Document:

Filed by Bowne Pure Compliance

Exhibit 10.2

PERFORMANCE SHARE AWARD

Date of Award: February [•], 2008

Target Number of Performance Shares Awarded: x,xxx

Recipient

Dear (name):

I am pleased to inform you that as an executive of Terra Industries Inc. (“Terra”) or a
subsidiary thereof, you have been awarded, under Terra’s 2007 Omnibus Incentive Compensation Plan
(the “Plan”), the number of Performance Shares set forth above, subject to certain restrictions,
terms and conditions set forth in this letter and in the Plan. Shares (or cash based on the value
of Shares) may be issued to you in the future for the Performance Shares granted to you if Terra
achieves certain financial results described below in paragraph 1. A Share shall mean a share of
common stock of Terra, without par value, or such other securities of Terra (a) into which such
shares shall be changed by reason of a recapitalization, merger, consolidation, split-up,
combination, exchange of shares or other similar transaction or (b) as may be determined by the
Committee (as defined in the Plan) pursuant to Section 4(b) of the Plan. Pursuant to the Plan, the
Performance Shares are Restricted Stock Units that may be settled in Shares or cash, as determined
by the Committee in its sole discretion, and are designated as Performance Compensation Awards.
Unless otherwise defined, the capitalized terms herein shall have the meanings assigned to them in
the Plan.

1. Subject to the terms and conditions set forth in this Agreement, you will be eligible to
earn (or be deemed to earn) a number of Performance Shares that is between 0% and 200% of the
target number of Performance Shares set forth above, such number of earned Performance Shares to be
determined based on Terra’s annualized average return on capital employed (“ROCE”), described as
follows:

a. The ROCE period will be the thirty-six month period ending on December 31, 2010 (referred
to hereafter as the “Period”).

b. The numerator of the calculation will be the annualized average of the sum of income from
operations for the Period (as reported in Terra’s Consolidated Statement of Operations for 2008,
2009 and 2010), reduced by 35% representing normal income tax expense, plus income or earnings from
equity investments and results from discontinued operations.

 

 

 

c. The denominator of the calculation will be the average of the amounts reported on the
twelve Terra quarterly balance sheets for the Period for the following items: Common shareholders
and preferred shareholders equity, short and long-term debt, deferred income taxes and minority
interest, liability for customer prepayments, less cash.

d. The determination of the numerator and denominator used for the calculation of ROCE will
not include the following items:

	 	i.	 	Losses that are the direct result of a major casualty, force majeure
or natural disaster;

	 	ii.	 	Losses for new legislation that directly affects Terra’s existing
product mix;
	 
	 	iii.	 	Losses that are the result of a terrorist attack;

	 	iv.	 	Losses associated with shipping restrictions imposed by Terra’s freight vendors for Terra’s products;
	 
	 	v.	 	Impairment of long-lived assets, goodwill or other intangible assets;

	 
	 	vi.	 	Losses on the early retirement of debt;

	 	vii.	 	Equity-based or other employee retention awards granted in the
connection with any acquisition;
	 
	 	viii.	 	Amortization of goodwill;
	 
	 	ix.	 	Expenses classified as provisions for restructuring;

	 	x.	 	Losses on the disposal of assets or segments of an acquired business
within three years of the acquisition date;
	 
	 	xi.	 	Losses on the disposition of a business;

	 	xii.	 	Expenses associated with changes in tax or accounting regulations or
laws; and

	 	xiii.	 	Other expenses or losses that are unusual in nature or infrequent in
occurrence and are disclosed as a separate item in Terra’s Consolidated Statement
of Operations.

e. In each instance, the above-referenced items must be determined in accordance with
generally accepted accounting principles and appear on the face of Terra’s Consolidated Statement
of Operations contained in its Consolidated Financial Statements for such performance year.

f. The Compensation Committee may, in its sole discretion, include any of the preceding items
in its calculation of the return amount if the inclusion of such item or items has the effect of
decreasing level of ROCE achieved.

g. If Terra’s annualized average ROCE for the Period is [ ]or less, none of the Performance
Shares will be earned.

h. If Terra’s annualized average ROCE for the Period is greater than [ ] but less than or
equal to [ ], [ ] of the target number of Performance Shares will be earned for each [ ] by which
annualized average ROCE exceeds [ ].

