Document:

exv10w2

 

Exhibit 10.2

TRW AUTOMOTIVE HOLDINGS CORP.

2003 STOCK INCENTIVE PLAN

EXECUTIVE OFFICER

NON-QUALIFIED STOCK OPTION AGREEMENT

     THIS AGREEMENT, is made effective as of [ ], 200[ ] (the “Date of
Grant”), between TRW Automotive Holdings Corp. (the “Company”) and [
](the “Participant”).

R E C I T A L S:

     WHEREAS, the Company has adopted the Plan (as defined below), the terms of which are hereby
incorporated by reference and made a part of this Agreement; and

     WHEREAS, the Compensation Committee of the Board of Directors of the Company has determined
that the Participant be granted the Options provided for herein pursuant to the Plan and the terms
set forth herein.

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties
agree as follows:

     1.      Definitions. Whenever the following terms are used in this Agreement, they shall
have the meanings set forth below. Capitalized terms not otherwise defined herein shall have the
same meanings as in the Plan.

     (a)      “Cause” means, “Cause” as defined in the Closing Date Employment Agreement or, if
not defined therein or if there is no such agreement, “Cause” means (i) such Participant’s
continued failure substantially to perform such Participant’s duties (other than as a result of
total or partial incapacity due to physical or mental illness) for a period of 10 days following
written notice by the Company or any of its Subsidiaries or Affiliates to the Participant of such
failure, (ii) dishonesty in the performance of the Participant’s duties, (iii) such Participant’s
conviction of, or plea of nolo contendere to, a crime constituting (A) a felony under the laws of
the United States or any state thereof or (B) a misdemeanor involving moral turpitude, (iv) such
Participant’s willful malfeasance or willful misconduct in connection with such Participant’s
duties or any act or omission which is injurious to the financial condition or business reputation
of the Company or any of its Subsidiaries or Affiliates or (v) such Participant’s breach of any
non-competition, non-solicitation or confidentiality provisions to which the Participant is
subject.

     (b)      “Closing Date” means February 28, 2003.

     (c)      “Closing Date Employment Agreement” means a written employment agreement between
the Company or any of its Subsidiaries and the Participant which is or was entered into as of or
after the Closing Date (as the same may be amended, modified or supplemented in accordance with the
terms thereof).

 

 

     (d)      “Disability” means, “disability” as defined in the Closing Date Employment
Agreement or, if not defined therein or if there shall be no such agreement, “disability” of the
Participant shall have the meaning ascribed to such term in the Company’s long-term disability plan
or policy, as in effect from time to time.

     (e)      “Expiration Date” means the eighth anniversary of the Date of Grant.

     (f)      “Option” means the option granted herewith.

     (g)      “Plan” means the TRW Automotive Holdings Corp. 2003 Stock Incentive Plan, as the
same may be amended, supplemented or modified from time to time.

     (h)      “Retirement” means satisfaction of the requirements for early or normal retirement
under a defined benefit pension plan maintained by the Company or one or more members of the
Company’s controlled group of corporations (as defined by Section 1563 of the Internal Revenue
Code) and receipt of pension benefits in accordance with such requirements as soon as
administratively practicable following the last date of active employment with the Company or its
controlled group of corporations.

     (i)      “Vested Portion” means, at any time, the portion of an Option which has become
vested, as described in Section 3 of this Agreement.

     2.      Grant of Options. The Company hereby grants to the Participant the right and
option to purchase, on the terms and conditions hereinafter set forth, [ ] Shares,
subject to adjustment as set forth in the Plan. The purchase price of the Shares subject to the
Option (the “Option Price”) shall be $[ ], which is the Fair Market Value of the
Shares on the Date of Grant. The Option is intended to be a non-qualified stock option, and is not
intended to be treated as an option that complies with Section 422 of the Internal Revenue Code of
1986, as amended.

