Document:

EXHIBIT 10.17

 

CF INDUSTRIES HOLDNGS, INC.

 

January 8,
2008

 

[Name]

[Address]

[City]
[State] [ZIP]

 

Dear
[Name]:

 

I
am pleased to offer you participation in the CF Industries, Inc. Annual
Incentive Program (AIP) for 2008.  This
year has great potential and I look forward to the possibilities we’ll be able
to achieve.  This letter will serve as
your Award Agreement.

 

For the 2008 program year, your Target Award is [Percent]% of your base

earnings for January 1 through December 31, 2008.

 

The
Plan pays a percent of your Target Award based on actual Cash Flow Return on
Capital Employed (CFROC) earned by CF as of December 31, 2008.  For the 2008 program year, the determination
of the aggregate award pool is based upon the following performance schedule:

 

	
  Cash Flow Return on

  Average Gross Capital

  Employed

  	
   

  	
  Aggregate

  Award Pool as a

  % of Target

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  42

  	
  %

  	
  (Maximum)

  	
   

  	
  200

  	
  %

  
	
  33

  	
   

  	
   

  	
   

  	
  150

  	
   

  
	
  19

  	
   

  	
  (Target)

  	
   

  	
  100

  	
   

  
	
  5

  	
   

  	
  (Threshold)

  	
   

  	
  50

  	
   

  

 

The
enclosed AIP Plan Document provides specific details as to the administration
of this plan.  Please read the attached
prior to your acceptance of this invitation to participate in the AIP.

 

There
are a few additional items to highlight. 
Pursuant to Section 7(b) of the 2005 Equity and Incentive
Plan, in the event of a Change in Control, the performance goals applicable to
this Award shall be deemed to be achieved at the target or actual performance
level, whichever is higher.

 

The
Compensation Committee of the Company’s Board of Directors has the sole
discretion and authority to make equitable adjustments to the AIP if an event occurs
which the Committee deems worthy of Plan adjustment.  However, in no case will the Committee approve
an adjustment that would result in payments 

 

 

CF INDUSTRIES HOLDNGS, INC.

 

under
the plan failing to qualify as “performance-based compensation” for the
purposes of Section 162(m) of the Internal Revenue Code.

 

The
enclosed Plan document, plus the 2005 Equity and Incentive Plan document,
constitute the entire agreement between you, the participant, and CF.  If there is a discrepancy between this Award Agreement
and the Plan documents, the terms and conditions specified in the Plan
documents will govern.

 

Please
review the terms of this Award Agreement as per above (your target award and
the performance schedule as well as the attached Plan document).  If you wish to accept the award, please sign
below and return one of these signed copies to me by January 21, 2008.

 

Thank
you in advance for your commitment and contributions to CF.  I am excited about the opportunities we all
have in 2008 and am pleased to be working with you to achieve them.

 

Sincerely
yours,

 

 

Wendy
Jablow Spertus

	
  Vice
  President, Human Resources

  	
   

  

 

 

 

 

	
  PARTICIPANT

  
	
   

  
	
   

  	
   

  
	
  Signature

  
	
   

  
	
   

  	
   

  
	
  DateEXHIBIT 10.19

 

CF INDUSTRIES HOLDINGS, INC.

2005 EQUITY AND INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AWARD AGREEMENT

 

Capitalized terms used but
not otherwise defined herein shall have the meaning ascribed to such terms as
defined in the CF Industries Holdings, Inc. 2005 Equity and Incentive Plan
(the “Plan”).  Please review this
Non-Qualified Stock Option Award Agreement and promptly return a signed copy to
Wendy Jablow Spertus in order to render the grant effective.

 

1.                                      NOTICE OF STOCK OPTION GRANT

 

[Name]

 

You (the “Optionee”) have been granted an option to
purchase shares of the Company’s Stock, subject to the terms and conditions of
the Plan and this Award Agreement, as follows:

 

	
  Date
  of Grant

  	
   

  	
  [Date]

  
	
  Exercise
  Price per Share

  	
   

  	
  [Price]

  
	
  Number
  of Shares Subject to 

  the Option

  	
   

  	
  [#
  Shares]

  
	
  Type
  of Option

  	
   

  	
  Non-Qualified
  Option (NQSO)

  
	
  Term/Expiration
  Date

  	
   

  	
  Tenth
  anniversary of the Date of Grant, unless earlier terminated as provided in
  the Plan and/or this Award Agreement

  

 

Vesting Schedule:

 

Subject to accelerated vesting upon a Change in
Control or otherwise as set forth herein or in the Plan, this Option may be
exercised, in whole or in part, in accordance with the following schedule (the “Vesting
Schedule”):

 

	
  Date

  	
   

  	
  Portion of Total Shares

  Exercisable

  
	
  On or after the first
  anniversary of the Date of Grant

  	
   

  	
  33 1/3% (the “First
  Installment”)

  
	
  On or after the second
  anniversary of the Date of Grant

  	
   

  	
  66 2/3% (the “Second
  Installment”)

  
	
  On or after the third
  anniversary of the Date of Grant

  	
   

  	
  100% (the “Third
  Installment”)

  

 

 

2.                                      AGREEMENT

 

a.                                       Grant of Option.

