Exhibit 10.20
EXIDE CORPORATION
1997 STOCK OPTION PLAN
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SECTION 1. Definitions.
When the following terms are used herein with initial capital letters, they
shall have the following meanings:
AWARD. An Option Agreement granted under this Plan, which shall be vested
ten (10) years after the Award is granted, or as otherwise provided in Section 5
hereof.
CODE. The Internal Revenue Code of 1986, as it has been and may hereafter
be amended from time to time, and any proposed, temporary or final Treasury
Regulations promulgated thereunder.
COMMITTEE. A committee of the Board of Directors of the Company designated
by such Board to administer this Plan, which shall consist of members appointed
from time-to-time by the Board of Directors and shall be comprised of not less
than such number of directors as shall be required to permit the Plan to satisfy
the requirements of Rule 16b-3 of the Rules. Each member of the Committee shall
be a "Non-Employee Director" within the meaning of Rule 16b-3. All members of
the Committee shall be "outside directors" within the meaning of Section 162(m)
of the Code or its successor as then amended, to the extent applicable.
COMPANY. Exide Corporation, a Delaware corporation.
OPTION. The contract right of a Participant to purchase a defined number
of shares of the Company, at the closing price on May 1, 1997 of $16.625 per
share on the New York Stock Exchange, or at such other closing price on such
other date as is set by the Committee, and subject to the terms of this Plan.
OPTION AGREEMENT. Any written agreement, contract or other instrument or
document evidencing any Option to purchase shares granted under this Plan, such
as the attached form "Stock Option Agreement", or such other form agreement as
may be adopted by the Committee.
PARTICIPANT. Employees of the Company and its subsidiaries and affiliates
designated by the Committee.
PLAN. This Exide Corporation 1997 Stock Option Plan.
RULES. The Rules and Regulations under the Securities Exchange Act of
1934, as it has been and may hereafter be amended from time to time, and any
temporary or final Securities and Exchance Commission Rules or Regulations
promulgated thereunder.
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STOCK. The shares of Common Stock, $.01 par value, of the Company or such
other securities or property as may become subject to Options pursuant to an
adjustment made under Section 3.3 of this Plan.
SECTION 2. Administration.
2.1 COMMITTEE. This Plan shall be administered by the Committee. Subject
to the express provisions of the Plan and to applicable law, including without
limitation the provisions of Section 162(m) of the Code, the Committee shall
have full power and authority to: (i) designate Participants; (ii) determine the
type or types of Awards to be granted to each Participant under the Plan; (iii)
determine the number of shares of Stock to be covered by each Option Agreement;
(iv) determine the terms and conditions of any Award; (v) amend the terms and
conditions of any Award and/or accelerate the exercisability of Options or the
lapse of restrictions relating to any Awards; (vi) interpret and administer the
Plan and any instrument or agreement relating to, or Award made under, the Plan;
(vii) establish, amend, suspend or waive such rules and regulations and appoint
such agents as it shall deem appropriate for the proper administration of the
Plan; and (viii) make any other determination and take any other action that the
Committee deems necessary or desirable for the administration of the Plan.
Unless otherwise expressly provided in the Plan, all designations,
determinations, interpretations and other decisions under or with respect to the
Plan or any Award shall be within the sole discretion of the Committee, and may
be made at any time and shall be final, conclusive and binding upon any
Participant, any holder or beneficiary of any Award and any employee of the
Company or any affiliate thereof.
2.2 PARTICIPANT DETERMINATIONS. Not later than 60 days after this Plan is
established, and subject to annual review as appropriate, the Committee shall
designate Participants who are eligible to receive Awards.
2.3 STOCKHOLDER APPROVAL. The material terms of this Plan shall be
disclosed to and approved by the stockholders of the Company at the Company's
1997 annual meeting of stockholders in accordance with Section 162(m) of the
Code. No exercise of an Option shall occur under this Plan unless such
stockholder approval has been obtained.
SECTION 3. Options.
3.1 GRANT. The Committee is hereby authorized to Award Options to
Participants with the terms and conditions provided herein, with the terms and
conditions provided in the attached form "Stock Option Agreement" which is
incorporated herein, and/or with such additional terms and conditions not
inconsistent with provisions of the Plan as the Committee shall determine,
subject to stockholder approval.
