Document:

exv10w31

 

Exhibit 10.31

Century Aluminum Company

1996 Stock Incentive Plan

Implementation Guidelines

[Performance Share Awards]

(As Amended December 14, 2001)

1. PURPOSE

These guidelines (“Guidelines”) are intended to provide direction for implementation of the
Century Aluminum Company’s (the “Company”) 1996 Stock Incentive Plan (the “Plan”) with
respect to Performance Share Awards. The Plan is intended to advance the interests of the
Company by enabling Executive Officers and other key employees of the Company and its
Subsidiaries to acquire proprietary interests in the Company, which interests, to the extent
deemed reasonably possible by the Committee, are “performance-based compensation” within
Section 162(m) of the Internal Revenue Code of 1986, as amended, and the regulations
promulgated thereunder, through achievement by the Company of specified future performance
and earnings goals.

2. BACKGROUND AND GENERAL CONSIDERATIONS

The Company is a relatively small new entrant in a highly volatile commodity business. Its
goals are to grow and to achieve financial results that meet or exceed those attained by its
best-performing competitors. The Company began its public existence in 1996 with several
competitive disadvantages. It was small, its principal production facilities were high cost
and approximately 40 years old, and it inherited the dual financial burdens of funding one
of the nation’s most under-funded pension plans and infusing needed capital into facilities
badly in need of the same. Faced with these goals and challenges, Management has completed
several important projects that will contribute to reaching the Company’s goals. It has
profitably divestited its non-profitable, capital-intensive, rolling business, acquired
interests in the lower-cost Mt. Holly and Hawesville reduction plants and funded the pension
plan, among other things.

In retrospect, and looking forward, it is clear Managements’ performance goals and
objectives, and the weighting of those goals and objectives, appropriately may vary widely
in importance from time-to-time. In order for the Implementation Guidelines to fulfill the
purposes described above, then, the Goals established by the Committee likewise might vary
in importance and weighting from time-to-time. Furthermore, in order to deal with the
uncertainties of the volatile aluminum market, these Guidelines should provide flexibility
to encourage the Company to manage through commodity cycles, not manage to them.

 

 

In general, Guideline Goals (as defined below) might include some or all of the following,
or other factors determined by the Committee to be of material importance to the growth and
profitability of the Company, weighted or valued as determined by the Committee:

	 	A.	 	Strategic performance Goals, such as completing an acquisition,
disposing of non-performing assets, achieving a strategic restructuring,
competitively securing a key resource (e.g., electrical power or alumina) or
developing key management through recruiting, training and succession planning;
	 
	 	B.	 	Cost reductions, such as lowering cash operating costs by
targeted amounts, or meeting other operational improvement performance
objectives such as successfully completing capital expenditure programs or
contributing to the growth of the Company through research, processing or
manufacturing improvements and marketing gains; and
	 
	 	C.	 	Meeting financial performance targets that may be the aggregate
of each annual profit plan in any Plan Period or may be expressed in terms of
(i) earnings per Share, (ii) pre-tax profits (either at the Company or business
unit level), (iii) net earnings or net worth, (iv) return on equity or assets,
(v) any combination of the foregoing, or (vi) any other standard or standards
deemed appropriate by the Committee.

3. DEFINITIONS

	 	A.	 	“Award” shall be as defined in Section 5.
	 
	 	B.	 	“Award Targets” generally shall include elements of all of the
following, with the relative weighting of each element to be as determined by
the Committee; however, the Committee retains full discretion to include fewer
than all of these elements in an Award Target:

	 	(1)	 	The achievement of one or more strategic or other
Goals of the sort described in Section 2. A.; and
	 
	 	(2)	 	The accomplishment of cost improvements or other
operational performance Goals as generally described in Section 2. B; and
	 
	 	(3)	 	The attainment by the Company of specified
financial performance Goals as described in Section 2. C.

Page 2

 

Goals set for Award Target purposes shall be guided by (but need not be the same as) the
goals and objectives for the Company as contained in and submitted to the Board annually in
Company three-year business plans.

	 	C.	 	“Board” shall mean the Board of Directors of the Company.
	 
	 	D.	 	“Committee” shall mean the Compensation Committee of the Board
of Directors of the Company, two members or more of whom shall be “outside
directors” within the meaning of Internal Revenue Code Section 162(m).
	 
	 	E.	 	“Company” shall mean Century Aluminum Company.
	 
	 	F.	 	“Participant” shall mean any full-time salaried employee of the
Company or a Subsidiary designated as a Participant by the Committee.
	 
