Ex 10_11(XVI)
GEORGIA-PACIFIC CORPORATION
LONG-TERM INCENTIVE PLAN
PERFORMANCE SHARE GRANT
AGREEMENT
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Grantee:
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[First Middle
Last]
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Target Grant:
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[ ]
shares
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Performance Period
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January 1, 2005 through
December 31, 2007
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Grant Date:
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February 2,
2005
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THIS AGREEMENT, dated as of the
Grant Date stated above, by and between Georgia-Pacific Corporation
(the “Corporation”) and the Grantee;
W I T N E S
S E T H :
WHEREAS, the Corporation wishes to
give the Grantee an opportunity to acquire or enlarge his/her
equity ownership in the Corporation for purposes of augmenting the
Grantee’s proprietary interest in the success of
Georgia-Pacific Corporation and thereby focusing Grantee’s
efforts on increasing shareholder value;
WHEREAS, the Performance Shares
described in this Agreement have been granted pursuant to, and are
governed by, the Plan (as defined below);
NOW, THEREFORE, the Corporation and
the Grantee hereby agree as follows:
1. Performance Share Grant . Subject to
the terms and conditions of this Agreement, the Corporation hereby
grants to Grantee the Target Grant of Performance Shares as
specified on the first page of this Agreement.
2. Award of Performance Shares . The
Grantee will receive an award of a specified percentage of his/her
Target Grant of Performance Shares as of the last day of the
Performance Period if he remains actively employed with the
Corporation on such date and if the percentile ranking of
G-P’s TSR for the Performance Period, when compared to the
TSR performance of the other Peer Group Companies for the
Performance Period, equals or exceeds the 30th percentile. The
following chart specifies the percentage of the Target Grant that
will be awarded depending upon the actual TSR percentile rating
achieved by G-P during the Performance Period:
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Achieved TSR
Percentile
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Award as Percentage
of
Target Grant
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Less than 30th
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0%
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30th
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50%
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40th
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75%
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50th
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100%
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60th
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120%
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70th
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140%
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80th
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160%
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90th
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180%
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100th
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200%
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The percentage of the Target Grant awarded for
achieved TSR percentiles which lie between the data points
specified in the chart will be determined by interpolation. One
hundred percent (100%) of the Target Grant will be awarded if G-P
achieves a TSR performance during the Performance Period of 50.00.
The precise number of Performance Shares awarded to the Grantee
under this Agreement pursuant to this Section 2 will be determined
by multiplying the Target Grant by the percentage specified in the
above chart (or determined through interpolation based on the
chart), and then rounding the resulting number up to the nearest
whole number.
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3. Awards on Certain Events .
Notwithstanding the requirement in Section 2 of this Agreement that
a Grantee be actively employed on the last day of the Performance
Period, Performance Shares shall be awarded pursuant to Section 2
to any Grantee who terminates employment during the Performance
Period:
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(i)
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on the
Grantee’s Normal or Early Retirement Date;
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(ii)
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on the
Grantee’s Disability Retirement Date;
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(iii)
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on the date of
the Grantee’s death prior to his termination of employment
from the Corporation;
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(iv)
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as a result of
a Change of Control; or
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(v)
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subject to the
approval of the Committee, on the date of the Grantee’s
involuntary termination of employment from the Corporation due to
(A) job elimination or (B) such other reason as may be specifically
approved by the Committee.
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4. Payment of Award . As soon as
practicable after the TSR for the Performance Period has been
certified by the Committee (but in no event later than the March 15
following the end of the Performance Period), Performance Shares
awarded pursuant to Section 2 shall be paid to the affected Grantee
in the form of Stock. At such time, the Grantee shall enjoy full
shareholder and ownership rights with respect to such shares. The
shares of Stock paid under this Plan shall be held in a book entry
account for the Grantee by a broker-dealer designated by the
Corporation or, at the Participant’s direction and expense, a
stock certificate representing all such shares of Stock shall be
delivered to the Grantee (or any person who makes a claim through a
Grantee) and shall be registered in his or her name.
