EXHIBIT 10x
Date PERSONAL & CONFIDENTIAL
Name
Address
Re: HON INDUSTRIES Inc. Stock-Based Compensation Plan
Stock Option Award Agreement
Dear :
Congratulations on your selection as a Participant in the HON
INDUSTRIES Inc. Stock-Based Compensation Plan (the "Plan"). This
Agreement provides a brief summary of your rights under the Plan.
A copy of the Plan Document accompanies this Agreement.
The Plan provides a complete detail of all of your rights under
the Plan and this Agreement, as well as all of the conditions and
limitations affecting such rights. If there is any inconsistency
between the terms of this Agreement and the terms of the Plan,
the Plan's terms shall completely supersede and replace the
conflicting terms of this Agreement.
The option granted to you under this Agreement is a Non-Statutory
Stock Option, as defined in the Plan.
Overview of Your Stock Option
1. Number of Shares Granted under this Option:
The Human Resources and Compensation Committee will review
recommendations for additional grants in _______ and every
two years thereafter.
2. Date of Grant:
3. Exercise Price:
4. Vesting of Options: Subject to the terms of the Plan,
100% or any portion of the Shares covered by this option
may be purchased on or after ____________.
5. Method of Exercise and Payment:
Shares may be exercised by written notice to the Company
specifying the number of whole shares to be purchased.
The method of payment may be by any of the following
methods:
(a) Cash payment;
(b) Delivery of previously owned whole shares of common
stock, which had previously been held for six months;
(c) Authorization to the Company to withhold whole shares
of common stock equal to the aggregate purchase price
due at exercise;
(d) Cash payment by a broker-dealer acceptable to the
Company; or
(e) Combination of (a), (b), and (c).
Name
Date
Page 2
6. Expiration Date of Option:
7. Non-Transferability of Options:
During your lifetime the options shall be exercised only
by you. No assignment or transfer of options, whether
voluntary or involuntary, by operation of law or
otherwise, can be made except by will or the laws of
descent and distribution or pursuant to beneficiary
designation procedures approved by the Company.
8. Termination of Employment:
(a) By Death or Disability: Shares which are vested as
of the date of Death or Disability may be purchased
until the earlier of: (i) the expiration date of this
option; or (ii) the first anniversary of the date of
Death or Disability. Shares which are not vested as
of the date of Death or Disability shall immediately
terminate, and shall be forfeited to the Company.
(b) By Retirement: Shares which are vested as of the
date of Retirement may be purchased until the earlier
of: (i) the expiration date of this option; or (ii)
the third anniversary date of Retirement. Shares
which are not vested as of the date of Retirement
shall immediately terminate, and shall be forfeited
to the Company.
(c) For other reasons: Shares which are vested as of the
date of termination of employment may be purchased
until the earlier of: (i) the expiration date of
this option; or (ii) the end of the thirtieth day
following the date of termination of employment
(except in the case of termination for "Cause," in
which case, no additional exercise period shall be
permitted beyond the date of termination). Shares
which are not vested as of the date of employment
termination shall immediately terminate, and shall be
forfeited to the Company.
9. Change in Control:
In the event of a Change in Control, all shares under this
option shall become immediately vested 100 percent, and
shall remain exercisable for their entire term.
Refer any questions you may have regarding your stock option to
Xxxxxxx X. Xxxx, Vice President, Member and Community Relations.
Name
Date
Page 3
Please acknowledge your agreement to participate in the Plan and
this Agreement, and to abide by all of the governing terms and
provisions, by signing below, and return the original signed
letter to Xxxxxxx X. Xxxx, Vice President, Member and Community
Relations, in the enclosed self-addressed envelope; please make a
copy of the letter for your files.
Once again, congratulations on the receipt of your stock option
award.
Sincerely,
Xxxx X. Xxxxxxxx
Chairman, President and CEO
Enc.
********************************************************************
HON INDUSTRIES Inc. Stock-Based Compensation Plan
Agreement to Participate
By signing a copy of this Agreement and returning it
to Xxxxxxx X. Xxxx, Vice President, Member and
Community Relations, I acknowledge that I have read
the Plan, and that I fully understand all of my
rights under the Plan, as well as all of the terms
and conditions which may limit my eligibility to
exercise this option. Without limiting the
generality of the preceding sentence, I understand
that my right to exercise this option is conditioned
upon my continued employment with the Company.
____________________________________ _________________
Name Date
