THE WHITEWAVE FOODS COMPANY FOR BELGIAN EXECUTIVE OFFICERS
EXHIBIT 10.6
THE WHITEWAVE FOODS COMPANY
2012 STOCK INCENTIVE PLAN
FOR BELGIAN EXECUTIVE OFFICERS
THIS AWARD AGREEMENT, including any special terms and conditions for your country set forth in the appendix attached hereto (the “Appendix”), is effective as of the date indicated on the Notice of ▇▇▇▇▇ delivered herewith (the “Notice of Grant”) (together, the “Agreement”), and is made and entered into by and between The WhiteWave Foods Company, a Delaware corporation (the “Company”), and the individual named on the Notice of Grant (“you”).
WITNESSETH:
WHEREAS, The WhiteWave Foods Company 2012 Stock Incentive Plan (the “Plan”) provides for the grant of Performance Shares, which are referred to in this Agreement as “Performance Stock Units,” and other forms of stock-based compensation to certain Employees and non-employee Directors of the Company and its Subsidiaries;
WHEREAS, during your employment, and based upon your position with the Company and/or its Subsidiaries, you have acquired and will continue to acquire, by reason of your position, substantial knowledge of the operations and practices of the business of the Company;
WHEREAS, the Company desires to assure that, to the extent and for the period of your employment and for a reasonable period thereafter, it may maintain the confidentiality of its trade secrets and proprietary information, and protect goodwill and other legitimate business interests, each of which could be compromised if any competitive business were to secure your services;
WHEREAS, the Performance Stock Units and other Awards provided for under the Plan are intended to comply with the requirements of Rule 16b-3 under the Securities Exchange Act of 1934, as amended;
WHEREAS, the Performance Stock Units are intended to constitute qualified performance-based compensation for purposes of Section 162(m) of the Code; and
WHEREAS, the Committee has awarded to you the Performance Stock Units described in this Agreement and in the Notice of Grant.
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements herein contained, and as an inducement to you to continue as an employee of the Company (or its Subsidiaries), you and the Company hereby agree as follows:
Capitalized terms used and not otherwise defined in this Agreement shall have the meanings set forth in the Plan.
1. Grant of Award. The Company hereby grants to you and you hereby accept, subject to the terms and conditions set forth in the Plan and in this Agreement, the Performance Stock Units shown on the Notice of Grant, effective as of the date indicated on the Notice of Grant (the “Date of Grant”). Each Performance Stock Unit represents the right to receive one share of the Company’s Stock, subject to the terms and conditions set forth in the Plan and in this Agreement. The shares of Stock that are issuable upon vesting of the Performance Stock Units granted to you pursuant to this Agreement are referred to in this Agreement as the “Shares.” You must accept this Performance Share Award in the manner designated by the Company in the Notice of Grant (e.g., electronic acceptance) not later than 60 days after the Date of Grant, or electronic notification of such Grant, whichever occurs later, or this Award will be rendered void and without effect. Subject to the provisions of Sections 2(e), 2(f), 3(b) and 8 below, this Award of Performance Stock Units is irrevocable and is intended to conform in all respects with the Plan.
2. Performance Vesting.
(a) Performance Periods. Except as otherwise provided in the Plan or in this Section 2, your Performance Stock Units will be subject to three separate performance periods (each, a “Performance Period”), as follows:
Performance Period | Percent of Target Performance Stock Units | |
Beginning January 1, 2015 and ending December 31, 2015 | 33 1/3% | |
Beginning January 1, 2015 and ending December 31, 2016 | 33 1/3% | |
Beginning January 1, 2015 and ending December 31, 2017 | 33 1/3% | |
(b) Vesting Upon Performance and Continued Service. The number of Performance Stock Units earned and vested with respect to each Performance Period shall be determined based on the extent to which Company attains the performance criteria set forth in Exhibit A hereto (the “Performance Criteria”) with respect to such Performance Period. Except as otherwise provided in Section 2(c) or 2(d), if (i) the Committee certifies in writing the extent to which the Company has attained the applicable Performance Criteria in such Performance Period and (ii) you remain in continuous Service through the date on which the Committee certifies such performance (the “Certification Date”), you will become vested in the number of Performance Stock Units earned pursuant to Exhibit A as of the Certification Date.
(c) Vesting Upon Termination of Service.
(i) Involuntary Termination Without Cause. Unless otherwise determined by the Committee or except as provided in an agreement between you and your Employer, and subject to Section 2(d) of this Agreement and Section 9(b) of the Plan, if the Company terminates your Service for a reason other than Cause (as defined in Section 3(b)) or Disability (as defined in Section 2(c)(ii)) on or before the final Certification Date for this Award, any remaining portions of the Performance Periods shall continue through the last day thereof, and you shall become vested as of each Certification Date in a prorated portion of the Award equal to the number of Performance Stock Units earned with respect to such Performance Period based on the actual performance during such Performance Period multiplied by a fraction, the numerator of which shall be the number of full months in the Performance Period during which you were in continuous Service with the Company and the denominator of which shall be the total number of months in such Performance Period.