 

-2-

 

i. If Terra’s annualized average ROCE for the Period is greater than [ ] but less than [ ], an
additional [ ] of the target number Performance Shares will be earned for each [ ] by which
annualized average ROCE exceeds [ ].

j. If Terra’s annualized average ROCE for the Period equals or exceeds [ ], then 200% of the
target number of Performance Shares (which is the maximum number of Performance Shares that may be
earned pursuant to this Award) will be earned.

2. The calculation of ROCE will be determined by the Committee following the end of the
Period. Until the Committee has made its determination about the level of achievement of ROCE and
the percentage of the Performance Shares that have been earned, you will not be entitled to receive
any Shares pursuant to this Agreement or to receive any cash in lieu of such Shares. In
determining the percentage of Performance Shares that you have earned during the Period, the
Compensation Committee may not award more Performance Shares than the maximum amount indicated by
formula set forth above, but may, in its sole discretion, award fewer than the maximum amount
indicated by the formula.

3. Any Shares that are required to be issued after the Committee approves the portion, if any,
of the target number of Performance Shares that are earned based on Terra’s performance during the
Period (including as Shares that you may be entitled to receive following a termination as a result
of Disability) shall be issued not later than the 74th day following the date that the relevant
Performance Shares become vested. Performance Shares will be deemed to have vested when they are
no longer subject to a substantial risk of forfeiture (within the meaning of Treasury Regulation
Section 1.409A-1(d)).

4. In the event of a Change of Control of Terra on or prior to the last day of the Period, the
number of Performance Shares that you will be deemed to have earned will be the greater of (a) the
calculated award described in paragraphs 1.a. through g. above using the actual quarters completed
in the Period and (b) the target number of Performance Shares. In the event of a Change of Control
on or prior to the last day of the Period, any Performance Shares required to be issued will be
issued not later than 30th day following the occurrence of the Change of Control.

5. If your employment with Terra terminates for any reason during the Period and prior to the
occurrence of a Change of Control, all unearned Performance Shares shall automatically be forfeited
by you, except as follows:

a. If your employment terminates by reason of death, the Performance Shares shall be awarded
with the award calculated as described in paragraphs 1.a. through g. using the actual quarters
completed prior to the date of death. You may designate one or more beneficiaries by a writing
filed with Terra’s Corporate Secretary. Beneficiaries may be named contingently or successively and
may share in different proportions if so designated. In the event of a termination of your
employment by reason of death, any Performance Shares required to be issued will be issued not
later than the 74th day following the date of death.

 

-3-

 

b. If your employment terminates by reason of Disability, the Performance Shares shall
continue to be eligible for issuance pursuant to paragraphs 1.a. through g. and, if applicable,
paragraph 4 of this Agreement.

c. If your employment with Terra and its Subsidiaries terminates under special circumstances
(other than death or Disability), as determined by the Committee in its sole discretion, the
Committee shall determine, in a manner consistent with Section 162(m) of the Internal Revenue Code,
the number, if any, of Performance Shares that shall not be forfeited upon termination, the form of
payment (cash, shares or a combination) that you shall be entitled to receive with respect to any
such Performance Shares that are earned and the timing of any such payment that is made to you.

6. Although the Performance Shares are intended to provide you with an economic equivalent of
stock ownership, the award of Performance Shares hereunder shall not entitle you to vote or
exercise any of the other rights of a holder of Shares (including the right to receive dividends or
dividend equivalents).

7. This award shall not be effective unless you sign a copy of this letter and deliver it to
Terra’s Corporate Secretary, Terra Centre, 600 Fourth Street, Sioux City, Iowa 51101, before 4:30
p.m. central time on [DATE]. If the Corporate Secretary does not have your properly executed copy
of this letter before such time, then, anything in this letter to the contrary notwithstanding,
this Award shall terminate and be of no effect.

8. You hereby agree to pay to Terra, or otherwise make arrangements satisfactory to Terra
regarding payment of, any federal, state or local taxes required or authorized by law to be
withheld with respect to the award of the Performance Shares (the “Withholding Taxes”). Terra shall
have, to the extent permitted by law, the right to deduct from any payment of any kind otherwise
due to you, any Withholding Taxes and to condition the delivery of the Shares to be delivered upon
earning the Performance Shares on the payment to Terra of the Withholding Taxes. In lieu of the
payment of the Withholding Taxes in cash, you shall be entitled to pay all or a portion of the
Withholding Taxes by surrendering to Terra a portion of the Shares otherwise to be delivered upon
earning the Performance Shares.

