Document:

ex10_1.htm

Exhibit 10.1

 

 

 

SNYDER’S-LANCE, INC.

 

2011 Annual Performance Incentive Plan for Officers

 

 

	
Purposes and 

Introduction

	

The 2011 Annual Performance Incentive Plan provides for Performance Awards under the Snyder’s-Lance, Inc. 2007 Key Employee Incentive Plan (the “Incentive Plan”).  Except as otherwise expressly defined herein, capitalized terms shall be as defined in the Incentive Plan.

 

	  	

The primary purposes of the 2011 Annual Performance Incentive Plan for Officers (the “2011 Plan”) are to:

 

	  	
•

	

Motivate behaviors that lead to the successful achievement of specific sales, financial and operations goals that support Snyder’s-Lance, Inc. stated business strategy and to align participants’ interests with those of stockholders.

	  	  	  
	  	
•

	

Emphasize link between participants’ performance and rewards for meeting predetermined, specific goals.

	  	  	  
	  	
•

	

Focus participant’s attention on operational effectiveness from both an earnings and an investment perspective.

	  	  	  
	  	
•

	

Promote the performance orientation at Snyder’s-Lance, Inc. and communicate to employees that greater responsibility carries greater rewards.

	  	  	  
	  	

For 2011, participants will be eligible to earn incentive awards based on the performance measures listed on Exhibit A hereto and defined as follows:

 

	  	
1

	
Net Revenue is defined as sales and other operating revenue, net of returns, allowances, discounts and other sales deduction items for the 2011 fiscal year, as audited and reported in the Company’s Form 10-K for the 2011 fiscal year.

	  	  	  
	  	
2

	

Corporate Earnings Per Share (“EPS”) is defined as the fully diluted earnings per share, excluding special items, of the Company for the 2011 fiscal year, as audited and reported in the Company’s Form 10-K for the 2011 fiscal year.

 

  

  

  

 

	 	
3

	

Free Cash Flow is defined as the net cash flow from operating activities less capital expenditures, excluding special items, for the 2011 fiscal year as audited and reported in the Company’s Form 10-K for the 2011 fiscal year, excluding special items.

  

	 	

Certain executive officers have an additional performance condition based on pre-tax operating profit for 2011, as described further below. To achieve the maximum motivational impact, plan goals and the awards that will be received for meeting those goals will be communicated to participants as soon as practical after the 2011 Plan and the performance measures are approved by the Compensation Committee of the Board of Directors.

  

	 	

Each participant will be assigned a Target Incentive, stated as a percent of base salary. The Target Incentive Award, or a greater or lesser amount, will be earned at the end of the Plan Year based on the attainment of predetermined goals.

  

	 	

Base salary shall be the annual rate of base compensation for the Plan Year which is set no later than April of such Plan Year; provided that for any award intended to satisfy the Performance-Based Exception, base salary shall be the annual rate of base compensation for the Plan Year which is set no later than March 31 of such Plan Year.

  

	 	
Not later than 75 days after fiscal year-end, 100% of the awards earned will be payable to participants in cash.

 

	Plan Year	

The period over which performance will be measured is the Company’s 2011 fiscal year (the “Plan Year”).

 

	
Eligibility and 

Participation

	

Eligibility in the Plan is limited to Officers of Snyder’s-Lance, Inc. who are key to Snyder’s-Lance, Inc. success. The Compensation Committee of the Board of Directors will review and approve participants nominated by the Chief Executive Officer.  Participation in one year does not guarantee participation in a following year, but instead will be reevaluated and determined on an annual basis.

 

	 	

Participants in the Plan may not participate in any other annual incentive plan (e.g., sales incentives, etc.) offered by Snyder’s-Lance, Inc. or its affiliates.  Exhibit B includes the list of 2011 participants approved by the Compensation Committee at its February 7, 2011 meeting.