	 	G.	 	“Performance Shares” shall have the meaning set forth in the
Plan and shall entitle the grantee to receive one share of the Company’s common
stock for each Performance Share awarded.
	 
	 	H.	 	“Plan Periods” shall mean overlapping periods of three
consecutive calendar years each, the first of which commenced January 1, 2001,
and will end December 31, 2003.
	 
	 	I.	 	“Section” shall mean a section of these Guidelines.
	 
	 	J.	 	“Subsidiary” shall mean any corporation the voting stock of
which is 50% or more is owned, directly or indirectly, by the Company.

4. TERM

Implementation of these Guidelines shall commence with the Plan Period that commenced as of
January 1, 2001, and shall continue until such time as terminated by the Board.

5. AWARD

	 	A.	 	Award. The Committee, on or before each May 15 during each of
the Plan Periods, shall make an award of Performance Shares to each
Participant, which award shall be communicated in writing to each Participant
by the Chief Executive Officer of the Company. Initially, Awards shall not be
granted in amounts that exceed the

Page 3

 

	 	 	 	applicable percentages set forth below (i.e., 45% to 100%). Awards may be
increased above those amounts only at the end of a Plan Period, and then only
in the event (and to the extent) that the Committee determines the Company has
exceeded its Target or Targets. For an Award to be granted at 150% of the
applicable percentage, the Committee must determine that the Company has
exceeded every one of its Targets for the applicable Plan Period. Awards will
be issued as provided in Section 6. The Award for each Participant shall be
determined by creating a monetary award, and converting that monetary award to
Performance Share units. The monetary award shall be a percentage of such
Participant’s base salary (within the allowable range), which percentage shall
be established by the Committee at the beginning of each of the Plan Periods.
The allowable percentages are as follows:

	 	 	 	 	 
	Participant’s Position	 	Range of Allowable Percentages
	 	 	(of Base Salary)
	CEO; President
	 	45% to 100%
	Executive VPs
	 	 	 	 
	All Other VPs
	 	 	 	 
	Business Unit Head
	 	 	 	 
	and Senior Staff
	 	15% to 45%

	 	 	 	The number of Performance Shares in a Participant’s Award shall be determined
by dividing the Participant’s monetary award by the average closing price for
the Company’s common stock for the month preceding the month in which the
grant is made.
	 
	 	B.	 	Award Target; Adjusted Award; Amending Target Assumptions.

	 	(1)	 	Committee Discretion. Notwithstanding any other
provision of these Guidelines, the Committee shall have full and complete
discretion to modify any award otherwise payable hereunder in light of
considerations deemed appropriate by the Committee. This discretion
shall include the right to determine that no award should be payable.
	 
	 	(2)	 	Award Target. If the Award Targets are achieved in
their entirety within the expectations of the Committee, then
Participants shall be issued the number of shares equal to the number of
Performance Share units in Participants’ Awards initially granted as
provided in Section 5. A.

Page 4

 

	 	(3)	 	Adjusted Award. If some or all of the Award
Targets are exceeded, the Committee may approve Awards in excess of the
initial grants; however, the Committee may not approve Awards at the 150%
level unless all of the Award Targets have been exceeded. If the Award
Targets are not achieved in their entirety, Awards shall be adjusted
downward from the initial Awards or eliminated entirely, at the
discretion of the Committee, and Participants shall be issued
proportionally reduced number of shares, or none at all.
	 
	 	(4)	 	Amending Award Target Assumptions. Achievement of
specified financial Award Targets under Section 3. C. may depend on the
accuracy of the Company’s forecasts of LME primary aluminum prices. In
such cases, to the extent average LME prices vary, plus or minus, by more
than $50 from forecasted LME aluminum prices in any year of a Plan
Period, the Committee will have the discretion to appropriately amend the
Award Target to more accurately reflect LME aluminum prices for such
year, and the Company’s performance will be measured against such amended
Award Target.

6. ISSUANCE OF AWARDS

	 	A.	 	On or before March 15 of each calendar year (or, if required,
such later date when the annual audited financial statement of the Company are
available) the Company shall, with respect to the Plan Period that has just
ended, issue to each Participant Performance Shares in an amount equal to such
Participant’s Award or Adjusted Award.
	 
	 	B.	 	Except as provided in Section 6.C., no payment with respect to
any Award shall be made to a Participant who is not employed full time by the
Company or a Subsidiary on the 31st day of December preceding the
date of issuance provided in Section 5.A.
	 
	 	C.	 	In the event of death, permanent disability or retirement of a
Participant in any year following an Award, the Participant or his
representative or designated beneficiaries shall be entitled to receive a
portion of the amount calculated under Section 6.A., and payable in the year
following death, permanent disability or retirement, determined by multiplying
such amount by a fraction, the numerator of which is the number of weeks of
full employment during any Plan Period and the denominator of which is 156 for
any Plan Period.

