Document:

Exhibit 10.12

 

BUNGE
LIMITED EQUITY INCENTIVE PLAN

 

AWARD
AGREEMENT

 

– Notice of
Performance-Based Restricted Stock Units Grant –

Performance
Period – Years 2005, 2006 and 2007

Target EPS
U.S. $[   ]

 

Effective as of the Date of Grant set forth below,
the Participant named below is hereby awarded an Award of Performance-Based
Restricted Stock Units (the “Award” or “Performance-Based Restricted Stock Units”)
under the Bunge Limited Equity Incentive Plan (the “Plan”) covering the
Target Number of Performance-Based Restricted Stock Units set forth below,
subject to the terms and conditions of the Plan and this Award Agreement (this “Award Agreement”).  This Award Agreement consists of this Notice
of Performance-Based Restricted Stock Units Grant (the “Grant Notice”) and
the attached Terms and Conditions Applicable to Performance-Based Restricted
Stock Units.  Defined terms not
explicitly defined in this Award Agreement but defined in the Plan shall have
the same definitions as in the Plan.

 

Participant Information:

 

	
  Name:

  	
  Address:

  
	
   

  	
   

  

 

Summary of Performance-Based
Restricted Stock Units Terms:

 

	
  Date of Grant:

  	
  Target Number of Performance-Based
  Restricted Stock Units:

  
	
  Vesting Date:

  	
   

  
	
  Third anniversary of the
  Date of Grant.

  	
   

  

 

The Participant and Bunge Limited, a company
organized under the laws of Bermuda, and any successor thereto (“Bunge”), agree that
this Award is granted under and subject to the terms and conditions of the Plan
and this Award Agreement, and that this Award is granted for no consideration
other than the Participant’s services. 
The Participant acknowledges that he or she has reviewed the Plan and
this Award Agreement in their entirety and has had an opportunity to obtain the
advice of counsel and a qualified tax advisor prior to executing this Award
Agreement.  The Participant hereby agrees
to comply with the terms and conditions of the Plan and this Award Agreement
and accepts as binding, conclusive and final all decisions or interpretations
of the Board upon any questions relating to the Plan and this Award Agreement.

 

The Participant indicates acceptance of this Award,
subject to the terms and conditions set forth in the Plan and the Award
Agreement, by signing this Grant Notice and returning it to the undersigned
representative of Bunge no later than             ,
2005.  If a signed copy of this Grant
Notice is not received by such date, this Award shall be void and of no force
and effect.

 

	
  BUNGE LIMITED

  	
  PARTICIPANT

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:

  	
  Flávio Sá Carvalho

  	
  [NAME]

  
	
  Title:

  	
  Chief Personnel Officer

  	
   

  
							

 

 

BUNGE
LIMITED

EQUITY
INCENTIVE PLAN

 

AWARD
AGREEMENT

 

– Terms and
Conditions Applicable to Performance-Based Restricted Stock Units –

 

1.                                      Grant.  Subject to the terms and conditions of the
Plan and this Award Agreement, the Company has elected to grant the Participant
an Award of Performance-Based Restricted Stock Units as of the Date of
Grant.  Each Performance-Based Restricted
Stock Unit shall entitle the Participant to receive the value of one Share,
subject to the Participant’s satisfaction of the terms and conditions of the
Plan and this Award Agreement.

 

2.                                      Vesting
of Performance-Based Restricted Stock Units.  

 

(a)                                  Vesting Date; Performance Level. 
Subject to the other terms and conditions of the Plan and this Award
Agreement, the Award shall vest and become nonforfeitable based upon the
cumulative diluted earnings per share (“Cumulative Earnings Per Share”) of Bunge for
the three consecutive fiscal years ending prior to the Vesting Date.  The portion of the Award that shall vest as
of the Vesting Date shall be determined based upon the Cumulative Earnings Per
Share achieved (with partial Shares rounded down so that only whole Shares
shall vest) in the manner set forth in the table below (the “Vesting Table”).

 

	
  Performance Level

  	
   

  	
  Cumulative

  Earnings Per Share

  For the Years 2005, 2006 and 2007

  	
   

  	
  % Vesting

  
	
  Below Threshold

  	
   

  	
  Less than U.S. $[   ]

  	
   

  	
  0%

  
	
  Threshold

  	
   

  	
  U.S. $[   ]

  	
   

  	
  50% of the Award

  
	
  Target

  	
   

  	
  U.S. $[   ]

  	
   

  	
  100% of the Award

  
	
  Maximum

  	
   

  	
  U.S. $[   ]

  	
   

  	
  200% of the Award

  

 

The Cumulative Earnings Per Share amount shall be
determined in good faith by the Committee as soon as practicable following the
end of fiscal year 2007.  Such
determination shall be final and binding on the Participant and the Company.  In the event that the Cumulative Earnings Per
Share is between performance levels, the portion of the Award that will become
vested shall be interpolated by the Committee, and the Participant shall be
advised by the Committee in writing as to the portion of the Award that vests
as of the Vesting Date.  Any such
determination by the Committee shall be final and binding on the Participant
and the Company.

 

(b)                                 Portion of Award that Vests on the Vesting
Date.  Except as otherwise provided in Section 3
below, a Participant must be employed by the Company on the Vesting Date for
any portion of the Award to vest.  The
portion of the Award that will vest on the Vesting Date shall be determined in
accordance with the Vesting Table as follows:

 

2

 

(i)                                     No portion of the Award shall vest, and the
Award shall be immediately forfeited, if Cumulative Earnings Per Share is less
than the threshold amount set forth in the Vesting Table.

 

(ii)                                  If Cumulative Earnings Per Share equals or
exceeds the threshold amount set forth in the Vesting Table but is less than
the target amount set forth therein, the Participant shall vest in a percentage
of the Target Number of Performance-Based Restricted Stock Units between 50%
and 100% determined proportionally based upon the relationship between actual
Cumulative Earnings Per Share and the threshold and target amounts therefore.

