Document:

EXHIBIT 10.17

 

 

QUANEX CORPORATION

 

EXECUTIVE [STOCK-][CASH-]SETTLED

STOCK APPRECIATION RIGHT AGREEMENT

 

<<Full
Name>>

Grantee

 

	
  Date of Grant:

  	
   

  	
  <<                           >>

  
	
   

  	
   

  	
   

  
	
  Total Number of Shares Relating to the SARs Granted:

  	
   

  	
  <<                           >>

  
	
   

  	
   

  	
   

  
	
  Grant
  Price per Share

  (the Grant Price
  per Share is equal to the last per share sales price of the common stock of
  Quanex Corporation for the Date of Grant and, if the stock was not traded on
  the Date of Grant, the first trading day immediately preceding the Date of
  Grant, as reported in the New York Stock Exchange Composite Transactions)

  	
   

  	
  <<$                        >>

  
	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
  <<                        >>

  
	
   

  	
   

  	
   

  
	
  General Vesting Schedule:

  	
   

  	
  [100% exercisable on the [first][second][third]
  anniversary of the Date of Grant. 0% exercisable prior to the
  [first][second][third] anniversary of the Date of Grant.]

   

  [3 years, with vesting in
  installments of 33 1/3% on the anniversary date of the Date of Grant in each
  of the years               ,
                  
  and               .]

  

 

The following terms and
conditions are applicable to a stock appreciation right (a “SAR”) granted pursuant to the Quanex Corporation 2006
Omnibus Incentive Plan (the “Plan”)
and are incorporated as part of the Stock Appreciation Right Agreement setting
forth the terms of such SAR (the “Agreement”).

 

1.                                      GRANT OF STOCK APPRECIATION RIGHT. The Compensation Committee of the Board of
Directors of Quanex Corporation, a Delaware corporation (the “Company”), pursuant to the Quanex
Corporation 2006 Omnibus Incentive Plan (the “Plan”),
hereby grants to you, the above-named Grantee, effective as of the Date of
Grant set forth above, a stock appreciation right (“SAR”)
that entitles you to receive, upon exercise hereof, [the number of shares of
the Company’s common stock][cash payment(s) from the
Company in an amount] determined by multiplying the excess of the Fair
Market Value of a share of the Company’s common stock on the date of exercise
over the Grant Price per share set forth above by the number of shares of the
Company’s common stock with respect to which the SAR is exercised[ and
dividing the resulting product by the Fair Market Value of a share of 

 

Executive

[Cliff Vesting]—[Graded
Vesting]

[Stock Settled]—[Cash Settled]

 

 

the Company’s common stock on the date of exercise]. The SAR is exercisable in installments in
accordance with the Vesting Schedule set forth above by giving written notice
to the Company as specified in this Agreement. To the extent not exercised,
installments shall be cumulative and may be exercised in whole or in part until
the SAR terminates. The SAR may not be exercised after the Expiration Date, or
the applicable date following your termination of employment specified in this
Agreement.

 

2.                                      TERMINATION OF EMPLOYMENT/CHANGE
IN CONTROL. The following
provisions will apply if your employment with the Company and all Affiliates of
the Company (collectively, the “Company
Group”) terminates or a change in control of the Company as defined
in the Change in Control Agreement between you and the Company (“Change in Control”) occurs before the Expiration Date set
forth in this Agreement:

 

2.1           Termination
Generally. If your employment with the Company Group terminates before the
Expiration Date for any reason other than one of the reasons described in
Sections 2.2 through 2.4 below, all of your rights in the SAR shall
terminate and become null and void on the earlier of (i) the Expiration
Date or (ii) 90 days after the date your employment with the Company Group
terminates. Except as specified in Sections 2.2 through 2.4 below, if your
employment with the Company Group terminates for any reason, the SAR shall not
continue to vest after such termination of employment.

