Document:

EXHIBIT 10.10

 

MONACO COACH CORPORATION

1993 INCENTIVE STOCK OPTION PLAN

STOCK OPTION AGREEMENT

 

Unless otherwise defined herein, the terms defined in the Plan shall
have the same defined meanings in this Option Agreement.

 

I.              NOTICE OF STOCK
OPTION GRANT

 

«Name»

«Address1»

«Address2»

 

Pursuant to the terms and conditions of the Plan and this Option
Agreement, you have been granted an Incentive Stock Option to
purchase                   
shares (the ‘Option’) of stock as outlined below.

 

Granted To:

 

Grant Date:

 

Options Granted:                                                                 Total
Cost to Exercise:

 

Option Price Per Share:

 

Expiration Date:

 

Vesting Schedule:

 

This option may be exercised, in whole or in part, in accordance with
the following schedule:

 

20% per year for 5 years

(vesting schedule)

 

1

 

Termination Period:

 

This Option may be exercised for 90 days after termination of your
employment or consulting relationship, or such longer period as may be
applicable upon death or disability of Optionee as provided in the Plan, but in
no event later than the Term/Expiration Date as provided above.

 

II.            AGREEMENT

 

1.             Grant of Option.
The Plan Administrator of the Company hereby grants to the Optionee named in
the Notice of Grant attached as Part I of this Agreement (the “Optionee”), an
option (the “Option) to purchase a number of Shares, as set forth in the Notice
of Grant, at the exercise price per share set forth in the Notice of Grant (the
“Exercise Price”), subject to the terms and conditions of the Plan, which is
incorporated herein by reference. Subject to Section 16(c) of the Plan, in the
event of a conflict between the terms and conditions of the Plan and the terms
and conditions of the Option Agreement, the terms and conditions of the Plan
shall prevail.

 

If designated in the Notice of grant as an Incentive Stock Option (“ISO”),
this Option is intended to qualify as an Incentive Stock Option under Section
422 of the Code. However, if this Option is intended to be an Incentive Stock
Option, to the extent that it exceeds the $100,000 rule of Code Section 422(d)
it shall be treated as a Nonstatutory Stock Option (“NSO”).

 

2.             Exercise of Option.

 

(a)           Right of Exercise.
This Option is exercisable during its term in accordance with the Vesting
Schedule set out in the Notice of Grant and the applicable provisions of the
Plan and the Option Agreement. In the event of Optionee’s death, disability or
other termination of Optionee’s employment or consulting relationship, the
exercisability of the Option is governed by the applicable provisions of the
Plan and this Option Agreement.

 

(b)           Method of Exercise.
This Option is exercisable by delivery of an exercise notice, in the form
attached as Exhibit A (the “Exercise Notice”), which shall state the election
to exercise the Option, the number of shares in respect of which the Option is
being exercised (the “Exercised Shares”), and such other representations and
agreements as may be required by the Company pursuant to the provisions of the
Plan. The Exercise Notice shall be accompanied by payment of the aggregate
Exercise Price as to all Exercised Shares. This Option shall be deemed to be
exercised upon receipt by the Company of such fully executed Exercise Notice
accompanied by such aggregate Exercise Price.

 

No Shares shall be issued pursuant to the exercise of this Option
unless such issuance and exercise complies with all relevant provisions of law
and the requirements of any stock exchange or quotation service upon which the
Shares are then listed. Assuming such compliance, for income tax purposes the
Exercised Shares shall be considered transferred to the Optionee on the date
the Option is exercised with respect to such Exercised Shares.

 

2

 

3.             Method
of Payment. Payment of the aggregate Exercise Price shall be by any of the
following, or a combination thereof, at the election of the Optionee:

 

(a)           cash; or

 

(b)           check; or

 

(c)           delivery of a properly
executed exercise notice together with such other documentation as the Administrator
and the broker, if applicable, shall require to effect an exercise of the
Option and delivery to the Company of the sale or loan proceeds required to pay
the exercise price; or

 

(d)           surrender of other
Shares which (i) in the case of Shares acquired upon exercise of an Option,
have been owned by the Optionee for more than six (6) months on the date of
surrender, and (ii) have a Fair Market Value
on the date of surrender equal to the aggregate Exercise Price of the Exercised
Shares.

 

4.             Non-Transferability
of Option. This Option may not be transferred in any manner otherwise than
by will or by the Laws of descent or distribution and may be exercised during
the lifetime of Optionee only by the Optionee. the terms of the Plan and this
Option Agreement shall be binding upon the executors, administrators, heirs,
successors and assigns of the Optionee.

 

5.             Term of Option.
This Option may be exercised only within the term set out in the Notice of
Grant, and may be exercised during such term only in accordance with the Plan
and the terms of this Option Agreement.

 

6.             Tax
Obligations.

 

(a)           Exercising the
Option.

