Document:

Innophos, Inc. Executive, Management and Sales Incentive Plan

 Exhibit 10.17 
 

 
 Executive, Management and Sales Incentive Plan 
 (US and Canada) 
 Business Confidential 
 Innophos, Inc. 
 Effective 1/1/07 

 Innophos Executive, Management and Sales Incentive Plan 
  

 Purpose 
 The Executive, Management and Sales Incentive Plan (“the Plan”) is designed to promote the interests of Innophos (“the Corporation”) by providing senior executives, managers and sales persons with incentives and rewards
commensurate with the achievement of the business and their personal achievement of business objectives. 
 Participation and Eligibility

 Executives, managers, sales persons and other key contributors of Innophos Inc. and Innophos Canada Inc. who have signed the “Employee
Agreement” which covers obligations with regard to anti-trust law, patents, inventions, and the company’s proprietary confidential information will be eligible to participate in the plan upon timely nomination and proper approval.

 If a person is hired or promoted during the year, the position maintains the same target incentive as was previously associated with the position. Adding
a participant or changing a participant’s target incentive during a calendar year requires the approval of the group VP, the CEO and the VP of Human Resources. Changes to the CEO’s bonus require approval of the Compensation Committee of
the Board of Directors. 
 The following chart outlines the bonus target guidelines (Note: actual targets may be lower or higher than the guidelines):

  

			
	 Salary Grade 
	  	Target Incentive
% of Base Salary
	 Leadership Team
	  	Determined by the Compensation
 Committee of the Board of
Directors

	 Other senior managers
	  	25 - 35%
	 Salary Grades E and D
	  	20% - 25%
	 Salary Grade F [1,3]
	  	15% - 20% (Sales 25%)

	 Salary Grade G [2,3]
	  	10% - 15% (Sales 25%)
[4]

  

	[1]	Non-sales and non-management positions at grade F are not necessarily participants in the management incentive program. 

  

					
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 Innophos Executive, Management and Sales Incentive Plan 
  

 It is recommended that first year level F participants enter the plan with a target incentive of 10%. An increase to
bring the participant to the higher guideline target may be considered in the following years. 

	[2]	Individuals in grade G or H may be nominated for participation in the management incentive program. 

	[3]	Those individuals in all grades in or nominated for the program should meet these criteria: 

	 	•	 	 high performers or high potentials, 

	 	•	 	 managers of an area having substantial impact on the business (a market area, a stand-alone production unit, etc.), or 

	 	•	 	 functional experts 

	[4]	Sales positions below grade G have a target of 15%. 

 Note: New hires
to the sales organization at any level may have target incentive set below 25% until such time as management approves an increase in the target percentage. 
 Guidelines for Changes 
 General: 
 Except as to the CEO, all changes, additions or deletions to the management and sales incentive program require approval by the group VP, the CEO and the VP of Human Resources. 
 New Participants: 
  

	1.	No new participants will be added in the last five months of the bonus year. Nominations received in the last five months of the year will be considered for participation in the
following year. 

  

	2.	Targets will be pro-rated based on the number of months of participation for new hires and new entrants. 

 Base Salary and Payment:  
 The annual base salary on December 31 is to
be used for calculating management and sales incentives. Bonuses will be paid annually upon review of the audited financial results by the Board of Directors. Management has the discretion to pay bonuses or portions thereof more frequently than
annually. All bonuses are subject to withholding taxes in accordance with the requirements of the relevant taxing authorities. 
 Basis of
the formula:  
 The formula for bonuses is made up of common and personal components. These have
different weights depending on the type of management position (see below.) In general the bonus is calculated in this manner: Base salary (on 12/31) X Target % X (common results + personal results). 
 Full achievement is assumed to equal 1.0 in both the common and personal factors. Only target achievement levels will be set at the beginning of a bonus term. Scores in
relationship to target will be determined by management within the guidelines that follow. Actual scores may be as low as 0 or as high as 3.0. 
  