(ii) Termination due to Disability or Retirement. Unless otherwise determined by the Committee, or except as provided in an agreement between you and your Employer, if your Service is terminated by the Company due to your Disability or you terminate your Service due to Retirement, in either case on or before the final Certification Date for this Award, any remaining portions of the Performance Periods shall continue through the last day thereof, and you shall become vested as of each Certification Date in the total number of Performance Stock Units earned with respect to such Performance Period based on the actual performance during the Performance Period. For purposes of this Agreement, “Retirement” shall be defined as your retirement from employment or other service to the Company or any Subsidiary after you reach (1) age fifty-five (55), so long as you shall also have completed at least ten (10) years of continuous service immediately prior to your retirement, or (2) age sixty-five (65), and “Disability” shall be defined as your permanent and total disability (within the meaning of Section 22(e)(3) of the Code); and “Service” shall be defined as your active, continuous full-time employment with the Company or any Subsidiary.
(iii) Termination due to Death. Unless otherwise determined by the Committee, or except as provided in an agreement between you and your Employer, if your Service terminates by reason of death on or before the final Certification Date for this Award, you shall become vested as of the date of your death in the target number of Performance Stock Units; provided that if your death occurs after the end of a Performance Period, you shall become vested in the number of Performance Stock Units earned based on actual performance during such Performance Period.
(d) Vesting Upon a Change in Control.
(i) Satisfaction of Performance Goals. In the event of a Change in Control prior to the end of a Performance Period, the Performance Period shall end as of the date of the Change in Control and the Performance Criteria shall be deemed to have been satisfied at the greater of (A) 100% of the target level, with the payout pro-rated based on the time elapsed in the performance period through the date of the change in control, or (B) the actual level of performance as of the date of the Change in Control, as determined by the Committee, as constituted immediately prior to the Change in Control, without proration.
(ii) Settlement of Award Not Assumed. In the event of a Change in Control prior to the end of a Performance Period pursuant to which this Award is not assumed or continued by the surviving or acquiring corporation in such Change in Control (as determined by the Board or Committee, with appropriate adjustments to the number and kind of shares, in each case, that preserve the value of the Performance Stock Units and other material terms and conditions of this Award as in effect immediately prior to the Change in Control), the Performance Stock Units shall vest as of the date of the Change in Control, based on the performance level determined in accordance with clause (i) above and shall be settled within 60 days following the Change in Control.
(iii) Settlement of Award Assumed. In the event of a Change in Control prior to the end of a Performance Period pursuant to which this Award is assumed or continued by the surviving or acquiring corporation in such Change in Control (as determined by the Board or Committee, with appropriate adjustments to the number and kind of shares, in each case, that preserve the value of the Performance Stock Units and other material terms and conditions of this Award as in effect immediately prior to the Change in Control) and either (A) you remain in continuous, active Service through the end of such Performance Period, (B) the Company terminates your Service without Cause or your Service terminates due to death, Disability or Retirement following such Change in Control, then in any such case, the Performance Stock Units shall vest based on the performance level determined in accordance with clause (i) above as of the earlier to occur of (1) the end of the Performance Period or (2) the date of your termination of Service (which date shall be determined according to Section 7(j) below). If, following a Change in Control, your Service terminates for a reason other than as set forth in this clause (iii), the Performance Stock Units shall be immediately forfeited and cancelled by the Company.
(e) Forfeiture of Unvested Performance Stock Units. Except as provided in Section 2(c) or 2(d)(iii) above, or as otherwise determined by the Committee, if your Service terminates for any reason during a Performance Period, any Performance Stock Units will be forfeited and canceled as of the date of such termination of Service (which date shall be determined according to Section 7(j) below). Notwithstanding anything to the contrary in this Section 2, your rights with respect to unvested Performance Stock Units shall in all events be immediately forfeited and canceled as of the date of your termination of Service for Cause as defined in Section 3(b) below.
(f) Repayment. You agree and acknowledge that this Agreement is subject to any policies that the Committee may adopt from time to time with respect to the repayment to the Company of any benefit received hereunder, including “clawback” or set-off policies.
(g) Retirement. Notwithstanding anything to the contrary herein, if the Company receives an opinion of counsel that there has been a legal judgment and/or legal development in your country that likely would result in any favorable treatment of the Performance Stock Units at Retirement under the Plan or this Agreement being deemed unlawful or discriminatory, such favorable treatment shall not apply and the Performance Stock Units shall be treated as set forth in the remaining provisions of this Agreement.
3. Distribution of Shares.
(a) Distribution Upon Vesting. The Company will distribute to you (or to your estate in the event of your Death) the Shares represented by the Performance Stock Units that are earned and vested in accordance with Section 2 and Exhibit A as soon as administratively practicable, but not more than 60 days, after the date on which the Performance Stock Units become vested. Notwithstanding the immediately preceding sentence, any
Performance Stock Units that become vested on account of your Retirement following a Change in Control shall be distributed to you as soon as administratively practicable (but in no event more than 90 days) following the date of your separation from Service, except that, if you are a “specified employee” (within the meaning of Section 409A of the Code), such distribution shall be made on the day following the six month anniversary of your separation from Service.