 

2.2           Potential or Actual
Change in Control.

 

(i)            Termination Without Cause or for Good Reason in
Connection With a Potential Change in Control Before the Expiration Date. If
(a) the Company Group terminates your employment without Cause (as defined
in the Change in Control Agreement between you and the Company) on or before
the third anniversary of the date of Grant (“Third
Anniversary Date”) prior to a Change in Control (whether or not a
Change in Control ever occurs) and such termination is at the request or
direction of a person who has entered into an agreement with the Company the
consummation of which would constitute a Change in Control or is otherwise in
connection with or in anticipation of a Change in Control (whether or not a
Change in Control ever occurs) or (b) you terminate your employment with
the Company Group for Good Reason (as defined in the Change in Control
Agreement between you and the Company) on or before the Third Anniversary Date
prior to a Change in Control (whether or not a Change in Control ever occurs),
and such termination or the circumstance or event which constitutes Good Reason
occurs at the request or direction of a person who has entered into an
agreement with the Company the consummation of which would constitute a Change
in Control or is otherwise in connection with or in anticipation of a Change in
Control (whether or not a Change in Control ever occurs), then the SAR shall
become fully exercisable on the date of the termination of your employment
relationship.

 

(ii)           Employment Not Terminated Before a Change in Control on or
Before the Expiration Date. If a Change in Control occurs on or before the
Third Anniversary Date and your employment with the Company Group does not
terminate before the date the Change in Control occurs, then the SAR shall
become fully exercisable on the date the Change in Control occurs.

 

2.3           Retirement or
Disability. If your employment with the Company Group terminates due to your
Retirement or Disability, then your rights under the SAR that have not then
vested shall vest on the effective date of your Retirement or termination of
employment due to Disability. All of your rights in the SAR shall terminate and
become null and void on the earlier of the Expiration Date or three (3) years
after the date your employment with the Company Group terminates as a result of
Retirement or a

 

2

 

Disability. For purposes of this Section 2.3, the term “Retirement” means the voluntary
termination of your employment relationship with the Company Group on or after
the date on which (a) you are age 65 or (b) you are age 55 and have
five years of service with the Company Group.

 

2.4           Death. If your
employment with the Company Group terminates due to your death, then your
rights under the SAR that have not then vested shall vest on the date of your death.
All rights in the SAR shall terminate and become null and void on the earlier
of the Expiration Date or three (3) years after the date of your death. After your
death, your executors, administrators or any person or persons to whom your SAR
may be transferred by will or by the laws of descent and distribution, shall
have the right, at any time prior to the termination of the SAR to exercise the
SAR.]

 

3.                                      EXERCISE. Subject to the terms and provisions of the
Plan and this Agreement, the SAR may be exercised in whole or in part from time
to time by the delivery of timely written notice personally delivered or sent
by first class mail or facsimile transmission to the attention of the General
Counsel or Chief Financial Officer of the Company stating (1) the date you
wish to exercise such SAR, (2) the number of shares of Stock with respect
to which the SAR is to be exercised and (3) the [address or account][address] to which [the shares of the Company’s common
stock][any payment], less any applicable
withholding, should be mailed[ or transmitted]. Notice under this
paragraph shall be addressed as follows: 
ATTN: General Counsel and/or Chief Financial Officer, Quanex
Corporation, 1900 West Loop South, Suite 1500, Houston, Texas 77027 or
713.439.1016 (if via facsimile transmission). The Company may provide a
delegate to receive such notice or alternate procedures for complying with the
exercise and notice requirements of this section. The exercise date shall be
the later of the date specified in such notice or the date such notice is
actually received by the Company or its delegate.

 

4.                                      TAX WITHHOLDING. To the extent that the receipt of the SAR
or this Agreement, the vesting of the SAR or the exercise of the SAR results in
income to you for federal, state or local income, employment or other tax
purposes with respect to which the Company Group has a withholding obligation, you
shall deliver to the Company at the time of such receipt, vesting or exercise,
as the case may be, such amount of money as the Company Group may require to
meet its obligation under applicable tax laws or regulations, and, if you fail
to do so, the Company Group is authorized to withhold from the [shares][payment] subject to the SAR or from any cash or stock
remuneration then or thereafter payable to you any tax required to be withheld
by reason of such taxable income, sufficient to satisfy the withholding
obligation based on the last per share sales price of the common stock of the
Company for the trading day immediately preceding the date that the withholding
obligation arises, as reported in the New York Stock Exchange Composite
Transactions.