					
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 Innophos Executive, Management and Sales Incentive Plan 
  

	 	•	 	 Common results are measured by financial performance against targets set by management and approved annually by the Compensation Committee of the Board of
Directors. The C Factor targets will be set for the following entities: (1) United States and Canada and (2) Mexico, and (3) Global Innophos. The percent of the overall C Factor derived from each entity is determined by the
Compensation Committee of the Board of Directors in the case of executives and by management for all others. In general, the C Factor will be weighted toward the region in which a participant’s primary responsibilities lie. This is typically,
although not exclusively, 80% from the home region and 20% from the foreign region. For participants with global roles, the C Factor is typically weighted 100% Global Innophos. The C factor results must be verified by the Chief Financial Officer and
based upon audited financial statements. 

  

	 	•	 	 The weight of the overall C factor in the bonus formula is 70% of the total bonus target for members of the Innophos Leadership Team. It is 50% of the total bonus
target for all other sales and management participants. The financial targets will be approved by the Compensation Committee of the Board of Directors on an annual basis. Disclosure of the financial targets will be in compliance with all laws and
regulations applicable to such public disclosures. 

  

	 	•	 	 Personal factor (“P factor”) targets are proposed by the participating employee and approved by his/her manager or by the Compensation Committee of the
Board of Directors in the case of the CEO. The P targets should be aggressive but attainable. 

  

	 	•	 	 Measurement of P factor results is the responsibility of each manager and participant and must be verified by the VP of that group. In the case of the Leadership
Team, the P factor results must be approved by the CEO in consultation with the Compensation Committee of the Board. P factor results may range from 0 to 2.0. 

  

	 	•	 	 Management has the responsibility and discretion to adjust P factor results giving consideration to changes in the business environment and observation of the
individual’s behavior in performing the job. 

  

	 	•	 	 The weight of the P factor in the bonus formula is 30% of the overall bonus target for members of the Innophos Leadership Team. It is 50% of the overall bonus
target for all other sales and management incentive participants. 

 Bonus targets: 

 In the event that a management or sales incentive target is changed during the year, the most recent target will be used for the bonus calculation unless
otherwise specified by management. 
  

					
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 Innophos Executive, Management and Sales Incentive Plan 
  

 Administrative Procedures 
 To request the addition of a participant or change a current participant’s target percentage during the plan year, the appropriate approval authority should: 
  

	 	•	 	 document the request in writing; 

  

	 	•	 	 include all relevant information (name, title, target incentive percentage, effective date, rationale); and 

  

	 	•	 	 forward this request to the group VP and the VP Human Resources. 

 Example Calculation 
 Employee Mary Doe holds a management position with salary grade E. She earned $110,000 as
annual base salary on 12/31. She is a management incentive participant at the 20% target level. The C factor for her bonus is weighted 50% (80% from US/Can and 20% from Mexico) and the P factor also is weighted 50%. The performance target for her C
Factor is calculated at $50M. Within the P factor Mary has two goals. Goal A has a performance target of $200K cost savings. Goal B has a performance target of 10% reduction in lost days. Each goal has a value of 50% of the P factor (or 25% of the
overall target.) 
 The C Factor results are $52M for the year- exceeding the projected target of $50M. The C score is approved by the Board to be 1.3.
Mary’s performance in her personal goals is $250K of cost savings and an 8% reduction in lost days. At management’s discretion, considering Mary’s overall performance, the final P score is set at 1.25. Reminder: Each factor is only
50% of the overall score, i.e. the final scores would be these: C = 0.65 and P = 0.625. 
 Mary’s Bonus Calculation 
 $110,000 (Base Salary) X .20 (Target) X [(0.65 (C) + 0.625 (P)] = $28,050 gross amount of management incentive payment 
 Plan Administration and Related Matters 
 Awards will
be paid as soon as administratively possible after the annual financial audit has been reviewed by the Board of Directors. (Management has the discretion to pay bonuses or portions thereof more frequently than annually. All bonuses are subject to
withholding taxes in accordance with the requirements of the relevant taxing authorities.) 
 1. TERMINATION OF EMPLOYMENT 
  

					
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 Innophos Executive, Management and Sales Incentive Plan 
  

  

	 	•	 	 If a participant ceases his or her employment with Innophos at any time prior to the distribution of the awards, the employee forfeits any award under the MICP
plan, unless the employee terminates due to retirement, death or disability. To qualify for bonus payment after retirement, the participant must reach age 55 and give formal written notification of his or her voluntary departure no less than ninety
(90) days prior to his or her last day worked. In the event of a death, the award will be paid to the estate of the deceased upon receipt of the proper court approved documentation. 