     3.      Vesting of the Options.

     (a)      In General. Subject to Sections 3(b) and 3(c), the Option shall vest and become
exercisable with respect to one-third of the Shares subject to the Option on the first anniversary
of the Date of Grant and shall vest and become exercisable with respect to an additional one-third
of the Shares subject to the Option on each subsequent anniversary of the Date of Grant, until such
Shares subject to the Option are 100% vested.

     (b)      Change of Control. Notwithstanding the foregoing, upon a Change of Control, the
unvested portion of the Option, to the extent not previously cancelled or forfeited, shall
immediately become vested and exercisable.

     (c)      Termination of Employment. If the Participant’s employment with the Company and
its Affiliates terminates for any reason, the Option, to the extent not then vested, shall be
immediately canceled by the Company without consideration; provided, however, that
if the Participant’s employment is terminated (i) due to the Participant’s death or Disability,
(ii) by the Company or its Affiliates without Cause or (iii) by the Participant for Good Reason,
the unvested portion of the Option shall become vested and exercisable with respect to the number

 

 

of Shares that otherwise would have become vested and exercisable on the next scheduled
vesting date following such termination. The Vested Portion of the Option shall remain exercisable
for the period set forth in Section 4(a) of this Agreement.

     4.      Exercise of Options.

     (a)      Period of Exercise. Subject to the provisions of the Plan and this Agreement, the
Participant may exercise all or any part of the Vested Portion of an Option at any time prior to
the Expiration Date. Notwithstanding the foregoing, if the Participant’s employment terminates
prior to the Expiration Date, the Vested Portion of an Option shall remain exercisable for the
period set forth below:

     (i)      Death or Disability. If the Participant’s employment with the Company and
its Affiliates terminates due to the Participant’s death or Disability, the Participant (or,
in the case of death, the Participant’s estate or those designated by will or the laws of
descent and distribution) may exercise the Vested Portion of an Option for a period ending on
the earlier of (A) two years following the date of death and (B) the Expiration Date;

     (ii)      Termination other than for Cause. If the Participant’s employment with the
Company and its Affiliates is terminated for any reason other than by the Company or its
Affiliates for Cause or due to the Participant’s death, Disability or Retirement, the
Participant may exercise the Vested Portion of an Option for a period ending on the earlier
of (A) 90 days following the date of such termination and (B) the Expiration Date;

     (iii)      Termination for Retirement. If the Participant’s employment with the
Company terminates due to Retirement, the Vested Portion of an Option shall remain
exercisable until the Expiration Date; and

     (iv)      Termination for by the Company for Cause. If the Participant’s employment
with the Company and its Affiliates is terminated by the Company for Cause, the Vested
Portion of an Option shall terminate in full and cease to be exercisable.

     (b)      Method of Exercise.

     (i)      Subject to Section 4(a) of this Agreement, the Vested Portion of an Option may be
exercised by delivering to the Company at its principal office written notice of intent to so
exercise; provided that the Option may be exercised with respect to whole Shares
only. Such notice shall specify the number of Shares for which the Option is being exercised
and shall be accompanied by payment in full of the aggregate Option Price. Payment of the
aggregate Option Price may be made (A) in cash, or its equivalent, (B) to the extent
permitted by the Committee, by transferring Shares having a Fair Market Value equal to the
aggregate Option Price for the Shares being purchased to the Company and satisfying such
other requirements as may be imposed by the Committee; provided that such Shares have
been held by the Participant for no less than six months (or such other period as established
from time to time by the Committee or generally accepted accounting principles), (C) if there
is a public market for the Shares at such time, subject to such rules

 

 

as may be established by the Committee, through delivery of irrevocable instructions to
a broker to sell the Shares otherwise deliverable upon the exercise of the Option and to
deliver promptly to the Company an amount equal to the aggregate Option Price, or (D) such
other method as approved by the Committee. No Participant shall have any rights to dividends
or other rights of a stockholder with respect to the Shares subject to an Option until the
Participant has given written notice of exercise of the Option, paid in full for such Shares
and, if applicable, has satisfied any other conditions imposed by the Committee pursuant to
the Plan.