 

(iii)                               If Cumulative Earnings Per Share equals the
target amount set forth in the Vesting Table, the Participant shall vest in the
Target Number of Performance-Based Restricted Stock Units.

 

(iv)                              If Cumulative Earnings Per Share exceeds the
target amount set forth in the Vesting Table but is less than the maximum
amount set forth therein, the Participant shall vest in a percentage of the
Target Number of Performance-Based Restricted Stock Units between 100% and 200%
determined proportionally based upon the relationship between actual Cumulative
Earnings Per Share and the target and maximum amounts therefore.

 

(v)                                 If Cumulative Earnings Per Share equals or
exceeds the maximum amount set forth in the Vesting Table, the Participant
shall vest in 200% of the Target Number of Performance-Based Restricted Stock
Units.

 

(vi)                              Any portion of the Award that does not vest
in accordance with the provisions of this Section 2(b) shall be
immediately forfeited.

 

(vii)                           Except as otherwise provided in Section 3
below, in no event shall the Participant vest in more than 200% of the Target
Number of Performance-Based Restricted Stock Units.

 

(c)                                  Payment of Awards.  Payment
in settlement of the vested portion of an Award shall be made as soon as
practicable following the Vesting Date in whole Shares (rounded down to the
nearest whole share).  The number of
Shares issued to a Participant shall equal the number of Shares underlying the
vested portion of the Award receivable by such Participant following the
Vesting Date.

 

(d)                                 No Rights as Shareholder.  A Participant shall have no rights as a shareholder with respect to any
Award until Shares, if any, shall have been issued to the Participant following
the Vesting Date, and except as expressly provided herein or in the Plan, no
adjustment shall be made for dividends or distributions or other rights in
respect of any Share for which the record date is prior to the date on which
the Participant shall become the registered holder of such Shares.

 

(e)                                  Dividend Equivalent Payments. 
Unless the Committee determines otherwise and subject to Section 2(f) below,
if the Company pays any cash or other dividend or makes any other distribution
in respect of the Shares underlying the Award, the Company shall maintain a
bookkeeping record to which such amount of the dividend or distribution in
respect to such Shares shall be credited, at such time and in such manner as is
determined solely by the Committee, to an account for the Participant and paid
in whole Shares at the time the Award is settled.  Any fractional Shares which become payable at
the time the Award is settled shall be paid in cash.

 

(f)                                    Election
to Defer Performance-Based Restricted Stock Units Prior to Vesting Date.  In accordance with such procedures
established by the Committee from time to time, in its sole discretion, the

 

3

 

Participant may irrevocably elect
to defer receipt of all or a portion of the Performance-Based Restricted Stock
Units in accordance with the terms of this Section 2(f) (a “Deferral Election”)
and the terms of the deferred compensation plan (the “Deferred Compensation Plan”)
set forth on a deferral election form that the Company may provide to the
Participant at a later date (the “Deferral Election Form”).  In order to make a Deferral Election, the
Participant must complete and submit the Deferral Election Form in
accordance with the instructions included on such form by a date specified by
the Chief Personnel Officer in his sole discretion.  Such Performance-Based Restricted Stock Units
shall be credited automatically, without any further action on the Participant’s
part, to the Participant’s account under the Deferred Compensation Plan on the
Vesting Date and shall be subject to the terms of the Deferred Compensation
Plan.

 

3.                                      Adjustments.

 

(a)                                  Adjustment to Number of Units.  An
Award of Performance-Based Restricted Stock Units that has vested in accordance
with Section 2(a) above may be adjusted, in the sole discretion of
the Committee, so that the Target Number of Performance-Based Restricted Stock
Units, as set forth on the Grant Notice, represents up to 20% fewer
Performance-Based Restricted Stock Units. 
The Committee shall specify the procedures applicable to implementing
the provisions of this Section 3(a). 
The consent of the Participant shall not be required for any action to
be taken by the Committee under this Section 3(a).

 

(b)                                 Adjustment to Performance Goals.  The
Committee may adjust the manner in which the threshold, target and maximum
performance goals are defined as set forth above in Section 2 if it
determines that the occurrence of external changes or other unanticipated
business conditions have materially affected the fairness of the goals and have
unduly influenced the Company’s ability to meet them, including without
limitation, events such as material acquisitions, changes in the capital
structure of the Company, and extraordinary accounting changes.    

 

(c)                                  Adjustment
to Cumulative Earnings Per Share. 
The parties hereto acknowledge and agree that the Cumulative Earnings
Per Share amounts reflected in the Vesting Table are based on assumptions
pertinent to the number of Shares issued and outstanding as of the Date of
Grant.  If such number of Shares has been
increased or decreased at the time of the calculation of Cumulative Earnings
Per Share, the Committee, in its sole discretion, may equitably adjust the
Cumulative Earnings Per Share amount applicable to each performance level.  Any such calculation shall be made by the
Committee in good faith and shall be final and binding on the Company and the
Participant.

 

4.                                      Termination
of Employment.

 

(a)                                  Termination
of Employment for Cause; Resignation for Any Reason.  In the event that the Participant’s
employment is terminated by the Company for Cause or as a consequence of the
Participant’s resignation for any reason, the Award shall lapse and become void
as of the date of such termination.

