EXHIBIT 10.10

 

EXECUTIVE LONG-TERM INCENTIVE

 

AWARD AGREEMENT (ALTERNATE FORM)

 

NON-QUALIFIED STOCK OPTIONS

 

Effective as of              (“Grant Date”), the Company hereby grants to
[Employee] certain rights to purchase up to: [# of Shares] total Option Shares
for $[Price] per Share until [6th Anniversary of Grant Date] (“Expiration Date”)
on the Terms of this Agreement, the attached Program, and the 2004 Sypris Equity
Plan (“Plan”) as follows:

 

Vesting Dates

--------------------------------------------------------------------------------

   # of Options
Vesting

--------------------------------------------------------------------------------

  Option Prices

--------------------------------------------------------------------------------

   Expiration Dates

--------------------------------------------------------------------------------

[3rd Anniversary]

   30%   $             [6th Anniversary]

[4th Anniversary]

   30%   $             [6th Anniversary]

[5th Anniversary]

  

40%

  $             [6th Anniversary]

 

RESTRICTED STOCK

 

Effective as of              (“Grant Date”), the Company hereby grants to
[Employee] certain rights to ownership of up to: [# of Shares] total Restricted
Shares on the Terms of this Agreement, the attached Program, and the 2004 Sypris
Equity Plan (“Plan”) as follows:

 

Vesting/Forfeiture Dates and Performance Criteria

--------------------------------------------------------------------------------

  

# of Shares to be

Vested or Forfeited

--------------------------------------------------------------------------------

As of             , the Company has reported net income of $            , for
any fiscal year ending after the Grant Date.*

   33%

As of             , the Company has reported net income of $            , for
any fiscal year ending after the Grant Date.*

   33%

As of             , the Company has reported net income of $            , for
any fiscal year ending after the Grant Date.*

  

34%

--------------------------------------------------------------------------------

* Subject to the Committee’s final determination, that as of the dates set forth
above, the criteria set forth above have been achieved as reported,
independently audited and have not been materially restated thereafter, the
“independent” members of the Committee (as defined in the NASD Manual) shall
either approve the final vesting, or the forfeiture, of these Restricted Shares.

 

Intending to be legally bound by all such Terms, I acknowledge the sole
authority of the Committee to interpret such Terms, the forfeiture of my rights
upon any termination of my employment under such Terms and my continuing status
as an “at will” employee (subject to termination without cause or notice). I
have received and had an opportunity to review, with the benefit of any legal
counsel of my choosing, the Plan, the Program and this Award Agreement.

 

SYPRIS SOLUTIONS, INC.         PARTICIPANT By:  

 

--------------------------------------------------------------------------------

        Signature:  

 

--------------------------------------------------------------------------------

Name:  

 

--------------------------------------------------------------------------------

        Name:  

 

--------------------------------------------------------------------------------

Title:  

 

--------------------------------------------------------------------------------

        Title:  

 

--------------------------------------------------------------------------------

 

- 1 -

--------------------------------------------------------------------------------

STANDARD TERMS OF AWARDS GRANTED UNDER

THE 2005 EXECUTIVE LONG-TERM INCENTIVE PROGRAM

OF THE 2004 SYPRIS EQUITY PLAN

 

1. PURPOSE OF THE PROGRAM. The Company’s Executive Long-Term Incentive Program
(“ELTIP”) under the 2004 Sypris Equity Plan (“Plan”) shall be effective for all
Awards incorporating these Terms on or after July 1, 2005, to advance the
Company’s growth and prosperity by providing long-term financial incentives to
its executives, and to further the Company’s philosophy of equity ownership by
the Company’s officers in accordance with the Company’s Equity Ownership
Guidelines.

 

2. AWARDS. Each ELTIP Participant will be eligible to receive an annual Award of
Options and an annual Award of Restricted Shares as determined by the Committee.

 

3. OPTIONS. Initially, each “Option” is the right to purchase one Option Share
at the Option Price, from its Vesting Date until its Expiration Date or
forfeiture (subject to adjustments per the Plan). Options must be exercised with
48 hours advance written notice, unless waived by the Company.

 

  3.1. Option Price. “Option Price” means the closing price per Option Share on
the Grant Date. The Option Price is payable to the Company in cash or any other
method of payment authorized by the Committee in its discretion, which may
include Stock (valued as the closing price per Share on the exercise date) or
vested Options (valued as the closing price per Share on the exercise date, less
the Option Price), in each case in accordance with applicable Rules. Similarly,
the Participant must arrange for tax withholding in accordance with applicable
Rules, to the satisfaction of the Committee.

 

  3.2. Option Shares. Initially, each “Option Share” is one Share of the Common
Stock (subject to adjustments per the Plan). Option Shares may be certificated
upon request, with any legends required by applicable Rules.

