Share Units
Units: _____________________________________

     

    Performance Period: Fiscal
Years _____________

    

      Performance Measure: Profits
Before Tax (as defined below)

    

     

    THIS
AGREEMENT, effective on ____________ (the “Date of Grant”), represents the grant
of Performance Share Units by Smithfield Foods, Inc., a Virginia corporation
(the “Company”), to the Participant named above, pursuant to the provisions of
the Plan.  All capitalized terms shall have the meanings in the
Plan.  The parties agree as follows:

     

    1.Performance Period. The
Performance Period is the Company’s Fiscal Years ending in
________________.

     

    2.Value of Performance Share
Units. Each Performance Share Unit shall represent and have a value equal
to one share of Company Stock, subject to adjustment as provided in Section 16
of the Plan.

     

    3.Achievement of Profits Before Tax and
Vesting. Subject to the remaining terms and conditions of this Agreement,
the number of Performance Share Units to be vested under this Award shall be
based upon the Company’s Profits Before Tax (as defined below) during each
Fiscal Year (as defined below) during the Performance
Period.  

     

    For any
Performance Share Unit to vest, the Company must achieve Profits Before Tax of
at least ______________ Dollars ($__________) in any one of the Company’s Fiscal
Years during the Performance Period (the “Performance Target”) as determined by
the Compensation Committee.

     

    If the
Performance Target is met, the Performance Share Units shall vest according to
the following schedule:

     

    

      
        	
                Vesting
    Dates

              	
                Percentage
      Vested

              
	
                [one year from Date of
      Grant]

              	
                33%

              
	
                [two years from Date of
      Grant]

              	
                67%

              
	
                [three years from Date of
      Grant]

              	
                100%

              

      

    Profit
Before Tax is the net income before deduction for income taxes of the Company as
a whole.  A Fiscal Year is the fiscal year used by the Company for
accounting purposes.

     

    4.Termination Provisions. Except
as provided in the next paragraph, the Participant shall be eligible for vesting
and payment of earned Performance Share Units, as specified in Section 3, only
if the Participant’s employment with the Company continues through the Vesting
Date and the Performance Target has been achieved.  

     

    If the
Participant suffers a Disability or dies, or in the event of the Participant’s
Retirement, the requirement that the Participant be employed by the Company
through the Vesting Date is waived.  In that case, the Participant (or
in the event of the Participant’s death, the Participant’s beneficiary) shall be
vested in a pro rata portion of the number of Performance Share Units equal to
the number of full months of employment since the Date of Grant divided by
thirty-six (36), subject to the achievement of the Performance
Target.

     

    In the event
of the termination of the Participant’s employment by the Participant or the
Company for any reason other than the Participant’s Disability or death during
the Performance Period, the Participant shall forfeit any unvested portion of
this Award, with no payment to the Participant.  The Participant’s
transfer of employment to the Company or any Related Company from another
Related Company or the Company during the Performance Period shall not
constitute a termination of employment.

     

    5.Dividends. The Participant
shall have no right to any dividends which may be paid with respect to shares of
Company Stock until any such shares are delivered to the Participant on or
following a Payment Date. 

     

    6.Form and Timing of Payment of
Performance Share Units. Payment of the vested Performance Share Units
shall be made in Company Stock.  Payment for vested Performance Share
Units shall be made on or as soon as administratively practicable (but in any
event no later than 2 1⁄2 months) following the later of (a) the Vesting Date or
(b) the end of the Fiscal Year in which the Performance Target is met.

     

    7.Tax Withholding. The Company
shall have the power and the right to deduct or withhold Company Stock, or
require the Participant or beneficiary to remit to the Company, an amount
sufficient to satisfy federal, state, and local taxes, domestic or foreign,
required by law or regulation to be withheld with respect to any taxable event
arising as a result of this Award.

     

    8.Nontransferability.
Performance Share Units may not be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, other than by will or by the laws of
descent and distribution.

     

    9.Administration. This Award and
the rights of the Participant hereunder are subject to all the terms and
conditions of the Plan, as the same may be amended from time to time, as well as
to such rules and regulations as the Committee may adopt for administration of
the Plan. It is expressly understood that the Committee is authorized to
administer, construe, and make all determinations necessary or appropriate to
the administration of the Plan and this Award, all of which shall be binding
upon the Participant. 