 

(b)                                 Termination
of Employment for Any Other Reason. 
In the event that the Participant’s employment terminates for any
reason, other than by the Company for Cause or the Participant’s resignation
for any reason, the Award shall vest on a pro rata basis from the Date of Grant
until the date of the Participant’s termination of employment.  The settlement of the vested portion of the
Award shall be based upon the achievement of the Cumulative Earnings Per Share
of Bunge measured as of the last day of the fiscal quarter immediately
preceding the Participant’s termination of employment.  The Award shall be settled in accordance with
Section 2(c) as soon as practicable following the Participant’s
termination of employment, subject to the restrictions imposed by Section 409A
of the Internal Revenue Code of 1986, as amended, (the “Code”) and any
regulations, rulings and other regulatory guidance issued thereunder; provided, however,
that, in the event of the Participant’s termination of 

 

4

 

employment as described in this
Section 4(b) prior to the first anniversary of the Date of Grant, the
entire Award shall be forfeited as of the date of such termination without any
payment.

 

5.                                      General
Terms.

 

(a)                                  Transferability.  The
Award is not transferable by the Participant, except by will or by the laws of
descent and distribution or pursuant to a domestic relations order, if
applicable.

 

(b)                                 Award Not a Service Contract. 
Neither this Award Agreement nor the Award granted hereunder is an employment
or service contract, and nothing in this Award Agreement shall be deemed to
create in any way whatsoever any obligation on the part of the Participant to
continue in the employ of the Company, or of the Company to continue the
Participant’s employment.  In addition,
nothing in this Award Agreement shall obligate the Company or shareholders, the
Board, officers or employees of Bunge or any other entity constituting the
Company to continue any relationship that the Participant might have as a
director, advisor, employee or consultant for the Company.

 

(c)                                  Withholding Obligations.  The
Company shall be entitled to require the Participant, prior to delivery of any
Shares, to remit to the Company an amount sufficient to satisfy any U.S.
federal, state, local and/or foreign income tax, social tax or other applicable
payroll tax withholding requirements. 
The Company may, in its sole discretion, permit the Participant, after
the delivery of Shares to the Participant, to satisfy U.S. federal, state,
local and/or foreign income tax, social tax or other applicable payroll taxes
by directing the Company to repurchase Shares that were issued to such
Participant in accordance with all applicable laws and pursuant to any such rules as
the Committee may establish from time to time.

 

(d)                                 Restrictive Covenants; Cooperation
Obligations.

 

(i)                                     Confidentiality.  The
Participant understands and acknowledges that in the course of his or her
employment, the Participant shall have access to and shall learn information
proprietary to Bunge, its parent companies and subsidiaries (individually and
as a group, the “Bunge
Group”) that concerns the technological innovations, operation
and methodology of the Bunge Group, including, without limitation, business
plans, financial information, protocols, proposals, manuals, clinical
procedures and guidelines, scientific data, computer source codes, programs,
software, know-how and specifications, copyrights, trade secrets, market
information, Developments (as hereinafter defined), data and customer
information (collectively, “Proprietary Information”). “Developments” shall
mean all data, discoveries, findings, reports, designs, inventions,
improvements, methods, practices, techniques, developments, programs, concepts
and ideas, whether or not patentable, relating to the present or planned
activities, or the products and services of the Bunge Group.  The Participant hereby agrees that during the
period beginning on the Date of Grant and continuing in perpetuity thereafter,
the Participant shall keep confidential and shall not disclose any such
Proprietary Information to any third party, except as required to fulfill his
or her duties in connection with employment by the Bunge Group, and shall not
misuse, misappropriate or exploit such Proprietary Information in any way.  The restrictions contained herein shall not
apply to any information which (i) was already available to the public at
the time of disclosure, or subsequently became available to the public,
otherwise than by breach of this Award Agreement or (ii) the disclosure of
which was required by order of any court or administrative agency.  Upon any termination of the Participant’s
employment with the Bunge Group, the Participant hereby agrees to return
immediately to the Bunge Group all Proprietary Information and copies thereof
in the possession of the Participant.

 

(ii)                                  No Competing Employment. 
During the period beginning on the Date of Grant and continuing until
the end of the twelfth month following the Participant’s termination of

 

5

 

employment
for any reason with the Bunge Group (such period to be referred to as the “Restricted Period”),
the Participant shall not, without the prior written consent of Bunge, directly
or indirectly, whether as owner, consultant, employee, partner, venturer, or
agent, through stock ownership, investment of capital, lending of money or
property, rendering of services, or otherwise (except ownership of less than 5%
of the number of shares outstanding of any securities which are publicly
traded), (A) compete with the Bunge Group, or (B) provide services
to, whether as an employee or consultant, or own, manage, operate, control,
participate in or be connected with (as a shareholder, partner or similar
owner) any corporation, firm, partnership, joint venture, sole proprietorship
or other entity which competes with the Bunge Group, except for the
aforementioned ownership of less than 5% of any publicly traded
securities.  The Restricted Period shall
be extended by the length of any period during which the Participant is in
breach of any of the terms of this Section 5(d)(ii).

 

(iii)                               Restrictions on
Solicitation.  During the Restricted Period, and except as
required pursuant to the Participant’s duties to the Bunge Group in connection
with the employment relationship, the Participant shall not, directly or
indirectly:  (i) solicit or contact
any customer of the Bunge Group (or any other entity that the Participant knows
is a potential customer with respect to specific products of the Bunge Group
and with which the Participant has had contact during the period of his or her
employment with the Bunge Group) for any commercial pursuit that to the
knowledge of the Participant is in competition with the Bunge Group or that to
the knowledge of the Participant is contemplated from time to time during the
period of his or her employment with the Bunge Group by any corresponding
business plan; (ii) take away or interfere or attempt to interfere with
any custom, trade, business or patronage of the Bunge Group, or induce, or
attempt to induce, any employees, agents or consultants of or to the Bunge
Group to do anything from which the Participant is restricted by reason of this
Section 5(d); or (iii) offer or aid others to offer employment to
employees of the Bunge Group, or interfere or attempt to interfere with any
employees of the Bunge Group.  The
Restricted Period shall be extended by the length of any period during which
the Participant is in breach of any of the terms of this Section 5(d)(iii).

