Document:

Exhibit
10.1

 

LONE STAR TECHNOLOGIES, INC. 

FORM OF DIRECTOR OPTION AGREEMENT

 

Non-Qualified Stock Option

Granted Pursuant to the

2004 Long-Term Incentive Plan

 

OPTION granted [              ],
20[    ] (the “Date of
Grant”) by Lone Star Technologies, Inc. (“LST”)
to [                  ]
(“Optionee”) pursuant to LST’s 2004
Long-Term Incentive Plan (the “Plan”).

 

1.                                       Option Grant.  LST hereby grants to the Optionee the option
(“Option”) to purchase a total of [            ]
shares of Common Stock, $1.00 par value, of LST (“Common Stock”)
at the exercise price per share of $[        ],
upon the terms and conditions hereinafter stated. This Option shall not be
treated as an “incentive stock option” within the meaning of section 422 of the
Internal Revenue Code of 1986, as amended.

 

2.                                       Portions of Option Exercisable.  Except as specifically provided herein, the
Option will become exercisable as to the total number of shares covered by the
Option on the first anniversary of the Date of Grant, subject to the Optionee’s
remaining in the continuous service as a director of LST (“service”)
through such anniversary date. The Option will expire upon the termination of
the Optionee’s service if and to the extent the Option has not then become
exercisable.

 

3.                                       Acceleration of Vesting. The Option
will become fully exercisable if, before the first anniversary of the Date of
Grant, (a) the Optionee’s service terminates by reason of the Optionee’s death,
retirement after age 65 or retirement with the consent of LST (subject, in the
case of retirement, to such other conditions as LST may impose), or (b) there
is a Change in Control (within the meaning of Section 9(d) of the Plan) and,
within two years after the Change in Control, the Optionee’s service terminates
by reason of his removal without Cause (within the meaning of Section 5(e)(ii)
of the Plan).

 

4.                                       Periods in which Option Exercisable.
If and to the extent the Option becomes exercisable, it may be exercised in
whole or in part until (a) the third anniversary of the termination of the
Optionee’s service in the case of a termination described in Section 3, whether
or not such termination occurred before the first anniversary of the Date of
Grant, (b) the first anniversary of the Optionee’s death if the Optionee dies
after the termination of his service, but only to the extent the Option was
otherwise exercisable at the time of his death (provided that nothing in this
Section 4(b) shall shorten any longer period to which the Optionee is entitled
under Section 4(a)), (c) the date of the termination of the Optionee’s service
for Cause (as defined in the Plan), and (d) the date 90 days after the date of
the termination of the Optionee’s service for any reason other than those
described in (a)-(c) above.

 

1

 

5.                                       Expiration of Option. The Option
will expire if and to the extent it is not (or does not become) exercisable
upon the termination of the Optionee’s service or is not exercised within the
applicable period following the Optionee’s death or termination of service
during which it remains exercisable (or, in the case of a termination for
Cause, to the extent it is not exercised before such termination of service).
Notwithstanding anything to the contrary herein, the Option will not be
exercisable after the fifth anniversary of the Date of Grant and, to the extent
not previously exercised, will expire on such date.

 

6.                                       Exercise. The Option, to the extent
exercisable, may be exercised in whole or in part by delivering to the Secretary
of LST (a) a written notice specifying the number of shares to be purchased and
(b) payment in full of the exercise price per share multiplied by the number of
shares with respect to which the Option is being exercised, together with the
amount (if any) deemed necessary by LST to enable it to satisfy any income tax
withholding obligations attributable to the exercise (unless other arrangements
acceptable to LST are made for the satisfaction of such withholding
obligations). The exercise price shall be payable in one or more of the
following forms: (i) cash, (ii) shares of Common Stock having a fair market
value on the date of exercise at least equal to the exercise price, (iii) while
the Common Stock is publicly traded, through a cashless exercise procedure
permitted by LST in accordance with Regulation T of the Federal Reserve Board
and other applicable law, or (iv) by any other means as LST may permit.

