Document:

EX-10.26

 

Exhibit 10.26

Form of Stock Only Stock Appreciation Rights Agreement

	 	 	 	 	 
	To:

	 	«fullname»
	 	Date:
	 
	 	 	 	 
	Subject:	 	The Andersons, Inc.
2007 Stock Only Stock Appreciation Rights Letter of Agreement

You have been selected to receive a 2007 Stock Only Stock Appreciation Rights Grant (the “SOSARs”)
under the Long Term Performance Compensation Plan (the “Plan”). This Letter of Agreement (the
“Agreement”) will document the key provisions relating to the SOSARs granted to you effective as of
March 1, 2007.

Before executing this Agreement by signing the Attached Acknowledgment of Receipt (the
“Acknowledgment”), please read the information provided below regarding the specific provisions of
your 2007 SOSARs. You are also encouraged to review the summary question/answer guide that
provides detailed information and illustrations about how the Plan operates. There is also a
formal Plan document that controls the actual interpretation and operation of the Plan. A copy of
the Plan document is available upon your request from the Human Resources Department.

When you are satisfied that you understand the terms of the SOSARs, please execute the
Agreement by signing the attached Acknowledgment of Receipt form and returning it to Teresa Scott
in the Human Resources Department by Thursday, March 15, 2007. Remember to keep a copy for
your files.

	 	1.	 	Grant of SOSARs: The Andersons, Inc. (the “Company”) hereby grants to you
SOSARs with respect to                      common shares at a Grant Price of $42.30 per share:
subject to the terms and conditions of the Plan and this Agreement.
	 
	 	2.	 	Restrictions on Exercise of SOSARs: One-hundred percent (100%) of the SOSAR shares shall become exercisable after the end of the third year of this Agreement
(March 1, 2010), provided your SOSARs have not terminated (see Termination and
Forfeiture of Rights on page 2).
	 
	 	3.	 	Exercise of SOSARs: The SOSARs shall be exercised by written notice to the
Company or designated individual, at the Company’s principal place of business. The
notice must be accompanied by the payment of federal, state, and local tax
withholding required to be made by the Company (if any) as a result of the exercise of
such shares. You may elect to pay for your federal, state, and local tax withholding
by having the Company withhold the number of shares rounded up to the nearest whole
share based on Fair Market Value on the date of exercise. The value of any fractional
share that exceeds the amount of taxes due shall be added to your federal tax
withholding.
	 
	 	4.	 	Payment of SOSARs: Upon exercise of the SOSARs, you shall be entitled to
receive payment from the Company in an amount equal to (a) the Fair Market Value at
the exercise date minus (b) the Grant Price; multiplied by the number of shares with

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	 	 	 	respect to which the SOSAR is exercised. The Company shall deliver to you the value in
common shares rounded down to the nearest whole share with fractional shares added to
your federal tax withholding.
	 
	 	5.	 	Termination and Forfeiture of Rights: Unless exercised, your rights to
vested SOSARs will terminate upon the first to occur of the following dates:

	 	(a)	 	the expiration of twelve (12) months after the date of your death,
permanent disability, retirement, or termination of employment other than for
Cause; or
	 
	 	(b)	 	the expiration of five (5) years and one (1) month from the effective
date of the grant of this SOSAR (April 1, 2012); or
	 
	 	(c)	 	the effective date of termination of employment for Cause.

	 	 	 	If unvested, your SOSARs shall become 100% vested and exercisable upon your date of
termination resulting from death, permanent disability, retirement, or termination of
employment due to the sale of your business unit. Your rights to exercise SOSARs that
become vested due to one of the aforementioned events shall expire upon the earlier of
the agreement expiration date or one (1) year from your date of termination.
	 
	 	6.	 	Rights Prior to Exercise of SOSARs: This SOSAR shall not be transferable by
you other than by will or by the laws of descent and distribution and may be
exercised, during your lifetime, only by you except that the right to exercise a SOSAR
may be transferred in accordance with the limitations set forth in the Plan. You
shall have no rights as a shareholder with respect to the SOSAR shares until payment
of related tax withholding, and delivery of such shares as herein provided.
	 
