Exhibit 10.18



 






EXHIBIT 10.18




STONERIDGE, INC.

LONG-TERM INCENTIVE PLAN

RESTRICTED SHARES GRANT AGREEMENT



     Stoneridge, Inc., an Ohio corporation (the “Company”), pursuant to the terms and conditions
hereof, hereby grants to XXX (the “Grantee”) XXX Common Shares, without par value, of the Company
(the “Restricted Shares”).



     1. The Restricted Shares are in all respects subject to the terms, conditions and provisions
of this agreement and the Company’s Long-Term Incentive Plan (the “Plan”).



     2. Until vested (the “Vesting Date”) in accordance with the schedule set forth below, the
Restricted Shares may not be sold, transferred, pledged, assigned or otherwise encumbered, whether
voluntarily, involuntarily or by operation of law, and will be forfeited to the Company if the
Grantee voluntarily terminates his employment with the Company unless such voluntary termination is
for “good reason” (as described in Section 5); provided, however, the Compensation Committee of the
Board of Directors (the “Committee”) in its sole discretion modify the terms of this grant at any
time. The certificate or certificates representing the Restricted Shares will bear a legend
evidencing the restrictions contained herein.



     The Restricted Shares shall vest (become no longer subject to forfeiture) in the amounts and
on the dates set forth below:



	 	 	 	 	 
	Vesting Date	 	Number of Shares	 
	July 26, 2005
	 	XXX
	July 26, 2006
	 	XXX
	July 26, 2007
	 	XXX






     3. The Restricted Shares will be issued in the name of the Grantee. The Company’s transfer
agent and/or share transfer records will show the Grantee as the owner of record of the Restricted
Shares. Except as otherwise provided in this agreement, the Grantee will have all the rights of a
shareholder of the Company, including the right to vote and receive dividends.



     4. The Company or the Company’s agent will hold the Restricted Shares for the period of time
that the Restricted Shares are subject to forfeiture (until vested) and the certificate or
certificates representing the Restricted Shares will be delivered to the Grantee after the
Restricted Shares are no longer subject to forfeiture. The Grantee shall execute and deliver to
the Company one or more blank stock powers so that the Restricted Shares that may be forfeited can
be canceled.



     5. Notwithstanding anything to the contrary in this agreement, the Restricted Shares awarded
to the Grantee hereunder shall immediately vest in the name of the Grantee and a certificate or
certificates representing the Restricted Shares shall be delivered to the Grantee or the Grantee’s
estate upon (i) the Grantee’s death or disability (as determined by the Committee in accordance
with the Plan), but only to the extent such Restricted Shares would have become vested or no longer
are subject to restriction within one year from the time of death or disability, as the case may
be, had the Grantee continued to fulfill all of the conditions of the Restricted Share Award during
such period, (ii) a Change in Control of the Company (as defined in the Plan), or (iii) the
termination “without cause” of the Grantee’s employment by the Company. Termination shall be
deemed to be “without cause” unless the Board of Directors of the Company, or its designee, in good
faith determines that termination is because of any one or more of the following:



     The Grantee’s:



 









 






	 	(i)  	fraud;
	 
	 	(ii)  	misappropriation of funds;
	 
	 	(iii)  	commission of a felony or of an act or series of acts which result in material
injury to the business reputation of the Company;
	 
	 	(iv)  	commission of a crime or act or series of acts involving moral turpitude;
	 
	 	(v)  	violation of the Company’s policies;
	 
	 	(vi)  	commission of an act or series of repeated acts of dishonesty that are
materially inimical to the best interests of the Company;
	 
	 	(vii)  	willful and repeated failure to perform his duties, which failure has not been
cured within fifteen (15) days after the Company gives notice thereof to the Grantee;
	 
	 	(viii)  	material breach of any material provision of an employment agreement, if any, which
breach has not been cured in all substantial respects within ten (10) days after the
Company gives notice thereof to the Grantee; or
	 
	 	(ix)  	failure to carry out the reasonable directions or instructions of the Grantee’s
superiors, provided the directions or instructions are consistent with the duties of
the Grantee’s office, which failure has not been cured in all substantial respects
within ten (10) days after the Company gives notice thereof to the Grantee.





     Provided, however, the Company’s obligation to provide notice and an opportunity to cure,
pursuant to subsections 5(g)-(i) above, shall only apply to the Grantee’s first breach, first
failure to perform or first failure to follow directions, as the case may be, of the nature giving
rise to the right of the Company to provide notice thereof. The Grantee may voluntarily terminate
his employment with the Company, and the termination shall be deemed a termination “for good
reason,” if it is based on the Company materially changing the Grantee’s duties and
responsibilities in effect on the date set forth below without the Grantee’s consent.



     6. On any change in the number or kind of outstanding common shares of the Company by reason
of a recapitalization, merger, consolidation, reorganization, separation, liquidation, share split,
share dividend, combination of shares or any other change in the corporate structure or common
shares of the Company, the Company, by action of the Committee, is empowered to make such
adjustment, if any, in the number and kind of Restricted Shares subject to this agreement as it
considers appropriate for the protection of the Company and of the Grantee.



     7. No later than the date as of which an amount first becomes includable in the gross income
of the Grantee for federal income tax purposes with respect to the Restricted Shares granted
hereunder, the Grantee shall pay to the Company, or make arrangements satisfactory to the Committee
regarding the payment of, any federal, state or local taxes of any kind required by law to be
withheld with respect to that amount. Unless otherwise determined by the Committee, withholding
obligations may be settled with previously owned Common Shares or Restricted Shares that have
vested. The making of that payment or those arrangements is a condition to the obligations of the
Company under the Plan, and the Company and its subsidiaries and affiliates may, to the extent
permitted by law, deduct any taxes from any payment of any kind otherwise payable to the Grantee.



     8. Nothing in this Agreement shall affect in any manner any conflicting or other provision of
any other agreement between the Grantee and the Company.



     9. The laws of the State of Ohio govern the Plan and the Restricted Shares granted hereunder.



 









 





     IN WITNESS WHEREOF, the Company has caused its corporate name to be subscribed by its duly
authorized officer as of the XXX.


	 	 	 	 	 
	 	STONERIDGE, INC.

 

 	 
	 	By  	 	 
	 	 	 	 
	 	 	 	 
	 




	 	 
	The foregoing is hereby accepted.
 
 
	 
	(Signature)