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Exhibit 10.18    
    

 
 

CF INDUSTRIES, INC.
  
    ANNUAL INCENTIVE PLAN
  
    Effective January 1, 2004    
    

 
 
 

TABLE OF CONTENTS    
    

	Purpose	 	3
	

Participation Eligibility	
 	

3
	

Award Opportunities	
 	

3
	

Company Performance	
 	

4
	

Individual Performance	
 	

5
	

Payment of Awards	
 	

5
	

AIP Awards and Employee Benefits	
 	

6
	

Administrative Provisions	
 	

6
	

Plan Administration	
 	

6
	

Exhibit I	
 	

7

2

 
 
 

CF INDUSTRIES, INC.    
    

 
 

ANNUAL INCENTIVE PLAN    
    

Purpose  

        The purpose of the Annual Incentive Plan ("AIP") is to support the accomplishment of the Company's financial objectives. In doing so the AIP is designed to: 

	•
	Closely align the compensation of Plan participants with the financial interests of the Company's owners.

	•
	Provide opportunities, when combined with base salaries, for participants to earn competitive levels of direct cash compensation in order to attract
and retain high-performing management employees.

	•
	Define a more significant portion of management compensation as being "at risk", thereby providing enhanced opportunities for pay for
performance.

Participation Eligibility  

        Participation in the AIP is limited to corporate officers and other management positions having the ability to contribute meaningfully to the Company's business
results. 

        Participation
in the AIP must be approved by the President and Chief Executive Officer of the Company. 

Award Opportunities  

        Each approved participant is assigned to one of seven Target Award Groups. A participant's assigned Group reflects a combination of his/her position's relative
responsibility level and competitive compensation level. Each Group has two target award components, one based on overall Company performance and the other based upon the performance of the individual
participant. The total target award for each Group ranges from 16% to 70% of base salary. Within the basic structure of the Plan, the minimum award in each Group is zero and the maximum award is 200%
of target. 

        The
award opportunities for participants in each Group are as follows: 

	Target Award
	 	Target Award as a % of Base Salary
	 
	Group
 
	 	Company

Performance
	 	Individual

Performance
	 	Total

Target
	 
	1.	 	President & CEO	 	50	%	20	%	70	%
	2.	 	Exec. & Sr. VP's	 	35	%	15	%	50	%
	3.	 	Vice Presidents	 	20	%	15	%	35	%
	4.	 	Selected Gen. Mgrs. & Directors	 	15	%	15	%	30	%
	5.	 	Selected Dir.'s & Mgr.'s	 	12	%	12	%	24	%
	6.	 	Selected Dir.'s & Mgr.'s	 	10	%	10	%	20	%
	7.	 	Selected Dir.'s & Mgr.'s	 	8	%	8	%	16	%

Company Performance  

        The performance measure used to determine this portion of the aggregate award is Pretax Return on Equity (PTROE). This measure aligns a portion of participants'
compensation directly with the absolute level of return realized by the Company's owners. When the return to the owners is greater than the established standard, the award under this component of the
Plan will be greater than target. When the return to our owners is less than the established standard, the award will be less than target (and possibly zero). The target performance standard under
this component of the AIP is a PTROE of 5% for 2004 and 10% for 2005 going forward. Exhibit I presents the definition of PTROE. The Company's actual PTROE each year will be confirmed by the CEO
after the close of the year. 

        For
any award to be granted under the Company Performance component, PTROE must equal or exceed a threshold standard. At threshold, the award is equal to 10 percent of target.
Awards for performance between the threshold and target standards or between the target and maximum standards are 

3

 

determined
proportionately. The required performance standards for the entire range of awards for the first Plan Year (2004) and going forward beginning in 2005 are as follows: 

PTROE
Required for Company Performance Award to be Granted at: 

	Plan Year
 
	 	Threshold Level

(Award = 10% of Target)
	 	Target Level

(Award = 100% of Target)
	 	Maximum Level

(Award = 200% of Target)

	2004	 	0.5%	 	5.0%	 	15.0%
	2005 and forward	 	1.0%	 	10.0%	 	20.0%

Individual Performance  

        A portion of a Plan participant's award is based on performance against pre-established annual individual goals. The determination of actual awards
for the Individual Performance component of the Plan is subject to the following overall provisions: 

	•
	The Individual Performance Award (IPA) for the President & Chief Executive Officer is determined by the Compensation Committee and/or Board of
Directors based on achievement of goals. However, in the event that no awards are granted under the Company Performance component, no IPA is granted to the CEO.