 

5.                                      NONTRANSFERABILITY. Except as specified in this Agreement, the SAR
and the Agreement are not transferable or assignable by you other than by will
or the laws of descent and distribution, and shall be exercisable during your
lifetime only by you. You may transfer this SAR to a member or members of your
immediate family, a trust under which your immediate family members are the
only beneficiaries and a partnership of which your immediate family members are
the only partners. For this purpose, “immediate family” means your spouse,
children, stepchildren, grandchildren, parents, grandparents, siblings
(including half brothers and sisters), and individuals who are family members
by adoption. Notwithstanding any other provision of this Agreement, such a
transferee of the SAR granted under this Agreement may exercise the SAR during
your lifetime. None of the Company, its employees or directors makes any
representations or guarantees concerning the tax consequences associated with
the inclusion of this provision in this Agreement, your transfer of the SAR
granted under this Agreement or the transferee’s exercise of the SAR. It is
your sole responsibility to seek advice from

 

3

 

your own tax advisors concerning those tax consequences. You are
entitled to rely upon only the tax advice of his own tax advisors.

 

6.                                      CAPITAL ADJUSTMENTS AND
REORGANIZATIONS. The
existence of the SAR shall not affect in any way the right or power of the
Company or any company the stock of which is issued pursuant to this Agreement
to make or authorize any adjustment, recapitalization, reorganization or other
change in its capital structure or its business, engage in any merger or
consolidation, issue any debt or equity securities, dissolve or liquidate, or
sell, lease, exchange or otherwise dispose of all or any part of its assets or
business, or engage in any other corporate act or proceeding.

 

7.                                      EMPLOYMENT RELATIONSHIP. For purposes of this Agreement, you shall be
considered to be in the employment of the Company Group as long as you have an
employment relationship with the Company Group. The Committee shall determine
any questions as to whether and when there has been a termination of such
employment relationship, and the cause of such termination, under the Plan and
the Committee’s determination shall be final and binding on all persons.

 

8.                                      NO RIGHTS AS A STOCKHOLDER. You shall not have any rights as a
stockholder of the Company with respect to any shares of common stock relating
to the SAR[ until the date of the issuance of the shares following exercise
of the SAR pursuant to this Agreement and the payment of any required
withholding].

 

9.                                      NOT AN EMPLOYMENT AGREEMENT. This Agreement is not an employment
agreement, and no provision of this Agreement shall be construed or interpreted
to create an employment relationship between you and the Company or any of its
Affiliates or guarantee the right to remain employed by the Company or any of
its Affiliates for any specified term.

 

10.                               [SECURITIES ACT LEGEND. If you are an officer or affiliate of the
Company under the Securities Act of 1933, you consent to the placing on any
certificate for the Shares of an appropriate legend restricting resale or other
transfer of the Shares except in accordance with such Act and all applicable
rules thereunder.]

 

11.                               LIMIT OF LIABILITY. Under no circumstances will the Company
Group be liable for any indirect, incidental, consequential or special damages
(including lost profits) of any form incurred by any person, whether or not
foreseeable and regardless of the form of the act in which such a claim may be
brought, with respect to the Plan.

 

12.                               MISCELLANEOUS. This Agreement and the SAR are awarded
pursuant to and are subject to all of the provisions of the Plan, which are
incorporated by reference herein, including all amendments to the Plan, if any.
If there is a conflict between this Agreement and the Plan provisions, the Plan
provisions will control. Capitalized terms that are not defined herein shall
have the meanings ascribed to such terms in the Plan.

 

By
your acceptance of the SAR, you agree that the SAR is granted under, governed
by and subject to the terms of the Plan and this Agreement.

