Document:

ex10p20.htm

     

      
        

      

    

     

    Exhibit 10.20

    

    

    2008
OFFICER BONUS PROGRAM

    UNDER
THE

    ANHEUSER-BUSCH
OFFICER BONUS PLAN

    

    

    The Compensation
Committee (the "Committee") of the Board of Directors of Anheuser-Busch
Companies, Inc. (the "Company") hereby establishes the 2008 Officer Bonus
Program (the "Program") in accordance with the Anheuser-Busch Officer Bonus Plan
(the "Plan"), the terms of which are incorporated herein by reference, as
follows:

    

    Section 1. PERFORMANCE
PERIOD.  The calendar year 2008 ("2008") shall constitute the
Performance Period for the purpose of determining bonuses payable (“Bonuses”) to
Participants in the Program.

    

    Section 2. PARTICIPANTS AND DESIGNATED COVERED
EMPLOYEES.  The officers of the Company listed on Schedule A
attached hereto are hereby designated as Participants in the
Program.  The first nine Participants listed on Schedule A
("Designated Covered Employees") are those the Committee believes may be or
become covered employees (“Covered Employees”) as that term is defined by
Section 162(m) of the Internal Revenue Code of 1986, as amended (the
"Code").  The Committee in its discretion may designate other officers
as Participants in the Program.

    

    Section 3. PERFORMANCE
GOAL.  The performance goal for 2008 (the "Performance Goal")
shall be met if Adjusted Pretax Earnings for 2008 equals or exceeds 75% of
Adjusted Pretax Earnings for 2007.  Subject to Section 9, no Bonus
shall be paid to Designated Covered Employees under the Program if the
Performance Goal is not satisfied.  For purposes of this Program,
"Adjusted Pretax Earnings" shall be deemed to mean the amount of the Company's
consolidated income before income taxes, determined by the Company on the same
basis on which its annual financial statements are calculated, adjusted as
follows:

    

    
      	
               
      

            	
              (a)

            	
              increased or
      decreased to eliminate the effect of any normalization adjustment made in
      calculating consolidated income before income taxes as disclosed in the
      Company’s quarterly reports or annual report in accordance with S.E.C.
      Regulation G on non-GAAP financial information, and/or any accounting
      principle change required or allowed by GAAP that is not retrospectively
      applied to prior years. (If the accounting change is retroactively applied
      to the prior year, there is no adjustment for the accounting
      change.);

            

    

    

    
      	
               
      

            	
              (b)

            	
              increased by
      the amount of bonus expense, whether or not under the Program, which is
      reflected in the Company's consolidated income before income
      taxes;

            

    

    

    
      	
               
      

            	
              (c)

            	
              increased for
      the impact on income before income taxes of interest expense attributable
      to the Company's ownership in Grupo Modelo, S.A.B. de C.V. and
      Tsingtao Brewery Company, Ltd.;

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
      	
               
      

            	
              (d)

            	
              increased for
      the impact on income before income taxes of interest expense attributable
      to the Company’s equity ownership in any additional company acquired in
      2008 and accounted for under the equity method of accounting under
      GAAP;

            

    

     

    
      	
               
      

            	
              (e)

            	
              increased for
      the impact on income before income taxes of interest expense attributable
      to the Company’s repurchase of Company stock;
  and

            

    

     

    
      	
               
      

            	
              (f)

            	
              
                increased or
      decreased for the impact on income before income taxes of any
      acquisition made by the Company during 2008 and increased for the impact
      of interest expense attributable to such
  acquisition.

              

            

    

    

    Section 4. BONUS POOL.  If the
Performance Goal is achieved, the maximum amount of Bonuses which may be paid to
Participants in the Program shall equal 1.5% of Adjusted Pretax Earnings for
2008 (the "Bonus Pool").

    

    Section 5. BONUS
FORMULA.  Subject to the attainment of the Performance Goal,
and the provisions of this Program, the maximum amount of the Bonus that each
Designated Covered Employee shall be eligible to receive under the Program and
the amount of the Bonus that the remaining Participants shall be eligible to
receive under the Program shall be the amount (the “Eligible Amount”)
corresponding to the percentage of the Bonus Pool set forth in Schedule A
attached hereto.  The actual amount of Bonuses to which Participants
are entitled (the "Bonus Formula") shall be determined as
follows:   (i) a portion shall be based on a formula (the “Bonus
Formula Component”) reflecting actual operating profit for 2008 relative to
budgeted operating profit for 2008, as set forth on Schedule B attached hereto,
and (ii) the remaining portion shall be based upon such measures, if any, that
the Committee in its discretion shall employ; provided, however, that, in no event
shall the aggregate Bonuses granted to a Designated Covered Employee exceed such
Designated Covered Employee’s Eligible Amount.  Individual bonus
targets will be established for each Participant prior to the commencement of
the Performance Period.

