Form of Non-Qualified Stock Option Agreement



 Exhibit 10.1 

FORM OF 

NON-QUALIFIED STOCK OPTION AGREEMENT 

FOR EMPLOYEES UNDER THE 

CIRCOR INTERNATIONAL, INC. 

AMENDED AND RESTATED 1999 STOCK OPTION AND INCENTIVE PLAN 

 

					
	Name of Optionee:	 	  
	 	
			
	No. of Option Shares:	 	  
	 	
			
	Option Exercise Price per Share:	 	  
	 	
			
	Grant Date:	 	  
	 	
			
	Expiration Date:	 	  
	 	

 Pursuant to the CIRCOR International, Inc. Amended and Restated 1999 Stock Option and Incentive Plan,
as amended through the date hereof (the “Plan”), CIRCOR International, Inc. (the “Company”) hereby grants to the Optionee named above, who is an officer or employee of the Company or any of its Subsidiaries, an option (the
“Stock Option”) to purchase on or prior to the Expiration Date specified above all or part of the number of shares (the “Option Shares”) of Common Stock, par value $.01 per share (the “Stock”) of the Company specified
above at the Option Exercise Price per Share specified above, subject to the terms and conditions set forth herein and in the Plan. This Stock Option is not intended to be an “incentive stock option” under Section 422 of the Internal
Revenue Code of 1986, as amended. 
 1. Vesting Schedule. No portion of this Stock Option may be exercised until
such portion shall have vested. Except as set forth below, and subject to the discretion of the Administrator (as defined in Section 2 of the Plan) to accelerate the vesting schedule hereunder, this Stock Option shall be vested and exercisable
with respect to the following number of Option Shares on the dates indicated: 
  

			
	 Number of

Option Shares Exercisable
	  	 Vesting Date

	[100%]	  	Grant Date + 3 years

 In
the event of a Sale Event as defined in Section 3(c) of the Plan, this Stock Option shall become immediately vested and exercisable in full, whether or not this Stock Option or any portion thereof is vested and exercisable at such time. Once
vested, this Stock Option shall continue to be exercisable at any time or times prior to the close of business on the Expiration Date, subject to the provisions hereof and of the Plan. 

2. Manner of Exercise. 

(a) The Optionee may exercise this Stock Option only in the following manner: from time to time on or prior to the Expiration Date of
this Stock Option, the Optionee may give written notice to the Administrator of his or her election to purchase some or all of the vested Option Shares purchasable at the time of such notice. This notice shall specify the number of Option Shares to
be purchased. 
 Payment of the purchase price for the Option Shares may be made by one or more of the following methods:
(i) in cash, by certified or bank check or other instrument acceptable to the Administrator; (ii) by the Optionee delivering (or attesting to the ownership of) shares of Stock that have been purchased by the Optionee on the open market or
that have been beneficially owned by the Optionee for at least six months and that are not then subject to restrictions under any Company plan; (iii) by the Optionee delivering to the Company a properly executed exercise notice together with
irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company to pay the option purchase price, provided that in the event the Optionee chooses to pay the option purchase price as so
provided, the Optionee and the broker shall comply with such procedures and enter into such agreements of indemnity and other agreements as the Administrator shall prescribe as a condition of such payment procedure; or (iv) a combination of
(i), (ii) and (iii) above. Payment instruments will be received subject to collection. 







 The transfer to the Optionee on the records of the Company or of the transfer agent of the
Option Shares will be contingent upon (i) the Company’s receipt from the Optionee of the full purchase price for the Option Shares, as set forth above, (ii) the fulfillment of any other requirements contained herein or in the Plan or
in any other agreement or provision of laws, and (iii) the receipt by the Company of any agreement, statement or other evidence that the Company may require to satisfy itself that the issuance of Stock to be purchased pursuant to the exercise
of Stock Options under the Plan and any subsequent resale of the shares of Stock will be in compliance with applicable laws and regulations. In the event the Optionee chooses to pay the purchase price by previously-owned shares of Stock through the
attestation method, the number of shares of Stock transferred to the Optionee upon the exercise of the Stock Option shall be net of the shares attested to. 

(b) The shares of Stock purchased upon exercise of this Stock Option shall be transferred to the Optionee on the records of the Company
or of the transfer agent upon compliance to the satisfaction of the Administrator with all requirements under applicable laws or regulations in connection with such transfer and with the requirements hereof and of the Plan. The determination of the
Administrator as to such compliance shall be final and binding on the Optionee. The Optionee shall not be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Stock subject to this Stock Option unless
and until this Stock Option shall have been exercised pursuant to the terms hereof, the Company or the transfer agent shall have transferred the shares to the Optionee, and the Optionee’s name shall have been entered as the stockholder of
record on the books of the Company. Thereupon, the Optionee shall have full voting, dividend and other ownership rights with respect to such shares of Stock. 