 

  

2

  

 

	
Target Incentives 

Awards

	

Each participant will be assigned a Target Incentive expressed as a percentage of his or her base salary.  Participants may be assigned Target Incentives by position, by salary level or based on other factors as determined by the Compensation Committee.

	 	 
	  	

Target Incentives will be reevaluated at least every other year, if not annually.  If the job responsibility of a position changes during the year, or base salary is increased significantly, the Target Incentive shall be revised as appropriate.

	  	  	  
	  	

Exhibit B lists the Target Incentive for each participant for the Plan Year.  Target Incentives will be communicated to each participant as close to the beginning of the year as practicable, in writing.  Final awards will be calculated by multiplying each participant’s Target Incentive by the appropriate percentage (based on performance for the year, as described below).

 

	
Performance Measures 

and Award Funding

	The 2011 performance measures are on Exhibit A attached hereto.

 

	  	  	
Threshold

	
Target

	
Maximum

 

	 	Award Level Funded	
0%

	
100%

	
200%

 

	  	

Percent of payout will be determined on a straight line basis from Threshold to Target and from Target to Maximum.  There will be no payout unless the Threshold for the applicable performance measure is reached.

 

	  	

The payout for the Net Revenue performance measure shall not exceed Target if the EPS performance measure does not equal or exceed its Threshold.

 

	  	

The performance measures will be communicated to each participant as soon as practicable after they have been established.  Final Target Incentive Awards will be calculated after the Compensation Committee has reviewed the Company’s audited financial statements for 2011 and determined the performance level achieved.

 

	  	

Threshold, Target and Maximum levels will be defined at the beginning of each Plan Year for each performance measure.

 

	  	

The following definitions for the terms Maximum, Target and Threshold should help set the goals for each year, as well as evaluate the payouts:

 

  

3

  

 

	  	
•

	

Maximum:  Excellent; deserves an above-market incentive

 

	  	
•

	

Target:  Normal or expected performance; deserves market-level incentive

 

	  	
•

	

Threshold: Lowest level of performance deserving payment above base salary; deserves below-market incentive

 

	
Individual 

Performance

 

	

Each participant will receive 40% of his or her Target Incentive Award based on Net Revenue, 40% of his or her Target Incentive Award based on EPS, excluding special items, and 20% of his or her Target Incentive Award based on Free Cash Flow, excluding special items.  Notwithstanding the foregoing, for each of Messrs. Warehime, Singer and Lee, the award to each such participant for 2011 shall be equal to      %,      % and      %, respectively, of pre-tax operating profit for 2011, excluding special items, subject to such discretionary reductions as may be made by the Compensation Committee.  In considering such reductions, the Committee may take into account the results based on the performance measures set forth on Exhibit A.  For this purpose, “pre-tax operating profit” means the Company’s Net Revenue less total cost of goods and operating expenses.

	  	  	  
	
Form and Timing of 

Payments

	

Final award payments will be made in cash as soon as practicable after award amounts are approved by the Compensation Committee of the Board of Directors, but not more than 75 days after the end of the Company’s 2011 fiscal year.  All awards will be rounded to the nearest $100.

 

	
Change in Status

	
An employee hired into an eligible position during the Plan Year may participate in the Plan for the balance of the Plan Year on a pro rata basis.

	  	  	  
	
Certain Terminations 

of Employment

 

	

In the event a participant voluntarily terminates employment (other than Retirement) or is terminated involuntarily during the Plan Year, any Award will be forfeited.  In the event of death, Disability or Retirement during the Plan Year, the Award will be paid on a pro rata basis based on the actual performance determined after the end of the Plan Year.  In the event of any termination of employment after the end of the Plan Year (including death, Disability, Retirement, voluntary termination or involuntary termination for any reason), any Award will be determined based on actual performance and paid at the same time as Awards are paid to all other participants.

