Archer-Daniels-Midland Company 2009 Incentive Compensation Plan Performance Share Unit Award Agreement
Exhibit 10.1
▇▇▇▇▇▇-▇▇▇▇▇▇▇-Midland Company
2009 Incentive Compensation Plan
2009 Incentive Compensation Plan
This Performance Share Unit Award Agreement (the “Agreement”), is made and entered into as of
*[grant date] (the “Date of Grant”), by and between ▇▇▇▇▇▇-▇▇▇▇▇▇▇-Midland Company, a Delaware
corporation (the “Company”), and «First_Name» «Last_Name», an employee of the Company (the
“Grantee”). This Agreement is pursuant to the terms of the Company’s 2009 Incentive Compensation
Plan (the “Plan”). The applicable terms of the Plan are incorporated herein by reference,
including the definitions of capitalized terms contained in the Plan.
Section 1. Performance Share Unit Award. The Company hereby grants to the
Grantee, on the terms and conditions hereinafter set forth, an Award of «ResAmount» Performance
Share Units (the “Units”), such Units representing the right to receive, following vesting of the
Units, such number of shares of the Company’s common stock as may be determined in accordance with
Section 4 of this Agreement, but in no event a total number of Shares greater than 150% of the
number of Units. The Units granted to the Grantee shall be credited to an account in the Grantee’s
name. This account shall be a record of book-keeping entries only and shall be utilized solely as
a device for the measurement and determination of the number of Shares to be granted to or in
respect of the Grantee pursuant to this Agreement.
Section 2. Rights of Grantee.
(a) No Shareholder Rights. The Units granted pursuant to this Award do not entitle
Grantee to any rights of a shareholder of the Company’s common stock. The Grantee’s rights with
respect to the Units shall remain forfeitable at all times by the Grantee until satisfaction of the
vesting conditions set forth in Section 3 of this Agreement.
(b) Restrictions on Transfer. The Grantee shall not be entitled to transfer, sell,
pledge, alienate, hypothecate or assign the Units or this Award, except that in the event of the
Grantee’s death, the Grantee’s designated beneficiary or estate shall be entitled to receive the
Shares issuable in settlement of earned and vested Units. Any attempt to otherwise transfer the
Units or this Award shall be void. All rights with respect to the Units and this Award shall be
available only to the Grantee during his or her lifetime, and thereafter to the Grantee’s
designated beneficiary or estate.
Section 3. Vesting of Units. Subject to the provisions of Sections 6 and 7
hereof, the Units granted hereunder (and the Grantee’s right to receive Shares in settlement of the
Units pursuant to this Award) shall vest on the earliest to occur of the following (the “Vesting
Date”): (i) October 1, 2014; (ii) upon the occurrence of a Change in Control of the Company (as
defined in the Plan after giving effect to the proviso regarding Code Section 409A at the end of
that definition); or (iii) upon the death of the Grantee. Any outstanding Units granted hereunder
that do not vest on the Vesting Date shall be forfeited.
Section 4. Number of Shares to be Received. The number of Shares that the
Grantee will be entitled to receive in settlement of the vested Units following the Vesting Date
will be determined as follows, subject to an overall limitation on such number of Shares equal to
150% of the number of vested Units:
(a) Annual Share Settlement Amount. Each fiscal year of the Company occurring during
the period July 1, 2011 to June 30, 2014 will be considered a “Performance Period” for purposes of
this Agreement. As soon as practicable following the end of each Performance Period, the number of
Shares issuable in settlement of one-third of the number of Units subject to this Agreement (the
“Annual Share Settlement Amount”) will be determined by the Committee by multiplying one-third of
the number of Units by the Company Performance Factor (described in Section 4(b) below) for that
Performance Period.
(b) Company Performance Factor.
(1) The Company Performance Factor for each Performance Period is a percentage multiplier,
calculated to two decimal places, determined by the Committee for purposes of calculating payouts
under the Company’s annual cash incentive program for performance that occurred during the
applicable Performance Period. As an example, the determination of the Company Performance Factor
for the annual cash incentive program for fiscal 2010 is described on pages 20-22 of the Company’s
Proxy Statement for its annual meeting of stockholders held on November 4, 2010. The manner of
determining the Company Performance Factor for each Performance Period for purposes of this Section
4 shall be established by the Committee no later than 90 days after the commencement of each
Performance Period.