 

(i)            Nonqualified Stock
Option (“NSO”). If this Option does not qualify as an ISO, the Optionee may
incur regular federal income tax liability upon exercise. The Optionee will be
treated as having received compensation income (taxable at ordinary income tax
rates) equal to the excess, if any, of the fair market value of the Exercised
Shares on the date of exercise over their aggregate Exercise Price. If the
Optionee is an employee, the Company will be required to withhold from his or
her compensation or collect from Optionee and pay to the applicable taxing
authorities and amount equal to a percentage of this compensation income at the
time of exercise.

 

(ii)           Incentive Stock
Option (“ISO”). If this Option qualifies as an ISO, the Optionee will have
no regular federal income tax liability upon its exercise, although the excess,
if any, of the fair market value of the Exercised Shares on the date of exercise
over their aggregate Exercise Price will be treated as an adjustment to the
alternative minimum tax for federal tax purposes and may subject the Optionee
to alternative minimum tax in the year of exercise.

 

3

 

(b)           Withholding Taxes.
Optionee agrees to make appropriate arrangements with the Company (or the
Parent or Subsidiary employing or retaining Optionee) for the satisfaction of
all Federal, state, local and foreign income and employment tax withholding requirements
applicable to the Option exercise. Optionee acknowledges and agrees that the
Company may refuse to honor the exercise and refuse to deliver Shares if such
withholding amounts are not delivered at the time of exercise.

 

(c)           Disposition of Shares.

 

(i)            NSO. If the
Optionee holds NSO Shares for at least one year, any gain realized on
disposition of the Shares will be treated as long-term capital gain for federal
income tax purposes.

 

(ii)           ISO. If the
Optionee holds ISO Shares for at least one year after exercise and two years after grant date, any gain realized on
disposition of the Shares will be treated as a long-term capital gain for
federal income tax purposes. If the Optionee disposes of ISO Shares within one
year after exercise or two years after the grant date, any gain realized on
such disposition will be treated as compensation income (taxable at lesser of (A) the difference between the fair market value of the Shares acquired on the date of exercise
and the aggregate Exercise Price, or (B) the difference between the sale price of such Shares and the aggregate Exercise Price.

 

(d)           Notice of
Disqualifying Disposition of ISO Shares. If the Option granted to Optionee
herein is an ISO, and if Optionee sells or otherwise disposes of any of the Shares
acquired pursuant to the ISO on or before the later of (1) the date two
years after the Date of Grant, or (2) the date one year after the date of
exercise, the Optionee shall immediately notify the Company in writing of such
disposition. Optionee agrees that Optionee may be subject to income tax
withholding by the Company on the compensation income recognized by the
Optionee.

 

7.             Entire Agreement;
Governing Law. The Plan is incorporated herein by reference. The Plan and
this Option Agreement constitute the entire agreement of the parties with
respect to the subject matter hereof and supersede in their entirety all prior
undertakings and agreements of the Company and Optionee with respect to the
subject matter hereof, and may not be modified adversely to the Optionee’s
interest except by means of a writing signed by the Company and Optionee. This
agreement is governed by the internal substantive laws, but not the choice of
law rules, of the State of Delaware.

 

8.             No Guarantee Of
Continued Service. Optionee acknowledges and agrees that the vesting of
shares pursuant to the vesting schedule hereof is earned only by continuing as
a service provider at the will of the company (and not through the act of being
hired, being granted an option or purchasing shares hereunder). Optionee
further acknowledges and agrees that this agreement, the transactions
contemplated hereunder and the vesting schedule set forth herein do not
constitute an express or implied promise of continued engagement as a service
provider for the vesting period, for any period, or at all, and shall not
interfere with optionee’s right or the company’s right to terminate optionee’s
relationship as a service provider at any time, with or without cause.

 

4

 

By Optionee’s signature and the signature of the Company’s
representative below, Optionee and the Company agree that this Option is
granted under and governed by the terms and conditions of the Plan and this
Option Agreement. Optionee has reviewed the Plan and this Option Agreement in
their entirety, has had an opportunity to obtain the advice of counsel prior to
executing this Option Agreement and fully understand all provisions of the Plan
and Option Agreement. Optionee hereby agrees to accept as binding, conclusive
and final all decisions or interpretations of the Administrator upon any
question relating to the Plan and Option Agreement. Optionee further agrees to
notify the Company upon any change in the residence address indicated on the
first page of this Option Agreement.

