Document:

Exhibit 10.4

 

Exhibit 10.4

RENT-WAY, INC.

STOCK OPTION AGREEMENT

     THIS AGREEMENT (“Agreement”) is made and entered into as of this «Day» day of «Month» «Year»,
by and between Rent-Way, Inc., a Pennsylvania corporation (the “Company”) and the undersigned
employee (the “Optionee”).

WITNESSETH:

     WHEREAS, the Company has determined that an option to purchase shares of common stock of the
Company be granted to Optionee under the Rent-Way «PlanYear» Stock Option Plan (the “Plan”); and

     WHEREAS, the Board of Directors of the Company or a committee thereof has approved the grant
evidenced hereby.

     NOW, THEREFORE, in consideration of the premises, the mutual promises and representations
contained in this Agreement, and intending to be legally bound, the parties agree as follows:

	 	1.  	Stock Option. The Company hereby grants to Optionee an option (the
“Option”) to purchase, upon the terms and conditions set forth herein and in the Plan,
that number of shares of common stock of the Company set forth on Exhibit A. Subject
to the terms of the Plan and applicable law, the Option will be treated as an incentive
stock option or as a non-qualified stock option (in each case as such terms are defined
in the Plan) as set forth on Exhibit A.
	 
	 	2.  	Terms of Stock Option. The Option is subject to the following terms
and conditions:

	 	a.  	The exercise price is set forth on Exhibit A.
	 
	 	b.  	The Option will vest immediately. The shares of stock subject
to the Option will be subject to restrictions on transfer described on Exhibit
A. The certificates representing such shares shall bear a legend with respect
to those restrictions determined by the Company.
	 
	 	c.  	The Option may be exercised in whole or in part at any time or
from time to time by delivering a written notice (in the form attached hereto)
to the Company and paying to the Company the exercise price. Subject to
paragraph (e) below, if Optionee ceases to be employed by, or ceases to be in
the service of the Company for any reason other than death or disability,
Optionee will have the right to exercise the Option at any time within
three months after such termination, but only to the extent the Option was
exercisable at the date of such termination. Any portion of the Option not
then exercised will immediately expire following such three-month period.

 

 

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	 	   	In no event may the Option be exercised after its expiration date.
	 
	 	d.  	The Option may be exercised only by Optionee during his or her
lifetime, except in the case of death or disability, in which case it may be
exercised, in whole or in part, within one year following such death or
disability to the extent Optionee could have exercised the Option as of the
date of death or disability, by the person or persons who acquire the Option by
bequest or inheritance or by the Optionee’s legal representative. In no event
may the Option be exercised after its expiration date. The determination of
whether Optionee’s employment with or service to the Company has ceased due to
disability will be made by the Compensation Committee of the Company’s Board of
Directors or such other body administering the Plan in accordance with its
terms.
	 
	 	e.  	Notwithstanding the second sentence of paragraph (c) above, the
Option will expire automatically and may not be exercised following the
involuntary termination of Optionee’s employment with or service to the
Company. The determination of whether Optionee’s employment with or service to
the Company has been involuntarily terminated will be made by the Compensation
Committee of the Company’s Board of Directors or such other body administering
the Plan in accordance with its terms.
	 
	 	f.  	The exercise price will be payable to the Company upon the
exercise of the Option either (i) in cash or by check, (ii) by delivery of
Company common stock already owned by Optionee having a fair market value equal
to the exercise price or (iii) by a combination of (i) and (ii) above. To the
extent not inconsistent with the restrictions on transfer pertaining to the
stock subject to the Option as described on Exhibit A, the Option may also be
exercised by delivery to the Company of an irrevocable written notice
instructing the Company to deliver the shares deliverable upon exercise of the
Option to a broker selected by the Company, subject to the broker’s written
guarantee to deliver cash to the Company in the full amount of the exercise
price due on the Option’s exercise. The fair market value of stock delivered
in payment of the exercise price of the Option will be determined as of any
date in the same manner as the exercise price in accordance with the terms of
the Plan.
	 
	 	g.  	The Option will expire automatically at 11:59 p.m. Erie,
Pennsylvania local time on the expiration date as set forth on Exhibit A.