(b) Forfeiture of Shares; Termination for Cause. Notwithstanding anything to the contrary herein, if your Service to the Company or any of its Subsidiaries is terminated for Cause (as defined below), or if your Service is terminated for any reason, voluntarily or involuntarily, and before the Certification Date it is discovered that you engaged in conduct that would have justified termination for Cause (as defined below), your rights in your unvested Performance Stock Units will be immediately forfeited and canceled as of such termination date (which shall be determined according to Section 7(j) hereof). For purposes of this Agreement, “Cause” means your (i) willful failure to perform substantially your duties; (ii) willful or serious misconduct that has caused, or could reasonably be expected to result in, material injury to the business or reputation of an Employer; (iii) conviction of, or entering a plea of guilty or nolo contendere to, a crime constituting a felony (or any similar concept under the laws of your country); (iv) breach of any written covenant or agreement with an Employer, any material written policy of any Employer or any Employer’s code of conduct or code of ethics, or (v) failure to cooperate with an Employer in any internal investigation or administrative, regulatory or judicial proceeding. In addition, your Service shall be deemed to have terminated for Cause if, after your Service has terminated (for a reason other than Cause), facts and circumstances are discovered that would have justified a termination for Cause. Your Performance Stock Units will also be immediately forfeited and canceled in accordance with Section 8 upon your breach of the provisions set forth in Section 8. The determination of whether a termination of Service is for Cause shall be made by the Committee, in its discretion, and such determination shall be final.
(c) Compliance With Law. The Plan, the granting and vesting of the Performance Stock Units, and any obligations of the Company under the Plan, shall be subject to all applicable U.S. federal and state and foreign country laws, rules and regulations, and to such approvals by any regulatory or governmental agency as may be required, and to any rules or regulations of any exchange on which the Stock is listed. The Company, in its discretion, may postpone the vesting of the Performance Stock Units, the issuance or delivery of Stock under this Award or any other action permitted under the Plan to permit the Company, with reasonable diligence, to complete such stock exchange listing or registration or qualification of such Stock or other required action under any U.S. federal or state or foreign country law, rule or regulation and may require you to make such representations and furnish such information as it may consider appropriate in connection with the issuance or delivery of Stock in compliance with applicable laws, rules and regulations. The Company shall not be obligated by virtue of any provision of the Plan to recognize the vesting of the Performance Stock Units or to otherwise sell or issue Stock in violation of any such laws, rules or regulations. Neither the Company nor its directors or officers shall have any obligation or liability to you caused by any postponement of the vesting or settlement of the Performance Stock Units (or Stock issuable thereunder).
4. No Stockholder Rights. Except as set forth in the Plan, neither you nor any person claiming under or through you shall be, or have any of the rights or privileges of, a stockholder of the Company (e.g., you have no right to vote or receive dividends) in respect of the Shares issuable pursuant to this Award unless and until your Shares shall have been issued.
5. Tax Withholding. You acknowledge that, regardless of any action taken by the Company or, if different, your Employer, the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to your participation in the Plan and legally applicable to you (“Tax-Related Items”) is and remains your responsibility and may exceed the amount actually withheld by the Company or the Employer. You further acknowledge that the Company and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Performance Stock Units, including, without limitation, the grant or vesting of the Performance Stock Units, the issuance of Shares pursuant to Performance Stock Units that vested, the subsequent sale of such Shares and the receipt of any dividends; and (2) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Performance Stock Units to reduce or eliminate your liability for Tax-Related Items or achieve any particular
tax result. Further, if you are subject to Tax-Related Items in more than one jurisdiction between the Date of Grant and the date of any relevant taxable or tax withholding event, as applicable, you acknowledge that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.
Prior to any relevant taxable or tax withholding event, as applicable, you agree to make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all Tax-Related Items. In this regard, you hereby authorize the Company or the Employer or their agents to satisfy the obligations with regard to all Tax-Related Items by withholding from your wages or other cash compensation paid to you by the Company and/or the Employer. In the event that the Company, in its discretion, determines that withholding from your wages or other cash compensation is problematic under applicable laws or administratively impractical, by your acceptance of the Performance Stock Units, you authorize the Company and/or the Employer, or their respective agents, to satisfy any withholding obligation for Tax-Related Items by either or both of the following: (i) withholding from the proceeds of the sale of Shares issued pursuant to the Performance Stock Units that are earned and vested, either through a voluntary sale or through a mandatory sale arranged by the Company (on your behalf pursuant to this authorization without further consent); or (ii) retaining the number of Shares whose Fair Market Value equals the amount to be withheld.
Depending on the withholding method, the Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding rates or other applicable withholding rates, including maximum applicable rates, in which case you will receive a refund of any over-withheld amount in cash and will have no entitlement to the Stock equivalent. If the obligation for Tax-Related Items is satisfied by retaining Shares, for tax purposes, you are deemed to have been issued the full number of Shares represented by the Performance Stock Units that vested, notwithstanding that a number of the Shares are retained by the Company solely for the purpose of paying the Tax-Related Items.
Finally, you agree to pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of your participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to issue or distribute the Shares or the proceeds of the sale of Shares, if you fail to comply with your obligations in connection with the Tax-Related Items.
6. Performance Stock Units Not Transferable. The Performance Stock Units granted herein are not transferable except in accordance with the provisions of the Plan.