     (ii)      Upon the Company’s determination that an Option has been validly exercised as to
any of the Shares, the Company shall issue certificates in the Participant’s name for such
Shares. However, the Company shall not be liable to the Participant for damages relating to
any delays in issuing the certificates to the Participant, any loss by the Participant of the
certificates, or any mistakes or errors in the issuance of the certificates or in the
certificates themselves.

     (iii)      In the event of the Participant’s death, the Vested Portion of an Option shall
remain vested and exercisable by the Participant’s executor or administrator, or the person
or persons to whom the Participant’s rights under this Agreement shall pass by will or by the
laws of descent and distribution as the case may be, to the extent set forth in Section 4(a)
of this Agreement. Any heir or legatee of the Participant shall take rights herein granted
subject to the terms and conditions hereof.

     5.      No Right to Continued Employment. Neither the Plan nor this Agreement shall be
construed as giving the Participant the right to be retained in the employ of, or in any consulting
relationship to, the Company or any Affiliate. Further, the Company or its Affiliate may at any
time dismiss the Participant or discontinue any consulting relationship, free from any liability or
any claim under the Plan or this Agreement, except as otherwise expressly provided herein.

     6.      Transferability. Unless otherwise determined by the Committee, an Option may not
be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the
Participant otherwise than by will or by the laws of descent and distribution, and any such
purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void
and unenforceable against the Company or any Affiliate; provided that the designation of a
beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or
encumbrance. During the Participant’s lifetime, an Option is exercisable only by the Participant.

     7.      Withholding. The Participant may be required to pay to the Company or its
Affiliate and the Company or its Affiliate shall have the right and is hereby authorized to
withhold from any payment due or transfer made under the Option or under the Plan or from any
compensation or other amount owing to a Participant the amount (in cash, Shares, other securities,
other Awards or other property) of any applicable withholding taxes in respect of the Option, its
exercise, or any payment or transfer under the Option or under the Plan and to take

 

 

such action as may be necessary in the option of the Company to satisfy all obligations for
the payment of such taxes.

     8.      Notices. Any notice under this Agreement shall be addressed to the Company in care
of its General Counsel at the principal executive office of the Company and to the Participant at
the address appearing in the personnel records of the Company for the Participant or to either
party at such other address as either party hereto may hereafter designate in writing to the other.
Any such notice shall be deemed effective upon receipt thereof by the addressee.

     9.      Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York, without regard to conflicts of laws.

     10.      Options Subject to Plan. By entering into this Agreement the Participant agrees
and acknowledges that the Participant has received and read a copy of the Plan. The Options and
the Shares received upon exercise of the Options are subject to the Plan. The terms and provisions
of the Plan as it may be amended from time to time are hereby incorporated by reference. In the
event of a conflict between any term or provision contained herein and a term or provision of the
Plan, the applicable terms and provisions of the Plan will govern and prevail.

     11.      Counterparts. This Agreement may be executed in any number of counterparts, each
of which when so executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Any counterpart or other signature hereupon delivered by
facsimile shall be deemed for all purposes as constituting good and valid execution and delivery of
this Agreement by such party.

     IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto.

	 	 	 	 	 
	 	 	TRW AUTOMOTIVE HOLDINGS CORP.
	 
	 	 	 	 
	

	 	By
	 	_______________________________
	

	 	 	 	Its _____________________________
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	_____________________________________

Participant:exv10w3

 

Exhibit 10.3

TRW AUTOMOTIVE HOLDINGS CORP.

2003 STOCK INCENTIVE PLAN

CHIEF EXECUTIVE OFFICER

RESTRICTED STOCK UNIT AGREEMENT

     THIS AGREEMENT, is made effective as of ___,2005 (the “Grant Date”), between TRW
Automotive Holdings Corp. (the “Company”) and ___(the “Participant”).

R E C I T A L S:

     WHEREAS, the Company has adopted the Plan (as defined below), the terms of which are hereby
incorporated by reference and made a part of this Agreement; and

     WHEREAS, the Compensation Committee of the Board of Directors of the Company (the “Committee”)
has determined that the Participant be granted the Restricted Stock Units provided for herein
pursuant to the Plan and the terms set forth herein.