    

    Section 6. COMMITTEE
DISCRETION.  Subject to Section 5, the Committee shall have the
discretion to establish the amount of any Bonus payable to any Participant other
than a Designated Covered Employee, except that the total amount of Bonuses paid
under the Program may not exceed the Bonus Pool established in Section
4.

    

    Section 7. DESIGNATED COVERED 
EMPLOYEE  MAXIMUM. Notwithstanding satisfaction of the Performance
Goal, no Designated Covered Employee may receive aggregate Bonuses under the
Program which exceeds $6 million.

    

    Section 8. PAYMENT OF
BONUSES.  After the end of 2008, the Committee shall certify in
writing whether the Performance Goal has been satisfied and the amount of the
Bonus payable to each Designated Covered Employee for 2008, if
any.  All or part of the Bonuses payable to Participants who are not
Designated Covered Employees may be paid prior to the end of 2008 on an
estimated basis, subject to adjustment in the discretion of the
Committee.  All or part of the Bonuses payable to Designated Covered
Employees may be paid prior to the end of 2008 only if such payment will not
result in

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

    Bonuses paid to
Covered Employees failing to constitute qualified performance-based compensation
under Section 162(m) of the Code (e.g., if regulations or rulings
allow earlier payment on an estimated basis subject to
adjustment).  Subject to the foregoing, the timing of payment of
Bonuses to all Participants shall be within the sole discretion of the
Committee; provided, however, that all payments of the Bonuses hereunder shall
be made on or before March 15, 2009.  The Company shall withhold from
any Bonuses all taxes required to be withheld by any federal, state or local
government.

    

    Section 9. LIMITATION ON
RESTRICTIONS.  Notwithstanding anything to the contrary herein,
in the event a Designated Covered Employee is determined at the end of the
Performance Period not to be a Covered Employee, and to the extent application
of this Section 9 does not cause such Designated Covered Employee to be a
Covered Employee, then:

    

    
      	
               
      

            	
              (a)

            	
              such
      Designated Covered Employee may receive a Bonus notwithstanding failure to
      satisfy the Performance Goal, and

            

    

    

    
      	
               
      

            	
              (b)

            	
              Committee
      Discretion may be exercised to increase the amount of such Designated
      Covered Employee's Bonus above the amount which would be paid pursuant to
      the Bonus Formula.

            

    

    

    Section 10. TERMINATION OF
EMPLOYMENT/COMMENCEMENT OF PARTICIPATION.  No Bonus shall be
paid under the Program to any Participant who is not an employee of the Company
as of the last day of 2008, except that the Committee shall have the discretion
to pay a Bonus to any Participant whose employment terminates by reason of
death, disability, retirement, resignation or in other circumstances in which
payment of a Bonus would, as determined by the Committee, be in furtherance of
the best interests of the Company.  Officers who are designated as
Participants after the adoption of the Program, may receive a Bonus based upon
the entire Performance Period.  Participants that are demoted or
transferred out of the Program will not be eligible to receive a Bonus pursuant
to the Program.

    

    Section 11. CHANGE IN
CONTROL.  Upon a Change in Control notwithstanding anything
else to the contrary herein:

    

    
      	
               
      

            	
              (a)

            	
              if the Change
      in Control takes place after December 31, 2008, all Bonuses  for
      all Participants for 2008 shall be immediately payable in cash (subject to
      any election previously made by a Participant to defer receipt of such
      Bonus),

            

    

    

    
      	
               
      

            	
              (b)

            	
              if the Change
      in Control takes place during 2008, (i) the Performance Goal shall be
      deemed to have been met if Adjusted Pretax Earnings through the end of the
      month preceding the month in which the Change in Control occurs
      ("Prechange Adjusted Pretax Earnings") equals or exceeds 75% of Adjusted
      Pretax Earnings for the comparable period in 2007, (ii) the Change in
      Control Bonus Formula (as defined below) shall be applied to Prechange
      Adjusted Pretax Earnings, (iii) all Bonuses so calculated shall be
      immediately payable in cash to each Participant upon the date of
      the

            

    

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              Change of
      Control (subject to any election previously made by a Participant to defer
      receipt of such Bonus), and (iv) unless expressly terminated, this Program
      shall continue in effect throughout the remainder of 2008 with the amount
      of any Bonuses payable at the end of 2008 reduced by the amount of any
      Bonuses paid upon the Change in
Control,

            

    

    

    
      	
               
      

            	
              (c)

            	
              the Committee
      shall not have the ability to exercise Committee Discretion to reduce the
      amount payable to any Participant below the formula amount,
      and

            

    

    

    
      	
               
      

            	
              (d)

            	
              the
      provisions of this Section 11 may not be amended in any manner with
      respect to any Participant without the written consent of such
      Participant.