     

    

      10.Specific Restrictions Upon
Shares.  The Participant hereby agrees with the Company as
follows:  

       

      	
              (a)  

            	
              
                Because
      any shares of Company Stock acquired with respect to the Performance Share
      Units shall be registered under the 1933 Act, no public offering
      (otherwise than on a national securities exchange, as defined in the
      Exchange Act) of any such Stock shall be made by the Participant under
      such circumstances that he or she (or such other person) may be deemed an
      underwriter, as defined in the 1933
Act.

              

            

    

     

    11.Miscellaneous.

    
 

    
      
        	
                (a)  

              	
                Change of
      Control.  In the event of a Qualifying Change of Control,
      all unvested Performance Share Units granted under this Award shall be
      fully vested and payment for vested Performance Share Units shall be made
      immediately, without regard to the attainment of the Performance
      Target.  The date of a Qualifying Change of Control shall be
      considered a Vesting Date for purposes of this
  Agreement.

              

      

       

      
        	
                (b)  

              	
                Adjustments to
      Shares. Subject to Plan Section 16, in the event of any merger,
      reorganization, recapitalization, stock dividend, stock split,
      extraordinary distribution with respect to the Stock or other change in
      corporate structure affecting the Stock, the Committee or Board if
      Directors of the Company may make such substitution or adjustments in the
      aggregate number and kind of shares of Company Stock subject to this
      Performance Share Unit Award as it may determine, in its sole discretion,
      to prevent dilution or enlargement of
  rights.  

              

      

       

      
        	
                (c)  

              	
                Notices.  Any written
      notice required or permitted under this Award shall be deemed given when
      delivered personally, as appropriate, either to the Participant or to the
      Executive Compensation Department of the Company, or when deposited in a
      United States Post Office as registered mail, postage prepaid, addressed,
      as appropriate, either to the Participant at his or her address set forth
      above or such other address as he or she may designate in writing to the
      Company, or to the Attention: Corporate Secretary, at its headquarters
      office or such other address as the Company may designate in writing to
      the Participant.

              

      

       

      
        	
                (d)  

              	
                Failure To Enforce Not
      a Waiver.  The failure of the Company to enforce at any
      time any provision of this Award shall in no way be construed to be a
      waiver of such provision or of any other provision hereof. 

              

      

       

      
        	
                (e)  

              	
                Governing
      Law.  All
      questions concerning the construction, validity and interpretation of this
      Award shall be governed by and construed according to the internal law,
      and not the law of conflicts, of the Commonwealth of Virginia, except that
      questions concerning the relative rights of the Company and the
      Participant with respect to Shares, shall be governed by the corporate law
      of the Commonwealth of
Virginia.

              

      

       

      
        	
                (f)  

              	
                Provisions of
      Plan.  The Performance Share Units provided for herein
      are granted pursuant to the Plan, and said Performance Share Units are in
      all respects governed by the Plan and subject to all of the terms and
      provisions thereof, whether such terms and provisions are incorporated in
      this Award solely by reference or expressly cited herein.  If
      there is any inconsistency between the terms of this Award and the terms
      of the Plan, the Plan’s terms shall completely supersede and replace the
      conflicting terms of this
  Award.   

              

      

       

      
        	
                (g)  

              	
                Code section
      162(m).  It is intended that payments pursuant to this
      Award to a Participant who is a “covered officer” within the meaning of
      section 162(m) of the Internal Revenue Code constitute “qualified
      performance-based compensation” within the meaning of section 1.162-27(e)
      of the Income Tax Regulations.  To the maximum extent possible,
      this Award and the Plan shall be so interpreted and
      construed.  No amounts in excess of the number of Performance
      Share Units earned under Section 3 of this Award shall be paid to the
      Participant.         

              

      

       

    

    
 

    IN WITNESS
WHEREOF, the Company has executed this Award in duplicate on this _____ days of
____________, 2009.

     

    

    SMITHFIELD FOODS,
INC.

    

    

               By:
_______________________

    
 

    

    

    The undersigned hereby accepts, and
agrees to, all terms and provisions of the forgoing Award.

    

    

    

    __________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]