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EXHIBIT 10.14
Xxxxxx Industries, Inc.
Nonqualified Stock Option Agreement
Granted to:
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Grant Date
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Number of Shares of Xxxxxx Industries
Common Stock
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Option Price Per Share
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Employee Number
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Expiration Date
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Division
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This Agreement is made between Xxxxxx Industries, Inc., an Ohio corporation,
having its principal office in Houston, Texas (the "Company"), and the
undersigned, an employee of the Company or a subsidiary of the Company (the
"Employee"). The parties hereto have agreed as follows:
1. Pursuant to the Xxxxxx Industries, Inc. Stock Incentive Plan (the
"Plan"), the Company grants to the Employee an Incentive Stock Option ("Option")
to purchase the above stated number of shares of the Company's Common Stock, par
value $5 per share (the "Shares"), at the price stated above, subject to the
following conditions:
(a) The Option rights are exercisable only if and after the Employee shall
have remained in the employ of the Company for one year from the date of grant
of this Option (the "Grant Date"). The Option shall become exercisable to the
extent of only 33 1/3% of the aggregate number of Shares above specified, after
one year, 66 2/3% after two years, and 100% after three years from the Grant
Date.
(b) During the lifetime of the Employee, the Option rights are exercisable
only by the Employee, and, except as otherwise provided in Sections 2, 3 and 4
below, only if the Employee has remained continuously in the employ of the
Company from the Grant Date.
(c) The Option rights shall expire at the end of the period of 10 years
commencing with the Grant Date, or upon such earlier expiration or termination
date as may be provided by Sections 2, 3, 4 or 9 hereof and such Option rights
shall not be exercisable thereafter.
2. If, after the expiration of one year from the Grant Date, the Employee
shall cease to be employed by the Company for any reason other than death,
disability or retirement, the Option rights shall terminate immediately. If
cessation of employment is occasioned by retirement in accordance with any
retirement plan of the Company then in effect, then the Employee may exercise
the Option rights following such retirement for a period of five years after
retirement or until the Expiration Date, whichever is lesser.
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3. If, after the expiration of one year from the Grant Date, the Employee
shall cease employment as the direct result of disability (as defined in the
Company's qualified Salaried Pension Plan), all outstanding options granted to
the Employee become exercisable immediately and the Employee may exercise such
outstanding options for a period of one year after the cessation of employment
resulting from disability or until the Expiration Date, whichever is lesser,
irrespective of any restrictions to the contrary contained in Section 1(a)
above.
4. If, after the expiration of one year from the Grant Date, the Employee
shall die while in the employ of the Company, or while retired with exercisable
Options under Section 2, all outstanding options granted to the Employee become
exercisable immediately and the person entitled by will or the applicable laws
of descent and distribution may exercise such outstanding Options for a period
of one year after the date of death or until the Expiration Date, whichever is
lesser, irrespective of any restrictions to the contrary contained in Section
1(a) above.
5. The Option may be exercised by delivering to the Company at its
principal executive office (directed to the attention of the Secretary or
Assistant Secretary) a written notice, signed by the Employee or a person
entitled by will or the laws of descent and distribution to exercise the Option,
as the case may be, of the election to exercise the Option and stating the
number of Shares in respect of which it is then being exercised. The Option
shall be deemed exercised as of the date the Company receives such notice. Such
notice shall, and as an essential part thereof, be accompanied by the payment of
the full purchase price of the Shares then to be purchased. In the event the
Option shall be exercised, as provided herein, by any person other than the
Employee, such notice shall be accompanied by appropriate evidence of the right
of such person to exercise the Option. Payment of the full purchase price may be
made in (a) cash, (b) shares of the Company's Common Stock ("Stock"), or (c) any
combination of cash and Stock, provided that any Stock used by the Employee in
payment of the purchase price must have been acquired (whether by purchase,
exchange or otherwise) by the Employee and held for a period of more than six
months, and provided further that the Company reserves the right to prohibit the
use of Stock as payment of the purchase price. Stock used in payment of the
purchase price shall be valued at the average of the high and low trading prices
of such Stock on the New York Stock Exchange or as reported in the consolidated
transaction reporting system for the date of exercise. Upon the proper exercise
of the Option, the Company shall issue in the name of the person exercising the
Option, and deliver to such person, a certificate for the Shares purchased. The
Employee agrees that as holder of the Option he or she shall have no rights as
shareholder in respect of any of the Shares as to which the Option shall not
have been effectively exercised as herein provided and that no rights as a
shareholder shall arise in respect of any Shares as to which the Option shall
have been duly exercised until and unless a certificate for such Shares shall
have been issued.