5. Ownership Rights . Upon receipt of any
portion of an award of Performance Shares which is paid in Stock
under this Agreement, the Grantee shall exercise all ownership
rights (including, without limitation, the right to vote and the
right to receive dividends) with respect to
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such shares, provided that voting and dividend
rights with respect to the shares will be exercisable only if the
record date for determining shareholders entitled to vote, or to
receive dividends, falls on or after an Award Date. The Grantee
shall have the same rights with respect to any shares of Stock
accruing to awarded Performance Shares as a result of any
adjustment under Sections 8(h).
6. Deferral of Exercise or Delivery of
Shares . Notwithstanding any provision in this Agreement to the
contrary, if any law or regulation of any governmental authority
having jurisdiction in the matter requires the Corporation, the
Plan Administrator, the Agent or the Grantee to take any action or
refrain from action in connection with the award or delivery of
Performance Shares under this Agreement, or to delay such award or
delivery, then the award or delivery of such shares shall be
deferred until such action has been taken or such restriction on
action has been removed.
7. Termination Date. The Grantee’s
date of termination of employment from the Corporation shall be
deemed for purposes of this Agreement to be the later of (i) his
last day of active work for the Corporation or (ii) his last day on
the active employee payroll of the Corporation; provided, however,
that for all purposes of this Agreement, the Grantee shall be
deemed actively at work during any period the Grantee is on
approved paid medical leave or on a layoff under the
Corporation’s salaried layoff policy or during the protected
reemployment period applicable to any Participant on military
leave.
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8. General Provisions . The Grantee
acknowledges that he has read, understands and agrees with all of
the provisions in this Agreement and the Plan, including (but not
limited to) the following:
(a) Authority of Plan
Administrator . The Plan Administrator shall have the authority
to administer the Agreement and the Plan; to make all
determinations with respect to the construction and application of
the Agreement, the Plan, and the resolutions of the Board of
Directors establishing the Plan; to adopt and revise rules relating
to the Agreement and the Plan; to hire the Agent with respect to
its administrative responsibilities under the Agreement and the
Plan; and to make other determinations which it believes are
necessary or advisable for the administration of the Agreement and
the Plan. Any dispute or disagreement which arises under this
Agreement or the Plan shall be resolved by the Plan Administrator
in its absolute discretion. Any such determination, interpretation,
resolution, or other action by the Plan Administrator shall be
final, binding and conclusive with respect to the Grantee and all
other persons affected thereby.
(b) Notices . Any notice
which is required or permitted under this Agreement shall be in
writing (unless otherwise specified in the Agreement or in a
writing from the Corporation or the Agent to the Grantee), and
delivered personally or by mail, postage prepaid, addressed as
follows: (i) if to the Corporation or the Agent, at l33 Peachtree
Street, N.E., Atlanta, Georgia 30303, Attention: Compensation
Department, or at such other address as the Corporation or the
Agent by notice to the Grantee may have designated from time to
time; (ii) if to the Grantee, at the address indicated in the
Grantee’s then-current personnel records, or at such other
address as the Grantee by notice to the Corporation may have
designated from time to time. Such notice shall be deemed given
upon receipt.
(c) Taxation . The Grantee
shall be responsible for all applicable income and withholding
taxes and the employee share of FICA taxes with respect to any
compensation income generated upon the award of his vested
Performance Shares under this Agreement.
(d) Nontransferability . This
Agreement and the Performance Shares granted to the Grantee shall
be nontransferable and shall not be sold, hypothecated or otherwise
assigned or conveyed by the Grantee to any other person, except as
specifically permitted in this Agreement. No assignment or transfer
of this Agreement or the rights represented thereby, whether
voluntary
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or involuntary, or by operation of law or
otherwise, shall vest in the assignee or transferee any interest or
right whatsoever, except as specifically permitted in this
Agreement. The Agreement shall terminate, and be of no force or
effect, immediately upon any attempt to assign or transfer the
Agreement or any of the Performance Shares to which the Agreement
applies.
(e) Designation of
Beneficiary. Notwithstanding anything in Section 8(d) to the
contrary, the Grantee may designate a person or persons to receive,
in the event of his death, any rights to which he would be entitled
under this Agreement. Such a designation shall be filed with the
Agent in accordance with uniform procedures specified by the Plan
Administrator. The Grantee may change or revoke a Beneficiary
designation at any time by filing a written statement of such
change or revocation with the Agent in accordance with uniform
procedures specified by the Plan Administrator. No Beneficiary
designation or change of Beneficiary designation will be effective
until notice thereof is received. If a Grante