 

7.                                       Transferability. Except for inter
vivos transfers to “family members” as may be permitted by the Human Resources
Committee pursuant to Section 5(f) of the Plan, the Option is not assignable or
transferable other than to a beneficiary designated to receive the Option upon
the Optionee’s death in a manner acceptable to the LST or by will or the laws
of descent and distribution, and the Option shall be exercisable during the
lifetime of the Optionee only by the Optionee (or, in the event of the
Optionee’s incapacity, the Optionee’s legal representative or guardian). Any
attempt by the Optionee or any other person claiming against, through or under
the Optionee to cause the Option or any part of it to be transferred or
assigned in any manner and for any purpose (other than as expressly permitted
by this instrument or the Plan) will be null and void and without effect upon
LST, the Optionee and any other person.

 

8.                                       Rights of Optionee. Nothing herein
contained shall confer on the Optionee any right with respect to the
continuation of directorship or employment or interfere with the right of LST
to terminate such directorship or the right of LST or any subsidiary of LST to
terminate such employment or, except as to shares actually issued, confer any
rights as a shareholder upon the holder hereof.

 

9.                                       Provisions of the Plan Control.
This Option is subject to all the terms, conditions and provisions of the Plan,
a copy which has been furnished or made available to the Optionee, and to such
rules, regulations and interpretations as may be established or made by the
Human Resources Committee acting within the scope of its authority and
responsibility under the Plan. The applicable provisions of the Plan shall
govern in any situation where this instrument is silent or where the applicable
provisions of this instrument are contrary to or not reconcilable with such
Plan provisions.

 

10.                                 Miscellaneous.
LST may affix to certificates representing shares issued pursuant to this
instrument any legend that LST determines to be necessary or advisable to
reflect any

 

2

 

restrictions to which the shares may be subject, whether by agreement
or otherwise. LST may advise the transfer agent to place a stop order against
any legended shares. LST shall have the right to offset against its obligation
to issue and  deliver shares under this
instrument any outstanding amounts owed by the Optionee to LST at the time
those shares would otherwise be issued and delivered. This Option shall be
governed by and construed in accordance with the laws of the State of Delaware,
without regard to its principles of conflict of laws. The terms of this Option
may not be amended, except as provided in the Plan or by a written instrument
executed by LST and the Optionee.

 

 

	
   

  	
  LONE STAR TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

3Exhibit
10.2

 

LONE STAR
TECHNOLOGIES, INC. 

FORM OF DIRECTOR RESTRICTED STOCK UNIT AWARD

 

Restricted
Stock Unit Award

Granted Pursuant to the

2004 Long-Term Incentive Plan

 

RESTRICTED STOCK UNIT AWARD granted [            ],
20[    ] (the “Date of Grant”) by Lone Star
Technologies, Inc. (“LST”) to [                ]
(“Recipient”)
pursuant to LST’s 2004 Long-Term Incentive Plan (the “Plan”).

 

1.                                       Grant of
Restricted Stock Units. 
LST hereby grants to the Recipient a total of [          ]
restricted stock units (“RSUs”), each representing the right to
receive one share of Common Stock, $1.00 par value, of LST (“Common Stock”)
at a price per share of $[        ],
upon the terms and conditions hereinafter stated.

 

2.                                       Vesting
and Forfeiture.

 

(a)                                  General.  Except as specifically provided herein, this
RSU award will vest in five equal annual installments beginning on the second
anniversary of the Date of Grant, subject to the Recipient’s continuing service
as a director of LST (“service”).

 

(b)                                 Acceleration of Vesting Upon
Involuntary Termination of Service.  Non-vested RSUs not previously forfeited will become fully vested
if, before the sixth anniversary of the Date of Grant, (a) the Recipient’s
service terminates by reason of the Recipient’s death, retirement after age 65
or retirement with the consent of LST (subject, in the case of retirement, to
such other conditions as LST may impose), or (b) there is a Change in Control
(within the meaning of Section 9(d) of the Plan) and, within two years after
the Change in Control, the Recipient’s service terminates by reason of his
removal without Cause (within the meaning of Section 5(e)(ii) of the Plan) or
his failure to be reelected or nominated for reelection without Cause.