 

(iv)                              Application of Covenants.  The
activities described in this Section 5(d) shall be prohibited
regardless of whether undertaken by the Participant in an individual or
representative capacity, and regardless of whether performed for the
Participant’s own account or for the account of any other individual,
partnership, firm, corporation or other business organization (other than
Bunge).

 

(v)                                 Injunctive Relief. 
Without limiting the remedies available to Bunge, the Participant
acknowledges that a breach of any of the covenants contained in this Section 5(d) may
result in irreparable injury to Bunge for which there is no adequate remedy at
law, that it shall not be possible to measure damages for such injuries
precisely and that, in the event of such a breach or threat thereof, Bunge
shall be entitled to seek a temporary restraining order or a preliminary or
permanent injunction restraining the Participant from engaging in activities
prohibited by this Section 5(d) or such other relief as may be
required to specifically enforce any of the covenants in this Section 5(d).

 

(e)                                  Plan Document
Controls.  In the event of any conflict between the provisions of this Award
Agreement and those of the Plan, the provisions of the Plan shall control.

 

(f)                                    Applicable Law.  This
Award Agreement shall be governed by and subject to the laws of the State of
New York and to all applicable laws and to the approvals by any governmental or
regulatory agency as may be required.

 

(g)                                 Validity.  The invalidity or unenforceability
of any provision of this Award Agreement shall not affect the validity or
enforceability of any other provision of this Award Agreement,

 

6

 

which shall remain in full force and
effect.  The parties intend that any
offending provision shall be enforced to the fullest extent to which it is
enforceable, that any unenforceable portion thereof be severed from this Award
Agreement, and that this Award Agreement, as modified to sever any such
unenforceable portion, be enforced to the fullest extent permitted by law.  In the event that all or any portion of this
Award is forfeited pursuant to the terms of the Plan or this Award Agreement,
such forfeiture shall be automatic and shall not require any further action by
the Participant or the Company.

 

(h)                                 Notices.  All notices and other
communications provided for herein shall be in writing and shall be delivered
by hand, telecopy or facsimile transmission or sent by certified or registered
mail, return receipt requested, postage prepaid, addressed, if to the
Participant, to the attention of the Participant at the mailing address set
forth on the Grant Notice (or to such other address as the Participant shall
have specified to Bunge in writing) and, if to Bunge, to it at its principal
offices which are currently located at 50 Main Street, 6th Floor, White Plains,
New York 10606, attention Chief Personnel Officer.  All such notices shall be conclusively deemed
to be received and shall be effective, (i) if delivered by hand, upon
receipt, (ii) if sent by telecopy or facsimile transmission, upon
confirmation of receipt by the sender of such transmission or (iii) if
sent by registered or certified mail, on the fifth day after the day on which
such notice is mailed.

 

(i)                                     Waiver.  The waiver by either party of
compliance with any provision of this Award Agreement by the other party shall
not operate or be construed as a waiver of any other provision of this Award
Agreement, or of any subsequent breach of such party of a provision of this
Award Agreement.

 

(j)                                     Committee Decisions Final.  Any
dispute or disagreement that arises under, or as a result of, or pursuant to,
or in connection with, the interpretation or construction of the terms of this
Award Agreement or the Award granted hereunder shall be determined by the
Committee.  Any interpretation by the
Committee of the terms of the Award shall be final and binding on all persons
affected thereby.

 

(k)                                  Amendments.  The Committee shall have the
power to alter or amend the terms of this Award Agreement as set forth herein
from time to time, in any manner consistent with the provisions of Section 14
of the Plan, and any alteration or amendment of the terms of the Award by the
Committee shall, upon adoption, become and be binding on all persons affected
thereby without requirement for consent or other action with respect thereto by
any such person; provided, however, that, except as contemplated by Section 14
of the Plan and Section 3 hereof, no such alteration or amendment may,
without the consent of the Participant, adversely affect the rights of the
Participant under this Award.  The
Committee shall give written notice to the Participant of any such alteration
or amendment as promptly as practicable after the adoption thereof.  Notwithstanding any provision herein to the
contrary, the Board shall have the broad authority to amend this Award to take
into account changes in applicable tax laws, securities laws, accounting rules and
other applicable state and Federal laws, including without limitation,
any amendments made pursuant to Section 409A of the Code and any
regulations, rulings and other regulatory guidance issued thereunder.

 

(l)                                     Entire Agreement; Headings.  This
Award Agreement and the other related documents expressly referred to herein
set forth the entire agreement and understanding between the parties
hereto.  The headings of sections and
subsections herein are included solely for convenience of reference and shall
not affect the meaning of any of the provisions of this Award Agreement.

 

(m)                               Counterparts.  The
Grant Notice to this Award Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original but all of which
together shall constitute one and the same instrument.

 

(n)                                 Market Standoff Agreement.  The
Participant, if requested by Bunge and an underwriter of Common Stock (or other
securities) of Bunge, agrees not to sell or otherwise transfer or dispose of
any Common Stock (or other securities) of Bunge held by the Participant during
the period

 

7

 

requested by the underwriter managing any
public offering of Common Stock (or other securities) of Bunge following the
effective date of a registration statement of Bunge filed under the U.S.
Securities Act of 1933, as amended, provided
that all similarly situated officers and directors of Bunge are required to
enter into similar agreements.  Such
agreement shall be in writing in a form satisfactory to Bunge and such
underwriter.  Bunge may impose
stop-transfer instructions with respect to the shares (or other securities)
subject to the foregoing restriction until the end of such period.

 

(o)                                 Share
Ownership Guidelines.  The
Participant, if subject to Bunge’s
share ownership guidelines, agrees to comply with the conditions and
restrictions imposed by such guidelines with respect to any Shares received in
connection with the settlement of an Award.

 

(p)                                 Securities Laws Compliance.  No
Shares shall be issued or transferred under this Award Agreement unless the
Committee determines that such issue or transfer is in compliance with all
applicable U.S. federal, state and/or foreign securities laws and regulations,
including without limitation, Bermuda laws and regulations.