	 	7.	 	Other Acknowledgments: Participant acknowledges that the Compensation
Committee may adopt and/or change from time to time such rules and regulations as it
deems proper to administer the Plan.
	 
	 	8.	 	Binding Effect: This Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective heirs, executors, administrators,
successors and assigns.

If you have any questions related to the tax consequences of exercising your SOSARs, please contact
Phil Blandford at 419-891-6323 in Corporate Accounting. General information is available by
contacting Steve DeDonato at 419-891-6369 in Human Resources.

Thank You,
 

Charles E. Gallagher

Vice President, Human Resources

The Andersons, Inc.

34EX-10.27

 

Exhibit 10.27

Form of Performance Share Award Agreement

	 	 	 	 	 
	To:

	 	 	 	Date:
	 
	 	 	 	 
	Subject:	 	The Andersons, Inc.
2007 Performance Share Unit Award Letter of Agreement

You have been selected to receive a Performance Share Unit (the “PSUs”) award subject to the terms
and conditions of the Long Term Performance Compensation Plan (the “Plan”) and this Letter of
Agreement (the “Agreement”). This Agreement will document the key provisions relating to the PSUs
awarded to you as of March 1, 2007.

Before executing this Agreement by signing the attached Acknowledgment of Receipt (the
“Acknowledgment”), please read the information provided below regarding the specific provisions of
your 2007 PSUs. A copy of the Plan is available upon request from the Human Resources Department.
By signing the Acknowledgment, you declare having read this Agreement and agree to be bound by all
the terms and conditions contained herein. When you are satisfied that you understand the terms
and conditions of the PSU award, please sign the attached Acknowledgment and, return to Teresa
Scott or Steve DeDonato in the Human Resources Department by Thursday, March 15, 2007. Remember to
keep a copy for your files.

	 	1.	 	Grant of Performance Share Units: Subject to the terms and conditions of the Plan
and this Agreement, The Andersons, Inc. (the “Company”) hereby awards to you ___PSUs.
Each PSU shall be equivalent to one Common Share of the Company.
	 
	 	2.	 	Performance Period: The Performance Period for the PSUs awarded shall be the three
year period beginning January 1, 2007 and ending December 31, 2009.
	 
	 	3.	 	Performance Schedule and Vesting of PSUs: Awards shall vest as of the last day of
the Performance Period in accordance with the following Performance Schedule based on the
Company’s three-year cumulative fully diluted earnings per share (“EPS”) computed under
Generally Accepted Accounting Principles (GAAP) during the Performance Period. The
Compensation Committee of the Board of Directors reserves the right to adjust the EPS
presented in the annual report for extraordinary transactions which impact EPS to ensure
the pay for performance relationship. No PSUs will be considered vested and earned for
payment if the Company’s three-year cumulative EPS during the Performance Period is less
than $6.81.

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	 	Annual EPS Growth	 	2007	 	2008	 	2009	 	Cumulative	 	% Units
	Rate	 	Year 1	 	Year 2	 	Year 3	 	EPS Growth	 	Vested *
	 	14%	 	$2.44	 	$2.78	 	$3.17	 	$8.39	 	100%
	 	13%	 	$2.42	 	$2.73	 	$3.09	 	$8.24	 	93%
	 	12%	 	$2.40	 	$2.68	 	$3.01	 	$8.09	 	86%
	 	11%	 	$2.38	 	$2.64	 	$2.93	 	$7.94	 	79%
	 	10%	 	$2.35	 	$2.59	 	$2.85	 	$7.79	 	71%
	 	9%	 	$2.33	 	$2.54	 	$2.77	 	$7.65	 	64%
	 	8%	 	$2.31	 	$2.50	 	$2.70	 	$7.50	 	57%
	 	7%	 	$2.29	 	$2.45	 	$2.62	 	$7.36	 	50%
	 	6%	 	$2.27	 	$2.40	 	$2.55	 	$7.22	 	40%
	 	5%	 	$2.25	 	$2.36	 	$2.48	 	$7.08	 	30%
	 	4%	 	$2.23	 	$2.31	 	$2.41	 	$6.95	 	20%
	 	3%	 	$2.20	 	$2.27	 	$2.34	 	$6.81	 	10%
	 	 