	 	3.  	Rights as Shareholder. Optionee will have no rights as a shareholder
with respect to any shares covered by the Option until the date of the issuance of a
stock certificate representing the shares acquired on exercise thereof.
	 
	 	4.  	Investment Purpose. This Option is granted on the condition that the
purchases of stock covered by the Option will be for investment purposes, and not with
a view towards resale or distribution. However, in the event the stock subject to the
Option is registered under the Securities Act of 1933, as amended, or a resale of

 

 

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	 	   	stock
without registration with the Securities and Exchange Commission would otherwise be
permissible, such condition will be inoperative if, in the opinion of counsel for the
Company, such condition is not required under the Securities Act of 1933 or any other
applicable law, regulation, or rule of any governmental agency, national securities
exchange or national securities association. All certificates for common stock issued
by the Company pursuant to this Agreement may contain the following statement:

	 	   	   	The securities represented by this certificate have not been
registered under any applicable federal or state securities
acts in reliance upon exemptions under those acts. These
securities may not be transferred unless the Company
receives a satisfactory opinion of counsel that such
transfer has been registered or is exempt from registration
under applicable securities laws.

	 	5.  	No Right to Continued Employment. Nothing in this agreement, the Plan
or any agreement or instrument delivered in connection herewith or therewith confers
upon Optionee the right to continue in the employ of or continue to provide service to
the Company or to be entitled to any remuneration or benefits not set forth in this
Agreement, the Plan or any other agreement, or to interfere with or limit in any way
the right of the Company to terminate Optionee’s employment or service.
	 
	 	6.  	Miscellaneous.

	 	a.  	This Agreement is binding upon the parties and their heirs,
legal representatives, successors and assigns.
	 
	 	b.  	This Agreement is subject to the terms of the Plan in all
respects. Any term or provision hereof that is inconsistent with the Plan will
be inoperative and the Plan will control.
	 
	 	c.  	The Option represented hereby is not transferable by the
Optionee except by will or the laws of descent and distribution.
	 
	 	d.  	The Agreement is governed by and will be construed in
accordance with the laws of the Commonwealth of Pennsylvania.

 

 

-4-

     IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by its duly authorized
officer and Optionee has signed this Agreement.

	 	 	 
	OPTIONEE:

	 	RENT-WAY, INC.
	 
	 	 
	«OptioneeName»
	 	 
	«OptioneeSSNumber»
	 	 
	 
	 	 
	

Signature of Optionee

	 	By: 

William E. Morgenstern
	 
	 	 
	

Print Name of Optionee

	 	Title: Chief Executive Officer
	 
	 	 
	

Address
	 	 
	 
	 	 
	

Address
	 	 

 

 

EXHIBIT A

Number of shares subject to Option: «NumberofShares»

Tax status of Option: «TaxStatus»

Exercise price of Option: $«ExercisePrice»

Exercisability: The Option will vest and become exercisable immediately on grant.

Expiration Date: The Option may be exercised within a five (5) year period from the date of
grant.

Restrictions on Transfer: The shares received on exercise of the Option will not be
transferable except as follows:

33 1/3% on and after the third anniversary of the grant date of the Option.

33 1/3% on and after the fourth anniversary of the grant date of the Option.

33 1/3% on and after the fifth anniversary of the grant date of the Option.

 

 

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EXERCISE OF STOCK OPTION AND DECLARATION

     Pursuant to the provisions of the stock option agreement entered into as of ___,
200___between Rent-Way, Inc. (the “Company”) and the undersigned as Optionee, I hereby exercise the
Option granted thereunder to the extent of ___shares of common stock of the Company. I hereby
make payment in full in accordance with the terms of the stock option agreement.

	 	 	 	 	 
	 	 	 
	Date: _____________, 20__ 	 	 
	 	(Optionee Signature)
 	 
	 	Print Name:  _________________________

Social Security Number:  _______________

Address: __________________________<PAGE>

                                                                 Exhibit 10.1

                        FORM OF INDEMNIFICATION AGREEMENT

         RTI International Metal, Inc. has entered into an Indemnification
Agreement in the form attached with each of the individuals listed below,
effective as of the date set forth opposite such individual's name.