 

 

	
   

  	
  QUANEX CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Raymond
  Jean – Chief Executive Officer

  

 

4EXHIBIT 10.18

 

 

QUANEX CORPORATION

 

DIRECTOR [STOCK-][CASH-]SETTLED

STOCK APPRECIATION RIGHT AGREEMENT

 

<<Full
Name>>

Grantee

 

	
  Date of Grant:

  	
   

  	
  <<                         >>

  
	
   

  	
   

  	
   

  
	
  Total Number of Shares Relating to the SARs Granted:

  	
   

  	
  <<                         >>

  
	
   

  	
   

  	
   

  
	
  Grant
  Price per Share

  (the Grant Price
  per Share is equal to the last per share sales price of the common stock of
  Quanex Corporation for the Date of Grant and, if the stock was not traded on
  the Date of Grant, the first trading day immediately preceding the Date of
  Grant, as reported in the New York Stock Exchange Composite Transactions)

  	
   

  	
  <<$                       >>

  
	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
  <<                          >>

  
	
   

  	
   

  	
   

  
	
  General Vesting Schedule:

  	
   

  	
  [100%
  Exercisable on the Date of Grant]

   

  [3 years, with vesting in installments of 33
  1/3% on the anniversary date of the Date of Grant in each of the years               ,
                  
  and             .]

  

  [100% exercisable on
  [first][second][third] anniversary of the Date of Grant. 0% exercisable prior
  to the [first][second][third] anniversary of the Date of Grant.]

  

 

These terms and
conditions are applicable to a stock appreciation right (a “SAR”) granted pursuant to the Quanex Corporation 2006
Omnibus Incentive Plan (the “Plan”)
and are incorporated as part of the Director Stock Appreciation Right Agreement
setting forth the terms of such SAR (the “Agreement”).

 

1.                                      GRANT OF STOCK APPRECIATION RIGHT. Quanex Corporation, a Delaware corporation
(the “Company”), pursuant to the Quanex
Corporation 2006 Omnibus Incentive Plan (the “Plan”),
hereby grants to you, the above-named Grantee, effective as of the Date of
Grant set forth above, a stock appreciation right (“SAR”)
that entitles you to receive, upon exercise hereof, [the number of shares of
the Company’s common stock][cash payment(s) from the
Company in an amount] determined by multiplying the excess of the Fair
Market Value of a share of the Company’s common stock on the date

 

Director

[Immediate Vesting]—[Cliff
Vesting]—[Graded Vesting]

[Stock Settled]—[Cash Settled

{Special Directions}

 

 

of exercise over the Grant Price per share set forth above by the
number of shares of the Company’s common stock with respect to which the SAR is
exercised[ and dividing the resulting product by the Fair Market Value of a
share of the Company’s common stock on the date of exercise]. The SAR is
exercisable in installments in accordance with the Vesting Schedule set forth
above by giving written notice to the Company as specified in this Agreement. To
the extent not exercised, installments shall be cumulative and may be
exercised in whole or in part until the SAR terminates. The SAR may not be
exercised after the Expiration Date, or the applicable date following your termination of employment specified in this Agreement.

 

2.                                      [CEASES TO BE A
MEMBER/SECTION 409A CHANGE IN CONTROL. The following provisions will apply if you cease to
be a member of the Board of Directors of the Company (the “Board”) or a “change
in the ownership or effective control of the corporation” or a “change in the
ownership of a substantial portion of the assets of the corporation” (within
the meaning of section 409A of the Internal Revenue Code of 1986, as amended)
with respect to the Company (“Section 409A Change in Control”) occurs before the
Expiration Date set forth in this Agreement:

 

2.1           Ceases
to be a Member Generally. If you cease to be a member of the Board before the
Expiration Date for any reason other than one of the reasons described in
Sections 2.2 through 2.4 below, all of your rights in the SAR shall
terminate and become null and void on the earlier of the Expiration Date or 90
days after the date you cease to be a member of the Board. Except as specified
in Sections 2.2 through 2.4 below, if you cease to be a member of the Board for
any reason, the SAR shall not continue to vest after such termination of
employment.

 

2.2           Section 409A Change in Control. If
a Section 409A Change in Control occurs on or before the third anniversary of
the date of Grant (“Third Anniversary Date”), then the SAR shall become fully
exercisable on the date of the Section 409A Change in Control.

 

2.3           Retirement or Disability. If you
cease to be a member of the Board due to your Retirement or Disability, then
your rights under the SAR that have not then vested shall vest on the effective
date of your Retirement or your ceasing to be a member of the Board due to
Disability. All of your rights in the SAR shall terminate and become null and
void on the earlier of the Expiration Date or three (3) years after the date
you cease to be a member of the Board as a result of Retirement or a Disability.
For purposes of this Section 2.3, the term “Retirement” means your voluntary cessation
of your membership as a director with the Company on or after the later of (a)
the date on which you attain age 70 or (b) the date your term as a director
expires if you attain age 70 during such term; provided, that that
with respect to any person who was a director on November 1, 1996, the
reference to “70 years” shall be changed to “72 years.”

 

2.4           Death.
If you cease to be a member of the Board due to your death, then your rights
under the SAR that have not then vested shall vest on the date of your death. All
rights in the SAR shall terminate and become null and void on the earlier of
the Expiration Date or three years after the date of your death. After your
death, your executors, administrators or any person or persons to whom your SAR
may be transferred by will or by the laws of descent and distribution, shall
have the right, at any time prior to the termination of the SAR to exercise the
SAR.]

 

[CEASES
TO BE A MEMBER. The following provisions will apply if you cease to
be a member of the Board of Directors of the Company (the “Board”) before the first
business day of the calendar year containing the Expiration Date:

 

2

 

2.1           Ceases to
be a Member Generally. If you cease to be a member of the Board
before the Expiration Date for any reason other than one of the reasons
described in Sections 2.2 and 2.3 below, all of your rights in the SAR
shall terminate and become null and void on the earlier of the Expiration Date
or 90 days after the date you cease to be a member of the Board.

 

2.2           Retirement
or Disability. If you cease to be a member of the Board due to your
Retirement or Disability before the Expiration Date, then all of your rights in
the SAR shall terminate and become null and void on the earlier of the
Expiration Date or three (3) years after the date you cease to be a member of
the Board as a result of Retirement or a Disability. For purposes of this
Section, the term “Retirement”
means your voluntary cessation of your membership as a director with the
Company on or after the later of (a) the date on which you attain age 70 or (b)
the date your term as a director expires if you attain age 70 during such term;
provided, that that with respect to any person who was a director
on November 1, 1996, the reference to “70 years” shall be changed to “72
years.”

 

2.3           Death.
If you cease to be a member of the Board due to your death before the
Expiration Date, then all your rights under the SAR shall terminate and become
null and void on the earlier of the Expiration Date or three years after the
date of your death. After your death, your executors, administrators or any
person or persons to whom your SAR may be transferred by will or by the laws of
descent and distribution, shall have the right, at any time prior to the
termination of the SAR to exercise the SAR.]

 

3.                                      EXERCISE. Subject to the terms and provisions of the
Plan and this Agreement, the SAR may be exercised in whole or in part from time
to time by the delivery of timely written notice personally delivered or sent
by first class mail or facsimile transmission to the attention of the General
Counsel or Chief Financial Officer of the Company stating (1) the date you
wish to exercise such SAR, (2) the number of shares of Stock with respect
to which the SAR is to be exercised and (3) the [address or account][address] to which [the shares of the Company’s common
stock][any payment] should be mailed[ or
transmitted]. Notice under this paragraph shall be addressed as
follows:  ATTN: General Counsel and/or
Chief Financial Officer, Quanex Corporation, 1900 West Loop South, Suite 1500,
Houston, Texas 77027 or 713.439.1016 (if via facsimile transmission). The
Company may provide a delegate to receive such notice or alternate procedures
for complying with the exercise and notice requirements of this section. The
exercise date shall be the later of the date specified in such notice or the
date such notice is actually received by the Company or its delegate.