 

(q)                                 Change
in Control.  Upon a Change in
Control, the Participant’s Performance-Based Restricted Stock Units shall be
subject to Section 13(b) of the Plan.

 

8Exhibit 10.13

 

BUNGE
LIMITED EQUITY INCENTIVE PLAN

 

AWARD
AGREEMENT

 

– Notice of
Performance-Based Restricted Stock Units Grant –

Performance
Period – Years 2005, 2006 and 2007

Target
Operating Profit U.S. $[   ] – [NAME OF BUNGE BUSINESS UNIT]

 

Effective as of the Date of Grant set forth below,
the Participant named below is hereby awarded an Award of Performance-Based
Restricted Stock Units (the “Award” or “Performance-Based Restricted Stock Units”)
under the Bunge Limited Equity Incentive Plan (the “Plan”) covering the
Target Number of Performance-Based Restricted Stock Units set forth below,
subject to the terms and conditions of the Plan and this Award Agreement (this “Award Agreement”).  This Award Agreement consists of this Notice
of Performance-Based Restricted Stock Units Grant (the “Grant Notice”) and
the attached Terms and Conditions Applicable to Performance-Based Restricted
Stock Units.  Defined terms not
explicitly defined in this Award Agreement but defined in the Plan shall have
the same definitions as in the Plan.

 

Participant Information:

 

	
  Name:

  	
  Address:

  
	
   

  	
   

  

 

Summary of Performance-Based
Restricted Stock Units Terms:

 

	
  Date of Grant:

  	
  Target Number of Performance-Based
  Restricted Stock Units:

  
	
  Vesting Date:

  	
   

  
	
  Third anniversary of the
  Date of Grant.

  	
   

  

 

The Participant and Bunge Limited, a company
organized under the laws of Bermuda, and any successor thereto (“Bunge”), agree that
this Award is granted under and subject to the terms and conditions of the Plan
and this Award Agreement, and that this Award is granted for no consideration
other than the Participant’s services. 
The Participant acknowledges that he or she has reviewed the Plan and
this Award Agreement in their entirety and has had an opportunity to obtain the
advice of counsel and a qualified tax advisor prior to executing this Award
Agreement.  The Participant hereby agrees
to comply with the terms and conditions of the Plan and this Award Agreement
and accepts as binding, conclusive and final all decisions or interpretations
of the Board upon any questions relating to the Plan and this Award Agreement.

 

The Participant indicates acceptance of this Award,
subject to the terms and conditions set forth in the Plan and the Award
Agreement, by signing this Grant Notice and returning it to the undersigned
representative of Bunge no later than             ,
2005.  If a signed copy of this Grant
Notice is not received by such date, this Award shall be void and of no force
and effect.

 

	
  BUNGE LIMITED

  	
  PARTICIPANT

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:

  	
  Flávio Sá Carvalho

  	
  [NAME]

  
	
  Title:

  	
  Chief Personnel Officer

  	
   

  
							

 

 

BUNGE
LIMITED

EQUITY
INCENTIVE PLAN

 

AWARD
AGREEMENT

 

– Terms and
Conditions Applicable to Performance-Based Restricted Stock Units –

 

1.                                      Grant. 
Subject to the terms and conditions of the Plan and this Award
Agreement, the Company has elected to grant the Participant an Award of
Performance-Based Restricted Stock Units as of the Date of Grant.  Each Performance-Based Restricted Stock Unit
shall entitle the Participant to receive the value of one Share, subject to the
Participant’s satisfaction of the terms and conditions of the Plan and this
Award Agreement.

 

2.                                      Vesting
of Performance-Based Restricted Stock Units.  

 

(a)                                  Vesting Date;
Performance Level.  Subject to the
other terms and conditions of the Plan and this Award Agreement, the Award
shall vest and become nonforfeitable based upon the cumulative operating profit
(“Cumulative Operating
Profit”) of Bunge for the three consecutive fiscal years ending
prior to the Vesting Date.  The portion
of the Award that shall vest as of the Vesting Date shall be determined based
upon the Cumulative Operating Profit achieved (with partial Shares rounded down
so that only whole Shares shall vest) in the manner set forth in the table
below (the “Vesting
Table”).

 

	
  Performance Level

  	
   

  	
  Cumulative

  Operating Profit

  For the Years 2005, 2006 and 2007

  	
   

  	
  % Vesting

  
	
  Below Threshold

  	
   

  	
  Less than U.S. $[   ]

  	
   

  	
  0%

  
	
  Threshold

  	
   

  	
  U.S. $[   ]

  	
   

  	
  50% of the Award

  
	
  Target

  	
   

  	
  U.S. $[   ]

  	
   

  	
  100% of the Award

  
	
  Maximum

  	
   

  	
  U.S. $[   ]

  	
   

  	
  200% of the Award

  

 

The Cumulative Operating Profit amount shall be
determined in good faith by the Committee as soon as practicable following the
end of fiscal year 2007.  Such
determination shall be final and binding on the Participant and the
Company.  In the event that the
Cumulative Operating Profit is between performance levels, the portion of the
Award that will become vested shall be interpolated by the Committee, and the
Participant shall be advised by the Committee in writing as to the portion of
the Award that vests as of the Vesting Date. 
Any such determination by the Committee shall be final and binding on
the Participant and the Company.

 

(b)                                 Portion of Award
that Vests on the Vesting Date. 
Except as otherwise provided in Section 3 below, a Participant must
be employed by the Company on the Vesting Date for any portion of the Award to
vest.  The portion of the Award that will
vest on the Vesting Date shall be determined in accordance with the Vesting
Table as follows:

 

2

 

(i)                                     No portion of the Award shall vest, and the
Award shall be immediately forfeited, if the Cumulative Operating Profit is
less than the threshold amount set forth in the Vesting Table.