<TABLE>
<CAPTION>
               Name and Title                                                    Date
               --------------                                                    ----
<S>                                                                         <C>
Craig R. Andersson, Director                                                  May 6, 2005

Neil A. Armstong, Director                                                    May 6, 2005

Daniel I. Booker, Director                                                    May 6, 2005

Donald P. Fusilli, Jr., Director                                              May 6, 2005

Ronald L. Gallatin, Director                                                  May 6, 2005

Charles C. Gedeon, Director                                                   May 6, 2005

Robert M. Hernandez, Director                                                 May 6, 2005

Edith Holiday, Director                                                       May 6, 2005

Timothy G. Rupert, President, Chief Executive Officer and Director            May 6, 2005

John H. Odle, Executive Vice President and Director                           May 6, 2005

Gordon L. Berkstresser, Vice President and Controller                         May 6, 2005

Dawne S. Hickton, Vice President and General Counsel                          May 6, 2005

Lawrence W. Jacobs, Vice President and Chief Financial Officer                May 6, 2005

</TABLE>

<PAGE>

                            INDEMNIFICATION AGREEMENT
                                     BETWEEN
                         RTI INTERNATIONAL METALS, INC.
                                       AND

                              --------------------

         THIS AGREEMENT is made this ___ day of ______________, 20___ by and
between RTI International Metals, Inc., an Ohio corporation (the "Corporation"),
and ______________________, an individual and a director and/or officer of the
Corporation (the "Indemnitee").

                                    RECITALS

         WHEREAS, Indemnitee is either a member of the Board of Directors or an
officer of the Corporation, or both, and in such capacity is performing a
valuable service for the Corporation;

         WHEREAS, the Corporation has adopted a Code of Regulations (the "Code")
wherein Article IV Section 1 provides for the indemnification of the Board of
Directors and officers of the Corporation to the full extent permitted by law;

         WHEREAS, the Ohio General Corporation Law, as amended to date (the
"Ohio Statute") specifically provides in Section 1701.13(E)(6) that it is not
exclusive, and thereby contemplates that contracts may be entered into between
the Corporation and its directors and officers with respect to indemnification
of such persons;

         WHEREAS, developments with respect to the application, amendment and
enforcement of statutory and other indemnification provisions generally have
raised questions concerning the adequacy and reliability of the protection
afforded to directors and officers thereby; and

         WHEREAS, in order to resolve such questions and thereby induce
Indemnitee to continue to serve as a member of the Board of Directors of the
Corporation or an officer, or both, the Corporation has determined and agreed to
enter into this contract with Indemnitee;

                                    AGREEMENT

         NOW, THEREFORE, in consideration of Indemnitee's continued service with
the Corporation after the date hereof the parties agree as follows:

         1. D&O INSURANCE. The Corporation represents that it has directors and
officers liability insurance ("D&O Insurance").

         2. INDEMNITY. Subject only to the exclusions set forth in Section 3
hereof, the Corporation hereby further agrees to hold harmless and indemnify
Indemnitee against any and all expenses (including attorneys' fees), judgments,
fines and amounts paid in settlement actually and reasonably incurred by
Indemnitee (and any federal, state, local or foreign taxes imposed as

                                       2
<PAGE>

a result of the actual or deemed receipt of any payments under this Agreement)
in connection with any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or investigative (including
an action by or in the right of the Corporation) to which Indemnitee is, was or
at any time becomes a party, or is threatened to be made a party, by reason of
the fact that Indemnitee is, was or at any time becomes a director or officer of
the Corporation, or is or was serving or at any time serves at the request of
the Corporation as a director, trustee, officer, employee, member, manager or
agent of another corporation, limited liability Corporation, partnership, joint
venture, trust or other enterprise to the fullest extent authorized and
permitted by the provisions of the Ohio Statute, or by any amendment thereof or
other statutory provisions authorizing or permitting such indemnification which
is adopted after the date hereof.

         3. LIMITATIONS ON INDEMNITY. No indemnity pursuant to Section 2 hereof
shall be paid by the Corporation:

                  (a) except to the extent the aggregate of losses to be
         indemnified hereunder exceed the amount of such losses for which the
         Indemnitee is indemnified either pursuant to Section 2 hereof or
         pursuant to any D&O Insurance purchased and maintained by the
         Corporation;

                  (b) in respect to remuneration paid to Indemnitee if it shall
         be determined by a final judgment or other final adjudication that such
         remuneration was in violation of law;

                  (c) on account of any suit in which judgment is rendered
         against an Indemnitee for an accounting of profits made from the
         purchase or sale by Indemnitee of securities of the Corporation
         pursuant to the provisions of Section 16(b) of the Securities Exchange
         Act of 1934 and amendments thereto or similar provisions of any
         federal, state or local statutory law;

                  (d) on account of Indemnitee's act or omission being finally
         adjudged to have involved an act or omission undertaken with deliberate
         intent to cause injury to the Corporation or undertaken with reckless
         disregard for the best interests of the Corporation; or

                  (e) if a final decision by a Court having jurisdiction in the
         matter shall determine that such indemnification is not lawful.

         4. ADVANCEMENT OF EXPENSES.

                  (a) As and to the extent provided in Section 1701.13 (E)(5)(a)
         of the Ohio Statute, the Corporation shall pay any expenses, including
         attorney's fees, incurred by Indemnitee in defending any action, suit,
         or proceeding, as they are incurred, in advance of the final
         disposition of the action, suit or proceeding provided that Indemnitee
         agrees to repay such amount if it is proved by clear and convincing
         evidence in a court of competent jurisdiction that his action or
         failure to act involved an act or omission undertaken with deliberate
         intent to cause injury to the Corporation or undertaken with reckless
         disregard for the Corporation, and the Indemnitee agrees to reasonably
         cooperate with the Corporation concerning such action, suit or
         proceeding.

                                       3
<PAGE>

                  (b) As and to the extent provided in Section 1701.13 (E)(5)(b)
         of the Ohio Statute, the Corporation shall pay any expenses, including
         attorney's fees, incurred by Indemnitee in defending any action, suit
         or proceeding as they are incurred, in advance of the final disposition
         of the action, suit, or proceeding based, in part, on the undertaking
         of Indemnitee set forth in Section 7 hereof, provided that such
         advancement by the Corporation is authorized by the Board of Directors
         of the Corporation in the specific case.

         5. CONTINUATION OF INDEMNITY. All agreements and obligations of the
Corporation contained herein shall continue during the period Indemnitee is a
director or officer of the Corporation (or is or was serving at the request of
the Corporation as a director, trustee, officer, employee, member, manager or
agent of another corporation, limited liability Corporation, partnership, joint
venture, trust or other enterprise) and shall continue thereafter so long as
Indemnitee shall be subject to any possible claim or threatened, pending or
completed action, suit or proceeding, whether civil, criminal or investigative,
by reason of the fact that Indemnitee was a director of the Corporation or
serving in any other capacity referred to herein.

         6. NOTIFICATION AND DEFENSE OF CLAIM. Promptly after receipt by
Indemnitee of notice of the commencement of any action, suit or proceeding,
Indemnitee will, if a claim in respect thereof is to be made against the
Corporation under this Agreement, notify the Corporation of the commencement
thereof; but the omission so to notify the Corporation will not relieve it from
any liability which it may have to Indemnitee otherwise than under this
Agreement. With respect to any such action, suit or proceeding as to which
Indemnitee notifies the Corporation of the commencement thereof:

                  (a) The Corporation will be entitled to participate therein at
         its own expense; and

                  (b) Except as otherwise provided below, to the extent that it
         may wish, the Corporation jointly with any other indemnifying party
         similarly notified will be entitled to assume the defense thereof, with
         counsel selected by the Corporation and reasonably satisfactory to
         Indemnitee. After notice from the Corporation to Indemnitee of its
         election so to assume the defense thereof, the Corporation will not be
         liable to Indemnitee under this Agreement for any legal or other
         expenses subsequently incurred by Indemnitee in connection with the
         defense thereof other than reasonable costs of investigation or as
         otherwise provided below. Indemnitee shall have the right to employ
         counsel in such action, suit or proceeding but the fees and expenses of
         such counsel incurred after notice from the Corporation of its
         assumption of the defense thereof shall be at the expense of Indemnitee
         unless (i) the employment of counsel by Indemnitee has been authorized
         by the Corporation, (ii) Indemnitee shall have reasonably concluded
         that there may be a conflict of interest between the Corporation and
         Indemnitee in the conduct of the defense of such action, or (iii) the
         Corporation shall not in fact have employed counsel to assume the
         defense of such action, in each of which cases the fees and expenses of
         counsel shall be at the expense of the Corporation. The Corporation
         shall not be entitled to assume the defense of any action, suit or
         proceeding brought by or on behalf of the Corporation or as to which
         Indemnitee shall have made the conclusion provided for in (ii) above.

