EXHIBIT 10.1
FORM OF AWARD LETTER
[date]
[Participant Name]
[Address]
[City, State Zip]
RE: 1997 Long-Term Incentive Plan Performance Award and Targets for
Six Month Period ending May 31, 2008
Dear Participant:
The Compensation Committee of the Board of Directors of Worthington
Industries, Inc. (the "Company") has granted to you a Performance Bonus Award
under the Company's 1997 Long-Term Incentive Plan (the "Plan") on the terms
described below. The Performance Bonus Award is designed to provide incentive
payouts to certain senior managers based on the attainment of stated financial
performance targets over the six-month period ending May 31, 2008 (the
"Performance Period").
In an effort to focus on both the quantity and quality of earnings, the
Performance Bonus Awards incorporate both an earnings and economic value added
("EVA") component. The Performance Bonus Award and the targets are for the
six-month performance period ending May 31, 2008. For corporate officers, half
of the possible Performance Bonus Award is allocated to the corporate earnings
per share ("EPS") target and half to the corporate EVA target. For business unit
executives, the Performance Bonus Award is structured a little differently: 20%
of the possible Performance Bonus Award is allocated to the same corporate EPS
targets as the corporate officers, 30% is allocated to business unit operating
income targets, and 50% is allocated to business unit EVA targets.
Your Performance Bonus Award for the Performance Period ending May 31, 2008
and specific performance targets are set forth below:
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Corporate EPS Targets Corporate EPS* Targets Cash Award
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Threshold $__________ $__________
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Target $__________ $__________
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Maximum $__________ $__________
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Corporate EVA Targets Corporate EVA* Targets Cash Award
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Threshold $__________ $__________
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Target $__________ $__________
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Maximum $__________ $__________
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* Targets are for the six-month period ending May 31, 2008. Restructuring
charges and other unusual or non-recurring items will be excluded as determined
in the discretion of the Compensation Committee.
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Business Unit __________ Business Unit**
EVA Targets EVA Targets Cash Award
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Threshold $__________ Million $__________
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Target $__________ Million $__________
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Maximum $__________ Million $__________
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Business Unit __________ Business Unit**
EOI Targets EOI Targets Cash Award
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Threshold $__________ Million $__________
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Target $__________ Million $__________
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Maximum $__________ Million $__________
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** Targets are for the six-month period ending May 31, 2008. Business unit
results shall be calculated excluding corporate allocations not under direct
control of the business unit and restructuring changes and other unusual or
non-recurring items, as determined in the discretion of the Compensation
Committee.
Performance falling between threshold and target or between target and
maximum will be pro rated on a linear basis.
No payments will be made if performance falls below threshold. Each of the
performance measures is free standing so that you will be able to earn a payout
based upon the achievement of one measure, even if the threshold performance
level is not achieved in the other measure.
Calculation of the Company results and attainment of performance measures
will be made solely by the Compensation Committee based upon the Company's
consolidated financial statements. The Compensation Committee has the right to
make changes and adjustments in calculating the performance measures to take
into account unusual or non-recurring events, including, without limitation,
changes in tax and accounting rules and regulations; extraordinary gains and
losses; mergers and acquisitions and purchases or sales of substantial assets;
provided that, if Section 162(m) of the Internal Revenue Code would be
applicable to the pay-out of the Performance Awards hereunder, any such change
or adjustment must be permissible under Section 162(m).
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The determination of the attainment of performance objectives and the
amount of the Performance Bonus Awards payable will generally be finalized
within a reasonable time after the applicable consolidated financial statements
of the Company has been completed. Payments will then be made within a
reasonable time after finalization by the Committee, unless there is a need for
a delay.
Unless the Committee elects a different form of payout, payments will be
made in cash. The Committee may adopt provisions permitting the deferral of a
portion or all of the payout into a Deferred Compensation Plan, provided that a
timely deferral election is made. The Company may require payment of, or may
withhold from payments, amounts necessary to meet any federal, state or local
tax withholding requirements.
In general, termination of employment terminates Performance Awards.
Termination of employment for reasons of death, disability or retirement will
result in a pro rata payout for the Performance Period. Termination of
employment for any other reason, voluntary or involuntary, prior to the end of
the Performance Period will result in the forfeiture of the Performance Bonus
Award. Upon a change of control of the Company, all Performance Bonus Awards
will be considered earned and payable at "Target" and will be immediately
settled.
The provisions of the Plan are incorporated herein by reference and a copy
is available at your request.
If you have any questions about your Performance Bonus Awards, please call
_________________.
Very truly yours,
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