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EXHIBIT 10.1
 
Cheniere Energy, Inc.
2011 - 2013 Bonus Plan
 
Two (2) sub plans: 
		
	I.    
	CQP Plan 

		
	▪    
	The CQP Plan covers funds paid by Cheniere Energy Partners GP, LLC (“CQP GP”) to Cheniere LNG O&M Services, LLC, which includes costs for Sabine Pass LNG, L.P.  (“Sabine Pass LNG”) operators, technicians and supporting roles that have been seconded to CQP GP pursuant to the Services and Secondment Agreement.  

		
	1.    
	The bonus formula for the CQP Plan will reward overall performance in relation to benchmarks for safety, operation without incident, efficiency of fuel usage as a ratio of throughput, total throughput, facility availability, ship demurrage, environmental compliance and other factors as agreed to by CQP GP and Sabine Pass LNG pursuant to the Operations and Maintenance Agreement.

 
		
	II.    
	Corporate Plan (see below)

		
	▪    
	The Corporate Plan covers bonuses paid outside of the Services and Secondment Agreement and includes all other employees not designated under the CQP Plan.

		
	▪    
	For each of the 2011, 2012 and 2013 performance years, the Corporate Plan will include an Annual Cash Bonus Pool and a Long-Term Commercial Bonus Pool. 

 
Corporate Plan:
		
	I.    
	Annual Cash Bonus Pool: 

		
	▪    
	For each of the 2011, 2012 and 2013 performance years, the Annual Cash Bonus Pool will be funded by the following:  (i) achievement of operational and corporate goals; (ii) EPC contract negotiations, balance sheet optimization, and 12% of any gross margins generated from the Company's Short-Term Commercial Activity (defined below), such that each incremental $25 MM of gross margins generated will fund the Annual Cash Bonus Pool with an additional $3 MM; and (iii) any other appropriate milestones achieved by the Company.

 
Annual Cash Bonus Pool
 
			
	Funding:
	Components:
	Annual Cash Bonus Pool
(cumulative):

	Base
	Achievement of operational and corporate goals
	$5 MM

	Target
	EPC Contract Negotiations, Balance Sheet Optimization, 12% of Gross Margins from Short-Term Commercial Activity and any other appropriate milestones
	Up to $10 MM

	Additional
	Additional Short-Term Commercial Activity and any other appropriate milestones
	Above $10 MM

 

 

Cheniere Energy, Inc.
2011 - 2013 Bonus Plan
 
		
	▪    
	Components of the Annual Cash Bonus Pool:

		
	1.    
	Base Bonus Goals - The achievement of the following operational and corporate goals will fund a base Annual Cash Bonus Pool equal to $5 MM:

		
	a)    
	Meet operations and safety objectives. 

		
	b)    
	Manage Cheniere Energy, Inc. (“Cheniere”) and its subsidiaries (collectively, the “Company”) within 10% of the approved expenditure budgets.

		
	c)    
	Sign MOUs for 1 Bcf/d of bi-directional capacity at the Sabine Pass LNG terminal.

		
	d)    
	File all required permit authorizations to commence construction of the liquefaction project at the Sabine Pass LNG terminal.

		
	2.    
	Target Bonus Goals - The achievement of the following goals will increase the Annual Cash Bonus Pool up to an aggregate target of $10 MM:       

a)    EPC Contract Negotiations - Negotiate a fixed price EPC contract for construction of the liquefaction project at the Sabine Pass LNG terminal.
b)    Balance Sheet Optimization - Develop a plan to address debt maturities.
c)    Short-Term Commercial Activity - “Short-Term Commercial Activity” equals 12% of any gross margins generated from the Company's contracts with a term of less than four years. Gross margins equal earnings minus direct costs (non-GAAP measure). Gross margins generated from Short-Term Commercial Activity will fund the Annual Cash Bonus Pool only to the extent credited to each of the applicable 2011, 2012 or 2013 fiscal years.  For example, a three-year contract entered into during 2011 with total gross margins of $75 MM over the three-year term may only yield gross margins of $25 MM in 2011; hence, $3 MM would be added to the Annual Cash Bonus Pool in 2011 for Short-Term Commercial Activity.
d)  Any other appropriate milestones achieved by the Company.
3.  The Annual Cash Bonus Pool may also be increased above the $10 MM target based on additional Short-Term Commercial Activity and any other appropriate milestones achieved by the Company.
		
