Form of Award Letter for Stock Options


 Exhibit 10.3 
 March 15, 2006 
 [Name] 
 [Title}

  

			
	Re:	 	WESTLAKE CHEMICAL CORPORATION
		
		 	NONQUALIFIED STOCK OPTION AWARD

 Dear
                    : 
 Westlake Chemical
Corporation (the ”Company”) is pleased to notify you that you have been granted a nonqualified stock option (“Option”), effective March 15, 2006 (the “Award Date”), to purchase
                     shares of common stock of the Company (“Common Stock”) in accordance with the Westlake Chemical Corporation
2004 Omnibus Incentive Plan (the “Plan”). Your award is more fully described in the attached Appendix A, Terms and Conditions of Nonqualified Stock Option Award. 
 The price at which you may purchase the shares of Common Stock covered by the Option is $             (the “Grant Price”). Unless otherwise
provided in the attached Appendix A, your Option will expire on the tenth anniversary of the Award Date (the “Expiration Date”), and will become exercisable in installments as follows (the “Schedule”): 
  

			
	 1. Period Beginning
	 	 2. Per Cent of Shares Purchasable

	 March 15, 2007
 March 15, 2008
 March 15, 2009
 March 15, 2010
	 	 25%
 25%
 25%
 25%


 You must be in continuous employment with the Company or one of its Subsidiaries (as defined in the Plan) from the
Award Date through each date on which your Option becomes exercisable in order for your Option to become exercisable on such date. Fractional shares will be rounded for purposes of vesting in accordance with Plan policy. 






 Your Award is subject to the terms and conditions set forth in the Plan and in the Prospectus for the Plan, both of which
have been previously provided to you. Your Award is also subject to any additional terms and conditions set forth in the attached Appendix A and any rules and regulations adopted by the Plan’s Administrator (as defined in the Plan). In
conjunction with this award we are also required to provide you with the most current relevant SEC filings by the Company; therefore, we refer you to the SEC Filings section of our web page, www.westlakechemical.com. 
 This award letter and the attachment contain the formal terms and conditions of your award and accordingly should be retained in your files for future reference. If you
have any questions regarding this award, you may contact Mr. David Hansen, Sr. Vice President, Administration, at 713-960-9111. 
  

	
	Very truly yours,
	
	 /s/ Albert Chao

	Albert Chao
	President and Chief Executive Officer

 Attachment 
 Appendix A 
 to Award Letter 
 dated 
  

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 March 15, 2006 
 Terms and Conditions of 
 Employee Nonqualified Stock Option Award 
 The nonqualified stock option (the “Option”) granted to you by Westlake Chemical Corporation (the ”Company”) to purchase common stock of the
Company (“Common Stock”) is subject to the terms and conditions set forth in the Westlake Chemical Corporation 2004 Omnibus Incentive Plan (the “Plan”), any rules and regulations adopted by the Administrator (as defined in the
Plan), and any additional terms and conditions set forth in this Appendix A which forms a part of the attached award letter to you (the “Award Letter”). Any terms used in this Appendix A and not defined in the Award Letter or
this Appendix A have the meanings set forth in the Plan. In the event there is an inconsistency between the terms of the Plan and this Appendix A, the terms of the Plan will control. 
  

	3.	Grant Price 

 You may purchase the shares of Common
Stock covered by the Option for the Grant Price stated in your Award Letter. 
  

	4.	Term of Option 

 Your Option expires on the
Expiration Date stated in your Award Letter. However, your Option will terminate prior to the Expiration Date as provided in Paragraph 6 of this Appendix A upon the occurrence of one of the events described in that paragraph. Regardless of the
provisions of Paragraph 6, in no event can your Option be exercised after the Expiration Date. 
  

	5.	Earn-out of Option 

  

	 	(a)	Unless it becomes vested and exercisable on an earlier date as provided in Paragraph 6 below, your Option will become vested and exercisable in cumulative installments as set forth
in the Schedule in your Award Letter. 

  

	 	(b)	To the extent your Option has become vested and exercisable, you may exercise the Option as to all or any part of the shares covered by the Option, at any time on or before the date
the Option expires or terminates, subject to any limitations imposed by law or by Company policy regarding transactions in Common Stock. 