	•
	The pool of award dollars available for distribution to all Vice President positions and above (except the CEO) is equal to these participants'
target awards in aggregate multiplied by the greater of 1) 100%, or 2) the % of target attained under the Company Performance component. As with the CEO position, if no awards are
granted under the Company Performance component of the Plan, no IPA's are granted to these participants. All approved IPA's for this group of participants are communicated to the Board of
Directors.

	•
	The pool of award dollars available for distribution to participants below the Vice President level is equal to the participants' target awards in
aggregate multiplied by the greater of 1) 100%, or 2) the % of target attained under the Company Performance component.

	•
	An initially determined award under this Plan component for any participant (other than the CEO) may be further adjusted upward or downward by as
much as 100% based on the participant's performance. The sum of all such upward and downward adjustments must equal zero.

Payment of Awards  

        Payment of approved awards to participants is made in cash during the first quarter of the calendar year following the completion of the Plan Year. 

        Participants
may elect to defer all or a portion of their AIP awards under the provisions of the Company's Executive Compensation Equalization and Deferral Plan ("ECED") or Management
Deferred Compensation Plan ("MDC"). 

        Payment
of awards to a participant whose employment with the Company terminates is as follows: 

	•
	Termination due to Retirement, Death or Disability (disability as defined in the CF Industries Inc. Thrift Savings
Plan)

Awards
are pro-rated based on the participant's base earnings through the date of termination and paid out after the close of the Plan Year. 

	•
	Termination for Cause

Awards
for the current Plan Year (the year of termination) and awards not yet paid out for the previous Plan Year are forfeited. 

	•
	Termination for Any Other Reason

Awards
for the current Plan Year (the year of termination) are forfeited. Awards for a completed Plan Year not yet paid out are paid out after the close of the Plan Year. 

	•
	Awards
forfeited under the AIP will not be reallocated to other participants.

	•
	Payment
of all deferred awards to a terminated participant is made in accordance with the participant's existing ECED or MDC election. 

4

 

AIP Awards and Employee Benefits  

        Participants' AIP awards, whether paid in cash or deferred, are included in the definition of earnings for the purpose of calculating pension benefits under the
CF Industries, Inc. Retirement Income Plan. AIP awards are not used for calculating any other employee benefits. 

Administrative Provisions  

	•
	Change
in Control/or Asset Sale—Upon a change in control or a significant sale of Company assets, the Company and Individual Performance results will be
determined year-to-date for the current Plan Year. Based on these results awards will be paid in cash to participants on a pro-rata basis within 45 days
after the date of change in control or asset sale.

	•
	Plan
Revision/Termination—The Company may modify or terminate the Annual Incentive Plan at any time. In the event of plan termination, the Company and Individual
Performance results will be determined from the beginning of the current Plan Year to the effective date of plan termination. Based on these results, awards will be paid in cash to participants on a
pro-rata basis within 45 days after the date of the plan termination. 

Plan Administration  

        The President and Chief Executive Officer of the Company serves as the Plan Administrator, with authority to control and manage the operation and administration
of the Plan. 

 
 

Exhibit I
  Definition of Pretax Return on Equity

        The
performance measure for the Company Performance portion of the Annual Incentive Plan is Pretax Return on Equity (PTROE) defined as follows: 

	PTROE	 	=	 	Income Before Taxes/Equity
	

Income Before Taxes	
 	

=	
 	

Earnings Before Patronage, Income Taxes & Cumulative Effect of Change in Accounting Principle (EB4P&T) per CF's income statement
	

 	
 	

+	
 	

Accrued expenses for CF's incentive compensation plans for current year
	

 	
 	

+/-	
 	

Special Adjustments necessary to remove items/events included in EB4P&T but not representative of earnings attributable to the Plan year (e.g., a one-time charge or credit to current year earnings attributable to events outside Plan
year)*
	

Equity	
 	

=	
 	

Beginning Equity (equity at the end of the month preceding the start of the Plan year)
	

 	
 	

-	
 	

Cash Distributions to Owners prorated by the portion of year that follows the distribution
	

Beginning Equity	
 	

=	
 	

Total Stockholders' Equity
	

 	
 	

+	
 	

Accumulated Other Comprehensive Loss/(Income)
	

 	
 	

+	
 	

Distributions Payable to Owners
	

 	
 	

+	
 	

Deferred Tax Liabilities
	

 	
 	

-	
 	

Deferred Tax Assets

        Income
Before Taxes and Equity will be further adjusted as necessary to reflect all Investments of more than $10 million as if accounting had been handled using the equity method
(e.g., if CF has a 30% interest in a venture, Income Before Taxes should include 30% of the pretax income or loss of the venture rather than just distributions received from the venture). 

	*
	Management
will be responsible for identifying and proposing any such Special Adjustments to the Board for approval. Special Adjustments are expected to be required only in unusual
situations. 

