Ex 10_11(XVII)
GEORGIA-PACIFIC
CORPORATION
LONG-TERM INCENTIVE
PLAN
STOCK SAR AWARD
AGREEMENT
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Participant
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[First Middle
Last]
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SAR
Units
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[ ] Units
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Grant
Value
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$[ ] per SAR
Unit
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Grant
Date
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February 1,
2005
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THIS AGREEMENT dated as of the Grant
Date by and between Georgia-Pacific Corporation and the
Participant:
W I T N E S
S E T H :
WHEREAS, Georgia-Pacific Corporation
wishes to give the Participant an opportunity to participate in the
appreciation in the value of its Common Stock;
WHEREAS, the stock SAR award
described in this Agreement has been granted pursuant to, and is
governed by, the Georgia-Pacific Corporation Long-Term Incentive
Plan (the “Plan”);
NOW, THEREFORE, Georgia-Pacific
Corporation and the Participant hereby agree as follows:
1. Definitions . For purposes of this
Agreement, the following terms shall be defined as
follows:
(a) Agent means Equiserve or
any other entity designated by the Plan Administrator to act as its
administrative service provider.
(b) Board of Directors means
the Board of Directors of Georgia-Pacific Corporation.
(c) Cause means any of the
actions or omissions specified in Section 2(d) of the
Plan.
(d) Change of Control has the
meanings specified in Section 11(b) of the Plan.
(e) Committee means the
Management Development and Compensation Committee of the Board of
Directors, or a subcommittee of such Committee, as the same may be
constituted from time to time.
(f) Corporation means
Georgia-Pacific Corporation, its successors and assigns, and any
other corporation or other entity, whether foreign or domestic, in
which the Corporation has or obtains, directly or indirectly, a
proprietary interest of more than twenty percent (20%) by reason of
stock ownership or otherwise.
(g) Disability means
“disability” as defined under the Georgia-Pacific
Corporation LifeChoices Plus Benefits Program, Long-Term Disability
Plan (whether or not the Participant is covered under such
plan).
(h) Disability Retirement
Date means the later of (i) the day the Participant’s
employment with the Corporation ends after the maximum period
during which salary continuation benefits from the Corporation
because of illness or injury are authorized in accordance with its
then-current medical leave policy, but only if the
Participant’s Disability continues through that date, or (ii)
the day the Participant’s employment with the Corporation
ends after the last day of a personal leave of absence immediately
following such period of salary continuation, provided, that the
Participant has a Disability on such date. If the Participant is
involuntarily terminated because of job elimination or facility
closure (or other reason approved by the Plan Administrator) while
on a paid medical leave based on a Disability or during a personal
leave of absence immediately following such medical leave, the
Participant will have a Disability Retirement Date on the last day
of the maximum period during which salary continuation benefits
from the Corporation because of illness or injury would have been
authorized in accordance with its then-current medical leave policy
if he had not been terminated
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(in the case of termination during a medical
leave) or on the date of termination (in the case of termination
during the personal leave of absence), provided that he still has a
Disability on such date.
(i) Early Retirement Date
means the Participant’s last day of active employment by the
Corporation after having attained at least age 55 (but not age 62)
and having accrued at least 10 years of service for vesting
purposes as determined in accordance with the provisions of the
Georgia-Pacific Corporation Salaried 401(k) Plan (or any successor
tax-qualified retirement plan maintained for salaried employees of
the Corporation).
(j) Exercise Value means the
Fair Market Value of a share of Georgia-Pacific Stock on the date
of exercise.
(k) Expiration Date means the
tenth anniversary of the Grant Date, unless an earlier Expiration
Date is established by operation of Section 5 of this
Agreement.
(l) Fair Market Value is the
mean between the high and low sales prices of a share of
Georgia-Pacific Stock on a particular date, as reported in The
Wall Street Journal , New York Stock Exchange—Composite
Transactions, or as reported in any successor quotation system
adopted prospectively for this purpose by the Plan Administrator in
its discretion. If the date of determination is not a trading date
on the New York Stock Exchange, Fair Market Value shall be
determined using the high and low sales prices of a share of
Georgia-Pacific Stock on the next preceding trading date. The Fair
Market Value of Georgia-Pacific Stock shall be rounded to the
nearest whole cent (with 0.5 cent being rounded to the next higher
whole cent).
(m) Georgia-Pacific Stock
means the Corporation’s common stock, par value $0.80 per
share.
(n) Grant Date means the date
set forth on the first page of this Agreement, upon which the SARs
described in this Agreement were granted to the
Participant.
(o) Grant Value means the
value set forth on the first page of this Agreement.