7. Nature of Grant. In accepting the grant, you acknowledge, understand and agree that:
(a) the Plan is established voluntarily by the Company, is discretionary in nature and may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan;
(b) the grant of the Performance Stock Units is voluntary and occasional and does not create any contractual or other right to receive future grants of Performance Stock Units, or benefits in lieu of Performance Stock Units, even if Performance Stock Units have been granted in the past;
(c) all decisions with respect to future Performance Stock Unit or other grants, if any, will be at the sole discretion of the Company;
(d) the Performance Share Award and your participation in the Plan shall not create a right to employment or be interpreted as forming an employment or service contract with the Company, the Employer or any Subsidiary or Affiliate and shall not interfere with the ability of the Company, the Employer or any Subsidiary or Affiliate, as applicable, to terminate your or Service (if any);
(e) you are voluntarily participating in the Plan;
(f) the Performance Stock Units and the Shares represented by the Performance Stock Units are not intended to replace any pension rights or compensation;
(g) the Performance Stock Units and the Shares represented by the Performance Stock Unit, and the income and value of same, are not part of normal or expected compensation for any purpose including, without limitation, calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments;
(h) the future value of the Shares represented by the Performance Stock Units is unknown, indeterminable and cannot be predicted with certainty and the risk that the value of the Shares represented by the Performance Stock Units diminishes during the vesting period is not covered by the Plan or the Company, either directly or indirectly;
(i) no claim or entitlement to compensation or damages shall arise from forfeiture of the Performance Stock Units resulting from the termination of your Service (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in your country or the terms of your employment contract, if any), and in consideration of the grant of the Performance Stock Units to which you are otherwise not entitled, you irrevocably agree never to institute any claim against the Company, any of its Subsidiaries or Affiliates or the Employer, you waive your ability, if any, to bring any such claim, and you release the Company, its Subsidiaries and Affiliates and the Employer from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, you shall be deemed irrevocably to have agreed not to pursue such claim and agree to execute any and all documents necessary to request dismissal or withdrawal of such claim;
(j) for purposes of the Performance Stock Unit, your Service will be considered terminated as of the date you are no longer actively providing services to the Company or one of its Subsidiaries or Affiliates (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in your country or the terms of your employment contract, if any), and unless otherwise expressly provided in this Agreement or determined by the Company, your right to vest in the Performance Stock Units under the Plan, if any, will terminate as of such date and will not be extended by any notice period (e.g., your period of Service would not include any contractual notice period or any period of “garden leave” or similar period mandated under your country or the terms of your employment contract, if any); the Committee shall have the exclusive discretion to determine when you are no longer actively providing services for purposes of your Performance Share Award (including whether you may still be considered to be providing services while on a leave of absence);
(k) unless otherwise provided in the Plan or by the Company in its discretion, the Performance Stock Units and the benefits evidenced by this Agreement do not create any entitlement to have the Performance Stock Units or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the Shares;
(l) you acknowledge and agree that neither the Company, the Employer nor any Subsidiary or Affiliate shall be liable for any foreign exchange rate fluctuation between your local currency and the United States Dollar that may affect the value of the Performance Stock Units or of any amounts due to you pursuant to the Performance Stock Units that vested or the subsequent sale of such Shares; and
(m) unless otherwise agreed with the Company, the Performance Stock Units and the Shares represented by the Performance Stock Units, and any income from and value of same, are not granted as consideration for, or in connection with, the service you may render as a director of a Subsidiary or Affiliate.
8. Covenants Not to Disclose, Compete or Solicit.
(a) You acknowledge that (i) the Company is engaged in a continuous program of research, development and production respecting its business (the foregoing, together with any other businesses in which the Company engages from the date hereof to the date of the termination of your employment with the Company and its Subsidiaries as the “Company Business”); (ii) your work for and position with the Company and/or one of its Subsidiaries has allowed you, and will continue to allow you, access to trade secrets of, and Confidential Information concerning the Company Business; (iii) the Company Business is national and international in scope; (iv) the Company would not have agreed to grant you this Award but for the agreements and covenants contained in this Agreement; and (v) the agreements and covenants contained in this Agreement are necessary and essential to protect the Company Business, and the goodwill and customer relationships that the Company and its Subsidiaries
have expended significant resources to develop. The Company agrees and acknowledges that, on or following the date hereof, it will provide you with one or more of the following: (1) authorization to access Confidential Information through a new computer password or by other means, (2) authorization to represent the Company in communications with customers and other third parties to promote the goodwill of the Company Business in accordance with generally applicable Company policies, and (3) access to participate in certain restricted access meetings, conferences or training relating to your position with the Company. You understand and agree that if Confidential Information were used in competition against the Company, the Company would experience serious harm and the competitor would have a unique advantage against the Company.
(b) For purposes of this Agreement, “Confidential Information” shall mean all business records, trade secrets, know-how, customer lists or compilations, terms of customer agreements, sources of supply, pricing or cost information, financial information, personnel data and/or other confidential or proprietary information used and/or obtained by you in the course of your employment with the Company or any Subsidiary; provided that the term “Confidential Information” will not include information which (i) is or becomes publicly available other than as a result of a disclosure by you which is prohibited by this agreement or by any other legal, contractual or fiduciary obligation that you may owe to the Company or any Subsidiary, or (ii) is widely known within one or more of the industries in which the Company or any Subsidiary operates, or you can demonstrate was otherwise known to you prior to becoming an employee of the Company or any Subsidiary, or (iii) is or becomes available to you on a non-confidential basis from a source (other than the Company or any Subsidiary, including any employee thereof) that is not prohibited from disclosing such information to you by a legal, contractual or fiduciary obligation to the Company or any Subsidiary. You agree not to engage in unauthorized use or disclosure of Confidential Information during your employment or at any time after the termination of your employment, and agree that upon termination of your employment (or earlier if so requested) you will preserve and return to the Company any and all records in your possession or control, tangible and intangible, containing any Confidential Information. You further agree not to keep or retain any copies of such records without written authorization from a duly authorized officer of the Company covering the specific item retained.