            

    

    

    For purposes of
determining the amounts of Bonuses payable to Participants under Sections 11 (a)
and (b) above, (i) each Participant who was a participant in the 2007 Officer
Bonus Program under the Anheuser-Busch Officer Bonus Plan shall be entitled to
receive a share of the Bonus Pool which is equivalent to that Participant's
share of all bonuses actually paid under the 2007 Program, (ii) each Participant
who did not participate in the 2007 Program shall be entitled to receive a share
of the Bonus Pool which is equivalent to the share of all bonuses actually paid
under the 2007 Program paid to the individual (or the average paid to
individuals) in the most closely comparable position to that of such Participant
(based on salary level), (iii) the shares so computed shall be adjusted on a pro
rata basis so that the amount of Bonuses payable under this Section 11 shall
equal 100% of the applicable Bonus Pool (the "Change in Control Bonus
Formula").  If any Participant is employed by the Company for less
than the entire period with respect to which Bonuses under this Section 11 are
calculated, such Participant shall only be entitled to receive a Bonus in an
amount calculated as set forth above times the number of days such Participant
was employed by the Company in such period divided by the total number of days
in such period.  If by reason of this Section 11 an
excise   tax ("Excise Tax") is imposed pursuant to Section 4999
of the Code on any payment under the Plan (a "Required Payment"), the amount of
each Required Payment shall be increased by an amount which, after payment of
income taxes, payroll taxes and Excise Tax thereon, will equal such Excise Tax
on the Required Payment, except that the total amount paid to any Designated
Covered Employee shall not exceed the maximum set forth in Section 7 unless
exceeding such maximum, or a provision allowing bonuses to exceed such maximum,
would not jeopardize qualification of all Bonuses under the Program to Covered
Employees as qualified performance-based compensation under Section 162(m) of
the Code.

    

    Section 12. INTERPRETATION.  It
is intended that the Program shall in all respects be subject to and governed by
the provisions of the Plan and, except to the extent Bonuses are paid on an
accelerated basis pursuant to a Change in Control as defined in the Plan, that
all Bonuses paid to Covered Employees shall constitute qualified
performance-based compensation under Section 162(m) of the Code.  The
terms of this Program shall in all respects be so interpreted and construed as
to be consistent with this intention.  If any provision of the Program
conflicts in any manner with the Plan, the terms of the Plan shall
control.  Terms used herein shall have the meanings assigned to them
in the Plan, unless otherwise indicated.

    

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    

    

    Section 13. ADJUSTMENTS.  If any
of the following events occurs during the Performance Period:

    

    
      	
               
      

            	
              (a)

            	
              any
      reorganization, merger, consolidation or other corporate change having a
      similar effect, to the extent it is tax-free for federal income tax
      purposes,

            

    

    

    
      	
               
      

            	
              (b)

            	
              any spin-off,
      sale of a business unit, or other corporate change having a similar
      effect,

            

    

    

    
      	
               
      

            	
              (c)

            	
              any
      contribution of operating assets previously accounted for by the
      consolidation method of accounting to an entity that is accounted for by
      the equity or cost methods of accounting,
or

            

    

    

    
      	
               
      

            	
              (d)

            	
              any
      distribution to stockholders generally other than a normal
      dividend

            

    

    

    and such event
affects consolidated income before income taxes and has an impact on the
achievement of the Performance Goal or a material impact on the size of the
Bonus Pool (herein "Corporate Change"):

    

    
      	
               
      

            	
              (x)

            	
              for purposes
      of determining whether the Performance Goal has been met, 2007 Adjusted
      Pretax Earnings shall be deemed to equal (i) actual Adjusted Pretax
      Earnings for 2007 times a ratio the numerator of which is the number of
      days in the Performance Period prior to the Corporate Change and the
      denominator of which is 365, plus (ii) restated or pro-forma Adjusted
      Pretax Earnings for 2007 (calculated on the assumption that the Corporate
      Change occurred on January 1, 2007)  times a ratio, the
      numerator of which is the number of days in the Performance Period
      beginning with the date of the Corporate Change and the denominator of
      which is 365;

            

    

    

    
      	
               
      

            	
              (y)

            	
              the size of
      the Bonus Pool shall be equal to (i) actual Adjusted Pretax
      Earnings  for the portion of the Performance Period ending the
      day before the Corporate Change occurs times 1.0%, plus (ii) actual
      Adjusted Pretax Earnings for the portion of the Performance Period
      beginning the day of the Corporate Change times a fraction, the numerator
      of which is actual Adjusted Pretax Earnings for 2007 and the denominator
      of which is restated or pro-forma Adjusted Pretax Earnings for 2007
      calculated on the assumption that the Corporate Change occurred on January
      1, 2007, times 1%.

