Document:

EXHIBIT 10.7

 

 

QUANEX CORPORATION

 

[STOCK-][CASH-]SETTLED

RESTRICTED STOCK UNIT AWARD AGREEMENT

 

<< Full Name>>

Grantee

 

	
  Date of Award:

  	
   

  	
  <<                           >>

  
	
   

  	
   

  	
   

  
	
  Number of Restricted Stock Units:

  	
   

  	
  <<                           >>

  
	
   

  	
   

  	
   

  
	
  Expiration
  Date:

  	
   

  	
  <<                           >>

  
	
   

  	
   

  	
   

  
	
  General
  Vesting Schedule/Restricted Period:

  	
   

  	
  [3
  years, with vesting in installments of 33 1/3% on the anniversary date of the
  Date of Grant in each of the years                 ,
                  
  and                 .]

   

  [100% exercisable on [first][second][third] anniversary of the Date
  of Grant. 0% exercisable prior to the [first][second][third] anniversary of
  the Date of Grant.]

  

 

AWARD OF RESTRICTED
STOCK UNITS

 

The Compensation
Committee of the Board of Directors of Quanex Corporation, a Delaware
corporation (the “Company”),
pursuant to the Quanex Corporation 2006 Omnibus Incentive Plan (the “Plan”), hereby awards to you, the
above-named Grantee, effective as of the Date of Award set forth above (the “Date of Award”), that number of restricted
stock units set forth above (the “RSUs”),
on the following terms and conditions:

 

During the Restricted
Period, the RSUs will be evidenced by entries in a bookkeeping ledger account
which reflect the number of RSUs credited under the Plan for your benefit. For
purposes of this Agreement, the term “Restricted
Period” means the period designated by the Committee during which the
RSUs are subject to forfeiture and restrictions on transfer (the “Forfeiture Restrictions”). The Restricted Period and all
Forfeiture Restrictions on the RSUs covered hereby shall lapse as to those RSUs
when the RSUs become vested and you meet all other terms and conditions of this
Agreement.

 

Upon the earlier of
(1) the date the RSUs granted under this Award become vested under the
General Vesting Schedule (without regard to any acceleration provisions
contained herein) or (2) the date on which you separate from service
(within the meaning of section 409A of the Internal Revenue Code of 1986, as
amended (“Section 409A”)) for any reason, the
Company shall issue to you [cash in an amount equal
to the fair market value of] one share of the Company’s common
stock, $0.50 par value per share (the “Common
Stock”), less applicable withholding, in exchange for each RSU that
is awarded to you hereby and thereafter you shall have no further rights with
respect to such RSU. [The Company shall cause to be delivered to you (or
your legal representative or heir) a stock certificate representing those
shares of the Common Stock issued in exchange for RSUs awarded hereby, and such
shares of the Common Stock shall be transferable by you (except to the extent
that any proposed transfer would, in the opinion of counsel satisfactory to the
Company, constitute a violation of applicable federal or state securities law).]

 

Employee

Cliff Vested—Graded
Vesting

Stock Settled—Cash Settled

 

 

If you separate from
service with the Company and all Affiliates (collectively, the “Company Group”) terminates before the
third anniversary of the Date of Award (the “Third
Anniversary Date”), the Forfeiture Restrictions then applicable to
the RSUs shall not lapse and the number of RSUs then subject to the Forfeiture
Restrictions shall be forfeited to the Company on the date of your separation
from service. Notwithstanding the preceding sentence, if you die, incur a
Disability or Retire before the Third Anniversary Date, each while in the
active employ of one or more members of the Company Group, all remaining
Forfeiture Restrictions shall lapse on a prorated basis
determined by dividing the number of days during the period commencing on the
last anniversary vesting date or Date of Grant, as applicable, and ending on
the date of your death, Disability or Retirement by 1095. For purposes of this
Section, the term “Retire” means
the voluntary termination of your employment relationship with the Company
Group on or after the date on which (a) you are age 65 or (b) you are
age 55 and have five years of service with the Company Group.