 

  

4

  

 

	  	

“Retirement” is defined under the Incentive Plan to mean the participant’s termination of employment with the Company either (i) after attainment of age 65 or (ii) after attainment of age 55 with the prior consent of the Compensation Committee.

	  	  	  
	Change In Control 

 

	

In the event of a Change in Control (which will occur only in the event of the closing of the relevant transaction), pro rata payouts will be made at target for the year-to-date, based on the number of days in the Plan Year preceding the closing of the Change in Control transaction.  Payouts will be made within 30 days after the relevant transaction has been completed.

	  	  	  
	Withholding	

The Company shall withhold from award payments any Federal, foreign, state or local income or other taxes required to be withheld.

 

	Communications	
Progress reports should be made to participants quarterly showing the year-to-date performance results and the percentage of Target Incentives that would be earned if results remain at that level for the entire year.

	  	  	  
	Executive Officers	

Notwithstanding any provisions to the contrary above, participation, Target Incentive Awards and pro-rations for executive officers, including the Chief Executive Officer, shall be approved by the Compensation Committee.

	  	  	  
	Stockholder Approval	

The 2011 Plan and the awards hereunder are made pursuant to the Incentive Plan, which was approved by the Company’s stockholders at the Annual Meeting of Stockholders held on April 26, 2007.

 

  

5

  

 

	  	  	  
	Governance	
The Compensation Committee of the Board of Directors of Snyder’s-Lance, Inc. is ultimately responsible for the administration and governance of the Plan.  Actions requiring Committee approval include final determination of plan eligibility and participation, identification of performance measures, performance objectives and final award determination.  The Committee may adjust any award due to extraordinary events such as acquisitions, dispositions, discontinued operations, required accounting adjustments or similar events, all as specified in Section 11(d) of the Incentive Plan; provided, however, that the Committee shall at all times be required to exercise this discretionary power in a manner, and subject to such limitations, as will permit all payments under the Plan to “covered employees,” as defined in Section 162(m) of the Internal Revenue Code, to continue to qualify as “performance-based compensation” for purposes of Section 162(m) of the Code.  In addition, under the Incentive Plan, the Committee retains the discretion to reduce any award amount from the amount otherwise determined under the applicable formula.  Subject to the foregoing, the decisions of the Committee shall be conclusive and binding on all participants.

 

  

6

  

 

Exhibit A

 

Performance Measures

 

 

  

7

  

 

Exhibit B

 

2011 Annual Performance Incentive Plan for Officers

 

	
 

	 	
Award

	
Target

	
Name

	Title	
Percentage

	
Incentive

 

8ex10_2.htm

Exhibit 10.2

 

SNYDER’S-LANCE, INC.

 

2011 Three-Year Performance Incentive Plan for Officers and Key Managers

 

 

	
Purposes and 

Introduction

 

	
The 2011 Three-Year Performance Incentive Plan for Officers and Key Managers provides for Stock Options, Restricted Stock and Performance Awards under the Snyder’s-Lance, Inc. 2007 Key Employee Incentive Plan (the “Incentive Plan”).  Except as otherwise expressly defined herein, capitalized terms shall be as defined in the Incentive Plan.

 

	  	
The primary purposes of the 2011 Three-Year Performance Incentive Plan for Officers and Key Managers (the “2011 Plan”) are to:

	 	 
	  	
•

	

Align officers’ and managers’ interests with those of stockholders by linking a substantial portion of compensation to the price of the Company’s Common Stock and to the Company’s financial performance based on the performance measures specified below.

	  	  	  
	  	
•

	

Provide a way to attract and retain key executives and managers who are critical to Snyder’s-Lance, Inc. future success.

	  	  	  
	  	
•

	

Provide competitive total compensation for executives and managers commensurate with Company performance.

 

	  	

To achieve the maximum motivational impact, the Plan and the awards opportunities will be communicated to participants as soon as practical after the 2011 Plan is approved by the Compensation Committee of the Board of Directors.