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties
agree as follows:

     1.      Definitions. Whenever the following terms are used in this Agreement, they shall
have the meanings set forth below. Capitalized terms not otherwise defined herein shall have the
same meanings as in the Plan.

     (a)      “Cause” means “Cause” as defined in a Closing Date Employment Agreement.

     (b)      “Closing Date” means February 28, 2003.

     (c)      “Closing Date Employment Agreement” means a written employment agreement between
the Company or any of its Subsidiaries and the Participant which is or was entered into as of or
after the Closing Date (as the same may be amended, modified or supplemented in accordance with the
terms thereof).

     (d)      “Disability” means, “disability” as defined in the Closing Date Employment
Agreement or, if not defined therein or if there shall be no such agreement, “disability” of the
Participant shall have the meaning ascribed to such term in the Company’s long-term disability plan
or policy, as in effect from time to time.

     (e)      “Good Reason” means “Good Reason” as defined in a Closing Date Employment
Agreement.

     (f)      “Plan” means the TRW Automotive Holdings Corp. 2003 Stock Incentive Plan, as the
same may be amended, supplemented or modified from time to time.

 

 

     (g)      “Restricted Stock Unit” means the unfunded, unsecured right of the Participant to
receive a share of the Company’s common stock, par value $0.01 per share (the “Shares”).

     2.      Grant of Restricted Stock Units; Dividends. The Company hereby grants to the
Participant, subject to the terms and conditions of this Agreement and the Plan,
___(___) Restricted Stock Units. The Participant shall not possess any voting
rights in Shares in respect of the Restricted Stock Units until such Restricted Stock Units have
been distributed to the Participant in the form of Shares. In addition, if dividends are declared
and paid by the Company during the period in which the Restricted Stock Units are outstanding (the
“Dividends”), then on each date on which Shares are delivered to the Participant in respect of the
Restricted Stock Units pursuant to Sections 3(a), 3(b) and 3(d), Participant shall also be paid an
amount in cash (in the case of a cash dividend declared and paid by the Company) or distributed a
number of Shares (in the case of a stock dividend declared and paid by the Company), in each case
equal to the aggregate dividends that would have been paid to the Participant if the Restricted
Stock Units with respect to which the Shares are being delivered had in fact been Shares during the
period in which the dividends were paid.

	3.  	     Delivery of Shares Underlying the Restricted Stock
Units.

     (a)      In General. Subject to Sections 3(b), 3(c) and 3(d), commencing on the first
anniversary of the Grant Date and continuing on each of the second and third anniversary of the
Grant Date, the Company shall issue or cause there to be transferred to the Participant a number of
Shares equal to one third of the aggregate number of Restricted Stock Units granted to the
Participant under this Agreement.

     (b)      Change of Control. Notwithstanding the foregoing, upon a Change of Control, the
Company shall issue or cause there to be transferred, to the extent not previously issued,
transferred, cancelled or forfeited in accordance with this Section 3, to the Participant a number
of Shares equal to the aggregate number of Restricted Stock Units granted to the Participant under
this Agreement.

     (c)      Cancellation of Restricted Stock Units. Upon the issuance or transfer of Shares
in accordance with this Section 3, a number of Restricted Stock Units equal to the number of Shares
issued or transferred to the Participant shall be cancelled.

     (d)      Termination of Employment. If the Participant ceases to be employed by the
Company or one of the Company’s subsidiaries for any reason, the Restricted Stock Units, and any
corresponding Dividends, shall be immediately and automatically canceled by the Company without
any payment or other consideration and without notice or any other action by the Company;
provided, however, that if (i) the Participant’s employment is terminated due to
death or Disability , the Company shall issue, or cause there to be transferred, Shares, and the
corresponding Dividends, that are scheduled to be transferred on the next anniversary of the Grant
Date following such termination pursuant to Section 3(a) as if the Participant remained employed
through such date, but shall not issue, or cause there to be transferred, Shares on any Grant Date
thereafter or (ii) the Participant is party to a Closing Date Employment Agreement and
Participant’s employment is terminated by the Company or one of the Company’s

 

 

subsidiaries without Cause or by the Participant for Good Reason, the Company shall continue
to issue, or cause there to be transferred, Shares, and the corresponding Dividends, according to
the schedule set forth in Section 3(a).

