Form of 2010 Nonqualified Stock Option Agreement for directors



 EXHIBIT 10.9 

2010 COOPER-STANDARD HOLDINGS INC. MANAGEMENT INCENTIVE PLAN 

NONQUALIFIED STOCK OPTION AGREEMENT 

THIS AGREEMENT (this “Agreement”), is made effective as of the          day of
            , 2010 (the “Date of Grant”), between Cooper-Standard Holdings Inc., a Delaware corporation (the “Company”), and the individual whose name is set forth on
the signature page hereof (the “Participant”): 
 R E C I T A L
S: 
 WHEREAS, the Company has adopted the 2010 Cooper-Standard Holdings Inc. Management Incentive Plan (the
“Plan”), which Plan is incorporated herein by reference and made a part of this Agreement. Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan; and 

WHEREAS, the Committee has determined that it would be in the best interests of the Company and its shareholders to grant the Options
provided for herein to the Participant pursuant to the Plan and the terms set forth herein. 
 NOW THEREFORE, in consideration
of the mutual covenants hereinafter set forth, the parties agree as follows: 
 1. Definitions. Whenever the following
terms are used in this Agreement, they shall have the meaning specified below unless the context clearly indicates to the contrary. 

(a) “Options” shall mean the Time Option to purchase Shares granted under this Agreement. 

(b) “Time Option” shall mean an Option with respect to which the exercisability is governed by
Section 3(a). 
 2. Grant of the Options. The Company hereby grants to the Participant the right and option to
purchase, on the terms and conditions hereinafter set forth and subject to adjustment as set forth in the Plan, a Time Option to purchase any part or all of an aggregate number of Shares set forth on the signature page hereof. The purchase price of
the Shares subject to the Options shall be $            .00 per Share (the “Option Price”). The Options are intended to be non-qualified stock options, and are not intended to be
treated as options that comply with Section 422 of the Code. 
 3. Vesting. 

(a) Time Option. Subject to Section 4(a) and to the Participant’s continued Employment with the Company
or its Affiliate, the Time Option shall vest with respect to fifty percent (50%) of the Shares initially covered by the Time Option as of the first anniversary of the Date of Grant, and with respect to twenty-five percent (25%) of the
Shares initially covered by the Time Option as of the second anniversary of the Date of Grant, and with respect to twenty-five percent (25%) of the Shares initially covered by the Time Option as of the third anniversary of the Date of Grant,
(each a “Vesting Date”). 
  







 (b) Change of Control. Notwithstanding the foregoing, in the event of
a Change of Control while the Participant remains in Employment with the Company or its Affiliate, 100% of the then unvested portion of the Options shall, to the extent outstanding, immediately become fully vested and exercisable. 

(c) Termination of Employment. Upon termination of the Participant’s Employment with the Company or its
Affiliate due to the Participant’s death, Disability or as the result of an involuntary removal by action of the stockholders, the Participant shall be deemed vested with respect to the portion of the Shares subject to the Options granted
hereunder, based on the following fraction, the numerator of which is the days served as a director from later of the Date of Grant or the most recent Vesting Date through the termination date and the denominator of which is 365, times: 

1) 50%, if such termination occurs prior to the first Vesting Date, or 

2) 25%, if such termination between the first and third Vesting Dates; 

provided however, upon termination of the Participant’s Employment with the Company or its Affiliate due to a Termination Event of
the Stockholder (as such terms are defined in the Director Nomination Agreement made as of May 27, 2010, among Cooper-Standard Holdings Inc., a Delaware corporation and
[            ]), the Participant shall be deemed vested with respect to the 50% of the Shares subject to the Options granted hereunder if such termination occurs prior to the first Vesting
Date and with respect to an additional 25% of the Shares subject to the Options granted hereunder if such termination occurs between the first and third Vesting Dates. 

4. Exercise of Option. 

(a) Period of Exercise. Subject to the provisions of the Plan and this Agreement, the Participant may exercise all
or any part of the vested portion of the Option at any time prior to the earliest to occur of: 
 (i) the
tenth anniversary of the Date of Grant; 
 (ii) the first anniversary of the date of the Participant’s
termination of Employment due to death or Disability or in connection with a Change of Control; and 
 (iii) 90
days following the date of the Participant’s termination of Employment with the Company or its Affiliate for any reason other than death or Disability or in connection with a Change of Control. 

(b) Method of Exercise. 