6. This Option shall not be exercisable if such exercise would violate:
(a) Any applicable state securities law;
(b) Any applicable registration or other requirements under the Securities
Act of 1933, as amended (the "Act"), the Securities Exchange Act of 1934, as
amended, or the listing requirements of any stock exchange; or
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(c) Any applicable legal requirement of any other governmental authority.
Furthermore, if a registration statement with respect to the Shares to be issued
upon the exercise of this Option is not in effect or if counsel for the Company
deems it necessary or desirable in order to avoid possible violation of the Act,
the Company may require, as a condition to its issuance and delivery of
certificates for the Shares, the delivery to the Company of a written statement
that the Employee is acquiring such Shares for investment only and not with a
view to, or for resale in connection with, the distribution thereof; that such
person understands that the Shares may be "restricted securities" as defined in
Rule 144 issued under the Act; and that any resale, transfer or other
disposition of said Shares will be accomplished only in compliance with Rule
144, the Act, or other or subsequent applicable rules and regulations
thereunder. The Company may place on the certificates evidencing such Shares an
appropriate legend reflecting the aforesaid statement and the Company may refuse
to permit transfer of such certificates until it has been furnished evidence
satisfactory to it that no violation of the Act or the rules and regulations
thereunder would be involved in such transfer.
7. In consideration of the granting of this Option by the Company, the
Employee agrees that he or she will remain in the employ of the Company for a
period of not less than one year from the Grant Date unless during said period
his or her employment shall be terminated on account of incapacity or with the
consent of the Company. Nothing herein contained shall limit or restrict any
right which the Company would otherwise have to terminate the employment of the
Employee.
8. This Option and the Option rights granted hereunder are not assignable
or transferable or subject to any disposition by the Employee otherwise than by
will or by the laws of descent and distribution.
9. In the event of a reorganization, recapitalization or other change in
the capital stock, corporate structure or business of the Company, the Board of
Directors shall make appropriate adjustments to the number of Shares subject to
the Option and the exercise price so as to maintain the proportionate interest
of the Employee and preserve the value of the Option. In the event of a Change
in Control of the Company, outstanding Options shall be settled by a cash
payment in accordance with Section 18.2 of the Plan.
10. For purposes of this Agreement, employment by a parent or subsidiary of
or a successor to the Company shall be considered employment by the Company.
11. The Committee shall have authority, subject to the express provisions
of the Plan, to construe this Agreement and the Plan, to establish, amend and
rescind rules and regulations relating to the Plan, and to make all other
determinations in the judgment of said Committee necessary or desirable for the
administration of the Plan. The Committee may correct any defect or supply any
omission or reconcile any inconsistency in the Plan or in this Agreement in the
manner and to the extent it shall deem expedient to carry the Plan into effect.
All action by the Committee under the provisions of this paragraph shall be
conclusive for all purposes.
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12. Notwithstanding any provisions hereof, this Agreement and the Option
granted hereunder shall be subject to all of the provisions of the Plan as are
in effect from time to time, which provisions are incorporated herein by
reference.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in duplicate
as of the Grant Date first above written.
Xxxxxx Industries, Inc.
By
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Employee Signature
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Social Security No.
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Home Address
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