 

The Company hereby grants to the Optionee an Option
to purchase the number of shares of Stock at the exercise price per share set
forth in Section 1 (the “Exercise Price”), subject to the terms and conditions
of the Plan, which is incorporated herein by reference. This Option shall not
be treated as an incentive stock option within the meaning of Section 422(b) of
the Code.

 

b.                                      Exercise of Option.

 

(a)           Right
to Exercise. This Option is exercisable during its term in accordance with
the Vesting Schedule and the applicable provisions of the Plan and this Award
Agreement.  Unless otherwise determined
by the Committee, this Option shall only become exercisable on the dates set
forth in the Vesting Schedule.

 

(b)           Method
of Exercise. This Option is exercisable by delivery of an option exercise
notice, in the form specified by the Company (the “Exercise Notice”), which will
be provided to the Optionee separately by the Plan’s administrator.  The
Exercise Notice shall be accompanied by payment of the aggregate exercise price
for all shares of Stock for which the Option is being exercised (“Exercised
Shares”).  This Option shall be deemed to
be exercised upon receipt by the Company of such fully executed Exercise Notice
accompanied by such aggregate exercise price.

 

(c)           Method
of Payment.

 

Payment of the aggregate Exercise Price of the
Exercised Shares shall be by any of the following, or a combination thereof, at
the election of the Optionee:

 

(i)                    cash;
or

 

(ii)                   delivery
of shares of Stock previously owned by the Optionee (for a period of at least
six months) having a Fair Market Value equal to or less than the aggregate
exercise price for such Exercised Shares; or

 

(iii)                  under
a “broker cashless exercise” program implemented by the Company in connection
with the Plan; or

 

(iv)                  the
Optionee’s written authorization for the Company to withhold shares of
Exercised Shares having a Fair Market Value equal to or less than the aggregate
exercise price for such Exercised Shares.

 

2

 

c.                                       Withholding.

 

The Company or a Subsidiary shall withhold all
applicable taxes or other amounts required by law from all amounts paid or
delivered in respect of the Option.  The
Optionee may satisfy the withholding obligation by paying the amount of any
taxes in cash or, shares may be withheld from the Exercised Shares to satisfy
the obligation in full or in part.  The
amount of the tax withholding and the number of shares to be withheld shall be
determined by the Committee with reference to the Fair Market Value of the
Stock when the withholding is required to be made.  If shares are withheld, such shares shall
have a Fair Market Value equal to or less than the minimum statutorily required
withholding obligation.

 

d.                                      Non-Transferability of Option.

 

Unless otherwise determined by the Committee, this
Option may not be transferred in any manner otherwise than by will or by the
laws of descent or distribution and may be exercised during the lifetime of the
Optionee only by the Optionee.  The terms
of the Plan and this Award Agreement shall be binding upon the executors,
administrators, heirs, successors and assigns of the Optionee.

 

e.                                       Term of Option/Termination of Employment or Service.

 

(a)           Unexercisable Options. Except as
specifically set forth below, if the Optionee’s employment with the Company is
terminated for any reason, and if the Committee does not determine otherwise,
any portion of the Option that has not become exercisable in accordance with
the Vesting Schedule shall immediately be forfeited and shall terminate.

 

(b)           Termination for Cause. If the Optionee’s
employment with the Company terminates for Cause (as defined below), then the
Option shall immediately terminate, regardless of whether or not it has become
exercisable.

 

(c)           Termination for Death.  If the Optionee dies while in the employment
of the Company, then the outstanding portion of this Option shall become fully
exercisable and Employee’s estate or the person who acquires the Option by will
or the laws of descent and distribution or otherwise, may exercise the Option
for one year following the date of Optionee’s death.  At the end of such period the Option shall
immediately terminate.

 

(d)           Termination for Disability.  If the Optionee’s employment with the Company
terminates as a result of Disability (as defined below), then this Option shall
become fully exercisable and the Optionee, his guardian or estate, as the case
may be, may exercise the Option for one year following the date of Optionee’s
termination of employment.  At the end of
such period the Option shall immediately terminate.