(c) Ancillary to the foregoing and this Award, you hereby agree that, during the term of your employment with the Company or any Subsidiary and for a period of two (2) years thereafter (the “Restriction Period”), you will not, directly or indirectly, individually or on behalf of any person or entity other than the Company or any of its Subsidiaries:
(i) provide Competing Services (as defined below) to any company or business (other than the Company or any Subsidiary) engaged primarily in the manufacture, distribution, sale or marketing of any of the Relevant Products (as defined below) in the Relevant Market Area (as defined below);
(ii) approach, consult, solicit business from, or contact or otherwise communicate, directly or indirectly, in any way with any Customer (as defined below) in an attempt to (1) divert business from, or interfere with any business relationship of the Company or any of its Subsidiaries, or (2) convince any Customer to change or alter any of such Customer’s existing or prospective contractual terms and conditions with the Company or any Subsidiary; provided that you shall not be restricted in any general advertising or publication of services or products; or
(iii) solicit, induce, recruit or encourage, either directly or indirectly, any employee of the Company or any Subsidiary to leave his or her employment with the Company or any Subsidiary or employ or offer to employ any employee of the Company or any Subsidiary; provided that you shall not be restricted in any general solicitation for employees (including through the use of employment agencies) not specifically directed at any employee of the Company or any Subsidiary. For the purposes of this section, an employee of the Company or any Subsidiary shall be deemed to be an employee of the Company or any Subsidiary while employed by the Company and for a period of sixty (60) days thereafter.
(d) For purposes of this Agreement, the following terms shall have the meanings indicated:
(i) to provide “Competing Services” means to provide, manage, supervise, or consult about (whether as an employee, owner, partner, stockholder, investor, joint venturer, lender, director, manager, officer, employee, consultant, independent contractor, representative or agent, or otherwise) any services
that are similar in purpose or function to services you provided to the Company in the two year period preceding the termination of your employment, that might involve the use or disclosure of Confidential Information, or that would involve business opportunities related to Relevant Products.
(ii) “Customer” means any and all persons or entities who purchased any Relevant Product from the Company or any Subsidiary during the term of your employment with the Company or any Subsidiary and as to whom, within the course of the last two (2) years of your employment with the Company or any Subsidiary, (a) you or someone under your supervision had contact and/or (b) you received or had access to Confidential Information.
(iii) “Relevant Product(s)” means (1) organic dairy products (including milk, cream and cultured dairy products) or organic juice, (2) dairy or other non-dairy coffee creamers or other coffee whiteners, (3) coffee-based beverages, (4) soy milk, almond milk, coconut milk, rice milk or any other plant-based beverage or cultured plant-based product, (5) organic greens and produce, and/or (6) any other product not listed above that was developed or sold by the Company or a Subsidiary in the course of the last two years of your employment with the Company or any Subsidiary.
(iv) “Relevant Market Area” means the states, regions and countries where the Company does business that you assist in providing services to and/or receive Confidential Information about in the two year period preceding the termination of your employment so long as the Company continues to do business in that geographic market area during the Restriction Period.
(e) Notwithstanding the foregoing, (i) the restrictions of subsection 8(c) above shall not prohibit your employment with a non-competing, independently operated subsidiary, division, or unit of a diversified company (even if other separately operated portions of the diversified company are involved in Relevant Products) if in advance of your providing any services, you and the diversified company that is going to employ you both provide the Company with written assurances that are satisfactory to the Company establishing that (1) the entity, subsidiary, division, or unit of the diversified business that you are going to be employed in is not involved in Relevant Products or preparing to become involved in Relevant Products, and (2) your position will not involve Competing Services of any kind, and (ii) you are not prohibited from owning, either of record or beneficially, not more than five percent (5%) of the shares or other equity of any publicly traded company. Your obligation under this Section 8 shall survive the vesting or forfeiture of your Performance Stock Units and/or the distribution or forfeiture of the underlying Shares.
(f) Any breach of any provision of this Section 8 will result in immediate and complete forfeiture of your unvested Performance Stock Units and your undistributed Shares. In addition, you hereby agree that if you violate any provision of this Section 8, the Company will be entitled to injunctive relief, specific performance, or such other legal and equitable relief as is needed to prevent or enjoin any violation of the provisions of this Agreement in addition to and not to the exclusion of any other remedy that may be allowed by law for damages experienced prior to the issuance of injunctive relief. You also agree that, if you are found to have breached any of the time-limited covenants in this Section 8, the time period during which you are subject to such covenant shall be extended by one day for each day you are found to have violated such restriction, up to a maximum of two years.
(g) You acknowledge that you have given careful consideration to the restraints imposed by this Agreement, and you fully agree that they are necessary for the reasonable and proper protection of the business of the Company and its Subsidiaries. The restrictions set forth herein shall be construed as a series of separate and severable covenants. You agree that each and every restraint imposed by this Agreement is reasonable with respect to subject matter, time period, and geographical area. Except as expressly set forth herein, the restraints imposed by this Agreement shall continue during their full time periods and throughout the geographical area set forth in this Agreement.
