TOTAL
SHAREHOLDER RETURN INCENTIVE COMPENSATION PROGRAM
AWARD AGREEMENT
Allegheny
Technologies Incorporated (the “ Company ”) and
the award recipient named below (“ Participant
”) enter into this Total Shareholder Return Incentive
Compensation Program Agreement effective as of January 1,
2009.
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[NAME]
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PARTICIPANT TO
COMPLETE THE FOLLOWING CHART
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(Please
print)
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WHEREAS,
the Company has adopted the Allegheny Technologies Incorporated
2007 Incentive Plan (the " Plan ”) and, in accordance
with the Plan, has adopted Administrative Rules for the Total
Shareholder Return Incentive Compensation Program, as amended (the
“ TSRP ”) as a portion of the Plan to
(i) assist the Company retain and motivate key management
employees; (ii) reward key management employees for the
overall success of the Company; and (iii) provide a means of
encouraging key management employees to acquire and hold shares of
Company Common Stock.
WHEREAS,
the TSRP provides that each TSR Target Award made under the TSRP
shall be evidenced by an Award Agreement between the Company and
the key management employee who receives a TSR Target Award under
the TSRP setting forth the terms and conditions of such TSR Target
Award;
WHEREAS,
the Company desires to make a TSR Target Award to the Participant
and evidence such TSR Target Award by this Award Agreement and the
Participant, having read and understood the Plan and the TSRP, is
willing to enter into this Award Agreement on the terms and
conditions set forth herein.
NOW
THEREFORE, in consideration of the covenants and agreements herein
contained and intending to be legally bound, the parties hereto
agree with each other as follows:
Subject to
the attainment of the Performance Levels described below and to the
terms and conditions of the Plan, the TSRP and the Terms and
Conditions of Award attached hereto and incorporated herein by
reference, by which Participant agrees to be bound, the Company
awards to Participant the Award described below, with respect to
the Performance Period described below:
PERFORMANCE
PERIOD: January 1, 2009 through December 31,
2011
TSR TARGET
AWARD: [TSRP target shares] Shares of Company Common Stock
[equals applicable base salary times
% (which is the Participant’s target award opportunity as a
percent of salary) divided by $22.23 (which is the average Closing
Price for the 30 trading days prior to January 1,
2009)]
PERFORMANCE
LEVELS: The following table shows the performance award
relationship under the TSRP for the 2009—2011 performance
period:
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Outcome Relative to Peer Group
TSR
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Three-Year
Percentile
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Percent of
Target
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Level of
Performance
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Ranking in
TSR
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Award
Earned
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Below 25 th percentile
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0
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%
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25
th percentile
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50
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%
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50
th percentile
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100
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%
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75
th percentile
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200
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%
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90
th percentile
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300
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%
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Note:
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Interpolation
between points will be made on a straight line basis on each scale.
Below the 25 th percentile and above the 90
th percentile, there will be no
extrapolation.
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THE ACTUAL
AWARD UNDER THE TSRP WILL EQUAL THE TSR TARGET AWARD TIMES THE
APPLICABLE PERCENT OF TARGET AWARD EARNED.
IN WITNESS
WHEREOF, the parties hereto have executed this Total Shareholder
Return Incentive Compensation Program Award Agreement effective the
day and year first above written.
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ALLEGHENY
TECHNOLOGIES INCORPORATED
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Title:
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Executive Vice
President, Human Resources,
Chief Legal & Compliance Officer
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2
TERMS AND
CONDITIONS OF TSRP AWARD
Capitalized
words used but not defined below or elsewhere in these Terms and
Conditions shall have the meanings ascribed to them in the
Plan.
"
Administrative Rules ” or “ TSRP ”
shall mean the Administrative Rules for the TSRP adopted by the
Committee effective January 1, 2001, as amended effective
February 24, 2005 and as further amended effective
February 21, 2008, as the same may be amended from time to
time.
"
Award ” shall mean the grant of a TSR Target Award
evidenced by this Award Agreement.
"
Committee ” means the Personnel and
Compensation Committee of the Board of Directors.
" Common
Stock ” shall mean the common stock, $0.10 par value per
share, of Allegheny Technologies Incorporated.
"
Company ” shall mean Allegheny Technologies
Incorporated and its subsidiaries, unless the context requires
otherwise.
"
Disability ” shall mean the total and permanent
disability of Participant as determined by the Committee in its
sole discretion.
"
Excellent ” shall mean a relative standing of the
Company’s TSR as against the TSR for the Peer Group, in each
case for the TSR Performance Period, equal to or greater than 75%
but less than 90%.
"
Outstanding ” shall mean a relative standing of the
Company’s TSR as against the TSR for the Peer Group, in each
case for the TSR Performance Period, equal to or greater than
90%.
" Peer
Group ” shall mean the corporations listed on
Exhibit 1 to this Award Agreement, subject to the adjustments
to such group as permitted under the Administrative
Rules.
"
Retirement ” means a termination of employment with
the Company and each of its subsidiaries, with the consent of the
Company, at or after (i) attaining age 55 and
(ii) completing five years of employment with the Company
and/or any subsidiary of the Company.
"
Target ” shall mean a relative standing of the
Company’s TSR as against the TSR of the Peer Group, in each
case for the TSR Performance Period, of equal to or greater than
50% but less than 75%.
"
Threshold ” shall mean a relative standing of the
Company’s TSR as against the TSR of the Peer Group, in each
case for the TSR Performance Period, of equal to or greater than
25% but less than 50%.
“TSR
Performance Level ”
means the measure of Company TSR performance relative to the Peer
Group, as set forth on page 2 of this Award Agreement. In
determining the final Performance Level, the Committee shall use
straight-line interpolation between Threshold and Target, between
Target and Excellent, and between Excellent and Outstanding. No TSR
Reward will be earned for a Performance Level less than Threshold.
No additional TSR Reward above Outstanding will be earned for a
Performance Level greater than Outstanding.
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