(2) The Committee retains complete discretion to modify, from one year to the next, the manner
in which it calculates payouts under the Company’s annual cash incentive program, which may include
changes in the way the Company Performance Factor is calculated (such as changes in the number,
nature and weighting of financial and operational metrics upon which applicable performance goals
are based, or changes in the level of achievement required to satisfy any applicable performance
goal) and the use of a multiplier other than the Company Performance Factor. Any changes from one
Performance Period to the next in the way the Company Performance Factor is calculated for a
Performance Period for purposes of the annual cash incentive program shall equally apply to
calculations affecting this Award under this Section 4. If the Committee makes other changes in
the manner in which it calculates payouts under the Company’s annual cash incentive program that
will affect any Performance Period, then the Committee shall adapt the calculation methodology used
under the annual cash incentive program as may be necessary to enable it to derive a Company
Performance Factor for such Performance Period that may equitably be utilized for purposes of
calculations under this Section 4. Any such adaptations and derivations made by the Committee
pursuant to this Section 4(b)(2) shall be final, binding and conclusive for all purposes hereunder.
(c) Additional Share Settlement Amount. If the Units vest pursuant to clause (ii) or
clause (iii) of Section 3 of this Agreement, then to the extent that the number of Units that vest on the applicable Vesting Date exceeds the number of Units for which Annual Share Settlement
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Amounts have previously been determined in accordance with Section 4(a) above, the number of Shares
issuable in settlement of Units for which no Annual Share Settlement Amounts have been calculated
(the “Undetermined Units”) will be determined by multiplying such number of Undetermined Units by
the average of the Company Performance Factors previously determined by the Committee for
Performance Periods completed prior to the applicable Vesting Date. If the Committee has not
determined the Annual Share Settlement Amount for any Performance Period prior to the applicable
Vesting Date, then the number of Shares issuable in settlement of the Undetermined Units shall be
equal to the number of Undetermined Units. Any Share settlement amount determined pursuant to
this Section 4(c) for Undetermined Units shall be referred to as the “Additional Share Settlement
Amount.”
Section 5. Settlement of Units. After any Units vest in accordance with
Section 3 of this Agreement, the Company shall cause to be issued to the Grantee, or to the
Grantee’s designated beneficiary or estate in the event of Grantee’s death, Shares in payment and
settlement of such vested Units in an amount equal to the lesser of (i) the sum of all Annual Share
Settlement Amounts and any Additional Share Settlement Amount determined in accordance with Section
4, or (ii) 150% of the number of vested Units. Except for vesting as a result of Grantee’s death
or a Change in Control of the Company, such issuance shall follow certification by the Committee of
the calculation of the final Annual Share Settlement Amount, and shall occur on or before the later
of (i) the end of the calendar year in which the Vesting Date occurs, or (ii) the 15th day of the
third calendar month after the Vesting Date, and the Grantee shall have no power to affect the
timing of such issuance. If vesting occurs as a result of Grantee’s death, such issuance shall
occur within 90 days of the date of Grantee’s death, and if vesting occurs as a result of a Change
in Control, such issuance shall occur as of the date of the Change in Control. Such issuance shall
be evidenced by a stock certificate or appropriate entry on the books of the Company or a duly
authorized transfer agent of the Company, shall be subject to the tax withholding provisions of
Section 8, and shall be in complete settlement and satisfaction of such vested Units. If the
ownership of or issuance of Shares to the Grantee as provided herein is not feasible due to
applicable exchange controls, securities or tax laws or other provisions of applicable law, as
determined by the Committee in its sole discretion, the Grantee or his legal representative shall
receive cash proceeds in an amount equal to the Fair Market Value (as of the Vesting Date) of the
Shares otherwise issuable to Grantee, net of any amount required to satisfy withholding tax
obligations as provided in Section 8.
Section 6. Effect of Termination of Service. If the Grantee’s service as an
Employee ceases prior to the Vesting Date other than as a result of the Grantee’s Retirement or
Disability, the Grantee shall forfeit the Units. If such termination of service is a result of
Grantee’s Retirement or Disability, then subject to the forfeiture and recovery conditions of
Section 7, Grantee’s right to receive Shares pursuant to this Award shall continue to vest in
accordance with Section 3.
Section 7. Forfeiture and Recovery Conditions. Notwithstanding the foregoing,
in the event of termination of Grantee’s service as an Employee for “cause” (as defined below), the
breach of any non-competition or confidentiality restrictions applicable to the Grantee, or the
Grantee’s participation in an activity that is deemed by the Company to be
detrimental to the Company (including, without limitation, criminal activity or accepting
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employment with a competitor of the Company), (i) the Grantee’s right to receive an award of Units
or an issuance of Shares in settlement of Units shall immediately terminate, (ii) any unvested
Units held by the Grantee shall be forfeited, and (iii) if Shares have been issued (or the cash
value thereof paid) after the Vesting Date, then either (A) the Shares so issued shall be forfeited
and returned to the Company, or (B) the Grantee shall be required to pay to the Company in cash an
amount equal to the Fair Market Value of such Shares as of the Vesting Date.