  

	 	•	 	 If a participant transfers out of an eligible position or leaves the Company due to involuntary termination (except for cause), he or she may be eligible for a
pro-rated payment. However, participants who resign or are terminated for cause will not be eligible for an incentive payment. 

  

	 	•	 	 Participants who are on extended disability leave or on an approved leave of absence during the year may receive prorated awards based upon the time actually worked
during the plan year. Disability pay and benefits are not bonus eligible compensation. 

 2. FUNDING 
 No funds need be set aside or reserved for payment of any Participant under the Plan, and any obligation by the Corporation to a Participant under the
Plan shall be unfunded and shall be paid from the general assets and general funds of the Corporation. However, the Corporation, for accounting purposes, will budget and accrue, on the books of the Corporation, an amount sufficient to cover the
estimated expense for the fiscal year. 
 3. NOT AN EXCLUSIVE METHOD OF INCENTIVE 
 This Plan shall not be deemed an exclusive method of providing incentive compensation for employees of the Corporation, nor shall it preclude the
Corporation from authorizing or approving other forms of incentive compensation. 
 4. NO RIGHT TO CONTINUED PARTICIPATION 
 Participation in the Plan by an employee in any plan year shall not be held or construed to confer upon the employee the right to participate in the Plan
in any subsequent fiscal year or plan semester. 
 5. NO RIGHT TO CONTINUED EMPLOYMENT 
 Neither the establishment of the Plan, the participation by an employee in the Plan nor the payment of any award hereunder or any other action pursuant to
the Plan shall be held or construed to confer upon any Participant the right to 
  

					
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 Innophos Executive, Management and Sales Incentive Plan 
  

 continue in the employ of the Corporation or affect any right which the Corporation may have to
terminate at will the employment of any such Participant. 
 6. RELATIONSHIP TO OTHER PLANS 
 Participation and payments under the Plan shall not affect or be affected by participation or payments under any other plan of the Corporation, except as
otherwise specifically provided by the Corporation. 
 7. NON-TRANSFERABILITY OF FUNDS 
 Except as otherwise provided by the Plan, no amount payable at any time under the Plan shall be subject to alienation by anticipation, sale, transfer,
assignment, bankruptcy, pledge, attachment, charge, or encumbrance of any kind. Nor shall it in any manner be subject to the debts or liabilities of any person. Any attempt to so alienate or subject any such amount shall be void. 
 8. AMENDMENT OF THE PLAN 
 Except as to the terms of
the CEO’s incentive, The CEO and the VP of Human Resources (“The Committee”) may amend or terminate this Plan at any time. No amendment or termination shall affect the right of a Participant to payment of any amounts which have been
determined prior to such amendment or termination, but the Committee may amend or terminate the rights of any Participant under the Plan at any time prior to the calculation of the award to be paid for any plan period. 
 Any changes to the terms of the CEO’s incentive require approval of the Compensation Committee of the Board of Directors. 
 9. EFFECTIVE DATE 
 The Plan document shall be
effective as of January 1, 2007, and shall continue in effect until terminated or modified. 
  
  
 Last printed 3/12/2008 2:42 PM 
  

					
	Confidential	  	Page 7Lease Contract

 Exhibit 10.1 
 LEASE CONTRACT 
  

			
	Lessor: 	  	China Electronic Information Industry Group Corporation (“Party A”)
	Registration Domicile:	  	Beijing, China
	Legal Representative:	  	Yang, Xiaotang
	Address:	  	27, Wanshou Road, Haidian District, Beijing
	Telephone No:	  	+(8610) 6217-1563
	Fax No:	  	+(8610) 6821-3745
	Lessee:	  	AsiaInfo Technology (China) Inc. (“Party B”)
	Registration Domicile:	  	Beijing, China
	Legal Representative:	  	Zhang, Zhenqing
	Address:	  	 4/F Zhongdian Information Tower, No.6 Zhongguancun
 South
Street, Haidian District
 Beijing 100086, P.R. China