 

(c)                                  Performance-Based Vesting.  Non-vested RSUs not previously forfeited
will become vested in accordance with the performance matrix set forth in
Schedule A annexed hereto. For the purposes of Schedule A, the “200[X]
Objective” is the income before taxes (“IBT”) of LST presented in its
Base Action Plan (“BAP”) for 200[X]; the “200[Y] Objective” is LST’s
IBT presented in its 200[Y] BAP; and the “200[X] Objective Shortfall” is the excess,
if any, of the 200[X] Objective over LST’s IBT for the year ended December 31,
200[X]. If any RSUs become vested under Row E of Schedule A, then Row D shall
become inapplicable. If any RSUs become vested under this subsection (c), then
subsection (a) shall cease to apply and future vesting, if any, will be
determined under this subsection (subject to acceleration under subsection (b)
above). Determinations as to whether the 200[X] Objective or the 200[Y]
Objective has been achieved, or whether the 200[Y] IBT equals or exceeds the
sum of the 200[Y] Objective and the 200[X] Objective Shortfall, shall be made
by the Human Resources Committee of the Board of

 

1

 

Directors of LST (the “Human Resources Committee”) based on
audited financial statements for the appropriate year.  Any vesting of a RSU for a particular year
shall become effective as of the date of the applicable determination by the
Human Resources Committee.  Any decision
of the Human Resources Committee as to any question with respect to the RSUs
granted hereunder shall be final and conclusive on all persons.

 

(d)                                 Forfeiture. The
Recipient shall forfeit any unvested RSUs upon the termination of the
Recipient’s service with LST (other than a termination of service that results
in the vesting of Recipient’s RSUs pursuant to Section 2(b) hereof).

 

3.                                       Issuance
and Delivery of Shares. Vested RSUs will be converted into
shares of Common Stock and a certificate for such shares registered in the name
of the Recipient will be delivered by LST to the Recipient on or as soon as
practicable after January 1st of the first year following the final
vesting of all the shares to which the RSUs relate.  LST may permit the Recipient to elect to defer the conversion of
vested RSUs, provided that only one such request may be made with respect to RSUs
that become vested and the request is made at least one year before the date
the RSUs otherwise would have been converted.

 

4.                                       Withholding.
The delivery of shares of Common Stock represented by RSUs is conditioned on
the Recipient’s payment of the amount (if any) deemed necessary by LST to enable
it to satisfy any income tax withholding obligations attributable to the
issuance of such shares (unless other arrangements acceptable to LST are made
for the satisfaction of such withholding obligations).

 

5.                                       Transferability.
The RSUs are not assignable or transferable other than to a beneficiary
designated to receive them upon the Recipient’s death in a manner acceptable to
LST or by will or the laws of descent and distribution, and any attempt by the
Recipient or any other person claiming against, through or under the Recipient
to cause any of the RSUs to be transferred or assigned in any manner and for
any purpose (other than as expressly permitted by this instrument or the Plan)
will be null and void and without effect upon LST, the Recipient and any other
person.

 

6.                                       Rights of
Recipient. Nothing herein contained shall confer on the
Recipient any right with respect to the continuation of directorship or
employment or interfere with the right of LST to terminate such directorship or
the right of LST or any subsidiary of LST to terminate such employment or,
except as to shares actually issued, confer any rights as a shareholder upon
the holder hereof.

 

7.                                       Provisions
of the Plan Control. This RSU award is subject to all the terms,
conditions and provisions of the Plan, a copy which has been furnished or made
available to the Recipient, and to such rules, regulations and interpretations
as may be established or made by the Human Resources Committee acting within
the scope of its authority and responsibility under the Plan. The applicable
provisions of the Plan shall govern in any situation where this instrument is
silent or where the applicable provisions of this instrument are contrary to or
not reconcilable with such Plan provisions.

 

2

 

8.                                       Miscellaneous.
LST may affix to certificates representing shares issued pursuant to this
instrument any legend that LST determines to be necessary or advisable to
reflect any restrictions to which the shares may be subject, whether by
agreement or otherwise. LST may advise the transfer agent to place a stop order
against any legended shares. LST shall have the right to offset against its
obligation to issue and  deliver shares
under this instrument any outstanding amounts owed by the Recipient to LST at
the time those shares would otherwise be issued and delivered. This RSU award
shall be governed by and construed in accordance with the laws of the State of
Delaware, without regard to its principles of conflict of laws. The terms of
this award may not be amended, except as provided in the Plan or by a written
instrument executed by LST and the Recipient.

 

 

	
   

  	
  LONE STAR
  TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}]]