  

	6.	Exercise of Option 

 Subject to the limitations and
the terms set forth in this Appendix A and the Plan, your Option may be exercised from time to time in accordance with the administrative procedures established by the Company in effect at the time of your exercise. In addition, if you have been
notified by the Company that you may be subject to certain exercise restrictions, your Option may only be exercised by written notice signed and delivered by you or another person entitled to exercise the Option to the General Counsel 
  

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 of the Company at its principal executive office in Houston, Texas, or as it may hereafter be located, as
set forth below. Such written notice shall (a) state the number of shares of Common Stock with respect to which your Option is being exercised and (b) subject to approval of your request to exercise, be accompanied by a wire transfer,
cashier’s check, cash, money order or other form of payment deemed acceptable by the Administrator or its designee and made payable to Westlake Chemical Corporation in the full amount of the Grant Price for any shares of Common Stock being
acquired and any appropriate withholding taxes (as provided in Paragraph 7 of this Appendix A), or by other consideration in the form and manner approved by the Administrator or its designee pursuant to Paragraphs 5 and 7 of this
Appendix A. In the alternative, the Administrator or its designee may prescribe other procedures for exercise of your Option. If any law or regulation requires the Company to take any action with respect to the shares specified in such notice,
the time for delivery thereof, which would otherwise be as promptly as possible, shall be postponed for the period of time necessary to take such action. You shall have no rights of a shareholder with respect to shares of Common Stock subject to
your Option unless and until such time as your Option has been exercised and ownership of such shares of Common Stock has been transferred to you. 
  

	7.	Satisfaction of Grant Price 

  

	 	(a)	Payment of Cash or Common Stock. Your Option may be exercised by payment in cash (including check, bank draft, money order or wire transfer payable to the Company), in Common
Stock, in a combination of cash and Common Stock or in such other manner as the Administrator in its discretion may provide. Payment in Common Stock shall only be permitted if and to the extent authorized by the Administrator.


  

	 	(b)	Payment of Common Stock. The Fair Market Value of any shares of Common Stock tendered as all or part of the Grant Price shall be determined as provided in the Plan. The
certificates evidencing shares of Common Stock tendered must be duly endorsed or accompanied by appropriate stock powers. Only stock certificates issued solely in your name may be tendered in exercise of your Option. Fractional shares may not be
tendered in satisfaction of the Grant Price; any portion of the Grant Price which is in excess of the aggregate Fair Market Value of the number of whole shares tendered must be paid in cash. If a certificate tendered in exercise of the Option
evidences more shares than are required pursuant to the immediately preceding sentence for satisfaction of the portion of the Grant Price being paid in Common Stock, an appropriate replacement certificate will be issued to you for the number of
excess shares. 

  

	 	(c)	Broker-Assisted Exercise. At your request or the request of another person entitled to exercise this Option, and to the extent permitted by applicable law, the Administrator
in its discretion may selectively approve “cashless exercise” arrangements with a brokerage firm under which such brokerage firm, on behalf of you or such other person exercising the Option, shall pay to the Company or its designee the
Grant Price of the Option or of the portion being exercised, and the Company or its designee, pursuant to an irrevocable notice from you or such other person exercising the Option, shall promptly deliver the shares being purchased to such firm.


  

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	8.	Termination of Employment 

  

	 	(a)	General. The following rules apply to your Option in the event of your death, disability or other termination of employment. 

  

	 	(i)	Involuntary Termination Without Cause. If your employment with the Company or a Subsidiary is terminated by the Company or any such Subsidiary without Cause, your Option
shall be exercisable to the extent vested on the date of your termination and shall become exercisable with respect to a portion of the previously unexercisable shares that were scheduled to become exercisable on the next vesting date, prorated for
the number of full months you were employed from the most recent vesting date until the date of your termination. With respect to all vested shares, regardless whether vested as a result of your termination of employment or vested prior thereto,
your Option shall remain exercisable for the longer of (i) 30 days following your termination date or (ii) the period during which you receive salary continuation under any separation agreement, policy, plan or other arrangement with
the Company or any of its Subsidiaries, but not to exceed 180 days following your termination date; provided, however, that in no event shall the Option be exercisable after the Expiration Date. Upon expiration of the foregoing period, your Option
shall terminate in all respects. 

  

	 	(ii)	Voluntary Termination. If you voluntarily terminate employment with the Company or a Subsidiary, including, without limitation, termination of employment due to retirement,
your Option shall be exercisable to the extent vested on the date of your termination. With respect to all vested shares, your Option shall remain exercisable until the first to occur of (i) 30 days following your termination date, or
(ii) the Expiration Date. Upon expiration of the foregoing period, your Option shall terminate in all respects. 

  

	 	(iii)	Termination with Cause. If your employment with the Company or a Subsidiary is terminated for Cause, your Option shall immediately terminate and shall no longer be
exercisable. 