9. Terra may, in the Committee’s sole discretion, at any time or from time to time, in lieu of
the delivery of all or any portion of the Shares earned pursuant to the Performance Shares, pay to
you cash equal to the average Fair Market Value (as defined in the Plan) of such Shares for the
last 20 trading days of 2010. Such cash payment shall be made on the same date that the Shares
would have otherwise been delivered.

10. Nothing in this Performance Share Award shall confer upon you any right to continue in the
employ of Terra or a Subsidiary, or affect the right of Terra or of any Subsidiary to terminate
your employment, with or without cause.

 

-4-

 

11. (i) It is intended that the provisions of this Agreement comply with Section 409A of the
Code and the regulations thereunder as in effect from time to time (“Section 409A”), and all
provisions of this Agreement shall be construed and interpreted in a manner consistent with the
requirements for avoiding taxes or penalties under Section 409A.

(ii) Neither you nor any of your creditors or beneficiaries shall have the right to subject
any deferred compensation (within the meaning of Section 409A) payable under this Agreement to any
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or
garnishment. Except as permitted under Section 409A, any deferred compensation (within the meaning
of Section 409A) payable to you or for your benefit under this Agreement may not be reduced by, or
offset against, any amount owing by you to Terra or any of its Affiliates.

(iii) If, at the time of your separation from service (within the meaning of Section 409A),
(A) you shall be a specified employee (within the meaning of Section 409A and using the
identification methodology selected by Terra from time to time) and (B) Terra shall make a good
faith determination that an amount payable hereunder constitutes deferred compensation (within the
meaning of Section 409A) the payment of which is required to be delayed pursuant to the six-month
delay rule set forth in Section 409A in order to avoid taxes or penalties under Section 409A, then
Terra shall not pay such amount on the otherwise scheduled payment date but shall instead pay it,
without interest, on the first business day after such six-month period.

(iv) Notwithstanding any provision of this Agreement to the contrary, in light of the
uncertainty with respect to the proper application of Section 409A, Terra reserves the right to
make amendments to this Agreement as Terra deems necessary or desirable to avoid the imposition of
taxes or penalties under Section 409A. In any case, you shall be solely responsible and liable for
the satisfaction of all taxes and penalties that may be imposed on you or for your account in
connection with this Agreement (including any taxes and penalties under Section 409A), and neither
Terra nor any of its Affiliates shall have any obligation to indemnify or otherwise hold you
harmless from any or all of such taxes or penalties.

12. Terra’s obligation with respect to this Award shall not be funded or secured in any
manner.

13. Your rights with respect to these Performance Shares may not be assigned or transferred in
any manner and shall not be subject to any lien, claim, encumbrance, obligation or liability of any
kind. This Agreement shall be construed in accordance with and governed by the laws of the State of
State of Maryland without regard to any State’s conflict of laws principles.

These Performance Shares are awarded pursuant to the Plan and are subject to its terms. A
copy of the Plan is being furnished to you with this letter and also is available on request from
the Terra’s Corporate Secretary.

 

-5-

 

If you have any questions with respect to this Performance Share Award, please feel free to
call upon me.

	 	 	 	 	 
	 	Very truly yours,

TERRA INDUSTRIES INC.

 	 
	 	By:  	 	 
	 	 	President and Chief Executive Officer 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Vice President, General Counsel
and Corporate Secretary 	 
	 

I hereby agree to the terms and conditions set forth above and acknowledge receipt of the 2007
Omnibus Incentive Compensation Plan and the Prospectus covering shares issued under that Plan.

	 	 	 
	Signature of Employee

	 	 
	 
	 	 
	 
	 	 

 

-6-Filed by Bowne Pure Compliance

Exhibit 10.1

MAKO Surgical Corp.

2008 LEADERSHIP CASH BONUS PLAN

	 	 	 
	Purpose of the Plan:

	 	The MAKO Surgical Corp. 2008 Leadership Cash Bonus Plan is designed
to attract, retain and motivate management-level employees by
providing meaningful annual cash incentives. Capitalized terms set
forth herein are defined in the “Definitions” section below.
	 
	 	 
	Administration:

	 	The Committee shall administer and interpret this Plan. The Committee
shall also have the sole authority to establish such rules and
regulations, not inconsistent with the provisions of this Plan, as it
deems necessary or desirable for the proper administration of the
Plan and shall make such determinations and interpretations under and
in connection with this Plan as it deems necessary or desirable,
including without limitation the determination of the Distribution
Date and the Scorecard Percentage, Target Bonus Percentages and
Baseline Percentages to be used to calculate Bonuses for the Plan
Year.
	 