(a) EXERCISE PRICE. The purchase price per Share purchasable under an
Option Agreement shall be determined by the Committee; provided, however, that
such purchase price shall not be less than 100% of the fair market value of a
share of Stock on the date of grant of such Option as reasonably determined by
the Committee.
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(b) OPTION TERM. The term of each Option shall be fixed by the
Committee.
(c) TIME AND METHOD OF EXERCISE. The Committee shall determine the
time or times at which an Option may be exercised in whole or in part and the
method or methods by which, and the form or forms (including, without
limitation, cash, Shares, promissory notes, other securities or other property,
or any combination thereof, having a fair market value on the exercise date
equal to the relevant exercise price) in which payment of the exercise price
with respect thereto may be made or deemed to have been made.
3.2 SHARES AVAILABLE. Subject to adjustment as provided in Section 3.3
hereof, the aggregate number of shares of Stock available for granting Options
pursuant to Option Agreements under the Plan shall be 2,000,000. Shares to be
issued under the Plan may be either shares of Stock reacquired and held in the
treasury or authorized but unissued shares. If any shares of Stock covered by
an Option are not purchased or are forfeited, or if an Option otherwise
terminates without delivery of any shares, then the number of Shares counted
against the aggregate number of shares of Stock available under the Plan with
respect to such Option, to the extent of any such forfeiture or termination,
shall again be available for granting Options under this Plan.
3.3 ADJUSTMENT. In the event that the Committee shall determine that any
dividend or other distribution (whether in the form of cash, shares of Stock,
other securities, or other property), recapitalization, stock split, reverse
stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase or exchange of shares or other securities of the
Company, issuance of warrants or other rights to purchase Shares or other
securities of the Company or other similar corporate transaction or event
affects the shares such that an adjustment is determined by the Committee to be
appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan, then the
committee shall, in such manner as it may deem equitable, adjust any or all of
(i) the number and type of shares (or other securities or other property) which
thereafter may be made the subject of Options, (ii) the number and type of
shares (or other securities or other property subject to outstanding Options)
and securities or other property subject to outstanding Options) and (iii) the
purchase or exercise price with respect to any Options; provided, however, that
the number of shares covered by any Option or to which such Options relate shall
always be a whole number.
3.4 WITHHOLDING. In order to comply with all applicable federal, state or
other governmental income tax laws or regulations in the United States of
America or other jurisdictions where the Company employs personnel, the Company
may take such action as it deems appropriate to ensure that all applicable
federal, state or other jurisdiction payroll, withholding, income or other
taxes, which are the sole and absolute responsibility of a Participant, are
withheld or collected from such Participant. In order to assist a Participant
in paying all or a portion of the federal, state or other jurisdiction taxes to
be withheld or collected upon exercise or receipt of (or the lapse of
restrictions relating to) an Option, the Committee, in its sole discretion and
subject to such additional terms and conditions as it may adopt, may permit the
Participant to satisfy such tax obligation by (i) electing to have the Company
withhold a portion of the Stock otherwise to be delivered upon exercise or
receipt of such Option with a fair market value, as reasonably determined by the
Committee, equal to the amount of such taxes or (ii) delivering to the Company
Stock other than Stock issuable upon
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exercise or receipt of such Option with such fair market value equal to the
amount of such taxes. The election, if any, must be made on or before the date
that the amount of tax to be withheld is determined.
3.5 TERM OF PLAN. This Plan shall end June 1, 2007.
SECTION 4. Limitations.
4.1 AWARDS. Awards pursuant to this Plan shall not be made after May 1,
1998 except as otherwise determined by the Committee, and/or to re-award
previously forfeited Awards.
4.2 LIMITATION ON EXERCISE OF AWARDS. No Options may be exercised after
June 1, 2007.
4.3 COMMITTEE MAY REDUCE AWARD. With respect to any Participant, except
for Participants who received awards as of the May 1, 1997 date of adoption of
the Plan, the Committee retains sole discretion to reduce the amount of any
Award under this Plan.
4.4 INDIVIDUAL LIMIT. No Participant shall be granted Options covering
more than a total of 1,000,000 shares of Stock.
SECTION 5. Exercise of Stock Options.