(h) You stipulate and agree that one of the purposes of this Agreement is to fully resolve and bring finality to any concerns over the enforceability of the Restrictive Covenants. You also stipulate and agree that (i) the enforceability of the Restrictive Covenants, and (ii) the Company’s agreement herein to provide you with this Award are mutually dependent clauses and obligations without which this Agreement would not be made by the parties. Accordingly, you agree not to sue or otherwise pursue a legal claim to set aside or avoid enforcement of the
Restrictive Covenants. And, in the event that you or any other party pursues a legal challenge to the enforceability of any material provision of the restrictions in Section 8 of this Agreement and a material provision is found unenforceable by a court of law or other legally binding authority such that you are no longer bound by a material provision of Section 8, then (1) your unvested Performance Stock Units and undistributed Shares shall be forfeited and (2) you hereby agree that you will return to the Company any Shares that were previously issued to you or, if you no longer own the Shares, an amount in cash equal to the fair market value of any such Shares on the date they were issued to you (less any taxes paid by you). The foregoing is not intended as a liquidated damage remedy but is instead a return-of-gains and contractual rescission remedy due to the mutual dependent nature of the subject provisions in the Agreement.
(i) If any of the Restrictive Covenants are deemed unenforceable as written, you and the Company expressly authorize the court to revise, delete, or add to the restrictions contained in this Section 8 to the extent necessary to enforce the intent of the parties and to provide the goodwill, Confidential Information, and other business interests of the Company and its Subsidiaries with effective protection. And, in the event that such reformation of the restriction is acceptable to the Company, then the forfeiture and rescission (return of gain) remedies provided for in subsection 8(h) above shall not apply.
(j) The provisions of this Section 8 are not intended to override, supersede, reduce, modify or affect in any manner any other non-competition or non-solicitation agreement between you and the Company or any Subsidiary, and instead are intended to supplement any such agreements.
9. No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding your participation in the Plan, or your acquisition or sale of the Shares represented by the Performance Stock Units. You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan.
10. Plan Incorporated. You accept the Performance Stock Units hereby granted subject to all the provisions of the Plan, which, except as expressly contradicted by the terms hereof, are incorporated into this Agreement, including the provisions that authorize the Committee to administer and interpret the Plan and which provide that the Committee’s decisions, determinations and interpretations with respect to the Plan are final and conclusive on all persons affected thereby.
11. Appendix. Notwithstanding any provisions in this Agreement, the Performance Stock Unit Award shall be subject to any special terms and conditions set forth in any Appendix hereto for your country. Moreover, if you relocate to one of the countries included in the Appendix, the special terms and conditions for such country will apply to you, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons. The Appendix constitutes part of this Agreement.
12. Assignment of Intellectual Property Rights. In consideration of the granting of this Performance Stock Unit Award, you hereby agree that all right, title and interest to any and all products, improvements or processes (“Intellectual Property”) whatsoever, discovered, invented or conceived during the course of employment with the Company or any of its Subsidiaries, relating to the subject matter of the business of the Company or any of its Subsidiaries or which may be directly or indirectly utilized in connection therewith, are vested in the Company, and you hereby forever waive any and all interest you have in such Intellectual Property and agree to assign such Intellectual Property to the Company. In addition, all writings produced in the course of work or employment for the Company or any Subsidiary are works produced for hire and the property of the Company and its Subsidiaries, including any copyrights for those writings.
13. Insider-Trading Restrictions/Market Abuse Laws. You acknowledge that, depending on your country of residence, you may be subject to insider-trading restrictions and/or market-abuse laws which may affect your ability to acquire or sell Shares or rights to Shares (e.g., Performance Stock Units) under the Plan during such times as you are considered to have “inside information” regarding the Company (as defined by the laws in your country). Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ policy. You acknowledge that it is your responsibility to comply with any applicable restrictions and that you have been advised to speak to your personal legal advisor on this matter.
14. Data Privacy. You hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this Agreement and any other Performance Share Award materials (“Data”) by and among, as applicable, the Employer, the Company and its Subsidiaries and Affiliates for the exclusive purpose of implementing, administering and managing you participation in the Plan.
You understand that the Company and the Employer may hold certain personal information about you, including, without limitation , your name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any Shares or directorships held in the Company, details of all Performance Stock Units or any other entitlement to Shares awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the exclusive purpose of implementing, administering and managing the Plan.
You understand that Data will be transferred to E*TRADE Financial Services Inc. and its affiliated companies (together, “E*Trade”) stock plan service assisting the Company with the implementation, administration and management of the Plan. You understand that the recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country (e.g., the United States) may have different data privacy laws and protections than your country. You understand that you may request a list with the names and addresses of any potential recipients of the Data by contacting your local human resources representative. You authorize the Company and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing your participation in the Plan. You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan. You understand that you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing your local human resources representative. Further, your understand that you are providing the consents herein on a purely voluntary basis. If you do not consent, or if you later seek to revoke your consent, your employment status or service and career with the Employer will not be adversely affected; the only consequence of refusing or withdrawing your consent is that the Company would not be able to grant you Performance Stock Units or other Awards or administer or maintain such Awards. Therefore, you understand that refusing or withdrawing your consent may affect your ability to participate in the Plan. For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact your local human resources representative.
15. Miscellaneous.
(a) No Guaranteed Employment. Nothing contained in this Agreement shall affect the right of the Company, the Employer or another Subsidiary or Affiliate, as applicable, to terminate your employment at any time, with or without Cause, or shall be deemed to create any rights to employment on your part. The rights and obligations arising under this Agreement are not intended to and do not affect the employment relationship that otherwise exists between the Employer and you, whether such employment relationship is at will or defined by an employment contract. Moreover, this Agreement is not intended to and does not amend any existing employment contract between you and the Employer.