                                       4
<PAGE>

                  (c) The Corporation shall not be liable to indemnify
         Indemnitee under this Agreement for any amounts paid in settlement of
         any action or claim effected without its written consent. The
         Corporation shall not settle in any manner which would impose any
         penalty or limitation on Indemnitee without Indemnitee's written
         consent. Neither the Corporation nor Indemnitee will unreasonably
         withhold their consent to any proposed settlement.

         7. REPAYMENT OF EXPENSES. Indemnitee agrees that Indemnitee will
reimburse the Corporation for all reasonable expenses paid by the Corporation in
defending any civil or criminal action, suit or proceeding against Indemnitee in
the event and only to the extent that it shall be ultimately determined that
Indemnitee is not entitled to be indemnified by the Corporation for such
expenses under the provisions of the Ohio Statute, the Code, this Agreement or
otherwise. Indemnitee shall, to the extent permitted by law, be indemnified for
all reasonable attorneys' fees incurred in defense or prosecution of a claim for
indemnification.

         8. CHANGE IN CONTROL/ESTABLISHMENT OF TRUST. In the event of a Change
in Control (as hereinafter defined) the Corporation shall, upon written request
by Indemnitee, create and fund a trust (the "Trust") for the benefit of
Indemnitee in an amount, determined by counsel selected by Indemnitee and
identified in the written request which counsel must: (i) under all applicable
law, regulation and standards of professional conduct, have no conflict of
interest by representing either the Corporation or Indemnitee, and (ii) be
reasonably satisfactory to the Corporation, to be an amount sufficient to
satisfy any and all claim for indemnity (including without limitation expenses)
by Indemnitee under this Agreement. The terms of the Trust shall provide that
(i) the Trust shall not be revoked or the principal thereof invaded without the
written consent of Indemnitee, (ii) the trustee shall advance, within ten
business days of a request by Indemnitee, any and all expenses to Indemnitee
(the Indemnitee hereby agrees to reimburse the Trust under the same
circumstances for which the Indemnitee would be required to reimburse the
Corporation under Sections 4(a) and 7 of this Agreement), (iii) the Trust shall
continue to be funded by the Corporation in accordance with the funding
obligation set forth above, (iv) the trustee shall promptly pay to Indemnitee
all amounts for which Indemnitee shall be entitled to indemnification pursuant
to this Agreement or otherwise, and (v) all unexpended funds in the Trust shall
revert to the Corporation upon a final determination by the independent counsel
or a court of competent jurisdiction, as the case may be, that Indemnitee has
been fully indemnified under the terms of this Agreement. The trustee shall be
chosen by the Indemnitee. Nothing in this Section 8 shall relieve the
Corporation of any of its obligations under this Agreement. All income earned on
the assets held in the Trust shall be reported as income by the Corporation for
federal, state, local and foreign tax purposes. The Corporation shall pay all
costs of establishing and maintaining the Trust and shall indemnify the trustee
against any and all expenses (including attorneys' fees), claims, liabilities,
loss, and damages arising out of or relating to this Agreement or the
establishment and maintenance of the Trust.