 

  3.3. Option Vesting. Unless otherwise determined by the Committee, Option
Awards will vest 30% on the third anniversary of its Grant Date, 30% on the
fourth anniversary of its Grant Date and 40% on the fifth anniversary of its
Grant Date (each such anniversary, a “Vesting Date”), unless forfeited before
such Vesting Date.

 

  3.4. Expiration Date. Each Option’s “Expiration Date” will be the sixth
anniversary of its Grant Date.

 

4. RESTRICTED SHARES. Each “Restricted Share” is one Share of the Common Stock
(subject to adjustments per the Plan) which is subject to forfeiture before its
Vesting Date, as set forth below.

 

- 2 -

--------------------------------------------------------------------------------

  4.1. Restricted Share Vesting. Unless otherwise determined by the Committee,
grants of Restricted Shares will vest approximately 33% on the third anniversary
of its Grant Date, 33% on the fifth anniversary of its Grant Date and 34% on the
seventh anniversary of its Grant Date (each such anniversary, a “Vesting Date”),
unless forfeited before such Vesting Date.

 

  4.2. Distribution. All Restricted Shares will be held by the Company until
their Vesting Dates, and physically distributed to the Participant thereafter,
with any legends required by applicable Rules. Participants may vote and receive
cash dividends on such Restricted Shares, as applicable, after the Grant Date.

 

5. ANNUAL REVIEW. The Committee will review the terms and conditions of the
ELTIP annually in February of each year. The Committee will also review and
approve of the Award to be granted to each Participant for the then current
year, taking into consideration the (i) Participant’s contribution to the
Company, (ii) results of the most recent national compensation survey data, and
(iii) Company’s performance with respect to the achievement of its long-term
strategic goals, including those relating to market and customer share,
geographic expansion, portfolio mix, capital structure and financial strength,
managerial development, capital markets, financial variability and risk profile.

 

6. REDUCTION IN JOB RESPONSIBILITIES. If a Participant’s job responsibilities
are reduced in scope or otherwise altered, the Participant shall automatically
cease to participate in the ELTIP with respect to future Awards, unless
otherwise determined by the Committee.

 

7. RETIREMENT OR DISABILITY. In the event of any retirement after age 65 or
qualification to receive long-term disability benefits under the Company’s then
current policies, such retirement or disability period shall be treated as a
period of employment for purposes of the accrual of rights hereunder, including
any vesting or exercise rights.

 

8. LEAVES OF ABSENCE. The Committee may in its discretion treat all or any
portion of any period during which a Participant is on military or other
approved leave of absence as a period of employment for purposes of the accrual
of rights hereunder.

 

9. OTHER TERMINATIONS. If employment is terminated other than for retirement,
death or disability, each unvested Option or Restricted Share will be forfeited
immediately and the Participant will have up to thirty (30) days in which to
exercise any vested Options. In the event of death, all unvested Awards will be
immediately vested, and the Participant’s representative or estate shall have
one (1) year in which to exercise any Options.

 

10.

ADMINISTRATION. The Committee shall have complete authority to administer or
interpret the ELTIP or any Award, to prescribe, amend and rescind rules and
regulations relating thereto, and to make all other determinations necessary or
advisable for the administration of the ELTIP or any Award Agreements (including
to establish or amend any rules regarding the ELTIP that are necessary or
advisable to comply with, or qualify under, any applicable law,

 

- 3 -

--------------------------------------------------------------------------------

 

listing requirement, regulation or policy of any entity, agency, organization,
governmental entity, or the Company, in the Committee’s sole discretion
(“Rule”)). In addition, with respect to any future grants or the unvested
portion of any Awards, the Committee may amend or terminate these Terms or any
Awards, in its sole discretion without the consent of any employee or
beneficiary, subject to applicable Rules, at any time and from time-to-time.
With respect to any amendment, action or approval hereunder, the Committee may
require the approval of any other persons or entities, pursuant to applicable
Rules. The decisions of the Committee in interpreting and applying the ELTIP
will be final.

 

11. MISCELLANEOUS. Unless otherwise specified, all capitalized terms herein
shall have the meanings assigned to them in the Plan or in the Award Agreement.

 

  11.1. No Other Rights. The Awards include no other rights beyond those
expressly provided in the Plan, the ELTIP or the Award Agreement. Awards are
non-assignable and non-transferable except by will or the laws of descent and
distribution, unless otherwise approved by the Committee.

 

  11.2. Taxes. The Participant must pay in cash, surrender Shares or Options of
then-equivalent value, or otherwise arrange (to the Committee’s satisfaction)
for all tax withholding obligations related to any Award.

 

  11.3. Delegation. The Committee may delegate any portion of their
responsibilities and powers to one or more persons selected by them, subject to
applicable Rules. Such delegation may be revoked by the Committee at any time.

 

- 4 -