 

DELAYED PAYMENT IN CERTAIN CIRCUMSTANCES. NOTWITHSTANDING ANY OTHER
PROVISION OF THIS AGREEMENT, IF YOU ARE A SPECIFIED EMPLOYEE (WITHIN THE
MEANING OF SECTION 409A), NO PAYMENTS SHALL BE MADE TO YOU PURSUANT TO THIS
AWARD DUE TO A SEPARATION FROM SERVICE FOR ANY REASON BEFORE THE DATE THAT IS
SIX MONTHS AFTER THE DATE ON WHICH YOU INCUR SUCH SEPARATION FROM SERVICE.

 

If during the Restricted
Period you hold any RSUs awarded hereby the Company pays a dividend in cash
with respect to the outstanding shares of the Common Stock (a “Cash Dividend”), then the Company will pay
to you in cash, an amount equal to the product of (a) the RSUs awarded
hereby that have not been exchanged by the Company for cash and (b) the
amount of the Cash Dividend paid per share of the Common Stock (the “Dividend Equivalent”). The Company shall
pay to you currently (and in no case later than the end of the calendar year in
which the dividends are paid to the holders of the Common Stock, or if later,
the 15th day of the third month following the date the dividends are
paid to the holders of the Common Stock) an amount equal to such Dividend
Equivalents.

 

If during the Restricted
Period you hold any RSUs awarded hereby the Company pays a dividend in shares
of the Common Stock with respect to the outstanding shares of the Common Stock,
then the Company will increase the RSUs awarded hereby that have not then been
exchanged by the Company for shares of the Common Stock by an amount equal to
the product of (a) the RSUs awarded hereby that have not been exchanged by
the Company for cash and (b) the number of shares of the Common Stock paid
by the Company per share of the Common Stock (collectively, the “Stock Dividend RSUs”). Each Stock Dividend
RSU will be subject to the same
restrictions, limitations and conditions applicable to the RSU for which such
Stock Dividend RSU was awarded and will be [paid in cash][exchanged
for shares of the Common Stock] at the same time and on the same basis as
such RSU.

 

To the extent that the
receipt of the RSUs or the Agreement, the vesting of the RSUs or a distribution
under the Agreement results in income to you for federal, state or local
income, employment or other tax purposes with respect to which the Company
Group has a withholding obligation, you shall deliver to the Company at the
time of such receipt, vesting or exercise, as the case may be, such amount of
money as the Company Group may require to meet its obligation under applicable
tax laws or regulations, and, if you fail to do so, the Company Group is
authorized to withhold from any payment due under the Agreement or from any
cash or stock remuneration then or thereafter payable to you any tax required
to be withheld by reason of such taxable income, sufficient to satisfy the
withholding obligation based on the last per share sales price of the common
stock of the Company for the trading day immediately preceding the date that
the withholding obligation arises, as reported in the New York Stock Exchange
Composite Transactions.

 

The RSUs may not be sold,
assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered
or disposed of (other than by will or the applicable laws of descent and
distribution). Any such attempted sale, 

 

2

 

assignment, pledge,
exchange, hypothecation, transfer, encumbrance or disposition in violation of
this Agreement shall be void and the Company shall not be bound thereby. [Further,
any shares of Common Stock awarded hereunder may not be sold or otherwise
disposed of in any manner that would constitute a violation of any applicable
federal or state securities laws. You agree that (a) the Company may
refuse to cause the transfer of such Shares to be registered on the stock
register of the Company if such proposed transfer would in the opinion of
counsel satisfactory to the Company constitute a violation of any applicable
federal or state securities law and (b) the Company may give related
instructions to the transfer agent, if any, to stop registration of the
transfer of such shares.]

 

Capitalized terms that
are not defined herein shall have the meaning ascribed to such terms in the
Plan.

 

In accepting the award of
RSUs set forth in this Agreement you accept and agree to be bound by all the
terms and conditions of the Plan.