(b) Notices. Any notice to be given to the Company under the terms of this Agreement shall be addressed to the Company at its principal executive offices, and any notice to be given to you shall be addressed to you at the address set forth on the attached Notice of Grant, or at such other address for a party as such party may hereafter designate in writing to the other. Any such notice shall be deemed to have been duly given if mailed, postage prepaid, addressed as aforesaid.
(c) Binding Agreement. Subject to the limitations in this Agreement on the transferability by you of the Award granted herein, this Agreement shall be binding upon and inure to the benefit of the representatives, executors, successors or beneficiaries of the parties hereto.
(d) Governing Law and Venue. The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of Delaware and the United States, as applicable, without reference
to the conflict of laws provisions thereof. The parties hereby agree that, for purposes of any dispute that arises under this grant or the Agreement, any litigation shall be conducted in the courts of Denver County, City of Denver, Colorado, or the federal courts for the United States for the District of Colorado, where this grant is made and/or to be performed.
(e) Severability. Except as otherwise expressly provided for herein in Section 8 above, if any provision of this Agreement is declared or found to be illegal, unenforceable or void, in whole or in part, then the parties shall be relieved of all obligations arising under such provision, but only to the extent that it is illegal, unenforceable or void, it being the intent and agreement of the parties that this Agreement shall be deemed amended by modifying such provision to the extent necessary to make it legal and enforceable while preserving its intent or, if that is not possible, by substituting therefor another provision that is legal and enforceable and achieves the same objectives.
(f) Interpretation. All section titles and captions in this Agreement are for convenience only, shall not be deemed part of this Agreement, and in no way shall define, limit, extend or describe the scope or intent of any provisions of this Agreement.
(g) Entire Agreement. Except as otherwise provided for in Section 8 above, this Agreement constitutes the entire agreement among the parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings pertaining thereto.
(h) No Waiver. No failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute waiver of any such breach or any other covenant, duty, agreement or condition.
(i) Counterparts. This Agreement may be executed in counterparts, all of which together shall constitute one agreement binding on all the parties hereto, notwithstanding that all such parties are not signatories to the original or the same counterpart.
(j) Relief. In addition to all other rights or remedies available at law or in equity, the Company shall be entitled to injunctive and other equitable relief to prevent or enjoin any violation of the provisions of this Agreement.
(k) Language. If you have received this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version shall control.
(l) Imposition of Other Requirements. The Company reserves the right to impose other requirements on your participation in the Plan, on the Performance Stock Units and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.
(m) Electronic Delivery and Acceptance. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.
Exhibit A
Performance Criteria for
2015 Performance Stock Unit Award under
The WhiteWave Foods Company 2012 Stock Incentive Plan
1. Definitions. For purposes of this Exhibit:
(a) “Comparison Group” means each company in the S&P 500 as of the last day of the calendar year immediately preceding the Date of Grant, excluding, from the calculation for any Performance Period, any such company that incurs a Specified Corporate Change during such Performance Period.
(b) “EPS” means (i) with respect to each company in the Comparison Group, the “Diluted EPS from Operations” for such company as computed by S&P Capital IQ, a business of McGraw Hill Financial, for purposes of its Compustat Financials analysis, which is adjusted to remove the impact of “Unusual Items” as defined by Compustat Financials, and (ii) for the Company, “Adjusted Diluted Earnings Per Share” as reported by the Company in its quarterly earnings press releases over the Performance Periods, computed on a consistent basis from quarter to quarter applying the methodology used by the Company for computing its Adjusted Diluted Earnings Per Share in its fiscal 2014 quarterly earnings press releases, which may include adjustments that are not reflected in the EPS of the Comparison Group, such as expenses associated with the amortization of the Company’s IPO grants, elimination of debt issuance or modification costs, elimination of income and expense related to mark-to-market adjustments on interest rate swaps and commodity ▇▇▇▇▇▇. To ensure consistency in calculating performance and setting the Certification Date, the cutoff for determining the EPS of each company in the Comparison Group shall be April 15 of each year (i.e., if a company in the Comparison Group has not reported, by April 15 of any year, the EPS for its most recently completed fiscal year then the EPS for such company shall be excluded from the EPS Growth calculation for that Performance Period).
(c) “EPS Growth” means the simple arithmetic average of the annual growth rate (i.e., not CAGR) of EPS with respect to each fiscal year in the applicable Performance Period; provided that, for any company in the Comparison Group whose fiscal year does not coincide with the calendar year, the annual growth rate will be computed based on that company’s four most recently reported fiscal quarters. For example, if the Performance Period is the three-year period beginning January 1, 2015 and ending on December 31, 2017, and a company’s EPS is $1.00 for the fiscal year ended December 31, 2014, $1.15 for the fiscal year ended December 31, 2015, $1.30 for the fiscal year ended December 31, 2016, and $1.60 for the fiscal year ended December 31, 2017 then that company’s EPS growth over that Performance Period would equal 17.04% (calculated as 15% growth for year 1, plus 13.04% growth for year 2, plus 23.08% growth for year 3, divided by three = 17.04%).
(d) “Performance Criteria” means the EPS Growth of the Company for each Performance Period compared to the EPS Growth of the companies in the Comparison Group for the Performance Period.