 

(ii)                                  If the Cumulative Operating Profit equals or
exceeds the threshold amount set forth in the Vesting Table but is less than
the target amount set forth therein, the Participant shall vest in a percentage
of the Target Number of Performance-Based Restricted Stock Units between 50%
and 100% determined proportionally based upon the relationship between the
actual Cumulative Operating Profit and the threshold and target amounts
therefore.

 

(iii)                               If the Cumulative Operating Profit equals the
target amount set forth in the Vesting Table, the Participant shall vest in the
Target Number of Performance-Based Restricted Stock Units.

 

(iv)                              If the Cumulative Operating Profit exceeds
the target amount set forth in the Vesting Table but is less than the maximum
amount set forth therein, the Participant shall vest in a percentage of the
Target Number of Performance-Based Restricted Stock Units between 100% and 200%
determined proportionally based upon the relationship between the actual
Cumulative Operating Profit and the target and maximum amounts therefore.

 

(v)                                 If the Cumulative Operating Profit equals or
exceeds the maximum amount set forth in the Vesting Table, the Participant
shall vest in 200% of the Target Number of Performance-Based Restricted Stock
Units.

 

(vi)                              Any portion of the Award that does not vest
in accordance with the provisions of this Section 2(b) shall be
immediately forfeited.

 

(vii)                           Except as otherwise provided in Section 3
below, in no event shall the Participant vest in more than 200% of the Target
Number of Performance-Based Restricted Stock Units.

 

(c)                                  Payment of Awards.  Payment in settlement of the vested
portion of an Award shall be made as soon as practicable following the Vesting
Date in whole Shares (rounded down to the nearest whole share).  The number of Shares issued to a Participant
shall equal the number of Shares underlying the vested portion of the Award
receivable by such Participant following the Vesting Date.

 

(d)                                 No Rights as
Shareholder.  A
Participant shall have no rights as a shareholder with respect to any Award
until Shares, if any, shall have been issued to the Participant following the
Vesting Date, and except as expressly provided herein or in the Plan, no
adjustment shall be made for dividends or distributions or other rights in
respect of any Share for which the record date is prior to the date on which
the Participant shall become the registered holder of such Shares.

 

(e)                                  Dividend
Equivalent Payments.  Unless the
Committee determines otherwise and subject to Section 2(f) below, if
the Company pays any cash or other dividend or makes any other distribution in
respect of the Shares underlying the Award, the Company shall maintain a
bookkeeping record to which such amount of the dividend or distribution in
respect to such Shares shall be credited, at such time and in such manner as is
determined solely by the Committee, to an account for the Participant and paid
in whole Shares at the time the Award is settled.  Any fractional Shares which become payable at
the time the Award is settled shall be paid in cash.

 

(f)                                    Election to Defer
Performance-Based Restricted Stock Units Prior to Vesting Date.  In accordance with such procedures
established by the Committee from time to time, in its sole discretion, the

 

3

 

Participant may irrevocably elect to defer all or a portion of the
Performance-Based Restricted Stock Units in accordance with the terms of this Section 2(f) (a
“Deferral Election”)
and the terms of the deferred compensation plan (the “Deferred Compensation Plan”)
set forth on a deferral election form that the Company may provide to the
Participant at a later date (the “Deferral Election Form”).  In order to make a Deferral Election, the
Participant must complete and submit the Deferral Election Form in
accordance with the instructions included on such form by a date specified by
the Chief Personnel Officer in his sole discretion.  Such Performance-Based Restricted Stock Units
shall be credited automatically, without any further action on the Participant’s
part, to the Participant’s account under the Deferred Compensation Plan on the
Vesting Date and shall be subject to the terms of the Deferred Compensation
Plan.

 

3.                                      Adjustments.

 

(a)                                  Adjustment to Number of Units.  An
Award of Performance-Based Restricted Stock Units that has vested in accordance
with Section 2(a) above may be adjusted, in the sole discretion of
the Committee, so that the Target Number of Performance-Based Restricted Stock
Units, as set forth on the Grant Notice, represents up to 20% fewer
Performance-Based Restricted Stock Units. 
The Committee shall specify the procedures applicable to implementing
the provisions of this Section 3(a). 
The consent of the Participant shall not be required for any action to
be taken by the Committee under this Section 3(a).

 

(b)                                  Adjustment to Performance Goals.  The
Committee may adjust the manner in which the threshold, target and maximum
performance goals are defined as set forth above in Section 2 if it
determines that the occurrence of external changes or other unanticipated
business conditions have materially affected the fairness of the goals and have
unduly influenced the Company’s ability to meet them, including without
limitation, events such as material acquisitions, changes in the capital
structure of the Company, and extraordinary accounting changes.

 

4.                                      Termination
of Employment.

 

(a)                                  Termination
of Employment for Cause; Resignation for Any Reason.  In the event that the Participant’s
employment is terminated by the Company for Cause or as a consequence of the
Participant’s resignation for any reason, the Award shall lapse and become void
as of the date of such termination.

 

(b)                                 Termination of
Employment for Any Other Reason.  In
the event that the Participant’s employment terminates for any reason, other
than by the Company for Cause or the Participant’s resignation for any reason, the
Award shall vest on a pro rata basis from the Date of Grant until the date of
the Participant’s termination of employment. 
The settlement of the vested portion of the Award shall be based upon
the achievement of the Cumulative Operating Profit of Bunge measured as of the
last day of the fiscal quarter immediately preceding the Participant’s
termination of employment.  The Award
shall be settled in accordance with Section 2(c) as soon as practicable
following the Participant’s termination of employment, subject to the
restrictions imposed by Section 409A of the Internal Revenue Code of 1986,
as amended, (the “Code”)
and any regulations, rulings and other regulatory guidance issued thereunder; provided, however,
that, in the event of the Participant’s termination of employment as described
in this Section 4(b) prior to the first anniversary of the Date of
Grant, the entire Award shall be forfeited as of the date of such termination
without any payment.