5

QuickLinks

Exhibit 10.18

CF INDUSTRIES, INC. ANNUAL INCENTIVE PLAN Effective January 1, 2004

TABLE OF CONTENTS

CF INDUSTRIES, INC.

ANNUAL INCENTIVE PLAN

Exhibit I Definition of Pretax Return on EquityExhibit 4.3

 

COMMON STOCK

 

	
   

  	
  RBC BEARINGS INCORPORATED

  	
   

  
	
  NUMBER

  	
   

  	
  SHARES

  
	
  RBC

  	
  INCORPORATED UNDER THE LAWS OF THE STATE OF
  DELAWARE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SEE REVERSE FOR CERTAIN DEFINITIONS

  
	
  THIS
  CERTIFICATE IS TRANSFERABLE IN

  	
   

  	
   

  
	
  NEW
  YORK, NEW YORK AND CHICAGO, ILLINOIS

  	
   

  	
  CUSIP 755248 10 4

  
	
   

  	
   

  	
   

  
	
  CERTIFICATE OF STOCK

  
	
   

  
	
  THIS CERTIFIES THAT

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  is the
  owner of

  
	
   

  
	
  FULLY
  PAID AND NON-ASSESSABLE SHARES OF THE PAR VALUE OF $0.01 EACH OF THE COMMON
  STOCK OF

  
	
  RBC BEARINGS INCORPORATED

  
	
  transferable on the books
  of the Corporation by the holder hereof in person or by duly authorized
  attorney upon surrender of this certificate properly endorsed. 

  
	
  This
  certificate is not valid unless countersigned and registered by the Transfer
  Agent and Registrar.

  
	
  WITNESS the facsimile seal
  of the Corporation and the facsimile signatures of its duly authorized
  officers.

  
	
   

  
	
  Dated:

  	
  

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SIGNATURE TO COME

  	
   

  	
   

  	
  SIGNATURE TO COME

  	
   

  
	
   

  	
   

  
	
   

  CHIEF
  FINANCIAL OFFICER

  	
  PRESIDENT
  AND CHIEF EXECUTIVE OFFICER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  COUNTERSIGNED AND
  REGISTERED:

  
	
   

  	
   

  	
  LASALLE NATIONAL BANK

  
	
   

  	
  TRANSFER AGENT AND
  REGISTRAR

  
	
   

  	
   

  
	
   

  	
   

  	
  BY:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AUTHORIZED SIGNATURE

  
													

 

© SECURITY-COLUMBIAN   UNITED STATES BANKNOTE
CORPORATION

 

 

The Corporation will furnish without charge to each
stockholder who so requests a statement of the powers, designations,
preferences and relative, participating, optional or other special rights of
each class of stock or series thereof and the qualifications, limitations or
restrictions of such preferences and/or rights.

 

The
following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

 

	
   

  	
  TEN COM

  	
  —

  	
  as tenants in common

  	
  UNIF GIFT MIN ACT—

  	
   

  	
  Custodian

  	
   

  
	
   

  	
  TEN ENT

  	
  —

  	
  as tenants by the entireties

  	
   

  	
  (Cust)

  	
   

  	
  (Minor)

  
	
   

  	
  JT TEN

  	
  —

  	
  as joint tenants with right of survivorship 

  	
   

  	
  under Uniform Gifts to
  Minors

  
	
   

  	
   

  	
  and not as tenants in
  common

  	
   

  	
  Act

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  (State)

  
	
   

  	
   

  	
   

  	
   

  
	
  Additional abbreviations may also be used though not in the above
  list.

  
	
   

  
	
  For value
  received,

  	
   

  	
  hereby sell,
  assign and transfer unto

  
	
   

  
	
  PLEASE INSERT SOCIAL SECURITY OR OTHER

  IDENTIFYING NUMBER OF ASSIGNEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
  (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF
  ASSIGNEE)

  
	
   

  	
   

  	
   

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  
																

 

shares of the capital stock
represented by the within Certificate, and do hereby irrevocably constitute and
appoint 

 

 

	
   

  	
   Attorney to 

  

 

transfer the said stock on
the books of the within named Corporation with full power of substitution in
the premises.

 

 

	
  Dated

  	
   

  	
   

  

 

 

	
   

  	
   

  
	
  NOTICE:

  	
  THE SIGNATURE TO THIS
  ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE
  CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY
  CHANGE WHATEVER.

  

 

 

	
  SIGNATURE GUARANTEED:

  
	
   

  
	
  By

  	
   

  	
   

  
	
  THE SIGNATURE(S) SHOULD BE
  GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCK-BROKERS,
  SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN
  APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}]]