	Telephone No:	  	+(8610) 8216- 6688
	Fax No:	  	+(8610) 8216-6699

 1. SUBJECT MATTER FOR LEASE. 
 1.1  Party A agrees to lease to Party B under good status the third and fourth floors of China Electronic Information Building located at 4/F Zhongdian Information Tower, No.6 Zhongguancun South Street,
Haidian District, Beijing 100086, P.R. China, with the aggregated area under the lease six thousand three hundred forty-seven point four seven square metres (6,347.47 m2 ) (which is gross area, including shared area for common use), with the
particular position as delineated by the red lines on the drawing of Appendix I. 
 1.2  Interior decoration: As it is.

 1.3  The premises mentioned above shall only be used for office purpose. 
 2   LEASE TERM. 
 2.1  The
premises mentioned above shall be of a lease term of two (2) years, commencing from December 1, 2006 and ending on November 31, 2008. In principle, Party B may not terminate the lease between December 1, 2006 and November 30, 2007. In case Party B
wishes, during the valid term of this Contract, to withdraw early from the lease, it shall notify Party A in writing three (3) months in advance and also pay Party B a liquidated damages as follow: (a) an amount equivalent to the sum of four (4)
months’ rent in case to withdraw during December 1, 2006 to November 30, 2007; (b) an amount equivalent to the sum of three (3) months’ rent in case to withdrawal during November 30, 2007 to November 30, 2008. 
 2.2  In case Party A wishes, during the valid term of this Contract, to withdraw early from the lease, it shall notify Party A in writing three
(3) months in advance and also pay Party B a liquidated damages as follow: (a) an amount equivalent to the sum of four (4) months’ rent in case to withdraw during December 1, 2006 to November 30, 2007; (b) an amount equivalent to the sum of
three (3) months’ rent in case to withdrawal during November 30, 2007 to November 30, 2008. Party A shall also return to Party B the rent which is already paid but not actually incurred. 
 2.3  Upon expiration of the lease term, Party A shall have the right to take back the premises under the lease and Party B shall return the
premises timely. In the event that Party B wishes to renew the lease, Party B shall handle the renewal procedures with Party A three (3) months prior to the expiration of this Contract. 
  

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 3  RENT AND PAYMENT. 
 3.1  During the lease term, the leasing price shall be two point eight Renminbi (RMB 2.8) per square metre for each day (which is gross area, not including property management fee), with the lease term to be
calculated according to calendar days. 
 3.2  Payment of the rent shall be paid per three months (“Payment
Period”) from the date of this Contract, with the whole rent to be paid in four (4) installments and each installment to be paid by Party B to Party A during the 16th to 25th of the first month every Payment Period. 
 4  SECURITY DEPOSIT. 
 Party A waives any
security deposit payments from Party B. 
 5  MANAGEMENT FEES AND OTHERS. 
 5.1  All the fees during the lease term in connection with the premises mentioned above for electricity, deposit of telephone lines, telephone
and charges in connection with the lease and use of the premises mentioned above shall be paid by Party B in full amount and timely according to the provisions and requirements of the Building Property Management Company (the
“Company”) or other relevant departments. 
 5.2  Any taxes and fees payable by the owner of the premises
mentioned above (Party A) according to the laws or relevant provisions in connection with the lease of the premises mentioned above shall be paid by Party A. 
 6  PARTY A’S RIGHTS AND OBLIGATIONS. 
 6.1  In the event of default by Party B of this Contract,
Party A may authorize, with no further notice otherwise, the Company to procure the rectification by Party B of its default and its compensation of corresponding losses. 
 6.2  During the three (3) months prior to the expiration of the lease term, Party A may enter the premises with any person who has the intention to lease the premises for the purpose of inspection, subject
to notification to Party B and obtaining Party B’s agreement. 
 6.3  In the event that Party B has not removed all or any
part of its own private property or self-installed equipment and articles out of the premises within five (5) days of the expiration or termination and discharge of this Contract, Party A will charge Party B an extra rent for the delay according to
the actual days elapsed. 
 6.4  In the event of any damages to the leased property which are not attributable to Party B and which
prevents Party B’s ordinary use, Party A shall assume the cost for the maintenance. When such damage occurs, Party A shall fix and eliminate the damage in three (3) business day after the damage occurred, or as mutually agreed upon between
Party A and Party B. If Party A refuses to fulfill its obligations pursuant to this Section 6.4, Party B may either repair the damages or terminate the lease without any further obligations. Party A shall borne all cost related to such repair. If
the lease is terminated pursuant to this Section 6.4, Party A shall return to Party B the rent which is already paid but not actually incurred, plus any other expenses and/or damages. 
 6.5  Party A shall declare and pay taxes and fees by itself in connection with its lease out of the premises. 
  