 

	  	

Each officer will be assigned a Target Incentive based on market and peer group data and each other participant will be assigned a Target Incentive, stated as a percent of base salary.  The Chief Executive Officer is assigned a Target Incentive based on his Employment Agreement.  Concurrently with the approval of the 2011 Plan, 25% of the Target Incentive will be awarded in the form of Nonqualified Stock Options and 25% will be awarded in the form of Restricted Stock.  The final 50% of the Target Incentive will be in the form of a Performance Award payable in cash after the completion of the  2012 and 2013  fiscal years (the “Performance Period”), based on the attainment of predetermined goals.

 

 

1

 

 

	  	

For the 2011 Plan, participants will be eligible to earn the Performance Award based on the matrix on Exhibit A-1 hereto which incorporates the financial performance measures on Exhibit A-2 hereto, excluding special items and adjusted for any acquisition or divestiture related activity, and relative total shareholder return of the peer companies listed on Exhibit A-3 hereto.  The financial performance measures and relative total shareholder return are defined as follows:

 

	  	1. 	

Net Revenue (“Net Revenue”) is defined as the cumulative total of the  revenue and other operating revenue, net of returns, allowances, discounts and other sales deduction items for the 2012 and 2013  fiscal years, as audited and reported in the Company’s Forms 10-K for the 2012 and 2013  fiscal years.

 

	  	2.	

Corporate Earnings Per Share (“EPS”) is defined as the cumulative total of the fully diluted earnings per share of the Company for the 2012 and 2013  fiscal years, excluding special items, as audited and reported in the Company’s Forms 10-K for the 2012 and 2013  fiscal years.

 

	  	3. 	

Return on Invested Capital (“ROIC”) is defined as the average of the ROIC for the 2012 and 2013 fiscal years, excluding special items as audited and reported in the Company’s Forms 10-K for the 2012 and 2013  fiscal years, calculated as follows:

 

	  	  	
Operating Income  x (1 - Tax Rate)

	  	  	
Average Equity + Average Net Debt

 

	  	
Operating Income shall be the Company’s actual earnings before interest and taxes, excluding special items, and excluding other income and expense.

 

	  	

Tax Rate for ROIC shall be the Company’s actual total effective income tax rate for each year.

 

	  	

Average Net Debt shall be the Company’s average debt less average cash for each year.

 

	  	4. 	

Relative Total Shareholder Return (“RTSR”) is defined as the total shareholder return for Snyder’s-Lance, Inc. relative to a peer group of 24 companies.  Each peer company, including Snyder’s-Lance, Inc. will be compared to each other and put into four quadrants ranked from highest total shareholder return to lowest, with the highest in Quadrant One and the lowest in Quadrant Four.

 

 

2

 

 

	  	

Total Shareholder Return is defined as the return of $100 invested in each stock at the beginning of the Performance Period compared to the value of that $100, with dividends reinvested, at the end of the measurement period.  The starting number of shares purchased for each peer company, including Snyder’s-Lance, Inc., with $100 will be based on the average weekly stock price for the preceding year 2010 as set forth on Exhibit A-3 hereto.  The number of shares for each peer company will be adjusted for stock dividends, stock splits and other similar reorganizations and for special cash dividends.  The value of Snyder’s-Lance, Inc. stock has been adjusted for the special cash dividend paid on December 10, 2010.

 

	  	

If any peer company ceases to be publicly traded during the Performance Period, the Russell 2000 Index will be inserted in its place; if a second peer company ceases to be publicly traded, the S&P 500 Index will be inserted in its place; if a third peer company ceases to be publicly traded, the S&P Food & Beverage Select Industry Index will be substituted in its place and if a fourth peer company ceases to be publicly traded, the Russell 1000 Index will be inserted in its place.

 

	  	

Certain executive officers have an additional performance condition based on total pre-tax operating profit, excluding special items, for 2012 and 2013, as described further below.