(c) The minimum number of shares with respect to which this Stock Option may be exercised at any one time shall be 100 shares, unless the
number of shares with respect to which this Stock Option is being exercised is the total number of shares subject to exercise under this Stock Option at the time. 

(d) Notwithstanding any other provision hereof or of the Plan, no portion of this Stock Option shall be exercisable after the Expiration
Date hereof. 
 3. Termination of Employment. If the Optionee’s employment by the Company or a Subsidiary (as
defined in the Plan) is terminated, the period within which to exercise this Stock Option may be subject to earlier termination as set forth below. 

(a) Termination Due to Death. If the Optionee’s employment terminates by reason of the Optionee’s death, this Stock
Option shall become fully exercisable and may thereafter be exercised by the Optionee’s legal representative or legatee for a period of 12 months from the date of death or until the Expiration Date, if earlier. 

(b) Termination Due to Disability. If the Optionee’s employment terminates by reason of the Optionee’s Disability
(within the meaning of Section 22(e)(3) of the Code), this Stock Option shall become fully exercisable and may thereafter be exercised by the Optionee for a period of 12 months from the date of termination or until the Expiration Date, if
earlier. 
 (c) Termination for Cause. If the Optionee’s employment terminates for Cause (as defined below), this
Stock Option shall terminate immediately and be of no further force and effect. For purposes hereof, unless otherwise provided in an employment agreement between the Company and the Optionee, a termination of employment for “Cause” shall
mean, the occurrence of one or more of the following: (i) the Optionee is convicted of, pleads guilty to, or confesses to any felony or any act of fraud, misappropriation or embezzlement which has an immediate and materially adverse effect on
the Company or any Subsidiary, as determined by the Administrator in good faith in its sole discretion; (ii) the Optionee engages in a fraudulent act to the material damage or prejudice of the Company or any Subsidiary or in conduct or
activities materially damaging to the property, business or reputation of the Company or any Subsidiary, all as determined by the Administrator in good faith in its sole discretion; (iii) any material act or omission by the Optionee involving
malfeasance or negligence in the performance of the Optionee’ s duties to the Company or any Subsidiary to the material detriment of the Company or any Subsidiary, as determined by the Administrator in good faith in its sole discretion, which
has not been corrected by the Optionee within thirty (30) days after written notice from the Company of any such act or omission; (iv) failure by the Optionee to comply in any material respect with any written policies or directives of the
Company as determined by the Administrator in good faith in its sole discretion, which has not been corrected by the Optionee within ten (10) days after written notice from the Company of such failure; or (v) material breach by the
Optionee of any non-competition, confidentiality or similar agreements between the Optionee and the Company as determined by the Administrator in good faith in its sole discretion. 

(d) Termination Without Cause. If the Optionee’s employment is terminated by the Company without Cause and unless otherwise
determined by the Administrator, any portion of this Stock Option may be exercised by the Optionee, to the extent exercisable on the date of termination, for a period of three months from the date of termination or until the Expiration Date, if
earlier. Any portion of the Stock Option that is not exercisable at such time shall terminate immediately and be of no further force and effect. 







 (e) Termination of Employment by Optionee. If the Optionee terminates his or her
employment, this Stock Option shall terminate immediately upon notice by the Optionee of such termination and be of no further force and effect. 

(f) Miscellaneous. The Administrator’s determination of the reason for termination of the Optionee’s employment shall be
conclusive and binding on the Optionee and his or her representatives or legatees. Any portion of this Stock Option that is unvested after the application of this Section 3 shall be canceled immediately upon any termination of employment and
shall not be exercisable by the Optionee. 
 4. Incorporation of Plan. Notwithstanding anything herein to the
contrary, this Stock Option shall be subject to and governed by all the terms and conditions of the Plan. Capitalized terms in this Agreement shall have the meaning specified in the Plan, unless a different meaning is specified herein. 