  

	 	(iv)	Termination by Reason of Death. If your employment terminates by reason of death, your Option will become fully vested and exercisable and will remain exercisable until the
first to occur of (i) one year after the date of your termination, or (ii) the Expiration Date. 

  

	 	(v)	Termination by Reason of Disability. If your employment terminates by reason of total and permanent disability (as determined by the Administrator), your Option will be
exercisable to the extent vested on the 

  

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 date of your termination, and will remain exercisable until the first to occur of (i) 180 days
after the date of your termination, or (ii) the Expiration Date. Upon expiration of the foregoing period, your Option shall terminate in all respects. 
  

	 	(vi)	Adjustments by the Administrator. The Administrator may, in its sole discretion, exercised before or after your termination of employment, declare all or any portion of your
Option immediately vested and exercisable and/or permit all or any part of your Option to remain exercisable for such period designated by it after the time when the Option would have otherwise terminated as provided in the applicable portion of
this Paragraph 6(a), but not beyond the Expiration Date of your Option. 

  

	 	(b)	Administrator Determinations. The Administrator shall have absolute discretion to determine the date and circumstances of termination of your employment, and its
determination shall be final, conclusive and binding upon you. 

  

	 	(c)	Cause. For purposes of this Appendix A, Cause shall mean any of the following: 

  

	 	(i)	your conviction by a court of competent jurisdiction of any felony or a crime involving moral turpitude; 

  

	 	(ii)	your knowing failure or refusal to follow reasonable instructions given to you on behalf of the Company or reasonable policies, standards and regulations of the Company or any
Subsidiary; 

  

	 	(iii)	your continued failure or refusal to faithfully and diligently perform the usual, customary duties of your employment with the Company or any Subsidiary; 


 

	 	(iv)	continuously conducting yourself in an unprofessional, unethical or immoral manner; or 

  


	 	(v)	any fraudulent conduct or conduct which discredits the Company or any Subsidiary or is detrimental to the reputation, character and standing of the Company or any Subsidiary.


  

	9.	Tax Consequences and Withholding 

  

	 	(a)	You should consult the Plan Prospectus for a general summary of the federal income tax consequences of your Option based on currently applicable provisions of the Internal Revenue
Code (the “Code”) and related regulations. The summary does not discuss state and local tax laws, which may differ from the federal tax law. For these reasons, you are urged to consult your own tax advisor regarding the application of the
tax laws to your particular situation. 

  

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	 	(b)	The Option is not intended to be an “incentive stock option,” as defined in Section 422 of the Code. 

  

	 	(c)	You must make arrangements satisfactory to the Company to satisfy any applicable federal, state or local withholding tax liability arising from the grant or exercise of your Option.
You can either make a cash payment to the Company of the required amount or you can elect to satisfy your withholding obligation by having the Company retain shares of Common Stock having a Fair Market Value (as prescribed by the Plan) equal to the
amount of your withholding obligation from the shares otherwise deliverable to you upon the exercise of your Option. You may not elect to have the Company withhold shares of Common Stock having a Fair Market Value in excess of the minimum statutory
withholding tax liability. 

  

	10.	Restrictions on Resale 

 There are no restrictions
imposed by the Plan on the resale of shares of Common Stock acquired under the Plan. However, under the provisions of the Securities Act of 1933 (the ”Securities Act”) and the rules and regulations of the Securities and Exchange
Commission (the “SEC”), resales of shares acquired under the Plan by certain officers and directors of the Company who may be deemed to be “affiliates” of the Company must be made pursuant to an appropriate effective registration
statement filed with the SEC, pursuant to the provisions of Rule 144 issued under the Securities Act, or pursuant to another exemption from registration provided in the Securities Act. At the present time, the Company does not have a currently
effective registration statement pursuant to which such resales may be made by affiliates. There are no restrictions imposed by the SEC on the resale of shares acquired under the Plan by persons who are not affiliates of the Company. However, the
timing of sales of shares may be restricted by applicable law, and the Company may, from time to time, adopt policies regarding timing of sales of shares by employees. 
  


	11.	Effect on Other Benefits 

 Income recognized by you
as a result of exercise of the Option will not be included in the formula for calculating benefits under any of the Company’s retirement and disability plans or any other benefit plans. 
 If you have any questions regarding your Option or would like to obtain additional information about the Plan or the Administrator, please contact the Senior Vice
President, Administration or the General Counsel of the Company, Westlake Chemical Corporation, 2801 Post Oak Boulevard, Suite 600, Houston, Texas 77056 (telephone (713) 960-9111). Your Award Letter and this Appendix A contain the formal
terms and conditions of your award and accordingly should be retained in your files for future reference. 
  

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