 

5.                                      General
Terms.

 

(a)                                  Transferability.  The
Award is not transferable by the Participant, except by will or by the laws of
descent and distribution or pursuant to a domestic relations order, if
applicable.

 

4

 

(b)                                 Award Not a Service Contract. 
Neither this Award Agreement nor the Award granted hereunder is an
employment or service contract, and nothing in this Award Agreement shall be
deemed to create in any way whatsoever any obligation on the part of the
Participant to continue in the employ of the Company, or of the Company to
continue the Participant’s employment. 
In addition, nothing in this Award Agreement shall obligate the Company
or shareholders, the Board, officers or employees of Bunge or any other entity
constituting the Company to continue any relationship that the Participant
might have as a director, advisor, employee or consultant for the Company.

 

(c)                                  Withholding Obligations.  The
Company shall be entitled to require the Participant, prior to delivery of any
Shares, to remit to the Company an amount sufficient to satisfy any U.S.
federal, state, local and/or foreign income tax, social tax or other applicable
payroll tax withholding requirements.  The
Company may, in its sole discretion, permit the Participant, after the delivery
of Shares to the Participant, to satisfy U.S. federal, state, local and/or
foreign income tax, social tax or other applicable payroll taxes by directing
the Company to repurchase Shares that were issued to such Participant in
accordance with all applicable laws and pursuant to any such rules as the
Committee may establish from time to time.

 

(d)                                 Restrictive Covenants; Cooperation
Obligations.

 

(i)                                     Confidentiality.  The
Participant understands and acknowledges that in the course of his or her
employment, the Participant shall have access to and shall learn information
proprietary to Bunge, its parent companies and subsidiaries (individually and
as a group, the “Bunge
Group”) that concerns the technological innovations, operation
and methodology of the Bunge Group, including, without limitation, business
plans, financial information, protocols, proposals, manuals, clinical
procedures and guidelines, scientific data, computer source codes, programs,
software, know-how and specifications, copyrights, trade secrets, market
information, Developments (as hereinafter defined), data and customer
information (collectively, “Proprietary Information”). “Developments” shall
mean all data, discoveries, findings, reports, designs, inventions,
improvements, methods, practices, techniques, developments, programs, concepts
and ideas, whether or not patentable, relating to the present or planned
activities, or the products and services of the Bunge Group.  The Participant hereby agrees that during the
period beginning on the Date of Grant and continuing in perpetuity thereafter,
the Participant shall keep confidential and shall not disclose any such
Proprietary Information to any third party, except as required to fulfill his
or her duties in connection with employment by the Bunge Group, and shall not
misuse, misappropriate or exploit such Proprietary Information in any way.  The restrictions contained herein shall not
apply to any information which (i) was already available to the public at
the time of disclosure, or subsequently became available to the public,
otherwise than by breach of this Award Agreement or (ii) the disclosure of
which was required by order of any court or administrative agency.  Upon any termination of the Participant’s
employment with the Bunge Group, the Participant hereby agrees to return
immediately to the Bunge Group all Proprietary Information and copies thereof
in the possession of the Participant.

 

(ii)                                  No Competing Employment. 
During the period beginning on the Date of Grant and continuing until
the end of the twelfth month following the Participant’s termination of
employment for any reason with the Bunge Group (such period to be referred to
as the “Restricted
Period”), the Participant shall not, without the prior written
consent of Bunge, directly or indirectly, whether as owner, consultant,
employee, partner, venturer, or agent, through stock ownership, investment of
capital, lending of money or property, rendering of services, or otherwise
(except ownership of less than 5% of the number of shares outstanding of any
securities which are publicly traded), (A) compete with the Bunge Group,
or (B) provide services to, whether as an employee or consultant, or own,
manage, operate, control, participate in or be connected with (as a
shareholder, partner or similar owner) any corporation, firm, partnership,
joint venture, sole proprietorship or

 

5

 

other
entity which competes with the Bunge Group, except for the aforementioned
ownership of less than 5% of any publicly traded securities.  The Restricted Period shall be extended by
the length of any period during which the Participant is in breach of any of
the terms of this Section 5(d)(ii).

 

(iii)                               Restrictions on
Solicitation.  During the Restricted Period, and except as
required pursuant to the Participant’s duties to the Bunge Group in connection
with the employment relationship, the Participant shall not, directly or
indirectly:  (i) solicit or contact
any customer of the Bunge Group (or any other entity that the Participant knows
is a potential customer with respect to specific products of the Bunge Group
and with which the Participant has had contact during the period of his or her
employment with the Bunge Group) for any commercial pursuit that to the
knowledge of the Participant is in competition with the Bunge Group or that to
the knowledge of the Participant is contemplated from time to time during the
period of his or her employment with the Bunge Group by any corresponding
business plan; (ii) take away or interfere or attempt to interfere with
any custom, trade, business or patronage of the Bunge Group, or induce, or
attempt to induce, any employees, agents or consultants of or to the Bunge
Group to do anything from which the Participant is restricted by reason of this
Section 5(d); or (iii) offer or aid others to offer employment to
employees of the Bunge Group, or interfere or attempt to interfere with any
employees of the Bunge Group.  The
Restricted Period shall be extended by the length of any period during which
the Participant is in breach of any of the terms of this Section 5(d)(iii).

 

(iv)                              Application of Covenants.  The
activities described in this Section 5(d) shall be prohibited
regardless of whether undertaken by the Participant in an individual or
representative capacity, and regardless of whether performed for the
Participant’s own account or for the account of any other individual,
partnership, firm, corporation or other business organization (other than
Bunge).