 

	  	

Base salary shall be the annual rate of base compensation for the 2011 fiscal year which is in effect on February 21, 2011; provided that for any award intended to satisfy the Performance-Based Exception, base salary shall be the annual rate of base compensation for the fiscal year which is set no later than March 31 of such fiscal year.

 

	  	
Notwithstanding the foregoing, for each of Messrs. Singer and Lee, the award to each such participant for the Performance Period shall be equal to         % and        %, respectively, of the cumulative pre-tax operating profit, excluding special items, for 2012 and 2013, subject to such discretionary reductions as may be made by the Compensation Committee.  In considering such reductions, the Committee may take into account the results based on the matrix and performance measures set forth on Exhibits A-1 and A-2 hereto.  For this purpose, “pre-tax operating profit” means the Company’s Net Revenue less total cost of goods and operating expenses for the 2012 and 2013 fiscal years.

 

 

3

 

 

	
Eligibility and 

Participation

 

	

Eligibility in the Plan is limited to Executive Officers and Key Managers who are key to Snyder’s-Lance, Inc. success as reviewed and approved on an annual basis. The Compensation Committee will review and approve participants nominated by the Chief Executive Officer.  An employee hired or promoted into an eligible position during the Performance Period will not participate in the 2011 Plan.  Participation in the 2011 Plan does not guarantee participation in any subsequent long-term incentive plans but will be reevaluated and determined on an annual basis.

 

	  	

Exhibits A-4 and A-5 hereto include the list of 2011 Plan participants approved by the Compensation Committee on February 21, 2011.

	  	  	  
	
Target Incentives and 

Performance Measures

	

Each participant will be assigned a Target Incentive as specified above.  Participants, other than officers, will be assigned to a Performance Tier by Salary Grade.

 

 

	  	  	
Performance Tier

	
Performance Tier Description

	  	  	
1

	
Officer

	  	  	
2

	
Non-Officer Vice President

	  	  	
3

	
Key Managers

 

	  	

For the Performance Awards, the 2012-2013 financial performance measures are on Exhibit A-2 hereto.  Percent of payout will be determined according to the matrix on Exhibit A-1 hereto which encompasses RTSR and the financial performance measures.

 

	  	

The performance measures will be communicated to each participant as soon as practicable after they have been established.  Final Performance Awards will be calculated after the Compensation Committee has reviewed the Company’s audited financial statements for 2012 and 2013 and determined the performance level achieved.

 

	  	
Exhibits A-4 and A-5 hereto list the Target Incentives for each participant for the 2011 Plan as determined by the Compensation Committee.  Target Incentives will be communicated to each participant as close to the beginning of the year as practicable, in writing.  Target Incentives, except for Officers, will be calculated by multiplying each participant’s base salary by the appropriate Performance Tiers and percentages, as described below.

 

 

4

 

 

	  	  	
Performance Tier

	
 
Percentage of Base Salary

for 2011 Target Incentives

	  	  	  	  
	  	  	
2

	
35 - 40%

	  	  	
3

	
15 - 30%

 

	
Awards

 

	

Final Performance Awards will be interpolated and calculated, paid and granted after the Compensation Committee has reviewed the Company’s audited financial statements for 2012 and 2013 and determined the performance levels achieved.  Interpolation will be required relative to the financial performance measures but the relative shareholder return quadrant will determine the percentage to be applied.  As further specified on Exhibits B-1 and B-2 hereto, the Awards under the 2011 Plan shall be as follows:

	  	 	
 

	  	

1.  Stock Options.  Each participant shall receive Stock Options equal to 25% in value of his or her Target Incentive.  The number of Stock Options awarded to each participant will equal the dollar value of the participant’s Stock Option Incentive divided by the Black-Scholes value of the Stock Options, with the result rounded up to the nearest multiple of three shares.