	▪    
	Payout of the Annual Cash Bonus Award:  The determination and payment of the Annual Cash Bonus Award will be made no later than February 28 of the year following each performance year, provided that the participant is an employee of the Company as of such payment date, subject to the potential cash limitations below.

 
II.    Long-Term Commercial Bonus Pool:
		
	▪    
	During the 2011, 2012 and 2013 performance years, a Long-Term Commercial Bonus Pool will be determined by the Compensation Committee following the Company entering into a Long-Term Commercial Contract (defined below).

		
	▪    
	The Long-Term Commercial Bonus Pool will equal 11% of Margins (defined below) generated from any contract with a term of four years or more (“Long-Term Commercial Contract”).  

1.   “Margins” shall equal the present value of the following expected cash flows, applying a 15% discount rate in years four and beyond: cash receipts minus:  (i) direct costs;  (ii) interest payments on the liquefaction project debt; and (iii) expected cash payments to third party equity holders.
		
	▪    
	Payout of the Long-Term Commercial Bonus Pool. The payment of the Long-Term Commercial Bonus Pool may be made in a combination of up to a maximum of 25% of the pool in cash and the remainder of the pool in equity, as determined by the Compensation Committee, subject to the vesting requirements and potential cash limitations below.

 

 

Cheniere Energy, Inc.
2011 - 2013 Bonus Plan
 
1.    Long-Term Commercial Cash Award:  The Long-Term Commercial Cash Award will be granted within 30 days of obtaining financing commitments to construct the liquefaction project at the Sabine Pass LNG terminal and will vest in five annual installments.  The first installment will vest and be paid immediately upon commencement of construction of the liquefaction project (“Initial Cash Vesting Date”).  The second installment will vest and be paid on the first anniversary of the Initial Cash Vesting Date, the third installment will vest and be paid on the second anniversary of the Initial Cash Vesting Date, the fourth installment will vest and be paid on the third anniversary of the Initial Cash Vesting Date and the fifth installment will vest and be paid on the fourth anniversary of the Initial Cash Vesting Date.  Except as set forth below, the participant shall forfeit any unvested portion of his or her Long-Term Commercial Cash Award if the participant's employment with Cheniere terminates for any reason prior to the applicable vesting dates.
2.    Long-Term Commercial Equity Award:  The number of total shares to be granted to the participants will be determined by dividing the equity portion of the Long-Term Commercial Bonus Pool by the average closing price of the Company's common stock as reported on the NYSE Amex Equities for the 30 calendar days immediately following the fifth trading day after the announcement of the contract.  The Long-Term Commercial Equity Award will be granted in the form of restricted stock of the Company within 30 days of obtaining financing commitments to construct the liquefaction project at the Sabine Pass LNG terminal and will vest in five annual installments.  The first installment will vest immediately upon commencement of construction of the liquefaction project (“Initial Equity Vesting Date”).  The second installment will vest on the first anniversary of the Initial Equity Vesting Date, the third installment will vest on the second anniversary of the Initial Equity Vesting Date, the fourth installment will vest on the third anniversary of the Initial Equity Vesting Date and the fifth installment will vest on the fourth anniversary of the Initial Equity Vesting Date.  Except as set forth below, the participant shall forfeit any unvested equity if the participant's employment with the Company terminates for any reason prior to the applicable vesting dates.
 
III.     Vesting upon termination, death, disability, or change of control: If (i) Cheniere terminates the participant's employment without Cause (as defined in the Cheniere Energy, Inc. Amended and Restated 2003 Stock Incentive Plan, as amended (“2003 Stock Incentive Plan”), or any successor plan (collectively, the “Plan”)) or the participant terminates his/her employment for Good Reason (as defined in the Plan), or (ii) the participant dies or incurs a Disability (as defined in the Plan) or a Change of Control (as defined in the Plan) occurs, in each case before an award has been fully vested, the unvested portion of the award as of such date shall become immediately vested and payable in a single lump sum to the participant (or beneficiary in the case of the participant's death).
		