For purposes hereof, “cause” shall have the meaning specified in such Grantee’s employment
agreement with the Company, or, in the case of a Grantee who is not employed pursuant to an
employment agreement, “cause” shall mean any of the following acts by the Grantee: (i)
embezzlement or misappropriation of corporate funds, (ii) any acts resulting in a conviction for,
or plea of guilty or nolo contendere to, a charge of commission of a felony, (iii)
misconduct resulting in injury to the Company or any subsidiary, (iv) activities harmful to the
reputation of the Company or any subsidiary, (v) a violation of Company or subsidiary operating
guidelines or policies, (vi) willful refusal to perform, or substantial disregard of, the duties
properly assigned to the Grantee, or (vi) a violation of any contractual, statutory or common law
duty of loyalty to the Company or any subsidiary.
This Award shall also be subject to any compensation recovery policy adopted by the Board or
the Committee in response to the requirements of Section 10D of the Exchange Act, and any
incentive-based compensation associated with this Award may be recovered by the Company pursuant to
such policy under the circumstances and to the extent required by Section 10D of the Exchange Act
and the rules promulgated by the Securities and Exchange Commission and the New York Stock Exchange
thereunder.
Section 8. Withholding of Taxes. The Grantee shall pay to the Company any
required withholding taxes upon any event in connection with this Award, such as the issuance of
Shares in settlement of the Units, that the Company determines may result in any domestic or
foreign tax withholding obligation, and the delivery of such Shares shall be conditioned upon the
prior payment by the Grantee, or the establishment of arrangements satisfactory to the Company for
the payment by the Grantee, of such withholding tax obligation. The Company may permit the Grantee
to satisfy all or any part of such withholding tax obligations (up to the Grantee’s minimum
required tax withholding rate) by having the Company withhold Shares otherwise payable in
settlement of Units having a Fair Market Value on the date the tax is to be determined equal to the
amount of such withholding tax obligations.
Section 9. Securities Law Compliance. No Shares shall be delivered upon the
vesting and settlement of any Units unless and until the Company and/or the Grantee shall have
complied with all applicable federal, state or foreign registration, listing and/or qualification
requirements and all other requirements of law or of any regulatory agencies having jurisdiction,
unless the Committee has received evidence satisfactory to it that Grantee may acquire such shares
pursuant to an exemption from registration under the applicable securities laws. Any determination
in this connection by the Committee shall be final, binding, and conclusive. The
Company reserves the right to legend any Share certificate or book entry, conditioning sales
of such Shares upon compliance with applicable federal and state securities laws and regulations.
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Section 10. No Rights as Employee or Consultant. Nothing in this Agreement or
this Award shall confer upon the Grantee any right to continue as an Employee or consultant of the
Company or any Subsidiary or Affiliate, or to interfere in any way with the right of the Company or
any Subsidiary or Affiliate to terminate the Grantee’s service at any time.
Section 11. Adjustments. If at any time while this Award is outstanding, the
number of outstanding Shares is changed by reason of a reorganization, recapitalization, stock
split or any of the other events described in Section 4.3 of the Plan, the number of Units and the
number and kind of securities that may be issued in respect of such Units shall be adjusted in
accordance with the provisions of the Plan.
Section 12. Notices. Any notice hereunder by the Grantee shall be given to
the Company in writing and such notice shall be deemed duly given only upon receipt thereof by the
Secretary of the Company at the Company’s office at ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇,
or at such other address as the Company may designate by notice to the Grantee. Any notice
hereunder by the Company shall be given to the Grantee in writing and such notice shall be deemed
duly given only upon receipt thereof at such address as the Grantee may have on file with the
Company.
Section 13. Construction. The construction of this Agreement is vested in the
Committee, and the Committee’s construction shall be final and conclusive.
Section 14. Governing Law. This Agreement shall be construed and enforced in
accordance with the laws of the State of Illinois, without giving effect to the choice of law
principles thereof.
| ▇▇▇▇▇▇-▇▇▇▇▇▇▇-Midland Company | ||||||
| By: | |
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| Chairman, President & Chief | ||||||
| Executive Officer | ||||||
| GRANTEE | ||||||
| By: | ||||||
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