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 7  PARTY B’S RIGHTS AND OBLIGATIONS. 
 7.1  Party B shall have the right to use the premises mentioned above and the common areas and common equipment of the Building and assume the
corresponding liabilities and obligations in accordance with the provisions of this Contract and the rules and regulations of the Building. 
 7.2  Party B shall adopt necessary preventive measures as to prevent fire occurring to the premises. 
 7.3  In
the event of any damage to the premises due to Party B’s improper use, management and maintenance, Party B shall notify Party A or the Company of the same timely and shall assume the maintenance cost and compensation which occurs as a result
thereof. 
 7.4  Party B shall decide by itself on issues of insurance for the property Party B places within the premises mention
above or Party B may authorize the Company to handle such issues on its behalf. 
 7.5  Without prior approval from Party A, Party
B may not transfer, sublease or otherwise let other people use all or any part of or share the premises mentioned above with other people. 
 7.6  Party B agrees that Party A may, within reasonable time and subject to giving prior notice (or under urgent circumstances, without giving prior notice), enter the premises mentioned above for the purpose of inspection and
examination of the status of the facilities originally installed within the premises, or handling contingency issues. In case the facilities are damaged due to Party B’s fault, Party B shall repair promptly such damage according to Party
A’s requirement and at its own cost, or Party A shall have the right to carry out the repair for Party B and the cost thereof shall be borne by Party B. 
 7.7  Without Party A’s prior written approval, Party B may not move or remove any fixtures in the above mentioned premises. Any reform done by Party B should be based on the principle that such reform
shall not damage the monolithic structure and facilities of the premises. 
 7.8  In the event of any damage to other people’s
property or injury to individuals due to Party B’s improper use, management, maintenance, etc of the premises mentioned above, Party B shall solve by itself the dispute arising there from and assume by itself the liability to compensate such
damage. 
 7.9  Upon expiration of the lease term, Party B shall remove its own private property and self-installed equipment and
articles out of the premises mentioned above, hand back the premises mentioned above under clean and good condition to Party A. Articles as a result of Party B’s decoration may remain to be owned by Party A, and Party A does not have to pay
compensation for such decoration. In the event of any damage to the interior and outside of the premises mentioned above due to Party B’s dismantlement, carrying-away, etc, Party B shall be liable for repair and compensation of such damage.

 7.10  Any act of negligence of duty, of default and of infringement on the part of Party B’s employees, visitors and other
people permitted to enter the premises mentioned above in connection with their management, maintenance and use of the premises mentioned above shall all be deemed as Party B’s act, and Party B shall be liable to Party A therefore. 

8  FORCE MAJEURE. 
 In the event of
earthquake, typhoon, storm, fire, war and other force majeure events which are unforeseen, with their occurrence and consequences unpreventable and unavoidable, and which prevent performance by either Party of this Contract or performance of this
Contract according to the terms and conditions agreed in this Contract, the Party encountering such force majeure shall promptly inform the other Party by telegram or fax and shall furnish within fifteen (15) days details of such force majeure and
valid proof documents as to this Contract 

  