	 	 
	 

	 	This Plan, and all such rules, regulations, determinations and
interpretations of the Committee, shall be binding on the Company and
all Participants and upon their legal representatives, heirs,
beneficiaries, successors and assigns and upon all other persons
claiming under or through any of them.
	 
	 	 
	Participants:

	 	Each active, full-time management-level employee of the Company, in
good standing, as determined by the Committee, on the Measurement
Date (except as specifically provided below under the caption,
“Termination of Employment; Death; Disability”) whose Employment
Start Date preceded October 1 of the Plan Year may participate in
this Plan. The Committee, in its discretion, will determine, on a
case-by-case basis, the eligibility of management-level employees to
participate in this Plan who are hired during the fourth quarter of
the Plan Year.
	 
	 	 
	Determination of Bonus
Awards:

	 	After the Measurement Date, the Committee will review the Scorecard
to determine, for purposes of awarding Bonuses under this Plan,
whether the Company attained the minimum Scorecard Percentage.
	 
	 	 
	 

	 	If the Company has attained the minimum Scorecard Percentage for the
Plan Year, a Bonus shall be awarded to each Participant. The amount
of the Bonus shall be calculated by multiplying that Participant’s
Base Salary by the applicable Target Bonus Percentage (as described
below).
	 
	 	 
	 

	 	If the Company has attained a Scorecard Percentage that falls in
between the minimum and maximum Scorecard Percentages, so that the
Target Bonus Percentage must be prorated, the amount of the Bonus to
be awarded to each Participant shall be calculated by multiplying
that Participant’s Base Salary by the applicable Actual Bonus
Percentage.
	 
	 	 
	Target Bonus Percentages:

	 	Target Bonus Percentages are the minimum and maximum percentages of
Base Salary established by the Committee that will apply for the Plan
Year at each Management Level.
	 
	 	 
	 

	 	Unless otherwise determined by the Committee, if a Participant moves
to a higher Target Bonus Percentage level during the Plan Year, that
Participant’s Target Bonus Percentage will be reset at the higher
level for the entire Plan Year. If a Participant moves to a lower
Target Bonus Percentage level during the Plan Year, that
Participant’s Target Bonus Percentage will be reset at the lower
level for the entire Plan Year.

 

 

 

	 	 	 
	Termination of
Employment; Death;
Disability:

	 	No Bonus will be paid to any individual who is not a Participant on
both the Measurement Date and the Distribution Date, except if due to
death or disability, unless otherwise specifically agreed by the
Board or the Committee.
	 
	 	 
	 

	 	Any Participant who dies or becomes Permanently Disabled during the
Plan Year will be paid a Bonus (if and to the extent awarded under
this Plan) based upon the actual Base Salary paid to the Participant
from the beginning of the Plan Year through the date of retirement,
death or Permanent Disability. Any such Bonus will be paid on the
Distribution Date.
	 
	 	 
	Payment of Bonus Awards:

	 	Bonus awards for the Plan Year will be paid in cash to a Participant
(or to his or her beneficiary, in the event of death) on the
Distribution Date, which will occur on or before March 15, 2009.
	 
	 	 
	 

	 	Except in the event of death, no benefit payable under this Plan
shall be subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance or charge, and any such
attempted action shall be void and no such benefit shall be in any
manner liable for or subject to debts, contracts, liabilities,
engagements or torts of any Participant or former Participant.
	 
	 	 
	Absence of Liability:

	 	A member of the Board or the Committee or any officer of the Company
shall not be liable for any act or inaction hereunder, whether of
commission or omission.
	 
	 	 
	Funding of Plan:

	 	The Company shall not be required to fund or otherwise segregate any
cash or any other assets that may at any time be paid to Participants
under this Plan. This Plan shall constitute an “unfunded” plan of the
Company. The Company shall not, by any provision of this Plan, be
deemed to be a trustee of any property, and any rights of a
Participant or former Participant shall be limited to those of a
general unsecured creditor.
	 
	 	 
	Withholding:

	 	The Company shall have the right to make such provisions as it deems
necessary or appropriate to satisfy any withholding obligations it
may have under federal, state or local income or other tax laws. The
Company shall have no liability for any tax imposed on a Participant
as a result of amounts paid or payable to the Participant under this
Plan.
	 