	 	0%	 	$2.14	 	$2.14	 	$2.14	 	$6.42	 	0%

			
	*	 	The target annual EPS growth rate is 7%. At a 7% cumulative
EPS growth rate 100% of competitive target long-term compensation is achieved,
which is equal to 50% of the PSUs granted to you under this agreement. The “%
Units Vested” at a 14% cumulative EPS growth rate achieves 200% of competitive
target long-term compensation, which is equal to 100% of the PSUs granted to
you under this agreement.

	 	3.	 	Performance Schedule and Vesting of PSUs (continued)
	 
	 	 	 	You must be actively employed by the Company as of the end of the Performance Period to be
eligible to vest in and receive any payment of your PSUs except as noted in paragraph 7
below. Actual vested percentage rates will be interpolated from the above Performance
Schedule using the actual three-year cumulative fully diluted cumulative EPS achieved at
the end of the Performance Period.
	 
	 	4.	 	Rights as a Shareholder: You shall have no rights as a shareholder with respect to
the Common Shares subject to the PSUs awarded to you during the Performance Period
including the right to receive dividends or to vote the Common Shares subject to the PSUs.
	 
	 	5.	 	Equivalent Dividends: If any dividends are paid with respect to Commons Shares of
the Company during the Performance Period, additional PSUs will be awarded to you as of
the last day of the Performance Period. The amount of additional PSUs will be computed
based on the cumulative per share dividend rate actually paid on Common Shares during the
Performance Period and the share price on the last day of the Performance Period.
Additional PSUs awarded to you, if any, shall be subject to the terms and conditions of
the Plan and this Agreement and will vest in accordance with the Performance Schedule
defined in this Agreement.
	 
	 	6.	 	Payment of Earned PSUs: Vested PSUs rounded up to the nearest whole unit shall be
delivered to you in the form of Common Shares no later than 75 days following the
conclusion of the Performance Period. PSUs which do not vest as of the last day of the
Performance Period will be forfeited. In that regard, you agree that you will comply with
(or provide adequate assurance as to future compliance with) all applicable securities
laws. In addition, the Company must receive from you payment or a written request for
arrangement of terms for payment, including share withholding, of all federal, state or
local taxes of any kind required to be withheld with respect to the vesting of Shares as
condition precedent to the delivery of the Shares. Shares are subject to tax withholding
based on the market value of the Shares on the date of vesting (i.e., closing price on the
business day prior to the date of vesting) at required withholding tax rates. Withholding
taxes due, if not satisfied in shares, must be paid in full within thirty days of the
vesting date.
	 
	 	7.	 	Termination and Forfeiture of PSUs: Your right to receive unvested PSUs shall
terminate in whole and forfeit upon your termination of employment with the Company or its
subsidiaries for

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any reason, except in the event of your death, Permanent Disability,
Retirement, or Termination without Cause as a result of a Sale of your Business Unit. If
your termination with the Company meets one of the listed exceptions, then your unvested
PSUs will remain subject to the Performance Schedule during the Performance Period
provided in this Agreement and the number of your PSUs subject to vesting at the end of
the Performance Period will be reduced proportionate to the number of months rounded to
the nearest whole month you were actively employed during the Performance Period.

	 	8.	 	Other Acknowledgments: You acknowledge that the Compensation Committee may adopt
and/or change from time to time such rules and regulations as it deems proper to
administer the Plan.
	 
	 	9.	 	Binding Effect: This Agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective heirs, executors, administrators, successors and
assigns.

If you have any questions related to the tax consequences of your stock award, please contact Phil
Blandford at 419-891-6323 in Corporate Accounting. General information is available by contacting
Steve DeDonato at 419-891-6369 in Human Resources.

Thank You,

Charles E. Gallagher

Vice President, Human Resources

The Andersons, Inc.

37

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