 

	
   

  	
  QUANEX CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Raymond
  Jean – Chief Executive Officer

  

 

 

3EXHIBIT 10.8

 

 

QUANEX CORPORATION

 

EXECUTIVE [STOCK-][CASH-]SETTLED

RESTRICTED STOCK UNIT
AWARD AGREEMENT

 

<< Full Name>>

Grantee

 

	
  Date of Award:

  	
   

  	
  <<                           >>

  
	
   

  	
   

  	
   

  
	
  Number of Restricted Stock Units:

  	
   

  	
  <<                           >>

  
	
   

  	
   

  	
   

  
	
  Expiration
  Date:

  	
   

  	
  <<                           >>

  
	
   

  	
   

  	
   

  
	
  General
  Vesting Schedule/Restricted Period:

  	
   

  	
  [3
  years, with vesting in installments of 33 1/3% on the anniversary date of the
  Date of Grant in each of the years              ,
               
  and              .]

   

  [100% exercisable on [first][second][third] anniversary of the Date
  of Grant. 0% exercisable prior to the [first][second][third] anniversary of
  the Date of Grant.]

  

 

AWARD OF RESTRICTED
STOCK UNITS

 

The Compensation
Committee of the Board of Directors of Quanex Corporation, a Delaware
corporation (the “Company”),
pursuant to the Quanex Corporation 2006 Omnibus Incentive Plan (the “Plan”), hereby awards to you, the
above-named Grantee, effective as of the Date of Award set forth above (the “Date of Award”), that number of restricted
stock units set forth above (the “RSUs”),
on the following terms and conditions:

 

During the Restricted
Period, the RSUs will be evidenced by entries in a bookkeeping ledger account
which reflect the number of RSUs credited under the Plan for your benefit. For
purposes of this Agreement, the term “Restricted
Period” means the period designated by the Committee during which the
RSUs are subject to forfeiture and restrictions on transfer (the “Forfeiture Restrictions”). The Restricted Period and all
Forfeiture Restrictions on the RSUs covered hereby shall lapse as to those RSUs
when the RSUs become vested and you meet all other terms and conditions of this
Agreement.

 

Upon the earlier of
(1) the date the RSUs granted under this Award become vested under the General
Vesting Schedule (without regard to any acceleration provisions contained
herein), (2) the date on which you separate from service (within the
meaning of section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”)) for any reason or (3) the date on which
occurs a “change in the ownership or effective control of the corporation” or a
“change in the ownership of a substantial portion of the assets of the
corporation” (within the meaning of Section 409A) (referred to herein as a “Section 409A Change in Control”) with respect to the
Company, the Company shall issue to you [cash in an amount equal
to the fair market value of] one share of the Company’s common
stock, $0.50 par value per share (the “Common
Stock”), less applicable withholding, in exchange for each RSU that
is awarded to you hereby and thereafter you shall have no further rights with
respect to such RSU. [The Company shall cause to be delivered to you (or
your legal representative or heir) a stock certificate representing those
shares of the Common Stock issued in exchange for RSUs awarded hereby, and such
shares of the Common Stock shall be transferable by you (except to the extent
that any proposed 

 

Executive 

Cliff Vested—Graded
Vesting

Stock Settled—Cash Settled

 

 

transfer would, in the
opinion of counsel satisfactory to the Company, constitute a violation of
applicable federal or state securities law).]

 

If you separate from
service with the Company and all Affiliates (collectively, the “Company Group”) terminates before the
third anniversary of the Date of Award (the “Third
Anniversary Date”), the Forfeiture Restrictions then applicable to
the RSUs shall not lapse and the number of RSUs then subject to the Forfeiture
Restrictions shall be forfeited to the Company on the date of your separation
from service. Notwithstanding the preceding sentence, if or you die, incur a
Disability or Retire before the Third Anniversary Date, each while in the
active employ of one or more members of the Company Group, all remaining
Forfeiture Restrictions shall lapse on a prorated basis
determined by dividing the number of days during the period commencing on the
last anniversary vesting date or Date of Grant, as applicable, and ending on
the date of your death, Disability or Retirement by 1095 and the number of RSUs remaining subject
to the Forfeiture Restrictions shall be forfeited to the Company on the date of
your separation from service. Further, if a Section 409A Change in Control
occurs before the Third Anniversary Date, while in the active employ of one or
more members of the Company Group, all remaining Forfeiture Restrictions shall
immediately lapse on the date of the Section 409A Change in Control. For purposes of
this Section, the term “Retire”
means the voluntary termination of your employment relationship with the
Company Group on or after the date on which (a) you are age 65 or
(b) you are age 55 and have five years of service with the Company Group.