5. TIME AND FORM OF OPTION EXERCISE. Subject to rules established by the
Committee and to Section 6(c), Options may be exercised by the Participant
pursuant to an Option Agreement only if the Participant is an active employee of
the Company at the time exercise of the Option is to occur (i.e., a Participant
who leaves the employ of the Company for any reason forfeits both Options not
vested, and in the instance of vested Options, forfeits all Options which have
vested but have not been exercised).
(a) 100% vesting ten (10) years after the 1997 date of the Award of
the Option Agreement, i.e., upon May 1, 2007, or
(b) Forty percent (40%) vesting upon the Company Stock price once
reaching thirty dollars ($30.00) per share, an additional forty percent (40%)
vesting upon Company Stock price once reaching fifty dollars ($50.00) per share,
and an additional twenty percent (20%) vesting upon Company Stock price once
reaching seventy-five dollars ($75.00) per share (i.e., an aggregate 100%
vesting when $75.00 per share has been once attained). The Stock price shall be
determined by the closing price on the stock exchange on which the Company is
listed. In the event of vesting pursuant to this Section 5(b), a vested Option
may only be exercised as follows:
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DATE PERCENT OF EACH SEPARATE VESTED
---- -------------------------------
OPTION WHICH MAY BE EXERCISED
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Immediately upon Vesting 40%
1st Anniversary Date of Vesting 20%
2nd Anniversary Date of Vesting 20%
3rd Anniversary Date of Vesting 20%
Total 100%
PROVIDED HOWEVER, all Options shall be vested May 1, 2007 and may be
exercised until June 1, 2007, at which time Options not exercised are forfeited,
when the Plan then terminates.
SECTION 6. General Terms of Awards.
(a) NO CASH CONSIDERATIONS FOR AWARDS. Awards shall be granted for no
cash consideration or for such minimal cash consideration as may be required by
applicable law.
(b) AWARDS MAY BE GRANTED SEPARATELY OR TOGETHER. Awards may, in the
sole discretion of the Committee, be granted either alone or in addition to, in
tandem with or in substitution for any other Award or any award granted under
any plan of the Company. Awards granted in addition to or in tandem with other
Awards or in addition to or in tandem with awards granted under any such other
plan of the Company may be granted either at the same time as or at a different
time from the grant of such other Award or awards.
(c) LIMITS ON TRANSFER OF AWARDS. No Award and no right under any
such Award shall be transferable by a Participant otherwise than by will or by
the laws of descent and distribution. Any Option transferred by will or the laws
of descent and distribution may only be exercised to the extent it was
exercisable on the date of death and only within one year of death. Each Award
or right under any Award shall be exercisable during the Participant's lifetime
only by the Participant or, if permissible under applicable law, by the
Participant's guardian or legal representative; provided however no Award may be
exercised except by an active employee of the Company. No Award or right under
any such Award may be pledged, alienated, attached or otherwise encumbered, and
any purported pledge, alienation, attachment or encumbrance thereof shall be
void and unenforceable against the Company or any affiliated Company.
(d) RESTRICTIONS; SECURITIES EXCHANGE LISTING. All certificates for
Stock or other securities delivered under the Plan pursuant to the exercise of
any Option shall be subject to such stop transfer orders and other reasonable
restrictions as the Committee may deem advisable under the Plan or the rules,
regulations and other requirements of the Securities and Exchange Commission and
any applicable federal or state securities laws, and the Committee may cause a
legend or legends to be placed on any such certificates to make appropriate
reference to such restrictions. If the Stock or other securities are traded on a
securities exchange, the Company shall not be required to deliver
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any Stock or other securities have been admitted for trading on such securities
exchange. The Company shall use its reasonable efforts to provide for the
registration of the securities covered by the Options pursuant to Form S-8 under
the Securities Act of 1933, as amended.
SECTION 7. AMENDMENT AND TERMINATION; ADJUSTMENTS. Except to the extent
prohibited by applicable law and unless otherwise expressly provided in an Award
or in the Plan:
(a) AMENDMENTS TO THE PLAN. The Board of Directors of the Company
may amend, alter, suspend, discontinue or terminate the Plan; provided, however,
that, notwithstanding any other provision of the Plan or any Award, without the
approval of the stockholders of the Company, no such amendment, alteration,
suspension, discontinuation or termination shall be made that, absent such
approval, would violate the rules or regulations of the NYSE, any other
securities exchange or the National Association of Securities Dealers, Inc. that
are applicable to the Company.