	▪    
	Notwithstanding the foregoing, in any circumstance in which the foregoing definitions of Disability or Change of Control would be operative and with respect to which the income tax under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), would apply or be imposed, but where such tax would not apply or be imposed if the meaning of the term “Disability” met the requirements of Section 409A(a)(2)(A)(ii) of the Code or “Change of Control” met the requirements of Section 409A(a)(2)(A)(v) of the Code, then the term “Disability” herein shall have the meaning ascribed to it within the meaning of Treas. Reg. §1.409A-3(i)(4) and “Change of Control” herein shall mean, but only for the transaction so affected, a “change 

 

 

Cheniere Energy, Inc.
2011 - 2013 Bonus Plan
 
in control event” within the meaning of Treas. Reg. §1.409A-3(i)(5).
		
	▪    
	If the payment of an award would be subject to additional taxes and interest under Section 409A of the Code because the timing of such payment is not delayed as provided in Section 409A(a)(2)(B) of the Code, then such payment shall be paid on the date that is six months (plus one day) after the date of the participant's termination of employment with Cheniere (or if such payment date does not fall on a business day, the next following business day), or such earlier date upon which such payment can be paid under Section 409A of the Code without being subject to such additional taxes and interest.

 
IV.     In the event Cheniere does not have a sufficient number of shares under the 2003 Stock Incentive Plan at the time of grant, then the Company may settle the unfunded equity portion with cash or other awards pursuant to any successor plan of the 2003 Stock Incentive Plan, subject to stockholder approval of such successor plan.
  
V.      The Company may not pay more than $20 MM in cash to all participants in the aggregate for any performance year.
 
VI.     The Company shall have the right to take any action as may be necessary or appropriate to satisfy any federal, state, local or any other tax withholding obligations as it determines are necessary at the time payments of the bonus are made.
 
VII.    Participants shall be solely responsible for and liable for any tax consequences (including but not limited to any interest or penalties) as a result of participation in the Corporate Plan. Neither the Board, nor the Company nor the Committee makes any commitment or guarantee that any federal, state or local tax treatment will apply or be available to any person participating or eligible to participate hereunder and assumes no liability whatsoever for the tax consequences to the participants.perfshagrmtex.htm

EXHIBIT 10.29

 

A.M. CASTLE & CO.

PERFORMANCE SHARE AWARD AGREEMENT

(2011-2013 LTCP)

A.M. CASTLE & CO.

2008 RESTRICTED STOCK, STOCK OPTION

AND EQUITY COMPENSATION PLAN

 

 

	
 GRANTEE: 

 

	 	 
	
 ADDRESS:

 

	 	 
	
 SOCIAL SECURITY NUMBER:

 

	 	 
	 NUMBER OF PERFORMANCE SHARES:  	 	 (THRESHOLD AWARD)
	 	 	 (TARGET AWARD)
	 	 	 (MAXIMUM AWARD)
	
 

DATE OF GRANT:

	 	 

 

This is an award agreement (the "Award Agreement") between A.M. Castle & Co., a Maryland corporation (the "Corporation"), and the individual named above (the "Grantee"). Subject to the conditions set forth herein, the Corporation hereby grants to the Grantee, as of the Grant Date specified above, the above-stated Target Award of Performance Shares and  Maximum Award of Performance Shares, which may be earned in accordance with Section 2, on the terms and conditions contained herein and in the Corporation’s 2008 Restricted Stock, Stock Option and Equity Compensation Plan approved by the shareholders April 24, 2008, as may be amended from time to time (the "Plan"). Capitalized terms used but not otherwise defined herein shall have the meaning ascribed to them in the Plan.

1. Performance Vesting.  Subject to Sections 2, 3 and 4, the Corporation shall deliver to the Grantee one share of Common Stock for each whole Performance Share that is earned in accordance with the following schedule:

 

 

	
Corporation’s Performance Measures

	
 Weighting

	
Threshold

	
Target

	
Max

	
Relative Total Shareholder Return

	
50%

	
 

	
 

	
 

	
Modified ROIC

	
50%

	 	 	 

 

 

Performance levels for RTSR shall be measured based on performance over the performance period.  Performance levels for Modified ROIC shall be measured based on performance during any one fiscal year during the performance period and shall be based on obtaining the respective Modified ROIC performance goals (threshold, target or maximum) for any one fiscal year during the performance period.  If the Modified ROIC returns meet or exceed threshold performance level for any two or more fiscal years during the performance period, then any payout will be based on the highest of the fiscal years in which threshold performance is obtained, and the award opportunity attributable to the Modified ROIC performance measure will be increased by an additional 20 percentage points, not to exceed the maximum performance award otherwise payable under the Modified ROIC measure.  If the Corporation’s actual performance is between the amounts listed above, the percentage of the Award shall be interpolated on a straight line basis. 