 

(v)                                 Injunctive Relief. 
Without limiting the remedies available to Bunge, the Participant
acknowledges that a breach of any of the covenants contained in this Section 5(d) may
result in irreparable injury to Bunge for which there is no adequate remedy at
law, that it shall not be possible to measure damages for such injuries
precisely and that, in the event of such a breach or threat thereof, Bunge
shall be entitled to seek a temporary restraining order or a preliminary or
permanent injunction restraining the Participant from engaging in activities
prohibited by this Section 5(d) or such other relief as may be
required to specifically enforce any of the covenants in this Section 5(d).

 

(e)                                  Plan Document
Controls.  In the event of any conflict between the provisions of this Award
Agreement and those of the Plan, the provisions of the Plan shall control.

 

(f)                                    Applicable Law.  This
Award Agreement shall be governed by and subject to the laws of the State of
New York and to all applicable laws and to the approvals by any governmental or
regulatory agency as may be required.

 

(g)                                 Validity.  The invalidity or
unenforceability of any provision of this Award Agreement shall not affect the
validity or enforceability of any other provision of this Award Agreement,
which shall remain in full force and effect. 
The parties intend that any offending provision shall be enforced to the
fullest extent to which it is enforceable, that any unenforceable portion
thereof be severed from this Award Agreement, and that this Award Agreement, as
modified to sever any such unenforceable portion, be enforced to the fullest
extent permitted by law.  In the event
that all or any portion of this Award is forfeited pursuant to the terms of the
Plan or this Award Agreement, such forfeiture shall be automatic and shall not
require any further action by the Participant or the Company.

 

6

 

(h)                                 Notices.  All notices and other
communications provided for herein shall be in writing and shall be delivered
by hand, telecopy or facsimile transmission or sent by certified or registered
mail, return receipt requested, postage prepaid, addressed, if to the
Participant, to the attention of the Participant at the mailing address set
forth on the Grant Notice (or to such other address as the Participant shall
have specified to Bunge in writing) and, if to Bunge, to it at its principal
offices which are currently located at 50 Main Street, 6th Floor, White Plains,
New York 10606, attention Chief Personnel Officer.  All such notices shall be conclusively deemed
to be received and shall be effective, (i) if delivered by hand, upon
receipt, (ii) if sent by telecopy or facsimile transmission, upon
confirmation of receipt by the sender of such transmission or (iii) if
sent by registered or certified mail, on the fifth day after the day on which
such notice is mailed.

 

(i)                                     Waiver.  The waiver by either party of
compliance with any provision of this Award Agreement by the other party shall
not operate or be construed as a waiver of any other provision of this Award
Agreement, or of any subsequent breach of such party of a provision of this
Award Agreement.

 

(j)                                     Committee Decisions Final.  Any
dispute or disagreement that arises under, or as a result of, or pursuant to,
or in connection with, the interpretation or construction of the terms of this
Award Agreement or the Award granted hereunder shall be determined by the
Committee.  Any interpretation by the
Committee of the terms of the Award shall be final and binding on all persons
affected thereby.

 

(k)                                  Amendments.  The Committee shall have the
power to alter or amend the terms of this Award Agreement as set forth herein
from time to time, in any manner consistent with the provisions of Section 14
of the Plan, and any alteration or amendment of the terms of the Award by the
Committee shall, upon adoption, become and be binding on all persons affected
thereby without requirement for consent or other action with respect thereto by
any such person; provided, however, that, except as contemplated by Section 14
of the Plan and Section 3 hereof, no such alteration or amendment may,
without the consent of the Participant, adversely affect the rights of the
Participant under this Award.  The
Committee shall give written notice to the Participant of any such alteration
or amendment as promptly as practicable after the adoption thereof.  Notwithstanding any provision herein to the
contrary, the Board shall have the broad authority to amend this Award to take
into account changes in applicable tax laws, securities laws, accounting rules and
other applicable state and Federal laws, including without limitation,
any amendments made pursuant to Section 409A of the Code and any
regulations, rulings and other regulatory guidance issued thereunder.

 

(l)                                     Entire Agreement; Headings.  This
Award Agreement and the other related documents expressly referred to herein
set forth the entire agreement and understanding between the parties
hereto.  The headings of sections and
subsections herein are included solely for convenience of reference and shall
not affect the meaning of any of the provisions of this Award Agreement.

 

(m)                               Counterparts.  The
Grant Notice to this Award Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original but all of which
together shall constitute one and the same instrument.

 

(n)                                 Market Standoff Agreement.  The
Participant, if requested by Bunge and an underwriter of Common Stock (or other
securities) of Bunge, agrees not to sell or otherwise transfer or dispose of
any Common Stock (or other securities) of Bunge held by the Participant during
the period requested by the underwriter managing any public offering of Common
Stock (or other securities) of Bunge following the effective date of a
registration statement of Bunge filed under the U.S. Securities Act of 1933, as
amended, provided that all
similarly situated officers and directors of Bunge are required to enter into
similar agreements.  Such agreement shall
be in writing in a form satisfactory to Bunge and such underwriter.  Bunge may impose stop-transfer instructions
with respect to the shares (or other securities) subject to the foregoing
restriction until the end of such period.

 

7

 

(o)                                 Share Ownership Guidelines.  The
Participant, if subject to Bunge’s
share ownership guidelines, agrees to comply with the conditions and
restrictions imposed by such guidelines with respect to any Shares received in
connection with the settlement of an Award.

 

(p)                                 Securities Laws Compliance.  No
Shares shall be issued or transferred under this Award Agreement unless the
Committee determines that such issue or transfer is in compliance with all
applicable U.S. federal, state and/or foreign securities laws and regulations,
including without limitation, Bermuda laws and regulations.

 

(q)                                 Change in Control.  Upon
a Change in Control, the Participant’s Performance-Based Restricted Stock Units
shall be subject to Section 13(b) of the Plan.

 

8

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