            

    

    

    Section 14. AMENDMENTS.  The
Committee may amend this Program unilaterally if the Committee determines that
amendment is necessary to assure that Bonuses paid to Covered Employees under
this Program constitute qualified performance-based compensation under Section
162(m) of the Code.  The Committee also may amend this Program
unilaterally in any way if the Committee determines that such amendment (i) is
not contrary to the terms of the Plan, (ii) does not require shareholder
approval, and (iii) would not jeopardize qualification of Bonuses to
Covered

    

    
      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

    

    Employees under the
Program as performance-based compensation under Section 162(m) of the
Code.

    

    Section 15. NO RIGHT TO
EMPLOYMENT.  Nothing in this Program or the Plan shall confer
upon any Participant any right or expectation to continue in the employ of his
or her employer or the Company, or to interfere in any manner with the absolute
right of the employer or the Company to change or terminate the Participant's
employment at any time for any reason.

    

    
      
        
           

        

        
          6ex10p21.htm

    
      

    

     

    
                Exhibit 10.21

      

      

      SUMMARY
OF COMPENSATION OF EXECUTIVE OFFICERS

      

      

      Anheuser-Busch
Companies, Inc. (the “Company”) does not have employment agreements with any of
its executive officers.  The following is a description of executive
officer compensation.

      

      On November 28, 2007, the Compensation
Committee (the “Committee”) of the Board of Directors of the Company approved
the annual base salaries effective January 1, 2008, of the Company’s executive
officers after review of performance and competitive market data.  The
following table sets forth the 2008 base salary of the Company’s Named Executive
Officers (which officers were determined by reference to the Proxy Statement for
the Company’s 2008 Annual Meeting of Stockholders, dated March 10,
2008).

      

      
        	 	
                 

                Name
      and Position

                 

              	 	
                2008
      Annual

                Base
      Salary

                
                

              	 
	 	
                August A.
      Busch IV

                President and
      Chief Executive Officer

              	 	$	1,380,000	 
	 	 
    	 	 	 	 
	 	
                W. Randolph
      Baker

                Vice
      President and Chief Financial Officer

              	 	$	678,038	 
	 	 
    	 	 	 	 
	 	
                Mark T. Bobak
      (1)

                Group Vice
      President and Chief Legal Officer

              	 	
                $         
       NA

              	 
	 	 
    	 	 	 	 
	 	
                Douglas J.
      Muhleman

                Group Vice
      President, Brewing, Operations and Technology

                Anheuser-Busch,
      Incorporated

              	 	$	633,663	 
	 	 
    	 	 	 	 
	 	
                Michael J.
      Owens

                Vice
      President – Business Operations

                Anheuser-Busch,
      Incorporated

              	 	$	553,500	 

      

      

      

      (1) Mark Bobak
resigned from the Company effective December 31, 2007.

      

      Information regarding 2007 bonus payments is
contained in the Company’s Form 8-K filed with the Securities and Exchange
Commission on February 1, 2008.  Information regarding 2008 bonuses is
contained in Exhibit 10.20 to this Form 10-K  for the fiscal year
ended December 31, 2007, filed with the Securities and Exchange Commission on
February 29, 2008.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Also on November 28, 2007, the Committee
approved grants of ten year incentive and non-qualified stock option awards to
approximately 3,000 officers and management employees of the Company and its
subsidiaries and affiliates eligible to receive such awards under the Company’s
2007 Equity and Incentive Plan including the Named Executive Officers for
2007.  The 2007 Equity and Incentive Plan is attached as Appendix B to
the Proxy Statement for the Company’s 2007 Annual Meeting of Stockholders, dated
March 12, 2007.

      

      Information
concerning the stock option awards to the Company’s Named Executive Officers is
contained in Form 8-K dated November 27, 2007, and filed by the Company with the
Securities & Exchange Commission on November 30, 2007.

      

      The Company will provide additional information
regarding compensation awarded to Named Executive Officers in respect of and
during the year ended December 31, 2007, in the Proxy Statement for the
Company’s 2008 Annual Meeting of Stockholders expected to be dated March 10,
2008, which is expected to be filed with the Securities and Exchange Commission
on March 10, 2008.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]