exv10w23



 






RESTRICTED STOCK AGREEMENT




     THIS
RESTRICTED STOCK AGREEMENT is made as of this ___ day of ___, 20___, between The
Allied Defense Group, Inc., a Delaware corporation
(“Company”), and                      (the
“Employee”).



     WHEREAS, the continued participation of the Employee is considered by the Company to be
important for the Company’s continued growth; and



     WHEREAS, in order to give the Employee an incentive to continue in the employ of the Company
and to participate in the affairs of the Company, the Compensation Committee of the Board of
Directors of the Company (“Committee”) has determined that the Employee shall be granted shares of
the Company’s $0.10 par value Common Stock (“Stock”), subject to the restrictions stated below, in
accordance with the terms and conditions of the 2001 Equity Incentive Plan, as amended (“Plan”).



     THEREFORE, the parties agree as follows:




	1.  	Grant of Stock.






Subject to the terms and conditions of this Agreement and the Plan, the Company hereby
grants to the Employee ___ shares of Stock.




	2.  	Vesting Schedule.






Provided that the Employee has remained in the continuous employ of the Company through the
vesting dates set forth below, the following number of shares of Stock shall vest on such
dates:



	 	 	 
	

	 	                    
shares vest on                     , 20___;
	 
	 	 
	

	 	                    
shares vest on                     , 20___;
	 
	 	 
	

	 	                    
shares vest on                     , 20___; and
	 
	 	 
	

	 	                    
shares vest on                     , 20___;







For the purposes of this Agreement, employment by the Company or any subsidiary corporation
of the Company shall be considered employment by the Company.




	3.  	Restrictions.






	 	(a)  	The Stock granted hereunder may not be sold, pledged or otherwise transferred
until the Stock becomes vested in accordance with Section 2. The period of time
between the date hereof and the date Stock becomes vested is referred to herein as the
“Restriction Period.”




 









 






	 	(b)  	Except for employment terminations arising from ___, if the Employee’s
employment with the Company is terminated at any time prior to the lapse of a
Restriction Period, all unvested shares of Stock granted hereunder shall be forfeited
by the Employee, and ownership transferred back to the Company. In the event of an
employment termination arising from ___, all unvested shares of Stock granted
hereunder shall immediately vest.




4. Legend.





Any certificates representing Stock subject to the provisions of this Agreement shall have
endorsed thereon the following legend:




“The shares represented by this certificate are subject to an
agreement between the Corporation and the registered holder, a copy
of which is on file at the principal office of this Corporation.”




	5.  	Escrow.






Any certificate or certificates evidencing the Stock subject hereto shall be delivered to
and deposited with the Secretary of the Company as Escrow Agent in this transaction. The
Stock may also be held in a restricted book entry account in the name of the Employee. Such
certificates or such book entry shares are to be held by the Escrow Agent until termination
of the Restriction Period, when they shall be released by said Escrow Agent; provided,
however, that a portion of such Stock shall be surrendered in payment of required
withholding taxes in accordance with Section 7 below, unless alternative procedures for the
payment of required withholding taxes are established.




	6.  	The Employee’s Stockholder Rights.






During the Restriction Period, the Employee shall have all the rights of a stockholder with
respect to the Stock except for the right to transfer the Stock, as set forth in Section 3.
Accordingly, the Employee shall have the right to vote the Stock and to receive any cash
dividends paid to or made with respect to the Stock.



7. Taxes.





	 	(a)  	The Employee shall be liable for any and all taxes, including withholding
taxes, arising out of this grant or the vesting of Stock hereunder. The Employee shall
surrender a sufficient number of whole shares of Stock as necessary to cover all
applicable required withholding taxes and required social security contributions at the
time the restrictions on the Stock lapse, unless alternative procedures for such
payment are established. The Employee will receive a cash refund for any fraction of a
surrendered share of Stock not necessary for required withholding taxes and required
social insurance contributions. To the extent that any surrender of Stock or
alternative procedure for such payment is insufficient, the




 









 






	 	   	Employee authorizes the Company to deduct tax at source, to deduct all applicable
required withholding taxes and social security contributions from the Employee’s
compensation. The Employee agrees to pay any amounts that cannot be satisfied from
wages or other cash compensation, to the extent permitted by law.
	 
	 	(b)  	Regardless of any action the Company takes with respect to any or all income
tax, social insurance, payroll tax, payment on account or other tax-related withholding
(“Tax-Related Items”), the Employee acknowledges and agrees that the ultimate liability
for all Tax-Related Items legally due by him is and remains the Employee’s
responsibility and that the Company (i) make no representations nor undertakings
regarding the treatment of any Tax-Related Items in connection with any aspect of this
grant of Stock, including the grant, vesting or release, the subsequent sale of Stock
and receipt of any dividends; and (ii) does not commit to structure the terms or any
aspect of this grant of Stock to reduce or eliminate the Employee’s liability for
Tax-Related Items.






	8.	   Plan Information.






The Employee agrees to receive copies of the Plan, the Plan prospectus and other Plan
information from the Company’s web site, including copies of any annual report, proxy and
Form 10-K. The Employee acknowledges that copies of the Plan, Company’s Plan prospectus,
Plan information and stockholder information are available upon written or telephonic
request to the Company Secretary.




	9.  	   Acknowledgement and Waiver.






By accepting this grant of Stock, the Employee acknowledges and agrees that: (i) the Plan
has been established voluntarily by the Company, it is discretionary in nature and may be
modified, amended, suspended or terminated by the Company at any time unless otherwise
provided in the Plan; (ii) the grant of Stock is voluntary and occasional and does not
create any contractual or other right to receive future grants of Stock, or benefits in lieu
of Stock, even if Stock has been granted repeatedly in the past; (iii) all decisions with
respect to future grants, if any, will be at the sole discretion of the Company; (iv) the
Employee’s participation in the Plan shall not create a right to further employment with the
Company and shall not interfere with the ability of the Company to terminate the Employee’s
employment relationship at any time with or without cause; and (v) the Employee is
participating voluntarily in the Plan.




	10.  	Miscellaneous.






	 	(a)  	The Company shall not be required (i) to transfer on its books any shares of
Stock of the Company which shall have been sold or transferred in violation of any of
the provisions set forth in this Agreement, or (ii) to treat as owner of such Stock or
to accord the right to vote as such owner or to pay dividends to any transferee to whom
such Stock shall have been so transferred.




 









 






	 	(b)  	The parties agree to execute such further instruments and to take such action
as may reasonably be necessary to carry out the intent of this Agreement.
	 
	 	(c)  	Any notice required or permitted hereunder shall be given in writing and shall
be deemed effectively given upon delivery to the Employee at his address then on file
with the Company.
	 
	 	(d)  	The Plan is incorporated herein by reference. The Plan and this Agreement
constitute the entire agreement of the parties with respect to the subject matter
hereof and supersede in their entirety all prior undertakings and agreements of the
Company and the Employee with respect to the subject matter hereof, and may not be
modified adversely to the Employee’s interest except by means of a writing signed by
the Company and the Employee. This Agreement is governed by the laws of the State of
Delaware.
	 
	 	(e)  	If the Employee has received this or any other document related to the Plan
translated into a language other than English and if the translated version is
different than the English version, the English version will control.
	 
	 	(f)  	The provisions of this Agreement are severable and if any one or more
provisions are determined to be illegal or otherwise unenforceable, in whole or in
part, the remaining provisions shall nevertheless be binding and enforceable.





	 	 	 	 	 	 	 
	 	 	THE ALLIED DEFENSE GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	

	 	By: