Document:

Exhibit
10.37

 

ACCURIDE
CORPORATION

STOCK OPTION AGREEMENT

 

 

	
  Name:

  	
  Accuride
  Corporation 2005 Incentive Award Plan

  
	
  Address:

  	
   

  
	
   

  	
  Grant:

  	
  Option to purchase
  __________shares of Common Stock

  
	
   

  	
   

  
	
  Taxpayer

  	
  Incentive Stock Option _____

  
	
  Identification Number:

  	
  Non—Qualified Option _____

  
	
   

  	
   

  
	
   

  	
  Exercise Price: $

  
	
   

  	
   

  
	
  Signature:

  	
  Grant Date:

  

 

 

Effective
on the Grant Date you have been granted an option to purchase Common Stock of
Accuride Corporation (the “Company”) in the amount and at the exercise price
designated above, in accordance with the provisions of the Accuride Corporation
2005 Incentive Award Plan (the “Plan”). 
This option may be exercised for whole shares only.

This
option will vest and may be exercised in accordance with the performance
targets and in the amounts set forth on Exhibit A.

In
the event of the termination of your employment or service for any reason,
whether such termination is occasioned by you, by the Company or any of its
Subsidiaries, with or without cause or by mutual agreement (“Termination of
Service”), your right to vest in your option under the Plan, if any, will
terminate effective as of the earlier of: (i) the date that you give or are
provided with written notice of Termination of Service, or (ii) if you are an
employee of the Company or any of its Subsidiaries, the date that you are no
longer actively employed and physically present on the premises of the Company
or any of its Subsidiaries, regardless of any notice period or period of pay in
lieu of such notice required under any applicable statute or the common law
(each, the “Notice Period”).  For greater
clarity, you have no rights to vest in your option during the Notice Period.

Notwithstanding
the foregoing, this option shall be fully vested and exercisable (i) upon your
Termination of Service by reason of death, or (ii) upon a Change of Control.

The
option may not be exercised until vested. 
Once vested, the option may be exercised in whole or any part, at any
time.  However, a vested option must be
exercised, if at all, prior to the earlier of:

(a)                                  one year
following your Termination of Service with the Company by reason of death,
Permanent Disability or Permitted Retirement;

(b)                                 90 days
following your Termination of Service for any reason other than death,
Permanent Disability or Permitted Retirement; for this purpose your last day of
active employment or service will be deemed to occur on the date of the closing
of the sale of all or substantially all of the stock or assets of a Subsidiary
for which you are employed at the time of the transaction;

(c)                                  the opening of
business on the date of your Termination of Service by the Company for Cause;

 

 

(d)                                 the tenth
anniversary of the Grant Date;

and
if not exercised prior thereto shall terminate and no longer be
exercisable.  “Permanent Disability”
means that you are unable to engage in the activities required by employment by
reason of any medically determined physical or mental impairment which can be
expected to result in death or which has lasted or is expected to last for a
continuous period of at least 12 months, as reasonably determined by the Board
of Directors in its discretion. 
“Permitted Retirement” means your Termination of Service at (i) age 55
or over after having served the Company for at least ten years, or (ii) after
age 65 and other than by reason of termination for Cause, death, or Permanent
Disability.  “Cause” means termination of
your employment by reason of (i) your willful and continued failure to perform
your duties with respect to the Company or its Subsidiaries which continues
beyond ten days after a written demand for substantial performance is delivered
to you by the Company, or (ii) your conduct involving (x) dishonesty or breach
of trust in connection with your employment, or (y) conduct which would be reasonable
basis for your indictment for a felony or for a misdemeanor involving moral
turpitude.

The
option will be deemed exercised upon your completing the exercise procedures
established by the Company and your payment of the option exercise price per
share and any applicable tax withholding to the Company.  Payment may be made in cash or such other
method as the Company may permit from time to time as set forth in the Plan.

The
Company has the authority to deduct or withhold, or require you to remit to the
Company, an amount sufficient to satisfy applicable federal, state, local and
foreign taxes arising from this option. 
You may satisfy your tax obligation, in whole or in part, by either:  (i) electing to have the Company withhold
shares otherwise to be delivered with a fair market value equal to the minimum
amount of the tax withholding obligation; or (ii) surrendering to the Company
previously owned Common Stock with a fair market value equal to the minimum
amount of the tax withholding obligation.

This
option is not transferable except by will or the laws of descent and
distribution.

This
option is granted under and governed by the terms and conditions of the
Plan.  You acknowledge and agree that the
Plan is discretionary in nature and may be amended, cancelled, or terminated by
the Company, in its sole discretion, at any time.  The grant of an option under the Plan is a
one-time benefit and does not create any contractual or other right to receive
a grant of options or benefits in lieu of options in the future.  Future grants of options, if any, will be at
the sole discretion of the Company, including, but not limited to, the timing
of the grant, the number of stock options, vesting provisions, and the exercise
price.  The Plan has been introduced
voluntarily by the Company and in accordance with the provisions of the Plan
may be terminated by the Company at any time. 
By execution of this Agreement, you consent to the provisions of the
Plan and this Agreement.  Defined terms
used herein shall have the meaning set forth in the Plan, unless otherwise
defined herein.

 

 

	
  COMPANY:

  
	
   

  
	
   

  
	
  ACCURIDE CORPORATION

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  

 

2

 

EXHIBIT
A

 

 

Twenty-five percent (25%) of the shares
subject to the Option shall vest on the first anniversary of the Grant Date,
provided that the Target Adjusted EBITDA for such year is achieved and, thereafter
twenty-five percent (25%) of the shares subject to the Option shall vest on the
last day of the Company’s fiscal year during the Vesting Period, provided that
the Target Adjusted EBITDA for such year is achieved.

 

For this purpose, “Target Adjusted EBITDA”
means the amount of earnings before interest, taxes, depreciation and
amortization as set by the Committee for each year, adjusted for non-recurring
or unusual items in the discretion of the Committee.  The Target Adjusted EBITDA for the Company’s
fiscal year which includes the Grant Date is ___________.  The Target Adjusted EBITDA for each other year
during the Vesting Period will be set by the Committee within 90 days after the
beginning of the Company’s fiscal year.

 

The “Vesting Period” means the three fiscal
years of the Company commencing with the first fiscal year commencing after the
Grant Date.

 

If the Target Adjusted EBITDA for any year is
not met then the portion of the option subject to vesting for such year shall
be forfeited and cancelled.

 

3Exhibit 10.38

 

	
  ACCURIDE CORPORATION

  STOCK OPTION AGREEMENT

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Accuride
  Corporation 2005 Incentive Award Plan

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  Grant:

  	
  Option to purchase __________ shares
  of

  Common Stock

  
	
   

  	
   

  
	
   

  	
  Incentive Stock Option _____

  
	
  Taxpayer

  	
  Non—Qualified Option _____

  
	
  Identification Number:

  	
   

  	
   

  
	
   

  	
  Exercise Price: $

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
  Grant Date:

  	
   

  
	
   

  
					

 

Effective
on the Grant Date you have been granted an option to purchase Common Stock of
Accuride Corporation (the “Company”) in the amount and at the exercise price
designated above, in accordance with the provisions of the Accuride Corporation
2005 Incentive Award Plan (the “Plan”). 
This option may be exercised for whole shares only.

This
option will vest and may be exercised in accordance with the following
schedule:

25% of the shares subject to the option will
be vested on the first anniversary of the Grant Date, and 25% shall vest on
each December 31, thereafter with full vesting on the fourth December 31
following the Grant Date.

In
the event of the termination of your employment or service for any reason,
whether such termination is occasioned by you, by the Company or any of its
Subsidiaries, with or without cause or by mutual agreement (“Termination of
Service”), your right to vest in your option under the Plan, if any, will
terminate effective as of the earlier of: (i) the date that you give or are
provided with written notice of Termination of Service, or (ii) if you are an
employee of the Company or any of its Subsidiaries, the date that you are no
longer actively employed and physically present on the premises of the Company
or any of its Subsidiaries, regardless of any notice period or period of pay in
lieu of such notice required under any applicable statute or the common law
(each, the “Notice Period”).  For greater
clarity, you have no rights to vest in your option during the Notice Period.

Notwithstanding
the foregoing, this option shall be fully vested and exercisable (i) upon your
Termination of Service by reason of death, or (ii) upon a Change of Control.

The
option may not be exercised until vested. 
Once vested, the option may be exercised in whole or any part, at any
time.  However, a vested option must be
exercised, if at all, prior to the earlier of:

(a)                                  one year
following your Termination of Service with the Company by reason of death,
Permanent Disability or Permitted Retirement;

(b)                                 90 days
following your Termination of Service for any reason other than death,
Permanent Disability or Permitted Retirement; for this purpose your last day of
active employment or service will be deemed to occur on the date of the closing
of the sale of all or substantially all of the stock or assets of a Subsidiary
for which you are employed at the time of the transaction;

 

(c)                                  the opening of
business on the date of your Termination of Service by the Company for Cause;

(d)                                 the tenth
anniversary of the Grant Date;

and if not exercised prior
thereto shall terminate and no longer be exercisable.  “Permanent Disability” means that you are
unable to engage in the activities required by employment by reason of any
medically determined physical or mental impairment which can be expected to
result in death or which has lasted or is expected to last for a continuous
period of at least 12 months, as reasonably determined by the Board of
Directors in its discretion.  “Permitted
Retirement” means your Termination of Service at (i) age 55 or over after
having served the Company for at least ten years, or (ii) after age 65 and
other than by reason of termination for Cause, death, or Permanent
Disability.  “Cause” means termination of
your employment by reason of (i) your willful and continued failure to perform
your duties with respect to the Company or its Subsidiaries which continues
beyond ten days after a written demand for substantial performance is delivered
to you by the Company, or (ii) your conduct involving (x) dishonesty or breach
of trust in connection with your employment, or (y) conduct which would be
reasonable basis for your indictment for a felony or for a misdemeanor involving
moral turpitude.

The option will be deemed
exercised upon your completing the exercise procedures established by the
Company and your payment of the option exercise price per share and any
applicable tax withholding to the Company. 
Payment may be made in cash or such other method as the Company may
permit from time to time as set forth in the Plan.

The Company has the
authority to deduct or withhold, or require you to remit to the Company, an
amount sufficient to satisfy applicable federal, state, local and foreign taxes
arising from this option.  You may
satisfy your tax obligation, in whole or in part, by either:  (i) electing to have the Company withhold
shares otherwise to be delivered with a fair market value equal to the minimum
amount of the tax withholding obligation; or (ii) surrendering to the Company
previously owned Common Stock with a fair market value equal to the minimum
amount of the tax withholding obligation.

This option is not
transferable except by will or the laws of descent and distribution.

This option is granted under
and governed by the terms and conditions of the Plan.  You acknowledge and agree that the Plan is
discretionary in nature and may be amended, cancelled, or terminated by the
Company, in its sole discretion, at any time. 
The grant of an option under the Plan is a one-time benefit and does not
create any contractual or other right to receive a grant of options or benefits
in lieu of options in the future.  Future
grants of options, if any, will be at the sole discretion of the Company,
including, but not limited to, the timing of the grant, the number of stock
options, vesting provisions, and the exercise price.  The Plan has been introduced voluntarily by
the Company and in accordance with the provisions of the Plan may be terminated
by the Company at any time.  By execution
of this Agreement, you consent to the provisions of the Plan and this
Agreement.  Defined terms used herein
shall have the meaning set forth in the Plan, unless otherwise defined herein.

 

 

COMPANY:

 

ACCURIDE CORPORATION

 

2

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  

3

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