Page 5

 

	 	D.	 	If an employee is selected as a Participant at any time other
than the beginning of any Plan Period, such Participant shall be entitled to
receive a portion of the amount calculated under Section 6.A. by multiplying
such amount by a fraction the numerator of which is the number of weeks that
such employee was a Participant under the plan during any Plan Period and the
denominator of which is 156. For the purposes of this Section 6.D. an employee
shall be deemed to have been a Participant under the Plan as of January 1 of
the calendar year in which such employee was first selected as a Participant if
such selection occurred on or before May 15 of such calendar year, and if such
selection occurred after May 15 of any calendar year the employee shall be
deemed to have first become a Participant on January 1 of the calendar year
immediately following the employee’s election as a Participant.

7. ADMINISTRATION

	 	A.	 	Each grant of a Performance Share shall be evidenced by an
agreement executed on behalf of the Company by an officer designated by the
Compensation Committee and accepted by the recipient. Such agreement shall
state that such award is subject to all the terms and provisions of the Plan.
	 
	 	B.	 	Full power and authority to amend, modify, terminate, construe,
interpret and administer these Guidelines shall be vested in the Committee.
Any interpretation of these Guidelines by the Committee or any administrative
act by the Committee shall be final and binding on all Participants.

8. NON-ASSIGNABILITY

Nothing in these Guidelines shall be deemed to make rights granted pursuant hereto
assignable or transferable by a Participant except pursuant to the laws of descent and
distribution. No rights under these Guidelines may be hypothecated or encumbered in any
manner whatsoever, and creditors of Participants shall have no right or power to obtain all
or any portion of grants made hereunder. Any attempted assignment, hypothecation or
encumbrance by a Participant shall be null and void. Each Participant may, however,
designate one or more beneficiaries under the Plan on a form to be supplied by the Secretary
of the Company.

Page 6

 

Adopted by the Board on December 14, 2001.

	 	 	 	 	 
	 

	 	     /s/ Craig A. Davis
 

     Craig A. Davis, Chairman
	 	 

	 	 	 
	          /s/ Gerald J. Kitchen
 

Gerald J. Kitchen, Secretary

	 	 

Page 7exv10w52

 

EXHIBIT 10.52

JOINDER AGREEMENT

     THIS JOINDER AGREEMENT (this “Agreement”), dated as of December 30, 2005, is entered
into among NSA General Partnership, a Kentucky general partnership (the “Partnership”), the
Lenders party hereto, the existing Borrowers party hereto, and Bank of America, N.A., in its
capacity as Agent (the “Agent”), under that certain Loan and Security Agreement, dated as
of September 19, 2005, among the Agent, the Lenders party thereto from time to time, and the
existing Borrowers (as amended, restated, supplemented, or otherwise modified from time to time,
the “Loan Agreement”). Capitalized terms used in this Agreement and not otherwise
specifically defined herein have the meanings assigned to them in the Loan Agreement.

     WHEREAS, pursuant to the Loan Agreement, the Lenders have agreed to make the Loans and other
financial accommodations to the existing Borrowers; and

     WHEREAS, the Partnership is a wholly-owned Subsidiary of a Loan Party and Borrower
Representative has requested that the Partnership become a “Borrower” under the Loan Agreement and
the other Loan Documents;

     NOW, THEREFORE, on the terms and subject to the conditions set forth herein, the Partnership,
the Lenders, the existing Borrowers, and the Agent hereby agree as follows:

	1.	 	The Partnership, the Lenders, the existing Borrowers, and the Agent hereby acknowledge, agree
and confirm that, by its execution of this Agreement, the Partnership will be a Borrower under
the Loan Agreement and the other Loan Documents and shall have all of the rights and
obligations of a Borrower thereunder as if it had executed the Loan Agreement and the other
Loan Documents. The Partnership hereby ratifies, as of the date hereof, and agrees to be
bound by, all of the terms, provisions, covenants, promises, agreements, obligations, duties,
liabilities, and conditions contained in the Loan Documents that are applicable to Borrowers,
including without limitation (a) all of the representations and warranties of the Borrowers
set forth in Section 7 of the Loan Agreement (provided that with respect to the
representations and warranties set forth in Sections 7.1.5 and 7.1.6, the applicable
information for the Partnership is set forth on Schedule 1 hereto), and (b) all of the
affirmative and negative covenants of the Borrowers set forth in Sections 5.3, 6, and 8 of the
Loan Agreement.
	 