(p) Normal Retirement Date
means the Participant’s last day of active employment by the
Corporation after having attained (i) at least age 62 (but not age
65) and at least 10 years
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of service for vesting purposes as determined in
accordance with the provisions of the Georgia- Pacific Corporation
Salaried 401(k) Plan (or any successor tax-qualified retirement
plan maintained for salaried employees of the Corporation) or (ii)
at least age 65.
(q) Plan means the
Georgia-Pacific Corporation Long-Term Incentive Plan, as adopted by
the Board of Directors on September 17, 1997, and approved by the
Corporation’s shareholders on December 16, 1997, and as
amended from time to time.
(r) Plan Administrator means
the Committee, provided, however, that to the extent permitted by
the Plan and authorized by the Committee, the Chief Executive
Officer of the Georgia-Pacific Corporation may act on behalf of the
Committee in executing the duties and responsibilities of the Plan
Administrator.
(s) Representative means, in
the event of the Participant’s Disability, his duly
authorized legal guardian or representative; or, in the event of
the Participant’s death, his estate, personal representative,
or beneficiary as designated pursuant to Section 6(e).
(t) Tax-Related Items means
all tax, social insurance and payroll tax that may arise and fall
due in relation to the grant, vesting or exercise of the SARs
granted under this Agreement.
(u) Vesting Date means any
one of the dates upon which SARs granted to the Participant under
this Agreement become exercisable in accordance with this
Agreement.
2. SAR Grant . Subject to the terms and
conditions of this Agreement, the Corporation hereby grants a stock
SAR award to the Participant with respect to the number of SAR
Units set forth on the first page of this Agreement.
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3. Vesting .
(a) Regular Vesting . Except
as stated in Sections 3(b) and 3(c) of this Agreement, the
Participant shall become vested in a percentage of his or her total
SAR Units under this SAR grant in accordance with the following
schedule:
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Vesting Date
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Percentage of SAR Units
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First anniversary of Grant Date
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34%
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Second anniversary of Grant Date
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33%
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Third anniversary of Grant Date
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33%
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The number of SAR Units granted to the
Participant under this Agreement which become vested on a Vesting
Date in accordance with the above schedule will be determined by
multiplying his or her total SAR Units by the percentage specified
in the above schedule, and then rounding the resulting number up to
the nearest whole number, provided that the aggregate number of the
Participant’s vested SAR Units under this Agreement shall not
exceed his or her total SAR Units.
(b) Accelerated Vesting .
Notwithstanding the vesting schedule specified in Section 3(a) of
this Agreement, 100% of a Participant’s total SAR Units shall
become fully vested upon the earliest to occur of the following
Vesting Dates:
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(i)
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the
Participant’s Normal Retirement Date;
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(ii)
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the
Participant’s Disability Retirement Date;
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(iii)
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the date of the
Participant’s death prior to his termination of employment
from the Corporation;
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(iv)
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the date of a
Change of Control; or
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(v)
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subject to the approval of the
Corporation, the Participant’s Early Retirement Date or the
date of the Participant’s involuntary termination of
employment from the Corporation, in either case due to (A) job
elimination, (B) plant closure, or (C) such other reason as may be
specifically approved by the Corporation; provided that the
approval of the
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Committee shall be required where
the Participant holds an office of Senior Vice President or
above.
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If more than one of the accelerated vesting
rules specified in this Section 3(b) can apply to the Participant
on any date, the Participant may elect in writing which vesting
rule will apply. If the Participant fails to make such an election
within 30 days after such event, the Participant will be deemed to
have elected the available accelerated vesting rule which, first,
vests the most SAR Units in the Participant or, second (if each
accelerated vesting rule vests the same number of SAR Units), which
provides the longest exercise period. Except as otherwise provided
in this Agreement, in the case of a Disability Retirement Date
which occurs after a Participant’s termination of employment
with the Corporation, no Vesting Date will occur, and no SAR Units
may vest, following termination of employment with the
Corporation.
(c) Termination for Cause .
Notwithstanding anything in this Agreement to the contrary, if the
Corporation terminates the Participant’s employment for Cause
prior to a Change of Control, this Agreement shall be terminated
and all then outstanding SAR Units granted to the Participant under
this Agreement shall be forfeited, regardless of whether a Vesting
Date has occurred on or before such termination date, unless and to
the extent that the Corporation determines that such forfeiture
would violate applicable law.
4. Exercise of SAR .
(a) General . Except as
otherwise specified by the Corporation in accordance with Sections
4(d), the Participant (or his Representative, as the case may be)
may exercise the SAR granted under the Agreement, in whole or in
part, at any time on or after the Vesting Date for such SAR and
prior to the Expiration Date, to the extent of his or her vested
percentage of the SAR Units by complying with the procedures
described in this Section 4. The Participant shall forfeit all
rights to any SAR under this Agreement, whether or not then vested,
which is not exercised prior to the Expiration Date.
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