(i) Subject to Section 4(a), the vested portion of an Option may be exercised by delivering to the Company at its
principal office written notice of intent to so exercise; provided that such portion may be exercised with respect to whole Shares only. Such notice shall specify the number of Shares for which such portion is being exercised and shall be
accompanied by payment in full of the Option Price. The payment of the Option Price may be made at the election of the Participant (i) in cash or its equivalent (e.g., by check), (ii) to the extent permitted








 
by the Committee, in Shares having a Fair Market Value equal to the aggregate Option Price for the Shares being purchased and satisfying such other requirements as may be imposed by the
Committee; provided that such Shares have been held by the Participant for no less than six months (or such other period, if any, as established from time to time by the Committee in order to avoid adverse accounting treatment applying generally
accepted accounting principles), (iii) partly in cash and, to the extent permitted by the Committee, partly in such Shares or (iv) if there is a public market for the Shares at such time and if the Committee has authorized or established
any required plan or program, through the delivery of irrevocable instructions to a broker to sell Shares obtained upon the exercise of an Option and to deliver promptly to the Company an amount out of the proceeds of such sale equal to the
aggregate Option Price for the Shares being purchased. The Participant shall not have any rights to dividends or other rights of a stockholder with respect to Shares subject to an Option until the Participant has given written notice of exercise of
the Option, paid in full for such Shares and, if applicable, has satisfied any other conditions imposed by the Committee pursuant to the Plan. 

(ii) Notwithstanding any other provision of the Plan or this Agreement to the contrary, the Options may not be exercised
prior to the completion of any registration or qualification of the Options or the Shares under applicable state and federal securities or other laws, or under any ruling or regulation of any governmental body or national securities exchange that
the Committee shall in its sole discretion determine to be necessary or advisable. 
 (iii) Upon the
Company’s determination that an Option has been validly exercised as to any of the Shares, the Company shall issue a certificate or certificates in the Participant’s name for such Shares; provided that the Committee may determine instead
that such Shares shall be evidenced by book-entry registration. However, the Company shall not be liable to the Participant for damages relating to any delays in issuing any such certificates to the Participant, any loss of any such certificates, or
any mistakes or errors in the issuance of any such certificates or in any such certificates themselves; provided that the Company shall correct any such errors caused by it. 

(iv) Subject to Section 7, in the event of the Participant’s death, the vested portion of the Options shall
remain exercisable by the Participant’s executor or administrator, or the Person or Persons to whom the Participant’s rights under this Agreement shall pass by will or by the laws of descent and distribution as the case may be, to the
extent set forth in Section 4(a). Any heir or legatee of the Participant shall take rights herein granted subject to the terms and conditions hereof. 

5. No Right to Continued Employment. The granting of the Options evidenced hereby and this Agreement shall impose no obligation on
the Company or any of its Affiliates to continue the Employment of the Participant. 
 6. Legend on Certificates. The
certificates representing the Shares purchased by exercise of the Options, if applicable, shall be subject to such stop transfer orders and other 







 
restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such
Shares are listed, and any applicable Federal or state laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions, including reference to the fact that all Shares
acquired hereunder shall be subject to the terms of a stockholders agreement, if any. 
 7. Transferability. The Options
may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant otherwise than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment,
sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. No
such permitted transfer of an Option to heirs or legatees of the Participant shall be effective to bind the Company unless the Committee shall have been furnished with written notice thereof and a copy of such evidence as the Committee may deem
necessary to establish the validity of the transfer and the acceptance by the transferee or transferees of the terms and conditions hereof. During the Participant’s lifetime, the Options are exercisable only by the Participant. 

8. Withholding. The Participant may be required to pay to the Company or any Affiliate, and the Company and its Affiliates shall
have the right and are hereby authorized to withhold, any applicable withholding taxes in respect of the Options, their exercise or any payment or transfer under or with respect to the Options and to take such other action as may be necessary in the
opinion of the Committee to satisfy all obligations for the payment of such withholding taxes. 
 9. Securities Laws.
Upon the acquisition of any Shares pursuant to the exercise of the Options, the Participant will make or enter into such written representations, warranties and agreements as the Committee may reasonably request in order to comply with applicable
securities laws or with this Agreement. 
 10. Notices. Any notice necessary under this Agreement shall be addressed to
the Company in care of its Secretary at the principal executive office of the Company and to the Participant at the address appearing in the personnel records of the Company for the Participant or to either party at such other address as either
party may hereafter designate in writing to the other. Any such notice shall be deemed effective upon receipt thereof by the addressee. 

11. Choice of Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE
WITHOUT REGARD TO CONFLICTS OF LAWS.  
 12. Options Subject to Plan. By entering into this Agreement, the
Participant agrees and acknowledges that the Participant has received and read a copy of the Plan, the Commitment Agreement and the Plan of Reorganization. The Options are subject to the Plan. The terms and provisions of the Plan as they may be
amended from time to time are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and
prevail. 







 13. Signature in Counterparts. This Agreement may be signed in counterparts, each of
which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 







 IN WITNESS WHEREOF, the parties hereto have executed this Agreement. 

 

			
	COOPER-STANDARD HOLDINGS INC.
		
	By:	 	  




 

			
	 Agreed and acknowledged as of the

date first above written:

	
	  

	Participant:
		
	Time Option:	 	Shares