 

DELAYED PAYMENT IN CERTAIN CIRCUMSTANCES. NOTWITHSTANDING ANY OTHER
PROVISION OF THIS AGREEMENT, IF YOU ARE A SPECIFIED EMPLOYEE (WITHIN THE
MEANING OF SECTION 409A), NO PAYMENTS SHALL BE MADE TO YOU PURSUANT TO THIS
AWARD DUE TO A SEPARATION FROM SERVICE FOR ANY REASON BEFORE THE DATE THAT IS SIX
MONTHS AFTER THE DATE ON WHICH YOU INCUR SUCH SEPARATION FROM SERVICE.

 

If during the Restricted
Period you hold any RSUs awarded hereby the Company pays a dividend in cash
with respect to the outstanding shares of the Common Stock (a “Cash Dividend”), then the Company will pay
to you in cash, an amount equal to the product of (a) the RSUs awarded
hereby that have not been exchanged by the Company for cash and (b) the
amount of the Cash Dividend paid per share of the Common Stock (the “Dividend Equivalent”). The Company shall
pay to you currently (and in no case later than the end of the calendar year in
which the dividends are paid to the holders of the Common Stock, or if later,
the 15th day of the third month following the date the dividends are
paid to the holders of the Common Stock) an amount equal to such Dividend
Equivalents.

 

If during the Restricted
Period you hold any RSUs awarded hereby the Company pays a dividend in shares
of the Common Stock with respect to the outstanding shares of the Common Stock,
then the Company will increase the RSUs awarded hereby that have not then been
exchanged by the Company for shares of the Common Stock by an amount equal to
the product of (a) the RSUs awarded hereby that have not been exchanged by
the Company for cash and (b) the number of shares of the Common Stock paid
by the Company per share of the Common Stock (collectively, the “Stock Dividend RSUs”). Each Stock Dividend
RSU will be subject to the same restrictions, limitations and conditions
applicable to the RSU for which such Stock Dividend RSU was awarded and will be
[paid in cash][exchanged for shares
of the Common Stock] at the same time and on the same basis as such RSU.

 

To the extent that the
receipt of the RSUs or the Agreement, the vesting of the RSUs or a distribution
under the Agreement results in income to you for federal, state or local
income, employment or other tax purposes with respect to which the Company
Group has a withholding obligation, you shall deliver to the Company at the
time of such receipt, vesting or exercise, as the case may be, such amount of
money as the Company Group may require to meet its obligation under applicable
tax laws or regulations, and, if you fail to do so, the Company Group is
authorized to withhold from any payment due under the Agreement or from any
cash or stock remuneration then or thereafter payable to you any tax required
to be withheld by reason of such taxable 

 

2

 

income, sufficient to
satisfy the withholding obligation based on the last per share sales price of
the common stock of the Company for the trading day immediately preceding the
date that the withholding obligation arises, as reported in the New York Stock
Exchange Composite Transactions.

 

The RSUs may not be sold,
assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered
or disposed of (other than by will or the applicable laws of descent and
distribution). Any such attempted sale, assignment, pledge, exchange,
hypothecation, transfer, encumbrance or disposition in violation of this
Agreement shall be void and the Company shall not be bound thereby. [Further,
any shares of Common Stock awarded hereunder may not be sold or otherwise
disposed of in any manner that would constitute a violation of any applicable
federal or state securities laws. You agree that (a) the Company may
refuse to cause the transfer of such Shares to be registered on the stock
register of the Company if such proposed transfer would in the opinion of counsel
satisfactory to the Company constitute a violation of any applicable federal or
state securities law and (b) the Company may give related instructions to
the transfer agent, if any, to stop registration of the transfer of such
shares.]

 

Capitalized terms that
are not defined herein shall have the meaning ascribed to such terms in the
Plan.

 

In accepting the award of
RSUs set forth in this Agreement you accept and agree to be bound by all the
terms and conditions of the Plan.

 

	
   

  	
  QUANEX CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Raymond
  Jean – Chief Executive Officer

  

 

3

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