 

 

 

  

EX-1

  

2. Delivery of Shares.  The number of shares of Common Stock that the Grantee earns under Section 1 will be delivered to the Grantee as soon as administratively practicable after the end of the Performance Period; provided, however, that in lieu of shares of Common Stock, the payment may be made in cash or other equity based property or any combination thereof, as the Committee may determine in its sole discretion.  Before such delivery, the Committee shall certify in writing the number of Performance Shares that the Grantee have earned.  No fractional shares will be delivered pursuant to this Award and fractional shares shall be rounded down.

 

3. Employment Termination.  If the Grantee’s employment with the Corporation and its subsidiaries terminates before the end of the Performance Period, this Performance Share Award shall be forfeited on the date of such termination.

 

4.  Transferability.  The Performance Shares shall not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner, whether by the operation of law or otherwise.  Any attempted transfer of the Performance Shares prohibited by this Section 4 shall be null and void.

 

5.  Adjustments.  The Performance Shares shall be subject to adjustment or substitution in accordance with Section V of the Plan.

 

6.   Withholding.  The Grantee are responsible for all applicable federal, state and local income and employment taxes (including taxes of any foreign jurisdiction) which the Corporation is required to withhold at any time with respect to the Performance Shares to satisfy its minimum statutory withholding requirements.  Such payment shall be made in full at the Grantee’s election, in cash or check, by withholding from the Grantee’s next normal payroll check, or by the tender of shares of Common Stock payable under this Award.  Shares of Common Stock tendered as payment of required withholding shall be valued at the closing price per share of Common Stock on the date such withholding obligation arises.

 

7. Miscellaneous

 

(a)           Disclaimer of Rights.  Nothing contained herein shall constitute an obligation for continued employment.

 

(b)           Rights Unsecured.  The Grantee shall have only the Corporation’s unfunded, unsecured promise to pay pursuant to the terms of this Award.  The Grantee’s rights shall be that of an unsecured general creditor of the Corporation and the Grantee shall not have any security interest in any assets of the Corporation.

 

(c)           No Adjustment for Dividends.   The number of performance shares shall not be adjusted for the payment of any cash dividend on shares of common stock of the Corporation before the issuance of a stock certificate representing the earned Award.

 

(d)           Offset.   The Corporation may deduct from amounts otherwise payable under this Award all amounts owed by the Grantee to the Corporation and its affiliates to the maximum extent permitted by applicable law.

 

(e)           Terms of Plan.  The Award is subject to the terms and conditions set forth in the Plan, which are incorporated into and shall be deemed to be a part of this Award, without regard to whether such terms and conditions (including, for example, provisions relating to certain changes in capitalization of the Corporation) are otherwise set forth in this Award. In the event that there is any inconsistency between the provisions of this Award and of the Plan, the provisions of the Plan shall govern.

 

(f)            Amendment. This Award Agreement may be amended only by a writing executed by the Corporation and the Grantee that specifically states that it is amending this Award Agreement. Notwithstanding the foregoing, this Award Agreement may be amended solely by the Committee by a writing which specifically states that it is amending this Award Agreement, so long as a copy of such amendment is delivered to the Grantee, and provided that no such amendment adversely affecting the rights of the Grantee hereunder may be made without the Grantee’s written consent. Without limiting the foregoing, the Committee reserves the right to change, by written notice to the Grantee, the provisions of the Performance Shares or this Award Agreement in any way it may deem necessary or advisable to carry out the purpose of the grant as a result of any change in applicable laws or regulations or any future law, regulation, ruling or judicial decisions, provided that any such change shall be applicable only to the Performance Shares which are than subject to restrictions as provided herein.