 3 

 
being unable to be performed in whole or in part, or to be delayed for its performance. The proof documents shall be issued by the local notary institution
where the force majeure occurs. The Parties shall consult with each other to decide whether this Contract shall, in accordance with the extension to which the performance of this Contract is affected, be terminated, partly discharged of the
performance liabilities or delayed for its performance. 
 9  LIABILITY FOR BREACHING CONTRACT. 
 9.1  Each of Party A and Party B shall perform this Contract in good faith. Either Party, who breaches this Contract, shall bear damages to the
other Party as a result of such breach. 
 9.2  During the lease term, if Party A breaches this Contract, damages shall be borne by
Party A in pursuant to Section 2.1 and if Party B breaches this Contract, damages shall be borne by Party B in pursuant to Section 2.2. 
 9.3  If Party B fails to pay the rent to Party A timely according to this Contract, Party A shall have the right to notify Party B in writing for immediate payment. For delay in payment, Party B shall pay Party A the surcharge at
the rate of zero point zero five percent (0.05%) of the day rent for each day. In case the delay in payment exceeds thirty (30) days, Party A shall have the right to discharge this Contract, with the date of issue of the written notice for discharge
being the date of such discharge, and this shall be regarded as the termination of this Contract by Party B’s breaching contract and Article 4 of this Contract shall then apply. Apart from the rent Party B has delayed to pay, Party B shall also
pay all the surcharge in accordance with this Article. 
 10  PRE-EMPTIVE RIGHT. 
 10.1  Party B may propose to renew the lease three (3) months prior to the expiration of the lease term and, if Party A intends to continue to
lease out the premises mentioned above and Party B has no material default during the lease term, Party B shall have the pre-emptive right to enter into the renewal lease contract for the premises mentioned above under the same conditions and terms.

 10.2  During the lease term or upon expiration of the lease term, if Party A intends to sell the premises mentioned above and
Party B has no material default during the lease term, Party B shall have the pre-emptive right to purchase the premises mentioned above under the same conditions and terms. 
 11  GOVERNING LAW AND SETTLEMENT OF DISPUTE. 
 11.1  The formation, validity,
interpretation, implementation and dispute settlement of this Contract shall be governed by the laws of the People’s Republic of China. 
 11.2  Any dispute arising out of the performance of this Contract or in connection with this Contract shall be settled by the Parties through friendly consultations between them. Failing it, such dispute shall be referred to and
finally settled by arbitration of the Beijing Arbitration Commission. 
 12  MISCELLANEOUS PROVISIONS. 
 12.1  In the event that any provision of this Contract is made invalid, illegal or unenforceable in accordance with the laws, the validity,
legality and enforceability of all other provisions of this Contract shall not be affected thereby and the Parties shall continue to perform such valid provisions of this Contract. 
 12.2  Any notice, request or other communication in connection with this Contract shall be in writing and shall be sent to the other Party by
registered mail, personal delivery or fax at the addresses of the Parties set forth above first. Mails to Party B may also sent to the address of the premises mention above. 
  

 4 

 12.3  Anything not covered in this Contract shall be dealt with in the Supplementary Agreement
otherwise entered into between Party A and Party B, which shall be an appendix to this Contract. The appendix to this Contract and the various rules and regulations set forth by the Company in relation to the management of the Building and the
premises mention above shall be an integral part of this Contract. 
 12.4  This Contract shall have its Chinese version as the
authentic version. 
 12.5  Upon agreement by the Parties, the execution of this Contract may be witnessed by the lawyers who shall
further supervise the performance of this Contract. The legal fees incurred therefor shall be borne by Party B. 
 12.6  This
Contract shall be executed in four (4) copies, with the lessor and lessee each keeping two (2) versions. Each of the four (4) copies of this Contract shall be equal in legal force. 
 12.7  This Contract shall become effective on the date of its signature. 
 IN WITNESS WHEREOF each of the Parties hereto have caused this Contract to be executed by its duly authorized representative on the date set forth below.

 Party A: (Contract Seal of China Electronic Information Industry Group Corporation) 
 Representative of Party A: (signature) 
 Dated: October 20, 2006 
 Party B: (Contract Seal of AsiaInfo Technology (China) Inc.) 
 Representative of Party B: (signature) 
 Dated: October 20, 2006 
  

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