(b) AMENDMENTS TO AWARDS. The Committee may waive any conditions of
or rights of the Company under any outstanding Award, prospectively or
retroactively. The Committee may not amend, alter, suspend, discontinue or
terminate any outstanding Award, prospectively or retroactively, without the
consent of the Participant or holder or beneficiary thereof, except as otherwise
herein provided.
(c) CORRECTION OF DEFECTS, OMISSIONS AND INCONSISTENCIES. The
Committee may correct any defect, supply any omission or reconcile any
inconsistency in the Plan or any Award in the manner and to the extent it shall
deem desirable to carry the Plan into effect.
SECTION 8. Miscellaneous.
8.1 EFFECTIVE DATE. The Plan shall be effective as of May 1, 1997, and an
Award may be granted pursuant to the Plan at any time on or after the effective
date, subject to stockholder approval.
8.2 HEADINGS. Headings are given to the Sections and subsections of the
Plan solely as a convenience to facilitate reference. Such headings shall not
be deemed in any way material or relevant to the construction or interpretation
of the Plan or any provision thereof.
8.3 APPLICABILITY TO SUCCESSORS. This Plan shall be binding upon and
inure to the benefit of the Company and each signatory Participant, the
successors and assigns of the Company, and the beneficiaries, personal
representatives and heirs of each Participant.
8.4 EMPLOYMENT RIGHTS AND OTHER BENEFIT PROGRAMS. The provisions of this
Plan shall not give any Participant any right to be retained in the employment
of the Company. In the absence of any specific agreement to the contrary, this
Plan shall not affect any right of the Company, or of any affiliate of the
company, to terminate, with or without cause, the participant's employment at
any time. This Plan is in addition to, and not in lieu of, any other employee
benefit plan or program in which any Participant may be or become eligible to
participate by reason of employment with the Company. Receipt of benefits
hereunder shall have such effect on
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contributions to and benefits under such other plans or programs as the
provisions of each such other plan or program may specify.
8.5 NO RIGHTS TO AWARDS. No Participant shall have any claim to be
granted any Award under the Plan, and there is no obligation for uniformity of
treatment of Participants or holders or beneficiaries of Awards under the Plan.
The terms and conditions of awards need not be the same with respect to any
Participant or with respect to different Participants.
8.6 NO LIMIT ON OTHER COMPENSATION ARRANGEMENTS. Nothing contained in the
Plan shall prevent the Company from adopting or continuing in effect other or
additional compensation arrangements, and such arrangements may be either
generally applicable or applicable only in specific cases.
8.7 NO TRUST OR FUND CREATED. This Plan shall not create or be construed
to create a trust or separate fund of any kind or a fiduciary relationship
between the Company or any affiliate and a Participant or any other person. To
the extent that any person acquires a right to receive payments from the Company
or any affiliate pursuant to this Plan, such right shall be no greater than the
right of any unsecured general creditor of the Company or of any affiliate.
8.8 GOVERNING LAW. The validity, construction and effect of the Plan or
any bonus payable under the Plan shall be determined in accordance with the
internal laws, and not the laws of conflicts, of the State of Delaware.
8.9 SEVERABILITY. If any provision of the Plan is or becomes or is deemed
to be invalid, illegal or unenforceable in any jurisdiction such provision shall
be construed or deemed amended without, in the determination of the Committee,
materially altering the purpose or intent of the Plan, such provision shall be
stricken as to such jurisdiction, and the remainder of the Plan shall remain in
full force and effect.
This Plan was approved by the Board of Directors at 11:10 a.m. as of May 1,
1997 at Wilmington, Delaware.
____________________________
Corporate Secretary
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THE BUREAU OF NATIONAL AFFAIRS INC. 0000 XXXXXX XXXXX, XXXXXXXX XXX, XX 00000
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DISTRICT REPRESENTATIVE CUSTOMER RELATIONS: 1-800-372-1003
June 16, 1998
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Exide Corp
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Xx. Xxx Xxxx,
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