Exhibit 10.3
STEPAN COMPANY
2022 EQUITY incentive compensation plan
NOTICE OF GRANT OF PERFORMANCE SHARES
Stepan Company (the “Company”) hereby grants to the Participant the target number of Performance Shares set forth below under the Stepan Company 2022 Equity Incentive Compensation Plan (the “Plan”). The Performance Shares are subject to all of the terms and conditions in this Notice of Grant of Performance Shares (this “Grant Notice”), in the Performance Shares Agreement attached hereto (the “Agreement”) and in the Plan. Capitalized terms used, but not otherwise defined, in this Grant Notice will have the meanings given to such terms in the Plan or Agreement, as applicable, and the Plan and Agreement are hereby incorporated by reference into this Grant Notice. If there are any inconsistences between this Grant Notice or the Agreement and the Plan, the terms of the Plan shall govern.
Participant: | [___] |
Type of Grant: | Performance Shares |
Date of Grant: | [___] |
Total Target Number of Performance Shares: | [___] |
One-Year Performance Period: | January 1, 20__ through December 31, 20__ |
Three-Year Performance Period: | January 1, 20__ through December 31, 20__ |
Potential Payout %: | From 0% to 195% |
Vesting Schedule: | Subject to the terms and conditions set forth in the Agreement and in the Statement of Performance Goals, the Performance Shares shall become earned (“Earned Performance Shares”) to the extent that the performance goals for the Performance Shares are achieved, as set forth or contemplated in the Statement of Performance Goals, provided (except as otherwise provided in the Agreement) that the Participant has remained in continuous employment with the Company or a Subsidiary through the last day of the Three-Year Performance Period. |
STEPAN COMPANY
2022 EQUITY incentive compensation plan
PERFORMANCE SHARES AGREEMENT
Stepan Company (the “Company”) has granted, pursuant to the Stepan Company 2022 Equity Incentive Compensation Plan (the “Plan”), to the Participant named in the Notice of Grant of Performance Shares (the “Grant Notice”) to which this Performance Shares Agreement is attached (together with the Grant Notice, this “Agreement”) an award of Performance Shares as set forth in such Grant Notice, subject to the terms and conditions set forth in this Agreement.
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[SIGNATURES ON FOLLOWING PAGE]
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STEPAN COMPANY
By:
Name:
Title:
Participant Acknowledgment and Acceptance
By:
Name:
Date: _________________________
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STATEMENT OF PERFORMANCE GOALS
FOR PERFORMANCE SHARES
This Statement of Performance Goals applies to the Performance Shares granted to the Participant on the Date of Grant and applies with respect to the Performance Shares Agreement between the Company and the Participant (the “Agreement”).
Threshold (50% payout) | Target (100% payout) | Maximum and above (150% payout) |
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Threshold and below | Target | Maximum and above |
(70% payout) | (100% payout) | (130% payout) |
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