(e) “Specified Corporate Change.” A company in the Comparison Group will be deemed to have undergone a “Specified Corporate Change” if it:
(i) | ceases to be a domestically domiciled publicly traded company on the NYSE or Nasdaq stock exchange; or |
(ii) | has gone private; or |
(iii) | has been acquired by or merged with another company and the Company is not the surviving entity (whether by a peer company or otherwise, but not including internal reorganizations), or has sold all or substantially all of its assets; or |
(iv) | has reincorporated in a foreign (e.g., non-U.S.) jurisdiction, regardless of whether it is a reporting company in that or another jurisdiction; or |
(v) | (A) has filed for bankruptcy, reorganization, or liquidation under any chapter of the U.S. Bankruptcy Code; (B) is the subject of an involuntary bankruptcy proceeding that is not dismissed within 30 days; (C) is the subject of a stockholder approved plan of liquidation or dissolution; or (D) has ceased to conduct substantial business operations. |
The Company shall rely on press releases, public filings, website postings, and other reasonably reliable information available regarding a company in making a determination that a Specified Corporate Change has occurred.
(f) “Target Number of Shares” means the target number of Performance Stock Units set forth in the Notice of Grant.
2. Calculation of Performance Stock Units Earned in Performance Period. For purposes of the Award, the number of Performance Stock Units earned in each Performance Period will be calculated as follows:
FIRST: For the Company and for each company in the Comparison Group, determine the EPS Growth for the Performance Period;
SECOND: Rank the EPS Growth of the Company and each company in the Comparison Group from low to high (with the company having the lowest EPS Growth being ranked number 1, the company with the second lowest EPS Growth ranked number 2, and so on) and determine the Company’s percentile rank based upon its position in the list by dividing the Company’s position by the total number of companies (including the Company) in the Comparison Group and rounding the quotient to the nearest hundredth. For example, if the Company were ranked 350 on the list out of 500 companies (including the Company), its percentile rank would be 70%.
THIRD: Plot the percentile rank for the Company determined in the SECOND step into the appropriate band in the left-hand column of the table below and determine the number of shares earned as a percent of the Target Number of Shares, which is the figure in the right-hand column of the table below corresponding to that percentile rank. Use linear interpolation between points in the table below to determine the percentile rank and the corresponding share funding if the Company’s percentile rank is greater than 25th percentile and less than the 50th percentile, or greater than the 50th percentile and less than the 75th percentile. For example, if the Company ranks in the 70th percentile, then 180% of the target number of Performance Stock Units would be earned.
Relative EPS Growth Rank | Performance Stock Units Earned as a Percentage of Target* | |
Maximum | 75th percentile or above | 200% |
Target | 50th percentile | 100% |
Threshold | 25th percentile | 25% |
No Payout | Less than 25th percentile | 0% |
* Linear interpolation for performance between points shown
The Committee will certify in writing the level of performance achieved by the Company for such Performance Period. All of the Performance Stock Units subject to vesting during a Performance Period will be forfeited and cancelled by the Company if the Company’s performance during such Performance Period does not meet or exceed the Threshold percentile rank of the Performance Criteria for such Performance Period. Performance at or above the Threshold level will result in the vesting and distribution of the Performance Stock Units, in the percentage set forth in the table above under “Performance Stock Units Earned as a Percentage of Target”, and a corresponding number of Shares shall be distributed following completion of the Committee’s certification, as described above; the remaining Performance Stock Units that were eligible for vesting during such Performance Period will be cancelled and forfeited. In no event will the number of Performance Stock Units that become earned and vested in any Performance Period exceed 200% of the Target Number of Shares eligible for vesting during such Performance Period.
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1
APPENDIX TO
THE WHITEWAVE FOODS COMPANY
2012 STOCK INCENTIVE PLAN
FOR NON-U.S. EXECUTIVE OFFICERS
TERMS AND CONDITIONS
This Appendix includes additional terms and conditions that govern the Performance Stock Units granted to you under the Plan if you work in one of the countries listed below. If you are a citizen or resident of a country (or if you are considered as such for local law purposes) other than the one in which you are currently working or if you move to another country after the grant is made, the Company will, in its discretion, determine the extent to which the terms and conditions in this Appendix will apply to you.
Unless otherwise provided below, capitalized terms used but not defined in this Appendix shall have the same meanings assigned to them in the Plan and the Award Agreement, as applicable.
NOTIFICATIONS
This Appendix also includes notifications regarding certain other issues of which you should be aware with respect to the Performance Stock Units granted under the Plan. The information is based on the securities, exchange control and other laws in effect in the respective countries as of January 2015. Such laws are often complex and change frequently. As a result, the Company strongly recommends that you not rely on the information in this Appendix as the only source of information relating to the Performance Stock Units because the information may be out of date at the time that the Performance Stock Units vest and Shares are distributed or such Shares are subsequently sold.
In addition, the information contained herein is general in nature and may not apply to your particular situation and the Company is not in a position to assure you of any particular result. Accordingly, you are strongly encouraged to seek appropriate professional advice as to how the relevant laws in your country may apply to your individual situation.
Further, if you are a citizen or resident of a country (or if you are considered as such for local law purposes) other than the one in which you are currently working or if you move to another country after your Performance Stock Units are granted, the information contained herein may not be applicable in the same manner.
The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding your participation in the Plan or acquisition or sale of the Shares represented by the Performance Stock Units. You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan.
BELGIUM
NOTIFICATIONS
Foreign Asset/Account Reporting Information. Belgian residents are required to report any security (e.g., Shares acquired under the Plan or bank accounts held outside of Belgium) on their annual tax return. In a separate report, they will be required to provide the National Bank of Belgium with certain details regarding such foreign accounts (including the account number, bank name and country in which any such account was opened).
END OF AGREEMENT