	 	 	Upon the effectiveness of this Agreement, all references to “Borrower” or “Borrowers” in
each of the Loan Documents shall be deemed to include the Partnership.
	 
	2.	 	Without limiting the generality of the terms of the foregoing paragraph 1, to secure
the prompt payment and performance to the Secured Parties of the Obligations, the Partnership
hereby grants to the Agent, for the benefit of the Secured Parties, a continuing lien upon and
security interest in all of the following

 

 

assets of the Partnership, whether now owned or existing or hereafter created, acquired or
arising and wheresoever located:

	 	(i)	 	Accounts; and
	 
	 	(ii)	 	Inventory;

	 	 	together with all books, records, writings, data bases, information, Documents, and
Supporting Obligations directly relating to or evidencing, embodying, or incorporating any
of the foregoing, and all Proceeds of and from any of the foregoing. Notwithstanding the
foregoing, Collateral shall not include real property, Fixtures, Equipment, Securities of
Subsidiaries, the Proceeds and products of any of the foregoing Property or any other
Property not specifically designated as Collateral hereby.
	 
	3.	 	The Partnership hereby authorizes the Agent to file financing statements that indicate the
Collateral as being of an equal or lesser scope, or with greater or lesser detail, than as set
forth in the foregoing paragraph 2. The Partnership also hereby ratifies its
authorization for the Agent to have filed in any jurisdiction any such financing statements or
amendments thereto if filed prior to the date hereof.
	 
	4.	 	This Agreement shall be effective as of the date hereof (the “Effective Date”), but
only upon the satisfaction of the following conditions precedent:

	 	(a)	 	Agent shall have received a duly executed copy of this Agreement.
	 
	 	(b)	 	The representations and warranties of the Borrowers and Guarantors set forth
in each of the Loan Documents shall be true and correct in all material respects on
and as of the Effective Date with the same effect as though made on and as of such
date (except to the extent such representations and warranties by their terms
expressly relate to an earlier date, in which case such representations and warranties
shall have been true and correct, in all material respects, as of such earlier date).
	 
	 	(c)	 	No Default or Event of Default shall have occurred and be continuing as of
the Effective Date.
	 
	 	(d)	 	The Partnership shall have paid all costs, fees and expenses referred to in
paragraph 6 hereof of which the Agent has notified Borrower Representative
prior to the date hereof.
	 
	 	(e)	 	On or prior to the Effective Date, Agent shall have received each of the
following in form and substance reasonably satisfactory to it (and duly executed by
each of the parties thereto, to the extent applicable):

	 	(i)	 	Certificate of the general partner of the Partnership
certifying as to (a) the Partnership Agreement of the Partnership, and (b)
resolutions approving the transactions contemplated hereby;

 

 

	 	(ii)	 	Certificate of the general partner of the Partnership
certifying as to the incumbency of each of the Persons executing this
Agreement on behalf of the Partnership;
	 
	 	(iii)	 	Certificate of the general partner of the Partnership
certifying as to representations and warranties and no Default or Event of
Default;
	 
	 	(iv)	 	UCC financing statements covering the Collateral and naming
the Partnership as debtor, in due form for filing with the Secretary of State
of the jurisdiction of organization of the Partnership; and
	 
	 	(v)	 	Opinion of Curtis, Mallet-Prevost, Colt & Mosle LLP, special
New York counsel to the Partnership.

	5.	 	The Partnership acknowledges and confirms that it has received a copy of the Loan Agreement
and the schedules and exhibits thereto and each of the other Loan Documents and the schedules
and exhibits thereto.
	 
	6.	 	The Partnership agrees (a) to reimburse the Agent upon demand for all reasonable and
documented costs, fees and expenses (including the reasonable fees and expenses of counsel to
the Agent) incurred in connection with the preparation, execution and delivery of this
Agreement, and (b) to deliver to the Agent, within 15 days following the date hereof, a letter
of opinion of Stites & Harbison PLLC, special Kentucky counsel to the Partnership (or such
other counsel to the Partnership as shall be reasonably acceptable to the Agent), in form and
substance satisfactory to the Agent.
	 
	7.	 	This Agreement may be executed in any number of counterparts and by different parties hereto
in separate counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which counterparts taken together shall constitute but one and the same
instrument.
	 
	8.	 	Wherever possible, each provision of this Agreement shall be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Agreement.
	 
	9.	 	THIS AGREEMENT HAS BEEN NEGOTIATED, EXECUTED AND DELIVERED IN AND SHALL BE DEEMED TO HAVE
BEEN MADE IN NEW YORK, NY. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

[REMAINDER OF PAGE INTENTIONALLY BLANK]

 

 

Century Aluminum Company

Joinder Agreement

     IN WITNESS WHEREOF, this Joinder Agreement has been duly executed on the day and year
specified at the beginning hereof.