 

	  	

The grant date for Stock Options will be the date specified by the Compensation Committee upon approval of the awards and the exercise price will be the Fair Market Value of the Common Stock, which is the closing price of the Common Stock, on the grant date.  Each Stock Option will vest in three substantially equal annual installments beginning one year after the date of grant and the term of each Stock Option will be ten years.

 

	  	

2.  Restricted Stock.  Each participant shall receive Restricted Stock equal to 25% in value of his or her Target Incentive.  The number of shares of Restricted Stock awarded to each participant will equal the dollar value of the participant’s Restricted Stock Incentive divided by the closing price of the Common Stock on the award date, with the results rounded up to the nearest multiple of three shares.

	  	 
	 	The award date for Restricted Stock will be the date specified by the Compensation Committee upon approval of the awards and the value shall be the Fair Market Value of the Common Stock on the award date.  Each award of Restricted Stock will vest in three substantially equal annual installments beginning one year after the award date.

 

 

5

 

 

	  	

3.  Performance Awards.  Each participant shall receive a Performance Award equal to 50% in value of his or her Target Incentive.

 

	  	

For purposes of the 2011 Plan, the award date for cash as a Performance Award will be the date established by the Compensation Committee after completion of the Performance Period and the applicable performance level has been determined.

 

	
Form and Timing of 

Awards

	

Awards will be made as soon as practicable after the performance level has been determined and approved by the Compensation Committee.  All awards will be rounded to the nearest $100.

	  	 	  
	
Change in Status

 

	

An employee hired or promoted into an eligible position during the Performance Period will not participate in the 2011 Plan.

 

	
Certain Terminations 

of Employment

	Performance Awards
	 	 
	  	

In the event a participant voluntarily terminates employment (other than by Retirement) or is terminated involuntarily during or after the end of the Performance Period but before the applicable award date, the participant shall not receive any Performance Award hereunder.

 

	  	

In the event of a participant’s death or Disability before the end of the Performance Period, any Performance Award will be determined on and prorated to the date of such event based on target performance and paid out all in cash as soon as administratively practicable (but in no event more than 75 days) after the date of such event.  In the event of a participant’s death or Disability on or after the end of the Performance Period but before the applicable award date, any Performance Award will be determined based on actual performance and paid out all in cash on or about the applicable award date.

 

	  	

If the event of a participant’s Retirement during or after the end of the Performance Period but before the applicable award date, any Performance Award will be determined based on actual performance and paid out all in cash on or about the applicable award date.

 

 

6

 

 

	  	
Stock Options

 

	  	

In the event a participant voluntarily terminates employment (other than by Retirement) or is terminated involuntarily or in the event of death, Disability or Retirement, vesting and the post-termination exercise period for Stock Options will be as follows:

 

	  	
Voluntary termination (other than Retirement):  Vested Stock Options will remain exercisable for a period of 90 days following the date of termination (or, if earlier, the original expiration date of the option); unvested Stock Options will be forfeited as of the date of termination.

 

	  	
Involuntary termination:  Vested Stock Options will remain exercisable for a period of 30 days following the date of termination (or, if earlier, the original expiration date of the option); unvested Stock Options will be forfeited as of the date of termination.

 

	  	
Death:  Stock Options will remain exercisable for a period of one year following the date of death (or, if earlier, the original expiration date of the option); unvested Stock Options will become fully vested as of the date of termination. 

 

	  	
Disability:  Vested Stock Options will remain exercisable through the original expiration date of the option; unvested Stock Options will become fully vested as of the date of termination. 

 

	  	
Retirement: Vested Stock Options will remain exercisable for a period of three years following retirement (or, if earlier, the original expiration date of the option); unvested Stock Options will continue to vest for a period of six months after Retirement and any remaining unvested Stock Options will be forfeited as of such date. 

 

	  	
Restricted Shares

 

	  	

In the event a participant voluntarily terminates employment (other than by Retirement) or is terminated involuntarily or in the event of death, Disability or Retirement, vesting for Restricted Stock (including any Restricted Stock granted in connection with a Performance Award following completion of the Performance Period) will be as follows:

 

	  	
Voluntary termination (other than Retirement):  Unvested Restricted Stock will be forfeited as of the date of termination. 

