EXHIBIT 10.9

 

M E M O R A N D U M

 

Date:   August 25, 2003

 

To:   All Ducommun Incorporated Stock Option Holders

 

From:   Jim Heiser

 

Re:   Amendment to Existing Stock Option Agreements

 

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The Compensation Committee of the Board of Directors has approved an amendment
to all existing stock option agreements to clarify the definition of
“retirement” in Section 5(b) of the stock option agreements. As a result,
Section 5(b) of all existing stock option agreements shall be deleted in its
entirety and replaced with the following:

 

(b) Retirement or Permanent Disability. If the Option Holder retires or becomes
permanently disabled, this option may be exercised (for not more than the number
of shares as to which the Option Holder might have exercised this option on the
date of his or her retirement or permanent disability) at any time prior to the
Expiration Date. As used herein, “retirement” shall mean the date on which the
Option Holder voluntarily terminates his or her employment with the Corporation
or a Subsidiary with the permanent intention of not seeking other employment or
becoming self-employed except for consulting, part-time employment and such
other exceptions as the Committee may determine are appropriate. “Permanent
disability” shall mean the date on which the Option Holder has not worked or
been able to work due to physical or mental incapacity for a period of 180
consecutive days. In order to qualify for “retirement,” if requested by the
Corporation the Option Holder shall execute a declaration on the date of the
termination of employment with the Corporation or a Subsidiary in such form as
the Corporation may reasonably request certifying that he or she meets the
definition of “retirement.” If at any time following retirement, the Option
Holder ceases to meet the definition of “retirement” this option may be
exercised (for not more than the number of shares as to which the Option Holder
might have exercised this option on the date on which his or her employment was
terminated) at any time (i) prior to the Expiration Date in the event the
Expiration Date is not more than three months following the date on which he or
she ceased to meet the definition of “retirement,” or (ii) within such
three-month period, in the event that the Expiration Date is more than three
months following the date on which the Option Holder ceased to meet the
definition of “retirement.”

 

To confirm your agreement with the foregoing, please sign a copy of this
memorandum in the space below and return it to me.

 

ACCEPTED AND AGREED:        

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  Date:  

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