	 	 	 	 	 
	 	BORROWERS:

NSA GENERAL PARTNERSHIP

 	 
	 	By:  	CENTURY KENTUCKY, INC.
 	 
	 	Its:  General Partner 	 
	 
	 	By:  	/s/ Daniel J. Krofcheck
 	 
	 	 	Name:  	Daniel J. Krofcheck 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	By:  	SKYLINER LLC
 	 
	 	Its:  General Partner 	 
	 
	 	By:  	/s/ Daniel J. Krofcheck
 	 
	 	 	Name:  	Daniel J. Krofcheck 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	CENTURY ALUMINUM COMPANY

 	 
	 	By:  	/s/ Daniel J. Krofcheck
 	 
	 	 	Name:  	Daniel J. Krofcheck 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	BERKELEY ALUMINUM, INC.

 	 
	 	By:  	/s/ Daniel J. Krofcheck
 	 
	 	 	Name:  	Daniel J. Krofcheck 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	CENTURY ALUMINUM OF WEST VIRGINIA, INC.

 	 
	 	By:  	/s/ Daniel J. Krofcheck
 	 
	 	 	Name:  	Daniel J. Krofcheck 	 
	 	 	Title:  	Vice President and Treasurer 	 

 

 

Century Aluminum Company

Joinder Agreement

	 	 	 	 	 
	 	CENTURY KENTUCKY, INC.

 	 
	 	By:  	/s/ Daniel J. Krofcheck
 	 
	 	 	Name:  	Daniel J. Krofcheck 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	CENTURY ALUMINUM OF KENTUCKY GENERAL PARTNERSHIP

 	 
	 	By:  	 	 
	 	Its:  General Partner 	 
	 
	 	By:  	/s/ Daniel J. Krofcheck
 	 
	 	 	Name:  	Daniel J. Krofcheck 	 
	 	 	Title:  	Vice President and Treasurer 	 

 

 

Century Aluminum Company

Joinder Agreement

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

as Agent and as a Lender

 	 
	 	By:  	/s/ Robert J. Lund
 	 
	 	 	Name:  	Robert J. Lund 	 
	 	 	Title:  	Senior Vice President 	 

 

 

Century Aluminum Company

Joinder Agreement

	 	 	 	 	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH

 	 
	 	By:  	/s/ Jay Chall
 	 
	 	 	Name:  	Jay Chall 	 
	 	 	Title:  	Director 	 
	 
	 	By:  	/s/ Rianka Mohan
 	 
	 	 	Name:  	Rianka Mohan 	 
	 	 	Title:  	Associate 	 

 

 

Century Aluminum Company

Joinder Agreement

	 	 	 	 	 
	 	CITIBANK, N.A.

 	 
	 	By:  	Daniel J. Miller
 	 
	 	 	Name:  	Daniel J. Miller 	 
	 	 	Title:  	Vice President 	 
	 
	 	By:  	Raymond G. Dunning
 	 
	 	 	Name:  	Raymond G. Dunning 	 
	 	 	Title:  	Managing Director 	 

 

 

Century Aluminum Company

Joinder Agreement

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.

 	 
	 	By:  	/s/ Mark Cuccenillo
 	 
	 	 	Name:  	Mark Cuccenillo 	 
	 	 	Title:  	Vice President 	 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

Century Aluminum Company

Joinder Agreement

	 	 	 	 	 
	 	WACHOVIA CAPITAL FINANCE CORPORATION (WESTERN)

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

Century Aluminum Company

Joinder Agreement

SCHEDULE 1

	1.	 	Legal names and organizational details:

	 	(a)	 	Legal Name — NSA General Partnership
	 
	 	(b)	 	State of Formation — Kentucky
	 
	 	(c)	 	Type of Organization — General Partnership
	 
	 	(d)	 	Organizational I.D. Number — N/A

	2.	 	Other legal, fictitious or trade names used: None
	 
	3.	 	Mergers, consolidations and acquisitions within five years immediately preceding the Closing
Date: N/A
	 
	4.	 	Chief Executive Office: 1627 State Route 271 North, Hawesville, KY 42348-0500
	 
	5.	 	In addition to the offices listed in #4 above, the Partnership may maintain books and records
at: 2511 Garden Road, Building A, Suite 200, Monterey, CA 93940
	 
	6.	 	Business locations of the Partnership where Inventory is located: 1627 State Route 271 North
Hawesville, KY 42348-0500

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