 

	  	
Involuntary termination:  Unvested Restricted Stock will be forfeited as of the date of termination.

 

 

7

 

 

	  	
Death:  Unvested Restricted Stock will become fully vested on the date of such event.

 

	  	
Disability:  Unvested Restricted Stock will become fully vested on the date of such event. 

 

	  	Retirement:  Unvested Restricted Stock will become vested pro rata based on the number of full months elapsed on the date of such event since the award date and any remaining unvested Restricted Stock will be forfeited as of such date. 
	  	 	  
	  	

“Retirement” is defined under the Incentive Plan to mean the participant’s termination of employment with the Company either (i) after attainment of age 65 or (ii) after attainment of age 55 with the prior consent of the Compensation Committee.

	  	 	  
	
Change in Control and 

Withholding

 

	

In the event of a Change in Control (which will occur only upon the closing of the relevant transaction), (i) unvested Stock Options and unvested Restricted Stock will vest as provided in the Incentive Plan upon the closing of the Change in Control transaction and (ii) for outstanding Performance Awards pro rata payouts will be made all in cash at target through the closing date with such proration based on the number of days in the Performance Period preceding the closing of the Change in Control transaction.  Payouts will be made within 30 days after the relevant transaction has been closed.  The Company shall withhold from awards any Federal, foreign, state or local income or other taxes required to be withheld.

	  	 	  
	  	
Progress reports should be made to participants annually, showing performance results.

	  	 	  
	
Executive Officers

 

	

Notwithstanding any provisions to the contrary above, participation, awards and pro-rations for Executive Officers, including the Chief Executive Officer, shall be approved by the Compensation Committee.

 

	
Stockholder Approval

	The 2011 Plan and the awards hereunder are made pursuant to the Incentive Plan, which was approved by the Company’s stockholders at the Annual Meeting of Stockholders held on April 26, 2007.

 

 

8

 

 

	
Governance

 

	

The Compensation Committee of the Board of Directors of Snyder’s-Lance, Inc. is ultimately responsible for the administration and governance of the Plan.  Actions requiring Committee approval include final determination of plan eligibility and participation, identification of performance measures and goals, final award components and determination and amendments to the Plan.  For purposes of the Plan, acquisition performance will be excluded for the first twelve months after the acquisition and included in the results thereafter.  The Committee may adjust any award due to extraordinary events such as acquisitions, dispositions, required accounting adjustments or similar events, all as specified in Section 11(d) of the Incentive Plan; provided, however, that the Committee shall at all times be required to exercise this discretionary power in a manner, and subject to such limitations, as will permit all payments under the Plan to “covered employees,” as defined in Section 162(m) of the Internal Revenue Code, to continue to qualify as “performance-based compensation” for purposes of Section 162(m) of the Code.  In addition, under the Incentive Plan, the Committee retains the discretion to reduce any award amount from the amount otherwise determined under the applicable formula.  Subject to the foregoing, the decisions of the Committee shall be conclusive and binding on all participants.

 

 

9

 

 

Exhibit A-1

Matrix

 

 

10

 

 

Exhibit A-2

Performance Measures

 

 

11

 

 

Exhibit A-3

Peer Companies

 

12

 

 

Exhibit A-4

 

2011 Three-Year Performance Incentive Plan for Officers

 

	 	 	
Target

	
Name

	Title	
Incentive

 

 

13

 

 

Exhibit B-1

2011 Three-Year Performance Incentive Plan for Officers

	
 

 

Name

	
 

Stock Option 

Incentive

	
Nonqualified

Stock

Options

	
Restricted

Stock

 Awards

	
Restricted

Stock

Shares

	
Performance 

Award 

Opportunity

 

 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}]]