 

4.                                      NONTRANSFERABILITY. Except as specified in this Agreement, the SAR
and this Agreement are not transferable or assignable by you other than by will
or the laws of descent and distribution, and shall be exercisable during your
lifetime only by you. You may transfer this SAR to a member or members of your
immediate family, a trust under which your immediate family members are the
only beneficiaries and a partnership of which your immediate family members are
the only partners. For this purpose, “immediate family” means your spouse,
children, stepchildren, grandchildren, parents, grandparents, siblings
(including half brothers and sisters), and individuals who are family members
by adoption. Notwithstanding any other provision of this Agreement, such a
transferee of the SAR granted under this Agreement may exercise the SAR during
your lifetime. None of the Company, its employees or directors makes any
representations or guarantees concerning the tax consequences associated with
the inclusion of this provision in this Agreement, your transfer of the SAR
granted under this Agreement or the transferee’s exercise of the SAR. It is
your sole responsibility to seek advice from your own tax advisors concerning
those tax consequences. You are entitled to rely upon only the tax advice of
his own tax advisors.

 

3

 

5.                                      CAPITAL ADJUSTMENTS AND
REORGANIZATIONS. The
existence of the SAR shall not affect in any way the right or power of the
Company or any company the stock of which is issued pursuant to this Agreement
to make or authorize any adjustment, recapitalization, reorganization or other
change in its capital structure or its business, engage in any merger or
consolidation, issue any debt or equity securities, dissolve or liquidate, or
sell, lease, exchange or otherwise dispose of all or any part of its assets or
business, or engage in any other corporate act or proceeding.

 

6.                                      SERVICE OR EMPLOYMENT
RELATIONSHIP. For purposes
of this Agreement, you shall be considered to be in the service of the Company
Group as long as you have a service or employment relationship with the Company
Group. The Committee shall determine any questions as to whether and when there
has been a termination of such service relationship, and the cause of such
termination, under the Plan and the Committee’s determination shall be final
and binding on all persons.

 

7.                                      NO RIGHTS AS A STOCKHOLDER. You shall not have any rights as a
stockholder of the Company with respect to any shares of common stock relating
to the SAR[ until the date of the issuance of the shares following exercise
of the SAR pursuant to this Agreement].

 

8.                                      NOT A SERVICE OR EMPLOYMENT
AGREEMENT. This Agreement is
not a service or employment agreement, and no provision of this Agreement shall
be construed or interpreted to create a service or employment relationship
between you and the Company or any of its Affiliates or guarantee the right to
remain as a director of or employed by the Company or any of its Affiliates for
any specified term.

 

9.                                      [SECURITIES ACT LEGEND. If you are or become an officer or affiliate
of the Company under the Securities Act of 1933, you consent to the placing on
any certificate for the Shares of an appropriate legend restricting resale or
other transfer of the Shares except in accordance with such Act and all
applicable rules thereunder.]

 

10.                               LIMIT OF LIABILITY. Under no circumstances will the Company
Group be liable for any indirect, incidental, consequential or special damages
(including lost profits) of any form incurred by any person, whether or not
foreseeable and regardless of the form of the act in which such a claim may be
brought, with respect to the Plan.

 

11.                               MISCELLANEOUS. This Agreement and the SAR are awarded
pursuant to and are subject to all of the provisions of the Plan, which are
incorporated by reference herein, including all amendments to the Plan, if any.
If there is a conflict between this Agreement and the Plan provisions, the Plan
provisions will control. Capitalized terms that are not defined herein shall
have the meanings ascribed to such terms in the Plan.

 

By
your acceptance of the SAR, you agree that the SAR is granted under, governed
by and subject to the terms of the Plan and this Agreement.

 

 

	
   

  	
  QUANEX CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Raymond
  Jean – Chief Executive Officer

  

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]