 

 

	
  OPTIONEE:

  	
   

  	
  MONACO COACH CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Signature

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  	
  Date

  	
   

  
						

 

5

 

EXHIBIT A

 

MONACO
COACH CORPORATION

 

1993
INCENTIVE STOCK OPTION PLAN

 

EXERCISE
NOTICE

 

Monaco Coach Corporation

Attention:  Chief Financial Officer

 

I.                              Exercise of Option. Effective as of today,                            ,
200    , the undersigned (“Purchaser”) hereby elects to
purchase the following shares (the “Shares”) of the Common Stock of Monaco
Coach Corporation (the “Company”) under and pursuant to the Monaco Coach
Corporation 1993 Incentive Stock Option Plan (the “Plan”) and the corresponding
Stock Option Agreements (the “Option Agreement”). The purchase price for the
Shares shall be as follows, as required by the Option Agreement.

 

	
  NUMBER OF SHARES

  	
   

  	
  DATE OF
  OPTION GRANT

  	
   

  	
  PRICE
  PER SHARE

  	
   

  	
  TOTAL
  COST

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

II.                            Delivery of Payment. Purchaser herewith delivers
to the Company the full purchase price for the Shares together with any
applicable withholding taxes.

 

III.                           Representations of Purchaser. Purchaser acknowledges that
Purchaser has received, read and understood the Plan and the Option Agreement
and agrees to abide by and be bound by their terms and conditions.

 

IV.                           Rights as Stockholder. Until the issuance (as
evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company) of the Shares, no right to vote or
receive dividends or any other rights as a stockholder shall exist with respect
to the Optioned Stock, notwithstanding the exercise of the Option. Shares so
acquired shall be issued to the Optionee as soon as practicable after exercise
of the Option. No adjustment will be made for a dividend or other right for
which the record date is prior to the date of issuance, except as provided in
Section 14 of the Plan.

 

V.                            Tax Consultation. Purchaser understands that
Purchaser may suffer adverse tax consequences as a result of Purchaser’s
purchase or disposition of the Shares. Purchaser represents that Purchaser has
consulted with any tax consultants Purchaser deems advisable in connection with
the purchase or disposition of the Shares and that Purchaser is not relying on
the Company for any tax advice.

 

6

 

VI.                           Entire Agreement; Governing Law. The Plan and Option Agreement
are incorporated herein by reference. This Agreement, the Plan and the Option
Agreement constitute the entire agreement of the parties and supersede in their
entirety all prior undertakings and agreements of the Company and Purchaser
with respect to the subject matter hereof. This agreement is governed by the
internal substantive laws, but not the choice of law rules, of the State of
Delaware.

 

 

	
  Submitted by:

  	
   

  	
  Accepted by:

  
	
   

  	
   

  	
   

  	
   

  
	
  PURCHASER:

  	
   

  	
   

  	
  MONACO COACH CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Signature

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  
	
  Print Name

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
						

 

7EXHIBIT
10.11

 

MONACO
COACH CORPORATION

 

IRREVOCABLE
ELECTION UNDER DIRECTOR STOCK PLAN

 

FISCAL
YEAR           

 

Complete this form if you
want to receive a portion of the value of your cash retainer to be earned in fiscal
year             
(the “Retainer”) for serving as a member of the Board of Directors of Monaco
Coach Corporation (the “Company”) in the form of either an option (“Retainer
Stock Option”) to purchase the Company’s common stock (“Common Stock”) or a
Common Stock payment (“Common Stock Payment”). The terms of Retainer Stock
Options and Common Stock Payments will be determined in accordance with the
provisions of the Company’s Director Stock Plan (the “Plan”). A copy of the
Plan is attached hereto as Exhibit A. You should read the Plan before deciding
whether or not to make an election under the Plan.

 

	
  Name of
  Director:

  	
   

  	
   

  

 

Important   -   This form must be completed, signed and delivered to
the Company no later than                                     .

 

ELECTION FOR FISCAL YEAR 2006

 

I elect to receive              %
(Must be an increment of 10% and percentage must be between 10% and 50%) of my
Retainer in the form of a:

(Choose one)

 

	
  o    Common Stock
  Payments

  	
   

  	
  o    Retainer Stock
  Option

  

 

Once you make your election, it is irrevocable for fiscal year                . The election applies only to your
compensation for fiscal year              .
You will need to make additional elections in the future if you would like to
receive Common Stock Payments or Retainer Stock Options in other years.

 

If you elect to receive a Retainer Stock Option, it
will be issued to you on                                 .
If you elect to receive Common Stock Payments, the Company will issue them to
you on                           ,
                          ,
                          
and                           .
The terms of Retainer Stock Options and Common Stock Payments are determined in
accordance with the provisions of the Plan. Each award of a Common Stock
Payment or a Retainer Stock Option will be evidenced by an agreement to be
executed by the Company and the participating director.

 

	
  Signed:

  	
   

  	
   

  	
  Date:

  	
   

  

 

Return this form to: Monaco Coach Corporation, 91320 Coburg Industrial
Way, Coburg, OR  97408

 

 

EXHIBIT A

 

DIRECTOR
STOCK PLAN

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