     (e)      Registration or Qualification. Notwithstanding any other provision of the Plan or
this Agreement to the contrary, absent an available exemption to registration or qualification, a
Share to which a Restricted Stock Unit relates may not be delivered prior to the completion of any
registration or qualification of the Restricted Stock Units or the Shares to which they relate
under applicable state and federal securities or other laws, or under any ruling or regulation of
any governmental body or national securities exchange that the Committee shall in its sole
reasonable discretion determine to be necessary or advisable.

     (f)      Certificates. As soon as practicable following the delivery date of the Shares
subject to the Restricted Stock Units, the Company shall cause such Shares to be evidenced by
certificates in the Participant’s name. However, the Company shall not be liable to the
Participant for damages relating to any delays in so causing such Shares to be evidenced by
certificates in the Participant’s name, any loss by the Participant of the certificates, or any
mistakes or errors in the issuance of the certificates or in the certificates themselves.

     4.      Legend on Certificates. The certificates representing the Shares issued or
transferred to the Participant in respect of the Restricted Stock Units shall be subject to such
stop transfer orders and other restrictions as the Committee may deem reasonably advisable under
the Plan or the rules, regulations, and other requirements of the Securities and Exchange
Commission, any stock exchange upon which such Shares are listed, any applicable federal or state
laws or the Company’s Certificate of Incorporation and Bylaws, and the Committee may cause a legend
or legends to be put on any such certificates to make appropriate reference to such restrictions.

     5.      Transferability. Unless otherwise determined by the Committee, a Restricted Stock
Unit may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered
by the Participant otherwise than by will or by the laws of descent and distribution, and any such
purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void
and unenforceable against the Company or any Affiliate; provided that the designation of a
beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or
encumbrance.

     6.      Withholding. The Company or its Affiliate shall have the right to withhold from
any payment due or transfer made with respect to the Restricted Stock Unit, any applicable
withholding taxes in respect of the Restricted Stock Unit or the Shares to which they relate or any
payment or transfer with respect to the Restricted Stock Unit or under the Plan and to take such
action as may be necessary in the option of the Company to satisfy all obligations for the payment
of such taxes.

     7.      Securities Laws. Upon the acquisition of any Shares delivered in respect of the
Restricted Stock Units pursuant to Sections 3(a), 3(b) and 3(d), the Participant will make or enter
into such written representations, warranties and agreements as the Committee may reasonably
request in order to comply with applicable securities laws or with this Agreement.

 

 

     8.      Notices. Any notice under this Agreement shall be addressed to the Company in care
of its General Counsel at the principal executive office of the Company and to the Participant at
the address appearing in the personnel records of the Company for the Participant or to either
party at such other address as either party hereto may hereafter designate in writing to the other.
Any such notice shall be deemed effective upon receipt thereof by the addressee.

     9.      Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York, without regard to conflicts of laws.

     10.      Restricted Stock Units Subject to the Plan. By entering into this Agreement the
Participant agrees and acknowledges that the Participant has received and read a copy of the Plan.
The Restricted Stock Units and any Shares delivered in respect thereto are subject to the Plan.
The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated
by reference. In the event of a conflict between any term or provision contained herein and a term
or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail

     11.      Counterparts. This Agreement may be executed in any number of counterparts, each
of which when so executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Any counterpart or other signature hereupon delivered by
facsimile shall be deemed for all purposes as constituting good and valid execution and delivery of
this Agreement by such party.

     IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto as of
the date first above written.

	 	 	 	 	 
	 	 	TRW AUTOMOTIVE HOLDINGS CORP.
	 
	 	 	 	 
	

	 	By
	 	_______________________________
	

	 	 	 	Its _____________________________
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	_____________________________________

Participant:

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