 

(e)           Termination for Retirement.  If the Optionee’s employment with the Company
terminates as a result of Retirement (as defined below), then the 

 

3

 

Optionee (or any individual authorized to act on the Optionee’s
behalf) may exercise the Option, to the extent it was exercisable on the date
of Optionee’s Retirement, for four years following such date. At the end of
such period the exercisable portion of the Option shall immediately terminate.

 

(f)            Other Terminations.  If
the Optionee’s employment with the Company terminates for any reason other than
those set forth in (b) through (e) above, then the Optionee (or
anyone acting on Optionee’s behalf) may exercise the Option, to the extent it
was exercisable as of the date of Optionee’s termination of employment, for 90
days following the date of Optionee’s termination of the employment.  At the end of such period the exercisable
portion of the Option shall immediately terminate.

 

(g)           Employment Relationship.  For purposes of this Award Agreement, Optionee
shall be considered to be in the employment of the Company so long as Optionee
remains as an employee or consultant for either the Company or an affiliate of
the Company or for a corporation (or an affiliate thereof) that assumes or
substitutes a new option for this Option. An Optionee shall not be considered
to be in the employment of the Company if the affiliate which employs
the Optionee ceases to be an affiliate of the Company. Any question as to whether and when there has been a termination of
such employment, and the cause of such termination, shall be determined by the Committee or its
delegate, as appropriate, and such determination shall be final.

 

(h)           Maximum Term.  Notwithstanding anything to the contrary, the
Option shall in no case be exercisable on or following the expiration date set
forth in Section 1.

 

(i)            Change in Control. 
In addition to becoming fully vested upon a Change in Control, this
Option, to the extent outstanding, shall remain exercisable until the tenth
anniversary of the Date of Grant.

 

For
purposes of this Award Agreement:

 

“Cause”
shall have the meaning ascribed to such term in the Optionee’s individual
employment, severance or other agreement with the Company or, if the Optionee
is not party to such an agreement, “Cause” shall mean (i) dishonesty in
the performance of the Optionee’s duties and (ii) the Optionee’s
malfeasance or misconduct in connection with the Optionee’s duties or any act
or omission which is injurious to the Company or its Subsidiaries or
affiliates, monetarily or otherwise.

 

“Disability”
shall have the meaning ascribed to such term in the Optionee’s individual
employment, severance or other agreement with the Company or, if the Optionee
is not party to such an agreement, “Disability” shall mean Optionee’s inability
because of ill health, physical or mental disability, to perform Optionee’s
duties for a period of 180 days in any twelve month period.

 

4

 

“Retirement”
shall mean the Optionee’s termination of employment, other than for Cause,
death or Disability, following the attainment of the Optionee of at least age sixty.

 

f.                                         Entire Agreement; Governing Law.

 

The Plan is incorporated
herein by reference.  The Plan and this
Award Agreement constitute the entire agreement of the parties with respect to
the subject matter hereof and supersede in their entirety all prior
undertakings and agreements of the Company and the Optionee with respect to the
subject matter hereof, and may not be modified except by means of a writing
signed by the Company and the Optionee. 
If there is a conflict between the terms and conditions of the Plan and
the terms and conditions of this Award Agreement, the terms and conditions of
the Plan shall govern. This Award Agreement is governed by the internal
substantive laws, but not the choice of law rules, of the State of Delaware.

 

g.                                      No Guarantee of Continued Service.

 

The Optionee acknowledges and agrees that this Award
Agreement, the transactions contemplated hereunder and the Vesting Schedule do
not constitute an express or implied promise of continued engagement as an
employee or as a service provider for any period and shall not interfere with
the Optionee’s right or the Company’s right to terminate the Optionee’s
relationship as an employee or as a service provider at any time, with or
without Cause.

 

*                              *                              *                              *                              *

 

By the Optionee’s signature and the signature of the Company’s
representative below, the Optionee and the Company agree that this Option is
granted under and governed by the terms and conditions of the Plan and this
Award Agreement.  The Optionee has
reviewed the Plan and this Award Agreement in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Award
Agreement and fully understands all provisions of the Plan and Award
Agreement.  The Optionee hereby agrees to
accept as binding, conclusive and final all decisions or interpretations of the
Committee upon any questions relating to the Plan and Award Agreement.

 

 

	
  OPTIONEE

  	
   

  	
    CF
  INDUSTRIES HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
    Signature

  	
   

  	
    By:
  Wendy Jablow Spertus

  
	
   

  	
   

  	
    Title:
  Vice President, Human Resources

  

 

5

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