	 	 
	Amendment, Suspension or
Termination of Plan:

	 	In the sole discretion of the Committee or the Board, this Plan, or
any of its provisions, may from time to time be amended, suspended or
terminated in whole or in part, and if suspended or terminated, may
be reinstated.
	 
	 	 
	No Right to Bonus or
Continued Employment:

	 	Neither the establishment of the Plan nor the provision for or
payment of any amounts hereunder, nor any action of the Company, the
Board or the Committee in respect of this Plan, shall be held or
construed to confer upon any person any legal right to receive, or
any interest in, a Bonus under this Plan, or any legal right to be
continued in the employ of the Company or of any Company subsidiary
or affiliate. The Company expressly reserves any and all rights to
discharge a Participant in its sole discretion, without liability to
any person, entity or governing body under this Plan or otherwise.
	 
	 	 
	Successors and Assigns:

	 	This Plan shall be binding upon the Company’s successors and assigns.
	 
	 	 
	Governing Law:

	 	All questions pertaining to the construction, regulation, validity
and effect of the provisions of this Plan shall be determined in
accordance with the laws of the State of Florida without regard to
its conflict of law provisions.
	 
	 	 
	Headings and Captions:

	 	The headings and captions of sections of this Plan are for
convenience of reference only and are not intended to qualify the
meaning of any section.
	 
	 	 
	Definitions:

	 	“Actual Bonus Percentage” means, for a Participant for the Plan Year,
the percentage derived by multiplying the applicable Baseline
Percentage by the Scorecard Percentage.

 

 

 

	 	 	 
	 

	 	“Baseline Percentage” means, for the Plan Year, the percentage
allocated to each Management Level if the Company were to attain 100%
of the performance goals set forth in the Scorecard.
	 
	 	 
	 

	 	“Base Salary” for any Participant means the annual base salary as of
the Measurement Date, prorated for the number of business days that
the Participant actually worked during the Plan Year. Base Salary
does not include any expense reimbursements, relocation payments,
other incentive or variable compensation or bonuses or similar
one-time or extraordinary payments.
	 
	 	 
	 

	 	“Board” means the Company’s Board of Directors.
	 
	 	 
	 

	 	“Bonus” means a Participant’s actual bonus awarded, or to be awarded,
for the Plan Year.
	 
	 	 
	 

	 	“Committee” means the Compensation Committee of the Board.
	 
	 	 
	 

	 	“Company” or “MAKO” means MAKO Surgical Corp. or any subsidiary
designated by the Committee as participating in and subject to this
Plan.
	 
	 	 
	 

	 	“Distribution Date” refers to the date on which Bonus awards are paid
out to each Participant.
	 
	 	 
	 

	 	“Employment Start Date” means the first business day on which a
Participant is a regular employee of the Company in accordance with
the Company’s payroll.
	 
	 	 
	 

	 	“Management Level” refers to the Company’s tiered management levels
consisting of Level A: CEO and Senior Vice Presidents; Level B —
Vice Presidents; Level C — Directors; Level D — Managers; and other
positions with equivalent authority and decision-making ability at
each such level. Each Participant shall have a Management Level
designated on file with the Company’s Human Resources Department.
	 
	 	 
	 

	 	“Measurement Date” means December 31, 2008.
	 
	 	 
	 

	 	“Participant” means a full-time, active Management-Level employee of
the Company in good standing.
	 
	 	 
	 

	 	“Permanent Disability” means that a Participant has become
permanently disabled under any policy of disability income insurance
then in force covering Company employees.
	 
	 	 
	 

	 	“Plan” means this MAKO Surgical Corp. 2008 Leadership Cash Bonus Plan.
	 
	 	 
	 

	 	“Plan Year” means the calendar year beginning January 1, 2008 and
ending December 31, 2008.
	 
	 	 
	 

	 	“Scorecard” refers to the Company’s 2008 Metrics Scorecard that was
adopted by the Board for purposes of determining whether and to what
extent the defined business objectives of the Company were attained
during 2008 and that was approved by the Committee for purposes of
determining compensation matters.
	 
	 	 
	 

	 	“Scorecard Percentage” refers to the percentage of the performance
goals set forth in the Scorecard that the Company attained for the
Plan Year.
	 
	 	 
	 

	 	“Target Bonus Percentage” means, for a Participant for the Plan Year,
the percentage of Base Salary that the Participant is eligible to
earn for the Plan Year.

Approved by the Committee as of July 21, 2008.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00145-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00145-of-00352.parquet"}]]