 

 

  

EX-2  

  

 (g)           Severability.  If any term, provision, covenant or restriction contained herein is held by a court or a federal regulatory agency of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions contained herein shall remain in full force and effect, and shall in no way be affected, impaired or invalidated.

 

(h)            Controlling Law.  The Award shall be construed, interpreted and applied in accordance with the law of the State of Illinois, without giving effect to the choice of law provisions thereof.  The Grantee agrees to irrevocably submit any dispute arising out of or relating to this Award to the exclusive concurrent jurisdiction of the state and federal courts located in Illinois.  The Grantee also irrevocably waive, to the fullest extent permitted by applicable law, any objection the Grantee may now or hereafter have to the laying of venue of any such dispute brought in such court or any defense of inconvenient forum for the maintenance of such dispute, and the Grantee agree to accept service of legal process from the courts of Illinois.

 

(i)           Code Section 409A Compliance.  To the extent applicable, it is intended that this Award and the Plan not be subject to or otherwise comply with the provisions of Code Section 409A, so that the income inclusion provisions of Code Section 409A(a)(1) do not apply. This Award and the Plan shall be interpreted and administered in a manner consistent with this intent, and any provision that would cause the Award or the Plan to fail to satisfy Code Section 409A shall have no force and effect until amended to comply with Code Section 409A (which amendment may be retroactive to the extent permitted by Code Section 409A and may be made by the Corporation without the Grantee’s consent).

 

8.  Definitions.   As used herein, the following terms shall be defined as set forth below:

 

(a)           “Award” means the Performance Share Award to the Grantee as set forth herein, and as may be amended as provided herein.

 

(b)           “Board” means the Corporation’s Board of Directors.

 

(d)           “Code” means the Internal Revenue Code of 1986, as amended.

 

 

(e)           “Committee” means the Human Resources Committee of the Board.

 

 

(f)            “Common Stock” means the Corporation’s $.01 par value common stock.

 

 

 (g)            “Grant Date” means the date this Award is made to the Grantee, as set forth on the first page of the Award.

 

 

(h)            “Maximum Award” means that maximum number of Performance Shares awarded to the Grantee as set forth on the first page of the Award, representing Two Hundred Percent (200%) of the Target Award.

 

 

(i)           “Modified ROIC” shall be calculated as follows:

 

(a) the sum of the Company’s reported net income for the fiscal year plus pre-tax interest expense for such fiscal year; divided by

 

(b) the sum of the Company’s market capitalization as of December 31, 2010 (equal to the product of the 60-day trailing average price of the Company’s common stock as of December 31, 2010, multiplied by the total number of shares of the Company’s common stock outstanding as of December 31, 2010), plus the book value of the Company’s long-term debt as of December 31, 2010.

 

 

  

EX-3  

  

  

 

(j)           “Performance Period” means the Corporation’s three (3) consecutive fiscal years commencing with the fiscal year beginning ________.

 

 

(k)            “Performance Share” means a restricted stock unit under the Plan that is subject to restrictions based on the attainment of certain performance criteria, as described herein, and represents a bookkeeping entry that records the equivalent of one share of Common Stock.

 

(l)           “Relative Total Shareholder Return” means percentile rank of the Company’s Total Shareholder Return (TSR) against an external benchmark established by the Committee in its sole discretion.  The composition of the external benchmark may be adjusted by the Committee from time to time throughout the Performance Period based on criteria established by the Committee.

 

(m)           “Target Award” means that number of Performance Shares specified as such on the first page of the Award.

 

 

(n)            “Threshold Award” means that threshold number of Performance Shares awarded to the Grantee as set forth on the first page of the Award, representing Fifty Percent (50%) of the Target Award.

 

 (o)           “Total Shareholder Return” means the stock price appreciation, plus dividends reinvested and plus cash equivalent distributions reinvested over a specific period of time.  Total Shareholder Return is expressed as a percentage increase (decrease) over the beginning value of the stock.

The Corporation and the Grantee hereby agree to the terms and conditions of this Award Agreement and have executed it as of the Date of Grant set forth above.

 

A. M. CASTLE & CO.

 

 

By: ___________________________________

 

Its: Vice President, General Counsel & Secretary

 

 

_______________________________________

Grantee

 

 

 

 

 

 

 

 

 

 

EX-4

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