         For purposes of this Agreement, a Change in Control means a change in
control (other than one approved by a majority of the directors on the board of
the Corporation immediately prior to such Change in Control) of a nature that
would be required to be reported in response to Item 6(e) of Schedule 14A of
Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), whether or not the Corporation is then subject to such
reporting requirement; provided, that, without limitation, such a change in
control shall be deemed to have occurred if:

                                       5

<PAGE>

                  (1) Any person (within the meaning of that term as used in
         Sections 13(d) and 14(d) of the Exchange Act (a "Person"), is or
         becomes the "beneficial owner" (as defined in Rule 13d-3 under the
         Exchange Act), directly or indirectly, of securities of the Corporation
         representing twenty percent (20%) or more of the combined voting power
         of the Corporation's then outstanding voting securities; provided,
         however, that for purposes of this Plan the term "Person" shall not
         include (i) the Corporation or any of its majority-owned Subsidiaries,
         (ii) a trustee or other fiduciary holding securities under an employee
         benefit plan of the Corporation or any of its Subsidiaries, (iii) an
         underwriter temporarily holding securities pursuant to an offering of
         such securities, or (iv) a corporation owned, directly or indirectly,
         by the stockholders of the Corporation in substantially the same
         proportions as their ownership of stock of the Corporation; or

                  (2) A change in composition of the Board during any two year
         period such that the following individuals cease for any reason to
         constitute a majority of the number of directors then serving on the
         Board: individuals who, at the beginning of the two year period, are
         serving as directors on the Board and any new director (other than a
         director whose initial assumption of office is in connection with an
         actual or threatened election contest, including but not limited to a
         consent solicitation, relating to the election of directors of the
         Corporation) whose appointment or election by the Board or nomination
         for election by the Corporation's stockholders was approved by a vote
         of at least two-thirds (2/3) of the directors then still in office who
         either were directors at the beginning of the two year period or whose
         appointment, election or nomination for election was previously so
         approved, or

                  (3) There is consummated a merger or consolidation of the
         Corporation or a Subsidiary thereof, with any other corporation, other
         than a merger or consolidation which would result in the holders of the
         voting securities of the Corporation outstanding immediately prior
         thereto holding securities which represent immediately after such
         merger or consolidation at least 50% of the combined voting power of
         the voting securities of the entity surviving the merger or
         consolidation (or the Parent of such surviving entity), or the
         shareholders of the Corporation approve a plan of complete liquidation
         of the Corporation, or there is consummated the sale or other
         disposition of all or substantially all of the Corporation's assets.

         9. SUBROGATION. In the event of any payment under this Agreement, the
Corporation shall be subrogated to the extent thereof to all rights to
indemnification or reimbursement against any insurer or other entity or person
vested in the Indemnitee, who shall execute all instruments and take all other
actions as shall be reasonably necessary for the Corporation to enforce such
rights.

         10. ENFORCEMENT.

                  (a) The Corporation expressly confirms and agrees that it has
         entered into this Agreement and assumed the obligations imposed on the
         Corporation hereby in order to induce Indemnitee to continue as
         director or an officer of the Corporation, or both, and

                                       6
<PAGE>

         acknowledges that Indemnitee is relying upon this Agreement in
         continuing in such capacity.

                  (b) In the event Indemnitee is required to bring any action to
         enforce rights or to collect moneys due under this Agreement and is
         successful in such action, Corporation shall reimburse Indemnitee for
         all of Indemnitee's reasonable fees and expenses in bringing and
         pursuing such action.

         11. SEPARABILITY. Each of the provisions of this Agreement is a
separate and distinct agreement and independent of the others, so that if any
provision hereof shall be held to be invalid or unenforceable for any reason,
such invalidity or unenforceability shall not affect the validity or
enforceability of the other provisions hereof.

         12. GOVERNING LAW; BINDING EFFECT; AMENDMENT AND TERMINATION.

                  (a) This Agreement shall be interpreted and enforced in
         accordance with the laws of the State of Ohio.

                  (b) This Agreement shall be binding upon Indemnitee and upon
         the Corporation, its successors and assigns, and shall inure to the
         benefit of Indemnitee, his heirs, personal representatives and assigns
         and to the benefit of the Corporation, its successors and assigns.

                  (c) No amendment, modification, termination or cancellation of
         this Agreement shall be effective unless in writing signed by both
         parties hereto.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.

                                            RTI INTERNATIONAL METALS, INC.

                                            By:
                                               --------------------------------
                                               [name of authorized officer]
                                               [title]

                                            By:
                                               --------------------------------
                                               [name], Indemnitee

Dated:  Effective                 , 20
                  ----------------    ---

                                       7

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