TREEHOUSE FOODS,
INC.
CASH LONG-TERM INCENTIVE AWARD
AGREEMENT
THIS AGREEMENT (the “Agreement”),
effective as of the date indicated on the attached Notice of Grant,
is made and entered into by and between TreeHouse Foods, Inc., a
Delaware corporation (the “Company”), and the
individual named on the attached Notice of Grant (the
“Participant”).
WITNESSETH:
WHEREAS, the Board of Directors of the Company
has adopted and approved the TreeHouse Foods, Inc. Equity and
Incentive Plan (the “Plan”), which was approved, as
required, by the Company’s stockholders and provides for the
grant of stock-based and cash incentive awards to certain eligible
Employees, Consultants and non-Employee Directors of the Company
and its Affiliates; and
WHEREAS, the Compensation Committee
(the“Committee”) has selected the Participant to
participate in the Plan and has awarded the cash incentive award
described in this Agreement (the “Performance Award”)
to the Participant; and
WHEREAS, the parties hereto desire to evidence
in writing the terms and conditions of the Performance Award;
and
WHEREAS, capitalized terms used herein and not
otherwise defined in this Agreement shall have the meanings set
forth in the Plan.
NOW, THEREFORE, in consideration of the
foregoing and of the mutual covenants and agreements herein
contained, and as an inducement to the Participant to continue as
an Employee of the Company (or an Affiliate) and to promote the
success of the business of the Company and its Affiliates, the
parties hereby agree as follows:
1. Grant of
Performance Award. The Company hereby grants to the
Participant, effective as of the date shown on the attached Notice
of Grant (the “Date of Grant”), and on the terms and
subject to the conditions, limitations and restrictions set forth
in the Plan and in this Agreement, the Performance
Award shown on the attached Notice of Grant. The
Participant hereby accepts the Performance Award from
the Company on the terms and conditions stated herein.
2. Transfer
Restrictions. The Performance Award shall
not be assigned, pledged or otherwise transferred, voluntarily or
involuntarily, by the Participant.
3. Accrual and
Termination.
(a) For each of the
Performance Periods (___________________, ________ and
_____________), a Performance Award shall accrue equal to (a) ___
of the Performance Award designated on the Notice of
Grant multiplied by (b) the applicable “Percentage of
Performance Award Accrued” as indicated on the
chart below based on the achievement during the applicable
Performance Period of the Operating Net Income goal at the
threshold, target or maximum level designated below. In
addition, for the cumulative Performance Period (_________ though
_____________), a Performance Award shall accrue
equal to (i) the cumulative Performance Award multiplied by (ii)
the applicable Percentage of Performance Award
Accrued as indicated on the chart below based on the
achievement earned during the cumulative Performance Period of the
Operating Net Income goal at the threshold, target or maximum level
designated below, minus (iii) any Performance Award
accrued during the Performance Periods. For purposes of
this Agreement, Operating Net Income shall mean income from
ordinary business activities after operating expenses, income
taxes and interest are deducted, adjusted for one time and
non-recurring items.
(b) The accrued
Performance Award (determined as described in the
paragraph above) shall be paid in cash on the _____ anniversary of
the Date of Grant (but no later than the 45th day after the _____
anniversary), provided that, and except as otherwise provided in
paragraph (c) below, (1) the Committee certifies the attainment of
such Operating Net Income goals in the manner set forth in the Plan
and (2) the Participant continues to be employed by the Company (or
an Affiliate) through the ______ anniversary of the Date of
Grant.
(c) If the
Participant’s Service terminates during one of the
Performance Periods due to death, Disability or
Retirement, or the Company terminates the Participant’s
Service without Cause during a Performance Period, the Participant
shall receive any portion of the Performance Award
accrued in prior Performance Periods, plus a pro rata portion of
the Performance Award that would have accrued for the
Performance Period in which such Participant’s death,
Disability, Retirement, or termination by the Company without Cause
occurs. Such pro rata portion shall be based on the
number of full calendar months of the Participant’s Service
during the applicable Performance Period divided by the length of
that Performance Period. The Participant will receive
the cumulative Performance Award if the Participant is employed
through _________ Such Performance Award shall be
paid on the anniversary of the Date of Grant immediately following
the end of the Performance Period in which such Participant’s
death, Disability, Retirement, or termination by the Company
without Cause occurs (but no later than the 45th day after such
anniversary). Notwithstanding the preceding sentence, if
the Participant is a “specified employee” as determined
under Section 409A of the Internal Revenue Code of 1986, as
amended, and (1) his or her Service terminates during one of the
Performance Periods due to Retirement or (2) the Company terminates
the Participant’s Service without Cause during a Performance
Period, such Participant shall receive such Performance Award on
the date that is the later of: (A) the first day following the six
month anniversary of the Participant’s separation from
Service, or (B) the anniversary of the Date of Grant immediately
following the end of the Performance Period in which such
Participant’s Retirement or termination by the Company
without Cause occurs (but no later than the 45th day after such
date).
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Performance
Period(s)
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Threshold Operating Net Income
Goal
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Target Operating Net Income
Goal
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Maximum Operating Net Income
Goal
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Achieved Operating Net
Income
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