5. Transferability. This Agreement is personal to the Optionee, is non-assignable and is not transferable in any manner, by
operation of law or otherwise, other than by will or the laws of descent and distribution. This Stock Option is exercisable, during the Optionee’s lifetime, only by the Optionee, and thereafter, only by the Optionee’s legal representative
or legatee. 
 6. Tax Withholding. The Optionee shall, not later than the date as of which the exercise of this
Stock Option becomes a taxable event for Federal income tax purposes, pay to the Company or make arrangements satisfactory to the Administrator for payment of any Federal, state, and local taxes required by law to be withheld on account of such
taxable event. The Company is authorized to cause the minimum required tax withholding obligation to be satisfied, in whole or in part, by withholding from shares of Stock to be issued to the Optionee a number of shares of Stock with an aggregate
Fair Market Value that would satisfy the minimum required tax withholding amount due. 
 7. Non-Compete Agreement.
Optionee is receiving the Stock Option provided for herein in part because the Company has determined that Optionee is a key contributor to the continued success of the Company. As such, Optionee is privy to certain proprietary information which the
Company considers to be competition sensitive. The Company, therefore, would be materially harmed were Optionee to leave the Company and perform services on behalf of a competitor or if the Optionee were to solicit (i) customers to do business
with a competitor of the Company or (ii) employees of the Company to leave the Company and work for a competitor. Accordingly, in consideration of Optionee’s receipt of the Stock Option, Optionee covenants and agrees that, for a period of
two (2) years following the termination of Optionee’s affiliation with the Company (whether as an employee or non-employee director), Optionee shall not, anywhere in the world, own, manage, operate, join, control, promote, invest or
participate in or be connected with in any capacity (either as an employee, employer, trustee, consultant, agent, principal, partner, corporate officer, director, creditor, owner or shareholder or in any other individual or representative capacity)
with any business individual, partnership, firm, corporation or other entity which is engaged wholly or partly in the design, manufacture, development, distribution, marketing or sales of any products which compete with the Company’s then
current lines of business for which Optionee, during the two year period immediately preceding termination of affiliation with the Company, had managerial responsibility or otherwise provided regular services. Optionee agrees that this provision is
reasonable in view of the relevant market for the Company’s products and services and that any breach hereof would result in continuing and irreparable harm to the Company. The foregoing, however, shall not prevent Optionee from making passive
investments in a competitive enterprise whose shares are publicly traded if such investment constitutes less than five percent (5%) of such enterprise’s outstanding capital stock. In addition, Optionee, for a period of two years following
the termination of Optionee’s affiliation with the Company shall not directly or indirectly (1) induce, solicit, request or advise any Customers (as defined below) to patronize any business which competes with any business of the Company
for which Optionee has had any management responsibility or otherwise provided regular services during his affiliation with Company; or (2) entice, solicit, request or advise any employee of the business of the Company for which Optionee has
had management responsibility or otherwise provided regular services during his affiliation with Company to accept employment (or other affiliation) with any person, firm or business which competes with any such business of the Company. As used
above, “Customers” means all customers of any business of the Company for which the Optionee had contact or management responsibility or otherwise provided regular services during the last two years of his affiliation with Company.
Notwithstanding the provisions of this paragraph 7, if Optionee is an employee or resident of a state in which non-compete provisions of the type set forth in this paragraph 7 are not enforceable, then the non-compete provisions of this paragraph 7
shall not apply; the non-solicitation provisions of this paragraph 7, however, shall continue to apply. In addition, in the event that a court of competent jurisdiction determines that any of the restrictions set forth in this paragraph 7 are
impermissible in scope and/or duration, Optionee and the Company intend that such court shall revise such scope and/or duration as the court deems reasonable rather than invalidating any such restrictions. 







 8. Effect of Employment Agreement. If the Optionee is a party to an employment
agreement with the Company and any provisions set forth in such employment agreement conflict with the provisions set forth in this Stock Option Agreement, the provisions set forth in such employment agreement shall override such conflicting
provisions set forth herein. 
 9. Miscellaneous. 

(a) Notice hereunder shall be given to the Company at its principal place of business, and shall be given to the Optionee at the address
set forth below, or in either case at such other address as one party may subsequently furnish to the other party in writing. 

(b) Neither the Plan nor this Stock Option confers upon the Optionee any rights with respect to continuance of employment by the Company
or any Subsidiary. 
 (c) Pursuant to Section 16 of the Plan, the Administrator may at any time amend or cancel any
outstanding portion of this Stock Option, but no such action may be taken which adversely affects the Optionee’s rights under this Agreement without the Optionee’s consent. 








			
	CIRCOR INTERNATIONAL, INC.
		
	By:	 	  

		 	Name:
		 	Title:


 The foregoing Agreement is hereby accepted and
the terms and conditions thereof hereby agreed to by the undersigned. 
  

					
		 		 	  

	Date:                     	 		 	Optionee’s Signature
			
		 		 	Optionee’s Name and Address: